2. What We Will Discuss Today
The Wellness Company
• Proven Track Record
• Debt-Free
• Strong Management
Exceptional Products That:
• People Use Every Day
• Are Safer for Your Home and Environment
• Are a Better Value Than Grocery Store Brands
Revenue Sharing at Melaleuca
• No New Money—Simply Switch Stores
• High Customer Reorder Rate
• No Risk
1
3. Melaleuca’s
Heritage
Our Mission:
To Enhance the Lives of Those We Touch
by Helping People Reach Their Goals SM
Since its beginning in 1985, CEO Frank L. VanderSloot’s
passion for helping the average family has been the driving
force behind Melaleuca’s mission.
2
4. Melaleuca:
TheWellness Company
®
What’s Most el
lness
Fin
an
cia
Important lW
lW
a
sic
el
Living a Getting Out
to You?
Phy
lne
Longer, of Debt and
Healthier, More Securing Your
ss
Vibrant Life Financial Future
Achieving Balance, Making Your
Happiness, and Home and the
Pe r s
Peace of Mind Environment
e ss
in Your Personal a Cleaner,
on
ln
and Family Life Safer Place
al
el
W
W
ll l
ta
e
ne
ss n
n me
e n vi r o
3
5. Melaleuca: A Different Kind of Company
®
TRADITIONAL BUSINESS MODEL CONSUMER DIRECT MARKETING —
MELALEUCA’S PARTNERSHIP MODEL
T TO THE CUST
EC OM
Manufacturers IR
Each entity
D
ER
Procter & Gamble
Colgate-Palmolive takes a
Johnson & Johnson portion of the Melaleuca
revenues
Manufactures
Retail Customer
Advertisers Distribution and
TV Ships Direct
Wal-Mart
Radio
Safeway
Print Media
Kroger
OR
W
AL
S
DO
F MO RR
UTH REFE
The customer is Customer The Result?
outside of the • HIGHER QUALITY PRODUCTS
partnership • SAVINGS AND BETTER VALUE
• REVENUE SHARING
4
6. $950,000,000
Melaleuca’s $900,000,000
Growth Record
$850,000,000
$800,000,000
$750,000,000
$700,000,000
• Since 1985 annual sales have grown to over $650,000,000
$948 million. $600,000,000
$550,000,000
• Melaleuca is debt–free with a 26-year proven track $500,000,000
record of success!
$450,000,000
• Each month over 800,000 households $400,000,000
shop with Melaleuca—a testament $350,000,000
to the quality and value of $300,000,000
Melaleuca’s products. $250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
’85 ’86 ’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10
5
7. Melaleuca’s
Success
Melaleuca is a recipient of
the esteemed Better Business
Bureau Torch Award, granted
only to select companies
that prove a long history of
exemplary business practices.
To see the numerous other
awards Melaleuca has
received over the years, go Melaleuca appeared on Inc. magazine’s
to MelaleucaAwards.com. list of fastest-growing companies for
five consecutive years and earned a place
in the prestigious Inc. 500 Hall of Fame.
6
8. The Revenue Sharing Concept
We refer customers to shop with Melaleuca.
• Customers shop direct by phone or online
at Melaleuca.com.
• Approximately 95% of customers who
shop this month will shop again next month.
• Each time they shop, the person who referred them
earns a commission.
• The result? We share in the revenue and earn
ongoing commissions creating reliable
residual income.
Melaleuca has paid over $2.8 billion in
referral commissions to families just like yours.
7
9. Simply
Switch Stores!
• No New Dollars Required
• Reduce Your Monthly Budget
Simply switch some of your shopping to Melaleuca,
where you’ll find better, safer products.
8
10. Welcome to a Simpler Way of Shopping—
Over 350 Exclusive Products You Use Every Day
®
9
11. ®
Safer for your home
EcoSense: The Safety You Want, the Cleaning Power You Need
SAFER SAFER SAFER
FOR YOUR FAMILY FOR YOUR HOME FOR THE EARTH
• o chlorine bleach
N • ffective, naturally
E • Super-concentrated
• o ammonia
N derived ingredients • o fillers
N
• o formaldehyde
N
• o abrasives
N
• o phosphates
N
• o safety caps required
N
• H-balanced (non-alkaline)
p
10
12. EPA-Approved to
Kill 99.9%
of Germs
with the Natural Power
of the Herb Thyme
Sol-U-Guard Botanical® Disinfectant
• ills household germs like staph, E. coli, and the H1N1 virus
K
• Kills germs on kitchen, bathroom and other surfaces
• o chlorine bleach, ammonia, harsh fumes, or harmful residue
N
• entle enough to use around children, pets, and food
G
• vailable only at Melaleuca
A
2x concentrated
to save you money
11
13. Concentrated Means Less Waste and More Savings
6X
CONCENTRATED
MelaPower® 6x
=
3 Bottles of 2X Ultra Tide®
96 loads 96 loads total
$16.99
PREFERRED CUSTOMER
VS $26.97*
COMPETITOR PRICE
* ompetitor product price from
C
Albertsons.com and Safeway.com,
Las Vegas, NV, June 8, 2011.
Prices may vary. Product names are
trademarks of their respective owners.
Compare and Save
= =
Clear Power® 3 Bottles of Windex® Tub Tile™ 3 Bottles of Tilex®
Makes 96 fl. oz. 96 fl. oz. total Makes 96 fl. oz. 96 fl. oz. total
$5.69 VS $14.36* $5.69 VS $14.97*
PREFERRED CUSTOMER COMPETITOR PRICE PREFERRED CUSTOMER COMPETITOR PRICE 12
14. Melaleuca Is the
Market Leader in Concentrated Products
We’ve saved:
• 145.9 million pounds of
plastic in our landfills
• 27 million gallons of
fuel for shipping
• 31.1 million pounds of
harmful gas emissions
Melaleuca has been green
since 1985, long before
being green was popular!
13
15. Want More Energy
and Better Health?
The Answer: Oligo ! ™
FIRST-IN-THE-WORLD DISCOVERY
Oligo Technology: Superior mineral absorption and
maximum antioxidant protection delivered Just Like Nature™
Just Like Nature™, Oligo prebinds
minerals to organic proteins and fibers to
mirror how they exist in fruits, vegetables,
and other whole foods.
If after 90 days you don’t
The Proven Result: feel a marked difference
No other mineral form is more in your health and energy,
we’ll refund your money
absorbable than Melaleuca’s Oligo.* —no questions asked.
*Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions. 14
16. Do You Think Your Body
Is Getting 100% of the
Vitamins and Minerals
Shown on the Label?
Labels don’t indicate the rate of solubility or absorption.
For example, to have the same amount of vitamin C or copper available for absorption, you’d have to take…
at least at least
1 Vitality Pack or ® 33 Centrum ®
or
15 One A Day®*
Daily Dose
PROVEN BY SCIENCE:
Minerals in the Vitality Pack powered by Oligo™
are proven to give you up to:
• Four times more mineral absorption
• Five times the protection of critical antioxidant vitamins
• Ten times more solubility
*Comparison vs. One A Day Women’s and Centrum for Women. *Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions. 15
18. The World’s Leader
in Natural Heart platelet
Function
Health Solutions
cholesterol
LDL
oxidation
triglyceride
levels
endothelial
function
blood
Fact: Cardiovascular health is the #1 health concern in North America. pressure
ProvexCV® FiberWise™ Phytomega®
Reduces LDL oxidation and Naturally helps to lower LDL
Helps reduce LDL
promotes healthy blood cholesterol, maintain healthy
cholesterol and promotes
pressure, platelet activity, triglyceride levels, and support
a healthy digestive tract*
and endothelial function* proper heart function*
* hese statements have not been evaluated by the Food Drug Administration.
T
This product is not intended to diagnose, treat, cure, or prevent any disease. 17
19. Exercise and Weight Facts:
Loss Products
• 8% of women and
6
72% of men are overweight
That Work!
• egular exercise reduces
R
the risk of heart disease,
diabetes, and osteoporosis
Sustain® Sport Attain® ProFlex20® Replenex®
Provides hydration and Reduces cravings to support 20 grams of fast- Maintains healthy cartilage,
endurance with twice the healthy weight loss efforts absorbing proteins with promotes elasticity, and
electrolytes and fewer with natural CraveBlocker,® the essential amino acids eases joint discomfort with
calories than Original not found in SlimFast® your muscles need our patent-pending
Gatorade® drinks or other brands A.I. Blend*
* hese statements have not been evaluated by the Food Drug Administration.
T
This product is not intended to diagnose, treat, cure, or prevent any disease. 18
20. FIRST-IN-THE-WORLD DISCOVERY
The ACCESS Bar
®
Turns Fat Into Fuel!
• CCESS your stored body fat
A
• ncrease endurance with less fatigue
I
and soreness
• atented power of natural, clinically
P
proven CLA*:
- Helps reduce body fat by up to 10%
- Improves muscle tone and lean muscle
- Prevents weight regain*
*When 3 grams of pure CLA are consumed daily for several weeks. Access contains 1.5 grams of pure CLA per serving. 19
21. Better Value Compared to
Drugstore Brands
Save vs. Major Brands*
VS.
$10.39 $24.39*
PREFERRED CUSTOMER COMPETITOR PRICE
Natural Dental Care
Featuring pure T40-C3® Melaleuca Oil
Skin Protection
Advanced dry skin, acne, and sun care
Complete First Aid
Antiseptic and herbal ingredients
naturally soothe and help speed healing
Melaleuca Oil is
well-known for
its soothing,
penetrating,
and antiseptic
* ompetitor product price from Safeway.com, Portland, OR as of May 21, 2011.
C healing properties 20
Prices may vary. Product names are trademarks of their respective owners.
22. Do You or Someone
Clinically proven to w
ork
faster, better, and last
longer than Eucerin !
You Know Suffer from
®
Severely Dry Skin?
RENEW™
7x
as effective
vs. Eucerin on
associated with: moisture retention
Eczema Psoriasis Rosacea Climate EUCERIN ®
MOISTURE RETENTION
*Clinical study wit
h dry skin from ec
zema
Proven to leave
dry skin feeling
softer, smoother,
and healthier-
looking in just
24 hours.*
21
23. Better Value Compared to Grocery Store Brands
Silky Soft Skin
from Head to Toe
Products No Family
Should Be Without
Affinia™ Shampoo and Conditioner
• Sulfate-free
Exclusively for Men
• Safe for color-treated hair
• elivers soft, shiny, manageable hair
D
COMPARE AND SAVE Products for Strong,
Melaleuca Affinia Shampoo 12.0 fl. oz $4.99 Healthy Kids
®
L’Oreal EverPure™ Shampoo 8.5 fl. oz $6.99
®
Paul Mitchell Original Shampoo 10.2 fl. oz $13.49 * ompetitor product price from Drugstore.com, True Color Hair Design, Seattle, WA as of June 8, 2011.
C
Prices may vary. Product names are trademarks of their respective owners. 22
24. Skin Care, Cosmetics and Hair Care
Naturally effective and clinically proven to enhance your true beauty.
HAIR CARE SKIN CARE CO * ompetitor product price from EsteeLauder.com as of May 30, 2011.
C
SMETICS Prices may vary. Product names are trademarks of their respective owners.
Sei Bella Estée Lauder
Skin-Revitalizing Perfectionist Wrinkle
Serum Lifting Serum
Skin moisturizers for softer skin YES YES
Advanced tetrapeptides for youthful-looking skin YES NO
vs Leading retinol technology to reduce
fine lines and wrinkles
Shea extract, antioxidants, and vitamins A and E
YES NO
YES NO
to tone and nourish skin
Price $29 $55 23
25. Products You Use Every Day
Acid Reducer Crackers Fabric Softener First Aid Kit Herbal Teas Liquid Hand Soap Omega-3 Pill
Acne Treatment Dental Floss Face Powder Flavored Drink Immune Complex Makeup Pain Reliever
After Shave lotion Deodorant Facial Cleanser Foot Lotion Joint Supplement Makeup Remover Perfume
After Sun Gel Dishwashing Facial Crème Foundation Primer Laundry Brightener Mascara Pet Shampoo
Allergy Medicine Detergent Facial Moisturizer Fragrance Sprays Laundry Detergent Melaleuca Oil Powder Blush
All-Purpose Cleaner Powder Bronzer
Antibacterial Powder Foundation
Liquid Soap Prenatal Omega-3
Antibiotic Ointment Prenatal Vitamins
Antifungal Cream Probiotic
Anti-Itch Cream Prostate Support
Antioxidants Protein Shakes
Antiperspirant Rehydration Drink
Bath Bars Sanitizing Wipes
Bath Oil Shampoos
Bathroom Cleaner Shave Gel
Body Lotion Shave Lotion
Body Wash Sponge
Breath Spray Sleep Aid
Calcium Stain Remover
Candles Sugarless Gum
Cereal Sunscreen
Cereal Bars Tooth Gel
Cleaning Wipes Disinfectant Facial Scrub Furniture Polish Lip Balms Cologne Tooth Polish
Cold Medicine Dog Treats Toner Glass Cleaner Lip Colors Meal Replacement Toothbrushes
Compacts Energy Drink Feminine Douche Gum Lip Gloss Mineral Foundation Urinary Tract Support
Conditioners Eye Serum Fever Reducer Hand Creme Lip Pencil Mouth Rinse Vision Support
Cookies Eye Shadow Fiber Bars Hand Sanitizing Gel Lip Plump Multivitamin Weight Management
Cough Drops Eyelash Primer Fiber Cereal Heart Health Support Lip Treatment Mineral Shakes
Cough Syrup Eyeliner Fiber Drink Heavy-Duty Cleaner Liquid Foundation Muscle Pain Cream Wrinkle Relaxer
24
26. The Value of Preferred Customers redirect
Preferred Customer about $50 to $60 of their monthly
shopping to Melaleuca and receive
Membership 30% to 40% off the regular price.
There’s no comparison…quality you won’t find at the grocery store!
Preferred Customers get:
LOWER PRICES BETTER PRODUCTS LOWER COST PER USE
PRODUCT REGULAR PRICE Preferred PRODUCT YOU GET: PRODUCT COST PER USE
Customer PRICE
FiberWise :
®
• 12 grams of fiber
Affinia ™ • 7 fiber sources
7
$ .50
4
$ .99 MelaPower
18¢
®
Shampoo • Vitamins A,C and E
Sulfate-Free • Soothing herbs, botanicals
and probiotics
Metamucil :
®
• 3 grams of fiber
• Only one source of fiber
Paul Mitchell
®
$
13 .49* — • No vitamins 2X Ultra Tide
®
28¢*
• No probiotics
* ompetitor product price from Albertsons.com, Las Vegas, NV, and True Color Hair Design, Seattle, WA as of June 8, 2011.
C
Prices may vary. Product names are trademarks of their respective owners. 25
27. Preferred Customers $ 20
MONTH
Get $100 in $ 20
2
FREE Products MONTH
3
$ 20
MONTH
4
$ 20
Loyalty Shopping Dollars MONTH
5
We’re so confident you’ll love
$ 20
our products, we give you
MONTH
$100 in free products during 6
your first 6 months of shopping.
Every month thereafter, you can earn 10% back
in Loyalty Shopping Dollars each time you shop.
See Melaleuca Customer Agreement for more details. 26
28. Do You As a Preferred Customer you
get exclusive discounts, rebates
Shop at Any of These and money-saving coupons at
major online retailers.
Online Retailers?
With your Preferred Customer membership, save up to 15%
at these and over 600 other online retailers
Also save on everyday
.COM services like:
• Home Security
• Identity Theft Protection
• Prescription Drugs
• Health Care Services
• Credit Card
• Cell Phone Service 24
27
29. Preferred Customer Membership
With Your Monthly To Set Up Your Shopping Account:
Loyalty You’ll Get: 1
. Become a Preferred Customer–$29 membership fee
2. Simply Switch Stores and Shop with Melaleuca Each Month
• Safer products Purchase at least 35 Product Points each month—about $50 to $60
redirected from the grocery store
• Better health
3
. Preselect Your Backup Order
• Cleaner environment
• Better value
If you forget to shop during the month, we’ll send your
• 30%–40% discount preselected order, conveniently charge your account,
and protect your membership discounts and benefits.
• $100 in free product
• 10% in Loyalty Shopping Dollars
About Product Points
• Savings on everyday services • xample: Renew™ Lotion
E
$9.99, 7 Product Points
• No risk—you can cancel
• ere is an example of
H
your membership at any time 35 Product Points:
100% satisfaction guaranteed
See Melaleuca Customer Agreement for more details. 28
30. What amount of extra income would make a difference?
• To bridge the gap in household expenses
• To get out of debt
• To stay home with children
• To secure retirement, a “plan B” for your future
• Time freedom to enjoy life on your own terms
29
31. When You Partner with Melaleuca You:
NO Large Investment
NO Carrying Inventory
1. Team up with:
NO Taking Orders and
• The world’s leader in wellness and safer for your Making Deliveries
home products
NO Billing and Collections
• A company with no debt and a proven track record
NO Pressuring Customers
• A support team to help you every step of the way to Purchase
2. Compete for market share with major brands like NO Repeat Sales
Presentations
Tide®, Cascade®, Centrum®, Colgate®, Gatorade®,
and Clinique® NO Risk Simply Switch
Stores and Save
3. Earn ongoing, reliable residual income
• Consumable products customers want, need and use
• Easy monthly shopping with over 350 products
• Preferred Customer benefits build monthly loyalty
• True repeat monthly business
Melaleuca Distribution Center, Idaho Falls, ID
30
32. Anyone
Can Build a Prosperous
Melaleuca Business
You Can Earn Residual Income in Two Ways:
1 Personally refer customers
to shop with Melaleuca
and
2 help others do the same
Earn 7% to 20% of Product
Points Earn 7% of Product
Points
each time customers you each time customers in your organization
refer shop at Melaleuca who are referred by others shop at Melaleuca
See Melaleuca Compensation Plan for more details. 31
33. The Key to Melaleuca’s
Compensation Plan
1. Personally Refer Customers
2. Develop Directors
A Director is someone who
has personally referred
eight or more customers
32
34. Advancing to Director and Director II
Average earnings in month Average
Personal of advancement ongoing
Status Customers monthly
Pacesetter* Non-Pacesetter* earnings
Refer 8 Customers Who Shop During the Month
Director
8
OR MORE
$435 $278 $168
CUSTOMERS
Average earnings of those who reach Director in their first month: $614
Personally Refer 2 More Customers and, With the Help of Others, Add 10 More Customers to Your Business
Director II 10
OR MORE
$907 $482 $328
CUSTOMERS
*Includes Pacesetter or Advancement Bonus paid over 3 months at Director II and above.
Based on Melaleuca Compensation Plan and 2010 Annual Income Statistics. 33
35. Become a Director III and Above
Help Personal Enrollees Become Directors
Average earnings in month Average
Personal of advancement ongoing
Status Directors monthly
Pacesetter* Non-Pacesetter* earnings
Director III 1
DIRECTOR
$1,644 $898 $576
Director IV/V 2
DIRECTORS
$3,052 $1,477 $996
Director VI/VII 3
DIRECTORS
$4,740 $2,484 $1,617
Director VIII/IX 4
DIRECTORS
$7,034 $3,667 $2,371
*Includes Pacesetter or Advancement Bonus paid over 3 months at Director II and above.
Based on Melaleuca Compensation Plan and 2010 Annual Income Statistics. 34
36. Residual Income to Last a Lifetime
PERSONAL POTENTIAL ADVANCEMENT AVERAGE
Status: MONTHLY BONUS
DIRECTORS BONUSES (One-Time or Pacesetter)
ANNUAL INCOME
BONUS POOL TYPICALLY
Senior
Director
Through Senior
5
DIRECTORS
$10,000
CAR BONUS
$2,000
TO
$60,187
$5,015
Director IX
$400 $10,000 Per Month
BONUS POOL TYPICALLY
Executive
Director
Through Executive
10
DIRECTORS
$20,000
CAR BONUS
$10,000
TO
$158,949
$13,246
Director IX
$1,000 $20,000 Per Month
TYPICALLY
BONUS POOL
Corporate $50,000 TO
Director
Through Corporate
5
EXECUTIVE DIRECTORS
$20,000
CAR BONUS
$100,000
PLUS A ONE-TIME
$1,286,556
$107,213
Per Month
ADVANCEMENT BONUS
Director IX
$1,000 $100,000
35
Refer to Melaleuca Compensation Plan and 2010 Annual Income Statistics for details.
37. In Which Category Do You See Yourself?
CATEGORY 1 CATEGORY 2 CATEGORY 3
PART-TIME SIGNIFICANT
PREFERRED CUSTOMER REFERRAL BUSINESS REFERRAL BUSINESS
Shop and Save Invest 5–15 Hours a Put In a Serious Effort—
30%–40% Week 20+ Hours Each Week
Save time and money, and Begin today and earn up to Earn up to $3,000–$20,000
get $100 in FREE Products. $500–$3,000 each month*, or even more each month*
Refer a friend from time to depending on your time by teaming up and getting
time if you would like. and consistent effort. started right away.
3 Simple Steps to Get Started
Set up your account and enroll
STEP 1: as a Preferred Customer
STEP 2: Preselect your Backup Order
STEP 3: Shop for your first product order
* otential earnings may vary. Based on Melaleuca Compensation Plan and 2010 Annual Income Statistics.
P 36
38. 1
ce
en
Getting Started the Right Way
fer
Re
Getting Started STATUS MONTHS
Senior
Director
11–12
$4,000
$2,000
Purchase a Pacesetter Pack $2,000
Director IX 10
with a Value or Career Pack $1,000
$1,600
Qualify for Pacesetter Bonuses Director VIII 9
$800
Schedule and hold a follow-up $1,400
Director VII 8
$700
session with your enroller within
48 hours $1,200
Director VI 7
$600
Review the materials in your $1,000
Director V 6
Membership Kit $500
$800
Director IV 5
Listen to the Getting Started CD $400
$600
Write down your questions Director III 4
$300
Start your contact list $400
Director II 3
$200
Schedule action $200
Director 1-2
$100
$6,600 $13,200
Based on Melaleuca Compensation Plan and 2010 Annual Income One-time Pacesetter
Advancement Advancement
Statistics. Pacesetter and Advancement Bonuses paid over 3
months at Director II and above. Bonus Total Bonus Total 37
39. 2 Value Pack
ce With Pacesetter Pack
en
fer
Re
Includes:
• 10 Membership Kits
$29 each
• 5 Getting Started
CD Sets
FREE
• 1 Renew™
Referral Pack
FREE
Save 34% off the Preferred Customer price
$199
• 100 Personalized
(Regular Price: $310) Business Cards
FREE
38
40. 3 Career Pack
ce With Pacesetter Pack
en
fer
Re
Includes:
• 10 Membership Kits
$29 each
• 5 Getting Started
CD Sets
FREE
• 1 Renew™
Referral Pack
FREE
Save 30% off the Preferred Customer price • 100 Personalized
$299 (Regular Price: $431)
Business Cards
FREE
39
41. 4
en
ce Revenue Sharing and Referring Customers
fer
Re
As Customers are placed in your
organization, you share in the revenue REFER 4 REFER 8 OR MORE
from those Customers’ purchases in REFER 2 CUSTOMERS
CUSTOMERS CUSTOMERS AND EARN
2 Referral Generations AND EARN ON
AND EARN ON
3 GENERATIONS 4 GENERATIONS ON 7 GENERATIONS
1 2 3 4 5 6 7
125 625 3,125 15,625 78,125
CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS
Earn 7% on monthly pu
rchases in
your organization
Earn up to 20% on your
Customers’ purchases personal
Personal
YOU Customers Earn
Marketing 1–7 7%
Executive
8–19 14%
20+ 20%
For illustration purposes only. Refer to 5 25
Melaleuca Compensation Plan for details. 40
42. 5
ce 2010 Annual Income Statistics
en
fer
Re
Customers
The majority (61% ) of those who buy Melaleuca
products each month are strictly customers. They
are not interested in pursuing the Melaleuca
financial opportunity. They just love Melaleuca
products. Only a few of them will ever decide to
build a Melaleuca business.
Customer Referrals Status
27% of all Melaleuca customers have referred at least one customer but fewer than eight customers. As those customers purchase
products directly from Melaleuca, those who referred them receive a small commission. These households are not necessarily
interested in the financial opportunity. Their relationship with Melaleuca is primarily because they love Melaleuca products. Their
“status” is determined by how many customers they have referred. A Marketing Executive has at least one customer. A Marketing
Executive II has referred at least two customers and a Marketing Executive III has referred at least four customers at some time
in their life. While these individuals may not be considered serious business builders, their customers (like the vast majority of
Melaleuca customers) come from word-of-mouth referrals. Therefore, the overall contribution of these individuals is significant.
Status Percent Annual Income Minimum Average Minimum Average Time to Achieve Status1
at This Personal Personal Total Total
Status Customers Customers Active Active Shortest Longest Average
High Low Average Customers Customers Time Time Time
Mkt. Exec. 74.1% $2,164 $24 $85 0 1 0 4 1 Mo. 120 Mo. 3 Mo.
Mkt. Exec. II 15.4% $2,352 $24 $216 2 2 2 10 1 Mo. 120 Mo. 6 Mo.
Mkt. Exec. III 10.5% $5,225 $61 $549 4 5 4 21 1 Mo. 120 Mo. 6 Mo.
Developmental Status
Only 1 out of 9 customers ( 12%
) will decide to start their own Melaleuca business and eventually achieve Director status
or above. Directors have made a substantial effort (probably spent at least 50 hours) in developing at least eight Melaleuca
customers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years. But at
some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleuca customers.
Percent of
Status Annual Income Minimum Average Minimum Average Time to Achieve Status1
Business
Personal Personal Total Total
Builders
Customers Customers Active Active Shortest Longest Average
with This High Low Average Customers Customers Time Time Time
Status
Director I / II 83.9% $16,537 $100 $2,109 10 13 10 63 1 Mo. 120 Mo. 7 Mo.
41
43. Initial Leadership Status
Leaders at these statuses have made a more serious effort at building a Melaleuca business. Those who have reached these
leadership statuses have not only invested enough time to develop several customers, but they have also helped some of those
customers start a business and become Marketing Executives. Those Marketing Executives have, in turn, referred additional
customers who purchase Melaleuca products each month. Commissions are paid based on the development of customers and the
development of leaders who help others reach their goals.
Status Percent of Minimum Average Minimum Average
Business Annual Income Time to Achieve Status1
Personal Personal Total Total
Builders Customers Customers Active Active
with This Customers Customers Shortest Longest Average
High Low Average
Status Time Time Time
Director III 6.5% $26,456 $2,462 $6,902 11 27 37 168 1 Mo. 120 Mo. 14 Mo.
Dir. IV / V 3.5% $29,967 $4,199 $11,960 13 35 84 281 1 Mo. 120 Mo. 19 Mo.
Dir. VI / VII 1.4% $43,054 $9,479 $19,404 15 43 178 428 1 Mo. 120 Mo. 22 Mo.
Dir. VIII / IX 0.8% $57,684 $12,046 $28,463 18 47 265 560 1 Mo. 120 Mo. 21 Mo.
Advanced Leadership Status
Those Marketing Executives who reach Senior or Executive Director status have shown substantial interest and dedication in
building a Melaleuca business. While they may not work their business full-time, it is essential that they invest some time each
month nurturing, training, and helping those in their marketing organization. Melaleuca advocates that Marketing Executives
keep their full-time job and work their Melaleuca business in their spare time. However, some Executive Directors at the higher
income levels do work their business close to full-time. Melaleuca strongly advocates that Marketing Executives do not quit
their full-time job until their Melaleuca income far surpasses the income they receive from their full-time employer. Rather, they
should add their Melaleuca income to their regular income, thereby making a substantial difference in their family finances.
Status Percent of Minimum Average Minimum Average
Business Annual Income Time to Achieve Status1
Personal Personal Total Total
Builders Customers Customers Active Active
with This Customers Customers Shortest Longest Average
High Low Average
Status Time Time Time
Senior Dir.2 2.6% $233,902 $21,957 $60,187 20 66 350 1,057 1 Mo. 120 Mo. 21 Mo.
Executive Dir.3 1.3% $616,923 $64,360 $158,949 20 97 1,074 2,654 4 Mo. 120 Mo. 26 Mo.
Less than
Corporate Dir. 4
0.1% $2,246,473 $745,812 $1,286,556 20 144 8,082 14,283 29 Mo. 120 Mo. 39 Mo.
The above annual income statistics include all Melaleuca North American Marketing Executives who were active during all 12 months of the period ending December 2010 and performed the
minimum activity required at each status level. The incomes stated include all commissions and bonuses actually paid during the period.
For the purpose of these statistics, a Marketing Executive’s leadership or developmental level was calculated by taking the highest status achieved and maintained for at least five consecutive
months. The information on this page is not necessarily representative of what any individual Marketing Executive will earn with this program. Any representation or guarantee of specific
earnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a Marketing
Executive exercises those qualities.
1
I
ncludes all active Marketing Executives joining Melaleuca within the past 10 years.
2
Includes statistics for Senior Director through Senior Director IX.
3
4
Includes statistics for Executive Director through Executive Director IX.
Includes statistics for Corporate Director and higher.
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