So, What is a "Melaleuca", Anyway?

That's a great question. The best way to begin is to explain what it is not. It is not Amway, NuSkin, Rexall, Arbon, Mana Tech, MonoVie, Tahitian Noni or any of the juice companies.

In short, it is NOT multilevel marketing, and I can prove it.

Why would I want to prove it? Have any of you ever been in a multilevel marketing company? Has anyone ever approached you? Did you lose money?

I know this blog will be controversial. Allow me to approach this in a positive way, and not go negative on anyone's business or opportunity. Rather, if you are presently involved in a Multilevel deal, or if you have been, OR if you think one day you would like to, PLEASE give this a fair reading.

The multilevel marketing industry companies all have one thing in common and that is this: More people (MANY MORE) lose money than make money. And the of the people that make money - most of them are the owners of the company, and not the distributors. VERY FEW distributors (associates, IBO's, etc. even the ones in early) ever show a net profit. There are many reasons for this, but discussing them is not relevant. The statement stands on its own as TRUE.

Now, go back and READ THAT PARAGRAPH AGAIN.

If anyone ever asks you to evaluate a business opportunity, here are 12 points to consider as you are evaluating:

1. Track Record. If someone says to you "get in early." RUN! What that means is that in five years the company either won't be there, or you will have a business that you can no longer honestly look someone in the eye and invite. Now, all companies have to start somewhere. So evaluate the model based on the next 11 if the company doesn't have a track record. 95% of all new start ups are gone after one year. Of the ones that remain, 90% of those will be gone in five years. Odds are not so good, are they?

2. Financially Sound. Who is financing the company, and do they have the financial strength to meet their obligations in production, AND paying a distributor base. What is the percentage of revenue that goes to production? What is the percentage of revenue that is returned to the distributor? Are they privately held, or publicly traded? Can the owners sell the company? This is HUGE? Many companies start up, and the owners sell to get their money out. The company then disappears.

3. Strong Management. Who is running the business? Is it a MLM guy? Is it a doctor? The operations of the company should be run by BUSINESS people who know how to run corporations. MANY companies start up and the owners have NO CLUE how to run a business. If there is rapid growth, this can get out of hand in a hurry, so BEWARE. Make sure the opportunity is being run by conservative BUSINESS minded persons.

4. Unique Consumable Products. Now here is one that just about everyone claims. However, how unique is the product, really? An example here would be the "juice" companies. They all claim to have a unique product that offers high "antioxidant" content. A recent independent study measuring FRAP values for antioxidants in 6 juice companies showed that Welches Grape Juice had a higher FRAP value than 5 of the 6. You might say, "Great, sign me up for the company that won!" That company sells its product to consumers for $35 a bottle. It would be easier for you to just drink an additional glass of Welches.

Anyway, the point is that the product(s) needs to be unique in the marketplace and usable by EVERYONE.

5. Competitively Priced. ALL multilevel companies' products are expensive in comparison to the marketplace. I have yet to see the company that competes on price. So, why do it? Who is going to buy it? Are you going to feel good selling it? With the Walmarts and Targets of the world out there, how are you going to compete? Really?

6. High Reorder Rate. Ask the person recruiting you what percentage of customers reorder month to month. This is an important statistic, as it leads to retention. Since most customers get involved with dreams of making money, when that doesn't happen for them in month one or month two, they suddenly find themselves stuck with products they have ordered and an expensive monthly auto-ship order of more on the way. They cancel, and they are gone. Sound familiar? MLM is a POOR MODEL!

7. Monthly Personal Requirement. How much money does the company require you to spend on a monthly basis in product in order to qualify for a check? $100? $150? More? The personal monthly requirement should be low, and the products required for purchase should be those that you personally consume.

8. Low Entry Fee. Most companies will have an entry fee of $50 or less. However, someone wanting to be a "player" or a business builder is often required to purchase or buy in at a much higher level. One company I saw would get you for $1,500 to $5,000 to "set you up" for success. This is dangerous. Make sure that whatever amount of money you enter with is 100% refundable for a reasonable period of time. This is really unheard of, as most companies have "restocking fees" or penalties of 15% or more. Again, with MLM, people are MORE likely than not to lose money.

9. Low Attrition. Similar to #7, your recruiter should be able to tell you how many stay, and how many leave.

10. Timing. Most companies try to stress the timing of getting in early. There are not very many "old" companies in the MLM industry. Those that are have very interesting and "sorted" histories. Look for a company where the playing field is level for EVERYONE. Look for a company that will be just as viable five years from now, as the present. Look for a business that will last for a lifetime, not just a lunch time.

11. Fair Compensation Plans. MANY companies break down here. They offer complicated compensation plans that "break away", or "Binary plans" that do not fairly reward you for powerful players you may bring to the table. A "break away" happens when I recruit Joe into the business. Joe does extremely well, in fact so well that at one point in the process, I lose all of the business that Joe created. But I brought Joe in! That isn't fair. Binaries are similar. If I place Joe on one side of the Binary, and that leg takes off, the company compensates me only on the lower producing side. That is not fair. But most all of the MLMs have this type of compensation.

12. NO RISK! Period. If you are looking at a business, and you can't get EVERY DIME of your money back in 30 or 60 days, RUN AWAY!!!! FAST!!! Because there is a 99% probability that you will lose money.

Now, how can I prove to you that Melaleuca is not an MLM company? Simply by comparing the 12 factors above.

1. Company Track Record - 25 years in business with growth in each year. Inc. 500 hall of fame, Blue Chip Enterprise Award from the US Chamber of Commerce, Blue Torch Award for Excellence from the Better Business Bureau.

2. Financially Sound - Debt free, the company did right at a Billion dollars in business last year. In this struggling economy, growth was close to 40 million, and the company invested $110 million in facilities and operations improvements this year, paying cash. Company is privately held and can never be sold (by charter).

3. Strong Management - Melaleuca is run by corporate executives with experience with Proctor and Gamble, AT&T, IBM, Kimberly Clark, Franklin Covey, Coca Cola, Gillette, etc. These are corporate people who know how to run businesses. They are not MLMers.

4. Unique Consumable Products - Melaleuca offers over 350 world class products in 5 different lines of products. Many are patented, all are proprietary. The emphasis is on getting a customer to "switch stores" for life. Products appeal across a broad spectrum of the population. EVERYONE can benefit from being a customer. Melaleuca products are scientifically based and safe for the home and environment.

5. Competitively Priced. Melaleuca products are more often than not LESS expensive to use than grocery store brands. (Even at Walmart pricing).

6. High Reorder Rate. Melaleuca boasts a 95% month to month reorder rate from its customers. (Read that again.) For a business builder, this represents TRUE residual income.

7. Low Personal Production Requirement. Melaleuca "preferred" customers are only required to purchase around $50 per month in product (switching stores so NO new budget money is required). This expenditure enables the customer to be paid commissions on other customers placed beneath them.

8. Low Entry Fee. $29 US (one time) opens a preferred customer account. Renewal is $12 annually. There is a $199 Value Pack option, and a $299 Career Pack option available for business builders. Again, these are products for personal use, and not for resale. Melaleuca does not have "distributors." They do not stock or sale products. These packs are for the purpose of exposing a business builder to a broad line of Melaleuca products in a short period of time. Purchase of these packs is NOT required. However, Melaleuca rewards purchasers with over $6,000 in potential first year bonuses. The maximum entry cost for a Melaleuca business builder is under $500.

9. Low Attrition. Company is focused on customer retention. First quarter attrition is 5%.

10. Timing. Melaleuca still has only a 4% exposure to the public. Basically, if you were to start at one end of a mall, and work you way to the other end, asking 100 people if they have heard of Melaleuca, only 4 out of 100 will say yes. With the present economic situation, Melaleuca is a wonderful opportunity for persons wanting to make a little extra money, and for those wanting to earn substantial income.

11. Fair (and lucrative) Compensation: NO Breakaways, NO Binary! Melaleuca returns 51% of its revenue back to its customers, every month.

12. NO RISK! EVERY DIME, EVERY PENNY is refundable. All products - empty packages returned for 60 days for a FULL REFUND. Every box shipped has a return label included for your convenience. Your $29 initial membership fee is refundable for 120 days. There is NO WAY to lose any money at Melaleuca.

Do you still think Melaleuca is MLM? Here's the "skinny" on that. While the Melaleuca compensation plan is based on a 5 x 7 pay matrix, 65% of Melaleuca customers are - just customers who have switched stores, and are shopping monthly. The business model is different enough to have been awarded a patent of its own. It is called Consumer Direct Marketing. And only Melaleuca has it. NO distributors, NO stocking, NO selling of products, just customers sharing what they know and referring other customers. The company rewards the referring customer by sharing revenue. It is a simple concept. If you would like to know more, I would love to share more with you.

All I can do to help you Make Life Good!

About Moms

Mother's day 2010 brings an exciting new perspective on this wonderful traditional holiday.

Just about everyone can celebrate Mom! We certainly wouldn't be here without them. I certainly would not be the person I am today without my mother's steady on love and upbringing. I love you Mom! You're the very best a son could ever ask for in a mother!

This year's new perspective on this day comes from the fact that my daughter is now a mother for the first time in her life. It has been such a joy over the past few months to watch our daughter in law (who is also a mommy for the first time this year) and our daughter so naturally take on the impossible task of becoming mommy.

It is an impossible task, you know. How do they do it? Where do they get the strength, the patience, the immeasurable love that it takes?

Only God can give that kind of love. It comes from above, of that there is no doubt. For no where else on earth can you see the genuine nature of the unconditional love of God displayed than when you watch a mother's love for her child.

We are having a huge celebration on Sunday. Church, then lunch at our house with all the moms present: my mother, my wife, my daughter, my daughter in law; my brother and dear wife will be here too. All three children will be present to honor their mother and grandmother. Oh, and did I mention that princes Joshua Henry and Maverick James will be there? Queeny has already proclaimed that the princes will rule on Sunday! Wonderful day approaching! It really doesn't get any better.

Happy Mother's Day to all the mothers. Thank you for all you do to help MAKE LIFE GOOD!