delivering wellness, personal wellness, physical wellness, financial wellness and environmental...
DESCRIPTION
It is a wonderful day when you can Enhance the Lives of those We Touch by Helping Them Reach Their Goals.TRANSCRIPT
an introduction to
1
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
Anyone Can Be Successful…Anytime
What We Will Discuss Today
2
Melaleuca’s
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.
Our Mission:To Enhance the Lives of Those We Touch by Helping People Reach Their GoalsSM
Heritage
3
FINANCIAL WELLNESS
PHYS
ICAL
WELLNESS
PERSONAL W
ELLNESSENVIRONMENTA
L WEL
LNES
S
Live Longer, Healthier,
More Vibrant Lives
Make Our Homes and the Environment
Cleaner, Safer Places
Achieve Balance, Freedom, and
Peace of Mind in Your Personal and
Family Life
Get Out of Debt and Secure Your
Financial Future
Melaleuca: The Wellness Company™
4
A Different Kind of Company
Instead of paying millions to retailers and advertisers, Melaleuca redirects revenue from its product sales to the average family and offers them the opportunity for wealth without a large investment or risk.
5
Since its beginning in 1985, annual sales have grown to over $800 million. Melaleuca’s 24-year proven track record of success is unmatched!
Each month, over 500,000 households shop with Melaleuca, a testament to the quality and value of our products.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
$550,000,000
$600,000,000
$650,000,000
$700,000,000
$750,000,000
$800,000,000
$850,000,000
1985 1991 1997 2003 2008
Melaleuca’s
GRoWThRECoRD
6
Melaleuca’s
Success
Melaleuca appeared on Inc. magazine’s list of fastest-growing companies for 5 consecutive years and earned a place on the prestigious Inc. 500 Hall of Fame.
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.
7
We refer customers to shop with Melaleuca.
They shop direct by phone or online.
Approximately 95% of our customers who shop this month will shop again next month.
Each time they shop, we earn a commission.
The result? We share in the revenue and earn ongoing commissions called residual income.
What Melaleuca Does…
We Deliver Wellness®
It’s called Consumer Direct Marketing,®and only Melaleuca does it.
8
NO Large Investment
NO Carrying Inventory
NO Taking Orders and Making Deliveries
NO Billing and Collections
NO Pressuring Customers to Purchase
NO Repeat Sales Presentations
NO Risk Simply Switch Stores and Save
At Melaleuca,
Revenue Sharing Just Makes Sense
9
Simply switch a portion of what you’re already spending at the grocery store to Melaleuca, where you’ll find better, safer products.
• No New Dollars Required • Keep Your Budget Intact
Simply Switch Stores
10
With a Melaleuca business, hundreds of thousands of average families are improving their lives. The reason? Our Superior Products.
11
Welcome to a Simpler Way of Shopping—over 300 Exclusive Products You Use Every Day
®
12
™
No other home cleaning products protect your home, family, and environment like EcoSense
SAFER FOR YOUR FAMILY
• No chlorine bleach• No ammonia • No aerosols• No formaldehyde
SAFER FOR THE EARTH
• Super-concentrated• No fillers • No phosphates
SAFER FOR YOUR HOME
• Effective, naturally derived ingredients
• No abrasives • pH-balanced (non-alkaline)
CLEANERS
Safer and More
Effective
Diamond Brite®
Patented formula with naturally derived enzymes gets your dishes and silverware shiny and spot-free without using chlorine bleach, phosphates, or other harmful ingredients.
MelaPower® 6xThe concentrated, pH-balanced formula uses powerful, naturally derived surfactants to wash away stubborn dirt and stains without damaging clothing. Our concentration technology is patent pending and exclusive to Melaleuca.
Our proprietary Rinse Guard™ agent actually keeps dirt from settling back onto your clothes during the rinse cycle.
13
1414
6XCONCENTRATED
MelaPower® 6X192 loads
$29.99PREFERRED CUSTOMER
6 Bottles of 2X Ultra Tide®
192 loads total
$61.74*COMPETITOR PRICE
Concentrated Means Less Waste and More Savings
VS
=
= =
Clear Power® Makes 96 fl. oz.
$5.69PREFERRED CUSTOMER
Tub & Tile™ Makes 96 fl. oz.
$5.69PREFERRED CUSTOMER
3 Bottles of Windex® 96 fl. oz. total
$10.47*COMPETITOR PRICE
6 Bottles of Lime-A-Way® 96 fl. oz. total
$20.94*COMPETITOR PRICE
* Competitor product prices from Albertsons.com, Portland, OR and Kroger, Atlanta, GA March 11, 2009. Prices may vary. Product names are trademarks of their respective owners.
VSVS
15
sol-U-Guard Botanical® 2x Concentrate• Kills household germs like staph, E. coli, and rhinovirus—
the leading cause of the common cold• Gentle enough to use around children and pets• No chlorine bleach, ammonia, harsh fumes,
or harmful residue• Available only at Melaleuca
EPA-Approved to
Kill 99.9% of Germswith the Natural Powerof Thyme and Citric Acid
2x concentrated to save you money
16
Our products are sourced from natural, sustainable sources
We don’t use phosphates, chlorine bleach, or ammonia
We were green long before being green was popular
Melaleuca is the world leader in concentrated products and technology
Caring for the Environment Since 1985
If every household used concentrated EcoSense™ products instead of grocery store brands, in 10 years we would save almost 7 billion pounds of plastic. That would be 78 billion fewer plastic bottles in our landfills!
Phosphates in our waterways cause excessive growth of algae, deplete oxygen levels, and damage fragile aquatic ecosystems.
17
Want More Energy andBetter Health?FACT: 4 out of 5 adults are not eating their daily serving of fruits and vegetables.
• The minerals in other top-selling supplements have been proven to crystallize during digestion, which inhibits absorption
• The human body was made to absorb vitamins and minerals from natural foods like fruits and vegetables
• The minerals in plants are bound to proteins and fibers—making them easier for our bodies to absorb
• Oligofructose Complex™ prebinds minerals to proteins and oligofructose fibers, similar to how they exist in plants and foods
THE REsULT?No other mineral form is more absorbable than Melaleuca’s oligofructose Complex.*
* Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions.
18
1 Vitality Pack®
Daily Dose or orat least
15 One A Day®*at least
33 Centrum®
Do You Think Your Body Is Getting 100% of the Vitamins and Minerals Shown on the Label?
The difference you’ll feel using the Vitality Pack is so impressive, it’s guaranteed. If after 90 days you don’t feel a marked difference in
your health and energy, we’ll refund your money—no questions asked.
THE BOTTOM LiNE: Minerals found in other top-selling supplements crystallize when digested, aren’t as absorbable, and destroy important vitamins like C and E.
Oligofructose minerals found in the Vitality Pack are up to 10 times more available for absorption and protect antioxidant vitamins 5 times better.
Labels don’t indicate the rate of solubility, availability, or absorption. For example, tests show that in order to get the same amount of Vitamin C or Copper, you’d have to take…
*Comparison vs. One A Day Women’s
19
The World’s Leader in Natural HeartHealth solutions
Phytomega®
Naturally lowers LDL cholesterol while
maintaining healthy triglyceride levels*
FiberWise™Helps reduce LDL
cholesterol and promotes a healthy digestive tract*
ProStolic®
Naturally maintains healthy blood pressure
with milk peptides*
ProvexCV®
Reduces LDL oxidation, promotes healthy blood
platelet activity and endothelial function*
FACT: Cardiovascular health is the #1 health concern in North America.
CHOLEsTEROL
TRiGLYCERiDELEVELs ENDOTHELiAL
fUNCTiON
PLATELET fUNCTiON
BLOODPREssURE
LDLOxiDATiON
* These statements have not been evaluated by the Food & Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.
20
Exercise and
Weight Loss Products That Work!
Access®
Patented nutrition that turns fat into fuel for exercise
with half the calories of Original PowerBar®
Simply Fit™10 organic whole grains
and seeds and no trans fat—a genuinely
healthy snack!
Attain®
Reduces cravings to support healthy weight loss efforts
with natural CraveBlocker,™ not found in SlimFast®
Sustain® SportProvides hydration and
endurance with twice the electrolytes and fewer calories than Original Gatorade® drinks
FACTS: Over 60% of American adults are overweight. Weight loss and exercise is a $43 billion industry.
21
Envia shampoo and Conditioner• Patented Lipid Replenishing system adds
shine, strength, and moisture to your hair• Patented UV Protection system prevents
color-fading, split ends, and UV damage• Delivers salon-quality results without salon prices
Products No Family Should Be Without
Bath & Body Essentials
Beautiful hair from Nature’s Salon
Silky Soft Skin from head to Toe
Exclusively for Men
Products for strong, healthy kids
®
™
22
Skin Care and CosmeticsExclusively at Melaleuca
Necessities Skin Care Set (Cleanser, Toner, Moisturizer)• Protects your skin from UV damage• Nourishes skin with vitamins and botanicals• Helps restore skin’s firmness and tone with peptides
Natural Ingredients Proven Formulas
Visible Results
23
Complete First AidAntiseptic and herbal ingredients naturally soothe and help speed healing
Natural Dental CareExceptional dental care featuring pure T40-C3® Melaleuca Oil
Skin ProtectionAdvanced dry skin, acne, and sun care
Drugstore EssentialsSave up to 50% vs. major brands
Melaleuca oil is well-known for its soothing, penetrating, and antiseptic healing properties
24
Do You or Someone You Know Suffer from Severely Dry Skin?Eczema Psoriasis Rosacea
Clinically proven to work faster, better, and last longer than Eucerin®!
MOISTURE RETENTION
*Clinical study with dry skin from eczema
7x as effective vs. Eucerin on moisture retention
EUCERIN®
RENEW™
Climate
associated with:
Proven to leave dry skin feeling softer, smoother, and healthier-looking in just 24 hours.*
25
Exclusive Membership Benefits
We leverage our large number of customers to negotiate these incredible savings—then pass them on to you.
Plus, save hundreds of dollars by using additional Melaleuca services with low, pre-negotiated rates
.COM
With your membership, save up to at more than 70 online retailers15%
26
Value of Monthly Shopping
TOTAL PRICE OF GROCERY STORE BRANDS
$99.97*
* Competitor retail prices from Albertsons, Albertsons.com, Target, and Drugstore.com as of March 12, 2009. Prices will vary. Product names are trademarks of their respective owners.
MELALEUCA REGULAR PRICE$79.98
Become a Preferred Customer—spending about $50 to $60 each month—and save 30% to 40% each time you shop!
YOUR DISCOUNTEDPREFERRED
CUSTOMER PRICE
$55.33
With the Loyalty Shopping Dollars program, you can earn up to $100 in FREE PRODUCTS when you shop in your first five months!
After five months, you can earn up to 10% back in LOYALTY SHOPPING DOLLARS when you shop EARLY in any month.
Loyalty Shopping Dollars Make Melaleuca Even More Rewarding
2 50 fl. oz. bottles of 2X Ultra Tide® = 64 loads5 bottles of Softsoap® = 500 uses3 bottles of Formula 409® = 96 fl. oz.
THE VALUE Of CONCENTRATiON1 32 fl. oz. bottle of MelaPower® 6X = 64 loads1 bottle of Melaleuca Liquid Soap = 500 uses1 bottle of Tough & Tender® makes 96 fl. oz.
27
Preferred Customer MembershipPreferred Customers agree to shop each month with Melaleuca
WE PROMISE:
• Preferred Customer Pricing 30%–40% off the regular price
• Exceptional Products Delivered Conveniently to Your Door
• Loyalty Shopping Dollars You can earn up to $100 in Loyalty Shopping Dollars in your first 5 months and up to 10% thereafter*
• Save up to 15% at Online Retailers with Melaleuca Marketplace
• Savings on Everyday Services
• No Risk—You Can Cancel Your Membership at Any Time 100% satisfaction guaranteed*
YOU AGREE TO:
Become a Preferred Customer $29 membership fee*
Simply Switch Stores and Shop with Melaleuca Each Month Purchase 35 Product Points each month—about $50 to $60 dollars redirected from the grocery store
Preselect Your Backup Order Protect your Preferred Customer benefits
3
3
3
On average our customers order
48 PRODUCT POINTSper month
*See Melaleuca Customer Agreement for more details.
If you forget to shop during the month, we’ll send your preselected products, charge your method of payment, and protect your savings and other benefits!
28
You Can See Why Being a Preferred Customer Makes So Much Sense…
how would an extra $500,
$1,000 or $10,000
per month improve your life?
29
PERSONALLY REFER CUSTOMERS TO SHOP WITH MELALEUCA
AND HELP OTHERS DO THE SAME1 2Earn 7% to 20%
each time customers you refer shop at Melaleuca
Earn 7% each time customers in your organization
who are referred by others shop at Melaleuca
Anyone Can Build a Successful
Melaleuca Business
YOU CAN EARN RESIDUAL INCOME IN TWO WAYS:
See Melaleuca Compensation Plan for more details.
30
Marketing Executive
Others can also refer new customers and place them in your organization. You can revenue share on up to 30 customers in your first two generations.
Your Household
7% 5
7% 25 Households
1
2
See Melaleuca Compensation Plan for more details.
31
Director Is a person who refers 8 customersand can now be paid residual income through seven generations
Helping the Average Family:Seven families benefit from every Melaleuca purchase
1
2
3
4
5
6
7
Your Household
7% 57% 25 Households7% 125 Households7% 625 Households7% 3,125 Households7% 15,625 Households7% 78,125 Households
Refer 2 Customers
See Melaleuca Compensation Plan for more details.
Refer 8 customers and earn 7% on each generation and up to 20% on all your personally referred customers
Refer 4 Customers
32
IMPORTANT STEPSDIRECTOR
STATUS ACHIEVED
PERSONALLY REFERRED
CUSTOMERS
POTENTIAL MONTHLY
RESIDUAL INCOME
PLUSPOTENTIAL
MONTHLY BONUS POOL
PLUS ONE-TIME or PACESETTER
BONUS
2008 MONTHLY INCOME
STATISTICS
Become a Director by Personally Referring
8 Customers
Director 8 $500 – $100 OR $200 $180 $1,330II 10 $750 – $200 OR $400
Develop 1 Personal Director III 11 $1,000 $1,000 $300 OR $600
$603 $1,710
Total of 2 Personal Directors
IV 12 $1,500 $1,500 $400 OR $800 $1,010 $2,410V 13 $2,000 $2,000 $500 OR $1,000
Total of 3 Personal Directors
VI 14 $2,500 $2,500 $600 OR $1,200 $1,560 $3,610VII 15 $3,000 $3,000 $700 OR $1,400
Total of 4 Personal Directors
VIII 16 $3,500 $3,500 $800 OR $1,600 $2,280 $5,460IX 18 $4,000 $4,000 $1,000 OR $2,000
Getting Started: A Part-Time Referral Business
For illustration purposes only. Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details.
AVG.
HIGH
AVG.
HIGH
AVG.
HIGH
AVG.
HIGH
AVG.
HIGH
33
Residual Income to Last a Lifetime
Unlimited
PLUS AN EXTRA 2% ON ALL CUSTOMER
PURCHASES
STATUS PERSONAL DIRECTORS
POTENTIAL MONTHLY
INCOME BONUSES
Unlimited
Unlimited
BONUS POOL
$10,000
CAR BONUS
$400
BONUS POOL
$20,000
CAR BONUS
$1,000
BONUS POOL
$20,000
CAR BONUS
$1,000
ADVANCEMENTBONUS
(One-Time or Pacesetter)
TYPICALLY
$2,000TO
$10,000
TYPICALLY
$10,000TO
$20,000
TYPICALLY
$50,000 TO $100,000PLUS A ONE-TIME
ADVANCEMENT BONUS
$100,000
10DIRECTORS
5DIRECTORS
5EXECUTIVE DIRECTORS Through Corporate
Director IX
Through Executive Director IX
Through Senior Director IX
SeniorDirector
ExecutiveDirector
Corporate Director
For illustration purposes only. Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details.
34
Earn up to $5,000–$20,000 or even more each month with a continued, consistent effort.
Earn up to $500–$5,000 each month, depending on your time
and consistent effort.
PART-TIME REFERRAL BUSINESSPREFERRED CUSTOMER
Shop and Save 30%–40%
Invest 5–15 Hours a Week
Put In a Serious Effort—20+ Hours
Each Week
SIGNIFICANT REFERRAL BUSINESS
CATEGORY 1 CATEGORY 2 CATEGORY 3
Potential earnings are not guaranteed and will vary. Please see the Melaleuca Compensation Plan and 2008 Annual Income Statistics for details.
Save time and money, and earn up to 10% in Loyalty Shopping Dollars. Refer a friend from time
to time if you would like.
how Can Melaleuca Enhance Your Life?
$55,588 Avg. $4,630/month
$1,209,356 Avg. $100,770/month
$148,542 Avg. $12,370/month
Senior Director
Corporate Director
Executive Director
35
3 Simple Steps to Get Started as a Customer
STEP 1:
STEP 2:
STEP 3:
Set up your account and enroll as a Preferred Customer
Preselect your Backup Order
Place your first product order
* Notify Melaleuca in writing by the 25th day of any month. See Melaleuca Customer Agreement for more details.
There’s No Risk…You can cancel your membership at any time.*
Getting Your Business Started the Right Way Save an Extra 30% and Qualify for Pacesetter Bonuses
Value PackSave 30% off the
Preferred Customer PriceOnly $199
Career PackSave 30% off the
Preferred Customer PriceOnly $299
Pacesetter Packwith 10 Membership Kits
Save an Extra $50
Career Pack shown.Value and Career Pack product assortments are subject to change without notice.
Developmental StatusOnly 1 out of 9 customers (11%) 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.
Active Executive
Status
Percent of Business
Builders with This Status
Annual Income MinimumPersonal
Customers
AveragePersonal
Customers
MinimumTotal
ActiveCustomers
AverageTotal
ActiveCustomers
Time to Achieve Status1
High Low Average Shortest Time
Longest Time
AverageTime
Director I/II 83.7% $16,007 $70 $2,250 10 14 10 65 1 Mo. 120 Mo. 7 Mo.
Customer Referrals Status29% 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.
Active Executive
Status
Percent at This Status
Annual Income MinimumPersonal
Customers
AveragePersonal
Customers
MinimumTotal
ActiveCustomers
AverageTotal
ActiveCustomers
Time to Achieve Status1
High Low Average Shortest Time
Longest Time
AverageTime
Mkt. Executive
Mkt. Exec. II
Mkt. Exec. III
73.8%
15.3%
10.9%
$1,428
$2,383
$7,293
$24
$24
$64
$87
$221
$561
0
2
4
1
2
5
0
2
4
4
10
22
1 Mo.
1 Mo.
1 Mo.
120 Mo.
120 Mo.
120 Mo.
3 Mo.
6 Mo.
5 Mo.
CustomersThe majority (more than 60%) 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.
2008 Annual Income Statistics
Initial Leadership StatusLeaders 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.
Active Executive
Status
Percent of Business Builders
with This Status
Annual Income MinimumPersonal
Customers
AveragePersonal
Customers
MinimumTotal
ActiveCustomers
AverageTotal
ActiveCustomers
Time to Achieve Status1
High Low Average Shortest Time
Longest Time
AverageTime
Dir. III
Dir. IV / V
Dir. VI / VII
Dir. VIII / IX
6.2%
3.6%
1.3%
0.8%
$20,622
$29,005
$43,381
$65,553
$1,967
$5,013
$8,701
$12,810
$7,239
$12,087
$18,780
$27,437
11
13
15
18
29
36
46
50
33
94
201
303
172
294
406
618
1 Mo.
1 Mo.
1 Mo.
1 Mo.
120 Mo.
120 Mo.
120 Mo.
120 Mo.
14 Mo.
19 Mo.
21 Mo.
22 Mo.
Advanced Leadership StatusThose 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.
Active Executive
Status
Percent of Business Builders
with This Status
Annual Income MinimumPersonal
Customers
AveragePersonal
Customers
MinimumTotal
ActiveCustomers
AverageTotal
ActiveCustomers
Time to Achieve Status1
High Low Average Shortest Time
Longest Time
AverageTime
Senior Dir.2
Executive Dir.3
Corporate Dir.4
2.8%
1.5%Less than
0.1%
$175,844
$591,424
$2,176,348
$22,177
$39,248
$559,043
$55,588
$148,542
$1,209,356
20
20
20
65
89
113
369
853
7,832
971
2,643
12,915
1 Mo.
4 Mo.
29 Mo.
120 Mo.
120 Mo.
120 Mo.
22 Mo.
24 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 2008 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 Includes all active Marketing Executives joining Melaleuca within the past 10 years.2 Includes statistics for Senior Director through Senior Director IX. 3 Includes statistics for all positions of Executive Director through Executive Director IX. 4 Includes statistics for positions of Corporate Director and higher.
© 2009 Melaleuca, Inc. Printed in the USARev. 04/09U
Enhancing the lives of those we touch by helping people reach their goalsSM
101702180