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SIMPLE STEPS TO SUCCESS Keys to Building Your Melaleuca Business

IT ALLSTARTS NOW.

Go online to Malaysia.Melaleuca.com/BusinessCenter/Content/getting-started OR SG.Melaleuca.com/BusinessCenter/Content/getting-started. Get the training and tips you need to succeed with your Melaleuca business. Today’s top Marketing Executives—who were once new business builders like you—share their stories, why they made the decision to build a Melaleuca business, and how it has changed their lives.

Read the Preferred Customer Benefits booklet available in your business kit.

Set up your online shopping account. When you enrolled as a Melaleuca customer, you were sent an email to the email address you provided. This message contains instructions on how to easily set up your online account and password.

Purchase a Home Conversion or Value Pack. Now that you’ve found the best products on the planet, don’t wait any longer to convert your whole home to better, safer, higher-quality products! To help you make this conversion, Melaleuca offers you the opportunity to purchase either a Home Conversion Pack or a Value Pack at a steeply discounted price, saving you over 50 percent off the market price.

Identify your “why.” A strong business starts with a solid sense of purpose. So take some time to identify your “why.” What is your goal with your Melaleuca business? What will achieving that goal do for you and your family? Will it bring financial freedom? Will it give you an opportunity to live life on your own terms? Or will it improve your children’s future? Write down your goal and your “why,” share them with your enroller or mentor, and remind yourself of them frequently as you build your business.

Start your contact list. Write down 100 names—without prejudging how interested you think the individuals may be— to get your contact list started. Then identify the 10 names you think could most readily benefit from Melaleuca’s life-changing wellness products.

Determine your business hours. Write down the days and times you will devote to your Melaleuca business. How many hours are you willing to invest each week? It may be 5 hours, it may be 20 hours; all that matters is that you commit to it.

SIMPLE STEPS TO GETTING STARTED

Your Melaleuca journey has just begun! Luckily, you’re not left to explore on your own. Your enroller, the person who introduced you to Melaleuca, will arrange a Strategy Session with you to answer questions and help you every step along the way. Together with your support team, success is just over the horizon.

SIMPLE STEPS TO SUCCESS 32 WELCOME TO MELALEUCA

Home Conversion PackMALAYSIARegular Price: RM2,238.60Preferred Customer Price: RM1,535.95Preferred Customer Savings: RM702.65

New-Customer-Only Pack Price: RM1,040.00Additional Savings: RM495.95 (32%)

SINGAPORERegular Price: S$842.00Preferred Customer Price: S$576.70Preferred Customer Savings: S$265.30

New-Customer-Only Pack Price: S$398.00 Additional Savings: S$178.70 (31%)

Exclusively available for new customers! Home Conversion and Value Packs are the easiest and most affordable way to replace the products you use every day with healthier, safer, smarter alternatives.

BEGINWITH A BANG.

During your first two months as a new Preferred Customer, you can purchase the Home Conversion Pack or Value Pack. These limited-time packs feature dozens of Melaleuca’s most popular products at additional savings off the already-discounted Preferred Customer prices. You’ll discover the Melaleuca difference in virtually every area of your home: from nutritional supplements, dental care, and personal care products to safer-for-your-home cleaning and laundry systems. While purchasing a pack is not required, they are the best way to give you the chance to become familiar with a wide range of Melaleuca products. They also help you jump-start your business by giving you firsthand product knowledge. The more you experience the Melaleuca difference in your own home, the easier it is for you to confidently share it with family and friends.


If a customer bought only 35 Product Points a month, it would take them over three years to buy every single product in Melaleuca’s product line. That’s because consumers have a huge variety of products—350+ and growing—to choose from. They can shop this month for products they may not have purchased last month. As a result, customers come back to Melaleuca to shop again and again.

PRODUCTS TO CHOOSE FROM350+

High Reorder RateIt’s well documented that at least 96 percent of customers who shop with Melaleuca this month will shop again next month. That means as you build your Melaleuca business, your customers will shop month after month. This exceptionally high reorder rate results in true residual income.

Unique Business ModelMelaleuca is the world’s only Consumer Direct MarketingSM company, Melaleuca.com is one of the top 100 e-commerce sites in the world. Consumer Direct Marketing was designed to create and reward customer loyalty. You simply introduce customers to Melaleuca and help them set up their accounts, and they shop directly from Melaleuca online or with the Melaleuca catalog. You don’t have to worry about giving repeat sales presentations. And since anybody can build a successful Melaleuca business, your organization can be full of everyday average customers who refer a customer from time to time. Those referrals continually fuel your residual income.

Once you’ve introduced a customer to Melaleuca and helped them set up their account, Melaleuca goes to work for you. Melaleuca provides world-class products, catalogs, and a shopping website. Melaleuca takes your customers’ orders, ships them, and collects sales tax— all at no cost to you. Your residual income continues as that customer shops month after month.

There are several key reasons onlyMelaleuca can provide reliableresidual income…

Residual income is reliable money that comes in month after month, year after year. With

Melaleuca, all you do is give a one-time Melaleuca Overview to a new customer, enroll that

customer, and from that point forward you earn a check every single time that customer shops

with Melaleuca.

REALRESIDUALINCOME

Customers Love Our ProductsIt takes unique products to create ongoing residual income. The Access® Bar and Vitality Pack™ powered by Oligo™ are just a few examples of products developed by Melaleuca and our scientific partners-products our customers love.

Reasonable PricesYour customers find value at Melaleuca. That brings them back month after month—even in a tough economy. Whether they shop for Affinia® Shampoo or MelaPower® Laundry Detergent, they can simply switch stores and find tremendous value every time they shop.

Preferred Customer Program In exchange for a commitment to shop monthly at Melaleuca, Preferred Customers get a big discount on Melaleuca products, opportunity to be a Lifetime VIP Member and much more! This customer loyalty program rewards ongoing purchases and creates a true residual income for Marketing Executives.

Monthly ShoppingInstead of selling one-time-purchase items like jewelry or appliances, Melaleuca sells consumable wellness products, like bars, shakes, and personal care products that customers use and replace every month. As a result, your income from their ongoing purchases is residual and recurs every month.


Directors

Enrollments

Overviews

Appointments

Calls/approaches

Number of days to achieve my goal

1. WHAT IS YOUR GOAL?

2. WHY IS YOUR GOAL IMPORTANT TO YOU?

MY ACCOUNTABILITY PARTNER:

STATUS GOAL BY (SET A FUTURE DATE):

WHAT I NEED TO ACCOMPLISH MY GOAL:

MY NUMBER OF DAILY CALLS/APPROACHES:

3. HOW WILL YOU GET THERE? WHAT DAILY ACTIONS WILL YOU DO TO REACH YOUR GOAL?

WHY ARE YOU BUILDING A MELALEUCABUSINESS?

Melaleuca’s 20/20 Club should be one of your first goals. Why? It’s simple. When you personally enroll 20 customers in your first 90 days, you begin earning the 20% Personal Customer Commission on all of their product purchases. And by the time you have 20 personal customers, you will have already advanced to Director 2 or even Director 3 if you helped just one of your personal customers also reach Director. Plus, you’ll have done it all on Pacesetter time frame, which means your advancement bonuses will be DOUBLED! That’s RM3,000/S$1,500 when you reach Director 3! Need a plan? Try this! Month 1: Personally enroll 10 new customers. Month 2: Personally enroll 5 new customers and help one of your personal customers reach Director. Month 3: Repeat what you did in month 2. When you do this in your first 90 days, your business will be unstoppable and you’ll be well on your way to Senior Director!

See Melaleuca’s Compensation Plan for details, available at the Business Center on Malaysia.Melaleuca.com or SG.Melaleuca.com

PLAN ON THE20/20CLUB

Bonuses

You receive bonuses whenever: You advance your business.

Each time you advance to a new Status of Director or above, you will receive a one-time Advancement Bonus.

Others in your organization advance. The Mentoring Bonus is paid each time a personal customer, someone you’ve personally enrolled, advances to a new Status of Director or above. Directors 3 and above can qualify for the Core Mentoring Bonus when a personal’s personal customer advances.

Plus earn other bonuses. As your business grows you can earn more bonuses. Senior Directors and above earn Monthly Financial Freedom Bonus, and can qualify for a lucrative Critical Activity Bonus.

Commissions

Home Conversion Commission: When you quality enroll a customer, you will receive a one-time commission on that customer’s purchases in their first month:• RM75/S$30 if your customer purchases at least 35

Product Points of product• RM150/S$60 if your customer purchases a Value Pack • RM300/S$125 if your customer purchases a Home

Conversion Pack

Personal Customer Commission: Beginning with a customer’s second month, you will receive a commission up to 20% on the first 150 Product Points purchased by all customers you personally enrolled.

Organization Commissions: After you have enrolled your first customer, you will receive 7% of the first 150 Product Points purchased by each customer enrolled by others in your organization.

The Melaleuca Compensation Plan is designed to simplify the way you earn residual income. As you build your Melaleuca business, the following commissions and bonuses will be available.

B

C

A

A MARKETING REVOLUTION!


PACESETTER BONUSES— 2X PAYOUTS FOR SPEED.

STATUS ADVANCEMENT BONUS

ON PACESETTER 2X BONUS

TIME FRAME (MONTHS)

Director RM300/S$150 RM600/S$300 2

Director 2 RM600/S$300 RM1,200/S$600 3

Director 3 RM1,500/S$750 RM3,000/S$1,500 4

Director 4 RM1,500/S$750 RM3,000/S$1,500 5

Director 5 RM1,500/S$750 RM3,000/S$1,500 6

Director 6 RM2,000/S$900 RM4,000/S$1,800 7

Director 7 RM2,500/S$1,050 RM5,000/S$2,100 8

Director 8 RM3,000/S$1,300 RM6,000/S$2,600 9

Director 9 RM4,000/S$1,600 RM8,000/S$3,200 10

Senior Director RM8,000/S$3,600 RM16,000/S$7,200 11–12

RM24,900/S$11,150 RM49,800/S$22,300

As you enroll more customers and help some of them do the same, your business grows. When you grow a little faster, the bonuses double!


How Do I Build a Contact List?First, you write down everyone you know. And we mean everyone. Think about the people you see when you go about your daily routine. Who are your friends on Facebook? Who do you talk to at the gym? Don’t leave someone off just because you think they won’t be interested. Avoid the temptation to prejudge. Use the memory jogger on the following pages to help you. Social media is an excellent source to help you build your contact list. Hopefully you’ve already added all the people that you’re friends with on social media to your contact list. But what about all the suggested contacts? Facebook, LinkedIn, Twitter, and many other social programs provide suggested contacts. These are often people you already know or people with whom you share a common connection. Use these resources to reach out and get to know someone new or reconnect with an old acquaintance.

The goal isn’t to approach over social media, but to simply begin building a relationship. When you first meet or reconnect with someone, the focus should be on them and their lives. Ask about their family, what they do for work, their hobbies, and what goals they are trying to achieve. As you follow up and learn more about their lives, you will learn how Melaleuca’s products and business opportunity can help meet their needs. Your purpose is to assist them. Set a goal to add names to your contact list each day.

What Is a Contact List?At it’s most basic, a contact list is simply a list of people you know. You don’t need to be highly successful or wildly popular to have a contact list. Between your friends, family, neighbors, classmates, business associates, and the people you interact with on a daily basis, chances are you could quickly list at least 100 people.

Why Do I Need a Contact List?Think of your Melaleuca business as a vehicle you’re trying to drive from point A to point B. But before you can even get out of the driveway, you first have to fill your vehicle with fuel. Your contact list is the fuel you use to power your business. As you enroll customers from your contact list and earn commissions from their purchases, you move your business

forward. Then you have to refill your tank with new contacts and potential customers, otherwise your business will come to a standstill. There’s a reason Melaleuca encourages you to build a contact list rather than just approaching random people on the street. People do business with and refer friends to people they know, like, and trust. It’s natural for you to tell a friend about a great new restaurant or a laundry detergent that saved your favorite shirt. We trust our friends’ opinions. We know they understand our needs and goals. Your warm market (or the people you know) is like premium fuel for your business. They are always going to be more receptive to hearing about Melaleuca, simply because they know you and value your opinion.

YOUR CRITICAL BUSINESS-BUILDING ACTIVITIES.As you enroll new customers, some activities are more critical to success than others. Focus your time and energy on what has been proven to work.

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It’s estimated that the average person has met ten thousand people by the time they reach middle age. Chances are you know more people than you think. Using the memory jogger on the next page, make a list of people you associate with in various settings and who have various interests. They don’t have to be close friends. Some may be acquaintances or people you only know by sight. It’s okay to include them now and get to know them over time. Just try not to repeat

any names. And remember, you’re just making a list of people you know, so resist the urge to prejudge or leave anyone off. Hopefully these ideas get you thinking of all the people you know and interact with on a daily basis. These people are your contact list. Make a goal to add names to your contact list every day.

WHO DO YOU KNOW WHO...?

gym

CONTACT SUGGESTIONLIST AND CATEGORIESThere are more people in your circle of influence than you might think. Use the list above to jog your memory for more possible contacts.

FAMILY, FRIENDS & NEIGHBORS

1. Parents, siblings, etc.2. Friends3. Cousins, uncles,

aunts4. Neighbors5. Car pool6. Child’s friends’

parents7. Friends’ parents8. Spouse’s best friend9. Babysitters

10. In-laws11. High school friends12. College roommates

SCHOOL/ EXTRACURRICULAR ACTIVITIES13. Teachers14. Principal15. Guidance counselors16. Coaches17. Music teachers18. Dance teachers19. Tutors

SHOPPING/STORES20. Grocery21. Convenience22. Department23. Hardware24. Auto supply25. Electronics26. Tires27. Office supplies28. Health food shop

owner or employees

WORKERS29. Truck drivers30. Cab drivers31. Bus drivers32. Bakers33. Car salespeople34. Hostesses/hosts35. Servers36. Chefs37. Cashiers38. Dishwashers39. Office supply

salespeople40. Department store

salespeople41. Appliance repairmen42. Flight attendants43. Travel agents44. Locksmiths45. Painters46. Roofers47. Landscapers48. Decorators49. Inspectors50. Carpet layers51. Electricians52. Contractors53. Carpenters54. Upholsterers55. Cabinet makers56. Plumbers

CHURCH & VOLUNTEER57. Minister58. Sunday school

teacher 59. Youth director60. Church members

PROFESSIONAL61. Work colleagues62. Administrative

assistants63. Union members64. Engineers65. Realtors66. Lawyers67. Professors68. Architects69. Veterinarians70. Writers71. Publishers72. Social workers73. Printers74. Surveyors75. Bank tellers76. Accountants

SERVICES77. Caterers78. Couriers79. Barbers80. Hairstylists81. Postal workers82. Repairmen83. Cable TV installers84. Auto mechanics85. Auto body

repairmen86. Photographers87. Satellite TV installers88. Salespeople89. Parking attendants90. Dry cleaners91. Flower shop

employees

MEDICAL/HEALTH92. Nurses93. Dentists94. Doctors95. Chiropractors96. Pharmacists97. Therapists98. Health Spas99. Opticians100. Orthodontists

COMMUNITY101. Police officers102. Chamber of

commerce103. Firefighters104. Alumni association

workers

SPORTS/CLUBS105. Kiwanis club106. Lions club107. Rotarians108. Bowling team109. Hunting partners110. Tennis partners111. Ski lift riders112. Golf pros113. Bridge club114. Swim teammates115. Jogging partners116. Scrapbooking friends117. Cycling group118. Weightlifting

partners119. Fitness instructors

is hoping to retire soon

is looking for an extra source of income

came (or will come) to your wedding

goes to the same grocery store, hair salon, bank, or other places you visit regularly

has children at your child’s school or on the same athletic team

has young kids

likes coffee

likes to work out

sports

social networks

work

wedding

is trying to improve their health and fitness

was in your graduating class

Memory Jogger


SAMPLE APPROACHES

“I’m a Marketing Executive here in the Denver area for The

Wellness company and we specialize in helping people get

out of debt by substantially increasing their monthly income

with five to ten hours of effort a week. I love what I do. I’d love

to tell you about it sometime.”

—NATIONAL DIRECTOR 9 BROOKE PAULIN

“I’ve partnered with an international wellness company, and

I’m not sure if you’d open to hearing about it, but I think it

would be a great complement to what you’re already doing.

Would you be open to hearing some information about it?”

—EXECUTIVE DIRECTOR 8 COREY KELLER

“You mentioned that you’re keen to explore new

opportunities. My wife & I have 2 businesses and are

constantly looking for open-minded people like you to share

business ideas that totally make sense. I’d love to show you

what we are doing.”

—EXECUTIVE DIRECTOR 3 IAN TOMY CHEE

Health-Focused Approaches“I don’t know if you know, but I’ve partnered with

a company that specializes in helping people get

the chemical irritants out of their homes. I think our

company could really help your whole family. Would

you be open to sitting down with me and having me

share the benefits of our products? What might be a

good time to connect for about an hour? I can come to

your house or you can come on over to mine.”

—CORPORATE DIRECTOR 4 MICHELLE SMITH

“Hi Mary, the other day you mentioned that your

son suffers from eczema. I work for an eco-friendly

manufacturer that specializes in helping people with

eczema. We also have an entire range of products that

have helped many families live healthier lives. I’d love to

share the benefits of the products with you. Let’s meet

up tomorrow night or Saturday afternoon. Which one

works better for you?”

—EXECUTIVE DIRECTOR 2 JOANNE KHOO

General Approaches“I hear that you are looking for an additional income

stream. I have a business that my wife and I started a

few years ago that pays us as well as my professional

job does. Would you be open to hearing an overview

about it to see how it can benefit you?”

—EXECUTIVE DIRECTOR 6

CAPTAIN CHANDRA MOHAN

“Have you heard of Melaleuca.com? No? It’s a fabulous

online shopping club that offers exclusive wellness

products shipped to your door at huge savings. I’ve

been a member for years and wouldn’t live without it!

Only members can refer members, so why don’t we

grab a coffee and I’ll show it to you.”

—EXECUTIVE DIRECTOR 4 SANDI SULLIVAN

Corporate Director 3 Mark Atha says that before he makes appointment-setting calls, he does a quick exercise to get into the right mindset.

Your purpose is simply to set an appointment—nothing more and nothing less. Keep your call quick and casual: “Hey, can I have 45 minutes of your time so I can show you what I’m doing? Do you have time tomorrow at lunch or would Thursday night be better?” When you make an invitation, you’ve just aroused their curiosity, but you don’t want to get stuck trying to explain everything about Melaleuca over the phone. So instead, immediately shift the focus over to when they can meet: “I don’t have time to talk about it right now, but I’ll tell you all about it when we get together. What time will work for you?”

CRITICAL BUSINESS- BUILDING ACTIVITIES

“Before I make a call, I remind myself that this person is already some other company’s customer, so I’m really not imposing on them or asking them to buy something they don’t currently buy elsewhere. In other words, they really need Melaleuca products and, in many cases, a Melaleuca business as well. In fact, they’ll be healthier with our products and better off financially should they build a business. Then I tell myself that if I don’t talk to them first, someone else will.”

Becoming a pro at setting appointments takes practice, but you don’t have to practice alone. You can get the tips and coaching you need by teaming up with your enroller and your support team. And check out Malaysia.Melaleuca.com/BusinessCenter/Content/getting-started OR SG.Melaleuca.com/BusinessCenter/Content/getting-started for specific training on making approaches.

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“What Melaleuca: An Overview does is instill belief in a brand-new business builder. They believe they can do it, and because they believe they can, they can. There are a lot of people who love what they see and leave the room saying, ‘Well, I can do that.’”

— John Dufner, Corporate Director 3

Start by Teaming UpWhen you first begin building your Melaleuca business, giving Overviews will be a somewhat unfamiliar experience. That’s perfectly all right. Your enroller and members of your support team will be there to help and to give Overviews for you until you’re ready. We strongly recommend that you begin by watching them give Overviews to your customers. Once you see them do it a few times, you’ll become more comfortable with the process and can take over as the presenter—usually about the time you advance to Director 3.

Know Your AudienceAs you begin your presentation, try to learn as much as you can about your audience. Ask questions about the following topics: • What do they do for a living? • Do they like their current job? • Are they satisfied with their income?

• Have they ever tried a home-based business before?

• Are they married? • Do they have children? • What do they do for fun? • Would RM500/S$150 per month help them

in a significant way? • Does more time with their family mean

anything to them? • Are they concerned about their finances?

Use the answers you get from these questions to show each new customer how a Melaleuca business can help them achieve what they really want in life.

Confirm AttendanceThe day before the Melaleuca: An Overview presentation, call those you have invited to confirm the time and location. You’re actually confirming their attendance, so call to confirm—not question—attendance.

Share the Complete Melaleuca: An Overview PresentationRegardless of whether you anticipate that your customer will become a business builder, share the business portion of Melaleuca: An Overview in every presentation. Often, the only reason some individuals don’t build a Melaleuca business is because they don’t know the opportunity exists. Just as the business is important to share, every other element of Melaleuca: An Overview serves a purpose for your prospective customers.

A Format for Every SituationMelaleuca: An Overview is available in the following media formats, giving you the option to choose what will work best for you and your audience: • The online version at Malaysia.Melaleuca.com or

SG.Melaleuca.com • The booklet is available to purchase and is perfect

for one-on-ones, and you should always keep it on hand as a backup.

Successful Melaleuca business builders use Melaleuca: An Overview because it’s simple and can be easily duplicated.

Remember, what you do duplicates. If you use only a portion of the Melaleuca Overview or your own version of it, your team will not be able to duplicate it. So do what you would like your new Marketing Executives to do. This is an important and powerful principle. The most successful Melaleuca organizations always present Melaleuca: An Overview the same way every time. Why? Because they know others will follow their examples.

SHARE MELALEUCA: AN OVERVIEW

CRITICAL BUSINESS-BUILDING ACTIVITIES

3


IT’S ALL ABOUT TIMINGWhen should you schedule the Strategy Session? As soon as you can. The longest you should wait is 48 hours after the Melaleuca Overview, especially when your new enrollee told you they’re excited about Melaleuca and want to build a business. A timely Strategy Session is the perfect way to take advantage of that excitement and convert it into action.

Going through the Melaleuca catalog or product price list, help your new customer pick out the first products they would like to try. Call Melaleuca at 1-800-183-183 (Malaysia) 1-800-800-8080 (Singapore) or go to Malaysia.Melaleuca.com (Malaysia) or SG.Melaleuca.com (Singapore) to help them start shopping right away. You can show them how easy it is and speed up the process of their shopping experience. Another best practice at Melaleuca is to have a Value or Home Conversion Pack on hand at the time of enrollment so your new customer can take advantage of the additional 30+% savings.

HELP YOUR CUSTOMER START SHOPPING

After sharing Melaleuca: An Overview, your potential customer will be wondering what to do next. This is when you ask which type of customer they’d like to be.

SUPPLEMENTAL INCOME

Earn a few hundred to a few thousand Ringgit/SG Dollars

per month

PREFERRED CUSTOMER

Shop and save: 30% to 50% discount

SIGNIFICANT INCOME

Earn several thousand Ringgit/SG Dollars per month

THE FUN PART:SETTING UP ACCOUNTS


Gain Commitment by Asking the Customer to Choose a Category As you come to the close of the Melaleuca: An Overview presentation, introduce and explain the three categories of participation and ask your attendees which category they fit into: Preferred Customer, supplemental income, or significant income.

During the Melaleuca: An Overview presentation, you will discuss how some customers choose to be Preferred Customers while others choose to take advantage of our unique business opportunity—in addition to purchasing our products. Determining which category your new enrollee belongs in will also determine your next step.

STRATEGY SESSION

A Strategy Session is when you follow up with your new customer to answer questions, determine the next steps, and schedule action. The decisions your new enrollee makes will determine your next steps. At the end of your Overview, be sure to schedule a Strategy Session within 48 hours if at all possible. During the Strategy Session, if they chose Category 1 (Preferred Customer), you’ll want to: • Help them place their first order and answer any

questions they may have. • After two weeks, follow up with them. What questions

do they have? Which product is their favorite so far?

If they tell you they want to earn supplemental or significant income and are willing to commit to working five or more hours each week, they belong in Category 2 or Category 3. • During the Strategy Session, you’ll want to share the

importance of getting started with either a Home Conversion Pack or Value Pack.

4

One of the best activities guaranteed to bring results is holding a Strategy Session within 48 hours. This activity is proven to create quality enrollments and sustained growth. Businesses that consistently hold Strategy Sessions have higher average commissions, higher average growth rates, and lower attrition.



Help Them Identify Their “Why”Help your new enrollee reconnect with why they are building a Melaleuca business. As with any new endeavor, when they remain focused on the end outcome, they can step outside their comfort zone and see past temporary challenges. Perhaps they want to get out of debt, be home with their children, prepare for retirement, or improve their quality of life. You may ask them, “What amount of monthly income would allow you to reach this goal?” That way, they are clear about their end goal. Leverage the Power of PacesetterCommit them to the Pacesetter Program. Pacesetter is a set time frame with incentives and deadlines for performance. A goal without a deadline is only a wish. Help them see that if they stay on Pacesetter schedule, they can earn double the one-time advancement bonuses.

Identify the Contacts to Approach FirstReview their contact list and identify the key people with whom they will team up. This is the time for you to set clear expectations for the first step in their Melaleuca business. One clear expectation is to personally refer 20 customers in their first few months. Another is to identify two of those customers to team up with and build a business. Remember—the expectations set will be the expectations met. As you review the contact list, ask them, “Who are the people on this list who are most likely to team up with you and build a business? Who needs a plan B or a little extra income? Who is hardworking?” Questions like these will help them evaluate key members of their team who may want to build a business. Once you have identified two or three people, discuss how you might team up to approach them and do an Overview with each as soon as possible. If your new enrollee has others working alongside them, they are more apt to be successful. In any worthy goal, teaming up is a key to success. If your new enrollee personally refers 20 customers and helps two others get to Director by doing the same, your enrollee will likely be a Director 3 in the first 90 days. That’s the right way to get started!

Schedule ActionThe next step is to create your calendar for the first few weeks. Identify the days and times when you will team up to hold Melaleuca Overviews. Schedule time for follow-up. Schedule the dates and times of Melaleuca meetings and leadership celebrations. Let’s say your enrollee has a goal to personally refer 10 customers in the first two weeks. That means you’ll set five to six Overview times. Once those Overviews are on the calendar, your enrollee can approach more confidently: “On Thursday, I’m having an Overview at 1 p.m. Why don’t we get together then?” If the Overviews are on the calendar, your enrollee is more likely to get to work quickly on inviting people to attend. Set AppointmentsPractice approaches and setting appointments. Some people have never set an appointment. They need coaching. They need you to demonstrate how to set an appointment. Remember EDPE. E stands for explain, D for demonstrate, P for practice, and E for evaluate. Be sure to use all four tools when helping others make appointments. Imagine how encouraged your new enrollee will be if they leave the Strategy Session with three or four appointments scheduled. They will have confidence they can build the business and will look forward to the scheduled Overviews. Without Overviews scheduled, they may not follow through once other pressing priorities in life arise. Commit to Scheduled Times and Ways to CommunicateEstablish clear times to communicate and report back. You will likely be talking on the phone several times a day as you begin. In the Strategy Session, you can talk about the best times and method for touching base.

When a Category 2 or 3 enrollee agrees to work five or more hours each week, and to have their contact list ready, that’s a clear indication that they are willing to put forth the effort to build a Melaleuca business. To get these folks off to the right start, follow these simple steps for your Strategy Session:

1

2

3

6

4

5

GET PLUGGED IN.Attending all company meetings and events is key to your success. You’ll meet other team members, set goals, and schedule action.

JANUARY LAUNCH Start the year off on a high note, with an engaging combination of live and video presentations. It’s the perfect venue to invite a friend and share the benefits of Melaleuca. If you want to take your Melaleuca business to the next level and get the year going on the right path, you should not miss out to attend this event.

ROAD TO SENIOR DIRECTOR Twice a year, Directors gather for two days to receive training from Melaleuca’s management team and successful Marketing Executives and also meet and mingle with other businesses. When you’re here, you’ll get all the tools you need to grow your business, celebrate your success and build lifelong relationships.

CONVENTION Nothing fuels momentum for your team and business like Convention. Each day is packed with hands-on business training, new product announcements, powerful speakers, and up-close moments with Melaleuca’s most successful leaders. Leave prepared to advance your business to the next level.

STANDING SLC Once a year, Senior, Executive, and National Directors gather at destination resorts for insightful business training, indepth discussions, and fun group activities as part of Melaleuca’s Standing Senior Leadership Conference (SSLC).

LEADERSHIP SUMMIT This is an incredible event that you and your team can’t afford not to go. It features training from some of Melaleuca’s most successful leaders. You’ll also get a chance to shine in the spotlight and celebrate the accomplishments of your team.

“ There is no better place than Melaleuca events to be empowered with the belief, posture, knowledge and skills that will help you reach your goals. They are where life-changing decisions are made and in today’s digital world, being in the presence of like-minded Marketing Executives and establishing strong in-person connections will move you forward with incredible energy!” —Chew Ai-Leen, General Manager Of Melaleuca Malaysia

In addition to your own team meetings, Melaleuca publishes other meetings and events happening in your area and around the country on our website.

Go to Malaysia.Melaleuca.com or SG.Melaleuca.com for our calendar of events.


Celebrating success is a way to inspire people to set goals and achieve more than they ever thought possible. The mission of Melaleuca is to help people reach their goals. To inspire and motivate people to that end, you must celebrate their accomplishments. Melaleuca thrives on celebration! From the smallest of achievements to the largest ones, from enrolling one customer to achieving Corporate Director, leaders need to feel good about what they’re doing. When that happens, motivation increases, excitement grows, and abilities expand.

CELEBRATE SUCCESS

Make Your Celebration Effective

How you celebrate should be wholly determined by who it is you’re celebrating. It takes only a few minutes to figure out what people like, what parts of the business they may struggle with, and where they need encouragement. Once you’ve done that, celebrate with them in a serious manner. Tell them what they did that was successful. Be specific. Tell others about the hard work you’ve witnessed. Let them know that you noticed their efforts. Your words and encouragement will likely mean more than any reward you can come up with. Attach a suitable reward on top of that and you’ll create a moment in that person’s life they will treasure for a long time.

Leadership Celebration Meetings

The Leadership Celebration is an opportunity to celebrate local leaders’ achievements and the achievements of your team. It’s a time to schedule action to move your business forward and help you reach your goals. And it’s a chance to receive training from some of Melaleuca’s best.

Recognition Is a Proven Motivator

We all love to be recognized for our accomplishments. Whether it’s a pat on the back, a high five, or a note saying “Job well done,” all forms of recognition create positive reinforcement. Often, when someone else notices what we’ve done, we’re more likely to keep striving and pushing harder than ever. Rewards—whether material or emotional—promote hope and belief, and make all the hard work worthwhile.

Sharing Success Builds Team Loyalty

As a business builder, your goal is to build a cohesive team. A big part of that process is celebrating your team’s success. Through celebration, you experience a strengthening of relationships, you feed off one another’s energy, and you create a synergy that helps each of you work more effectively together than you would alone.

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Time: The Fast Track is designed to run during the calendar month and should be scheduled on the same day and at the same time each week (always start on time). Consistency is vital to success.

Who: Include committed Marketing Executives who work closely with one another in their businesses (e.g. your personally enrolled customers).

Leaders: As a general guideline, team leaders should be Directors 3 or above, as they need to have experience at personally enrolling customers and developing Directors. These leaders should also be organized, accountable, and willing to put in extra energy and effort to keep the team focused on goals.

Teams: Teams usually consist of 8–10 members. There is no limit to the number of teams, as long as you can manage the group size.

Product Experiences: You should start every meeting with a positive product experience.

Goals: Goals should be set the first week and revised or added to each of the following weeks.

Action Plans: After participants set goals, they should put an action plan into place to help reach those goals.

Celebration: Personal accountability and reporting happen on a weekly basis. The facilitator establishes a recognition system and rewards everyone’s accomplishments. Celebration of success is a key part of each weekly meeting.

Participation: Once the last week is concluded, participants should be encouraged to attend the next Fast Track.

Fees: You may need to charge a fee for participation. This money helps provide recognition prizes and offsets any other related costs. These fees should not exceed RM50/S$30 per business.

1. Assess the business and set goals. Fast Track participants determine where they would like to be by the end of the Fast Track period. Specific goals include number of enrollments, status achieved, number of Home Conversion and Value Packs sold, number of appointments set, and in-home presentations.

2. Create an action plan. Each participant—with the help of the team leader—creates a detailed action plan for how they are going to achieve their goals. Using a calendar, they determine what days and times they are going to set appointments, share Melaleuca: An Overview, report to their team leader, and more.

3. Implement the plan. After the Fast Track meeting, the participants follow through on their action plan, tallying their results and reporting to their team leader on schedule.

4. Report and celebrate success. Meeting together as a team each day to report, celebrate, and plan can drastically impact business results. Most often, the results involve enrolling customers and developing new Directors.

5. Train and develop leaders. Take 10–15 minutes of each Fast Track meeting to conduct training on the Seven Critical Business-Building Activities. When conducting your training, remember to briefly explain, demonstrate, practice, and evaluate.

FIVE ESSENTIAL ACTIVITIES MAKE UP THE CORE OF EVERY FAST TRACK EVENT

A Melaleuca Fast Track is a results-driven program designed to help your organization grow. A series of meetings lasting four weeks, Fast Track helps partici-pants set goals, create action plans, implement those plans, report results, and celebrate success. Team leaders provide motivation, support, and training, and facilitators organize the schedule and the recognition awards.

ALWAYS BE INVOLVED WITH FAST TRACK

“ Fast Track helps you stay focused week after week. If you ask our leaders about the ‘secret’ to their success, many will tell you that the answer is Fast Track—not only for themselves, but for their entire organization. No one works harder than these leaders.”

—Melaleuca CEO Frank L. VanderSloot

6THE BASICS OF A SUCCESSFULFAST TRACK


According to actor Will Rogers, “People’s minds are changed through observation and not through argument.” As you go forward in all your Melaleuca activities, remember that your team members are watching you. Set a good example!

How Do You Convert Your Own Home? It’s Simple.

Dispose of all the products you currently use.

Replace those products with Melaleuca products, and let others know you only use safe and effective products in your home now.

LEAD BY EXAMPLE

Melaleuca business leaders lead by example because they know their actions are usually duplicated by those in their organizations. Are they professional, product-centered, and positive? If so, others will duplicate their actions. Are they disorganized, demanding, and late to meetings? If so, others will observe and duplicate those actions as well.

As a Melaleuca leader, you should set the example by attending Convention and all other Melaleuca meetings. Not only do these meetings offer you inspiration, ideas, and the training you need to grow your Melaleuca business, but they also give you the opportunity to develop a reputation as a supportive, involved Melaleuca leader whom others will want to emulate.

Your first two months as a Melaleuca Marketing Executive are critical. You get only one chance to create the beginning of your story—so make it as great as you can! Later, when you’re referring new customers and trying to encourage them to build quickly, they’ll want to know how you did it.

You’ll be telling your “getting started” story over and over again, so it’s important to set your sights on reaching Director in your first month and Director 3 in 90 days.

Convert Your Home to Melaleuca Products and Services

What would you think if the CEO of Ford Motor Company drove a Toyota? If your favorite Mexican restaurant cook chose Taco Bell for lunch? Wouldn’t you have a difficult time purchasing the products they represent? After joining Melaleuca, immediately convert your home to Melaleuca products and services. Learn everything you can about them, gain your own product experiences, and get in the habit of consistently sharing product and service information with others. The people in your organization will follow your example and convert their own homes, spreading a powerful belief in the products and the services and building a strong business foundation.

BUSINESS DEVELOPMENT TEAM

YOUR SUPPORTTEAM

COACHING & LEADER DEVELOPMENTTEAM / SALES TEAM

YOUReach us Monday–Saturday, 10 a.m. to 7 p.m.

1-800-828-323 (Malaysia)

1-800-800-8080 (Singapore)

Whenever you have a specific business-related question—whether it’s a question on paperwork you submitted or understanding how to read your Business Report, we’re here when you need us!

MELALEUCA: TEAMING UP LIKE NO OTHER COMPANYNobody succeeds alone. That’s why—in addition to your support team—Melaleuca provides you with a dedicated Business Development team to answer all your specific questions. But we don’t stop there. As you lead your organization, especially in the beginning, you’ll need personal guidance and professional development.

So to help you advance your business, we have a highly trained group of leadership coaches who are excited about getting to know and serve you. Discover how you can begin earning commissions and bonuses by referring others to shop at Melaleuca. It’s simple, fun, and lucrative! See A Marketing Revolution! The Melaleuca Compensation Plan for complete details.

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APPENDIX

FREQUENTLY ASKED QUESTIONS

Melaleuca’s Business Development Department has compiled answers to the questions most frequently asked by customers. Talk to your enroller or call Business Development at 1-800-828-323 (Malaysia) 1-800-800-8080 (Singapore) for answers to other questions you may have.

Enrolling a Preferred CustomerHow do I enroll a new customer?Fill out the Customer Membership Agreement completely, including correct numbers, shipping and mailing addresses, and phone numbers. Include account information and the required signatures, then mail the completed paperwork to Melaleuca. You can also enroll customers online at Malaysia.Melaleuca.com (Malaysia) or SG.Melaleuca.com (Singapore).

What is the best way to confirm my customer’s paperwork has been received?Email the completed paperwork to [email protected] (Malaysia) or [email protected] (Singapore).

Is it possible for someone else to be set up on my credit/debit card or GIRO (Singapore only) as a Preferred Customer?No. Each customer or Marketing Executive must have an account of which he or she is the owner and is authorized to withdraw funds. Using your own GIRO (Singapore only), or credit/debit card to enroll someone may be cause for termination.

If I do not have a credit/debit card or GIRO (Singapore only), can I enroll as a Preferred Customer?No. Either a credit/debit card or GIRO (Singapore only) is necessary.

I want my new customers to receive the Preferred Customer discount. Can they shop if their paperwork has not yet been received by Melaleuca?They can place an order with a credit/debit card or a checking account before their paperwork is received. We give all customers the Preferred Customer price on their first order.

Do I need to pay a Customer Membership Fee?Yes. The Membership Fee is the key that unlocks your Melaleuca Membership and enables you to save 30%–50% off regular price and enjoy many other benefits of membership.

Building Your OrganizationHow do I place new Personal Customers in my organization?You are allowed to “manage” five customers or Marketing Executives on your first generation. You can place customers in those positions or in the organizations of customers in your organization. We do not tell you how to structure your organization; we recommend discussing all business-building strategies with your Enroller and support team.

Who is my Marketing Executive?The first person in your support team. Your Marketing Executive and your enroller are your primary resources in building your business.

Whom do I put down as “Enroller” on the Customer Membership Agreement?The Enroller must be the person who introduced the new Customer to Melaleuca and helped him/her become a Customer or who played an active role in the presentation of Melaleuca products or business opportunity to the new Customer.

May I have an interest in more than one Melaleuca business?No. You may only have ownership or ownership affiliation in one independent Melaleuca business.

Changes in Your BusinessHow do I change my Preferred Customer information on my Customer Membership Agreement form?Simply call Business Development at at 1-800-828-323 (Malaysia) or 1800-800-8080 (Singapore). Some items do require the submission of a new Customer Membership Agreement form. A Business Development Specialist can give you more details at the time of your call.

Can I “move” a new personal enrollee?Yes. An enroller can move a personal enrollee to a different position within the month of enrollment by going online to Malaysia.Melaleuca.com (Malaysia) or SG.Melaleuca.com (Singapore) and clicking on the New Enrollee Change (NEC) tool. This online tool will allow enrollers to move a customer during the customer’s month of enrollment. An Enroller can also move a personal enrollee within his/her business organization up to two months following the month of enrollment but the New Enrollee Change (NEC) Tool is available only for movements within the month of enrollment. After the month of enrollment, customers can only be moved one time. Each business or customer below the customer or Marketing Executive being moved will follow the enrollee. The requested move is limited to 20 customers. There is a RM20/S$15 fee for each customer or Marketing Executive moved in the organization.

May I move someone within my organization?Melaleuca discourages organization changes. Melaleuca will review organization change requests with written consent of all seven support team customers above the customer or Marketing Executive who would like to be moved. An Organization Change Form with original signatures is required. Both the person being moved and the Enroller need to sign the form. There is a fee of S$70/RM100 for the original move and S$20/RM20 or RM40 for any related moves. An Organization Change Form must be completed for each person being moved. To have changes done for S$70/RM100, all related forms must arrive together. We suggest you work closely with your enroller and/or support team when undertaking this type of request for change. (See Statement of Policies, #19, “Transfer from Original Organization.”)

What happens to the structure of my organization if a customer is not active?A customer is “inactive” if they did not purchase a minimum of 35 Product Points. If a customer goes inactive for two consecutive months, they automatically lose their position in the organization. (See Statement of Policies online, #39, “Roll-Up Policy.”)

APPENDIX

A Marketing Executive in my organization has not personally produced the required Product Points for the past two months. Is there any way to keep him from losing his marketing organization?Two months without producing their Product Point minimum means automatic loss of their marketing organization.

What will happen to a customer who was inactive for two consecutive months and places an order for 35 Product Points in the third month?Because they purchased in the third month, they will reactivate back into the original organization in the first available position under their original Enroller.

Someone in my organization discontinued their Preferred Membership. Can they still purchase products?They can still purchase directly from the company as a Direct Customer and have their products delivered to them. Direct Customers pay the regular price instead of the 30%–50% discounted Preferred Customer price. Direct Customers will not maintain an organizational spot in your marketing organization unless they produce the minimum Product Point requirement.

Is my Melaleuca business inheritable?Yes, you can will your business (see Policy #17). These transfers must be approved by Melaleuca.

Monthly Business ReportsFor what time period are commission and bonus payment paid?Commissions and bonuses are calculated on product sales from the first through the last day of each calendar month.

Who receives a Monthly Business Report?All Marketing Executives who have submitted an Independent Marketing Executive Agreement and have earned a commission and bonus check pursuant to A Marketing Revolution! The Melaleuca Compensation Plan will receive a Monthly Business Report Summary and access to a complete online report that details the activity within their organization. This is an extremely valuable document for building and reviewing business activity.

When can I view my Monthly Business Report?Monthly Business Reports are available to view online at Malaysia.Melaleuca.com or SG.Melaleuca.com on the 15th of each month.

Will I receive a Monthly Business Report every month?If you do not earn a commission in a given month, you will not receive a report.


APPENDIX

MELALEUCA: A DIFFERENT KIND OF COMPANY

MLMs often require or encourage “business builders” to “invest” in substantial amounts of inventory each month to qualify for bonuses.

MLMs often sell products no one really uses—like cases of magical fruit juice, magnets, or green algae—causing increased strains on family budgets.

MLMs often back up phenomenal product claims with folklore and testimonials rather than science and laboratory studies.

MLMs often require their distributors to resell products to their customers.

MLMs usually charge several times what the product is actually worth, such as $40 for a bottle of juice that you would pay less than $5 for at the store.

MLM distributors usually tout big checks to entice others to get involved. Rarely will an MLM reveal what its distributors actually make. Most MLMs will also never reveal their actual annual sales.

With Melaleuca there is no “investment.” Melaleuca’s customers purchase only what they will use up on a monthly basis.

Melaleuca markets products already used in households on a daily basis—except that Melaleuca’s products are higher quality, more effective, and often safer to use than grocery store or drugstore brands. This means it doesn’t cost anything more to be a Melaleuca customer than it does to shop at a grocery store.

Melaleuca’s products and product claims are backed by science, with scientific studies comparing Melaleuca’s brands with its competitors.

Melaleuca does not require any of its products to be resold to someone else. In fact, policy prohibits reselling. Everyone purchases directly from the company.

Melaleuca offers “exceptional products at reasonable prices.” That means that Melaleuca’s products are competitively priced with grocery store brands on a per-use basis, even though they are usually substantially higher quality than those brands.

Each year, Melaleuca publishes how much all Marketing Executives make at which status, complete with the high, the low, and the average in each status. We’ve been doing it for years! Such a policy would easily expose most MLMs!

UNHEALTHY MLM PRACTICES

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APPENDIX

MLMs often operate a “volume line” that a distributor can use to call the company before midnight on the last day of the month to determine how close the distributor is to reaching a particular “volume” qualification. This incentivizes a distributor to make an even greater “investment” in inventory.

Many MLMs often suggest that people “fake it till they make it” by appearing to be wealthy by driving fancy cars; purchasing expensive homes; buying motor homes, boats, and motorcycles; and by wearing fur coats, diamond rings, and expensive jewelry. This activity has driven thousands of multilevel marketing distributors into bankruptcy, destroyed lives, and even broken homes—all while giving a distorted impression of the company’s actual success.

Most MLMs do not have product return policies unless the distributor cancels their distributorship. Only then will a typical MLM honor the Direct Selling Association’s code of ethics, which requires such companies to purchase back 90% of a distributor’s resalable products.

The attrition rate of customers and distributors is extremely high in most MLMs.

With Melaleuca there is no “investment” to build a business. Melaleuca’s customers purchase only what they will use up on a monthly basis. Since customers purchase directly from the factory, Marketing Executives need to purchase absolutely no inventory. Therefore, this creates absolutely no risk of financial loss for Marketing Executives.

Melaleuca advocates that Marketing Executives keep their full-time job, become the best employee that they can be for their current employer, and use their Melaleuca income to add to their full-time income. Melaleuca counsels Marketing Executives to not consider leaving their full-time job until they are making several times their salary with their Melaleuca business. Melaleuca also advocates for them to stay out of debt, pay off their homes and cars, and live within their means.

Melaleuca gives an absolute, no-questions-asked, 100% customer satisfaction guarantee. Melaleuca will give your money back even if you have used up all of a product and decided you didn’t like it after you used it. Grocery stores don’t offer such a guarantee. And MLMs certainly don’t offer such a guarantee.

The retention rate of Melaleuca Customers is extremely high. Ninety-six percent of all Customers who ordered last month will order again next month.

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MLMs almost always tout a “ground floor opportunity,” implying major advantages if you hurry and get in on the “ground floor.”

Rather than deteriorating over time, a viable business opportunity gets better every year. As products improve through more scientific discoveries each year, it gets easier and easier to outdistance the competition.

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Statement of PoliciesCapitalized terms used in the Statement of Policies have the meanings set forth in the Definition of Terms.

1. Becoming a Preferred Member To become a Preferred Customer, a person must (a) sign and submit a Customer Membership Agreement as a Preferred Customer, (b) place an order for at least 35 Product Points, and (c) pay an annual membership fee.

Preferred Customers receive a number of additional benefits and may purchase products directly from Melaleuca at 30% to 50% below the regular price. In return for this added discount, Preferred Customers agree to purchase Melaleuca products totaling at least 35 Product Points each month.

Customers are not authorized to market or resell Melaleuca products. 2. Becoming a Marketing Executive To apply to become a Marketing Executive, a person must first (a) have an Enroller who has submitted an Independent Marketing Executive Agreement; (b) sign and submit an Independent Marketing Executive Agreement; and (c) purchase a Business Kit. Once those steps are completed, the applicant is authorized to introduce Melaleuca products and business opportunity and to enroll Customers and prospective Marketing Executives.

However, an applicant does not become a Marketing Executive until:(i) Melaleuca receives and accepts the applicant’s Independent Marketing Executive Agreement; (ii) the applicant has a Personal Enrollee who is an Active Customer; and (iii) the applicant receives his/her first commission. Marketing Executives may purchase products directly from Melaleuca as a Direct Customer. If a Marketing Executive at any point no longer has any Customers in his/her Marketing Organization, that Marketing Executive ceases to be a Marketing Executive and must requalify to become a Marketing Executive under the conditions mentioned above. Marketing Executives may be but are not required to be Direct Customers or Preferred Customers.

3. Individuals and Corporations Melaleuca will only consider for acceptance as Marketing Executives individuals or entities that fall into one of the following categories:

(a) Individuals who are of the legal age.

(b) Married couples of which at least one is of legal age.

(c) Corporations in good standing in the state, province, or country of their incorporation which have as their sole shareholder(s), director(s) and officer(s) either one unmarried individual or a married couple, which are established in accordance with Melaleuca guidelines. 4. Customer Numbers Customers and Marketing Executives may not use or submit to Melaleuca any government issued identification number other than the actual number assigned to the Customer or Marketing Executive by the proper government authority. 5. Proper Completion of Documents All agreements must be completely and properly filled out and signed; together with a photocopy of the Malaysia/Singapore National Registration Identity Card, or Malaysia/Singapore Permanent Resident Identity Card or any legal documents verified by Melaleuca to confirm residential status. No copies or alterations will be accepted. Melaleuca may require original signed versions of all agreements or request the re-execution of agreements upon reasonable notice.

Agreements will only be accepted by Melaleuca in their original unaltered form, regardless of passage of time or payment of commissions by Melaleuca.

Melaleuca will not be responsible for loss of commissions or bonuses or for delays in Customer or Marketing Executive registrations or orders due to: (a) errors by Customers or Marketing Executives in preparing or sending agreements, orders or other documents; (b) delays or errors caused by the mail, fax or electronic transmission; (c) nonreceipt of documents by Melaleuca; (d) illegible or incomplete information on agreements, orders or other documents; or (e) the inability of Customers or Marketing Executives to reach Melaleuca by telephone or fax during busy calling periods. Melaleuca will process and credit orders and enrollments in the calendar month in which they are received by Melaleuca.

6. Ordering All orders are credited to the calendar month in which they are received by Melaleuca. Orders may be placed by telephone, mail, fax or the internet and in person at Melaleuca stores. All telephone, fax or internet orders must be paid by Visa, MasterCard, DebitCard and Interbank GIRO (Singapore only). Orders by mail may be paid by Visa, MasterCard, DebitCard and Interbank Giro (Singapore only). When paying with a credit or debit card, the card number and expiration date must be included.

Orders for products will usually be processed by Melaleuca within 48 hours of receipt. Shipment will be by common carrier and delivery should be expected within three (3) to five (5) working days (for Singapore) and three (3) to seven (7) working days (for Malaysia). Orders placed during the last week of the month may be delayed due to the large volume of orders received at the end of the month. 7. Customer Satisfaction Guarantee If for any reason any Customer is not completely satisfied with any product purchased by such Customer from Melaleuca, the Customer may return the unused portion of the product together with a copy of the purchase receipt to Melaleuca within 60 days of the date of purchase and Melaleuca will (1) credit the Customer’s account for the total purchase price of the product (less shipping and handling charges), or (2) upon the Customer’s written request, replace the product without charge, or (3) upon the Customer’s written request, refund the total purchase price of the product (less shipping and handling charges). Refunds, when requested, will be issued to the original method of payment used to purchase the product unless that method of payment is unavailable in which case a refund check will be issued to the Customer. Unless the Customer requests otherwise, Melaleuca will credit the Customer’s Melaleuca account for the purchase price of the returned product. Credit on account is available for Melaleuca product purchases.

Melaleuca reserves the right to terminate the Independent Marketing Executive Agreement or cancel the Customer Membership Agreement of any Marketing Executive or Customer who abuses the Melaleuca Satisfaction Guarantee and return policy by excessively returning products.

8. Returns and Product Point Adjustments on Home Conversion/Value Pack Returns Individual products that are purchased as part of a Home Conversion, Value or other “special” packs which are priced below the Preferred Customer price, can be returned for an exchange but not for a refund unless the entire pack is returned.

Marketing Executives receive commissions based on actual sales by Melaleuca of product to End Consumers. When product is returned to Melaleuca, the commissions attributable to that product will be deducted from the commissions of the Customer’s Support Team in the month the return occurs. If the return occurs within 12 months of the purchase date, then commissions will be deducted from the commissions of the Customer’s Support Team in the month the return occurs. If the return occurs within 12 months of the purchase date, then commissions will be deducted from the commissions of the Support Team of the Marketing Organization that existed at the time of the purchase. Otherwise, commissions will be deducted from the commissions of the Support Team of the current Marketing Organization.

Melaleuca reserves the right to terminate the Independent Marketing Executive Agreement or cancel the Customer Membership Agreement of any Marketing Executive or Customer who abuses the Melaleuca Satisfaction Guarantee and return policy by excessively returning products. 9. Business Kit Refund When a Marketing Executive applicant enrolls and purchases a Business Kit, the Business Kit number will be registered at Melaleuca in the applicant’s name. If a Marketing Executive applicant cancels his/her Independent Marketing Executive Agreement and returns his/ her purchased Business Kit to Melaleuca within 6 months after the Marketing Executive applicant’s date of enrollment, Melaleuca will give such Marketing Executive applicant a full refund for the cost of the Business Kit. A refund will only be sent to the Marketing Executive applicant in whose name the Business Kit number is registered. This policy will apply whether the Marketing Executive applicant purchases the Business Kit directly from Melaleuca or from his/her Enroller.

A Marketing Executive who purchases Business Kit for resale to Marketing Executive applicants may return unsold kits to Melaleuca for a refund only if the Marketing Executive cancels his/her Independent Marketing Executive

Agreement and returns the Business Kit within 6 months after their date of purchase. Marketing Executives who purchase Business Kit for resale may assign such kits for up to one year from their date of purchase from Melaleuca. Melaleuca encourages Marketing Executives to keep such Business Kit updated until they are assigned. A Business Kit may only be assigned once. Melaleuca updates and revises Business Kit from time to time. Marketing Executives are encouraged to keep their Business Kit current by purchasing update packets or new Business Kit as they become available. Outdated or old Business Kit may not be exchanged for current Business Kit. 10. Election to Cancel Agreements A Marketing Executive may suspend/cancel his/her Independent Marketing Executive Agreement, and a Customer may suspend/cancel his/her Customer Membership Agreement, for any reason at any time by sending a completed Melaleuca Suspend My Preferred Customer Benefits Form to Melaleuca bearing his/her original signature, printed name, address, Customer Number and reason for canceling (to assist Melaleuca in improving its customer service). A Melaleuca suspension form will help insure the accurate information necessary to process the cancellation is submitted. If an individual or entity is a Preferred Customer and a Marketing Executive, the notice should specify which agreement(s) should be suspended. Suspensions received by Melaleuca on or before the 25th of the month will be effective the month received. Written suspensions received by Melaleuca after the 25th of the month will be effective the following month. Suspension notices must be mailed to:

Melaleuca Southeast Asia (Malaysia) Sdn Bhd Unit B-10-3A & 5, Level 10, Menara UOA Bangsar, No. 5, Jalan Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia (for Malaysia)

Melaleuca Southeast Asia (Singapore) Pte Ltd 150 Changi Road, #01-01 Guthrie Building, Singapore 419973 (for Singapore).

A Marketing Executive can also request the Melaleuca Suspend My Preferred Customer Benefits Form from his/her Web account. You may print and submit the aforementioned form as a valid document of membership suspension.

11. Cancellation Refund Policy There is no investment in product necessary to be a Marketing Executive. There is no requirement to purchase any product or service. No purchase is required to qualify for a bonus or commission. However, to the degree that any Customer is also a Marketing Executive and that Customer desires to return any product to Melaleuca for any reason, Melaleuca will repurchase all unencumbered products which are in resalable condition which were purchased by the Marketing Executive from Melaleuca within the previous 12 months, at ninety percent (90%) of the original cost to the Marketing Executive. All products or materials must be returned to Melaleuca with shipping prepaid by the Marketing Executive or Customer in order to receive the above refund. Melaleuca may charge back all commissions, bonuses and rebates paid by Melaleuca relating to any Customers returning product.

12. Resale of Products Melaleuca products are sold only by Melaleuca directly to End Consumers. In order to ensure the safety, freshness, efficacy and quality of Melaleuca products, Marketing Executives and Customers are strictly prohibited from directly or indirectly offering Melaleuca products for resale to anyone at any time. In particular, Marketing Executives and Customers may not offer Melaleuca products or materials for sale via the internet (including, but not limited to, Lazada, Carousell, Qoo10, Shopee, etc.).

This obligation continues indefinitely even after a Customer Membership Agreement or Independent Marketing Executive Agreement is no longer in force for any reason. Melaleuca shall have the right to prevent and/or recover damages for any violation of this obligation by legal action and, to the extent permitted by law, a Marketing Executive or Customer will be obligated to pay Melaleuca’s legal fees and costs in connection with any such legal action based upon his/her violation of this obligation. 13. Errors or Questions Marketing Executives should notify Melaleuca immediately of any errors or questions about commissions, bonuses, Monthly Business Reports, orders or charges. Melaleuca will correct any errors reported to it within 60 days, but Melaleuca will not be responsible for any errors, omissions or problems not reported within 60 days.


14. Joint Ownership of a Business An Independent Melaleuca Business may only be owned by an individual, a married couple, or by corporations that comply with Melaleuca guidelines. If a married couple who jointly own an Independent Melaleuca Business divorce, they may apply to have the Independent Melaleuca Business transferred to one of them as the sole owner. The divorced couple must submit to Melaleuca a written request specifying to which person the Independent Melaleuca Business will be transferred. The request must either contain the notarized signature of both parties or contain the notarized signature of at least one party and include a certified copy of the court-approved divorce decree or property settlement that designates to which party the Independent Melaleuca Business should be transferred.

Melaleuca shall not be obligated to transfer any Independent Melaleuca Business to any person who Melaleuca deems in its sole discretion is not qualified to operate and own such business. If the transfer is approved, the person to whom the Independent Melaleuca Business is being transferred must sign and submit to Melaleuca a new Independent Marketing Executive Agreement. 15. One Business per Person or Couple A Marketing Executive may not own, operate or have a financial interest in more than one Independent Melaleuca Business without Melaleuca’s express written approval.

With regard to Marketing Executives who are married couples and non-married cohabiting couples, or who jointly own an approved business as a corporate entity pursuant to Policy 3, both persons will be treated as a single Marketing Executive for purposes of Melaleuca’s policies. Therefore, for example, if one person owns an Independent Melaleuca Business, the other person may not own, operate or have a financial interest in a separate Independent Melaleuca Business. Additionally, if the couple jointly owns an Independent Melaleuca Business, neither person may own, operate or have a financial interest in a separate Independent Melaleuca Business. However, if two people who own separate Independent Melaleuca Businesses marry, they may, at Melaleuca’s sole discretion, each retain ownership of their businesses. Unless approved in writing in advance by Melaleuca, only one Independent Melaleuca Business is permitted in any Immediate Household.

16. Conduct of Household Members If any member of the Marketing Executive’s Immediate Household engages in any activity which, if performed by the Marketing Executive, would violate any Melaleuca policy or any provision of the Independent Marketing Executive Agreement, such activity will be deemed a violation by the Marketing Executive. 17. Inheritance of Business Upon the death of a person who is a Marketing Executive, or the death of any owner, manager or any other person with an interest in an Independent Melaleuca Business pursuant to Policy 3, an Independent Marketing Executive Agreement will automatically be canceled, unless the Independent Melaleuca Business is inherited in accordance with this Policy 17. An Independent Melaleuca Business may only be inherited by a single person, a married couple or a corporation which complies with Melaleuca’s guidelines, pursuant to a valid will or other appropriate document, or in accordance with the intestacy laws of the state, province, or country in which the Marketing Executive resides. A person who inherits an Independent Melaleuca Business must furnish Melaleuca with proper documentation that he/she is the beneficiary and is authorized to represent the estate. He/she must also execute an Independent Marketing Executive Agreement, fulfill all of the functions of a Marketing Executive and abide by the terms of Melaleuca’s Statement of Policies. 18. Sale or Transfer of Business A Marketing Executive cannot sell or transfer his/her Independent Melaleuca Business or his/her rights to compensation from Melaleuca (except for transfers by inheritance pursuant to Policy 17). 19. Transfer from Original Organization Marketing Executives and Customers may transfer from one Marketing Organization to another only upon fulfillment of all of the following requirements:

(a) The Marketing Executive or Customer seeking the organization change has submitted an Organization Change form with the original signatures of the Enroller and the other Support Team Marketing Executives in the immediate seven generations above the Marketing Executive or Customer being moved. All Support Team Marketing Executives who have earned 3 or more Leadership Points in the previous 6 months must sign off on the move.

(b) A Marketing Executive or Customer to be moved has no more than 10 Customers in his/her existing Marketing Organization and is not being moved to an open position above any other Marketing Executives or Customers.

(c) The Marketing Executive or Customer seeking the organization change has paid to Melaleuca the applicable fee charged by Melaleuca for organization changes.

(d) Melaleuca has approved the change in writing, which approval Melaleuca may withhold in its sole discretion. 20. Non-Solicitation and Conflicts of Interest Marketing Executives are independent contractors and may be active in other business ventures while they are Marketing Executives for Melaleuca. However, to qualify for compensation under Melaleuca’s Compensation Plan, Marketing Executives have the ongoing responsibility to service, supervise, motivate, train and assist other Marketing Executives in building their Marketing Organizations. They also have the responsibility to promote Melaleuca products and the Melaleuca income opportunity and to consistently encourage and influence other Marketing Executives to invest their time in building their Marketing Organizations.

All compensation paid by Melaleuca each month to each Marketing Executive is based on the understanding and expectation that the Marketing Executive is reliably and consistently involved in the crucial ongoing endeavor of promoting Melaleuca products and in consistently encouraging and influencing other Marketing Executives to invest their time in building their Marketing Organizations. Melaleuca and its Marketing Executives have made a significant investment in the establishment of organizations consisting of Customers and Marketing Executives. Those organizations constitute one of Melaleuca’s most valuable assets. In order to protect the efforts of all Marketing Executives in building and maintaining their individual Marketing Organizations and Customer bases, and in order to protect Melaleuca’s interest in the overall Customer base, a Marketing Executive and his/her spouse are required to abide by the following policies:

(a) Solicitation of Melaleuca Customers and Marketing Executives:

(i) During the period that his/her Independent Marketing Executive Agreement is in force, a Marketing Executive and his/her spouse are prohibited from directly, indirectly or through a third party Recruiting any

Preferred Customers or Marketing Executives to participate in any Competing Business Venture.

(ii) Also, for a period of twelve months after cancellation or termination for any reason of a Marketing Executive’s Independent Marketing Executive Agreement, the Marketing Executive and his/her spouse are prohibited from directly, indirectly or through a third party recruiting to participate in any other Competing Business Venture any Melaleuca Customers or Marketing Executives:

(1) who were in the Marketing Organization or Support Team at any time during the term of his or her association with Melaleuca; (2) or with whom the Marketing Executive had contact in conjunction with the operation of his/her Melaleuca business; (3) or whose contact information (name, address, phone number or email address, etc.) the Marketing Executive has obtained at any time during the term of his or her association with Melaleuca; or whose contact information (name, address, phone number or email address, etc.) the Marketing Executive or his/her spouse obtained at any time from another person who obtained the information because of any other person’s association with Melaleuca.

It is a violation of this policy to Recruit a Preferred Customer or Marketing Executive to participate in a Competing Business Venture, even if the Marketing Executive is not aware that the prospect is also a Preferred Customer or Marketing Executive. It is the Marketing Executive’s responsibility to first determine whether the prospect is a Preferred Customer or Marketing Executive before Recruiting the prospect to participate in any Competing Business Venture.

(b) During the period that the Independent Marketing Executive Agreement is in force, and for a period of twelve months after the cancellation or termination thereof for any reason, a Marketing Executive and his/her spouse are further prohibited from the following:

(i) Producing any literature, audio or video recording or promotional material of any nature (including but not limited to websites and emails) which is used by the Marketing Executive or any third person to recruit Preferred Customers or Marketing Executives to participate in any Competing Business Venture;

(ii) Selling, offering to sell, or promoting any competing products or services to Preferred Customers

(iii) Offering any non-Melaleuca product,

service or Competing Business Venture in conjunction with the presentation of any Melaleuca product, service or income opportunity or at any Melaleuca meeting, seminar, launch, convention, or other Melaleuca function.

(c) Each Marketing Executive agrees that any violation of this Policy 20(a) or (b) constitutes a failure of his/her responsibility to service, supervise, motivate, train and assist Marketing Executives in building their Marketing Organizations; to promote Melaleuca’s products and the Melaleuca income opportunity; and to consistently encourage and influence other Marketing Executives to invest their time in building their Marketing Organizations. Each Marketing Executive further agrees that such failure constitutes a material breach of the Independent Marketing Executive Agreement.

Melaleuca’s remedies for such a breach include, but are not limited to, the following:

(i) Melaleuca may seek and obtain from the violating Marketing Executive (and others who assisted with the violation) both injunctive relief and damages, and Melaleuca may, at its option, elect to enforce this Policy 20 by lawsuit in a court of competent jurisdiction rather than by arbitration. Damages for violating Policy 20 shall include the amount of lost present and future sales of Melaleuca products; harm from the departure of Marketing Executives and Preferred Customers; financial impacts to Marketing Organizations due to the Recruitment of Marketing Executives and Preferred Customers; and all other damages (including punitive and exemplary) allowed by law.

(ii) In addition to (or, at Melaleuca’s option, in lieu of) the damages set forth in Policy 20(c)(i), the violation of Policy 20 excuses Melaleuca from the payment of any bonuses, commissions or other payments to the Marketing Executive for the calendar month in which the violation occurred and any and all subsequent months. Should Melaleuca be unaware of the breach and continue by mistake to make commissions, bonuses or other payments to the Marketing Executive after the breach, those subsequent payments will be deemed to have been made in error, and the Marketing Executive is unjustly enriched by that amount and shall, upon demand, immediately return all such payments.

(iii) Violation of any provision of this Policy 20 constitutes a Marketing Executive’s voluntary resignation and cancellation of his/her Independent Marketing Executive Agreement,

effective as of the date of the violation, and the forfeiture by the Marketing Executive of all commissions or bonuses payable for and after the calendar month in which the violation occurred.

(iv) In addition to being entitled to a refund of bonuses and commissions and to damages as described above, in the event a person or entity violates this Policy 20, Melaleuca and any Marketing Executive who experiences an adverse financial impact as a result of such person’s or entity’s violation of this Policy 20 shall be entitled to an accounting and repayment of all profits, compensation, commissions, remunerations or other benefits which the person or entity directly or indirectly receives and/or may receive as a result of, growing out of, or in connection with any violation of this Policy. Such remedy shall be in addition to and not in limitation of any damages or injunctive relief or other rights or remedies to which Melaleuca is or may be entitled at law or in equity.

(d) Violations of this Policy 20 are especially detrimental to the growth and success of other Marketing Executives’ Independent Melaleuca Businesses and to Melaleuca’s business. Consequently, Marketing Executives who have knowledge that any Marketing Executive has violated this Policy must immediately (and confidentially) report that information to Melaleuca’s Policy Administration Department. The failure of a Marketing Executive to report such information to Melaleuca will also constitute a violation of this Policy. The names of those reporting violations of this Policy 20 will be held in confidence. 21. Proprietary Information and Trade Secrets By executing the Independent Marketing Executive Agreement, the Marketing Executive acknowledges that all information which is contained in the Marketing Executive’s Monthly Business Report, including, but not limited to, names, addresses and telephone numbers of Marketing Executives and Customers, and all identifying information relating to other Marketing Executives or Customers that the Marketing Executive became aware of while conducting Melaleuca business in any way or while attending Melaleuca related events, is Melaleuca’s proprietary trade secret information.

The Marketing Executive agrees to protect and not to disclose such information to any third party (except to existing or prospective Melaleuca Marketing Executives or Customers for the purpose of promoting Melaleuca


products and business opportunity) or to utilize such information for the purpose of promoting any other business opportunity at any time, whether during the term of his/her association with Melaleuca or thereafter. The Marketing Executive acknowledges that such proprietary information is of such character as to render it unique and that disclosure or use thereof in violation of this provision will result in irreparable damage to Melaleuca and to Independent Melaleuca Businesses. Melaleuca and its Marketing Executives will be entitled to injunctive relief to prevent violation of this policy. If litigation is required to obtain injunctive relief or to recover damages, the prevailing party shall be entitled to an award of attorney’s fees and expenses. 22. The Enroller and Presenter (a) A Marketing Executive who is the Enroller of a new Customer or Marketing Executive may not list another Marketing Executive who did not participate in the contact or the presentation as either the Enroller or Presenter of such new Customer or Marketing Executive.

Regardless of where a Customer or Marketing Executive is placed in a Marketing Organization, the actual Enroller of such Customer or Marketing Executive must be listed as the Enroller on the Customer Membership Agreement.

(b) The Enroller and any other Marketing Executives involved in the Recruiting and enrollment process may use only Melaleuca’s products and its Compensation Plan and their personal commitment to help the new Marketing Executive build his or her business as an inducement to enroll. Marketing Executives may not enter into special deals with an Enrollee, including, but not limited to, promises of the payment of money or roll-ups.

(c) Before being listed as the Enroller or Presenter, a Marketing Executive must have meaningful contact with the Enrollee in person, over the telephone, or via other live, face-to-face (or vocal) means of communication. 23. Supervisory and Leadership Functions Marketing Executives’ compensation is based on sales of product by Melaleuca to End Consumers. Melaleuca has always reserved the right to change its Compensation Plan from time to time. Melaleuca has long endeavored to establish measurements and qualifications to compensate those who play an ongoing role in the sales of product by Melaleuca to Customers by engaging in activities such as (1) referring Customers and (2) motivating, training and

leading others to refer Customers. To qualify for any such compensation, Marketing Executives have the ongoing responsibility to service, supervise, motivate, train and assist Marketing Executives in building their Marketing Organizations, to promote Melaleuca’s products and the Melaleuca income opportunity and to consistently encourage and influence other Marketing Executives to invest their time in building their Marketing Organizations. To qualify for ongoing compensation, Melaleuca Marketing Executives also have the ongoing responsibility to support Melaleuca and Melaleuca’s policies, programs and personnel.

This leadership responsibility increases as the compensation to any Marketing Executive increases. Therefore, as the compensation to a Marketing Executive increases, the obligation of leadership and personal example and personal contribution from that leadership also increases.

Melaleuca has the right to measure the involvement and contribution of any of its Marketing Executives in this endeavor from time to time and to establish guidelines and measurements upon which Melaleuca will compensate its Marketing Executives. Melaleuca may decide to withhold compensation at any time it deems that a Marketing Executive is not meeting this requirement.

Any effort by a Marketing Executive to convince or entice any Customer or Marketing Executive to discontinue or diminish purchasing Melaleuca products, to move from one Melaleuca Marketing Organization to another, to discontinue or diminish efforts to promote the Melaleuca business opportunity, or to promote or pursue any Competing Business Venture, or to disparage Melaleuca, or its products, marketing plan, management team or other personnel is a violation of the Marketing Executive’s leadership responsibility and a violation of this policy. 24. Inventory Purchases Prohibited Melaleuca’s business model operates on the principle that 100% of sales by Melaleuca are made to End Consumers who are purchasing directly from Melaleuca based on personal consumption needs and solely on the merits of the product themselves. Any device or scheme whereby a Marketing Executive directly or through a third party causes product to be purchased solely for purposes of qualifying for bonuses or commissions constitutes fraud on the part of the Marketing Executive and is a violation of this policy. 25. Display in Stores Melaleuca is in strong support of home-based businesses and personal product

presentations. Any display of Melaleuca products to the public must be tasteful and professional. To maintain a standard of fairness and professionalism, Marketing Executives may not display Melaleuca products in drug stores, product fairs, flea markets, health food stores, grocery stores or similar venues. 26. Media Inquiries It is Melaleuca’s policy to have a single spokesperson handle all inquiries from the media and all media relations.

Therefore, Marketing Executives may not, for any reason, discuss their Independent Melaleuca Business with the media, nor act as spokespersons for Melaleuca, nor talk to the media regarding Melaleuca, its Compensation Plan, its products or services. It is a violation of this policy to provide any information to the media, regardless of whether the information is positive or negative, accurate or inaccurate. All inquiries from the media (whether radio, television, internet or print) must be immediately referred to Melaleuca. 27. Commissions and Monthly Business Reports Commission and bonus payments are generally made available by Melaleuca to Marketing Executives on or about the 15th day of each month for commissions and bonuses earned during the previous month. When the 15th day of the month falls on a weekend or holiday, payment will generally be made available on the next business day. Marketing Executives should use their Monthly Business Report as a tool to manage, supervise and train the members of their Marketing Organizations. The information contained in Business Reports is Melaleuca’s proprietary trade secret information, and Marketing Executives are prohibited from disseminating the information contained therein. See Policy 21 for further detail regarding Marketing Executives’ obligations with respect to such proprietary trade secret information.

Melaleuca may choose in its sole discretion to send commission by check or direct deposit. A data processing fee is charged to each Marketing Executive for generating and maintaining Monthly Business Reports.

Commissions and bonuses which fail to be credited directly into the Marketing Executive’s designated local bank account through Interbank GIRO will be charged a processing fee of SGD25 and will be credited to the Marketing Executive’s account, which credit may be used towards future purchases made by the Marketing Executive. If a Marketing Executive’s account is inactive and it

is necessary to notify the Marketing Executive of the credit on account, a service charge of SGD15/RM35 will be deducted from the account for each notice sent. 28. Purchases for Other Persons Melaleuca’s business model operates on the principle that 100% of sales by Melaleuca are made to End Consumers who are purchasing directly from Melaleuca based on personal consumption needs and solely on the merits of the product themselves. A Marketing Executive may not order or pay for products for Customers without such Customer’s express authorization and agreement to reimburse the Marketing Executive for such product and then only subject to Melaleuca’s acceptance of such authorization and agreement in its sole discretion. Earning commissions, bonuses or any Commission Rate by directly or indirectly paying for Customers’ orders is not permitted. 29. Restrictions on International Marketing Marketing Executives enrolled in Malaysia and Singapore are authorized to recommend Melaleuca products and to enroll Customers and Marketing Executives. In all other countries in which Melaleuca or its affiliates are authorized to conduct business, Marketing Executives may only enroll Customers and Marketing Executives pursuant to Melaleuca’s International Sponsorship Program. Marketing Executives and Customers may not ship or introduce Melaleuca products across any international border for the purpose of use by another person. Marketing Executives and Customers may not market, give, transfer, import, export or distribute Melaleuca products or sales aids in any country, other than Malaysia and Singapore, nor provide products to any individual who the Marketing Executive or Customer knows or has reason to believe is exporting products to another country. 30. Trademark, Service Mark and Trade Name Restrictions Customers and Marketing Executives may not use, reproduce or disseminate the Melaleuca trade name or logo or any Melaleuca trademark or service mark except in the use and dissemination of literature published and made available by Melaleuca and except on stationery and business cards produced and authorized by Melaleuca. This includes, but is not limited to, the formatives “Mela” and “Mel,” the term “Melaleuca,” the Leaf and Drop logo, and all marks or slogans designating products or services offered by Melaleuca.

31. Rules Regarding Advertising, Internet Usage and Sale of Materials (a) Marketing Executives may not:

(i) create, publish, sell, use, display or distribute any literature, audio or video recording, telephone ad message, infomercial or other print, audio, visual, or electronic media which represents Melaleuca, its products, services, Compensation Plan or business opportunity other than as specifically permitted pursuant to this Policy or that which is produced and provided by Melaleuca;

(ii) copy or reproduce any materials produced by Melaleuca except as specifically permitted pursuant to this policy or Melaleuca’s publication Building Your Business Online: Guidelines for Using the internet, Social Media, and Electronic Communications;

(iii) use the Melaleuca name or logo or the name or logo of any of Melaleuca’s services in any notice, display, advertisement or promotion, including, but not limited to, newspaper, magazine, radio, or television advertisements, or telephone or other directories (except a Marketing Executive may have a directory listing in the following format: “Melaleuca Independent Marketing Executive-[name of Marketing Executive]”);

(iv) display, advertise or promote Melaleuca’s products, services or business opportunity at county fairs, craft fairs, business fairs, trade shows, flea markets or any similar event, including the use of booths, without the express prior written approval of Melaleuca;

(v) charge for Melaleuca-related meetings performed or arranged by a Marketing Executive except to the extent necessary to cover the actual out-of-pocket expenses incurred. Marketing Executives must disclose their costs and revenue for any meetings upon request by Melaleuca.

(b) Marketing Executives may use websites and email messages only in accordance with Melaleuca’s publication Building Your Business Online: Guidelines for Using the internet, Social Media, and Electronic Communications, as the same are published on Melaleuca’s website, and which may be revised and modified from time to time at Melaleuca’s sole discretion. Melaleuca will take reasonable measures to publish notice of any changes to the guidelines on its website, however it is the Marketing Executives’ responsibility to review these guidelines periodically to be informed of and comply with any changes.

32. Income Claims Marketing Executives are prohibited from making false, misleading or inaccurate claims about their or other persons’ compensation received under the Compensation Plan. 33. Product Claims and Warranties Marketing Executives may not make any product claims, weight loss or health benefit claims, or product warranties other than those published in Official Melaleuca Material. Marketing Executives shall not publish or distribute information relating to uses of Melaleuca products other than those which are set forth in Official Melaleuca Material. Marketing Executives may not utilize Official Melaleuca Material which is approved for use in one country to make product claims or promote Melaleuca products in another country. 34. Ethical Sales Practices Marketing Executives shall be responsible to:

• Conduct themselves in a professional, courteous and considerate manner;

• Represent Melaleuca products in a sincere and honest manner;

• Represent the Compensation Plan only as prescribed by Official Melaleuca Material;

• Become familiar with and utilize marketing techniques, Melaleuca’s Compensation Plan and Statement of Policies, and other materials as prescribed by Melaleuca;

• Present the Melaleuca business opportunity in a manner which is consistent with Official Melaleuca Material; and

• Provide service, supervision, motivation, training and assistance to Marketing Executives in their organization.

Marketing Executives shall not:

• Engage in any deceptive, unlawful, or unethical business or recruiting practice;

• Engage in any high pressure recruiting practices;

• Make any untrue or deceptive statement such as referring to melaleuca as multi-level marketing (“MLM”) or as a part of the MLM “industry”;

• Enroll minors or persons who are not capable of making an informed decision with respect to entering into a Customer Membership Agreement or Independent Marketing Executive Agreement;

• Order Melaleuca products for Customers other than their own household without the express permission of such persons;


• List a Marketing Executive as an Enroller or Presenter who did not participate in the contact or the presentation of a new Customer or Marketing Executive and who did not meaningfully contact the Enrollee in person, over the telephone, or via other live, face-to-face (or vocal) means of communication; or

• Seek in any way to violate or circumvent Melaleuca’s agreements or Statement of Policies.

In addition, Marketing Executives are prohibited from, directly or indirectly, presenting or participating in any plan, program, or scheme in which a Marketing Executive:

(1) distributes money or any benefit received from Melaleuca to any Marketing Executive or Customer;

(2) offers any money, financial subsidy, or other form of compensation (including but not limited to free or discounted Melaleuca products) to any Customer or potential Customer, including for the purpose of advancing in status or earning bonuses or commissions; or

(3) develops the Melaleuca business opportunity in an illegitimate way, including but not limited to, through the use of fake accounts, by offering others an “investment” opportunity related to Melaleuca (including but not limited to offering to have others pay, directly or indirectly, for the product orders of another individual), or by providing any form of financial incentive to a Customer, potential Customer, Marketing Executive, or potential Marketing Executive not in accordance with the Melaleuca Compensation Plan.

(4) Marketing Executives participating in these activities will be subject to disciplinary actions in accordance to Policy 43, up to and including termination. 35. Policy Disclosure Requirement Prior to enrolling a prospective Marketing Executive, Marketing Executives shall provide to the prospective Marketing Executive a current copy of Melaleuca’s Statement of Policies. 36. Voluntary Resignation Due to Inactivity It is the Marketing Executive’s responsibility to lead his/her Marketing Organization with the proper example in production of Personal Product Points. Without this proper example and leadership, the Marketing Executive will lose his/her right to receive commissions and bonuses from his/

her Marketing Organization. Therefore, a Marketing Executive who produces less than 29 Product Points will not receive commissions. The failure of a Marketing Executive to produce at least 29 Personal Product Points for two consecutive months constitutes the Marketing Executive’s voluntary resignation. A Marketing Executive who has voluntarily resigned will lose all his/her Personal Enrollees and his/her Marketing Organization. The resignation shall become effective on the day following the last day of the second month of inactivity. 37. Reactivation and Reenrollment Requirements (a) When a Marketing Executive who has been deemed to have voluntarily resigned due to two months of inactivity under Policy 36 becomes reactivated, he/she will reenter his/her previous Marketing Organization in the first available position below his/her original Marketing Executive.

(b) Former Marketing Executives with the Status of Product Advocate III or below and Customers may reenroll as new Customers and Marketing Executives with their original Enroller and their original Marketing Executive at any time. Marketing Executives with the status of Product Advocate III or below and Customers who have not been enrolled with Melaleuca for at least the previous six consecutive months may reenroll as new Customers and Marketing Executives with the Enroller and Marketing Executive of their choice.

(c) Former Marketing Executives with the Status of Director and above:

(i) may reenroll as a new Customer and Marketing Executive with their original Enroller and their original Marketing Executive at any time.

(ii) must be inactive for one year before they can reenroll with an Enroller of their choice.

(iii) may reenroll with an Enroller of his/her choice after 6 consecutive months of inactivity if he/she has not been a Commission Rate Director or above during the 12 months prior to the first month of inactivity.

(iv) 2 Leadership Points will be awarded to the enroller for reenrolled customers who have been inactive less than 3 years.

(d) If a former Customer or Marketing Executive desires to reenroll in a new Marketing Organization in which any Marketing Executive in the new Support Team was also in his/her previous Support Team, such former Customer or Marketing Executive may reenroll no earlier than 12 months following the

date that such Support Team Marketing Executive became inactive in his/her previous Marketing Organization. Any individual involved in the violation of this policy will be subject to corrective measures pursuant to Policy 43, including fines and/or cancellation of his or her Independent Marketing Executive Agreement.

(e) Former Customers or Marketing Executives who reenroll pursuant to this Policy 37 shall be permanently disqualified to roll up.

(f) Reenrollment may be subject to Melaleuca Approval. 38. Marketing Executive Commission Rate and Status A Marketing Executive can lose his/her Commission Rate and therefore the right to receive corresponding commissions and bonuses if he/she no longer qualifies for the commissions or bonuses pertaining to such status. If a Marketing Executive at any point no longer has any Customers in his/her Marketing Organization, the Marketing Executive ceases to be a Marketing Executive, forfeits any previously earned status that may have been achieved and must then requalify to become a Marketing Executive and achieve a new status. 39. Roll Up Guidelines Melaleuca considers roll ups to be an important aspect of operating a healthy Melaleuca business. However, receiving a roll up is not a right for a Marketing Executive under any circumstances. Melaleuca in its sole discretion has the right to stop a roll up or otherwise prevent any roll up from occurring. The following are guidelines only and not considered policy and shall not be binding on Melaleuca.

(a) When a vacancy occurs in a Marketing Organization for any reason including the inactivity or termination of a Customer or Marketing Executive (a “Cancelled Marketing Executive”), each Marketing Executive in the first generation below the Cancelled Marketing Executive (a “First Generation Marketing Executive”) may have the opportunity to qualify to roll up into the position of the Cancelled Marketing Executive subject to the following conditions:

(i) If the Cancelled Marketing Executive’s Marketing Organization had fewer than 10 Active Customers in the first month of inactivity, the First Generation Marketing Executive with the highest Commission Rate in the Cancelled Marketing Executive’s second month of inactivity will be eligible to roll up to

the position of the Cancelled Marketing Executive in the month following the Cancelled Marketing Executive’s second month of inactivity. In the event of a tie, the following criteria will be applied, in the order listed, to the First Generation Marketing Executives involved in the tie until the tie is broken: (1) who has the largest number of personally enrolled Directors; (2) who has the largest number of personally enrolled Preferred Customers; (3) whose Marketing Organization has the largest number of Preferred Customers;(4) whose Marketing Organization has the highest average Product Points order per Customer; (5) who has the highest Persona Product Points; and (6) who enrolled first.

(ii) If the Cancelled Marketing Executive’s Marketing Organization had at least 10 but fewer than 100 Active Customers in the first month of inactivity, the First Generation Marketing Executive who first does the following will be eligible to roll up to the position of the Cancelled Marketing Executive the month following their achieving these requirements, but in no event sooner than the month following the Cancelled Marketing Executive’s second month of inactivity:

(1) advances to a new Status of Director 3 or greater;

(2) advances to a new Status which corresponds at least to the Cancelled Marketing Executive’s Organization Volume in the first month of inactivity; and

(3) grows his/her Marketing Organization by 25 Active Customers (excluding roll ups and moves) since the Cancelled Marketing Executive’s first month of inactivity. If two or more First Generation Marketing Executives qualify for the roll-up in the same month, the tie will be broken by application of the criteria set forth in subparagraph (i) above.

(iii) If the Cancelled Marketing Executive has 100 or more Active Customers in his/ her first month of inactivity, no roll up shall occur.

(b) The Enroller of a Cancelled Marketing Executive will inherit the Cancelled Marketing Executive’s Personal Enrollees as follows:

(i) For each Personal Enrollee who is a Customer (with no Marketing Organization) or who had the Commission Rate of a Product Advocate and had less than 2,500 Organization Volume in the Cancelled Marketing Executive’s first month of inactivity the Enroller will automatically inherit the Customer as a Personal Enrollee in the Cancelled Marketing Executive’s third month of inactivity.

(ii) For each Personal Enrollee who had the Commission Rate of a Product Advocate 2 or above and had less than 2,500 Organization Volume in the Cancelled Marketing Executive’s first month of inactivity, the Enroller will inherit such Personal Enrollee in the month following the month the Personal Enrollee has advanced one status above the Commission Rate the Personal Enrollee had in the Cancelled Marketing Executive’s first month of inactivity.

(iii) For each Personal Enrollee who had Organization Volume of 2,500 or more in the Cancelled Marketing Executive’s first month of inactivity, the Enroller will inherit such Personal Enrollee in the month following the month the Personal Enrollee has advanced one status above the Volume Status that the Personal Enrollee had in the Cancelled Marketing Executive’s first month of inactivity.

(iv) If the Personal Enrollee had Organization Volume of 50,000 or more or a Status of Executive Director or higher in the Cancelled Marketing Executive’s first month of inactivity, the Enroller cannot inherit such Personal Enrollee. However, in the case of termination, Marketing Executives who had Organization Volume of 50,000 or more or who had a Status of Executive Director or above at the time of their Enroller’s termination may be inherited when all of the following occur:

a) The potential Enroller helps the potential Personal Enrollee advance to one Status above the Volume Status that the potential Personal Enrollee had in the terminated Marketing Executive’s first month of inactivity; and

b) The potential Enroller helps another Personal Enrollee advance to Executive Director for the first time after the Cancelled Marketing Executive’s first month of inactivity. The advancing Personal Enrollee must be an actual Personal Enrollee of the potential Enroller, not an inherited Personal Enrollee.

c) All other inheritance rules apply.

(v) No Enroller can inherit a Personal Enrollee whose Status is higher than his/ her own, unless neither has a Status higher than Director 2.

(vi) When a Marketing Executive has their Independent Marketing Executive Agreement cancelled or terminated by Melaleuca, or went inactive while under investigation for a policy violation, in the month that the cancellation/ termination occurs, target statuses for the Personal Enrollees will be set and inheritances will occur based in accordance with all other existing policies.

(c) If the Cancelled Marketing Executive had the Commission Rate of Senior Director or above in his/her last month of activity and (i) was terminated by Melaleuca for a policy violation or (ii) voluntarily resigned or went inactive while under investigation for a policy violation, the Enroller of such Cancelled Marketing Executive will continue to receive credit for having a Personal Enrollee with the same Status (Senior, Executive, National or Corporate Director) to count towards the Enroller’s Status for twelve consecutive months from the month following the termination or resignation of the Cancelled Marketing Executive. For each month after the initial twelve months, the Enroller of such Cancelled Marketing Executive will receive credit for having a Personal Enrollee with the Status (Senior, Executive, National or Corporate Director) attributable pursuant to the Compensation Plan to the Organization Volume of the Marketing Organization of the Cancelled Marketing Executive. However, such credit cannot apply at the same time with respect to two Personal Enrollees. Therefore, the credit will expire in the first month in which the Enroller of the Cancelled Marketing Executive has inherited a potential Personal Enrollee who has or achieves Executive Director Status or the Status of the Cancelled Marketing Executive at the time of cancellation.

(d) To qualify for any roll up or inheritance, the Marketing Executive who will be receiving the roll up or who will be inheriting Personal Enrollees must have been in compliance with Melaleuca’s Statement of Policies for the preceding 12 months and must not have been involved in any illegal, fraudulent, deceptive or unethical conduct. Melaleuca will fully investigate the cancelation to determine, at Melaleuca’s sole discretion, full compliance with Melaleuca’s policies. 40. Use of the Internet Social Media for Training and Information Marketing Executives may use the internet, including social media sites, for the purpose of providing training on business-building activities and business- related information to other Marketing Executives, which content cannot be available to the general public. Marketing Executives may use invitation-only social media groups (including any private, invitation-only Facebook event or blog) for this purpose. The training and information provided should be conservative in content and professional, consistent with Melaleuca’s culture and mission. The following provisions are designed to provide guidance and


ensure these principles are upheld. In addition to these provisions, Marketing Executives must comply with the rules set out separately in “Building Your Business Online: Guidelines for Using the internet, Social Media, and Electronic Communications.”

(a) Websites and private, invitation-only social media groups used for training and information must be 100% password protected (meaning that no portion of the content can be accessed without a password) to the extent feasible and, where not feasible, access must be otherwise restricted to invitees only.

(b) Online training and information content may:

(i) contain Melaleuca trademarked words (including the name Melaleuca), phrases or product names;

(ii) contain truthful and accurate Melaleuca product and business stories from the Marketing Executive providing the content and/or from other Customers;

(iii) provide information about Melaleuca corporate or Marketing Organization meeting dates and locations;

(iv) contain business- and product- oriented bulletin boards, as long as the content is closely monitored by the Marketing Executive providing the content to ensure that it complies with Melaleuca’s policies;

(v) provide training and information (including pre-recorded training messages) about business-building strategies in a manner consistent with Melaleuca’s policies;

(vi) recognize the achievements and advancements of Marketing Executives within the organization of the Marketing Executive providing the content;

(vii) contain one or more links to an official Melaleuca website;

(viii) contain a current official version of the Melaleuca Overview slides to be used only for training purposes or for facilitating a live presentation of the Melaleuca Overview slides;

(ix) contain statements about income that comply with Policy 32; and

(c) Online training and information content may not:

(i) be used for the purpose of soliciting new customers or Marketing Executives, except when used for a live presentation of the Melaleuca Overview slides;

(ii) contain any promises or representations about placement within a Marketing Organization, that an

organization will be built for a Marketing Executive, or that this is a business in which little effort is required;

(iii) offer any materials or services for a fee, including but not limited to any website hosting services or other web-related services, internet usage training or services, lead-generation services, or training services or materials;

(iv) offer for sale any Melaleuca logo gear;

(d) Marketing Executives may not discuss Melaleuca by name in any social media websites that are not password protected. But Marketing Executives may talk about Melaleuca products by brand name on non-protected social media sites, but may not issue a call to action. 41. Obligations of Independent Contractors As an independent contractor, it is a Marketing Executive’s responsibility to:

(a) Abide by any and all federal, state, provincial, county and local laws, rules and regulations applicable to operating his/her Independent Melaleuca Business;

(b) At the Marketing Executive’s own expense, make, execute or file all such reports and obtain such licenses as are required by law or public authority with respect to his/her Independent Melaleuca Business;

(c) Be solely responsible for declaration and payment of all local, state, provincial, federal and general sales taxes and fees as may accrue because of the Marketing Executive’s activities in conjunction with his/her Independent Melaleuca Business;

(d) Supply all of his/her own equipment and tools for operating his/her business, such as telephone, transportation, professional services, office equipment, and office supplies; and

(e) Provide his/her own place of business and determine his/her own work hours.

Marketing Executives are not corporate representatives of Melaleuca and are not authorized to incur any debt, expense or obligation on behalf of or for Melaleuca, nor bind Melaleuca to any agreement or contract. 42. Forfeiture of Rights to Bonuses and Commissions So long as a Marketing Executive is complying with all policies and terms of the Independent Marketing Executive Agreement, as amended from time to time, Melaleuca is obligated to pay commissions and bonuses to such Marketing Executive in accordance with the Compensation Plan. A Marketing

Executive’s commissions and bonuses constitute the entire consideration for all of the Marketing Executive’s efforts in generating sales, and the Marketing Executive’s right to receive commissions and bonuses from Melaleuca constitutes the entire value attributable to the Marketing Executive’s Marketing Organization.

Following a Marketing Executive’s resignation, cancellation for inactivity, or voluntary or involuntary cancellation of his/her Independent Marketing Executive Agreement, such former Marketing Executive shall have no right, title, claim or interest to the Marketing Organization. The former Marketing Executive shall have no claim for compensation for the Marketing Organization or for bonuses or commissions stemming from sales generated within or by the Marketing Organization or for Financial Freedom Bonus amounts held in escrow by Melaleuca. Following voluntary or involuntary cancellation of his/her Independent Marketing Executive Agreement, the former Marketing Executive shall not hold himself/herself out as a Melaleuca Marketing Executive and shall not have the right to introduce Melaleuca products or services or the Melaleuca business opportunity. 43. Corrective Measures All of the policies in this Statement of Policies, the provisions of the Independent Marketing Executive Agreement, the Corporate Entity Application and Agreement, the Tax Exempt Entity Application and Agreement and any other agreements entered into by and between Melaleuca and Marketing Executives are material terms to the agreement between Melaleuca and Marketing Executives.

A Marketing Executive’s violation of any of the terms and conditions of any of these agreements or the Statement of Policies or any illegal, fraudulent, deceptive or unethical conduct by a Marketing Executive may result, at Melaleuca’s discretion, in one or more of the following corrective measures:

(a) cancellation of his or her Independent Marketing Executive Agreement;

(b) cease to pay any further commissions or bonuses indefinitely;

(c) issuance of a written warning or admonition;

(d) imposition of a fine, which may be imposed immediately or withheld from future commissions and/or bonuses;

(e) reassignment of all or part of his/her Marketing Organization;

(f) suspension of his/her Independent Marketing Executive Agreement for one or more months; or

(g) any other measure expressly stated within any of the policies set forth in the Statement of Policies or any provision of the Independent Marketing Executive Agreement, the Corporate Entity Application and Agreement, or the Tax Exempt Entity Application and Agreement.

Melaleuca has the right to withhold from a Marketing Executive all bonuses and commissions during the period that Melaleuca is investigating the alleged violative conduct of the Marketing Executive. If a Marketing Executive’s Independent Marketing Executive Agreement is canceled due to a

violation preceding the investigation, the Marketing Executive will not be entitled to any commissions or bonuses withheld by Melaleuca during the investigation period. 44. Amendments to the Compensation Plan, Statement of Policies, and/or Independent Marketing Executive Agreement Upon 30 days’ notice to Marketing Executives, Melaleuca may, at its sole discretion, amend the Compensation Plan, Statement of Policies and/or the terms of the Independent Marketing Executive Agreement and any other agreements entered into by and between Melaleuca and the Marketing Executives. By signing the Independent Marketing Executive Agreement, Marketing Executives agree

to abide by any such amendments. The continuation of an Independent Melaleuca Business or a Marketing Executive’s acceptance of commissions and/or bonuses from Melaleuca after the 30-day notification period constitutes his/her acceptance of any such amendments. After 30 days’ notice, Marketing Executives will be bound by the most current versions of the Compensation Plan, the Statement of Policies, the Independent Marketing Executive Agreement and any other agreements entered into by and between Melaleuca and the Marketing Executives. Melaleuca’s interpretation of the Compensation Plan, Statement of Policies and/or the terms of the Independent Marketing Executive Agreement and any other agreements will be final and binding.


The following terms will have the meanings set forth herein when used in Melaleuca’s Statement of Policies, Compensation Plan and/or Independent Marketing Executive Agreement and other official Melaleuca material. This Definition of Terms is included in and forms a part of the Statement of Policies.

Active Customer: A Customer who has completed and returned a Customer Membership Agreement and purchases at least 29 Product Points during the calendar month.

Active Marketing Executive: A Marketing Executive who personally produces the number of Product Points each month that are required to qualify for commissions pursuant to the Compensation Plan.

Backup Order: A preselected package of Melaleuca products which is automatically shipped to Preferred Customers if they fail to order the minimum monthly Product Points agreed upon in their Customer Membership Agreement. Those who select the Preferred Customer option in the Customer Membership Agreement preauthorize Melaleuca to send a Backup Order and it will be charged to their credit card.

Commission Rate: The status at which a Marketing Executive is paid in any month because the Marketing Executive has met all the qualifications to be paid at that status.

Compensation Plan: The plan as offered, as amended, and interpreted by Melaleuca that compensates Marketing Executives for the continued building, promoting, training, motivation, servicing and development of their Independent Melaleuca Businesses.

Competing Business Venture: Any business or business opportunity involving the sale, marketing or referral of products or services through direct selling (as defined by the Direct Selling Association), network marketing or other similar business opportunity. Corporate Entity Application and Agreement: The agreement that must be completed by corporate entities that are applying to become Marketing Executives.

Customer: Any person or organization that purchases product or services from Melaleuca for personal use including any Direct or Preferred Customer.

Direct Customer: A Customer who is authorized to purchase products from Melaleuca at Melaleuca’s regular price pursuant to a Customer Membership Agreement.

End Consumer: A person who purchases Melaleuca products solely for the purpose of consuming them and not for resale to someone else or as an attempt to earn any compensation.

Enrollee: A Customer or Marketing Executive who has signed an Independent Marketing Executive Agreement or a Customer Membership Agreement on file.

Enroller: The Marketing Executive who is listed on the Customer Membership Agreement as the Enroller. The Enroller must be the person who introduced the new Customer to Melaleuca and helped him/her become a Customer or who played an active role in the presentation of Melaleuca products or business opportunity to the new Customer. Before being listed as the Enroller, a Marketing Executive must have meaningful contact with the Enrollee in person, over the telephone, or via other live, face-to-face (or vocal) means of communication.

Immediate Household: Married couples and persons residing in the same home, and with respect to Marketing Executives and Customers which are entities (e.g., corporations, etc.) rather than individuals, Immediate Household means the shareholders, owners,

directors, officers, responsible parties, etc. of such entities and persons married to or residing in the same home with the persons who are the shareholders, owners, directors, officers, responsible parties, etc. of such entities.

Independent Melaleuca Business:The Marketing Organization consisting of those Customers and entities that purchase Melaleuca products for which the Marketing Executive is entitled to receive commissions.

Marketing Executive: A person or entity that has completed, executed, and delivered to Melaleuca an Independent Marketing Executive Agreement; has purchased a business kit; has at least one Personal Enrollee who is an Active Customer in his/her Marketing Organization; and has received his/her first commission. If a Marketing Executive at any point no longer has any Personal Enrollee who is an Active Customer in his/her Marketing Organization, the Marketing Executive ceases to be a Marketing Executive and must requalify to become a Marketing Executive.

Marketing Organization: The Customers and Marketing Executives who comprise the group of individuals or entities from which the Marketing Executive is entitled to receive commissions based upon the collective sales volume of the group and the status of certain Marketing Executives within the group pursuant to the Compensation Plan.

Melaleuca: Melaleuca Southeast Asia (Singapore) Pte Ltd, Melaleuca Southeast Asia (Malaysia) Sdn Bhd.

Monthly Business Reports: Reports produced by Melaleuca on a monthly basis and provided to Marketing Executives that contain information relating to the activity of the Marketing Executive’s Marketing Organization. The Monthly Business Reports contain trade secret information that is proprietary to Melaleuca.

Definition of TermsOfficial Melaleuca Material: Material in any form that is authorized, published, and disseminated by Melaleuca. This includes, but is not limited to, printed material, audio and visual materials, satellite broadcasts, fax and electronic communications and internet communications.

Organization Volume: The total Product Points from products purchased in a Marketing Executive’s Marketing Organization in a calendar month. (A maximum of 150 product points per customer will be counted towards Organization Volume).

PEG Volume (Personal Enrollee Group Volume): The total Organization Volume of a Marketing Executive’s Personal Enrollees in any given month.

Personal Product Points: The total monthly Product Points personally produced by a Marketing Executive.

Personal Director: A Personal Enrollee with the Commission Rate of Director or above.

Personal Enrollee: An Enroller’s Enrollee to whom the Enroller has personally introduced Melaleuca and/or has played an active role in the presentation of Melaleuca products or business opportunity.

Preferred Customer: A Customer who has entered into a Customer Membership Agreement, placed an order for at least 35 Product Points, and paid an annual membership fee. In addition to many other benefits, Preferred Customers receive a 30% to 50% discount on Melaleuca products

Presenter: The Marketing Executive who is listed on the Customer Membership Agreement as the Presenter. The Presenter must be a person who played a significant role in the presentation of Melaleuca products or business opportunity to the new Customer. The presentation needs to be in person, over the telephone, or via other live, face-to-face (or vocal) means of communication.

Product Point: A value assigned to each Melaleuca product upon which commissions and bonuses are calculated.

Product Point Production: To produce Product Points, a Marketing Executive must create sales to End Consumers other than customers in the Marketing Executive’s Marketing Organization. These sales must be products the consumer actually desires or needs as opposed to enticing consumers to purchase products in order for the Marketing Executive to qualify for a commission.

Quality Customer: A Customer who enrolled and placed an order for at least 35 Product Points in the Customer’s first month of enrollment.

Quality Enroll: To enroll a Quality Customer.

Recruit or Recruiting: 1) To attempt to enroll, enlist, or solicit an individual or entity to join a Competing Business Venture; or 2) to attempt to promote, influence or encourage an individual or entity to join a Competing Business Venture; or 3) to present, participate in or assist in the presentation of a Competing Business Venture or its products. To constitute recruiting, such efforts or attempts may be performed either directly through personal contact or indirectly through a third party.

Statement of Policies: The policies published by Melaleuca, as amended from time to time, which set forth, among other things, the requirements for operating an Independent Melaleuca Business.

Status: The highest Commission Rate a Marketing Executive has ever achieved. If a Marketing Executive at any point no longer has any Customers in his/her Marketing Organization, the Marketing Executive becomes a Customer and loses any highest Commission Rate or Status previously achieved until further statuses are achieved. This does not reset advancement bonuses under the Compensation Plan.

Support Team: The seven Marketing Executives above an individual in a Marketing Organization who have the potential to receive commissions based upon the purchases of that Customer.

True PEG (Personal Enrollee Group Volume): The total Organization Volume of a Marketing Executive’s Personal Enrollees in any given month. (Contrary to how PEG Volume is calculated, True PEG counts each Customer’s monthly purchase volume only once, even though that Customer might be under several Personal Enrollees in the Marketing Organization).

Volume Status: All advancements in status of Director II or above require a minimum Organization Volume. The status corresponding to each required volume in the Compensation Plan is the Volume Status.


Relationships

Social media is a wonderful way to connect with and stay in contact with friends and family. While there are many philosophies about how to use social media to build a business or to help promote a product, we believe the most important thing you can do as a Melaleuca Marketing Executive on social media is build relationships. Melaleuca thrives on relationships! Activities that build relationships are likely to be good for your business. At the same time, those things that harm your relationships will also be bad for your business. Melaleuca is a warm-market company built on genuine personal relationships. Your long-term success as a Marketing Executive is maximized – and our mission of enhancing lives is well served – when you use your electronic communications to develop true friends, many of whom will naturally become interested in Melaleuca as they get to know you. On the other hand, intrusive communications to a cold market (such as promotions of a business opportunity to a social media group organized for other purposes) have the opposite effect: the person making such communications is often shunned, the reputation of the company is harmed, and the group members become less willing to listen to others who may try to reintroduce the products or the opportunity in the future. In the same vein, all electronic communications related to Melaleuca in any way must be conservative, professional, and product-oriented. Communications should never contain hype, as hype is inconsistent with Melaleuca’s mission and culture and tends to scare off the best and most-professional potential business builders. You should ensure that all of your communications are in good taste, recognizing that every public communication you make impacts all Marketing Executives and their reputation as a whole.

BUILDING YOUR BUSINESS ONLINE Guidelines for Using the Internet, Social Media, and Electronic Communications

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When it comes to building your business, there are ways to use social media correctly and there are certainly ways to use social media incorrectly. Constructive use of the Internet (including social media sites) and other means of electronic communication to identify and work with potential Melaleuca Customers and Marketing Executives can be a rewarding way to build your Melaleuca business. Unhealthy online practices, however, risk causing significant damage to your and others’ Melaleuca businesses. These guidelines are designed to help you get the most out of the best practices in this area, while protecting all Melaleuca businesses against the dangers of misuse. Melaleuca has established several policies to give guidance on how to use social media to promote your Melaleuca business. Much of Melaleuca’s social media policy is based on the premise that we do not want to “burn the fields.” “Burning the fields” means injecting Melaleuca’s name or the Melaleuca opportunity into a public forum to such a degree that people (1) assume – incorrectly – that they have learned all they need to about Melaleuca from this brief exposure, or (2) grow tired of hearing about Melaleuca. For the last 34 years, Melaleuca has been careful to make sure that overzealous Marketing Executives do not “burn the fields.” That is why the message of Melaleuca is as fresh today as it was in 1985. Indeed, because Melaleuca has avoided “burning the fields,” it is much more intriguing today that it was in the beginning. We want Melaleuca’s message and the Melaleuca story to remain fresh and vibrant. Once a person has heard any story for the tenth time—or even the second time—the story is no longer fresh. Therefore, when someone learns of the Melaleuca story, they deserve to hear it in its entirety, delivered by the most professional and compelling presenter possible. Hearing or seeing the word “Melaleuca” several times a day or even several times a week serves to distort the message and prejudices people into believing that they already know all about it. The ideal situation would be for someone to be

approached for the first time about Melaleuca in a person-to-person setting. And the ideal response upon asking someone if they would entertain seeing a Melaleuca Overview would be “Melawhat? I’ve never heard of that company!” Melaleuca’s Statement of Policies (accessible at Malaysia.Melaleuca.com / Sg.Melaleuca.com> Business Center > Reports & Tools) governs everything you do in your role as a marketing Executive, including your online activities. These guidelines supplement those Policies and cover electronic communications relating to Melaleuca by a Marketing Executive to a person or group of people who are not Marketing Executives or Members. That includes, but is not limited to, communications via emails; tests; social networking sites (LinkedIn, Facebook, Instagram); microblogging sites (Twitter, Pinterest); video and photo-sharing websites (YouTube, Flickr, Periscope); blogs (including company and personal blogs); and online encyclopedias (Wikipedia). Practices consistent with these Guidelines can provide you with many opportunities to share a Melaleuca Overview and have the personal contact required under Policy 22 before enrolling a Marketing Executive or Preferred Member.

Private/Closed Group Posts

The rules for what can be posted in private groups are different from what can be posted in a public forum. If all members of a private/closed group are Melaleuca Customers or Melaleuca Marketing Executives, you do not have to worry about “burning the fields” because everyone already knows about Melaleuca. Therefore, messages containing the company name, business information, etc. are allowed. We assume such sites are for purposes of either training, celebrating, or networking with other Melaleuca Customers/Marketing Executives. As with any post, all information posted should be truthful and in good taste.


Private Messages

Compared to a private message, a phone call is a much more effective way of making personal contact. Your success rate will be much higher with a phone call. However, if it is impossible to reach someone by phone, you can send a private message to someone you know. Likewise, when someone expresses interest in something relating to Melaleuca that you have shared publicly online, you should contact that person privately to follow-up. Your private message can reference Melaleuca by name, reference Melaleuca’s business opportunity, or extend an invitation to talk in person, over the telephone, or via other live means of communication that is face-to-face or vocal (per Policy 22). Your private messages should mirror your real-world relationships. Be genuine. Strive to develop real relationships through your private messages. And just as you wouldn’t approach a stranger on the street and immediately start introducing Melaleuca products or the business opportunity, your first private message to someone cannot include a call to action, an invitation, or anything about a business opportunity. Rather, use your first message to develop a genuine relationship. As the recipient responds and engages in the conversation, you can begin to foster the relationship, and when appropriate, you can extend an invitation. In all cases, private messages should be one at a time. Sending a dozen private messages in a single day to 12 different individuals, for example, has close to the same effect as a public post. You can’t give that many individuals the personal attention that they deserve.

Public Forum Posts

Melaleuca has fundamentally different policies for public forum sites, such as Facebook Instagram, Twitter, etc. than it does for closed sites. We have watched carefully what has happened in some companies that run rampant without any policies regarding posting on public social media forums. Frankly, it’s distasteful to many people who simply want to use social media to have relationships with others and don’t want to be continually pestered with product or business opportunity advertisements. We fully realize that multilevel marketing (“MLM”) companies use social media to advertise products and pitch their business

opportunity all the time. But Melaleuca is not an MLM company. And the kinds of social media tactics engaged in by many MLM companies have never been proven to be an effective way to build a business. Those who engage in such tactics are often unfriended or at least unfollowed by even their best friends. People who incessantly post or reference their business opportunity on social media pages not only do damage to relationships, they also do damage to the company, i.e., they “burn the fields.” We believe that social media should be used to build honest, worthwhile, and meaningful relationships. Regardless of the many gurus who tout social media as “the only way to build,” we have seen very few companies or individuals be successful with this methodology. And we have seen many companies ruined by the same process. We do not believe that using social media is a good way to “build a business.” But we do believe that social media is a wonderful way to build true, meaningful relationships that can later turn into business relationships. Our policies are built around those concepts.

Best Practices

Over the years, some have sought shortcuts in building their businesses. They take a passive approach and pass out business cards, post flyers, buy ads, distribute tapes or CDs, and then sit back and wait for the phone to ring. But the phone doesn’t ring and the fields burn! The same principle applies to social media. The only effective way to build a business it to proactively build relationships and approach people one-on-one. For example, when someone posts a picture at a family event and says “I’m so thankful to our company that allows me to work from home so I never miss these magic moments,” the reader feels like the post is promoting a business – especially if there are multiple posts on your feed that reference “my business” or “our company.” A more effective post in the same scenario would be to simply say you are enjoying more time with family and appreciating the magic moments, with no reference to the business or company. Then, when you privately approach your friends and contacts, they’ll be curious. They’ve seen how you’re enjoying life and are probably already wondering how you do it. But if you’ve already posted about your company or business, as soon as you approach them they’ll think you’re trying to sell them something. To help you put the principles described above into practice, we have developed list of things you can do and a list of things you cannot do.

What You Can Do1. You can join online groups, clubs, and organizations in which you

are truly interested, to enlarge your circle of friends and make contacts with people who have interests similar to your own and thereby expand your warm market.

2. On any social media site, group, or other website that specifically identifies its purpose as promoting or advertising business, financial or work-from-home opportunities (and only on such sites), where everyone in the group has voluntarily opted into the group, you can make posts regarding Melaleuca’s business opportunity and have a call to action, but you cannot mention Melaleuca’s name specifically. It is important to note that although permitted, these posts are not encouraged and have not proven to be effective.

3. You can publicly share, endorse, or tell a product experience about any one product individually. You may also make a single endorsement about a product line or group of products. These stories should be brief, concise, and include your own or another Customers’ actual, personal experiences with Melaleuca products that are positive and typical of the experiences of others with the products. You can do so through written words, photos, or videos less than 1-minute long, and can mention the specific brand names of Melaleuca products such as Renew™ or Access®. Keep in mind that any experiences you share must be consistent with Policy 33.

Examples:

• Show a group of Melaleuca products under your kitchen sink and say, “My home has never been safer!”

• I just had a great workout! Thank goodness for the Access Bar!

• If the topic of dry skin comes up in a public forum, you could post a comment based on personal experience: “Renew is the best product we have ever used for our children when it comes to skin issues.”

4. We encourage you to talk about your quality of life in a tasteful way that will make friends, and to do everything that people on social media do to build meaningful relationships. You should do this without explicitly tying your experiences to Melaleuca.

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Examples:

• You can post pictures of you and your car, or you in your home, or you on vacation as long as you don’t exaggerate and those pictures are in good taste and don’t appear that you are promising someone else a lavish lifestyle. For example, your car, house, etc. should appear only incidentally, not as the focus of the post.

(There are ways to demonstrate that you are doing well financially, in a manner that will cause healthy curiosity as to what you do for a living. But when you flaunt it, you will turn many people off.)


5. Talk about and show pictures of a Melaleuca event, like Convention, to celebrate the recognition received by members of your team as long as:

• You do not show anyone presenting to a group

• You do not share slides or training materials

Example:

• “Spent an amazing weekend at Convention, meeting amazing people and learning from the best.”

6. You can defend Melaleuca when it is criticized or attacked online – and, in doing so, feel free to mention the name Melaleuca when (and only when) responding to statements that already mention Melaleuca. We encourage you to quickly post a response correcting the record whenever you encounter any negative statements about Melaleuca, our people, or our products anywhere on the Internet – including blogs, social networking sites such as Facebook and LinkedIn, and microblogging sites such as Twitter. This can be done by offsetting the negative comments with positive personal experiences regarding our products, our business model, or Melaleuca in general.

What You Can’t Do1. We don’t want social media sites to be plastered with

the word “Melaleuca” or messages about Melaleuca. Therefore, we have a strict requirement that Marketing Executives not mention the word “Melaleuca” (except as described in Point 6 of “What You Can Do”). That might seem a little strict, but without such a policy it would be easy to “burn the fields” in a short amount of time.

2. Do not share any posts from Melaleuca’s social media platforms because they feature the name “Melaleuca.”

3. Do not post content that is identifiable through any search engine by using the search term or keyword “Melaleuca” or any derivation thereof (including “mela”) or any other of Melaleuca’s trademarked words or phrases. Do not share multiple points that describe Melaleuca.

4. Consistent with our teaching to avoid “burning the fields,” posting multiple times a day is strongly discouraged. Sometimes a post by itself may be within guidelines, but may not be okay when seen in contest with other posts.

5. Do not mention or describe Melaleuca’s business opportunity or its business (a) publicly online (except on a Melaleuca-approved website specifically devoted to the purpose of identifying such opportunities), (b) on websites or in groups that facilitate the sharing of parenting ideas, safe household products, or anything else besides business opportunities – even if others sometimes use the forum for sharing business opportunities, or (c) in unsolicited communications to people you do not already know personally (including emails, text messages, private messages, etc.)

Do not:

• Make any public statements or claims about Melaleuca’s compensation plan, services, awards, track record, management, affiliations, history, retention rate, or reorder rate

• Make any public mention or post copies of checks from Melaleuca, Inc.

6. All invitations must be sent individually, one at a time, and only to contacts you personally know or have built some type of relationship with. See Private Messages above.

Examples:

• Do not extend any public invitation to a Melaleuca Overview using social media, a public website, microblog, etc.

• You cannot send out group invitations to meetings, websites, Overview presentations, etc., to those who are not yet Melaleuca Preferred Members or Marketing Executives.

7. Do not make any public post or comment that includes a direct, indirect, or implied “call to action.”

Examples:

• Call me!

• Ask me how!

• Private message me!

• I can solve your financial problems!

• I’m here to help!

• Click below for more information…

• Come join our training at 8 p.m. tomorrow!

• Comment below

8. When sharing accounts of your own and other Customer’s actual personal experiences with Melaleuca products, do not:

• Make any claims that Melaleuca’s products prevent or treat medical conditions or diseases (except for any claims specifically asserted by Melaleuca in its official publications), per Policy 33

• Embellish any experience

• Give information about more than one product at a time; otherwise it is a product training

Any product trainings must be password protected and accessible only to active Melaleuca Customers and/or Marketing Executives in a closed social media group comprised completely of active Melaleuca Customers or Marketing Executives (i.e., no prospective Customers).

9. Do not give too much information in any post. Otherwise, it can appear to be a brief Overview or product training. For the same reasons, do not post any video that is directly or indirectly related to Melaleuca that is more than one minute long.

10. Do not publicly state your income as it relates to how much money you earn from Melaleuca. That can be done in private only if accompanied by Melaleuca’s annual income statistics. Most people consider it extremely poor taste to share income in public.

11. Do not show or talk about having a lavish lifestyle (e.g., refer to big houses, expensive boats, luxury cars, exotic vacations, etc.) such that it appears that you are either touting or promising that kind of lifestyle. This is not appropriate in any setting.

12. You should never suggest that anyone should quit their job to start a Melaleuca business. Stating or suggesting that people quit their job to join a business opportunity is a red flag that you are operating a pyramid scheme. Since our beginning over 34 years ago, Melaleuca has been adamant about never suggesting that someone quit their job to build a Melaleuca business. To do so would be irresponsible, even in private. You should never make references to “firing your boss,” etc. Doing so might imply that you’re suggesting that people quit their job. It has always been Melaleuca’s policy that no one should ever consider quitting their job to build a Melaleuca business until their residual income from Melaleuca is at least three times what they are making with their current full-time job. Until then, it only makes sense to add the Melaleuca income to the regular income. Most people with a Melaleuca business use their Melaleuca business to supplement their income. Even for those who put serious time and effort into building a Melaleuca business, it normally takes years to build the business to the point that anyone should ever consider leaving their full-time job to live only on their Melaleuca income.

13. Do not “like” or share any post that is out of compliance with Melaleuca social media policy. If you see any violation, you must report it to [email protected] / [email protected].


14. Do not post any material containing Melaleuca’s copyrighted Leaf and Drop logo or its other copyrighted materials (unless the copyrighted material is contained [1] only incidentally in a picture or video [2] in a closed group.)

15. Do not share photos or videos from Melaleuca events that show anyone presenting to a group. Do not share slides or any training from the event.

16. Do not offer for a fee any services, trainings, lead-generation, systems, apps, or any other training materials. Melaleuca discourages the implementation of websites. Fees collected by approved website vendors for any service cannot be shared with any Marketing Executive.

17. Do not refer to any prerecorded phone message, video recording, or other type of communication that violates any of these Guidelines or any other Melaleuca policy. All recordings must also be password protected.

18. Do not violate any state or federal law, applicable Internet service provider or website policies, or any Melaleuca policy.

19. Marketing Executives and Customers may not offer for sale Melaleuca products, materials or the income opportunity via the Internet (including eBay).

Prerecorded Overviews

Are not allowed to be posted in any social media platform.

Violations

Melaleuca may audit Marketing Executives’ online and electronic communications to ensure compliance with these guidelines. A Marketing Executive’s violation of the guidelines may result in the forfeiture of commissions and bonuses, fines, or termination of the Marketing Executive’s Independent Marketing Executive Agreement. Melaleuca reserves the right to withhold advancement bonuses or other commissions from any business where it is perceived that a violation helped cause the advancement, even if the violations are from others in the organization. You have the responsibility to monitor social media activity, report violations, and ensure correct principles and policies are taught and understood throughout your entire organization.

The Before-You-Post Checklist

Remember, social media should only be used to build meaningful relationships. It’s okay to create curiosity, but it’s important to be subtle. If your goal with this post is to have someone message you or comment wanting to know more, then it’s the wrong approach. If your plan is to create genuine curiosity, foster relationships, and proactively approach your contacts when the time is right, then you’re on the right track. Those who have effective social media strategies understand the importance of nuance – what you don’t say and how you don’t say it.

Before you post, ask yourself...

1. Is the post tasteful and consistent with what friends would normally post? Is it truthful and free of any exaggerated claims?

2. Will the post help create genuine curiosity and support building relationships to expand your warm market?

Yes No

Is there any way for a person to tell you are with Melaleuca? (including references to the compensation plan, reorder rate, services, awards, track record, etc.)

Are you representing a lavish lifestyle? (e.g. big houses, cars, boats, luxury travel, etc.)

Is there any reference to your income or how much others can make – including any suggestions about quitting a job?

Does your post have a direct or implied request for a response? (e.g. message me, click here, I’m here to help)

Does your post reference more than one product?

Is the video longer than one minute?

If at an event, does the post show anyone presenting to a group?

Have you already posted today?

If you’ve answered “no” to each question on the checklist: Your post may be within the guidelines and principles taught in this document. If in doubt, don’t post. If you have any questions, don’t hesitate to email us at [email protected] / [email protected]. We will get back to you right away.


© 2019 Melaleuca, Inc. 09/19 SGMY

PUBLISHED BYMELALEUCA SOUTHEAST ASIA (SINGAPORE) PTE LTD 150 Changi Road, Guthrie Building #01-01, Singapore 419973. Tel: 1800 800 8080 Fax: 1800 800 1800 Website: sg.melaleuca.com

MELALEUCA SOUTHEAST ASIA (MALAYSIA) SDN. BHD. (AJL931790)Unit B-10-3A & 5, Level 10, Menara UOA Bangsar, No. 5 Jalan Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia. Tel: 1800 183 183 Fax: 1800 826 826 Website: malaysia.melaleuca.com

ALL RIGHTS RESERVED. NO PARTS OF THIS PUBLICATION MAY BE REPRODUCED WITHOUT THE PERMISSION OF MELALEUCA SOUTHEAST ASIA. INFORMATION CONTAINED IN THIS PUBLICATION MAY SUBJECT TO CHANGES WITHOUT PRIOR NOTICE. SELECTED PRODUCT PICTURES ARE OF US PRODUCTS, WHICH MAY NOT BE AVAILABLE FOR SALE IN SINGAPORE AND MALAYSIA.