Melaleuca vs. MLM

1. Melaleuca vs. MLM Why Melaleuca is a Different Kind of Company!! Executive Director Lorraine Debusschere

2. Why We Look Like MLM • We do word of mouth advertising • We have a work from home business • We do presentations • We earn commissions based on a Multiple Referral Organization. • That is where the similarity ENDS !!!

3. Melaleuca Business Model: Consumer Direct Marketing • Consumer Driven: Alternate Shopping Concept – just Switch Stores !!! • Melaleuca is a manufacturing company that competes for market share with other top manufacturing companies like: • Proctor & Gamble • Johnson & Johnson • Centrum & One-A-Day • Gatorade, Slim-Fast, Atkins • Clinique, MAC, Lancome, Estee Lauder

4. MLM Companies: • Rely on a few “sensational” products such as juices, magnets, jewellery, diet cures, wrinkle creams, etc that people really don’t need. New money required to purchase. Melaleuca: • Over 300 necessary products that people need and use every day – true value and benefits • No new money spent as we are all buying these types of items somewhere. • Real people buying real products they really need

5. MLM Companies: • Often require their people to buy large inventories to start their business – “front end loading” • large quantities of product purchases required each month to collect bonuses. • Melaleuca: • Customers buy what they will consume for that month. Simply switch stores.

6. MLM Companies: • Most require reselling of inventory for retail profits. • Melaleuca: • No one sells products – no home parties, no inventory, no delivering, collecting money. • All customers do their own shopping either online or by phone – delivered to their door • Pay sales tax on wholesale – not retail

7. MLM Companies: • Products are usually priced several times higher than they are really worth. • $40. bottle of juice can be purchased at health food store for $10. Melaleuca: • Products are competitively priced and better value than grocery store brands. • Show actual price comparisons in our presentation • Could compete in a store front

8. MLM Companies: • Often use celebrities or unfounded gurus with dubious credentials to “hype” products with little or no documented independent science. • False promises – both in product and/or business Melaleuca: • Develops and sells products based on sound, documented science. Developed by strong Research & Development staff with scientists & PhD’s from reputable universities. • Competing with grocery store products. • Marketed person to person from personal experience

9. MLM Companies: • “First In” wins, “Last In” loses – hype “ground floor” opportunity with high risk, high inventory & high prices. • Those at the top make most of the money. • Everyone out for themselves. Melaleuca: • Proven track record of over 25 yrs, BBB Torch Award. • Based on sound business principles and our Compensation Plan rewards those who help others. • Anyone can succeed - anytime

10. MLMCompanies • Re-Order rate = Avg. 12-15% • 200-400% Attrition – not enough value to hold customers • 95% are Business Builders • Melaleuca : • Re-Order rate = 95% From loyal customers who choose our brand each month – CREATES TRUE RESIDUAL INCOME. • 88% are just customers • 12% are Business Builders • Build a business to last a lifetime

11. MLM Companies: • Often the majority of income for top leaders is derived from the sale of training materials sold to “downline” and from motivational seminars and rallies – NOT from actual compensation plan. • Melaleuca: • Protects Marketing Executives by prohibiting individuals from producing or marketing their own materials to an organization

12. MLM Companies: • Many have “volume lines” or online access to check group volumes at month end so distributors can order “extra” products to qualify for bonuses or the next “level” if their volume is short. “You too can become garage qualified – add to your already huge inventory” Melaleuca: • Does not have a “volume line” • Commissions paid on actual real product purchases not people “buying” advancements

13. What we do: • “We educate the consumer on the value of our brand and help them switch stores for higher quality, better value products without spending any extra money or any new money… • And, we allow our customers to become business partners and compete for market share against other major manufacturers.”

14. Where do you want to shop??? Do you want to continue buying from the corporate giants – Walmart, Costco, Superstore, Safeway, Sam’s Club, etc. ?? Or support the “little guy” and bring more profits back to your community??