Ice Bucket Challenge Dumps Millions into ALS Fight

Thanks to the power of social media, a freezing-cold fundraiser and awareness campaign is now completely on fire.

The Ice Bucket Challenge encourages people to dump ice water on their heads and donate money to spread the awareness and aid in the research of amyotrophic lateral sclerosis (ALS), a progressive neurodegenerative disease more commonly known as Lou Gehrig’s disease.

To put it plainly, the challenge successfully combines the elements of a silly dare and an extremely worthy cause. In a matter of weeks, 1.7 million challengers have donated nearly $80 million to the ALS Association (link to alsa.org), a national non-profit dedicated to ALS awareness, care service and research.

The challenge has become a viral online phenomenon as supporters have used social media both to share their frigid experiences and enlist people they know to do the same. One challenger becomes three, three become nine, and so on.

Because of its immense online presence, millions of people—the general public and celebrities alike—have heeded the call either to dump ice water on their heads or open up their wallets. Many have elected to do both. As the Ice Bucket Challenge continues to spread, there is no telling how much money it will raise.

According to the ALS Association, the disease attacks nerve cells in the brain and spinal cord, resulting in a loss of voluntary muscle control and movement, and, in many cases, total paralysis. On average, people live two to five years after being diagnosed with ALS, and over 5,600 people are diagnosed every year.
Melaleuca supports the ALS Association and its mission to treat and cure ALS.

Have you taken the ALS Ice Bucket Challenge? Please send us a link to your video and we may feature it on the Melaleuca YouTube channel.

The following are just a few examples of Melaleuca employees and friends who have accepted the Ice Bucket Challenge:

Watch as Melaleuca CEO Frank VanderSloot accepts the Ice Bucket Challenge and invites others to do the same.

Melaleuca Chief of Staff Cole Clinger accepts the Ice Bucket Challenge

Melaleuca Senior Vice President of Sales Darrin Johnson accepts the challenge.

The Strength of Our Business Model

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As I review the many statistics that come across my desk each month, I am continually impressed by the diligence and hard work of those who are building a Melaleuca business. I am also impressed by how many lives are being enhanced by the concept of “helping people reach their goals.” But I am impressed most of all by the increasing popularity of Melaleuca products and the rapid growth of our customer base. Years ago, we put some of these statistics in a format that could be more easily understood when we began publishing our Annual Income Statistics in Leadership in Action magazine. Today, you’ll find that information in every edition of this magazine. (This month’s Annual Income Statistics are on page 64.)

The message behind these numbers is quite compelling—and that’s an understatement! They testify of the strength of our product line and the power behind the concept of “exceptional products at reasonable prices.” A prospective customer who studies these numbers will soon realize that there is tremendous merit in Melaleuca’s line of superior, more effective and safer products. The fact that there are more than 450,000 Melaleuca households in North America that purchase Melaleuca products every single month for no reason other than the fact that they want the best, most effective, natural products in the marketplace sends a resounding message.

The fact that one in nine of these loyal customers will eventually decide to build a Melaleuca business is also compelling. Sixty-three percent of Melaleuca customers receive no financial incentive at all! And another 26 percent receive a tiny commission each month because at some point in their lives, they referred a few customers to Melaleuca. It is obvious that their primary objective with Melaleuca is to receive the product—not to work the business or receive any financial reward. This is not to say that these customers do not appreciate their monthly checks (it is much better than what they receive from Safeway or Wal-Mart), but the tiny check that they receive is clearly not their main incentive for being Melaleuca Preferred Customers.

The strength of Melaleuca’s business model is that it is based on hundreds of thousands of customers purchasing better products each month at better value than the grocery store brands. The fact that 89 percent of Melaleuca customers are customers for the sake of being customers also testifies to the strength of Melaleuca’s business model and assures those who decide to build a Melaleuca business a bright and exciting future.

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Approximately 11 percent of those who have been introduced to Melaleuca products and have become Melaleuca customers eventually decide to build a Melaleuca business and invest the time and effort to reach Director status. That means they have probably spent 50 hours or more at some point in their lives introducing Melaleuca products and catalogs to prospective customers. (Although some achieve Director in a single day, we estimate that it takes the average person about 50 hours of concentrated effort, on average, to become a Director.) One might spend those 50 hours in a single week or over a period of a year or longer. A serious business builder must use time wisely. Certainly one could spend a lot longer than 50 hours on unproductive activities and still not enroll eight customers.

One could argue that a 50-hour investment does not a business make. But achieving Director status with eight to 10 customers is a good start. Customers are precious to us. We should take care of them. If we do, not only will they remain loyal customers but many will refer other customers as well. On average, four out of 10 customers will eventually refer from one to seven new customers each to your business. On average, only one out of nine will enroll eight or more customers and reach Director status.

The danger in talking numbers or percentages is that someone might make the mistake of thinking that building a Melaleuca business is somehow a game of chance or of beating the odds. This could not be further from the truth. The value of understanding the numbers is only to create valid expectations of others. The statistics indicate what you can expect others to decide to do.

As a rule, 63 percent of your customers will not refer any new customers to your business. But that will not diminish their value. As they continue to buy your products each month directly from the company, your commission on their purchases will provide valuable income that you can count on each month. On the other hand, approximately 37 percent of your customers will eventually refer at least one customer to your Melaleuca business. Many will make a small commission on the customers they introduce to Melaleuca. Sure, they are just “dabbling” and many may not develop the skills to make a good product demonstration. You will want to help them. In fact, in the beginning you should request help from your enroller in making presentations. You will learn from your enroller as you perfect your presentation skills. Then you will be prepared to help others.

As the numbers show, we value and give generous rewards to those who help us find and keep loyal customers. Superior products, reasonable pricing, generous compensation—they all work together to create the most successful business model in the marketplace. Whether you decide to be a loyal customer or a business builder, we appreciate your decision to be a part of Melaleuca! Our endeavor is to introduce superior Melaleuca wellness products to those we care about so they can have longer, more vibrant and healthier lives. Those who do that consistently will prosper with residual income that will bless their lives forever.

Sincerely,
Frank VanderSloot

Once You “Get It” You’ll Focus More On The Products

A MESSAGE FROM CEO FRANK VANDERSLOOT
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Melaleuca is becoming known around the globe as the world leader in wellness products. A combination of the company’s focus, bright scientists and good fortune has thrust Melaleuca into the spotlight as the company has introduced one lifechanging product after another. There are almost too many products to keep track of—over 360 in total, all derived from natural ingredients combining the most powerful resources of nature and science. There is so much to learn! Sometimes it seems like too much for any one person to try to comprehend.

Melaleuca’s exceptional products continue to propel the company toward unprecedented growth. Hundreds of thousands of American and Canadian households have been converted to the Vitality Pack®, GC Control™, Phytomega®, ProvexCV®, Diamond Brite® and The Gold Bar®. A host of Sei Bella® products have found their way into the vanity cabinets of tens of thousands of discerning women who not only care about how they look today but are taking measures to keep their skin healthy and young to ensure they will still be looking great 30 years from now. These people understand the importance of good nutrition and quality products for their health today as well as tomorrow. Wellness is important to them.

Thousands of new customers join the Melaleuca family every month, and, in the process, those who consistently spread the good news of Melaleuca’s exceptional products prosper. The degree to which many of these families are prospering is truly amazing. Melaleuca has already paid out over $3.5 billion in commissions—yes, that’s billion with a B—to those who’ve referred Melaleuca products to their friends and neighbors. Thousands are supplementing their full-time incomes with this part-time Melaleuca business and providing an additional $300, $500 or $1,000 per month to their family budgets. They are prospering because they have dozens or even hundreds of customers who purchase Melaleuca products month after month.

Many extra-industrious Melaleuca leaders earn hundreds of thousands of dollars per year and several Corporate Directors have now exceeded $1 million per year. And it’s all because of the products. These people are prospering because they have thousands of loyal customers who buy their Melaleuca products month after month.

Melaleuca has established itself as the best, most viable, most lucrative and most dependable financial opportunity in North America.

We are thrilled with the success that so many Melaleuca Marketing Executives are enjoying and with the literal fortunes that are being made by those marketing Melaleuca
products. The success of these very hard-working people is very fulfilling for me.

At the same time, I am concerned about a new element that has started to develop within the ranks of some of our newest business builders. Most of those to whom I am referring were previously with multilevel companies. We have always had a few people with multilevel backgrounds coming to Melaleuca each month. But now they are coming in substantial numbers because they have heard about the money! And that is part of what is causing the problem. Many with MLM backgrounds haven’t taken the time to learn about our exceptional products. In fact, many of them skip right over learning about the science behind the Vitality Pack or GC Control or Diamond Brite. They are more anxious to learn about the money! And therefore, all they are telling their friends about is the money! Since they haven’t studied the product line themselves, it is impossible to tell someone else much about the products. But they are enrolling “people” like crazy—because of the “business opportunity.”

These well-meaning people are teaching the paradigms that they learned at the multilevel company they just came from. They think it’s the “compensation plan” that will attract people to join up with them. In fact, they don’t even talk about enrolling “customers”; they talk about enrolling “people” or “getting people in.” They openly state they are not looking for customers. They are looking for “business builders.” In other words: They just don’t get it! They do not realize that the reason for Melaleuca’s exceptional growth is because of our products. They don’t understand that the reason that Melaleuca has outpaced all the direct-selling and multilevel companies in America is because of the products. Of course, we do have a spectacular business opportunity, but it’s important to note that people only earn commissions when their customers buy products. And since no one is allowed to buy huge quantities of inventory at Melaleuca, customers only buy the products they can use on a monthly basis. In other words, to make money, a businessperson needs lots of customers purchasing only a little each month.

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Please understand: Business builders without customers are without merit! Unfortunately, this statement doesn’t hit home for the true, dyed-in-the-wool multi-levelers. They have always been taught to just go after business builders. Someone who does not want to work the business is of little value to them. They would rank someone who is “just a customer” as lower than swamp scum.” I know I am repeating myself, but I’ll say it again: They just don’t get it!

Many of our friends who were formerly with multilevel businesses are wise enough to recognize the difference between Melaleuca and their old company. They see the folly of using multilevel terms and of seeking only “business builders.” But too many just don’t get it!

I feel a sense of urgency to communicate to these thousands of former multilevel marketing executives who “don’t get it,” because if they continue to operate Melaleuca like a multilevel business, they will end up with the same results as found in all multilevel companies. Their businesses will grow rapidly at first with all of the excitement created by the money story—and then they will start to crumble because their businesses were opportunity based and not product or customer based.

A company’s reputation determines its future in the marketplace. Consider Amway’s and Avon’s reputations across the United States and Canada. Avon consistently has enjoyed a great reputation, but people everywhere cringe when they hear the word “Amway.” Why the difference? Because of the approach these companies have used when approaching prospects. Avon used a product approach. Avon became known for great, fun products and the friendly Avon lady. Amway became known as “that money deal.” Amway slowed down long ago in the United States and is in a free fall in many nations around the world. It’s not that Amway people are bad people. They are great people! They just used an approach that turns most people off.

I am asking our Marketing Executives across the company to protect our good name and stop using multilevel concepts and multilevel terms to describe our business. Statistics show that over 60 percent of the people in the United States have a negative opinion about multilevel companies and only 5 percent are interested in developing a home-based business. But 95 percent are interested in buying quality products from a catalog! Those who are only interested in business builders are passing up 90 percent of the market potential and are giving Melaleuca an undeserved “multilevel-like” reputation in the marketplace.

We need to make sure our presentations are focused on products first, not opportunity first. Make sure it is clear you are looking for customers first and business builders second. Talk about enrolling “customers,” not about enrolling “people.” Make sure you get rid of multilevel terminologies like “upline,” “downline,” “pin level,” “ground-floor opportunity” and “getting in.” These terminologies are multilevel concepts that make it appear like we are offering some scheme, gimmick or program. They are not business concepts. If we use gimmicks or multilevel terminologies to discuss our business, people will get the wrong impression. Let’s not do it! It’s not who we are and not who we want to be!

Any great businessperson knows that all of the revenues come from moving product to end consumers. Those who do that will consistently prosper. We have a fantastic business opportunity for those who understand our future is bright only because of our exceptional product line. Those who put Melaleuca’s exceptional financial opportunity in front of Melaleuca’s
exceptional products will have left out the most powerful ingredient in building a blossoming Melaleuca business. The money is exciting, but it only comes to fruition when people have hundreds of loyal customers. And you will not have loyal customers unless you take time to explain some of the science behind Melaleuca’s products.

We welcome the thousands who were formerly with multilevel companies. We hope that you will find a home here after you recognize that the only reason we are successful is because our products are of better quality and better value than anything else available anywhere in the world. We hope you will value every customer and communicate their importance to your success in every presentation. If you do this, you will prosper and you will gain the respect of those around you because they will realize that, after all, you really do get it.

Sincerely,
Frank VanderSloot

A Message From Frank VanderSloot Chief Executive Officer

frank vanderslootOver the years, I have talked to many who say they are surprised at Melaleuca’s unprecedented rise in the marketplace. They often ask what the secret is to our success. The answer is simply that we have much better products than the grocery store brands. People want to live healthier, longer, and more vibrant lives. They find Melaleuca products are a great asset in achieving those goals. Melaleuca is quickly becoming the world leader in quality wellness products.

The reason hundreds of thousands of families are choosing Melaleuca products over the grocery store brands is quite simple. Many manufacturers are yielding to the tremendous pressures in today’s marketplace to cut prices and therefore cut quality. Wal-Mart and other national chains control the distribution channels. Even companies like Procter & Gamble are placed under tremendous pressure to cut prices in order to get shelf space in the stores. They are forced to lower their price on the one hand and to maintain profit margins on the other. The only answer for these manufacturers is to cut costs by using cheaper ingredients or diluting their products with cheap fillers such as water. The trend for many manufacturers to dilute products has gotten so bad that Wal-Mart announced that regardless of the price pressures they put on manufacturers, Wal-Mart would not carry any laundry products with less than a 2x concentration, which is twice as concentrated as these products were previously. Procter & Gamble responded by finally bringing its products (like Tide®) up to the minimum 2x standard and advertising their “improvement” on national TV. Quite frankly, we are not very impressed. Melaleuca’s products have always been more concentrated than Wal-Mart’s new “standard.” In fact, Melaleuca’s MelaPower was at 3x concentration for more than 20 years and it’s now concentrated at 6x.

The demand for these superior products makes building a Melaleuca business even more profitable and more rewarding. This brings up another good reason for you to buy Melaleuca products. Because when you purchase Melaleuca products, you are not buying from the wealthy owners of Wal-Mart, Lever Brothers, or Johnson & Johnson. You are actually buying from the family or friend that introduced you to Melaleuca. In other words, instead of buying from the corporate giants, you are buying from “the little guy.” In most cases it is from someone you know. Almost all of our 350 products are significantly superior in effectiveness, quality, and safety to any of our competitors in the marketplace. There are hundreds of very good reasons to choose our products over the grocery store brands. Reducing costs by diluting products with water or other fillers is not the only way that national brands violate their customers’ trust. Compromising quality ingredients to save a buck is also prevalent in many of the grocery store brands. When people are dealing with their health, they don’t want to make compromises. And they know that Melaleuca will never compromise on effectiveness or safety. Because of the constant pressures of the mass manufacturers to lower price and quality, the demand for Melaleuca’s superior and far more effective products is on the rise.

So thank you for your loyalty to Melaleuca’s wellness products. We promise to keep our commitment to always provide the best so you can have a healthier, longer, and more vibrant life.

Sincerely,
Frank VanderSloot

Melaleuca Is Breaking The Mold

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CHANGING LIVES WITH CONSUMER DIRECT MARKETING®

Frank VanderSlootIn 1985, a modest company set up shop with nine employees and eight exceptional products. And although the company’s opening in a tiny strip mall in southeast Idaho was accompanied by little fanfare, Melaleuca Inc. was about to innovate a concept that would revolutionize the way hundreds of thousands of customers and entrepreneurs do business.

CONSUMER DIRECT MARKETING, the concept of partnering with Marketing Executives rather than advertisers and retailers, is what set Melaleuca apart from other companies in 1985 and what continues to make it stand out today. Chances are, whether you know it or not, Consumer Direct Marketing probably played a significant role in attracting you to Melaleuca.

When brand-new customers hear about Consumer Direct Marketing today, the concept sounds intuitive—the sort of thing that leaves you wondering, “Why didn’t anyone think of this before?” But to most of the business world, even in an age when word-of-mouth advertising is increasingly popular, Consumer Direct Marketing is a radical idea that most companies refuse to even experiment with.

“The idea that we would share, or that any company would share revenue with its customers is unheard of,” CEO Frank L. VanderSloot told the audience at Melaleuca Convention 2012. “No major marketer
could afford to do that. Even if they tried to share their profits with their customers, the shareholders and board of directors would step in and say, ‘That money is ours.’

“But what an awesome model this is for us to share with the people who buy from us, to allow them to have a business of referring customers to us, to have everybody prosper together. It’s a unique idea that is changing the game.”

Exceptional Products

exceptional-products“I like Melaleuca products, and I think you get more for your money,” says Tamara Driscoll, a 25-year Melaleuca customer from the small town of American Falls, Idaho. “You just have to experience them for yourself and you realize they’re better than what you get at the grocery store.”

For a business to be sustainable, it must provide products that customers really want. Right from the beginning, Melaleuca’s products provided healthy, natural alternatives to the products you’d find at the local grocery store. Customers redirected their shopping dollars from the grocery store to Melaleuca, and in exchange, they received a healthier, safer and more effective product.

“We trusted in the superiority of our products and had faith that they would generate enough excitement for people to talk about,” Frank says. “We simply formulated exceptional products we knew customers would love to share with others.”

At Melaleuca, you aren’t required to purchase more than you need each month. On the contrary, Melaleuca encourages customers to purchase only what they’ll use so they can then purchase products again the next month. As a result, approximately 95 percent of customers who shop at Melaleuca on any given month will shop again the next month.

Unmatched Quality

unmatched-qualityWhat no one anticipated in 1985 was how big-box retailers would someday change the consumer products landscape. It’s no secret that the Walmarts and Costcos began giving customers products at lower costs, but those price reductions needed to come from somewhere. Under pressure from retailers, manufacturers looked for shortcuts to reduce their costs—using cheaper ingredients, including fillers, etc.

Once again, Consumer Direct Marketing® gave Melaleuca an unforeseen advantage. Instead of competing with other manufacturers for space on the store shelves, Melaleuca ships products directly to customers. And because it controls almost the entire process from production to delivery, Melaleuca is under no pressure to water down its products.

“Where else can manufacturers cut costs?” Executive Director III Paulette Magaw says. “They start using more diluted, watered down and nonfunctional ingredients. But Melaleuca, on the other hand has drawn a line and said, ‘Our products are going to use premium, worldclass ingredients.’ Most big-box store customers don’t even think about what’s going into their products; they just go to the
store and throw things in their carts out of force of habit. But an educated consumer will make better choices.

“The value of our products is not in what we say about them; our job is really to create enough curiosity for customers to see the value in making the purchase. The value in the products is how they perform, and our products are safer, healthier and more effective than other brands.”

There’s another advantage to Consumer Direct Marketing: It’s convenient. Instead of taking hours out of her day to drive to the store with three children in tow, a mother can simply jump online, shop at Melaleuca.com and receive a package a few days later without ever leaving her home.

“I tell customers, ‘Shopping at Melaleuca is a bit like a Sam’s Club® or a Costco®, but we’re more like Amazon® shopping,’” Executive Director II Theresa Buckley says. “These days, everyone has some experience with shopping online. And with the products Melaleuca has, I can’t imagine how many different places or websites I’d need to go to get similar products. It would take hours, but instead it takes maybe 20 minutes at Melaleuca.com.”

The benefits of a Preferred Customer membership don’t stop there. Melaleuca has used its enormous customer base to negotiate for hundreds of discounts on services (such as Melaleuca Home Security, Lifelock® Identity Theft Protection, etc.) and through online retailers (such as Nike®, Target®, Adidas® and more).

“It’s more expensive to not be a Melaleuca customer,” says Executive Director VIII Steve Gordon, who recently saved thousands of dollars on his life insurance policy through Melaleuca. “Our next-door neighbor is a Director III who saved $600 a year on his homeowner’s insurance—that just about covers the cost of his Melaleuca product orders. If you’re using Melaleuca’s services, you can offset the price of your products even if you aren’t building a business.”

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The Little Guy

If a Preferred Customer membership entitled customers to nothing more than fantastic products and services, that would be satisfying enough for hundreds of thousands of families around the world. But for thousands who are also Marketing Executives, Melaleuca is much more: It’s an opportunity to add to their household incomes.

“I love that we can share these products and this business with anyone,” Executive Director VIII Lynn Crescenzo says. “It doesn’t matter what their background is, I can look them in the eye and honestly say, ‘I have something that can really help you.’ We’ve given hope to a lot of good people who really need hope.”

Frank’s vision for Melaleuca 28 years ago was to create a company that would give “the little guy”—the average family—an opportunity to get ahead, and that’s exactly what Melaleuca is. It’s accessible to anyone who’s willing to invest the time and effort to build it.

“That’s been a real motivator for us at Melaleuca: to help the little guy get ahead,” Frank has often said. “And I think we have a vehicle that can help people have a great life if they apply it.”

The beauty of having a business rooted in Consumer Direct Marketing® is that your income relies heavily on the actual purchases and consumption of products by real customers. So, while you might share a presentation with or refer a few customers once, you’ll continue to receive income from the purchases of those customers for as long as they continue to shop with Melaleuca. And because
approximately 95 percent of customers who ordered last month will order again the next month, your Melaleuca business can provide a reliable source of residual income.

“The average family is spending a lot of money each week on household consumables,” Executive Director V Frances Martin says. “When you walk into Walmart® and spend your money there, who do you think benefits? The manufacturer, the advertiser, the stockholders and the store—those four entities all benefit from your purchase, and that’s how business has been done in the United States
for decades.

“What Melaleuca introduced in 1985 is a partnership with Marketing Executives who are also customers. And when you shop at Melaleuca, they take revenue from that purchase and share it with seven families.”

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A Rewarding Business Model

When Melaleuca opened for business, Frank hoped it would help families add a few hundred, or even a few thousand dollars to their household incomes each year. But today, hundreds of “little guys” are bringing home six-figure incomes from Melaleuca, and a few are earning more than $1 million each year.

“We’ve earned $9.7 million so far with Melaleuca; it’s amazing what we’ve accomplished, and we owe a big thanks to Melaleuca,” Corporate Director III Mark Atha says. “At Melaleuca, our commissions
are paid based on the sale of product to the end consumer.

Melaleuca rewards the producer—the person who is most responsible for referring that customer and helping others do the same.”

A Melaleuca business is an entrepreneur’s dream come true. It’s a business that doesn’t require you to take out a loan for an enormous upfront investment, rent storefront property or get an MBA. It doesn’t involve hawking overpriced or impractical products, keeping an inventory or any of the other drawbacks inherent in multilevel marketing.

It’s a business you build from home by sharing products that are effective, that address real wellness needs and that leave customers healthier and happier. It’s a business of helping others change their lives and achieve their dreams. It’s an opportunity to create freedom, achieve financial stability and give your family more of what matters most.

“This is the most noble profession on the planet because you end up enhancing and changing people’s lives,” Corporate Director VI Alan Pariser says. “A Melaleuca business is the one place that I know of where the little guy, if he works hard, can build a business that will take care of him for the rest of his life.”

Happy Independence Day

Melaleuca Freedom CelebrationWe wish you and yours a very safe and happy 4th of July. As you may already know, Melaleuca puts on a very large fireworks celebration on July 4th in the town where it is headquartered. It is called the Melaleuca Freedom Celebration. It is a sight to be seen.

July 2-July 4 is Road to Executive Director.

Twice a year, Melaleuca invites first-time Senior Directors to its headquarters in Idaho Falls, Idaho, for three days of training, inspiration and a close-up look at Melaleuca’s headquarters. It’s Road to Executive Director!

When you advance to Senior Director, Melaleuca will pay for your transportation, accomodations and meals (some guidelines apply). Hear from President McKay Christensen, members of the Regional Sales Team, top Executive and Corporate Director and, of course, Melaleuca CEO Frank L. VanderSloot. Start building your business to Senior Director and let Melaleuca show you, in person, how to grow it to Executive Director and beyond!

If you haven’t had the chance to see the fireworks, here is a short video, but nothing like what you will see in person!