VanderSloot Denies Melaleuca Operates as a MLM

    Kevin Thompson is an MLM attorney, proud husband, father of four and a founding member of Thompson Burton PLLC. Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience to help entrepreneurs launch their businesses on secure legal footing. Recently featured on Bloomberg TV and several national publications, Thompson is a thought-leader in the industry.

    SMH.  It’s a new acronym I’ve recently learned.  It means “Shaking My Head.”  And that’s what I immediately did when I read about Melaleuca’s CEO, Frank VanderSloot, denying all ties to the MLM industry.

    While it certainly seems like a ridiculous exercise, I list a few obvious reasons in the video why VanderSloot is wrong to make such a distinction.

    In the video, I reference his statement to the press (included below). I also reference the FTC’s definition of a “Multilevel marketing program” as per the FTC vs. FUTURENET case.

    Note, this is not a controlling definition given the circumstances of the case; however, it gives us a good idea of how the FTC defines a MLM.

    FTC’s definition:

    “Multi-level marketing program” means any marketing program in which participants pay money to the program promoter in return for which the participants obtain the right to (1) recruit additional participants, or to have additional participants placed by the promoter or any other person into the program participant’s downline, tree, cooperative, income center, or other similar program grouping; (2) sell goods or services; and (3) receive payment or other compensation; provided that: (a) the payments received by each program participant are derived primarily from retail sales of goods or services, and not from recruiting additional participants nor having additional participants placed into the program participant’s downline, tree, cooperative, income center, or other similar program grouping; and (b) the marketing program has instituted and enforces rules to ensure that it is not a plan in which participants earn profits primarily by the recruiting of additional participants rather than retail sales.”

    Essentially, it boils down to whether there’s a recruitment component to a pay plan. If there’s an an opportunity for an override commission from downline productivity, where participants can sponsor other participants and earn income from their sales, it’s a MLM. Using the factors above, and some of the obvious factors referenced in the video, Melaleuca would clearly qualify as a MLM. There’s an enrollment fee that gives people the right to sponsor other participants (element #1) and the right to sell products (element #2), which gives people the ability to receive payment for product volume (element #3) assuming the commissions are not driven by enrollment fees.

    VanderSloot’s Statement

    (emphasis mine)

    “It’s unfortunate that someone would suggest that Melaleuca is something like Amway. It’s not. We started Melaleuca 26 years ago to market environmentally responsible products and to provide a business opportunity for folks who weren’t successful in climbing the corporate ladder and didn’t inherit wealth from their parents. We try to be champions of the little guy. My father was a little guy. And I still see myself as a little guy.

    Contrary to those who do not know us, our business model is nothing like Amway or Herbalife. I challenge anyone to find any similarity whatsoever. There is no investment of any kind unless you want to call a $29 membership fee an “investment.” And anyone can get a refund on that by just asking.

    We do offer a home-based business opportunity. But it is no “pyramid scheme.” We have long been critical of the many MLM/pyramid schemes operating in this country. I agree with those who say that typical MLM companies destroy people’s finances. Most are designed to attract people to “invest” in large purchases with the promise of “getting rich” quickly by getting others to invest. The guy at the top always wins and the guy on the bottom always loses.

    In Melaleuca’s case there is no investment and no getting others to invest. We do pay commissions to those who have referred customers based on what those customers purchase. There is really no way to lose money on referring customers. And there’s no way for customers to lose either when they’re buying high-quality products at grocery store prices. Customers just order the products they use every month directly from the factory. We have hundreds of thousands of customers who buy from us each month. They don’t ever resell anything. They don’t invest in any inventory. There can be no pyramiding without some kind of investment. In 26 years, no one has ever complained that they lost money. It’s simply not possible.

    Our business model works pretty well for most folks. We have already paid over $2.9 billion in commissions to households across the country. Our mission is to enhance lives by helping people reach their goals regardless of their beliefs, backgrounds, or affiliations. Last month we sent out almost 200,000 checks to American households alone. Members of those households tell us we are doing a pretty good job achieving that mission.”

      Kevin Thompson is an MLM attorney, proud husband, father of four and a founding member of Thompson Burton PLLC. Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience to help entrepreneurs launch their businesses on secure legal footing. Recently featured on Bloomberg TV and several national publications, Thompson is a thought-leader in the industry.

      • Excuse my frankness, but idiots like this simply contribute to the image problem the industry has had.

        • David – I’m with you, man.  Not sure where VanderSloot is going here.  

      • Kevin, I won’t split hairs about whether Melaleuca is an MLM or not.  Your article spells it out perfectly.  My thoughts are why?  Why would someone want to draw a line in the sand from this amazing industry?  More importantly, why now?  Why post March 1, 2012 with the new FTC Business Opportunity law in effect.  

        So with the new FTC Business Opportunity law in effect March 1, does this mean that Mr. Vandersloot wants his Melaleuca marketers to have to wait 7 days from enrollment to product purchase, issue a list of every customer and their contact information provided to potential business partners, etc.?I would think that Mr. Vandersloot’s “We’re not a MLM will radically change sooner than later.”

        • Great point, Michael!  And what’s ironic, the entire reason why there’s an exemption for MLMs is because of the DSA…an organization that he just threw under the bus, in my opinion.  The whole thing is very bizarre.  

        • Sally Crestin

          Michael, the only one who sells Melaleuca product is the company. The company sells the products directly to the end consumer. With Melaleuca there are no multiple levels of distribution. It is called, CONSUMER DIRECT MARKETING.
          And Kevin, Frank did not “throw DSA under the bus”…..

          • You must be with Melaleuca. I was ten years ago and in my mind could never square with it in my mind that Mela was not an MLM. It’s one of the MANY reasons I left the company. After looking at DOZENS of other companies and eventually coming to Shaklee, Mela is MOST DEFINITELY an MLM. I personally spoke with Mike Zundell when he was away from Mela and he told me he was in the room when Frank said they had to come up with a term other than MLM as he didn’t want the negative connotations associated with MLM to be attributed to Melaleuca. Smoke & mirrors?? Shaklee’s payout is very similar to Mela’s, except you aren’t limited to a 5×7 matrix. (levels) and Shaklee also sells products directly to the end customer. (As do ALL the other companies I looked at!) So Melaleuca is NOT unique here! The only things Melaleuca still has that is antiquated is you can’t see YOUR business downline in REAL time! REALLY? And it’s 2012!!!! EVERY MLM I looked at you could see your downline and business volume at ANY given time. I would love to hear that Mela changed that, but I doubt it. Sure you can get the In-touch report but that does not take the place of seeing where your business volume is at any given time. In my opinion, Frank is arrogant in his effort to set Melaleuca apart! PLUS, it’s really interesting how many terms & slogans he has “borrowed” from Shaklee now that I am there! In reality, Shaklee is the company that is set apart because of all the things documented things they do that NO other company does! And yes, he technically does throw the DSA under the bus by saying Mela is not like Amway or Herbalife. I’m really surprised the DSA lets him get away with what he gets away with!

      • Agreed Kevin,

        The DSA is a crucial part of our industry, Frank’s announcement is strange. Maybe there is more to his announcement then we know at this time.

      • SMH indeed.

      • Great commentary, Kevin.
        Odd for Frank to do that – when they just hit $1 Billion dollars, have been in business for 25 yrs and as you say, certainly benefit from the MLM community.
        Ponzi scheme, pyramid scheme – illegal. MLM – legal, valid business model. Simple, right?

        In the eyes of the FTC, would you say ‘network marketing’ and ‘MLM’ are synonymous?

        Also, it’s “Direct SELLING Association”, not “SALES”. Just to split hairs! 🙂

      • Sally Crestin

        Kevin, Melaleuca does not fit your definition of an MLM. To say that it does means that you have no clue about the functioning of the company. Frank, at least in anything I have ever heard, supports DSA. With Melaleuca there are no multiple levels of distribution. The company sells direct to the consumer. It is called, CONSUMER DIRECT MARKETING.
        To assume that Melaleuca conducts business like an MLM company, is, well, an assumption and NOT based in fact.

        • How can you say that Melaleuca does not fit the definition of an MLM as defined by the FTC? Read it again, point by point, and explain that to me please!

      • Robin W C

        Multiple Levels of DISTRIBUTION is very different than multiple levels of COMPENSATION. Multiple levels of compensation exists in virtually every business/ sales organization….especially traditional business, so because Melaleuca pays multiple people on the sales of its products does not make it Multi Level. The Manufacturer Melaleuca sells directly to all customers at the same price. There are no distributors marking up for sales profit or buying at better price points because of status. Each customer has direct relationship to the Manufacturer and buys at the same price. Manufacturer direct to consumer or “Consumer Direct Marketing ” as Melaleuca likes to call it is a very different BUSINESS MODEL than any other Direct Sales or MLM/Networking Company. They share one aspect and that’s a “Social or word of mouth” type advertising component, but thats a MARKETING MODEL….not a BUSINESS Model.

      • pday21

        This company has significantly made a change in my life and those around me. Physically, mentally, and financially. I’ve tied mlm and “pyramid schemes” and have all failed me. With Melaleuca I never lost money from the start I only saved. I spend less money for a better and healthier product.

      • Joshua

        Yep, and Melaleuca reps swallow it whole. We just ask them “so how do you make money?” – Answer: “by marketing”. Ok, and do you get paid on multiple levels of compensation? – Answer: “yes”. So it’s mulilevel…marketing. Right? – Answer: “no way, we’re far different, let me tell you…” Lol.

        • Britney

          There are quite a few differences. To name a few there is no up front investment or stockpiling of stock you then have to resell, actually you don’t sell anything rather set accounts up for people who shop for their needs directly. You do not spend additional money, only buy the things you would buy anyway at the grocery store but for better value. Oh and multilevel or MLM refers to pyramid schemes where the earlier you get in the more you make. Melaleuca is about helping people. The difference being that everyone shares evenly and only through 7 generations. The world is changing with regards to how we shop and this company is making a huge impact on how we view things and the quality we want out of our consumables. I don’t think anything on the market compares to this or will come close to what they are able to accomplish. Well done Melaleuca and Frank Vandersloot!!

          • globalray

            Melaleuca however does require a 35 point ($90 – $120 in my country) monthly order in order to qualify for commissions!!

            • howthefuckismelaleucanotamlm

              And what country would that be in? You used the dollar sign. It is about 50 – 60 dollars per month reallocated to shop at Melaleuca each month. They have over 350 products so it shouldn’t be a problem, and they are cheaper than most products.

              When you sign up you can refuse to receive any commissions if you wish, and not refer anyone. 63% of customers never refer anyone. 26% refer less than 8 people (close friends and family members). Only 11% decide to do it as a business.

              The monthly order is to continue to qualify for the 30 – 40 percent discount on the products.

              Just like costco requires a 55 dollar annual fee to shop with them.

              • Jane

                Melaleuca doesn’t sue a member because of a member joining “competing” business. You clearly do NOT have you facts straight. Other MLM’s are not Melaleuca’s competition. Melaleuca competes with P & G, Johnson and Johnson and Pfizer.

              • Kevin Thompson
              • Merry

                The people that have been sued, were not sued for joining MLMs. They were sued for giving out personal customer information to other organizations, such as phone numbers, or for recommending competing products to Melaleuca customers. When they sign on as a Marketing Executive, that is understood. Most savvy sales organizations have similar rules. If you want to earn money recommending a company or its products, you don’t recommend similar products from another company to your company’s existing customers. That is simply a rule against unethical conduct.

              • Hook,_Line_and_Sinker + Kool-Aid! ~KK:) funny
                >>~> KK©2015<~<<

      • “TRUTH” and the shall be grand enough. “TRUTH” is good enough! ~KK

      • You could call a Duck a Pig… However, it’s still a damn Duck. ~KK

      • pday21 – If you think “Breaking away/Taking away – $7’000’00.00 a month*******
        because an ME doesn’t pander to the points “Scheme” is a good deal …you have rocks in your! head! >>—> go sell your dream ~KK

        P.S. MLM policy #20 is costing “good people millions of dollars in losses.”

        Go Terry D.!!)

        http://www.businessforhome.org/2010/12/terry-dorfman-versus-melaleuca-lawsuit-max-international-and-ken-dunn/

        • The guy at the top always wins and the guy on the bottom always loses.

          They do indeed sir! ~KK

      • eric thees

        If he supported Obama the media would not even question them.

        • ObamaLover

          What a ignorant comment!

      • Merry

        Wrong on nearly every point, Mr Thompson! We do not “pay money to the program promoter in return for which the participants
        obtain the right to (1) recruit additional participants, or to have
        additional participants placed by the promoter or any other person into
        the program participant’s downline, tree, cooperative, income center, or
        other similar program grouping; (2) sell goods or service;…”

        We do not pay money to the program promoter in return for the right to do any of our marketing activities. We pay a very small signup fee to become a preferred customer, just like any buying club. (1) Any preferred customer can refer other customers and earn a commission on the referrals’ purchases. There is no extra charge for this! (2) We do not obtain the right to sell goods or services. Again, any preferred customer can refer other customers and earn commission on that customer’s purchases. We are not authorized to sell products or services. The customers purchase direct from the company. (3) While we do receive commissions on the sales of products, we don’t do the selling. The company does it all: Selling, Shipping, Billing, Collection, and Delivering. To say nothing of the wonderful customer service. And everything, including used up bottles you decide you don’t like and even your preferred customer signup fee is 100% refundable!

        Unlike MLMs, there is no large investment, no stocking inventory, and no risk. There is no need to “get in on the ground floor.” Everybody pays the same prices. Our Corporate Directors pay the same price for a tube of tooth polish as a new preferred customer. While we do have multiple levels of compensation, so does nearly every large company. P & G and J & J have advertisers, distributors, store markups,. Those people are all compensated! That doesn’t make them, or Melaleuca, a Multi Level Marketing program.

        Also, someone mentioned the minimum 35 point order, which works out to $50-60 a month. It entitles preferred customers to a 30-40% discount on Melaleuca products. Each month you purchase products you use anyway, but used to buy elsewhere. And it applies to every preferred customer. You must be a preferred customer to earn money on referrals, but there is no additional charge.

        • Why insult the messenger of change, Marry?
          Hook,_Line_and_Sinker + Kool-Aid! ~KK:)’
          >>~> KK©2015<~<<

        • This is Melaleuca’s pay plan. *One question? “How is this not MLM?
          Seems very *Sketchy and *Misleading change to change the fact! ~KK

          http://www.ken.vegas

        • Jason Anderson

          Mela-heads say it’s not MLM… because they say so. The MLM’s you’re so afraid of died off in the 1990’s. Check the DSA (you were a member for a while!): No one really has large investments, inventory, or risk anymore.

          Merry says their like a buying club, but buying clubs don’t make you purchase every month, and they don’t pay you your friends and families purchases.

          I read somehwere that Frank van Sloot said he’d never seen a successful MLM… and then he defined HIS version of MLM. Sorry, Frankie V, you can’t make a business out of something with wheels, seats, an engine and a transmission, also being members of the world’s largest car association… and then say “Cars are evil! We’re not a car company!”

          “Direct Sales” = “Multi-Level Marketing” = “Network Marketing” = “Consumer Direct Marketing”

      • #FearNoMore >>~> Ken Klocke © 2015 All Rights Reserved

        “U.S. Constitution – Amendment 1
        Amendment 1 – Freedom of Religion, Press, Expression
        Establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”
        Check It! >>~>http://www.usconstitution.net/xconst_Am1.html

        My “TEAM” built a Multi-Million-Dollar + business with Melaleuca, Inc. Truth is – I grew very tired of the “Complication Plan” Then, I documented* Melaleuca’s- [Residual Income Claims] “i.e.” Check Copies/Commission Statements – Heres what I proved, ‘with documents, .. ie Check Copies. If you don’t “PANDER”.. to the “Recruiting-Requirements” Your [So-Called] “RESIDUAL INCOME” of your Matrix/MLM/Group will go to “0” Yup… a BIG FAT “0” My check’s went from around $7,500.00 to Well-Under $200 hundred! In other words “If you STOP- RECRUITING… your check may not even cover your product order – regardless of the size of your business. CHECK IT!… Check your “TRI/RESIDUAL INCOME. Here’s how you, ‘ CHECK IT!’ Stop recruiting for “90 -days” “I dare ya!”

        Wait, there’s more… After I documented “The TRI, “Tru-Residual-Income” I got canned with a phone call from “alan pariser”… get this, then he has the NERVE to – Threaten me with a Restraining Order! “Symbolic of Melaleuca… again, don’t take my word for it…

        ‘Google >>~> Melaleuca Restraining Orders<~<< don't be shy – go for it.
        https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=melaleuca,+restraining+orders&spell=1

        "CHECK IT..CHECK IT TWICE. ~e~
        "I think The Feds need to concern themselves with what's really going on at Melaleuca,Inc." ~KK

        "People say you can get in – but, you can never get out. Think about it….

        “One thorn of experience is worth a whole wilderness of warning”. —James Russell

        "All You "Mela-Dream-Sellers" Go sell your, 'Residual-Income-Tales' ~ "Respectfully,
        Tip Of The Iceberg ^/.
        Treasures ~ KK©2015
        All Rights Reserved.

        https://en.wikipedia.org/wiki/Whistleblower_Protection_Act

        Only a life lived for others is a life worthwhile.
        Albert Einstein

      • Mr. Thompson, Sir.

        If you feel.. this link is not appropriate please feel free to delete it.
        With all due respect Sir. >>~KK~>

        https://www.change.org/p/dsa-ftc-melaleuca-come-clean-about-being-a-mlm-truth-in-advertising?utm_source=guides&utm_medium=email&utm_campaign=petition_created

        P.S. Love the new picture add feature.

        The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is. ~Winston Churchill

        Ken Klocke ©2015 All Rights Reserved

        [without prejudice*] (without malice) >>~>

        • This is Melaleuca’s pay plan. *One question? “How is this not MLM?
          Seems very Sketchy and misleading change the fact! ~KK

          • I coined “Melaleuca’s” compensation scheme –
            (RBI™) Recruiting Based Income. Recruiting based plans only pay you on your group if you recruit! Hence [NoRecruitNoPay™]

            Now, what the plans truly pay if you don’t PANDER to RECRUITING-
            I coined (TRI™) True Residual Income. A third grader can understand it…

            *Now allow me to exemplify these TERMS is REAL case scenario. I will use my Melaleuca, Inc. commission Report Summaries to clear things up..

            • Do your own math on this one! Sorry, I’d show you more documents…however, I was terminated with a phone call!
              Be clear on what you’re selling and telling!

              “Go sell your residual income tales!”~KK

              • It’s happening again! Illegal income claims FTC/ MLM/ Melaleuca, Inc.

                Frank L. VanderSloot –
                https://en.m.wikipedia.org/wiki/Melaleuca,_Inc

                He is the founder and chief executive officer of Melaleuca, Inc. His other …. In 1991 Melaleuca received a cease-and-desist order for violating Michigan’s … In 1997, the U.S. Food and Drug Administration sent Melaleuca a warning letter for. “Old Pyramid way and means resurface – like never before.

                http://awumoms.com/sample/index_en.php $19.95- $29.95
                Millions in income claims!
                https://www.google.com/search?q=advancing+with+us&oq=advancing

                Frank L. VanderSloot – Wikipedia, the free encyclopedia

                https://en.m.wikipedia.org/wiki/Melaleuca,_Inc

                He is the founder and chief executive officer of Melaleuca, Inc. His other …. In 1991 Melaleuca received a cease-and-desist order for violating Michigan’s … In 1997, the U.S. Food and Drug Administration sent Melaleuca a warning letter … #cease-and-desist #melaleuca #AdvancingWithUs #DOJ #FTC #frankvandersloot #vemma

                I was terminated with a phone call by, ‘Top Shill ” Alan D. Pariser… then I was threaten not to tell or face Aº- restraining order (also called a “protective order”) The fear went away, enough to move forward… now I’m here to stay… Why? Consumer protection, it is my DNA. #KK

                I believe Melaleuca, Inc. is a internal consumption pyramid scheme.. and, a “National Security Concern” ⇒https://www.google.com/search?q=romney%27s+super+pac+fined “Read between the lines.”

                The Billion Dollar Question? How Do They Get Away with it? #DSA #ObamaAdministration ®

        • Guest

          This is Melaleuca’s pay plan. *One question? “How is this not MLM?
          Seems very “Sketchy and Misleading” to change the fact! ~KK

      • MLK ” Last Speech” 1968 https://www.youtube.com/watch?v=98k-pjN6nl0
        #honor

      • I’m so grateful to you #1Kevin Thompson… you sir are the seeds of change. #respect

      • Don’t sell out Kevin – please feel free to remove content from My Melaleuca, story’…. and repost it? And/or email me on why my post was removed. Respectfully ~KK kenklocke@gmail.com
        https://kenklocke.wordpress.com/2015/02/04/melaleuca-check-it/

      • Perfect! I have a similar relationship with google. You are a Master Sir! 🙂

      • Tell The Justice Department To Investigate Melaleuca. Inc.
        For, false representations, misleading business practices in promoting the supply use of products! Thank you!

        https://www.change.org/p/justice-department-investigate-frank-vandersloot-melaleuca-inc?recruiter=220464266&utm_source=share_petition&utm_medium=facebook&utm_campaign=share_facebook_responsive&utm_term=des-lg-guides-custom_msg&fb_ref=Default

      • Sites looking great Kevin!

      • I think you maybe a genius Kevin T. You need to head the FTC division of ethics in direct sales.

        Treasures & Respect are all ~KK.

      • I decided just now, you are indeed a genius! You have influenced me on “The Why” I should or shouldn’t be involved with the last several businesses I’ve considered.
        btw. Including that “J” business… that offered me a “4m lg”
        Thank you again Sir:) Respect. ~KK:)

        P.S. I found a home w/ lv. You da mans…!

      • Timing is everything.

        Melaleuca CEO Frank VanderSloot Denies to Lead a MLM Company –

        ” It is my belief, “Frank VanderSloot’s Melaleuca inc., is a illegal pyramid scheme. I’m calling on our federal government for unbiased judicial review and protections, ‘ Summary of penalties sanctions and terminations actions as well as new consumer protection laws. (250m)
        “Be mindful and careful on who you’re pitching what.”~KK

        Here’s what Melaleuca is AS I SEE IT!

        If participants must recruit and buy products to be successful, or if the pay plan’s primary rewards are for building a downline, it should be considered a recruitment-driven MLM, and hence an illegal pyramid scheme. √≡ Melaleuca “NoRecruitNoPay™

        √Recruitment-driven MLM – an MLM with a compensation plan that rewards primarily distributors who recruit huge downlines, and is therefore a product-based pyramid scheme. Updates blogged here ~>https://kenklocke.wordpress.com/

        My motivation? (1)Consumer Protection. (2) Common law. (3)Constitutional law. (4) A Reckoning.

        kenklocke@gmail.com
        “confidential”

        #NoRecruitNoPay™ #FearNoMore™ “The Billion Dollar Question Remains? How Do They Get Away With It?” ~KK #ObamaAdministrationCabinet

        Got unconscionable Fees, Penalties, Takeaway and Control? Indeed Sir!

        KK© 2015 All Rights Reserved m250+-~KK

        • Kai

          Oh wow, you are just all about the posting. It’s like you’ve read the policies but you haven’t understood them. You’re quite incorrect though. As an employee of the company (not a Marketing Executive), I can promise you, 100%, that you are wrong. My role includes going through Business Policies frequently, rules, updates, enhancements, changes, etc. You are wrong. I promise you that.

          i would be happy to discuss with you all the reasons why you are misinformed though.
          In the meantime, you should really go over all the T&Cs on the Customer Agreement and Independent Marketing Executive Agreement, as well as the Statement of Policies either online or in the Building Your Melaleuca Business Booklet (or Getting Started Booklet).

      • Melaleuca CEO Frank VanderSloot Denies to Lead a MLM Company – “Public Service Matter”

        ” It is my belief, “Frank VanderSloot’s Melaleuca inc., is a illegal pyramid scheme. I’m calling on our federal government for unbiased judicial review and protections, ‘ Summary of penalties sanctions and terminations actions as well as new consumer protection laws. (250m)
        “Be mindful and careful on who you’re pitching what.”~KK

        Here’s what Melaleuca is AS I SEE IT! (RBO™) Recruiting Based Organization

        If participants must recruit and buy products to be successful, or if the pay plan’s primary rewards are for building a downline, it should be considered a recruitment-driven MLM, and hence an illegal pyramid scheme. √≡ Melaleuca “NoRecruitNoPay™

        √Recruitment-driven MLM – an MLM with a compensation plan that rewards primarily distributors who recruit huge downlines, and is therefore a product-based pyramid scheme. Updates blogged here ~>https://kenklocke.wordpress.com/

        My motivation? (1)Consumer Protection. (2) Common law. (3)Constitutional law. A Reckoning.

        kenklocke@gmail.com
        “confidential”

        #NoRecruitNoPay™ #FearNoMore™ “The Billion Dollar Question Remains? How Do They Get Away With It?” ~KK #ObamaAdministrationCabinet KK© 2015 All Rights Reserved

        Reply · Like · Unfollow Post · Edited · Yesterday at 10:18am

      • larry
      • http://melaleuca.pissedconsumer.com/melaleuca-inc-the-endless-chain-element-20150415622529.html

        Contrary to those who do not know us, our business model is nothing like Amway or Herbalife. I challenge anyone to find any similarity whatsoever. There is no investment of any kind unless you want to call a $29 membership fee an “investment.” And anyone can get a refund on that by just asking. ~Frank VanderSloot

        Well, Mr. VanderSloot, Sir.

        The human capital investment is epic! Meaning – time away from family…, time away from friends, destroyed relationships, “pandering.” + Websites, sales aids, travel, inventory, products samples, mileage, buying meals, coffees, all of it. Those twists and turns in Invariably add up!

        Let’s all get real here! Respectfully~KK

        Ps. count the costs. Jim Rohn

      • Kevin Thompson is a BEAST. ~KK “Solid” .

      • KT IS A BEAST!

        Essentially, it boils down to whether there’s a recruitment component to a pay plan. If there’s an an opportunity for an override commission from downline productivity, where participants can sponsor other participants and earn income from their sales, it’s a MLM. Using the factors above, and some of the obvious factors referenced in the video, Melaleuca would clearly qualify as a MLM. There’s an enrollment fee that gives people the right to sponsor other participants (element #1) and the right to sell products (element #2), which gives people the ability to receive payment for product volume (element #3) assuming the commissions are not driven by enrollment fees.

      • KTs a genius. ~KK

      • The eureka effect on [The soul of wit]

        Superior temporal gyrus of constant variant, principle, matter. ktb.da1/8 percenter. Checkit! https://www.google.com/search?q=gyrus&oq=gyrus&aqs=chrome..69i57j69i61.1771j0j8&sourceid=chrome&es_sm=0&ie=UTF-8

        [KT] is the Beast of Gyrus Matter.~KK

      • Update: Melaleuca – Residual income? familiarize yourself with Statement of Policies # (36) Check it! little guy.. in the corner says >>~>
        ‘Caveat Emptor’ A Latin phrase for “let the [buyer beware]

        http://cdnus.melaleuca.com/pdf/businesscenter/reference_library/download_printcenter/businessbuilders_policiesterms_2_enus.pdf

        KK© 2015 All Rights Reserved

        The foundation stones for a balanced success are honesty, character, integrity, faith, love and loyalty. ~Zig Ziglar

      • Interesting read >

        MELALEUCA, INC. “IT’S A MESS”

        Current Employee – Information Technology in Idaho Falls, ID

        I have been working at Melaleuca full-time (More than 10 years)

        Cons – Doesn’t Recommend, Negative Outlook, Disapproves of CEO

        Pros – Free products each month for evaluation. Nice amenities in the Corporate office. Low traffic southeastern Idaho community. Company events such as picnic and Christmas party.

        As a member of the IT department for a number of years I have seen lots of changes. Some good some not so good. Although nothing as severe as what has happened in the last 12 months. At least 30% of the entire department has been laid-off, quit, or fired. Sadly there will be many more to follow. A new CIO was on-boarded a year ago and that is when the trouble began. The CIO has no idea what he is doing and is a dishonest individual. Crafting tall tells and taking others ideas as his own. He is he** bent on saving the company money. And that is what he is doing. Running the IT department right into the ground. Its easy to save money when you have eliminated the need to pay anyone as they all have left. This CIO thinks he knows the IT industry well based on his current experience of working for the LDS church. Nothing could be further from the truth. New workspace in the new corporate headquarters for IT is inhumane. The entire department feels that they are treated like low class citizens being force to work on a 6 foot slab with no privacy or opportunity to have a quiet thought.

        Advice to Management

        The ship is sinking. Plug the leaks. A good first thought would be to restructure the department and look for better CIO talent. Create an exciting environment again and celebrate your accomplishments. Promote the hard working dedicated individuals and reap the benefits of doing so. Increased 401k contributions…. The CEO stated once that “There is nothing wrong with being wealthy. As long as you take those that helped you get there with you.” Melaleuca says they care about you and your retirement. However their retirement contributions indicate otherwise. Some minor changes in direction and staffing and I think Melaleuca can once again be a great company and sustain immense growth on a global scale!

        Source: http://www.glassdoor.com/Reviews/Employee-Review-Melaleuca-RVW7040601.htm

      • Frank VanderSloot “But it is no “pyramid scheme.” Yes it is! As I See iT ~KK

      • I love when your genius glitters of winner.

        “Leadership is about making others better as a result of our presence and making it last in our absence!” ~Kevin Thompson

      • Tara Woodruff

        It Hurts My Brain to Even Think Anyone Would Take Vandersloot seriously Considering He is indeed Running an MLM.

      • AD OR NOT: MELALEUCA’S BRIGHT AND SHINY BBB PAGE
        February 4th, 2016

        https://www.truthinadvertising.org/ad-not-melaleucas-bright-shiny-bbb-page/

        This baby’s got everything: links to six company social media accounts; a Twitter feed featuring positive tweets from the CEO; and a note that seemingly attempts to shield this Idaho-based wellness MLM from consumer complaints.

        By several measures, the Melaleuca BBB page more resembles the company’s website than an independent business review. But in truth such bells and whistles are not uncommon on the pages of BBB accredited businesses, which pay the nonprofit hundreds to thousands of dollars for accreditation (while the BBB, in turn, tells consumers to “Trust BBB Accredited Businesses”). Accredited businesses like Melaleuca are given several options to pimp their pages, including social media promotion, that are not afforded to their non-paying, unaccredited peers.

        Δº∞https://www.ftc.gov/comment/383603#comment-383603