Melaleuca, Inc. compares to Shaklee Corp on many outward levels. Both are popular natural, nutritional health companies that effectively run not in traditional storefront locales and booths at the mall but on the internet. More specifically they are network marketing companies, also known as MLM companies. For anyone unfamiliar with those terms, or who may be confusing them with pyramid scams, a network marketing company is a legal business designed on the premise of independent distributors, not salesman on payroll, promoting an actual product or service. They also encourage potential customers to get involved with the company on a business level as distributors themselves. If you’ve ever met an Avon lady or attended a Jewelry Party in someone’s home, those are great examples of network marketing companies.
In the natural, nutritional health sector of the network marketing world, historically Shaklee Corp’s roots go back the deepest, to 1956. However, since Melaleuca debuted in 1985, both companies were founded before the internet spawned thousands of network marketing companies in the late ’90s. In terms of missions statements, both companies place high priority on offering products with positive environmental impacts. Shaklee boasts being the world’s first company to receive Climate Neutral Certification. Both companies offer a variety of biodegradable home cleansers, and Melaleuca’s namesake is actually the Tea Tree Oil that they use as a natural ingredient in many of their products.
While the target audiences of each company sometimes overlap, in actuality there are several differences in both the specific products available and how they are packaged, as well the marketing strategies used to move them. Shaklee has an obvious advantage because their name has been associated with the health and wellness industry for several decades, which results in a wider demographic association.
Their newest line focuses on the anti aging market, with a food supplement called Vivex, however they also cover vitamins, skincare, cleaning products and even air purifiers, in an effort to address all aspects of healthy living. In contrast Melaleuca, carries the same items but branches more into the home medics department, offering medicine cabinet basics such as aspirin and antacid, as well as dental care and some home decor items, such as candles. This leads to a slight difference in target market, network marketers aside. For Shaklee, many clients attribute things like the economic value of the concentration of their cleaning supplies and their lack of a harsh chemical composition. For Melaleuca the feedback generates from the variety of items to choose from to fulfill auto-shipping requirements and economic value of the ‘bundled’ packaging of the products they offer.
Because both these companies are network marketing companies it is important to examine the business opportunity available. Melaleuca operates under the 5×7 matrix plan, meaning members begin collecting 7% monthly commissions for the first five people enrolled. Bonuses become available after Director status has been achieved, which requires the enrollment of 8 members. This step makes the member eligible for applicable bonuses, however continuing forward to higher levels of Director status, indicated by ascending numerals, is attained only by the creation of Directors in that members downline.
Initial start up fees begin around $299 for start up packages, however that number can vary due to pay per use business tools needed to complete their programs, which are available on their website. Shaklee enrollment is also $299 as well, however the rise in structure is slightly more varied and requires less people in a members downline to move up the ranks. For example the Director status is achieved in the second level with a total of 6 people in the member’s downline. Bonuses are attained through a member’s first enrollee, starting at $50. Shaklee also released a new compensation plan in conjunction with their newest product Vivix, called the Tru-Infinity plan which enables members enrolled to receive bonuses to an unlimited degree from their downline.
