Thought I might post about our recent Melaleuca experience as I want to caution others who are considering it to really know what you're getting into. I had heard about the company from a friend who was very positive about it, that the products were great, environmentally friendly and reasonably priced. And just for the next few days, enrolling in membership - which allows one to get products at a much cheaper price - was going to be half price.
It was the half price that dragged me in. I'm a sucker for a deal, although in this case it wasn't. Once I shook my head clear and started really examining it, I got out as fast as I could - which wasn't fast at all. Here's what I noticed:
1. Deceptive practices.
They tell people they are not multi-level marketing (like Amway). But they are. They seem to think that by not saying that they are, that makes them not. But the structure works the same way. You make money in the company off others who join and purchase products, and you make money off of several levels of people. Which means that they have to inflate the prices of their products to give out all these commissions. So no, Virginia, it is not reasonably priced.
My friend was not deceptive with me, but to answer my questions she referred me to another rep, who told me things that weren't true. Such as that there was lots and lots of 3rd party research to back up how superior Melaleuca products are. I asked her for it. She sent me one internet notice about the superior absorption of Melaleuca vitamins that upon further research turned out to be a hoax. She also told me that a back-up order (an automatic order that gets sent to members who forget to order one month) is not sent to new customers for several months. Guess what - a back-up order was sent to me, and it was sent to me after I cancelled my membership. She may not have been deliberately deceptive, merely misled. But misled by whom?
Another thing you might hear is that something like 90-95% of customers stay with Melaleuca. What they don't tell you is that represents month to month. Most customers do not stay with Melaleuca for more than a year.
2. There is no evidence that their products are any better for the environment than anything you get off the store shelf. They have no certification from a neutral 3rd party like
Environmental Choice3. Besides being overpriced, some of the products just aren't that good. We were especially looking for a more economical laundry detergent (when we were still under the impression that their products were environmentally friendly). But their detergent did not get our clothes clean. They really emphasize that their products are concentrated, but with the detergent I got the impression that it was a lot like that laundry disk scam - even plain water will get your clothes somewhat clean. Adding a shot of their detergent seemed to do nothing. They also said that you only need a small amount of toothpaste - well, heck, I only use a small amount of any toothpaste. And for kids stuff - my kids don't care if something is concentrated, they want to pump out large amounts of shampoo and hand soap. So the concentrated stuff is overrated.
4. They make it very easy to join and very hard to leave. To join, you just go on the website and fill in your name and some other info (like credit card # - I know, I was foolish), but to cancel your membership, they have to have a signed letter from you that has to go to their US address. And they don't readily offer information on cancelling on their website, or that you can fax the letter to ensure it is received on time. I was told if I didn't like the company, I could quit within a certain amount of time and get all my money back. I wasn't told that membership involved getting a "business kit" sent to me, and that I was supposed to send that kit back at my own expense. I refused the order that came to me after I cancelled, and while they credited my account for the products they still wanted me to pay the shipping. And they said they sent the order to me because they didn't receive my cancellation in time - apparently it arrived more than 2 weeks after I sent it. Yeah, right.
5. As part of membership, to receive the low prices, they assign points to their products and you're supposed to order a minimum # of points each month. I was assured this is quite easy to do - just separate out your grocery list of items that Melaleuca sells and buy them from them each month. It's actually easier that way! But we found that even on the first order we ended up getting something we didn't really want to get up to the right amount of points. I think a lot of people get their vitamins, which easily add up to the points each month, but their vitamins are extremely overpriced: for our family it would have been between $60 to 80 a month.
The products we didn't return were okay quality - nothing special, and quite pricey. And in the end, I did not pay shipping and handling charges for anything I didn't want because I have no problem hounding customer service until I get my way if I feel that I have been lied to or manipulated. All in all, it is a very restrictive program which for us, had we stayed with it, would have meant spending more than we ever had before. It sounds promising, but like all multi-level marketing there are a few who benefit immensely and everybody else ends up paying their salaries.
