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Page 1: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

an introduction toD E L I V E R I N G W E L L N E S S

Page 2: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

1

Who Is Melaleuca?

• 100% referral marketing • Proven track record, debt-free company

• Solutions to today’s biggest health problems• Safer for your family and the environment• Higher-quality products

• 95% customer reorder rate every month• Cash bonuses and ongoing commissions to

customers who refer other customers

• S$29/RM70 membership• 30%–40% discount off regular price• Shop monthly, choosing from 350 unique products

The Wellness Company

Exceptional Products You Use Every Day

Preferred Customer Membership

Revenue Sharing

Page 3: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

Since its beginning in 1985, CEO Frank L. VanderSloot’s passion for helping the average family has been the driving force behind Melaleuca’s mission.

Our Mission:To Enhance the Lives of Those We Touch by Helping People Reach Their GoalsSM

2

Page 4: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

R EV E N U E S H A R I N G 3CUSTOM E R S H O P P I N G

Getting Outof Debt and Securing YourFinancial Future

Achieving Balance,Happiness, andPeace of Mindin Your Personaland FamilyLife

Making YourHome and

Environment aCleaner, Safer

Place

Living a Longer,

Healthier, More Vibrant Life

P H Y S I C A L F I N A N C I A L

E N V I R O N M E N T A L P E R S O N A L

What’s Most Important in Your Life?

Page 5: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

US$1.2 billion in annual sales, debt-free, operating in 18 countries across the globe, with one of the largest e-commerce sites on the Web

850,000customers shop

with us monthly—and hundreds of thousands

receive a monthly check for referring

others to shop with us

OVER 350 PRODUCTS people want and use daily

A Better Business Bureau AAA rating

Discover Melaleuca for Yourself

4

Families all over the world are discovering Melaleuca—and enhancing their lives.

Page 6: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

TRADITIONAL BUSINESS MODEL

The customer is outside of the

partnership

Up to 63% of the price of

grocery store products go to advertising and

middlemen

ManufacturersProcter & GambleColgate-Palmolive

Johnson & Johnson

AdvertisersTV

Radio Print Media

RetailDistribution

WalmartTrader Joe’s

Whole Foods

Customer The Result?• HIGHER-QUALITY PRODUCTS• SAVINGS AND BETTER VALUE• REVENUE SHARING

CONSUMER DIRECT MARKETING®—MELALEUCA’S PARTNERSHIP MODEL

DIRECT TO THE CUSTOMER

WORD-OF-MOUTH REFERRALS

MelaleucaManufactures

andShips Direct

Customer

5

Melaleuca: A Different Kind of Company

Page 7: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

®

6*Please check your local country catalogue for product availability.

Simply Switch Stores and BrandsOver 350 Exceptional Products You Use Every Day

Page 8: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

7

CLEAN CONSCIENCE

chlorine bleachammonia harsh chemicalsformaldehyde

CLEANHOME

• Effective, naturally derived ingredients• No abrasives • pH-balanced (non-alkaline)

CLEANSTREAMS

• Super-concentrated• No fillers • No phosphates

NO CHILD SAFETY CAPS REQUIRED

EcoSense®: The Safety You Want, the Cleaning Power You Need

NO

Safer for your home

Page 9: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

EcoSense®: Concentrated Means Less Waste and More Savings

MelaPower® 6x96 loads

3 Bottles of Brand T96 loads total

VS

8

=

3 Bottles of Brand S 96 fl. oz. total

Tub & Tile™ Makes 6 Bottles = 96 fl. oz.

S$18.50/RM48.00COMPETITOR PRICE

VSS$10.50/RM26.00PREFERRED CUSTOMER

Compare and Save

S$27.30/RM63.85

S$39.00/RM81.00

PREFERRED CUSTOMER COMPETITOR PRICE

6X CONCENTRATED

=

Page 10: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

Better ValueCompared to Drugstore Brands

9

NATURAL DENTAL CAREFeaturing pure T40-C3™ Melaleuca Oil

SKIN PROTECTIONAdvanced dry skin, acne, and sun care

COMPLETE FIRST AIDAntiseptic and herbal ingredients

naturally soothe and help speed healing

Melaleuca Oil is well-known for its soothing, penetrating, and antiseptic healing properties

Page 11: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

Does Your FamilySuffer from

Severely Dry Skin?

Clinically proven to work faster, better, and last longer than Brand E®!

7x as effective vs. Eucerin on moisture retention

BRAND E

RENEW®

MOISTURE RETENTION

*Clinical study with dry skin from eczema

10

PROVENto leave dry

SKIN feeling

SOFTER,smoother, and

HEALTHIER-LOOKING

in just 24HOURS.*

Page 12: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

KOALA PALS® FOR KIDSAFFINIA™ HAIR & FACIAL CARE BATH & BODY ESSENTIALS ALLOY® FOR MEN

TM

11

Affinia™ hair care is formulated with gentle, sulfate-free cleansers made from larger molecules that wash the surface of the hair and rinse away without causing damage. And that means softer, stronger, healthier-looking hair for your whole family.

Sulfate-free Affinia cleanses hair while leaving the cuticle smooth and soft

SULFATE-FREE CARE FOR EVERY TYPE OF HAIR FOR LESS THAN S$10/RM18.05

HAIR CARE

Page 13: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

You Are Beautiful.

12

Naturally effective and clinically proven to enhance your true beautySkin Care, Cosmetics, and Hair Care

ANT I -AG ING SKIN CARE

CL IN ICALLY PROVENLUXURY CRÈME

SALON-QUAL ITYLUXURY HAIR CARE

VIBRANT COLOR COSMETICS

28 Astonishing Results inSEI BELLA LUXURY SERIES

DaysComing from Extremely Luxurious Ingredients

Improvement in sallow skin

Smoother and even skin tone

Improvement in moisturization

Balanced skin pH levels

Improvement in skin tightness

65%

54%

31%

31%

22%Competitor Brand L's

caviar product

Crème Concentrate

Wins Over

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PATENTED TECHNOLOGY • PROVEN SCIENCE

OLIGO TECHNOLOGY: Patented Oligo technology works Just Like Nature.® Oligo binds minerals to organic proteins and fibers to deliver minerals similarly to the way they are found in fruits, vegetables, and other whole foods.

The Proven Results:No other mineral form is more absorbable or protects critical antioxidant vitamins better than the patented power of Oligo.*

Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions.

Want More Energy

The Answer: Oligo®!*

and Better Health?

* These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

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The World’s Leader in Natural SolutionsFACT: Cardiovascular health is the #1 health concern in both

Singapore and Malaysia.

Heart Health

14

FiberWise®Helps reduce LDL

cholesterol and promotes a healthy digestive tract.†*

Provex™/ProvexCV®

Helps promote healthy blood vessels and blood pressure in individuals already in a

normal range.*

Phytomega®Naturally helps lower LDL

cholesterol‡, maintain healthy triglyceride levels, and support

proper heart function.

* These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

Supportive but not conclusive research shows that consumption of EPA and DHA omega-3 fatty acids may reduce the risk of coronary heart disease. A daily dose of Phytomega (4 softgels) supplies 550 mg of EPA and DHA.

‡ Foods and supplements containing at least 400 mg per serving of plant sterol esters, eaten twice a day with meals for a daily total intake of at least 800 mg, as part of a diet low in saturated fat and cholesterol, may reduce the risk of heart disease. A daily dose of Phytomega (4 softgels) supplies at least 2,000 mg of plant sterol esters.

† Diets low in saturated fat and cholesterol that include 7 grams of soluble fiber per day from psyllium husk may reduce the risk of heart disease. One serving of FiberWise Drink provides 3.4 grams of this soluble fiber.

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Exercise and Weight Loss Products That Fuel Your Active Lifestyle

FACTS: • 68% of women and 72% of men are overweight• Regular exercise reduces the risk of heart

disease, diabetes, and osteoporosis

Access®

Patented technology that helps your body turn fat into fuel for

greater endurance and proven fat loss and body-

toning benefits.*

GC Control™

Clinically shown to support and balance blood glucose levels

already in a normal range and promote healthy insulin

response in healthy individuals to minimize sugar cravings.*

Sustain® SportProvides hydration and

endurance with twice the electrolytes and fewer calories

than most sports drinks.

Replenex®

Maintains healthy cartilage, promotes elasticity, and

eases joint discomfort with our patent-pending

A.I. Blend.*

* These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

Page 17: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

16

Vitality Pack

• Vitality Multivitamin & Mineral™

• Vitality Calcium Complete®

Vitality 4® adds:

• CellWise® Complete

Antioxidant Protection

• Florify® Digestive Support

Vitality 6® adds:

• Provex™ / ProvexCV® Cardiovascular Health

• Phytomega® Helps Lower Cholesterol Naturally

SAVE AT LEAST

15%SAVE

AT LEAST

25%SAVE

AT LEAST

28%

SPECIALIZED DAILY PACKS TO MEET

Your Nutritional Needs

These statements have not been evaluated by the Food & Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

Page 18: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

There’s no better way to switch to higher-quality, healthier, and safer products than the Value Pack. And when you purchase a Value Pack, the savings really add up!

Value Pack Price: S$288/RM830 100pts

SAVE OVER

20%

Value PackA Smart Choice

The Essentials Pack is the ultimate value, with all the essentials to convert your

home to Melaleuca’s better, safer products.

Essentials Pack Price: S$388/RM1040 140pts

SAVE OVER

20%

*Product configurations may be different for different countries. Please check your local country catalogue for updated product configuration.

Essentials PackA Smarter Choice

17

Page 19: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

Acid ReducerAcne TreatmentAfter Shave LotionAfter Sun GelAllergy MedicineAll-Purpose CleanerAntibacterial

Liquid Soap Antibiotic OintmentAntifungal CreamAnti-Itch CreamAntioxidantsAntiperspirantBath BarsBath OilBathroom CleanerBody LotionBody WashBreath SprayCalciumCandlesCerealCereal BarsCleaning WipesCold MedicineCologneConditionersCough DropsCough Syrup

CrackersDental FlossDeodorantDishwashing DetergentDisinfectant

Energy DrinkEyelash PrimerEyelinerEye SerumEye Shadow Fabric Softener Face Powder

Facial CleanserFacial CremeFacial MoisturizerFacial ScrubFacial TonerFever Reducer

Fiber BarsFiber CerealFiber DrinkFirst Aid KitFlavored DrinkFoot LotionFoundation Primer

Fragrance SpraysFurniture PolishGlass CleanerGumHand CremeHand Sanitizing Gel

Healthy ChocolateHeart Health SupportHeavy-Duty CleanerHerbal TeasHot CerealImmune ComplexJoint Supplement

Laundry BrightenerLaundry DetergentLip BalmsLip ColorsLip GlossLip Pencil

Lip PlumpLip TreatmentLiquid FoundationLiquid Hand SoapMakeupMakeup RemoverMascara

Meal ReplacementMelaleuca OilMicrowave PopcornMineral FoundationMouth Rinse

Multivitamin & Mineral

Muscle Pain CreamOmega-3sPain RelieverPerfumePet Shampoo

Pet TreatsPowder Blush Powder BronzerPowder FoundationPrenatal Omega-3Prenatal Vitamins ProbioticProstate SupportProtein ShakesRehydration DrinkSanitizing WipesShampoosShave GelShave LotionSleep Aid SpongeStain RemoverSugarless GumSunscreen Tooth GelToothbrushes Tooth PolishUrinary Tract SupportVision Support Weight Management

Shakes

18

Simply Switch Stores for Products You Use Every Day

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19

• Manufactures using Just-in-Time (JIT)

• Lowers operating costs

• Eliminates storage and warehouse expenses

Preferred Customers simply redirect about

S$75/RM190 toS$90/RM240 of their

monthly shopping to Melaleuca.

With predictable monthly shopping, Melaleuca:

Melaleuca passes the savings back to you.

By partnering with Melaleuca, you get higher- quality, fresher products

and a 30%–40% discount

every time you shop.

How DOES Melaleuca Increase Quality

AND Save You Money?

When you purchase from Melaleuca, your products come directly from

Melaleuca to you.

THE VALUE OF PREFERRED CUSTOMER MEMBERSHIP

Page 21: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

See Melaleuca Customer Agreement for more details.

With Your Monthly Loyalty You’ll Get:• Better, Safer products

• 30%–40% discount

• No risk—you can cancel your membership benefits at any time

• Up to 10% in Loyalty Shopping Dollars

Simple Steps to Become a Melaleuca Preferred Customer1. One-time S$29/RM70 membership fee

2. Simply switch stores to higher-quality products

3. Shop each month for a minimum of 35 Product Points (with over 5,000 Product Points to choose from)

4. Personalize your Backup Order

Personalize your Backup Order with your family favorites. If you forget to shop during the month, we’ll send your preselected order, conveniently charge your account, and protect your membership discounts and benefits.

Shopping with Melaleuca

FEELS GOOD because you’re

doing good.

Preferred Customer Membership Has Its Benefits

20

About Product Points• Example: Renew™ Lotion,

7 Product Points

• Here is an example of 35 Product Points:

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21

What Amount of Extra Income Would Make a Difference?

• To bridge the gap in your household expenses

• To get out of debt

• To stay home with your children

• To secure retirement, a “Plan B” for your future

• Time freedom to enjoy life on your own terms

• To bridge the gap in your household expenses

• To get out of debt

• To stay home with your children

• To secure retirement, a “Plan B” for your future

• Time freedom to enjoy life on your own terms

Page 23: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

• Customers shop direct at stores, phone/fax or online at Melaleuca.com.

• Each time they shop, the person who

referred them earns a commission. • Approximately 95% of customers who shop this month will shop again next month. • The result? Melaleuca has paid over

US$3.9 billion in ongoing referral commissions to families just like yours.

When you refer customers to shop at Melaleuca:

The Revenue Sharing Concept

At Melaleuca, customers shop direct.

NO Distributors

NO Carrying Inventory

NO Taking Orders and Making Deliveries

NO Billing and Collections

NO Pressuring Customers to Purchase

NO Repeat Sales Presentations

NO RISK Simply Switch Stores and Save

22

Page 24: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

You Can Build a Prosperous

Melaleuca Business

Refer customers toshop with Melaleuca AND Help others

refer customers1 2

You earn residualincome when you:

See Melaleuca Compensation Plan for more details.

Earn up to 20%*

each time customers you refer shop at Melaleuca

Earn 7%*

when customers in your organization referred by others shop at Melaleuca

PLUS QUALIFY FOR OTHER LUCRATIVE BONUSES23*Commissions based on Product Points each consumer purchases in a given month.

Page 25: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

24

S$921/RM1,903

S$653/RM1,349

S$417/RM862

S$252/RM521

S$1,527/RM3,156

S$1,361/RM2,812

S$723/RM1,494

S$492/RM1,017

Personal Customers 8 10

PACESETTER

Director 2Director

NON-PACESETTER

FIRST MONTH

Advance toDirector and Director 2

Average earnings in month of advancement:

Ongoing average monthly earnings

A Director is someone who has personally referred 8 or more customers.

A Director 2 has personally referred 10 or more customers with approximately 20 total customers.

Based on Melaleuca Compensation Plan and 2013 Annual Income Statistics.

Page 26: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

AVERAGE EARNINGS IN MONTH OF ADVANCEMENT

PACESETTER NON-PACESETTER

AVERAGE ONGOING MONTHLY EARNINGS

PERSONAL DIRECTORS

Includes Pacesetter or Advancement Bonus. Based on Melaleuca Compensation Plan and 2013 Annual Income Statistics.

2DIRECTORS

3DIRECTORS

4DIRECTORS

Team Up to Help Personal Enrollees Become Directors

1DIRECTOR

25

S$2,234/RM4,616

S$4,281/RM8,847

S$7,061/RM14,592

S$960/RM1,984

S$1,554/RM3,212

S$2,604/RM5,382

S$3,896/RM8,051

S$10,566/RM21,836

S$1,356/RM2,802

S$2,030/RM4,194

S$3,680/RM7,604

S$5,496/RM11,358

Advance to Director 3 and Above

STATUS

Director 3

Director 4/5

Director 6/7

Director 8/9

Page 27: DELIVERING WELLNESS an introduction to - Melaleucacdnmy.melaleuca.com/PDF/BusinessCenter/Reference_Library/Downlo… · Who Is Melaleuca? •ferral marketing ... Antiseptic and herbal

Status: PERSONAL DIRECTORS

POTENTIAL MONTHLY BONUSES

ADVANCEMENTBONUS

(One-Time or Pacesetter)

AVERAGE ANNUAL INCOME

Senior Director

Through Senior Director 9

5DIRECTORS

BONUS POOL

S$15,000/RM31,000

TYPICALLY S$3,000/RM6,200

TOS$15,000/RM31,000

S$91,935/RM196,128

S$7,661/RM16,344

Per Month

Executive Director

Through Executive Director 9

10DIRECTORS

BONUS POOL

S$30,000/RM62,000

TYPICALLY S$15,000/RM31,000

TOS$30,000/RM62,000

S$235,251/RM501,869

S$19,604/RM41,822

Per Month

Corporate Director

Through Corporate Director 9

5EXECUTIVE DIRECTORS

BONUS POOL

S$30,000/RM62,000

TYPICALLY S$37,500/RM75,000 TO S$150,000/RM310,000

PLUS A ONE-TIME ADVANCEMENT BONUS

S$150,000/RM300,000

S$1,740,101/RM3,712,214

S$145,008/RM309,351

Per Month

26

Residual Income to Last a Lifetime

Refer to Melaleuca Compensation Plan and 2013 Annual Income Statistics for details.

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Shop and save: 30%–40%

discount

5–10 hours/week

S$200–S$1,000/RM500–RM2,500/month

20+ hours/week

> S$2,000 RM5,000/month

Preferred Customer Supplemental Income Significant Income

2.

1. Set up your shopping account and purchase a Membership Kit

2 Simple Steps to Get Started

Shop for your first product order

21 3

27

In Which Category Do You See Yourself?SHOP & SAVE REFERRAL MARKETING

+

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28

Pacesetter Advancement Bonus

Months After Enrolling

1–2

3

4

5

6

7

8

9

10

11–12

AdvancementBonus

S$100/RM250

S$200/RM500

S$300/RM750

S$500/RM1,500

S$800/RM2,000

S$1,000/RM2,250

S$1,300/RM3,000

S$1,600/RM4,000

S$3,600/RM8,000

S$400/RM1,000

S$9,800/RM23,250One-Time

Advancement Bonus Total

Pacesetter Advancement Bonus Total

S$19,600/RM46,500

S$200/RM500

S$400/RM1,000

S$600/RM1,500

S$1,000/RM3,000

S$1,600/RM4,000

S$2,000/RM4,500

S$2,600/RM6,000

S$3,200/RM8,000

S$7,200/RM16,000

S$800/RM2,000

Getting Started the Right Way

Purchase a Value or Essentials Pack to qualify for Pacesetter bonuses

Schedule and hold a Strategy Session with your enroller within 48 hours

Be coachable and team up with your support team to refer customers

Getting StartedDOUBLE YOUR ADVANCEMENT BONUSES

The Power of the Pacesetter ProgramPACESETTER PROGRAM

STATUSDirector

Director 2

Director 3

Director 4

Director 5

Director 6

Director 7

Director 8

Director 9

Senior Director

Based on Melaleuca Compensation Plan and 2013 Annual Income Statistics.

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64% CUSTOmERS

CustomersThe majority (64%) of those who buy Melaleuca products each month are strictly customers. They’re not interested in pursuing the Melaleuca financial opportunity. They just love Melaleuca products. Only a few of them will ever decide to build a Melaleuca business.

Customer Referral Status24% of all Melaleuca customers have referred at least one customer but fewer than eight customers. As those customers purchase products directly from Melaleuca, those who referred them receive a small commission. These households are not necessarily interested in the financial opportunity. Their relationship with Melaleuca is primarily because they love Melaleuca products. Their “status” is determined by how many customers they have referred. A Marketing Executive has at least one customer. A Marketing Executive 2 has referred at least two customers and a Marketing Executive 3 has referred at least four customers. While these individuals may not be considered serious business builders, their customers (like the vast majority of Melaleuca customers) come from word-of-mouth referrals. Therefore, the overall contribution of these individuals is significant.

mARkETING ExEC. 3

10.8%

mARkETING ExEC. 2

15.7%

MARKETING EXEC.

MARKETING EXEC. 2

MARKETING EXEC. 3

annual income

0

2

4

0

2

4

1

2

5

4

10

20

1 Mo.

1

1

4 Mo.

5 Mo.

5 Mo.

120 Mo.

120 Mo.

120 Mo.

high low average average average averageshortest longestminimum minimum

personal customers

total active

customerstime to

achieve status1

24% CUSTOmER REfERRAL

STATUS

percent at this status

mARkETING ExECUTIVE 173.5%

Melaleuca 2013 Annual Income Statistics

Developmental StatusOnly 1 out of 9 customers (12%) will decide to start their own Melaleuca business and eventually achieve Director status or above. Directors have made a substantial effort (probably spent 50 hours or more) in developing at least eight Melaleuca customers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years. But at some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleuca customers.

annual income

DIRECTOR 1 / 2 (85.5%) 10 14 10 69 1 Mo. 6 Mo.120 Mo.

high low average averageaverage averageshortest longestminimumminimum

personal customers

total active customers time to achieve status1

12%

BUSINESSBUILdERSTATUS

29

APPENDIX

S$4,278/RM9,126

S$131/RM278

S$36/RM77

S$36/RM77

S$41/RM86

S$356/RM758

S$825/RM1,760

S$5,132/RM10,947

S$9,563/RM20,400

S$46,164/RM98,483

S$275/RM586

S$3,159/RM6,739

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30

annual incomepersonal

customerstotal active

customers time to achieve status1

annual incomepersonal

customerstotal active

customers time to achieve status1

Initial Leadership StatusLeaders at these statuses have made a more serious effort to build a Melaleuca business. Those who have reached these leadership statuses have not only invested enough time to refer several customers, but they have also helped some of those customers start a business and become Marketing Executives. Those Marketing Executives have, in turn, referred additional customers who purchase Melaleuca products each month. Commissions are paid based on the development of customers and the development of leaders who help others reach their goals.

high low average averageaverage averageshortest longestminimumminimum

DIRECTOR 8 / 9 (0.7%)

DIRECTOR 6 / 7 (1.2%)

DIRECTOR 4 / 5 (2.8%)

18

15

13

57

49

39

315

205

99

556

445

292

1 Mo.

1 Mo.

1 Mo.

28 Mo.

21 Mo.

17 Mo.

120 Mo.

120 Mo.

120 Mo.

11 29 48 201 1 Mo. 12 Mo.120 Mo. DIRECTOR 3 (5.7%)

Advanced Leadership StatusThose Marketing Executives who reach Senior Director or above have shown substantial interest and dedication in building a Melaleuca business. While they may not work their businesses full time, it is essential that they invest some time each month nurturing, training, and helping those in their marketing organizations. Melaleuca advocates that Marketing Executives keep their full-time jobs and work their Melaleuca businesses in their spare time. However, some Executive Directors at the higher income statuses do work their businesses close to full time. Melaleuca strongly advocates that Marketing Executives do not quit their full-time jobs until their Melaleuca incomes far surpass the incomes they receive from their full-time employers. Rather, they should add their Melaleuca incomes to their regular incomes, thereby making a substantial difference in their family finances.

high low average averageaverage averageshortest longestminimumminimum

20 72 423 1,108 1 Mo. 21 Mo.120 Mo.

20 192 8,389 13,884 29 Mo. 74 Mo.5120 Mo.CORPORATE DIRECTOR (LESS THAN 0.1%)4

20 105 1,072 2,830 4 Mo. 31 Mo.120 Mo.EXECUTIVE DIRECTOR (1.4%)3

SENIOR DIRECTOR (2.6%)2

The above annual income statistics include all North American Melaleuca Marketing Executives who were active during all 12 months of the period ending December 2013 and performed the minimum activity required at each status. The incomes stated include all commissions and bonuses actually paid during the period.

For the purpose of these statistics, a Marketing Executive’s leadership or developmental status was calculated by taking the highest status achieved and maintained for at least seven consecutive months. The information on this page is not necessarily representative of what any individual Marketing Executive will earn with this program. Any representation or guarantee of specific earnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a Marketing Executive exercises those qualities.

1 Includes all active Marketing Executives joining Melaleuca within the past 10 years.2 Includes statistics for Senior Director 1 through Senior Director 9. 3 Includes statistics for Executive Director 1 through Executive Director 9.

4 Includes statistics for Corporate Director 1 and higher.5 Corporate Director average time includes all Corporate Directors in the statistics.

S$49,139/RM104,829

S$4,170/RM8,896

S$11,846/RM25,270

S$55,376/RM118,134

S$7,944/RM16,947

S$19,673/RM41,968

S$86,168/RM183,824

S$14,930/RM31,850

S$31,116/RM66,381

S$115,271/RM245,910

S$21,845/RM46,602

S$43,862/RM93,571

S$504,722/RM1,076,739

S$37,629/RM80,275

S$91,935/RM196,128

S$945,683/RM2,017,456

S$94,425/RM201,440

S$235,251/RM501,869

S$3,550,053/RM7,573,446

S$1,063,968/RM2,269,798

S$1,740,101/RM3,712,214

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To enhance the lives of those we touch by helping people reach their goalsSM

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