Is there such a thing as free money?

September 10, 2009 7:10 PM

IsThisAScamFilter: Melaleuca Inc., the internets seem to be on the fence about it. Have ye any experience?

A friend was approached today about becoming a distributor for this company, and after extensive Googling we still can't figure out whether it's a run-of-the-mill MLM scam or a fantastic opportunity for some free/easy money.

Do any of you trusted Mefites have experience with this company or some anecdotes to sway the vote? Your help would be very much appreciated since this means the difference between being paid to do nothing and paying through the nose to wind up with a bunch of useless crap.

posted by knystress to work & money (20 comments total)

In my experience "free/easy money" almost always means scam, although I don't have any specific info in this company.
posted by sharkfu at 7:13 PM on September 10 [3 favorites]

Checklist to Evaluate Multi-Level Marketing (MLM) Programs from ConsumerFraudReporting.org.... whatever that is.
posted by rokusan at 7:15 PM on September 10

It's MLM a la Amway. Legit business with legit (if overpriced) products, but you are unlikely to make any money after expenses unless you are a very persuasive person who can build up a big empire of sub-distributors. Avoid, it is not easy, and if you have real sales talent, you could be employing it better than in alienating your family friends and acquaintances through trying to recruit them.
posted by i_am_joe's_spleen at 7:19 PM on September 10 [5 favorites]

I noticed a logo claiming BBB accreditation on their website. If they are this company they have an A rating. I don't think it's a scam, but yea, might not be the best opportunity.
posted by The Devil Tesla at 7:24 PM on September 10

i_am_joes_spleen nailed it

and if you have real sales talent, you could be employing it better than in alienating your family friends and acquaintances through trying to recruit them.


Around 1995, I had a close relative involved with Melaluca. I suspect most people end up like her, buying in to get started selling and then leaving after realizing what selling the products means to your relationships.
posted by limited slip at 7:35 PM on September 10 [1 favorite]

This is my mother's current obsession. Some of the products are quite nice -- a lot of people swear by the lotion, the stain remover and laundry detergent are very effective, et cetera. However, I find the mandatory monthly orders highly off-putting, don't use enough of any of the products to justify signing up, and don't particularly care to try their own personal versions of a zillion different products so I can evaluate them against the ones I'm already using.

If you like and want the stuff they sell, I don't think it's particularly terrible. If you're looking for free/easy money, you'll probably end up with a bunch of catalogs, sample lotion bottles, and former friends.
posted by mayhap at 7:42 PM on September 10

About 15 years ago a large group of my mom's friends ended up spending a lot of money and having tons of Melaluca to be applied liberally for all occasions. Avoid.
posted by occidental at 7:45 PM on September 10 [1 favorite]

My mom's been involved in this for years. I don't think there's anything particularly illegal about the operation, but it's never really sat well with me. i_am-joe's_spleen got it right when he said it's essentially Amway, another thing my mom got caught up in (detecting a pattern yet?). She loves their products, so she's generally quite enthusiastic about it, but I've never thought their products were particularly spectacular. In general, my mom's done okay with Melaleuca, but not great. She also has a successful and totally legitimate business completely apart from her MLM dabbling, so she can generally afford to take a slight risk on this kind of stuff every once in awhile. I think it's fine, since she enjoys their products and I don't think they're taking advantage of her, but that said, I've never enjoyed it and actively discouraged her on a few occasions. I suspect you and your friend will not find this a worthwhile venture.
posted by Diagonalize at 8:01 PM on September 10

Maybe I'm a cynical old witch, but my alarm bells started ringing when I read "A friend was approached today about becoming a distributor for this company".

By whom? And, if it's such a good money-maker, why don't they keep their mouths shut and reap the benefits themselves, rather than recruiting others?

If I discovered how the pick winning lottery numbers in advance (or make a good amount of money direct-selling), the last thing I'd do would be tell anyone about it, let alone recruit them to join me.
posted by malibustacey9999 at 8:11 PM on September 10 [2 favorites]

If I discovered how TO, that is...
posted by malibustacey9999 at 8:11 PM on September 10

I'd say ignore the MLM aspect and consider if you think you (the potential recruit personally, not some hypothetical person) could make money selling their products. When people think they can make money easily off the MLM aspect, they don't seem to consider that someone down the line has to actually be concentrating on selling the product. If everyone thinks they can just make the money from their downline instead of by selling the product themselves, then nobody makes money.

I have known some people who make good money from MLM, but they basically act as sales manager to their recruits, and they're really good sales managers -- teaching and supporting the salespeople they recruit is their full-time job.
posted by winston at 8:15 PM on September 10

The slimy word "opportunity" ought to warn you off, if nothing else.
scAmway loves to fling that word around...run for the hills!
posted by BostonTerrier at 8:17 PM on September 10

MLM supply and demand lesson: If you can't sell the products for less then these guys, don't do it.
posted by 8dot3 at 8:23 PM on September 10 [2 favorites]

My dad used to be a Melaleuca distributor. You are forced to buy a minimum amount of stuff every month which is not cheap, and if you're not good at selling it, you'll just end up with piles and piles of their product. It's not easy to sell either, as none of it is particularly impressive and as I said, it's overpriced. The stuff isn't bad, it just isn't good enough to entice most people to spend the extra money.

Just stay far away -- it's a waste of time and money.
posted by yawper at 8:33 PM on September 10 [1 favorite]

we still can't figure out whether it's a run-of-the-mill MLM scam or a fantastic opportunity for some free/easy money.

Here's a hint: There are no fantastic opportunities for some free/easy money.

Living in Utah I've heard a lot about them. I wouldn't call it a scam, since they make actual products that by some accounts actually work and in many cases might even be sold at good prices.

But working for them is just like running any other small business. If you work very hard and are good at sales you'll make money. My guess is you'd make more by taking an actual sales job but who knows.
posted by mmoncur at 8:40 PM on September 10 [2 favorites]

There is no selling vehicle that is 'free/easy money'. These kinds of deals are (even when the product/company is legitimate) invariably about recruiting subdistributors and/or buying product with your own money to resell.

If you or your friend are amazing, forceful salespeople, this could become profitable in the medium-to-long term, but you should fully expect to make a cash layout in the short term if you wish to get started in any of these kinds of schemes.
posted by asciident at 8:45 PM on September 10

I am a resident of the town in which this company is based (Idaho Falls, ID) and am strongly of the opinion that the company should not be supported on moral grounds.

Please do not support them, whether it's because you're likely getting a short-ended stick, or because you're not interested in supporting a company that turns my cherished Fourth of July festival into the "Melaleuca Freedom Celebration" and whose President, in response to an investigation of a sex-abuse coverup by the Boy Scouts and the Mormon church, maliciously outed a gay reporter:

He devoted several paragraphs to establishing that Zuckerman is gay. He noted the Mormon Church opposes gay marriage and that the Boy Scouts no longer allow gay men to lead troops, but briefly added: "We think it would be very unfair for anyone to conclude that is what is behind Zuckerman's motives."

Full disclosure: I'm not Mormon, although I grew up around them; I am an Eagle Scout.
posted by Picklegnome at 10:13 PM on September 10 [6 favorites]

Pyramid scheme.

Had a good buddy in college who's dad got him into it; never made a sale, but some of the products that he 'gave' me during the summer we lived in the same place worked "ok."
posted by porpoise at 10:55 PM on September 10 [1 favorite]

My elderly aunt lost a ton of money and self-respect to the Melaleuca cult MLM scheme years ago. I will never forget her calling me and having an odd, stilted, forced-casual conversation about my boyfriend (now husband) that then segued into a bizarre, scripted sales pitch for "female sexual enhancement cream". And I doubt she will ever forget being brainwashed into preying on her family in a desperate bid to unload the crap that she was forced to buy. Avoid, avoid, avoid. I have a dear friend who has lost thousands to a similar company, who is still trapped and in need of deprogramming. Friends don't let friends get scammed by MLM.
posted by biscotti at 4:44 AM on September 11 [2 favorites]

My mom sold this stuff years ago. She didn't really make much of money on it, but (echoing what others have said) nothing about it ever struck my family as particularly nefarious. I wish I had more information to offer but this was like 10 years ago and my memory's not the best.

As an aside: We ended up using the products every now and then. The fragrance from the melaleuca extract or whatever it is they put in the products is sharp but pleasant.
posted by kryptondog at 8:14 AM on September 11