Melaleuca Inc.- Melaleuca: The Wellness Company

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VanderSloot wanted to distance the newly formed Melaleuca Inc from all the problems Oil of Melaleuca encountered, and start a fresh. He began by creating a new business structure- Consumer Direct Marketing (CDM), which was designed to address the problems associated with Multi-Level Marketing (MLM) companies. The CDM structure is remarkably similar to the standard MLM format, however it has slightly more emphasis on helping and supporting customers build up a steady residual income, and on pushing products rather than sales start up packs.
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Melaleuca experienced steady success in the 1990s. The decade kicked off with Inc. Magazine listing Melaleuca as the 37th fastest growing privately owned company in the United States. The company won a further seven awards, including 1996 “Employer of The Year”, and 1998 “Idaho Business Leader of The Year”. The company enjoyed financial success, with sales jumping from just over $100m in 1991, to just under $220m in 1992.

As represented by the graph, Melaleuca experienced a steady rate of growth throughout  the 1990s. The company was thriving, and their distributors were also reeking in the profits. Melaleuca’s Executive Directors reportedly earned on average $131,818.58 in 1996, with the top earner making $862,871.13.
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With the rapid success experienced at home, the next logical step is to expand abroad. In 1994, Melaleuca began trading in Canada, and in the late 90s, began to operate in parts of Asia.  Today, Melaleuca operates in Japan, Hong Kong,  Singapore, Korea, Taiwan, China, Australia, New Zealand, the United Kingdom, Ireland, the Netherlands and other countries.

The company operates the same CDM format in each of these countries, and has experienced a mixed result. For example, Melaleuca is not experiencing rapid growth in the UK, where network marketing is an unfamiliar concept, but has been quite successful in Canada. The majority of their wealth still comes from their home activities, however their foreign business ventures provide a steady level of income.
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The new millennium brought new changes for Melaleuca, and saw their sales skyrocket. New products were developed, old products were improved, new lines launched, and Melaleuca expanded their business portfolio into other ventures.

Melaleuca established “The Melaleuca Foundation”, which was created purely “to do good where good is needed—to enhance lives, to restore hope.” The Foundation raises and donates large sums of  money to needy causes, for example donating over $1m to the Hurricane Katrina relief fund. At present, The Foundation is currently working with an orphanage in Ecuador and is their sole supporter; providing food, clothing, medical care. The Foundation is looking to expand this programme to include other orphanages around the world.

Melaleuca have opened their “Koala Kids Academy”, a child care center preschool. The Academy is open to both associates and the general public, and accepts children from when they are 4 weeks old up until they reach 6th grade. The Academy “provides a well-balanced, fun and diverse learning atmosphere, where your children will love to learn and will feel safe and secure.”
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Melaleuca seems to have gone from strength to strength for the past 25 years. However, they still only hold roughly 5% of the American market meaning there is still plenty of room for Melaleuca to expand and plenty more customers to capture. Melaleuca are in an incredibly competitive market, competing against massive corporations such as Proctor and Gamble. Becoming market leader will indeed be a difficult task. Given the steady success of the past 25 years, the future of Melaleuca looks bright, and I believe the company will continue to be successful.