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Is Online Shopping Club A Scam – Melaleuca Review

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This review is about an Online Shopping Club owned by Melaleuca MLM.

If you are reading this Melaleuca review, you must be searching for information on this Online Shopping Club MLM business opportunity.

I know you have lots of questions about this Online Shopping Club MLM business.

Are you searching for a legit business opportunity to make money from home?

Then, let begin our review. Is Online Shopping Club a scam?

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Melaleuca Online Shopping Club Summary

Name: Melaleuca

Business Type: MLM

Investment: $19

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  • This Online Shopping Club is owned and operated by Melaleuca MLM company. It is considered to be the largest online wellness shopping club.

  • Melaleuca offers people an opportunity to make money by becoming an independent distributor with the Online Shopping Club.

  • Distributors are independent business owners selling and promoting Melaleuca products for commissions.

  • Melaleuca claims that anyone can be successful as a distributor without investing money. I must warn you this is not true.

  • All Online Shopping Club distributors are required to purchase products every month to qualify for commissions. This requirement is known as the ‘Personal Production Account’. We’ll talk more about this in the compensation section of this Melaleuca review.

  • According to Online Shopping Club 2018 IDS report, Melaleuca stated that 80% or more jointed the MLM opportunity as customers. I think this is B.S. Who would join an MLM opportunity just to buy products?

  • I am convinced that this Online Shopping Club MLM business is not profitable. You can look at the Income Disclosure Statement (IDS) for yourself.

  • MLM is a face-to-face selling business. This is not a home-based business.

  • If you want to make money from the comfort of your home, the Online Shopping Club is not for you.

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What Is Melaleuca Online Shopping Club?

The Online Shopping Club is an online wellness store that is owned and operated by an MLM company, Melaleuca.

Melaleuca was formed in 1985 by Frank VanderSloot.

Frank purchased the entire inventories of a closed down MLM business called Oil of Melaleuca to create Online Shopping Club selling Melaleuca oil products.

Melaleuca oil is also known as, tea tree oil.

Tea tree oil can be found in numerous Online Shopping Club products such as, natural hand Sanitizers, natural insect repellents, natural deodorants, fight acne, chemical-free mouthwash, antibacterial disinfected products… and more.

This online shopping club is similar to Sam Club and BJ Wholesale Club that only sells wellness products.

1985 was the peak of the wellness culture, and the Online Shopping Club was a big hit. From 1990 to 1994, Melaleuca was considered the fastest-growing private companies in the United States.

On December 26, 2017, Melaleuca celebrated its first year of achieving $2 billion in annual sales revenue. The company’s current sales revenue is $2.1 billion.

Since Melaleuca is an MLM company, all customers can make money by recruiting others to join the online shopping club.

You can launch your online wellness business by becoming a Melaleuca distributor.

However, I am not convinced that you can make money with this Online Shopping Club for two important reasons:

  • You are required to purchase products every month to qualify for commissions.
  • The 2018 IDS report reported 80% or more of Marketing Executives earned nothing.

I strongly recommend comparing Melaleuca Online Shopping Club with other home-based business opportunities before joining.

You can use My #1 Business Opportunity to make a comparison.

How To Join Melaleuca Online Shopping Club?

Joining this Online Shopping Club is by invitation only.

The person that invited you is your sponsor.

Your sponsor is your upline (leader). This person earns override commissions from your business activities.

The first step to join the Online Shopping Club is by submitting a Melaleuca Independent Marketing Executive Agreement together with the annual membership fee.

You must also maintain a monthly Personal Production Account (PDA) to qualify for commissions.

I will discuss the costs in the following section of this Melaleuca review.

How Much Does It Cost to Join Melaleuca Online Shopping Club?

The initial investment to join the Online Shopping Club is $19. This fee is renewed annually.

Then, you have the monthly PDA requirement.

The PDA requires every distributor to order a minimum of 35 Product Points (PP) each month to qualify for commissions.

Distributors who fail to meet the PDA will be classified as preferred customers.

Can you see how Melaleuca plays with distributors’ status to manipulate the IDS report?

I hate MLM because of the monthly products purchased requirement.  It is designed to make money for Melaleuca.

Think about it. Why do you have to order from Online Shopping Club every month to promote and sell its products?

Melaleuca should be paying you to promote the Online Shopping Club.

As an Affiliate Marketer, companies pay me to promote their products on the internet.

The monthly active status fee is used by MLMs to avoid being classified as a pyramid scheme. You should read our discussion on MLM vs. Affiliate Marketing to learn more.

The Melaleuca Online Shopping Club Compensation Plan Review

 The good news is Melaleuca doesn’t adopt the binary compensation plan.

The bad news is you must recruit new members to earn commissions. There are no retail profits.

Qualified Distributors have two options to make money with Online Shopping Club:

  1. Enrolled preferred customers to earn commissions from their purchases.
  2. Build a team to earn residual income from downline purchases and recruiting activities.

Let discuss each commission option a little more.

Enrolled Customer Commissions

Online Shopping Club offers no commission for free customers.

A Free customer must become an active customer for you to earn commissions.

Active customers are those purchasing a minimum of 29 PP ($58) each month for at least two months.

When recruiting Preferred Customers or Distributors, Online Shopping Club pays you 50% of Product Point (PP), no commission in the first month.

Online Shopping Club offers between 7% to 20% commissions based on the number of qualified customers in your organization. (See table below.)

melaleuca commissions

To receive the commission payment, you must order products from online shopping every month to meet the PDA requirement.

It seems to me new distributors are your best and loyal customers.

To become successful with this Online Shopping Club, you need to focus on recruiting. It is the only way to make money with Melaleuca.

Team Commissions

Online Shopping Club doesn’t pay the team commission until you have achieved the rank of Product Advocate or above.

Once you are qualified, you can earn a 7% team commission up to 7 generations.

Your rank determines the generation level that you will earn team commissions. Here’s how this works:

  • Product Advocates receive team commissions on 2 generations
  • Product Advocates II get paid to 3 generations
  • Product Advocates III get paid to 4 generations
  • Directors receive team commissions to 7 generations

I hope you can see the challenge of meeting all the requirements to earn money with the Online Shopping Club.

There are other leadership bonuses which require more qualifications. You can check the Melaleuca compensation plan to learn more.

When you carefully look at this compensation plan, you realize that it was designed to convert distributors into customers. This is not a good compensation plan. Online Shopping Club is a scam.

Can You Make Money with Online Shopping Club?

Yes, you can make money with this Online Shopping Club MLM opportunity.

But, are you starting a business to make money or generate profits?

Profit is income. Without profits, your business will not last.

It seems to me that the Online Shopping Club MLM is not a profitable business.

How can you make money with a compensation plan that design to force you to buy products every month?

This explains why 99% of MLM business owners make little or no money.

Is Online Shopping Club (Melaleuca) A Scam?

One might say that Online Shopping Club is not a scam. This is a business opportunity.

However, I must disagree.

Melaleuca doesn’t look for business partners. The company uses the ‘Online Shopping Club Business Opportunity’ to recruit customers.

Distributors are customers of the Online Shopping Club. They are required to purchase products monthly to qualified for commissions. This is a scam.

I would not recommend Online Shopping Club to anyone.

As a Business Review writer, I have evaluated hundreds of home-based and MLM business opportunities to expose scams.

Online Shopping Club is a scam. Melaleuca uses the home business opportunity to sell products, not to help you build a successful business.

Is Online Shopping Club (Melaleuca) A Pyramid Scheme?

When I say Online Shopping Club a scam, it must be a pyramid scheme.

Distributors make money by recruiting new distributors.

New distributors are forced to purchase products monthly to qualify for commissions. This money is used to pay existing distributors as team commissions.

The more people you bring in, the more money you will make.

People at the top of the team, the pyramid, earned big residual incomes. While news distributors earned little or nothing.

This Online Shopping club is a pyramid scheme.

You don’t have to agree with me. But you can’t tell me that the Melaleuca compensation plan is designed for you to make money.

No, Online Shopping Club was created to convert you into a customer.

Is Melaleuca Online Shopping Club Worth It?

It’s very difficult to make money with the Online Shopping Club. This investment is not worth it.

Your chance of achieving financial success with the Online Shopping Club is low.

You are likely to buy more products from Online Shopping Club than make money.

Why do you have to buy products every month for a chance to earn commissions?

I have nothing against MLM. I just hate the idea of paying products to stay in business.

Companies should pay you to promote and sell their products.

Why do I have to pay Online Shopping Club?

Let think about it,

Do you know why you want to start a home-based business?

To earn extra money from home, to be your own boss, or to achieve financial freedom?

And to make money, we invest in a PROFITABLE business!

There are much better and less risky home-based business opportunities.

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To be honest,

What you are looking for is a legit business that generates long-term incomes.

You want to build a business that generates consistent incomes far into the future. Isn’t this the #1 reason you work hard to build a successful business?

There’s a lucrative method that I and millions of people have been using to generate six-figure passive income online.

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Melaleuca is not a good MLM business opportunity. It is unlikely that you can generate long-term income with a scam.

Also, Online Shopping Club MLM is not a home-based business?

How can you recruit new distributors from the comfort of your home?

You must travel around the country to promote your MLM business. I hate doing this!

There are better business opportunities that you can build a lucrative business without leaving your home.

I make money from home with my laptop.

I choose This  #1 Business Opportunity to build my fortune. Yes, I have to invest time and effort into this business. But this is my business, not an MLM.

Today, I am my own boss, working from the comfort of my home with no commute. I work whenever I want and where I like.

Before you join the Online Shopping Club, I invite you to read “What I Do Every Day To Make Money Online”. It is more enjoyable to make money doing what you love.

I hope this review answers your question, is Online Shopping Club a scam?

Until next time.

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