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A Marketing Revolution!THE MELALEUCA COMPENSATION PLANCreating the financial resources for an extraordinary life!
OUR MISSION2To enhance the lives of those we touchby helping people reach their goals.SMFINANCIAL RESOURCESTHE WELLNESS INDUSTRYIn today’s society, most of us spend a great dealof our lives trying to provide for our familiesand developing the resources necessary to havea great life. For most, getting ahead financiallyis a real challenge. Statistics suggest that thosewho make the most financial progress are oftenentrepreneurs who start their own businesses.But starting a business most often takes aninvestment of hundreds of thousands of dollars,and sometimes, millions. And even then, the roadto success is fraught with obstacles and seriousfinancial risk.Over the last three decades, Melaleuca hasbeen building a financial opportunity for theaverage person to start a business with virtuallyno risk and unlimited upside potential. We seeourselves as the champion of the “little guy.”We believe that those who were not born intowealth and who have not climbed the corporateladder should still have the same opportunity toget ahead in life. Although we’ve all heard theold mantra “It takes money to make money,”Melaleuca has developed a proven system wherepeople with virtually no financial investmentcan make substantial improvements in theirfinancial situation simply by referring customersto Melaleuca. This system has proven to be quitesuccessful. Melaleuca has already paid out over 4.5 billion to households who were previously“just getting by” with their 9-to-5 jobs.Our industry is the 620 billion wellness industry.The key to Melaleuca’s historic growth and lifechanging financial reward program is Melaleuca’stremendous line of superior wellness products. Wesucceed because our wellness products are much moreeffective than grocery store brands. They are simplythe absolute best in the marketplace. We realize thatis a bold statement. But scientific studies back upthat statement. So does our product guarantee.A MARKETING REVOLUTION! The Melaleuca Compensation PlanCREATING RESIDUAL INCOME FOR YOUR FAMILYAll compensation to our Marketing Executives is basedon the sale of products to end consumers. However,you will never have to “sell” a single product to anyonesince all products are sold directly by Melaleuca toyour customers. Your role is simply to refer customersto shop at Melaleuca. You will be paid commissionswhenever those customers purchase products. It’sall about having delighted customers who, becauseof their personal experience of increased energyand healthier lives, continue to purchase Melaleucaproducts month after month. Delighted customerscreate an enormous demand for Melaleuca products.Since most of Melaleuca’s customers are PreferredCustomers who purchase every month, that can meandependable monthly income for you for the rest ofyour life! Your income will depend on how many loyalcustomers you have and how much they purchase eachmonth. As with any business, your success will takehard work, diligence, perseverance, and leadership.But the result can bring significant change to your life.
Important business principles Building a Melaleuca business follows the same business principles found in mostbusinesses in that any manager can effectively manage only a limited number ofdirect reports. Therefore, a Melaleuca independent business is initially limited tofive first-generation positions. This organization design offers the best in personalleadership and customer service. As a Melaleuca Marketing Executive, you will beauthorized to build a Marketing Organization consisting of seven generations ofmanagement and customers. You will begin with five direct positions on your firstbusiness generation. Each of those positions will have five first-generation positionsand so forth. As you develop other leaders within your Marketing Organization youcan qualify for additional first-generation positions.Supplementing your regular income with profits from your Melaleuca businesscan dramatically change the financial outlook of your family. Melaleuca stronglyrecommends that you do not leave your current employment to build a Melaleucabusiness. We advocate that you be the best employee you can be for your currentemployer, but use your spare time to build a vibrant Marketing Organization. Pleasedo not consider leaving your current job until your Melaleuca business is producingat least three times the current income of your full-time job.Remember, at Melaleuca anyone can be successful without investing money.There’s no need to pay for advertising, marketing, or meeting rooms. All you needto invest is your time and hard work. And with that hard work, you can createsignificant residual income for the rest of your life.Creating the financial resources to live an extraordinary life!3
F I N A N C I A L R E WA R D SCommissions and Bonuses4A MARKETING REVOLUTION! The Melaleuca Compensation Plan
CommissionsYou earn commissions from customers who were:1) enrolled by you and 2) enrolled by others.You are paid commissions when customers in your Marketing Organizationpurchase product from Melaleuca. The commissions are calculated based onhow many Product Points each customer purchases in a given month.Customers enrolled byyou:Product Introduction Commission: When youquality enroll a customer, you will receive50% of Product Points on orders yourcustomers place during their first 3months.Personal Customer Commissions: Beginningwith your customer’s 4th month,the commission you receive on yourcustomers will depend on how manyActive Personally Enrolled Customersyou have during that month.Active CustomersEnrolled by YouPercent YouWill Be Paid1–77%8–1914%20 20%Leadership PointsLeadership Points are a measurementof a leader’s contribution towardhelping others reach their goals.Leadership Points qualify you forcertain Statuses and bonuses andallow you to earn commissions oncustomers enrolled by others in yourMarketing Organization.Customers enrolled byothers:Organization Commissions: You will receive 7% of ProductPoints on purchases by customers who were enrolled byothers in your Marketing Organization.The number of generations your commissions are paid ondepends on your “Commission Rate.” Product Advocates are paid on 2 generations. Product Advocates 2 are paid on 3 generations. Product Advocates 3 are paid on 4 generations. Directors and above are paid on 7 generations.Presentation Point Commissions: It is not unusual for aMarketing Executive to earn 100 or more Leadership Pointsin a month. When a Marketing Executive at a status ofDirector 5 or higher earns more than 10 Presentation Pointsin any given month, they receive 5 for every PresentationPoint after the first 10 that month.How to earn Leadership Points Whenever a new customer is enrolled, 5 Leadership Points areawarded—3 points are awarded to the enroller (person who referredthe new customer) and 2 points are awarded to the person whomade the presentation. An additional point is awarded to thepresenter if the enrollee purchases a Value or Home ConversionPack. E very time a Marketing Executive advances to Director or any statusabove Director, the leader who has earned the most LeadershipPoints in the Marketing Executive’s Marketing Organization duringthe last three months will receive 10 Leadership Points that month.Creating the financial resources to live an extraordinary life!5
BonusesYou are paid bonuses:1) when you advance in Status 2) when others in your Marketing Organization advance3) when you qualify for a monthly car bonusAdvancement Bonus: You will earn an Advancement Bonus each time you advance to a new Status.The higher the new Status, the larger the bonus. There are 49 Statuses—each Status is higher than theprevious Status. So if you work hard, it does not take long to advance from one Status to the next.or Pacesetter Bonus:After you view the “Foundations” video at Melaleuca.com/FoundationsVideo,you will be eligible for the Pacesetter Program when you advance on the Pacesetter Program timeline.To receive the Pacesetter Bonus, you must advance to each status within a specific timeline. Each statushas a different timeline. TheTimelinePacesetter Program will payTimeline(Months After(Months Afteryou double the AdvancementAchievingEnrollment)StatusStatusSenior Director)Bonus each time you advance21DirectorSenior Director 2through the Director and32Director2SeniorDirector3Senior Director ranks as long43Director 3Senior Director 4as you advance before thedeadline for the corresponding54Director 4Senior Director 5status.65Director 5Senior Director 6To the right are the timelinesthat qualify you for thePacesetter Bonus.Director 67Senior Director 76Director 78Senior Director 88Director 89Senior Director 910Director 910Senior Director12Mentoring Bonus: You can qualify to earn the Mentoring Bonus when your personal enrollees advancefrom one Status to the next. You will earn an amount equal to the Advancement or Pacesetter Bonuspaid to your advancing personal Directors through the Status of Senior Director. You will also be paid aset amount ranging from 2,200 to 5,000 for advancing personal Senior Directors 2 through the Statusof Executive Director. You are paid in the same month your personally enrolled Marketing Executivesare paid their Advancement or Pacesetter Bonus. Note: Melaleuca’s mission is to help people reach theirgoals. The better you are at helping others reach their goals, the more you will benefit financially. And themore your support team helps you reach your goals, the more they will benefit financially. A three-monthaverage of only 1 Leadership Point qualifies Directors and Directors 2 for the Mentoring Bonus. Directors3 through Director 5 qualify with a three-month average of 5 Leadership Points, and Directors 6 andabove qualify with a three-month average of 10 Leadership Points.6A MARKETING REVOLUTION! The Melaleuca Compensation Plan
Expanded Mentoring Bonus:Qualifying Directors 3 and above receive a 100%match of the one-time Advancement Bonus on each advancement of theirpersonal’s personals from Director through Senior Director. And when yourpersonal’s personal advances from Senior Director 2 through Executive Director,you will earn a match of 100% of the Mentoring Bonus.Leadership Development Pool:QualifyingSenior Directors share in a lucrative pool equalto .25% of total company Product Points eachmonth. Qualifying Executive, National, andCorporate Directors share a pool equal to 1% ofcompany Product Points each month.Your share of the pool is calculated based onthe number of pool shares you have versus otherswho are participating in the pool. You earn poolshares each time a Personal Enrollee advances instatus from Director through Senior Director.AdvancingPersonal StatusPoolSharesAdvancingPersonal StatusPoolSharesDirector1Director 66Director 22Director 77Director 33Director 88Director 44Director 99Director 55Senior Director10Qualifications: To qualify for the Expanded Mentoring Bonus and/or the Leadership Development Pool: Simplyenroll an average of 2 customers per month* or develop one personally enrolled Director every three months.Leadership Points: Director ranks have no Leadership Point requirement for the Expanded Mentoring Bonus;Senior Directors must have a 3 month average of at least 20 Leadership Points per month;Executive Directors and above must have a 3 month average of at least a 30 Leadership Points per month.* Three month rolling average with a minimum of four remaining active in the qualifying monthLeadership Growth Bonus: Whenever youreach Senior Director or above Status, haveNew Growth in your Marketing Organizationover a two-month period, and produce anaverage of 30 or more Leadership Points, youwill earn the Leadership Growth Bonus.StatusGrowth Bonus 500Sr. Director–Sr. Director 9Exec. Director–Exec. Director 9Non-Masters 2,000Exec. Director–Exec. Director 9Masters† 3,000National Director and above 4,000† Marketing Executives who have been at Senior Director or above statusfor at least five years are considered “Masters.”Monthly Car Bonus:Melaleuca will pay for a new car when you reach Senior Director.Melaleuca will pay for two new cars when you reach Executive, National, and Corporate Director.Senior DirectorExecutive DirectorNational DirectorCorporate DirectorPER MONTHPER MONTHPER MONTHPER MONTH 500 1,000 1,200 1,500Creating the financial resources to live an extraordinary life!7
Potential OrganizationCommission Available(the amount you receive whenyour personal’s personals advanceto this status)Expanded Mentoring BonusMentoring Bonus(the amount you receive whenyour personal enrollee advancesto this status)Pacesetter BonusAdvancement BonusActive Personally EnrolledSenior DirectorsBonuses and CommissionsActive Personally EnrolledDirectorsMonthly PEG (PersonalEnrollee Group Volume)Monthly Organization VolumeAverage MonthlyLeadership Point ProductionStatus(Commission Rate)Number of ActivePersonal CustomersRequirementsDIRECTORDirector81Director 21021,000 100 200 100* 100 250 200 400 200* 200Director 31132,5001,000 3751 500 1,000 500* 500 500Director 41245,000Director 51357,5002,5002 500 1,000 500* 500 7505,0002 500 1,000 500* 500 1,000Director 614610,0007,5003 600 1,200 600* 600 1,250Director 715Director 816712,50010,0003 700 1,400 700* 700 1,500815,00012,5004 800 1,600 800* 800Director 918 1,750917,50015,0004 1,000 2,000 1,000* 1,000 2,000 2,000 4,000SENIOR DIRECTORSenior Director201020,00017,5005 2,000* 2,000 3,000Senior Director 2201022,50020,000510% of True PEG 20% of True PEG 2,200 2,200 3,500Senior Director 3201125,00022,500610% of True PEG 20% of True PEG 2,500 2,500 4,000Senior Director 4201127,50025,000610% of True PEG 20% of True PEG 2,700 2,700 4,500Senior Director 5201230,00027,500710% of True PEG 20% of True PEG 3,000 3,000 5,000Senior Director 6201232,50030,000710% of True PEG 20% of True PEG 3,200 3,200 5,500Senior Director 7201335,00032,500810% of True PEG 20% of True PEG 3,500 3,500 6,000Senior Director 8201340,00035,000810% of True PEG 20% of True PEG 4,000 4,000 6,500Senior Director 9201445,00040,000910% of True PEG 20% of True PEG 4,500 4,500 7,000 5,000 5,000UnlimitedEXECUTIVE DIRECTORExecutive Director201550,00050,0001010% of True PEGExecutive Director 2201560,00060,0001010% of True PEGUnlimitedExecutive Director 3201570,00070,00010110% of True PEGUnlimitedExecutive Director 4201580,00080,00010110% of True PEGUnlimitedExecutive Director 5201590,00090,00010210% of True PEGUnlimitedExecutive Director 62015100,000100,00010210% of True PEGUnlimitedExecutive Director 72015110,000110,00010310% of True PEGUnlimitedExecutive Director 82015120,000120,00010310% of True PEGUnlimitedExecutive Director 92015130,000130,00010310% of True PEGUnlimited* Doubles when your personal enrollee receives the Pacesetter Bonus.8A MARKETING REVOLUTION! The Melaleuca Compensation Plan
Active Personally EnrolledSenior DirectorsAdvancement BonusPotential OrganizationCommission Available15140,000140,00010410% of True PEGUnlimited2015150,000150,000104110% of True PEGUnlimitedNational Director 32015162,500162,500104110% of True PEGUnlimitedNational Director 42015175,000175,000103210% of True PEGUnlimitedNational Director 52015187,500187,500103210% of True PEGUnlimitedNational Director 62015200,000200,000102310% of True PEGUnlimitedNational Director 72015212,500212,500102310% of True PEGUnlimitedNational Director 82015225,000225,000101410% of True PEGUnlimitedNational Director 92015237,500237,500101410% of True PEGUnlimitedLeadership CreditsActive Personally EnrolledDirectors20National Director 2Active Personally EnrolledExecutive DirectorsMonthly PEG (PersonalEnrollee Group Volume)National DirectorStatus(Commission Rate))Number of ActivePersonal CustomersMonthly Organization VolumeBonuses and CommissionsAverage MonthlyLeadership Point ProductionRequirementsNATIONAL DIRECTORCORPORATE DIRECTORCorporate Director20N/A250,000250,000105 100,000 10% PEGUnlimitedCorporate Director 220N/A300,000300,0001051210% of PEGUnlimitedCorporate Director 320N/A350,000350,0001051510% of PEGUnlimitedCorporate Director 420N/A400,000400,0001051810% of PEGUnlimitedCorporate Director 520N/A450,000450,0001052110% of PEGUnlimitedCorporate Director 620N/A525,000525,0001052410% of PEGUnlimitedCorporate Director 720N/A600,000600,0001052710% of PEGUnlimitedCorporate Director 820N/A700,000700,0001053010% of PEGUnlimitedCorporate Director 920N/A800,000800,0001053310% of PEGUnlimited10535 1,000,000UnlimitedPRESIDENTIAL DIRECTORPresidential Director20N/A1,000,000 1,000,000Please refer to Melaleuca.com/CompensationPlan for additional information on Corporate Director Statuses.Creating the financial resources to live an extraordinary life!9
The Fine Print: Things you need to knowWhen you are dealing with a program that has already paid out over 4.5 billion, you’ve got to expect there’s going to be a littlefine print just to make sure our people are representing our company and products ethically and honestly, and to make sure thosewho are paid substantial amounts are involved in the endeavor of helping others. So here it goes Additional First-Generation Positions:A Marketing Executive will earn anadditional first-generation position (overthe original five) for each active personallyenrolled Director or above.“Status” means “Commission Rate Status”:Whenever specific Statuses are used whendiscussing Melaleuca’s Compensation Planin this brochure (e.g. Executive Director), itmeans your “Commission Rate Status.”Home Security Commissions: Substantialcommissions are available each month onthe Melaleuca Home Security program. Toqualify for these commissions, you mustdesignate one household as your personalproduction account in the Melaleuca HomeSecurity program. To learn more, visitMelaleucaSecurity.comAdvancement Bonus Payout: The Five-Month Retention Index in the month theAdvancement Bonus is paid determines thepercent of the Advancement or PacesetterBonus the Marketing Executive receives.Five-MonthRetention IndexPercent ofBonus Paid50.0% or above100%45.0%–49.9%80%40.0%–44.9%70%Less than 40.0%50%Advancement and Pacesetter Bonuses arepaid in the month of advancement withthe exception of Marketing Executivesadvancing to a status of Director 3 throughNational Director 9 who achieve thenecessary Organization Volume morethan two months before developing therequired number of personally enrolledDirectors, Senior Directors, or ExecutiveDirectors (“Leadership”). If the necessaryOrganization Volume is achieved morethan two months prior to the requiredLeadership, the Marketing Executive10A MARKETING REVOLUTION! The Melaleuca Compensation Planwill be paid 1/3 of their Advancement orPacesetter Bonus each month for a periodof three months.Rapid Advancement: Senior Directors andabove who have an Organization ReorderRate of greater than 90% can be paid onthe advancement of an unlimited numberof new statuses in any given month.Senior Directors and above who have anOrganization Reorder Rate of 80% to 90%can be paid Advancement or PacesetterBonuses for up to two Status Advancementsin a single month. Senior Directors andabove who have an Organization ReorderRate below 80% can be paid Advancementor Pacesetter Bonuses on a maximum ofone Status Advancement per month. Ifthe number of Status Advancements aMarketing Executive achieves in a singlemonth exceeds the number that theMarketing Executive is eligible to be paidon, the unpaid Advancement or PacesetterBonuses will be paid in subsequentmonths as long as the Marketing Executivecontinues to meet the requirements forStatus and grows in subsequent months(excluding roll-ups and organizationmoves).Mentoring and Expanded MentoringBonuses: For you to qualify for theMentoring, Expanded Mentoring, orLeadership Development Pool Bonuses,your advancing Marketing Executivesmust advance within two months afterachieving the re
Important business principles Building a Melaleuca business follows the same business principles found in most businesses in that any manager can effectively manage only a limited number of direct reports. Therefore, a Melaleuca independent business
