Melaleuca's products have been in China for many years. Are Melaleuca's products really good? Whether it is good or not will only be known to consumers after they have used it. There are many comments from netizens on Melody. Many people say that musicians and MLM are the same nature. Is Melaleuca really MLM company?
Melaleuca is suspected of pyramid selling.
Melaleuca was founded by Vanders in the United States on 1985, with environmental protection as the propaganda point, mainly engaged in cosmetics, daily necessities, nutritional supplementary foods, health care products and so on. Melaleuca entered the China market in 2003 and established Melaleuca (China) Commodity Co., Ltd., and on May 24th, 2007, Melaleuca obtained the direct selling license.
Melaleuca environmental supermarket is suspected of pyramid selling.
There is a direct sales license, which means Melaleuca is legal on the surface. However, no matter from Baidu search or comments from netizens in Zhihu and Weibo, almost all of them have labeled Melaleuca as "MLM". So is Melaleuca really "selling dog meat by hanging sheep's head"?
In 20 13, Melaleuca began to publicize its consumer direct purchase system (CDM), which is different from traditional direct sales. The so-called consumer direct purchase system means that consumers buy products directly through telephone, fax machine, internet and stores without selling. Melaleuca's product sales are to use the Healthy Living Center (environmental supermarket) to develop potential consumers through Melaleuca members, and then invite potential consumers into the store to buy products.
Members of Melaleuca are divided into four grades: ordinary members, silver card members, gold card members and suit members. 340 yuan's deposit fee and 68 yuan's membership service fee are required for each level. However, after joining the membership, members need to maintain a certain consumption threshold, and Melaleuca will automatically deduct the credit card bound by members. Ordinary members and silver card members must pay 340 yuan, gold card member 500 yuan and package member 550 yuan.
This membership system of Melaleuca has also been questioned by many people. Some netizens posted in Tianya to tear up musicians and list the twelve evils of musicians. Why do I have to join the club to buy products? Why do you need a fixed consumption threshold every month to become a member? Why do you want to implement automatic deduction? In fact, the prepaid fee paid by members when they join the club is a disguised membership fee, but Melaleuca went around and claimed that the prepaid fee can only be used to buy Melaleuca's products for themselves, and secondary sales are not allowed.
To become a member of Melaleuca, you don't just have to pay the corresponding fees. When you ask Melaleuca officials how to become a member, you will emphasize that you need references to apply for membership. The reporter of Jiangsu Satellite TV's "News Eye" column once made an unannounced visit to Melaleuca Health Life Museum, and found that the retail price in the store was actually just a decoration, and pulling people's heads was the key point. Because the products of the store can only be purchased by members, and an old member must be brought to fill out the application form and register as a member. Old members of the same trade also revealed that as long as you recommend a new member to join the club, you can get 20 yuan's membership service fee. The more recommendations, the more bonuses. However, when the Trade and Industry Bureau made a surprise inspection, the staff of the Healthy Living Center said that consumers can apply for membership directly, and there is no consumption threshold.
The bonus mentioned by the members in the video is actually a common salary system for musicians all over the world-a matrix system with five widths and seven depths. Melaleuca's matrix system includes five grades: D, SD, ED, CD and PD, and there are 37 grades from basic grade D to advanced grade PD. Each rank has corresponding direct recommendation award, organizational income award, promotion bonus, training bonus, horse and carriage allowance, dividend and other bonuses. Among them, the direct recommendation award includes four kinds: new customer Excellence award, premium package bonus, customer renewal bonus and marketing staff commission. The more referrals, the higher the bonus ratio.
According to the special issue of direct selling information, Melaleuca's organizational income reward is 7% of the total consumption points of all members of the five deep seven matrices. That is to say, if a person develops to the following five people, then further development can only be ranked below the latter five people, and can be arranged according to the level of five, until the seventh row, and the person with the highest consumption of all people can get the commission. According to Melaleuca members, when the team reaches 425 people, it can earn 200 thousand a year; When there are 625 people, the annual income can be 450,000. According to Melaleuca's system, after seven generations of development, there are 97,655 people. Calculated by the minimum monthly consumption 340 yuan of each member, only one organization award, the top players can earn 2324 1.89 million yuan per month. Therefore, it is just around the corner to get on the Forbes rich list.
The promotion award is the 37-level promotion award mentioned above, and there are 9 small grades under the four grades of D, SD, ed and CD. For example, upgrading from a D-level member to an SD member requires upgrading from D2 to D9. To become a D-level member, you can directly get a reward of 650~6500 yuan; And after 8 small promotions from D-level members to SD-level members, you can get a reward of 13000 yuan.
The training bonus is 50% or 100% of the promotion bonus of the pro-pushing partner. The training bonus is related to the level of the members themselves and their pro-promotion partners. The higher the level, the more bonuses they get. However, according to China Economic Net, members' own level is less than or equal to that of new members, or new members promoted by members are not promoted to the corresponding level within two months, which will make members lose their training bonus. Therefore, if members want to get more cultivation rewards, they should not only constantly improve their own level, but also urge their own members to improve. This means that both members themselves and pro-promotion members need to recommend more new people to achieve their goals.
As can be seen from the above reward mode of Melody, no matter what kind of reward, the reward is linked to the grade. The promotion of the level is actually a process of continuous development and offline. The larger the scale of offline team development, the more income the top people can get. Obviously, Melaleuca's multi-level salary system is based on the basic relationship between the upper and lower lines. In fact, Melaleuca has already met the three basic characteristics of pyramid selling: one is to charge entry fees, the other is to attract people, and the third is to pay according to the number of people who directly or indirectly develop.
Beijing business today also reported today that Melaleuca was suspected of cross-regional sales and over-range sales of products. According to the direct selling management industry system of the Ministry of Commerce, Beijing was approved to be included in Melaleuca's direct selling area on July 17 this year. But in 20 17, Melaleuca opened a healthy living center in Beijing. At the same time, Melaleuca's approved direct selling products are only cosmetics and cleaning products, but there are unapproved product categories such as health care products and household items in the store.
/kloc-Yang, the biggest godfather of pyramid selling in China who was arrested 0/2 years ago, summed up the characteristics of pyramid selling. One of them is that "MLM must be linked to health and wealth, and China people will not refuse these two things." Melaleuca put on the cloak of "environmental protection", deceiving consumers and developing tens of thousands of offline teams to seek violence. Otherwise, why does an environmentally-friendly supermarket boast that nutritious food can fight cancer, solve gynecological problems, prevent major diseases and even treat infertility every day? Wealth and health make Melaleuca rich, but it encounters the lowest consumers.