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an introduction to
1
The Wellness Company
• Proven Track Record
• Debt-Free
• Strong Management
Exceptional Products That:
• People Use Every Day
• Are Safer for Your Home and Environment
• Are a Better Value Than Grocery Store Brands
Revenue Sharing at Melaleuca
• No New Money—Simply Switch Stores
• High Customer Reorder Rate
• No Risk
Anyone Can Be Successful…Anytime
What We Will Discuss Today
2
Melaleuca’s
Since its beginning in 1985, CEO Frank L. VanderSloot’s
passion for helping the average family has been the driving
force behind Melaleuca’s mission.
Our Mission:
To Enhance the Lives of Those We Touch
by Helping People Reach Their GoalsSM
Heritage
3
FINANCIA
L
WELLNESS
PHYSICA
L WELLNESS
PERSONALW
ELLNESS
ENVIRONMENTAL
W
ELLNESS
Live Longer,
Healthier,
More Vibrant
Lives
Make Our
Homes and the
Environment
Cleaner, Safer
Places
Achieve Balance,
Freedom, and
Peace of Mind in
Your Personal and
Family Life
Get Out
of Debt and
Secure Your
Financial
Future
Melaleuca:
The Wellness Company™
4
A Different
Kind of
Company
Instead of paying millions to retailers
and advertisers, Melaleuca redirects
revenue from its product sales to the
average family and offers them the
opportunity for wealth without a large
investment or risk.
5
Since its beginning in 1985, annual
sales have grown to over $800 million.
Melaleuca’s 24-year proven track
record of success is unmatched!
Each month, over 500,000
households shop with
Melaleuca, a testament
to the quality and value
of our products.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
$550,000,000
$600,000,000
$650,000,000
$700,000,000
$750,000,000
$800,000,000
$850,000,000
1985 1991 1997 2003 2008
Melaleuca’s
Growth
Record
6
Melaleuca’s
Success
Melaleuca appeared on Inc. magazine’s
list of fastest-growing companies for 5
consecutive years and earned a place
on the prestigious Inc. 500 Hall of Fame.
Melaleuca is a recipient of
the esteemed Better Business
Bureau Torch Award, granted
only to select companies
that prove a long history of
exemplary business practices.
7
We refer customers to shop with Melaleuca.
They shop direct by phone or online.
Approximately 95% of our customers who
shop this month will shop again next month.
Each time they shop, we earn a commission.
The result? We share in the revenue
and earn ongoing commissions called
residual income.
What Melaleuca Does…
We Deliver Wellness®
It’s called Consumer Direct Marketing,®
and only Melaleuca does it.
8
NO Large Investment
NO Carrying Inventory
NO Taking Orders and
Making Deliveries
NO Billing and Collections
NO Pressuring Customers
to Purchase
NO Repeat Sales
Presentations
NO Risk Simply Switch
Stores and Save
At Melaleuca,
Revenue Sharing
Just Makes Sense
9
Simply switch a portion of what you’re already spending at the
grocery store to Melaleuca, where you’ll find better, safer products.
• No New Dollars Required
• Keep Your Budget Intact
Simply
Switch Stores
10
	 With a Melaleuca business,
	 hundreds of thousands of average families
		
are improving their lives.
				
		 The reason?
Our Superior
					 	 Products.
11
Welcome to a Simpler Way of Shopping—
Over 300 Exclusive Products You Use Every Day
®
12
™
No other home cleaning products protect your home, family, and environment like EcoSense
SAFER
FOR YOUR FAMILY
• No chlorine bleach
• No ammonia
• No aerosols
• No formaldehyde
SAFER
FOR THE EARTH
• Super-concentrated
• No fillers
• No phosphates
SAFER
FOR YOUR HOME
• Effective, naturally
derived ingredients
• No abrasives
• pH-balanced (non-alkaline)
Cleaners
Safer and More
Effective
Diamond Brite®
Patented formula with
naturally derived enzymes
gets your dishes and silverware
shiny and spot-free without using
chlorine bleach, phosphates, or
other harmful ingredients.
MelaPower®
6x
The concentrated, pH-balanced
formula uses powerful, naturally derived
surfactants to wash away stubborn dirt
and stains without damaging clothing.
Our concentration technology is patent
pending and exclusive to Melaleuca.
Our proprietary Rinse Guard™agent
actually keeps dirt from settling back
onto your clothes during the rinse cycle.
13
1414
6XCONCENTRATED
MelaPower®
6X
192 loads
$29.99PREFERRED CUSTOMER
6 Bottles of 2X Ultra Tide®
192 loads total
$61.74*
COMPETITOR PRICE
Concentrated Means Less Waste and More Savings
VS
=
= =
Clear Power®
Makes 96 fl. oz.
$5.69PREFERRED CUSTOMER
Tub  Tile™
Makes 96 fl. oz.
$5.69PREFERRED CUSTOMER
3 Bottles of Windex®
96 fl. oz. total
$10.47*COMPETITOR PRICE
6 Bottles of Lime-A-Way®
96 fl. oz. total
$20.94*COMPETITOR PRICE
*Competitor product prices from
Albertsons.com, Portland, OR and
Kroger, Atlanta, GA March 11, 2009.
Prices may vary. Product names are
trademarks of their respective owners.
VSVS
15
Sol-U-Guard Botanical®
2x Concentrate
• Kills household germs like staph, E. coli, and rhinovirus—
the leading cause of the common cold
• Gentle enough to use around children and pets
• No chlorine bleach, ammonia, harsh fumes,
or harmful residue
• Available only at Melaleuca
EPA-Approved to
Kill 99.9%
of Germs
with the Natural Power
of Thyme and Citric Acid
2x concentrated to save you money
16
Our products are
sourced from natural,
sustainable sources
We don’t use
phosphates, chlorine
bleach, or ammonia
We were green
long before being
green was popular
Melaleuca is the world
leader in concentrated
products and technology
Caringfor the
EnvironmentSince 1985
If every household used concentrated EcoSense™
products instead of grocery store brands, in 10 years
we would save almost 7 billion pounds of plastic. That
would be 78 billion fewer plastic bottles in our landfills!
Phosphates in our waterways cause excessive growth
of algae, deplete oxygen levels, and damage fragile
aquatic ecosystems.
17
Want More Energy
andBetter Health?
Fact: 4 out of 5 adults are not eating their daily serving of fruits and vegetables.
• The minerals in other top-selling supplements have
been proven to crystallize during digestion, which
inhibits absorption
• The human body was made to absorb vitamins and
minerals from natural foods like fruits and vegetables
• The minerals in plants are bound to proteins and
fibers—making them easier for our bodies to absorb
• Oligofructose Complex™ prebinds minerals to
proteins and oligofructose fibers, similar to how they
exist in plants and foods
THE RESULT?
No other mineral form is more absorbable than
Melaleuca’s Oligofructose Complex.*
*Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions.
18
1 Vitality Pack®
Daily Dose
or or
at least
15 One A Day®*
at least
33 Centrum®
Do You Think Your Body
Is Getting100%of the
Vitamins and Minerals
Shown on the Label?
The difference you’ll feel using the
Vitality Pack is so impressive, it’s
guaranteed. If after 90 days you
don’t feel a marked difference in
your health and energy, we’ll refund
your money—no questions asked.
THE BOTTOM LINE:
Minerals found in other top-selling
supplements crystallize when digested,
aren’t as absorbable, and destroy important
vitamins like C and E.
Oligofructose minerals found in the Vitality
Pack are up to 10 times more available for
absorption and protect antioxidant vitamins
5 times better.
Labels don’t indicate the rate of solubility, availability, or absorption.
For example, tests show that in order to get the same amount of Vitamin C or Copper, you’d have to take…
*Comparison vs. One A Day Women’s
19
The World’s Leader
in Natural Heart
Health Solutions
Phytomega®
Naturally lowers LDL
cholesterol while
maintaining healthy
triglyceride levels*
FiberWise™
Helps reduce LDL
cholesterol and promotes
a healthy digestive tract*
ProStolic®
Naturally maintains
healthy blood pressure
with milk peptides*
ProvexCV®
Reduces LDL oxidation,
promotes healthy blood
platelet activity and
endothelial function*
Fact: Cardiovascular health is the #1 health concern in North America.
cholesterol
triglyceride
levels endothelial
function
platelet
Function
blood
pressure
LDL
oxidation
*These statements have not been evaluated by the Food  Drug Administration.
This product is not intended to diagnose, treat, cure, or prevent any disease.
20
Exerciseand
Weight Loss
ProductsThat Work!
Access®
Patented nutrition that
turns fat into fuel for exercise
with half the calories of
Original PowerBar®
Simply Fit™
10 organic whole grains
and seeds and no
trans fat—a genuinely
healthy snack!
Attain®
Reduces cravings to support
healthy weight loss efforts
with natural CraveBlocker,™
not found in SlimFast®
Sustain®
Sport
Provides hydration and
endurance with twice the
electrolytes and fewer calories
than Original Gatorade®
drinks
Facts: Over 60% of American adults are overweight.
Weight loss and exercise is a $43 billion industry.
21
Envia Shampoo and Conditioner
• Patented Lipid Replenishing System adds
shine, strength, and moisture to your hair
• Patented UV Protection System prevents
color-fading, split ends, and UV damage
• Delivers salon-quality results without salon prices
Products No Family
Should Be Without
Bath  Body
Essentials
Beautiful Hair
from Nature’s Salon
Silky Soft Skin
from Head to Toe
Exclusively for Men
Products for strong,
healthy kids
®
™
22
Skin Careand CosmeticsExclusively at Melaleuca
Necessities Skin Care Set (Cleanser, Toner, Moisturizer)
• Protects your skin from UV damage
• Nourishes skin with vitamins and botanicals
• Helps restore skin’s firmness and tone with peptides
Natural Ingredients Proven Formulas
Visible
Results
23
Complete First Aid
Antiseptic and herbal
ingredients naturally soothe
and help speed healing
Natural Dental Care
Exceptional dental care featuring
pure T40-C3®
Melaleuca Oil
Skin Protection
Advanced dry skin, acne, and
sun care
Drugstore Essentials
Save up to 50% vs. major brands
Melaleuca Oil is
well-known for
its soothing,
penetrating,
and antiseptic
healing properties
24
Do Youor Someone
You Know Sufferfrom
Severely Dry Skin?
Eczema Psoriasis Rosacea
Clinically proven to work
faster, better, and last
longer than Eucerin®
!
MOISTURE RETENTION
*Clinical study with dry skin from eczema
7xas effective
vs. Eucerin on
moisture retention
EUCERIN®
RENEW™
Climate
associated with:
Proven to leave
dry skin feeling
softer, smoother,
and healthier-
looking in just
24 hours.*
25
Exclusive
Membership
Benefits
We leverage our large number of customers to negotiate these incredible savings—then pass them on to you.
Plus, save hundreds of dollars by
using additional Melaleuca services
with low, pre-negotiated rates
.COM
With your membership, save up to
at more than 70 online retailers 15%
26
Value of Monthly Shopping
TOTAL PRICE OF
GROCERY STORE BRANDS
$
99.97*
*Competitor retail prices from Albertsons, Albertsons.com, Target, and
Drugstore.com as of March 12, 2009. Prices will vary. Product names are
trademarks of their respective owners.
MELALEUCA
REGULAR PRICE
$
79.98
Become a Preferred Customer—spending
about $50 to $60 each month—and save
30% to 40% each time you shop!
YOUR DISCOUNTED
PREFERRED
CUSTOMER PRICE
$
55.33
With the Loyalty Shopping
Dollars program, you can
earn up to $100 in FREE
PRODUCTS when you shop
in your first five months!
After five months, you
can earn up to 10% back
in LOYALTY SHOPPING
DOLLARS when you shop
early in any month.
Loyalty Shopping
Dollars Make
Melaleuca Even
More Rewarding
2 50 fl. oz. bottles of 2X Ultra Tide®
= 64 loads
5 bottles of Softsoap®
= 500 uses
3 bottles of Formula 409®
= 96 fl. oz.
The Value of Concentration
1 32 fl. oz. bottle of MelaPower®
6X = 64 loads
1 bottle of Melaleuca Liquid Soap = 500 uses
1 bottle of Tough  Tender®
makes 96 fl. oz.
27
Preferred Customer Membership
Preferred Customers agree to shop each month with Melaleuca
WE PROMISE:
• Preferred Customer Pricing
	 30%–40% off the regular price
• Exceptional Products Delivered
	 Conveniently to Your Door
• Loyalty Shopping Dollars
You can earn up to $100 in Loyalty Shopping Dollars
in your first 5 months and up to 10% thereafter*
• Save up to 15% at Online Retailers
with Melaleuca Marketplace
• Savings on Everyday Services
• No Risk—You Can Cancel Your
Membership at Any Time
100% satisfaction guaranteed*
YOU AGREE TO:
	Become a Preferred Customer
$29 membership fee*
	 Simply Switch Stores and Shop
with Melaleuca Each Month
Purchase 35 Product Points each month—
about $50 to $60 dollars redirected from
the grocery store
	Preselect Your Backup Order
Protect your Preferred Customer benefits
3
3
3
On average our customers order
48 PRODUCT POINTS
per month
*See Melaleuca Customer Agreement for more details.
If you forget to shop during the month, we’ll send your
preselected products, charge your method of payment,
and protect your savings and other benefits!
28
You Can See Why Being a Preferred Customer
Makes So Much Sense…
How would
an extra
$
500,
$
1,000or
$
10,000
per month improveyour life?
29
Personally refer customers
to shop with Melaleuca
and help others do the same
1 2
Earn 7% to 20%
each time customers you
refer shop at Melaleuca
Earn 7%
each time customers in your organization
who are referred by others shop at Melaleuca
Anyone
Can Build a Successful
Melaleuca Business
You Can Earn Residual Income in Two Ways:
See Melaleuca Compensation Plan for more details.
30
Marketing Executive
Others can also refer new customers and
place them in your organization. You can
revenue share on up to 30 customers in
your first two generations.
	 Your Household
7%	 5
7%	 25	 Households
1
2
See Melaleuca Compensation Plan for more details.
31
Director
Is a person who refers 8 customers
and can now be paid residual income
through seven generations
Helping the Average Family:
Seven families benefit from every Melaleuca purchase
1
2
3
4
5
6
7
	 Your Household
7%	 5
7%	 25	 Households
7%	 125	 Households
7%	 625	 Households
7%	 3,125	 Households
7%	 15,625	 Households
7%	 78,125	 Households
Refer 2 Customers
See Melaleuca Compensation Plan for more details.
Refer 8 customers
and earn 7% on each
generation and up to 20%
on all your personally
referred customers
Refer 4 Customers
32
IMPORTANT STEPS
Director
Status
Achieved
Personally
Referred
Customers
Potential
Monthly
Residual Income
PLUS
POTENTIAL
Monthly BONUS
POOL
PLUS
One-time or PaceSetter
Bonus
2008 MONTHLY
INCOME
statistics
Become a Director by
Personally Referring
8 Customers
Director 8 $500 – $100 or $200 $180
$1,330II 10 $750 – $200 or $400
Develop 1
Personal Director
III 11 $1,000 $1,000 $300 or $600
$603
$1,710
Total of 2
Personal Directors
IV 12 $1,500 $1,500 $400 or $800 $1,010
$2,410V 13 $2,000 $2,000 $500 or $1,000
Total of 3
Personal Directors
VI 14 $2,500 $2,500 $600 or $1,200 $1,560
$3,610VII 15 $3,000 $3,000 $700 or $1,400
Total of 4
Personal Directors
VIII 16 $3,500 $3,500 $800 or $1,600 $2,280
$5,460IX 18 $4,000 $4,000 $1,000 or $2,000
Getting Started: A Part-Time Referral Business
For illustration purposes only. Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details.
Avg.
high
Avg.
high
Avg.
high
Avg.
high
Avg.
high
33
Residual Income to Last a Lifetime
Unlimited
PLUS AN EXTRA 2%
ON ALL CUSTOMER
PURCHASES
STATUS
PERSONAL
DIRECTORS
POTENTIAL MONTHLY
INCOME BONUSES
Unlimited
Unlimited
BONUS POOL
$10,000
CAR BONUS
$400
BONUS POOL
$20,000
CAR BONUS
$1,000
BONUS POOL
$20,000
CAR BONUS
$1,000
ADVANCEMENT
BONUS
(One-Time or Pacesetter)
TYPICALLY
$2,000
TO
$10,000
TYPICALLY
$10,000
TO
$20,000
TYPICALLY
$50,000 TO
$100,000
PLUS A ONE-TIME
ADVANCEMENT BONUS
$100,000
10DIRECTORS
5DIRECTORS
5EXECUTIVE DIRECTORSThrough Corporate
Director IX
Through Executive
Director IX
Through Senior
Director IX
Senior
Director
Executive
Director
Corporate
Director
For illustration purposes only. Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details.
34
Earn up to $5,000–$20,000 or
even more each month with a
continued, consistent effort.
Earn up to $500–$5,000 each
month, depending on your time
and consistent effort.
PART-TIME
REFERRAL BUSINESSPREFERRED CUSTOMER
Shop and Save
30%–40%
Invest 5–15
Hours a Week
Put In a Serious
Effort—20+ Hours
Each Week
SIGNIFICANT
REFERRAL BUSINESS
CATEGORY 1 CATEGORY 2 CATEGORY 3
Potential earnings are not guaranteed and will vary.
Please see the Melaleuca Compensation Plan and 2008 Annual Income Statistics for details.
Save time and money, and earn
up to 10% in Loyalty Shopping
Dollars. Refer a friend from time
to time if you would like.
How Can Melaleuca Enhance Your Life?
$55,588 Avg. $4,630/month
$1,209,356 Avg. $100,770/month
$148,542 Avg. $12,370/month
Senior Director
Corporate Director
Executive Director
35
3Simple Steps to Get
Started as a Customer
STEP 1:
STEP 2:
STEP 3:
Set up your account and enroll
as a Preferred Customer
Preselect your Backup Order
Place your first product order
* Notify Melaleuca in writing by the 25th day of any month. See Melaleuca Customer Agreement for more details.
There’s No Risk…
You can cancel your membership at any time.*
Getting Your Business Started the Right Way
Save an Extra 30% and Qualify for Pacesetter Bonuses
Value Pack
Save 30% off the
Preferred Customer Price
Only $199
Career Pack
Save 30% off the
Preferred Customer Price
Only $299
Pacesetter Pack
with 10 Membership Kits
Save an Extra $50
Career Pack shown.Value and Career Pack product assortments are subject to change without notice.
Developmental Status
Only 1 out of 9 customers (11%) will decide to start their own Melaleuca business and eventually achieve Director status
or above. Directors have made a substantial effort (probably spent at least 50 hours) in developing at least eight Melaleuca
customers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years. But at
some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleuca customers.
Active
Executive
Status
Percent of
Business
Builders with
This Status
Annual Income Minimum
Personal
Customers
Average
Personal
Customers
Minimum
Total
Active
Customers
Average
Total
Active
Customers
Time to Achieve Status1
High Low Average
Shortest
Time
Longest
Time
Average
Time
Director I/II 83.7% $16,007 $70 $2,250 10 14 10 65 1 Mo. 120 Mo. 7 Mo.
Customer Referrals Status
29%of all Melaleuca customers have referred at least one customer but fewer than eight customers. As those customers purchase
products directly from Melaleuca, those who referred them receive a small commission. These households are not necessarily
interested in the financial opportunity. Their relationship with Melaleuca is primarily because they love Melaleuca products. Their
“status” is determined by how many customers they have referred. A Marketing Executive has at least one customer. A Marketing
Executive II has referred at least two customers and a Marketing Executive III has referred at least four customers at some time
in their life. While these individuals may not be considered serious business builders, their customers (like the vast majority of
Melaleuca customers) come from word-of-mouth referrals. Therefore, the overall contribution of these individuals is significant.
Active
Executive
Status
Percent
at This
Status
Annual Income Minimum
Personal
Customers
Average
Personal
Customers
Minimum
Total
Active
Customers
Average
Total
Active
Customers
Time to Achieve Status1
High Low Average
Shortest
Time
Longest
Time
Average
Time
Mkt. Executive
Mkt. Exec. II
Mkt. Exec. III
73.8%
15.3%
10.9%
$1,428
$2,383
$7,293
$24
$24
$64
$87
$221
$561
0
2
4
1
2
5
0
2
4
4
10
22
1 Mo.
1 Mo.
1 Mo.
120 Mo.
120 Mo.
120 Mo.
3 Mo.
6 Mo.
5 Mo.
Customers
The majority (more than 60%) of those who
buy Melaleuca products each month are strictly
customers. They are not interested in ­pursuing the
Melaleuca financial opportunity. They just love
Melaleuca products. Only a few of them will ever
decide to build a Melaleuca business.
2008 Annual Income Statistics
Initial Leadership Status
Leaders at these statuses have made a more serious effort at building a Melaleuca business. Those who have reached these
leadership statuses have not only invested enough time to develop several customers, but they have also helped some of those
customers start a business and become Marketing Executives. Those Marketing Executives have, in turn, referred additional
customers who purchase Melaleuca products each month. Commissions are paid based on the development of customers and the
development of leaders who help others reach their goals.
Active
Executive
Status
Percent of
Business
Builders
with This
Status
Annual Income Minimum
Personal
Customers
Average
Personal
Customers
Minimum
Total
Active
Customers
Average
Total
Active
Customers
Time to Achieve Status1
High Low Average
Shortest
Time
Longest
Time
Average
Time
Dir. III
Dir. IV / V
Dir.VI / VII
Dir.VIII / IX
6.2%
3.6%
1.3%
0.8%
$20,622
$29,005
$43,381
$65,553
$1,967
$5,013
$8,701
$12,810
$7,239
$12,087
$18,780
$27,437
11
13
15
18
29
36
46
50
33
94
201
303
172
294
406
618
1 Mo.
1 Mo.
1 Mo.
1 Mo.
120 Mo.
120 Mo.
120 Mo.
120 Mo.
14 Mo.
19 Mo.
21 Mo.
22 Mo.
Advanced Leadership Status
Those Marketing Executives who reach Senior or Executive Director status have shown substantial interest and dedication in
building a Melaleuca business. While they may not work their business full-time, it is essential that they invest some time each
month nurturing, training, and helping those in their marketing organization. Melaleuca advocates that Marketing Executives
keep their full-time job and work their Melaleuca business in their spare time. However, some Executive Directors at the higher
income levels do work their business close to full-time. Melaleuca strongly advocates that Marketing Executives do not quit
their full-time job until their Melaleuca income far surpasses the income they receive from their full-time employer. Rather, they
should add their Melaleuca income to their regular income, thereby making a substantial difference in their family finances.
Active
Executive
Status
Percent of
Business
Builders
with This
Status
Annual Income Minimum
Personal
Customers
Average
Personal
Customers
Minimum
Total
Active
Customers
Average
Total
Active
Customers
Time to Achieve Status1
High Low Average
Shortest
Time
Longest
Time
Average
Time
Senior Dir.2
Executive Dir.3
Corporate Dir.4
2.8%
1.5%
Less than
0.1%
$175,844
$591,424
$2,176,348
$22,177
$39,248
$559,043
$55,588
$148,542
$1,209,356
20
20
20
65
89
113
369
853
7,832
971
2,643
12,915
1 Mo.
4 Mo.
29 Mo.
120 Mo.
120 Mo.
120 Mo.
22 Mo.
24 Mo.
39 Mo.
The above annual income statistics include all Melaleuca North American Marketing Executives who were active during all 12 months of the period ending December 2008 and performed the
minimum activity required at each status level. The incomes stated include all commissions and bonuses actually paid during the period.
For the purpose of these statistics, a Marketing Executive’s leadership or developmental level was calculated by taking the highest status achieved and maintained for at least five consecutive
months. The information on this page is not necessarily representative of what any individual Marketing Executive will earn with this program. Any representation or guarantee of specific
earnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a Marketing
Executive exercises those qualities.
1
Includes all active Marketing Executives joining Melaleuca within the past 10 years.
2
Includes statistics for Senior Director through Senior Director IX.
3
Includes statistics for all positions of Executive Director through Executive Director IX.
4
Includes statistics for positions of Corporate Director and higher.
© 2009 Melaleuca, Inc. Printed in the USA
Rev. 04/09U
Enhancing the lives of those we touch
by helping people reach their goalsSM
101702180

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Delivering Wellness

  • 2. 1 The Wellness Company • Proven Track Record • Debt-Free • Strong Management Exceptional Products That: • People Use Every Day • Are Safer for Your Home and Environment • Are a Better Value Than Grocery Store Brands Revenue Sharing at Melaleuca • No New Money—Simply Switch Stores • High Customer Reorder Rate • No Risk Anyone Can Be Successful…Anytime What We Will Discuss Today
  • 3. 2 Melaleuca’s Since its beginning in 1985, CEO Frank L. VanderSloot’s passion for helping the average family has been the driving force behind Melaleuca’s mission. Our Mission: To Enhance the Lives of Those We Touch by Helping People Reach Their GoalsSM Heritage
  • 4. 3 FINANCIA L WELLNESS PHYSICA L WELLNESS PERSONALW ELLNESS ENVIRONMENTAL W ELLNESS Live Longer, Healthier, More Vibrant Lives Make Our Homes and the Environment Cleaner, Safer Places Achieve Balance, Freedom, and Peace of Mind in Your Personal and Family Life Get Out of Debt and Secure Your Financial Future Melaleuca: The Wellness Company™
  • 5. 4 A Different Kind of Company Instead of paying millions to retailers and advertisers, Melaleuca redirects revenue from its product sales to the average family and offers them the opportunity for wealth without a large investment or risk.
  • 6. 5 Since its beginning in 1985, annual sales have grown to over $800 million. Melaleuca’s 24-year proven track record of success is unmatched! Each month, over 500,000 households shop with Melaleuca, a testament to the quality and value of our products. $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000 $450,000,000 $500,000,000 $550,000,000 $600,000,000 $650,000,000 $700,000,000 $750,000,000 $800,000,000 $850,000,000 1985 1991 1997 2003 2008 Melaleuca’s Growth Record
  • 7. 6 Melaleuca’s Success Melaleuca appeared on Inc. magazine’s list of fastest-growing companies for 5 consecutive years and earned a place on the prestigious Inc. 500 Hall of Fame. Melaleuca is a recipient of the esteemed Better Business Bureau Torch Award, granted only to select companies that prove a long history of exemplary business practices.
  • 8. 7 We refer customers to shop with Melaleuca. They shop direct by phone or online. Approximately 95% of our customers who shop this month will shop again next month. Each time they shop, we earn a commission. The result? We share in the revenue and earn ongoing commissions called residual income. What Melaleuca Does… We Deliver Wellness® It’s called Consumer Direct Marketing,® and only Melaleuca does it.
  • 9. 8 NO Large Investment NO Carrying Inventory NO Taking Orders and Making Deliveries NO Billing and Collections NO Pressuring Customers to Purchase NO Repeat Sales Presentations NO Risk Simply Switch Stores and Save At Melaleuca, Revenue Sharing Just Makes Sense
  • 10. 9 Simply switch a portion of what you’re already spending at the grocery store to Melaleuca, where you’ll find better, safer products. • No New Dollars Required • Keep Your Budget Intact Simply Switch Stores
  • 11. 10 With a Melaleuca business, hundreds of thousands of average families are improving their lives. The reason? Our Superior Products.
  • 12. 11 Welcome to a Simpler Way of Shopping— Over 300 Exclusive Products You Use Every Day ®
  • 13. 12 ™ No other home cleaning products protect your home, family, and environment like EcoSense SAFER FOR YOUR FAMILY • No chlorine bleach • No ammonia • No aerosols • No formaldehyde SAFER FOR THE EARTH • Super-concentrated • No fillers • No phosphates SAFER FOR YOUR HOME • Effective, naturally derived ingredients • No abrasives • pH-balanced (non-alkaline) Cleaners
  • 14. Safer and More Effective Diamond Brite® Patented formula with naturally derived enzymes gets your dishes and silverware shiny and spot-free without using chlorine bleach, phosphates, or other harmful ingredients. MelaPower® 6x The concentrated, pH-balanced formula uses powerful, naturally derived surfactants to wash away stubborn dirt and stains without damaging clothing. Our concentration technology is patent pending and exclusive to Melaleuca. Our proprietary Rinse Guard™agent actually keeps dirt from settling back onto your clothes during the rinse cycle. 13
  • 15. 1414 6XCONCENTRATED MelaPower® 6X 192 loads $29.99PREFERRED CUSTOMER 6 Bottles of 2X Ultra Tide® 192 loads total $61.74* COMPETITOR PRICE Concentrated Means Less Waste and More Savings VS = = = Clear Power® Makes 96 fl. oz. $5.69PREFERRED CUSTOMER Tub Tile™ Makes 96 fl. oz. $5.69PREFERRED CUSTOMER 3 Bottles of Windex® 96 fl. oz. total $10.47*COMPETITOR PRICE 6 Bottles of Lime-A-Way® 96 fl. oz. total $20.94*COMPETITOR PRICE *Competitor product prices from Albertsons.com, Portland, OR and Kroger, Atlanta, GA March 11, 2009. Prices may vary. Product names are trademarks of their respective owners. VSVS
  • 16. 15 Sol-U-Guard Botanical® 2x Concentrate • Kills household germs like staph, E. coli, and rhinovirus— the leading cause of the common cold • Gentle enough to use around children and pets • No chlorine bleach, ammonia, harsh fumes, or harmful residue • Available only at Melaleuca EPA-Approved to Kill 99.9% of Germs with the Natural Power of Thyme and Citric Acid 2x concentrated to save you money
  • 17. 16 Our products are sourced from natural, sustainable sources We don’t use phosphates, chlorine bleach, or ammonia We were green long before being green was popular Melaleuca is the world leader in concentrated products and technology Caringfor the EnvironmentSince 1985 If every household used concentrated EcoSense™ products instead of grocery store brands, in 10 years we would save almost 7 billion pounds of plastic. That would be 78 billion fewer plastic bottles in our landfills! Phosphates in our waterways cause excessive growth of algae, deplete oxygen levels, and damage fragile aquatic ecosystems.
  • 18. 17 Want More Energy andBetter Health? Fact: 4 out of 5 adults are not eating their daily serving of fruits and vegetables. • The minerals in other top-selling supplements have been proven to crystallize during digestion, which inhibits absorption • The human body was made to absorb vitamins and minerals from natural foods like fruits and vegetables • The minerals in plants are bound to proteins and fibers—making them easier for our bodies to absorb • Oligofructose Complex™ prebinds minerals to proteins and oligofructose fibers, similar to how they exist in plants and foods THE RESULT? No other mineral form is more absorbable than Melaleuca’s Oligofructose Complex.* *Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions.
  • 19. 18 1 Vitality Pack® Daily Dose or or at least 15 One A Day®* at least 33 Centrum® Do You Think Your Body Is Getting100%of the Vitamins and Minerals Shown on the Label? The difference you’ll feel using the Vitality Pack is so impressive, it’s guaranteed. If after 90 days you don’t feel a marked difference in your health and energy, we’ll refund your money—no questions asked. THE BOTTOM LINE: Minerals found in other top-selling supplements crystallize when digested, aren’t as absorbable, and destroy important vitamins like C and E. Oligofructose minerals found in the Vitality Pack are up to 10 times more available for absorption and protect antioxidant vitamins 5 times better. Labels don’t indicate the rate of solubility, availability, or absorption. For example, tests show that in order to get the same amount of Vitamin C or Copper, you’d have to take… *Comparison vs. One A Day Women’s
  • 20. 19 The World’s Leader in Natural Heart Health Solutions Phytomega® Naturally lowers LDL cholesterol while maintaining healthy triglyceride levels* FiberWise™ Helps reduce LDL cholesterol and promotes a healthy digestive tract* ProStolic® Naturally maintains healthy blood pressure with milk peptides* ProvexCV® Reduces LDL oxidation, promotes healthy blood platelet activity and endothelial function* Fact: Cardiovascular health is the #1 health concern in North America. cholesterol triglyceride levels endothelial function platelet Function blood pressure LDL oxidation *These statements have not been evaluated by the Food Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.
  • 21. 20 Exerciseand Weight Loss ProductsThat Work! Access® Patented nutrition that turns fat into fuel for exercise with half the calories of Original PowerBar® Simply Fit™ 10 organic whole grains and seeds and no trans fat—a genuinely healthy snack! Attain® Reduces cravings to support healthy weight loss efforts with natural CraveBlocker,™ not found in SlimFast® Sustain® Sport Provides hydration and endurance with twice the electrolytes and fewer calories than Original Gatorade® drinks Facts: Over 60% of American adults are overweight. Weight loss and exercise is a $43 billion industry.
  • 22. 21 Envia Shampoo and Conditioner • Patented Lipid Replenishing System adds shine, strength, and moisture to your hair • Patented UV Protection System prevents color-fading, split ends, and UV damage • Delivers salon-quality results without salon prices Products No Family Should Be Without Bath Body Essentials Beautiful Hair from Nature’s Salon Silky Soft Skin from Head to Toe Exclusively for Men Products for strong, healthy kids ® ™
  • 23. 22 Skin Careand CosmeticsExclusively at Melaleuca Necessities Skin Care Set (Cleanser, Toner, Moisturizer) • Protects your skin from UV damage • Nourishes skin with vitamins and botanicals • Helps restore skin’s firmness and tone with peptides Natural Ingredients Proven Formulas Visible Results
  • 24. 23 Complete First Aid Antiseptic and herbal ingredients naturally soothe and help speed healing Natural Dental Care Exceptional dental care featuring pure T40-C3® Melaleuca Oil Skin Protection Advanced dry skin, acne, and sun care Drugstore Essentials Save up to 50% vs. major brands Melaleuca Oil is well-known for its soothing, penetrating, and antiseptic healing properties
  • 25. 24 Do Youor Someone You Know Sufferfrom Severely Dry Skin? Eczema Psoriasis Rosacea Clinically proven to work faster, better, and last longer than Eucerin® ! MOISTURE RETENTION *Clinical study with dry skin from eczema 7xas effective vs. Eucerin on moisture retention EUCERIN® RENEW™ Climate associated with: Proven to leave dry skin feeling softer, smoother, and healthier- looking in just 24 hours.*
  • 26. 25 Exclusive Membership Benefits We leverage our large number of customers to negotiate these incredible savings—then pass them on to you. Plus, save hundreds of dollars by using additional Melaleuca services with low, pre-negotiated rates .COM With your membership, save up to at more than 70 online retailers 15%
  • 27. 26 Value of Monthly Shopping TOTAL PRICE OF GROCERY STORE BRANDS $ 99.97* *Competitor retail prices from Albertsons, Albertsons.com, Target, and Drugstore.com as of March 12, 2009. Prices will vary. Product names are trademarks of their respective owners. MELALEUCA REGULAR PRICE $ 79.98 Become a Preferred Customer—spending about $50 to $60 each month—and save 30% to 40% each time you shop! YOUR DISCOUNTED PREFERRED CUSTOMER PRICE $ 55.33 With the Loyalty Shopping Dollars program, you can earn up to $100 in FREE PRODUCTS when you shop in your first five months! After five months, you can earn up to 10% back in LOYALTY SHOPPING DOLLARS when you shop early in any month. Loyalty Shopping Dollars Make Melaleuca Even More Rewarding 2 50 fl. oz. bottles of 2X Ultra Tide® = 64 loads 5 bottles of Softsoap® = 500 uses 3 bottles of Formula 409® = 96 fl. oz. The Value of Concentration 1 32 fl. oz. bottle of MelaPower® 6X = 64 loads 1 bottle of Melaleuca Liquid Soap = 500 uses 1 bottle of Tough Tender® makes 96 fl. oz.
  • 28. 27 Preferred Customer Membership Preferred Customers agree to shop each month with Melaleuca WE PROMISE: • Preferred Customer Pricing 30%–40% off the regular price • Exceptional Products Delivered Conveniently to Your Door • Loyalty Shopping Dollars You can earn up to $100 in Loyalty Shopping Dollars in your first 5 months and up to 10% thereafter* • Save up to 15% at Online Retailers with Melaleuca Marketplace • Savings on Everyday Services • No Risk—You Can Cancel Your Membership at Any Time 100% satisfaction guaranteed* YOU AGREE TO: Become a Preferred Customer $29 membership fee* Simply Switch Stores and Shop with Melaleuca Each Month Purchase 35 Product Points each month— about $50 to $60 dollars redirected from the grocery store Preselect Your Backup Order Protect your Preferred Customer benefits 3 3 3 On average our customers order 48 PRODUCT POINTS per month *See Melaleuca Customer Agreement for more details. If you forget to shop during the month, we’ll send your preselected products, charge your method of payment, and protect your savings and other benefits!
  • 29. 28 You Can See Why Being a Preferred Customer Makes So Much Sense… How would an extra $ 500, $ 1,000or $ 10,000 per month improveyour life?
  • 30. 29 Personally refer customers to shop with Melaleuca and help others do the same 1 2 Earn 7% to 20% each time customers you refer shop at Melaleuca Earn 7% each time customers in your organization who are referred by others shop at Melaleuca Anyone Can Build a Successful Melaleuca Business You Can Earn Residual Income in Two Ways: See Melaleuca Compensation Plan for more details.
  • 31. 30 Marketing Executive Others can also refer new customers and place them in your organization. You can revenue share on up to 30 customers in your first two generations. Your Household 7% 5 7% 25 Households 1 2 See Melaleuca Compensation Plan for more details.
  • 32. 31 Director Is a person who refers 8 customers and can now be paid residual income through seven generations Helping the Average Family: Seven families benefit from every Melaleuca purchase 1 2 3 4 5 6 7 Your Household 7% 5 7% 25 Households 7% 125 Households 7% 625 Households 7% 3,125 Households 7% 15,625 Households 7% 78,125 Households Refer 2 Customers See Melaleuca Compensation Plan for more details. Refer 8 customers and earn 7% on each generation and up to 20% on all your personally referred customers Refer 4 Customers
  • 33. 32 IMPORTANT STEPS Director Status Achieved Personally Referred Customers Potential Monthly Residual Income PLUS POTENTIAL Monthly BONUS POOL PLUS One-time or PaceSetter Bonus 2008 MONTHLY INCOME statistics Become a Director by Personally Referring 8 Customers Director 8 $500 – $100 or $200 $180 $1,330II 10 $750 – $200 or $400 Develop 1 Personal Director III 11 $1,000 $1,000 $300 or $600 $603 $1,710 Total of 2 Personal Directors IV 12 $1,500 $1,500 $400 or $800 $1,010 $2,410V 13 $2,000 $2,000 $500 or $1,000 Total of 3 Personal Directors VI 14 $2,500 $2,500 $600 or $1,200 $1,560 $3,610VII 15 $3,000 $3,000 $700 or $1,400 Total of 4 Personal Directors VIII 16 $3,500 $3,500 $800 or $1,600 $2,280 $5,460IX 18 $4,000 $4,000 $1,000 or $2,000 Getting Started: A Part-Time Referral Business For illustration purposes only. Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details. Avg. high Avg. high Avg. high Avg. high Avg. high
  • 34. 33 Residual Income to Last a Lifetime Unlimited PLUS AN EXTRA 2% ON ALL CUSTOMER PURCHASES STATUS PERSONAL DIRECTORS POTENTIAL MONTHLY INCOME BONUSES Unlimited Unlimited BONUS POOL $10,000 CAR BONUS $400 BONUS POOL $20,000 CAR BONUS $1,000 BONUS POOL $20,000 CAR BONUS $1,000 ADVANCEMENT BONUS (One-Time or Pacesetter) TYPICALLY $2,000 TO $10,000 TYPICALLY $10,000 TO $20,000 TYPICALLY $50,000 TO $100,000 PLUS A ONE-TIME ADVANCEMENT BONUS $100,000 10DIRECTORS 5DIRECTORS 5EXECUTIVE DIRECTORSThrough Corporate Director IX Through Executive Director IX Through Senior Director IX Senior Director Executive Director Corporate Director For illustration purposes only. Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details.
  • 35. 34 Earn up to $5,000–$20,000 or even more each month with a continued, consistent effort. Earn up to $500–$5,000 each month, depending on your time and consistent effort. PART-TIME REFERRAL BUSINESSPREFERRED CUSTOMER Shop and Save 30%–40% Invest 5–15 Hours a Week Put In a Serious Effort—20+ Hours Each Week SIGNIFICANT REFERRAL BUSINESS CATEGORY 1 CATEGORY 2 CATEGORY 3 Potential earnings are not guaranteed and will vary. Please see the Melaleuca Compensation Plan and 2008 Annual Income Statistics for details. Save time and money, and earn up to 10% in Loyalty Shopping Dollars. Refer a friend from time to time if you would like. How Can Melaleuca Enhance Your Life? $55,588 Avg. $4,630/month $1,209,356 Avg. $100,770/month $148,542 Avg. $12,370/month Senior Director Corporate Director Executive Director
  • 36. 35 3Simple Steps to Get Started as a Customer STEP 1: STEP 2: STEP 3: Set up your account and enroll as a Preferred Customer Preselect your Backup Order Place your first product order * Notify Melaleuca in writing by the 25th day of any month. See Melaleuca Customer Agreement for more details. There’s No Risk… You can cancel your membership at any time.*
  • 37. Getting Your Business Started the Right Way Save an Extra 30% and Qualify for Pacesetter Bonuses Value Pack Save 30% off the Preferred Customer Price Only $199 Career Pack Save 30% off the Preferred Customer Price Only $299 Pacesetter Pack with 10 Membership Kits Save an Extra $50 Career Pack shown.Value and Career Pack product assortments are subject to change without notice.
  • 38. Developmental Status Only 1 out of 9 customers (11%) will decide to start their own Melaleuca business and eventually achieve Director status or above. Directors have made a substantial effort (probably spent at least 50 hours) in developing at least eight Melaleuca customers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years. But at some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleuca customers. Active Executive Status Percent of Business Builders with This Status Annual Income Minimum Personal Customers Average Personal Customers Minimum Total Active Customers Average Total Active Customers Time to Achieve Status1 High Low Average Shortest Time Longest Time Average Time Director I/II 83.7% $16,007 $70 $2,250 10 14 10 65 1 Mo. 120 Mo. 7 Mo. Customer Referrals Status 29%of all Melaleuca customers have referred at least one customer but fewer than eight customers. As those customers purchase products directly from Melaleuca, those who referred them receive a small commission. These households are not necessarily interested in the financial opportunity. Their relationship with Melaleuca is primarily because they love Melaleuca products. Their “status” is determined by how many customers they have referred. A Marketing Executive has at least one customer. A Marketing Executive II has referred at least two customers and a Marketing Executive III has referred at least four customers at some time in their life. While these individuals may not be considered serious business builders, their customers (like the vast majority of Melaleuca customers) come from word-of-mouth referrals. Therefore, the overall contribution of these individuals is significant. Active Executive Status Percent at This Status Annual Income Minimum Personal Customers Average Personal Customers Minimum Total Active Customers Average Total Active Customers Time to Achieve Status1 High Low Average Shortest Time Longest Time Average Time Mkt. Executive Mkt. Exec. II Mkt. Exec. III 73.8% 15.3% 10.9% $1,428 $2,383 $7,293 $24 $24 $64 $87 $221 $561 0 2 4 1 2 5 0 2 4 4 10 22 1 Mo. 1 Mo. 1 Mo. 120 Mo. 120 Mo. 120 Mo. 3 Mo. 6 Mo. 5 Mo. Customers The majority (more than 60%) of those who buy Melaleuca products each month are strictly customers. They are not interested in ­pursuing the Melaleuca financial opportunity. They just love Melaleuca products. Only a few of them will ever decide to build a Melaleuca business. 2008 Annual Income Statistics
  • 39. Initial Leadership Status Leaders at these statuses have made a more serious effort at building a Melaleuca business. Those who have reached these leadership statuses have not only invested enough time to develop several customers, but they have also helped some of those customers start a business and become Marketing Executives. Those Marketing Executives have, in turn, referred additional customers who purchase Melaleuca products each month. Commissions are paid based on the development of customers and the development of leaders who help others reach their goals. Active Executive Status Percent of Business Builders with This Status Annual Income Minimum Personal Customers Average Personal Customers Minimum Total Active Customers Average Total Active Customers Time to Achieve Status1 High Low Average Shortest Time Longest Time Average Time Dir. III Dir. IV / V Dir.VI / VII Dir.VIII / IX 6.2% 3.6% 1.3% 0.8% $20,622 $29,005 $43,381 $65,553 $1,967 $5,013 $8,701 $12,810 $7,239 $12,087 $18,780 $27,437 11 13 15 18 29 36 46 50 33 94 201 303 172 294 406 618 1 Mo. 1 Mo. 1 Mo. 1 Mo. 120 Mo. 120 Mo. 120 Mo. 120 Mo. 14 Mo. 19 Mo. 21 Mo. 22 Mo. Advanced Leadership Status Those Marketing Executives who reach Senior or Executive Director status have shown substantial interest and dedication in building a Melaleuca business. While they may not work their business full-time, it is essential that they invest some time each month nurturing, training, and helping those in their marketing organization. Melaleuca advocates that Marketing Executives keep their full-time job and work their Melaleuca business in their spare time. However, some Executive Directors at the higher income levels do work their business close to full-time. Melaleuca strongly advocates that Marketing Executives do not quit their full-time job until their Melaleuca income far surpasses the income they receive from their full-time employer. Rather, they should add their Melaleuca income to their regular income, thereby making a substantial difference in their family finances. Active Executive Status Percent of Business Builders with This Status Annual Income Minimum Personal Customers Average Personal Customers Minimum Total Active Customers Average Total Active Customers Time to Achieve Status1 High Low Average Shortest Time Longest Time Average Time Senior Dir.2 Executive Dir.3 Corporate Dir.4 2.8% 1.5% Less than 0.1% $175,844 $591,424 $2,176,348 $22,177 $39,248 $559,043 $55,588 $148,542 $1,209,356 20 20 20 65 89 113 369 853 7,832 971 2,643 12,915 1 Mo. 4 Mo. 29 Mo. 120 Mo. 120 Mo. 120 Mo. 22 Mo. 24 Mo. 39 Mo. The above annual income statistics include all Melaleuca North American Marketing Executives who were active during all 12 months of the period ending December 2008 and performed the minimum activity required at each status level. The incomes stated include all commissions and bonuses actually paid during the period. For the purpose of these statistics, a Marketing Executive’s leadership or developmental level was calculated by taking the highest status achieved and maintained for at least five consecutive months. The information on this page is not necessarily representative of what any individual Marketing Executive will earn with this program. Any representation or guarantee of specific earnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a Marketing Executive exercises those qualities. 1 Includes all active Marketing Executives joining Melaleuca within the past 10 years. 2 Includes statistics for Senior Director through Senior Director IX. 3 Includes statistics for all positions of Executive Director through Executive Director IX. 4 Includes statistics for positions of Corporate Director and higher.
  • 40. © 2009 Melaleuca, Inc. Printed in the USA Rev. 04/09U Enhancing the lives of those we touch by helping people reach their goalsSM 101702180