Products and business model

Products and business model While initially based predominantly on melaleuca plant extracts, the product line has since expanded beyond this initial focus. Melaleuca sells products including environmentally friendly household cleaners, personal care items, pharmaceuticals and nutritional supplements. The company markets itself as being earth-friendly, and many of their products are certified organic and Kosher certified. They also launched a cosmetics line in partnership with fashion designer Nicole Miller in August, 1999. They launched a home security line of services and products in 2009. Melaleuca does not allow inventory loading and limits the marketing chain to 7 generations, and prohibits "breakaways" (another practice commonly found in multi-level marketing). Melaleuca also does not require its marketing executives to maintain an inventory. In order to earn commissions from one's customers, marketing executives must produce a minimal number of 35 product points per month (the equivalent of about $45–55 each month) to remain an active Independent Marketing Executive. This in turn qualifies the Preferred customer to receive a 30%-40% discount off the regular purchase price of their personal product purchases. The company also offers their preferred members an opportunity to earn up to 10% of their monthly product order back in "Loyalty Shopping" dollars. After earning $100 in Loyalty Shopping dollars their first five consecutive months, new preferred members are allowed to redeem their earned Loyalty Shopping dollars towards products. The products Melaleuca produces today are typically everyday, consumer items such as shampoo, hairspray, and cleaning supplies. Independent Marketing Executives and Preferred Customers of Melaleuca, Inc. say that the minimum required level to receive this discount is compatible with average household and personal monthly use. According to Melaleuca, the company focuses on developing products that support wellness through a healthy lifestyle and products that are safer for your home. The Company focuses on researching and bringing to market cleaning products that are environmentally friendly and use more natural ingredients. Melaleuca touts that its products perform as good or better than what is found at the local grocery store, but without the bleach, lye, or other chemicals typically found in other brands. The company has developed an extensive line of nutritional products such as vitamin and mineral supplements which claim to promote heart health, cardiovascular, and blood pressure supplements, and a glucosamine product for healthy joints. They also have developed products using natural ingredients that the company claims support healthy vision, healthy prostate, healthy urinary tract, as well as other nutritional supplements. It also has a body and bath product line, beauty and makeup line, and weight management line. Melaleuca uses a direct-to-consumer delivery model, where a customer can place an order via telephone, fax or online (over the internet) and products are delivered to their door via UPS or national mail carrier.