Melaleuca vs. Shaklee Comparison: Offset With Industry Heavyweights

Melaleuca, Inc. compares to Shaklee Corp on many external levels. Both are popular natural health and nutrition companies that are not effectively run out of traditional retail outlets and mall stalls, but rather on the internet. More specifically, they are network marketing companies, also known as MLM companies. For anyone unfamiliar with those terms, or confusing them with pyramid schemes, a network marketing company is a legal business built on the premise of independent distributors, not payroll salespeople, promoting an actual product or service. They also encourage potential customers to become involved with the company on a business level as distributors. If you’ve ever met an Avon woman or attended a jewelry party at someone’s house, those are great examples of network marketing companies.

In the natural health and nutrition sector of the network marketing world, Shaklee Corp’s roots historically date back to 1956. However, since Melaleuca debuted in 1985, both companies were founded before the Internet spawned thousands of marketing companies. network marketing in the late ’90s In terms of mission statements, both companies place a high priority on offering products with positive environmental impacts. Shaklee boasts of being the first company in the world to receive the Climate Neutral Certification. Both companies offer a variety of biodegradable household cleaners, and Melaleuca’s namesake is actually the tea tree oil they use as a natural ingredient in many of their products.

While each company’s target audiences sometimes overlap, there are actually several differences both in the specific products available and how they are packaged, as well as in the marketing strategies used to promote them. Shaklee has an obvious advantage because its name has been associated with the health and wellness industry for several decades, resulting in a broader demographic association.

Their newest line is focused on the anti-aging market, with a food supplement called Vivex, however they also cover vitamins, skin care products, cleaning products, and even air purifiers, in an effort to address all aspects of a healthy life. In contrast, Melaleuca offers the same items but branches out more into the home medicine department, offering medicine cabinet staples like aspirin and antacids, as well as dental care and some home décor items like candles. This leads to a slight difference in the target market apart from network marketers. For Shaklee, many customers attribute things like the economic value of its cleaning products’ concentration and the lack of aggressive chemical composition. For Melaleuca, feedback is generated from the variety of items to choose from to meet autoship requirements and the economic value of the ‘in-bundle’ packaging of the products they offer.

Since both companies are network marketing companies, it is important to examine the business opportunity available. Melaleuca operates under the 5×7 matrix plan, which means members start charging a 7% monthly commission for the first five people enrolled. Bonuses are available once Director status has been achieved, which requires the enrollment of 8 members. This step makes the member eligible for the corresponding bonuses; however, continuing to higher levels of Director status, indicated by ascending numbers, is accomplished only by creating Directors in that member’s downline.

Initial startup fees start around $299 for starter packs, however that number can fluctuate due to the commercial pay-as-you-go tools needed to complete their programs, which are available on their website. Shaklee’s membership is also $299, however the increase in structure is a bit more varied and requires fewer people in a member downline to move up the ranks. For example, Director status is achieved at the second level with a total of 6 people in the member’s downline. Bonuses are earned through a member’s first signup, starting at $50. Shaklee also launched a new compensation plan along with its newest product, Vivix, called the Tru-Infinity plan, which allows enrolled members to receive bonuses to an unlimited degree from their downline.