Melaleuca strongly dislikes MLM and has publicly expressed negative views on the business model. The company operates a direct-to-consumer marketing (CDM) structure, which is designed to be most beneficial to customers and executives. However, the format is remarkably similar to MLM: you earn a commission for building a downline, and you earn a commission for both your own referrals and those of your downline. What is different about the Melaleuca CDM model?
Well not much. But just like there are subtle differences between Burger King and McDonald’s, CDM and MLM are not the same. A key difference is in the compensation structure. With MLM companies, you earn a decreasing commission on the sales of your downline. For example, you earn 7% on your first level, 4% on your second, 2% on your third… Low commission rates often mean that the fastest and most efficient way to earn a good level of income is Grow your downline at a rapid pace. With CDM, you earn a consistent level of commission on each generation of your downline; 7% on your first level, 7% on your second, 7% on your third… This takes the pressure off recruiting, which means you can earn a decent commission with just 2-3 in your downline.
This also shifts the emphasis on introducing the products to customers, rather than trying to push starter kits. Compensation is only paid based on your referred customer’s invoice total; You do not receive commissions or bonuses based on customer acquisition/registration. Melaleuca restricts downlines to seven levels, which limits your team size. Because you can only grow your team so far, the way you can earn big income is slightly different. If you introduce your downline to more products and try to get them to increase their monthly order with Melaleuca, then you will receive a higher compensation payment. The focus on products instead of recruiting is a major difference between CDM and MLM.
So is Melaleuca’s CDM structure MLM in disguise? quite Melaleuca just put its own spin on the MLM model. For more information on Melaleuca’s CDM structure, visit ExplosiveMLM.com