When considering a company, a professional or a product, it’s important to
research all credentials before making a decision. Below I have compiled a series
of articles on Melaleuca Inc. that you may find of interest.
Over the years, I have met many disillusioned people who have spent thousands
of dollars and hours of time searching for the right opportunity only to have their
dreams shattered. After reviewing this information, I am sure you will have a
better understanding of Melaleuca’s credentials. After 21 years of unprecedented
continued grow, Melaleuca Inc and their products are in a class by themselves.
Series of Credentials
Melaleuca Inc.
Frank L. VanderSloot, CEO
Melaleuca Inc. Idaho Falls, Idaho
Entrepreneur of the Year for the Northwest Award 2001
Awarded by CNN—USA Today—Nasdaq—Ernst & Young
June 14, 2001
Idaho Business Leader of the Year 1998—Frank L.
VanderSloot
Gary Michaels of Albertsons was the 1997 IBL of the Year
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Regional Vice Chairman of the U.S. Chamber of Commerce (2004)
U.S. Chamber of Commerce board of Directors (three years)
Inc. 500 Hall of Fame—Melaleuca Inc. ranked 5 consecutive years
1990-1991-1992-1993-1994
Only 33 other companies have ever been rated 5 consecutive years
Rated in Dun & Bradstreet with a 4A1 rating those same 5 years.
6th Largest privately held corporation in the state of Idaho 2004
Employs over 2,500 employees in Eastern Idaho
U.S. Chamber of Commerce Blue Chip Enterprise Award 1992.
Melaleuca Inc. received the Idaho Association of
Commerce and Industry award for Environmental Excellence
2003
American Psychological Association (APA)'s "The
Psychologically Healthy Workplace Award: Best Practices
Honors,"
Better Business Bureau Hall of Fame 2006
International Corporation
United States—Canada—Japan—Taiwan—Hong Kong
Singapore—Australia—Korea—United Kingdom—New Zealand
and Holland.
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1985 through 2005 -$702 million in sales
After 21 years of proven success, Melaleuca's Growth Continues!
When Melaleuca started in 1985, it had seven employees and eight products. Twenty years
later, Melaleuca has grown into an international wellness company that employs more than
2,500 people, manufactures more than 300 products, and has a proven growth record that
continues year after year. This year we have reached another milestone … over $700 million
in sales! And we’re steadily approaching the $1 billion mark.
This achievement means more than just money. It means that Melaleuca businesses are
growing and lives are being enhanced around the world. It means families are
accomplishing their physical, financial and personal goals. It means that every year, more
and more people are choosing a wellness lifestyle. And it means that there is a marvelous
future ahead for those who want to make a difference for themselves, their loved ones and
everyone they meet. It doesn’t matter if you are a Corporate Director or just starting your
Melaleuca business—this is the place to accomplish your goals, to find success, and to “build
a business to last a lifetime.”
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What’s Behind the Growth?
Let’s take a look at some of the competitive advantages Melaleuca enjoys. These
advantages form the foundation of an impressive history leading to a spectacular future.
For more than two decades, Melaleuca has offered an unparalleled opportunity to own and
operate a real business with real products and make real money with the support and
assurance of a company that will continue to grow long into the future. With this unmatched
growth in the United States, Canada and around the world, complimented by the impressive
figures from 2005, Melaleuca has proven again and again that this is where you come to
“build a business to last a lifetime.”
‘Perfect’ Timing
Talk in other ‘opportunities’ is often about timing-by ‘getting in’ early, you optimize your
profitability potential. A quick glance at Melaleuca’s marketing plan over the years shows
that the profitability potential was pretty good in years past. But today’s business potential
is now better than it has ever been. And in another 5, 10 and 20 years, it will be even
better. This is how Melaleuca works. By providing the best business support possible backed
by exceptional products, focus is placed on success not just for today but for years to come.
That is enhancing lives.
Here’s an example to illustrate this point. Executive Director VIII Tom Pisano enrolled in
1991, nearly 15 years ago. During his first year, he worked tirelessly to build his Melaleuca
business and made approximately $116,000 in 12 months. If he had enrolled in 2005 and
put in the exact same amount of work, building the same Melaleuca business, he would
have earned nearly $400,000 in 12 months. The profitability potential just keeps getting
better.
Melaleuca, an Authentic Business Opportunity
One of the reasons Melaleuca is so successful and continues to grow is because Melaleuca
provides an authentic business opportunity. We attract real customers who grow to love our
products. We are able to thrive against even the largest manufacturers and retailers by
leveraging a disruptive business model. Our innovative approach to customer value,
customer experience and customer proximity enables Melaleuca to engage the heart and
mind of both customers and business builders as we enhance lives around
the world.
Authentic Business
It seems like every week a new business opportunity is launched offering
unique product and promising unlimited income potential. In truth,
developing a real business opportunity requires more thought and
preparation than most founders invest. That is why so many ‘business
opportunities’ fail. A true business opportunity must be able to acquire
customers and sales from powerful and entrenched competitors. In short,
it must be disruptive to the natural order of things in a given industry.
Disruptive businesses are innovative businesses that succeed in changing
the rules of the industry they compete in to achieve competitive
advantage. In computers, Dell is currently the disruptive force. In coffee, it’s Starbucks. In
books, it’s Amazon.com. In air travel, it’s Southwest. In rental cars, it’s Enterprise. In video
rentals, it’s Netflix. In direct sales, it’s Melaleuca! These companies all have three things in
common. They have carefully defined their approach to customer value, customer
experience and customer proximity—to change the rules of the game and disrupt larger
competitors. One key difference between Melaleuca and all other business opportunities out
"No matter how
bad the
economy is,
people will
always need to
shower, shave,
and brush their
teeth — people
will always need
these products"
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there is that Melaleuca leverages a truly disruptive business model. Melaleuca provides
innovative value by offering exceptional products at reasonable prices. Melaleuca provides a
more personalized experience for the shopper than they get when shopping in today’s
cavernous stores. In most cases you personally know the person who introduced you to
Melaleuca. And because Melaleuca is a global leader in direct-to-consumer marketing, its
innovative approach to customer proximity allows you flexibility in building your business
while building lasting relationships with customers worldwide.
‘Exclusive’ Products
Products are at the heart of every viable consumables business. An authentic business
opportunity needs to have 1) exclusive products that 2) are effective in delivering the
promised benefit and 3) are priced to capture real transactions from competing products in
the general marketplace. Many MLM business opportunities have “exclusive” products, but
often lack scientific evidence of effectiveness and typically price their products 3-5 times
higher than competing goods in the mass market. People are not buying their products
based on the value they deliver. They buy them because one day they hope to become rich.
These are not real business opportunities. Real opportunities enable real business owners to
capture real transactions from the real marketplace.
The best way to evaluate any business opportunity is to imagine separating the product
from the income opportunity and placing the product into the mass market. If the product,
offered to the market at its listed price, is capable of both attracting and keeping customers
over the long term, the opportunity is real. If it isn’t, the opportunity is not real. To
illustrate this point, consider the many MLM ‘business opportunities’ out there today selling
exotic juice drinks. Are the various exotic juices exclusive? Yes. Do the magic juices have all
of the scientific evidence to back up the claims they make? No. Are the magic juices priced
to compete with similar products in the marketplace? No. Based on this simple review, it
becomes clear that the business opportunities selling magic juice are not real business
opportunities. Like many that have come before them, they have no long-term staying
power. In contrast, Melaleuca has a 20-year track record of growth offering exclusive
products that are effective and are priced to compete and thrive in a competitive
marketplace.
Capture the Heart and Head
Many MLM businesses are overly fixated on money. This cult-like focus can limit their ability
to help people, or worse, it can actually lead them to harm other people financially. For any
business to be truly effective, it must engage the heart and head. It must enable belief
among its people in four key areas. First, the business must have a noble mission - like
Enhancing Lives. Second, the products must clearly support the mission—like helping people
reach their wellness goals. Third, the day-to-day work of the business must help develop
and improve people—so they reach their personal, professional and family goals. And
fourth, the business opportunity must be able to deliver supplemental income in both the
short and long term.
Growth in Action
Success stories abound at Melaleuca. People are setting and achieving goals. Families are
living the lifestyles of their dreams. They are living healthier. They are retiring earlier. They
are financially secure. And the best thing is that there are more and more of them as time
passes. It’s not just a few at the top—anyone can do it, and they are doing it.
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Better Business Bureau Honors Melaleuca
Better Business Bureau Honors Melaleuca
The Eastern Idaho and Western Wyoming division of the Better Business Bureau
recently presented Melaleuca President and CEO Frank L. VanderSloot with its
2005 “Hall of Fame” award. This prestigious award honored Melaleuca for its
example of ethics and integrity in dealings with customers, employees, and the
community.
Melaleuca: A Reputable Company
As a new start-up company in 1985, Melaleuca generated significant amounts of
public attention from individuals who wanted to know if Melaleuca was a
financially sound company, with quality products, reputable managers, and a
history of ethical business practices. Building just such a reputation was a vital
concern to Frank and his management team.
Although the Better Business Bureau cannot endorse any business, it recognizes
Melaleuca’s 20-year reputation of ethics and integrity as a reputable company. As
Melaleuca’s presence continues to grow in communities across North America and
around the world, an ever broadening spectrum of people ask these same
questions all over again. Now, because of recognition such as the BBB ‘Hall of
Fame’ award, it is easier, though no less important, to demonstrate to consumers
everywhere that our mission of enhancing lives is accomplished in accordance to
the highest standards of ethical business.
What is the Better Business Bureau?
The Better Business Bureau’s mission is to promote and foster the highest ethical
relationship between businesses and the public through voluntary self-regulation,
consumer and business education, and service excellence.
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The Better Business Bureau was founded in 1912 and is today supported by more
than 300,000 local business members nationwide. It is dedicated to fostering fair
and honest relationships between businesses and consumers, instilling consumer
confidence and contributing to an ethical business environment.
2006 New Management and Research members
Melaleuca’s 2005 gross sales were $702 million. They grew by approximately $68 million from
2004. 2006’s sales are expected to surpass 2005’s by more than they grew last year.
In the recent months Melaleuca has added a significant number of new scientists and additional
talent in marketing and finance. Some of the finest scientific minds in America are now
employed by Melaleuca.
1. Bill Marasky a former consultant to Time Life and Reebok who served as marketing director
for Asia pacific for Eastman Kodak, is now Vice President of Operations for Melaleuca Inc.
2. Bruce Bolinger, a former Vice President of Marketing for Accelerate Marketing, Snapple
Beverages, Pepper Ridge Farms, Campbell’s Soup and Nabisco is currently Vice President of
Marketing for Melaleuca’s nutritional line, Vitality for Life.
3. Beth Fitzgivens spent 20 years with Avon as head of “Global Business Development. She is
now Vice President of Marketing for Nicole Miller and Bath and Body for Melaleuca Inc.
4. Dr. Rob Wildman, PHd. in nutrition had previously been a professor of nutrition at Ohio
University, University of Delaware and University of Louisiana where he was a tenured
professor. He authored over 17 articles in scientific journals.
5. Dr. Jay Chow, principle nutritionist at the University of San Francisco on age related bone
loss and the antioxidant capacity of cells. Post doctoral fellow at the University of Florida.
6. Dr. Michael Kelly, now Director of Melaleuca’s division of Bio Science spent the past 10
years as the lead scientist for Abbott Laboratories, one of the worlds leading producers of
nutritional and pharmaceutical products. He also taught at Harvard University for several years
in human diet, minerals, vitamins and their impact on metabolism.
Melaleuca has recently completed their new Distribution Facility on their 150 acre land site in
Idaho Falls, Idaho. The new distribution facility is a 155,000 square feet, which is
approximately the size of 4 ½ football fields that can expand to 460,000 square feet. Those of
you who attended the January Launch viewed this impressive facility that is state of the art. This
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facility can handle thirty orders per minute and is nine times their current capacity. This new
facility features the most advanced warehouse management system available. I am anticipating a
much faster turn-around for receiving our orders.
Their new 150,000 Acre land acquisition borders U.S. Interstate I15 that goes to Jackson Hole,
Wyoming. This land has the capacity to hold facilities 70 times what Melaleuca’s current
property has. Next to the new Distribution facility, Melaleuca is building their new
manufacturing facility that is 250,000 square feet. They have informed us that they will also be
building their new Headquarters following the manufacturing facility.
Melaleuca Inc. is the world’s leader in natural products. No one comes close to Melaleuca in
effectiveness and scope. Effectiveness means how well do the products work. In scope, I mean
the number of products that cover a wide variety of issues. (Melaleuca is not “just a nutrition
company”, they manufacture and distribute a wide variety of health and wellness products that
are safer, more cost effective and better than their competition.)
Melaleuca Inc. was the first and only company to combine Omega 3 fatty acids and Phytosterols
to lower cholesterol
They were the first and only to patent a grape seed and grape skin extract with enzymes to reduce
the oxidation of LDL cholesterol and prevent blood platelet activity. ProVex CV
They were first and only to introduce a broad spectrum competively priced fiber supplement.
FiberWise
They were first and only to commercialize a patented fat burning activity bar, Access.
They were the First and only company to patent an all natural joint supplement, Replenex.
No other company in the world has the number of unique patented and tested products that
Melaleuca has in the Vitality for life categories.
A fresh new way to talk about Vitality for Life…is innovative nutrition
Better Science
Better Formulas = Innovation
Better Effectiveness
Melaleuca has proven themselves in the market place for over 21 years. They know where they
are going or they wouldn’t have invested as heavily as they have in their new infrastructure..
Melaleuca employees approximately 2,500 people in the United States and has not out-sourced
their manufacturing. Keep in mind that they are an International company and they do have
facilities in some of their foreign companies. Support our American workers and American
company while we still have them. Melaleuca is “your store” because they treat you like it is
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your store. They allow you to profit share from their revenues. What other company will allow
you to revenue share without buying stock?
Michael McCullough, DC
Frank L. VanderSloot
Entrepreneur of the Year 2001
WHAT IS THE ENTREPRENEUR OF THE YEAR AWARD?
The Entrepreneur of the Year Award was created in 1986 by Ernst & Young, one of the nation’s
largest accounting firms. Since then it has grown to an international competition in 22 countries,
honoring the most successful and innovative leaders of the business world. Past award recipients
were the founders of Amazon.com, Best Buy, Southwest Airlines, eBay, Enterprise Rent-a-Car,
and more. This year, the award was co-sponsored by CNN, USA Today, NASDAQ and the
Kauffman Center for Entrepreneurial Leadership.
An independent judging panel made up of business leaders, former award winners, and academic
experts selected this year’s winners. Each honored business leader is also inducted as a member
of the Entrepreneur of the Year Institute.
A NEW WAY OF DOING BUSINESS
Over the years, Frank VanderSloot has proven time and again that he has the ability to lead
businesses forward. Prior to Melaleuca, Inc., Mr. VanderSloot held key management positions
with two Fortune 500 companies; Regional Vice President for Automatic Data Processing and
Vice President for Cox Communications. In 1985 he decided to move his family to Idaho Falls
to take on the CEO position of Melaleuca, Inc.
Melaleuca was founded with seven employees in a small backroom office. Each of the eight
original products were based on Melaleuca oil, which Mr. VanderSloot had researched and found
to be exceptional in many ways. The only obstacle was finding a way to market these home,
personal and health-care products, without spending millions on advertising. That’s when he
developed a unique Consumer Direct Marketing plan that cut out the middleman and shipped
products directly to the end consumer.
The nature of Consumer Direct Marketing made it possible for families to build a home-based
business and earn an income by referring customers to Melaleuca’s catalog. These customers
not only save money by shopping from home, instead of running around town and standing in
long shopping lines, but also save through Melaleuca’s reasonably priced products which do not
need to be marked up to cover marketing and distribution costs. In addition, seven families earn
a consistent commission from each purchase made by the customers they have referred, for the
life of the customer. The success and ingenuity of the product line and marketing plan were key
factors in Frank VanderSloot’s selection as Entrepreneur of the Year.
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ONWARD AND UPWARD
Melaleuca’s unique marketing plan has brought over 350 products to families across North
America. Even while competing against giants such as Proctor & Gamble and Johnson &
Johnson, Melaleuca has grown rapidly. The company was ranked by Inc. Magazine five years in
a row as one of the country’s fastest growing businesses. Sales have reached over $700 million
per year with sales. And Melaleuca has expanded internationally, now operating in Japan,
Taiwan, Hong Kong, Singapore, Korea, Australia, United Kingdom, Holland, New Zealand and
soon to be opening in mainland China.
Mr. VanderSloot has plans to help the company move up and over the billion-dollar mark in
annual sales. Yet the focus of the company is still on bringing families exceptional, reasonably
priced products. The research and development staff continues to develop new products to
promote better health, enhance daily life and reduce impact on the environment. No matter what
initiatives the company takes on, the air is to always support the mission statement of
“Enhancing the Lives of Those We Touch by Helping People Reach their Goals.”
COMMITTED TO BRINGING YOU THE BEST
While accepting the award, Mr. VanderSloot stated he felt very honored. “There are several
great, high-caliber companies who are finalists here tonight. To be chosen from among them is
truly an honor I did not expect. This award is a tribute to Melaleuca’s great employees, and
especially to the tens of thousands of Marketing Executives who have bought into our mission
and joined us in our endeavor of enhancing lives. I thank them for their belief and their effort in
making Melaleuca the company it is today.”
Melaleuca is just as committed today as it was 21 years ago to bring exceptional products to
families around the world. With this dedication to helping you find healthy alternatives –
whether through unique nutritional products, natural and environmentally friendly ingredients, or
the ability to work from home and build economic freedom – Melaleuca will continue to provide
innovative solutions for your daily life.
HIGHLIGHTS FROM 16 YEARS OF ENTREPRENEURSHIP
1991 – Blue Chip Enterprise award given to Melaleuca by the U.S. Chamber of Commerce for
offering positive alternatives in challenging economic times. One of only 200 awards.
1990-1994 – Listed in Inc. Magazine as one of the country’s fastest growing companies. Later
placed in the Inc. Magazine Hall of Fame
1997 – Service to community award presented by the Greater Idaho Falls Chamber of
Commerce.
1998 – Frank L. VanderSloot named Idaho Business Leader of the Year by Idaho State
University.
1998 – Distinguished Community Service Award given by Boy Scouts of America.
2001 – Entrepreneur of the Year!
รข— Frank L. VanderSloot currently serves on the Board of Directors for the U.S. Chamber of
Commerce and on the board of the Direct Selling Association.
2001 Melaleuca Inc. rated as the 6th largest privately held corporation in the State of Idaho.
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SUBJECT:SANDPOINT MAGAZINE ARTICLE
Frank L. VanderSloot
President & CEO of Melaleuca, Inc.
At the helm of Idaho’s sixth-largest, privately held company, Frank L. VanderSloot, 57, has had a
tremendous journey since his childhood in Cocolalla, Idaho. The 1966 Sandpoint High School grad
makes his home in Idaho Falls, Idaho, where his international manufacturing company is headquartered.
He oversees thousands of Melaleuca employees and marketing executives. His company generates
more than $700 million in annual revenue through a sales force that reaches over 650,000 households
across North America, Taiwan, Japan, Australia, Hong Kong, New Zealand and the United Kingdom.
Melaleuca’s catalog contains more than 300 consumable products that are non-toxic; many contain
Melaleuca oil, also known as tea tree oil. Frank VanderSloot, the third in a family of four children, still has
ties to the area.; his older sister, Luana, lives nearby as does his younger sister, Marguerite. His father,
Frank, died in 1982. Married to Belinda since 1995, Frank has six children that when combined with his
wife’s eight children creates a blended family of 14.
Mr.VanderSloot earned an associate’s degree in business at Ricks College in Rexburg, Idaho, followed
by a bachelor’s degree in business administration from Brigham Young University. He held key
management positions with two Fortune 500 companies prior to starting Melaleuca in September 1985.
Under VanderSloot’s leadership, Melaleuca has been ranked high on the Inc. Magazine list of the nation’s
500 fastest-growing, private companies and is one of only 55 companies in America to be listed as a
member of the Inc. 500 Hall of Fame. Most recently, Melaleuca was awarded the 2003 Environmental
Excellence Award by the Idaho Association of Commerce and Industry. In June 2001, VanderSloot was
named Ernst & Young, CNN and USA Today’s “Entrepreneur of the Year” for the U.S. Northwestern
region. VanderSloot serves as a member of the Board of Directors of the U.S. Chamber of Commerce
and was recently named regional vice-chairman for the organization.
In addition to managing Melaleuca, Frank and Belinda own several large cattle ranches. VanderSloot’s
favorite activities involve his family and Idaho’s great outdoors.
How has developing Melaleuca over the past 18 years affected you personally?
Wow, it has surely given me an opportunity for personal growth ... to meet a lot of people, to work side by
side with some key people and form lifelong relationships. ... Your business becomes a big part of your
life. It’s certainly blessed my family financially, and it’s allowed me to visit many different countries in
almost all corners of the earth. I think I have an understanding of the people of the world much better than
if I hadn’t had this experience. It’s also given me a lot of opportunity to meet people in government.
I know that working so hard affected your first marriage. On a personal level, how did you bounce
back and put your family where they need to be in your life?
There are so many pieces to our lives that we have to keep in balance, and sometimes when we’re so
anxious to make one part of it work, you can forget about another part. That did happen to me, although I
always thought that family was important and should be held most important, right up there with your faith
in God. But you can focus on something else, and I feel like I lost focus on my family. I didn’t know I was.
I learned later that I was. I went through divorce, and I think that was my fault. I committed to not ever
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having that happen to me again. I’m married now, and between Belinda and me, we have nine daughters
and five sons. ... (Divorce) was a painful experience. No one should have to go through that. It takes a lot
of effort to take care of your family, and it certainly takes a lot of effort to take care of 14 kids! (laughs) My
sense is that I’m doing a better job; at least my kids and my wife tell me I am.
You recently brought your management team to Cocolalla for a corporate retreat. What was the
purpose and what effect did it have?
I feel like my childhood growing up there in Cocolalla on that farm really had a tremendous impact on my
life, as all of our childhoods do. ... Recently, I was up there to accept an award, and I took Josh Tolman,
my assistant, with me. While we were up there, we went to visit my mom and, of course, the place where I
grew up. Since I had told so many stories about that place, Josh came back and told the management
team: “We’ve got to go. You just all have to see Cocolalla, Idaho.” So they all agreed that’s what they
wanted to do. Then they talked me into taking a camera crew along because they wanted me to tell these
stories I’ve told on camera. I didn’t really end up telling too many stories on camera. We just walked
through the woods and went through the old place, the barn and the house. All of it’s still there, the old
farm equipment I used to run – that old Farmall H tractor. So it was a great bonding exper ience. I think
(that retreat) gave the management team an understanding of our heritage. I believe that Cocolalla,
Idaho, is our heritage from the standpoint that it shaped a lot of my beliefs.
How did your upbringing on that ranch help shape you into the businessman you are today?
I think it taught me work ethics. I think farming is a really good foundation for teaching that you reap what
you sow, teaching the entire concept of the law of the harvest. ... You have to take care of things and you
have to be patient. Some things aren’t in your hands, but if you’re diligent with your labors, i
