Which Company Should I Join, Amway Or Melaleuca?
Both Amway and Melaleuca are companies that offer people a chance to work independently and control both their working schedule and income. But which company should you join, Amway or Melaleuca?
Working at home is a big deal and a hugely very attractive opportunity. Not only do you get flexibility and your own private working schedule but you also get to work the way you want with no boss to pressurize or criticize you.
This opportunity has not only been exploited by people in search of a better job and a better life but also by many of the major direct sales companies.
Advances in technology, the introduction of smart devices and the movement towards the mobile office make it easier both to get and offer jobs at home and two of the major players in the work from home space who have benefitted the most are Amway and Melaleuca.
Both Amway and Melaleuca are companies that offer people a chance to work independently and control both their working schedule and income. Both companies have one main requirement from their reps; the ability to sell their products to other people.
Let’s have look at both companies to see if we can work out what makes them different so that you can decide between them
Amway is a company with quite a reputation since it was formed in 1959; it has over 50 years of experience and presence in the international market. Since it’s early beginnings, it has continuously increased its sales volumes becoming the number 1 direct sales company today
Amway offers everything, from baby care products, personal care, cleaning products, coffee, tea, cosmetics, audio and video, shoes, clothes, accessories – you name it, they probably have it.
The startup kit for a new member costs $62. The kit contains a guide on how to own your business, a brochure with product details, resources to get you started in sales, and information about their bonus program.
The commission for each rep is 25% for every product they sell. So, sell $10,000 of product and you make $2,438.
One of the main concerns about Amway is the need to buy wholesale before you can distribute the products meaning that there is a $250 minimum buy in before you can start selling
There have been some complaints about the cost of some of the Amway product range and it is probably fair to say that they are not the cheapest which may make it more difficult to sell the product if you are competing against other retailers
That been said, the idea behind Amway has always been the service provided by the reps and the personal touch that they provide. People have always bought people first and products second so the cost of the products themselves should not be a major issue
A much more worrying figure when considering Amway, especially if you are thinking of joining their sales force, is their huge attrition rate – the stats suggest that 9 out of 10 people will eventually quit Amway.
As well as the attrition rate, the other concern about Amway is how much of the company culture is actually about selling rather than the idea of selling.
It has also been suggested that nowadays Amway resembles more of a cult than an actual sales company and that whilst good money can be made by selling books and tapes and by hosting seminars and conferences, these are mostly the reserve of the leaders and that there is very little actual selling and money to be made amongst the lowly reps.
The company was founded in 1985, having about 30 years of experience, it is another company that has learned how to be successful over time, acquiring considerable earnings and increasing business numbers regularly, passing $1 billion in annual sales in 2011
Melaleuca also offers a broad range of products, starting with personal and baby care, pet products, coffee, tea, diverse beverages, candles, cosmetics, fragrances, health products and many more. The startup kit to join the business costs only $29. It contains the membership and referral kit.
For every product a representative will sell, he or she will receive a 20% commission. This means that if a Melaleuca rep sells 10,000 products, the revenue would be $1.971.
One advantage Melaleuca has, in comparison with Amway, is their product prices. They have much more competitive prices, being almost the same as any other product you might find on the shelves of a supermarket which makes them more affordable and, presumably easier to sell.
Melaleuca also create many more original products than Amway and there is much more of an emphasis on ‘green’ and environmentally friendly ingredients
It has been suggested that Melaleuca has only 7% attrition rate. However in a 1999 court case the company owned up to a rate of 60% per year. Either way, this is much lower than the drop out rate at Amway
Having said all these, let us make a short recap of pros and cons:
- Well-known reputation;
- Extended experience in the market;
- Expensive products;
- Difficulty in selling the products;
- Large monthly quota;
- High Attrition rate
- Small commissions unless you are have a huge team
- Low startup costs;
- Affordable products;
- Small monthly quota
- Melaleuca cons:
- They don’t spend in advertising, so it would be a bit of a challenge to get people to know the products;
So, it is rather obvious what would be the best choice. Melaleuca has a small investment and will not take your money on training. And even if you have to spend those $60 on products, you can use them to buy what your family needs, in the same way, you would do regular shopping if you think you won’t have to whom to sell them.
For these reasons, the risk of losing money is not that significant. Also, the Melaleuca products are very high-quality since they choose to put their money in research and development rather than marketing and advertising.
I hope this helps you in your decision? If you have had experience, good or bad with either company then let me know by sending in a comment