SIMPLE STEPS TO BUILDING YOUR MELALEUCA BUSINESS

Transcription

1 SIMPLE STEPS TO BUILDING YOUR MELALEUCA BUSINESS

2 GETTING STARTED IS SIMPLE SO WHERE DO YOU BEGIN? Your enroller, the person who introduced you to Melaleuca, will arrange a Strategy Session with you to answer questions and help you every step along the way. At Melaleuca, you re never alone! Your enroller and support team are here to help you succeed. SIMPLE STEPS TO GETTING STARTED Read the Your Preferred Customer Benefits booklet located in your Business Kit. Set up your online shopping account. When you enrolled as a Melaleuca customer, you were sent an to the address you provided. This message contains instructions on how to easily set up your online account and password. Your Community of Support You are surrounded by people who want you to succeed! Purchase a Home Conversion or Value Pack. Now that you ve found the best products on the planet, don t wait any longer to convert your whole home to better, safer, higher-quality products! To help you make this conversion, Melaleuca offers you the opportunity to purchase either a Home Conversion Pack or a Value Pack at a steeply discounted price, saving you over 50 percent off the market price. Your enroller and support team Live training events to connect you with others Identify your why. A strong business starts with a solid sense of purpose, so take some time to identify your why. What is your goal with your Melaleuca business? What will achieving that goal do for you and your family? Will it bring financial freedom? Will it give you an opportunity to live life on your own terms? Or will it improve your children s future? Write down your goal and your why, share them with your enroller or mentor, and remind yourself of them frequently as you build your business. Online training and tools Personalized business coaching as you grow Business Development team to answer any questions: (Malaysia) (Singapore) Start your contact list. Write down 100 names without prejudging how interested the individuals may be to get your contact list started. Identify 10 people you think could benefit from Melaleuca s life-changing wellness products. Determine your business hours. Write down the days and times you will devote to your Melaleuca business. How many hours are you willing to invest each week? It may be 5 hours, it may be 20 hours; all that matters is that you commit to it. There are three things people need to have in order to win at this business: they need to be coachable, they need to have a strong why, and they need to enjoy helping people and buy into our Mission Statement. CORPORATE DIRECTOR 9 ED BESTOSO 2 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 3

3 THE LASTING POWER OF TRUE RESIDUAL INCOME WHAT IS RESIDUAL INCOME? Residual income is reliable money that comes in month after month, year after year. With Melaleuca all you do is give a one-time presentation to a new customer, and from that point forward you earn a check every single time that customer shops with Melaleuca. Once you have introduced a customer to Melaleuca and help them set up their account, Melaleuca goes to work for you. Melaleuca provides world-class products, catalogs, and an online shopping website; takes your customers orders; and collects sales tax, all at no cost to you. Your residual income continues as that customer shops month after month. There are several key reasons Melaleuca has reliable residual income: Monthly Shopping Instead of selling one-time-purchase items like jewelry or appliances, Melaleuca sells consumable wellness products, like bars, shakes, and personal care products, that customers use and replace every month. As a result, your income from their ongoing purchases is residual and occurs every month. Customers Love Our Products It takes unique products to create ongoing residual income. The Access Bar and Vitality Pack powered by Oligo are just a few examples of products developed by Melaleuca and our scientific partnersproducts our customers love. Reasonable Prices Your customers find value at Melaleuca. That brings them back month after month-even in a tough economy. Whether they shop for Affinia Shampoo or MelaPower Laundry Detergent, they can simply switch stores and find tremendous value every time they shop. Preferred Customer Program In exchange for a commitment to shop monthly at Melaleuca, Preferred Customers get a big discount on Melaleuca products, opportunity to be a Lifetime VIP Member and much more! This customer loyalty program rewards ongoing purchases and creates a true residual income for Marketing Executives Products to Choose From If a customer bought only 35 Product Points a month, it would take them over three years to buy every single product in Melaleuca s product line. That s because consumers have a large variety of products over 350 to choose from at Melaleuca. They can shop this month for products they may not have purchased last month. As a result, your customers come back to Melaleuca and shop again and again. High Reorder Rate It s well documented that at least 95 percent of customers who shop with Melaleuca this month will shop again next month. That means as you build your Melaleuca business, your customers will shop month after month. This exceptionally high reorder rate results in true residual income. Loyalty Shopping Dollars High Reorder Rate Exceptional Business Model Preferred Customer Program Consumable Products Residual Income Wheel Hundreds of Products to Choose From Unique Business Model Melaleuca is the world s only Consumer Direct Marketing sm company, and Melaleuca.com is one of the top 100 e-commerce sites in the world. Consumer Direct Marketing sm was designed to create and reward customer loyalty. You simply introduce customers to Melaleuca and help them set up their accounts, and they shop directly from Melaleuca. com or with the Melaleuca catalog. You don t have to worry about giving repeat sales presentations. And since anybody can build a successful Melaleuca business, your organization can be full of everyday average customers who refer a customer from time to time. Those referrals continually fuel your residual income. Reasonable Prices Unique Products People Want I still run into customers I introduced to Melaleuca four years ago, and they tell me how much they love Melaleuca products. They re still my loyal customers today. Having customers who shop for products they can afford every month means we receive residual income. NATIONAL DIRECTOR 9 BROOKE PAULIN 4 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 5

4 THE SMARTEST WAY TO GET STARTED YOUR STATUS AND EARNING POTENTIAL GROW AS YOUR BUSINESS GROWS Ordering a Home Conversion or Value Pack is the easiest and most affordable way to switch your home to products that are healthier for you and your family. Available exclusively to new customers in their first two months, Home Conversion and Value Packs feature dozens of Melaleuca s most popular products at additional savings off the already discounted Preferred Customer prices. These packs will help you jump-start your Melaleuca business by giving you firsthand product knowledge, but that s not all. They also unlock extra earning potential for you as a business builder. Marketing Executives who purchase Home Conversion or Value Packs also qualify for the Pacesetter Program, which will double your advancement bonuses. See pages of this booklet. INCREDIBLE SAVINGS Home Conversion Pack: S$ Preferred price if purchased individually: S$ SAVE 31% off Preferred price INCREDIBLE SAVINGS Regular price if purchased individually:s$ SAVE 53% off Regular price Home Conversion Pack: RM1, Preferred price if purchased individually: RM1, SAVE 32% off Preferred price Regular price if purchased individually: RM2, SAVE 53% off Regular price Marketing Executive statuses serve as milestones or goals of your Melaleuca business. Advancing to a new status will be a satisfying source of pride and accomplishment, in addition to bringing significant financial rewards. Each time you advance, or achieve a new status, you qualify for an Advancement Bonus. For the Director and Senior Director statuses you can double those bonuses by achieving new statuses within a certain schedule. This is called the Pacesetter Program. There are 46 statuses for you to earn. You receive an Advancement Bonus each time you advance. Each new status has its own set of requirements all of which increase sequentially with the status. Initially, advancing to a new status is simply a matter of personally enrolling new Preferred Customers. WHAT S IN A STATUS? DIRECTOR Wondering how to reach a certain status? Here s a A Director has: 8 personally enrolled customers THE HOME CONVERSION PACK IS THE ULTIMATE VALUE. IT CONTAINS MORE THAN 35 MELALEUCA ITEMS AT A SAVINGS OF MORE THAN 50 PERCENT OFF RETAIL! quick look at the major milestones and some of the requirements to achieve each one. DIRECTOR 3 A Director 3 has: 11 personally enrolled customers 1 personally enrolled Director SENIOR DIRECTOR A Senior Director has: 20 personally enrolled customers 5 personally enrolled Directors 6 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 7

5 REAL FAMILIES EARNING REAL RESIDUAL INCOME After you achieve Director with eight personally enrolled 90 days 6 months Preferred Customers, subsequent status advancements also include additional requirements, such as: Active personally enrolled leadership (Directors, Senior Directors, and Executive Directors you ve personally enrolled) Director 3 in 90 days Peony enrolled with Melaleuca in 2013 to get safer, healthier products for her family. The positive product experiences prompted her to start recommending the products to her friends and family. In her second month, Peony enrolled 12 customers and double advanced to Director 2 Director 6 in 6 months Organization volume (the amount of products purchased in your seven-generation organization in one month) Leadership Points (points earned for doing presentations earning an income of RM3, One of her Category 1 customers decided to build the business because of the positive experiences from using Melaleuca s products. We and enrolling new customers) Personal Enrollee Group Volume (the total organization Product Point volume of your personal enrollees in any given month) Each advancement to a new status is cause for celebration, and every time you advance, Melaleuca will celebrate your accomplishment with you and your team. For a complete listing of statuses and requirements, please consult Melaleuca s Compensation Plan booklet, A New Day! Peony Sin & Calvin Chew Enrolled: Oct 16, 2013 Achieved Director 3: Dec 2013 December 2013 check: RM3, December 2013 monthly residual income: RM teamed up and as a result, she enrolled twelve customers and advanced to Director, says Peony. In her third month, she advanced to Director 3. I was thrilled with the income I earned in the first 90 days because all I did was refer customers and help them shop every month, says Peony. Today, Peony and Calvin are Senior Directors 8 and have earned RM558, with Melaleuca. Joanne Khoo Enrolled: Sept 2, 2013 Achieved Director 6: Oct 2013 October 2013 check: RM17, October 2013 monthly residual income: RM2, Joanne had been running an advertising company for more than 10 years when her sister introduced her to Melaleuca in In EXECUTIVE DIRECTOR A Executive Director has: 20 personally enrolled customers 10 personally enrolled Directors NATIONAL DIRECTOR A National Director has: 20 personally enrolled customers 10 personally enrolled Directors 4 personally enrolled Senior Directors CORPORATE DIRECTOR A Corporate Director has: 20 personally enrolled customers 10 personally enrolled Directors 5 personally enrolled Executive Directors Director 3 in 90 days Annie Tham Wen Nie Enrolled: Mar 16, 2016 Achieved Director 3: May 2016 May 2016 check: S$ 2, May 2016 monthly residual income: S$ When Annie Tham enrolled with Melaleuca in 2016, she was looking for a Plan B, to get better financial opportunity. She enrolled over 20 customers, and achieved D3 within 90 days. Although I am building the Melaleuca business part time, I believe that as long as I continue to work hard, I can fulfill my dreams here. I believe that everyone can enhance their lives through Melaleuca wonderful products and great business opportunity. She said. As she looks forward, her goal is to help other people get total wellness, and to get residual income. She says: I am able to do this. It s the ability to work wherever you want, when you want, and to help more people. I love doing that! Annie is now a Director 6 and has earned S$36, with Melaleuca. her first month, she enrolled 16 customers. I wanted to help working moms who want work life balance like I do, Joanne says. She teamed up with five customers and helped them reach Director. Her business took off rapidly as she advanced to Director 5 and earned RM18, In her second month, she reached 20/20, developed 7 new Directors in her team and triple advanced to Director 8. A month after that, she reached Senior Director earning RM60, in the first 90 days of building the business. I m now able to have real residual income; something that was impossible in my previous businesses, she says. Today, Joanne is an Executive Director. She has earned RM1,062, with Melaleuca. 8 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 9

6 1 year 2 years 3 years Senior Director in 1 year Sam Hoi & Shevin Foon Enrolled: July 1, 2016 Achieved Senior Director: June 2017 June 2017 check: RM14, June 2017 monthly residual income: RM4, Sam s WHY was to build a better future for his family, and his immediate goal of building the business was so his wife, Shevin, was able to leave her job to be a stay-at-home mother. I was a one-man show in my web design company, and we were never able to fulfill this dream of ours, Sam shares. He enrolled in July 2016, and following his enrollers Executive Directors 3 Janice Hoh and Ian Tomy Chee s coaching and structure, he worked with his wife, Shevin to enroll 58 customers and develop 6 personal Directors in one year. They advanced to Senior Director in June 2017, earning RM14, that month. When they advanced to Senior Director 2 in August 2017 and earned RM32, that month alone, they celebrated the achievement with Shevin finally leaving her job and being a stay-at-home mother. This was our dream and we had no idea how to achieve it until we built the Melaleuca business, shares Sam. Sam and Shevin are Senior Directors 3 and have earned RM234, with Melaleuca. Senior Director 5 in 2 years Lawrence Khoo Teng Eng Enrolled: Feb 2, 2012 Achieved Senior Director 5: Dec 2013 December 2013 check: RM13, December 2013 monthly residual income: RM6, Lawrence enrolled with Melaleuca in February 2012 to build a lifelong business that provides residual income. In his first month, he enrolled 11 customers and achieved Director 3. In his second month, he achieved Director 5 and earned a total of RM18, in the first 90 days. With steel-like determination and hard work, he advanced to Senior Director in his sixth month earning RM16, that month. Since then, life has never been the same for him. More than anything, Melaleuca has helped me spend more meaningful time with my daughters, says Lawrence. He added, Our products are exceptional and our business opportunity is more relevant now than it has ever been. A positive mindset, strong belief and being consistent with the right activities will help anyone build a successful Melaleuca business. Lawrence is now a Executive Director 4 and has earned RM1,546, with Melaleuca. Executive Director in 3 years Linux Woo Enrolled: June 14, 2014 Achieved Executive Director: June 2017 September 2012 check: RM118, September 2012 monthly residual income: RM12, For Linux and Suey, building the Melaleuca business was the glue that brought the family together. Prior to Melaleuca, Suey was a teacher in Seremban, while Linux was an air conditioner technician working in Singapore. With limited savings and limited family time, he knew he needed a new plan. In 2014, he was introduced to Melaleuca. Linux and Suey decided to build the Melaleuca business, knowing that it presents the opportunity to achieve time and financial freedom. When they advanced to Senior Director 5 in 2016, with a monthly income higher than their combined salary, they were able to resign from their full-time employment. In Oct 2017, the couple advanced to Executive Director. Their lives have taken a 180 degree turn from when they first started. Melaleuca reunited me with my family, enabled us to buy a new home and has given us an opportunity to live life to our fullest, Linux shares proudly. Linux and Suey are Executive Directors 3 and have earned RM1,024,324 with Melaleuca. Prior to Melaleuca, long days and late nights were part and parcel of Kenneth Ng s daily life when he used to own and run a construction and interior design business. However, the daily stress and busy work schedule took a toll on him and his time with family. Kenneth s solution to his conundrum came a-knocking when he discovered Melaleuca through Executive Director 2 Linux Woo. Linux introduced Kenneth to Melaleuca s range of amazing products and its unique Consumer Direct Marketing model. The residual income triggered Kenneth and Jane to build the business, and throwing their weight in, their business gain momentum and the couple advanced to Senior Director in 7 months. Building the business full-time has been a win-win situation for them as the couple now get to spend quality time with their children, are working towards financial freedom and on top of it all, are in a meaningful business where they get to help enhance others lives. Today, Kenneth and Jane are Executive Directors 4 and have earned S$425, with Melaleuca. Senior Director in 1 year Kenneth Ng and Jane Ng Enrolled: JUNE 23, 2015 Achieved Senior Director: Jan 2016 Dec 2006 check: S$13, Dec 2006 monthly residual income: S$2, NOTE: Results vary. For typical results, please consult the Annual Income Statistics on page 38. Executive Director in 3 years Lynne Lee & William Cheng Enrolled: Jul 4, 2006 Achieved Senior Director 5: Nov 2007 November 2007 check: S$25, November 2007 monthly residual income: S$4, For nearly 30 years, I owned a business specializing in renovations and construction. As a result of a stressful lifestyle, I developed multiple health problems, says Lynne. A friend introduced Melaleuca to her. The benefits of the products were self-evident as Lynne was able to regain her health quickly. This transformation led to her interest in building the Melaleuca business. In her first month, she enrolled 10 customers and achieved Director. Following that, she reached 20/20 within 90 days. From there, her business gained momentum and grew rapidly throughout the year. This eventually led to her Executive Director advancement in November My success was only possible because I focused on the mission statement of helping people reach their goals. Everyone needs Melaleuca and I want to tell more people how they too can achieve physical and financial wellness like I did, says Lynne. Lynne & William are now Executive Directors 9 and have earned S$2,002, with Melaleuca. 10 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 11

7 ENJOY LUCRATIVE ONE-TIME ADVANCEMENT BONUSES EACH TIME YOU ADVANCE. PACESETTER PROGRAM Build faster and double your advancement bonuses! Imagine how this could change your life! Your month of enrollment: (e.g. May) PACESETTER PROGRAM STATUS ADVANCEMENT BONUS STATUS PACESETTER ADVANCEMENT BONUS MONTHS AFTER ENROLLING ADVANCE BY:* Director S$150/RM300 Director S$300 /RM600 2 (Month of enrollment +2) Director 2 S$300/RM600 Director 2 S$600/RM1,200 3 (Month of enrollment +3) Director 3 S$450/RM900 Director 3 S$900/ RM1,800 4 Director 4 S$600/RM1,200 OR Director 4 S$1,200/ RM2,400 5 Director 5 S$750/RM1,500 Director 5 S$1,500/ RM3,000 6 Director 6 S$900/RM2,000 Director 6 S$1,800/ RM4,000 7 Director 7 S$1,050/RM2,500 Director 7 S$2,100/ RM5,000 8 Director 8 S$1,300/RM3,000 Director 8 S$2,600 / RM6,000 9 Director 9 S$1,600/RM4,000 Director 9 S$3,200 / RM8, Senior Director S$3,600/ RM8,000 Senior Director S$7,200 / RM16, Based on Melaleuca Compensation Plan and 2013 Annual Income Statistics. S$10,700 /RM24,000 One-Time Advancement Bonus Total S$21,400 / RM48,000 Pacesetter Advancement Bonus Total *Write in the months after the month of your enrollment. Please refer to Melaleuca s A NEW DAY! Compensation Plan for further details on earning commissions and bonuses. when you advance on Pacesetter time frame, 2X you earn DOUBLE the advancement bonus! 12 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 13

8 PACESETTER PROGRAM: DIRECTOR 3 IN 90 DAYS I Commit to Achieve Director 3 in 90 days Name: Date: What income on a monthly basis would make a difference in your life? RM/$ What are your options to earn that monthly income? (2nd or 3rd job, spouse gets job, conventional business, franchise?) 1. Make the decision to achieve Director 3 in 90 days. 2. Enroll with a Value or Home Conversion Pack. 3. Review the materials in your Business Kit. 4. Start your contact list. 5. Team up with your enroller or mentor, and be coachable. 6. Schedule action and set appointments. If you re planning to build a substantial Melaleuca organization that will provide thousands of dollars a month in residual income, Director 3 is your launching point, and achieving it will help you learn the fundamentals for building your business. The reason you should start by purchasing a Value or Home Conversion Pack is twofold: the pack will introduce you to a large selection of Melaleuca s products and help you better share them with others, and it will qualify you to earn Pacesetter Bonuses, which are double the standard Advancement Bonuses. A Value or Home Conversion Pack will be crucial to your success. Come to your Strategy Session prepared to ask your mentor or enroller any questions and to map out your Director 3 in 90 days plan. Write down your contact list, discuss how to set appointments, and then schedule as least two Overview presentations for the next two weeks. For your first month, aim to enroll ten Melaleuca Preferred Customers. For month two, enroll five more Preferred Customers and develop one personal Director. For month three, repeat month two enroll five Preferred Customers and develop one Director. Why is the income important? Retirement, car, get out of debt, help with your kid s education? What difference will it make? What does your future look like without that income? What is Director 3 in 90 days worth to you? 1. Create a story to tell for rest of your Melaleuca career 2. Your income will be approximately S$4,300/RM9,000 in 90 days! 3. You ll be invited to a complementary Leadership Celebration Here is the plan of action: 1. Make the decision and resolve to see it through 2. Enroll immediately with a Value or Home Conversion Pack 3. Read the information in your kit and write down any questions 4. Complete your contact list and use the form in the kit 5. Ask your questions during the Strategy Session 6. SCHEDULE ACTION! Schedule appointments immediately below Take action immediately! In order to get 10 enrollments this month, I will: Schedule two in-homes immediately with enroller on (date) and (date) Schedule two 2-on-1 Overviews with enroller on (date) and (date) Schedule two webinars with my long-distance contacts on (date) and (date) Schedule to attend next Leadership Celebration on (date) Fill in the blanks with enrollments: TEAM UP Ask your mentor or enroller any questions you have about building a Melaleuca business, then work together to determine your Director 3 in 90 days plan. Start your contact list. Work with your mentor to determine who your potential business partners are and who you ll invite to your first Overview presentation. Month 1: 1. cat cat cat cat cat cat cat cat cat cat circle one: Month 2: circle one: Month 3: circle one: 11. cat cat cat cat cat cat cat cat cat cat Building a Melaleuca business is a simple and proven process. It is simply repeating the same proven process over and over again. One great advantage is the power of teamwork and matched effort. When you set a goal to reach Director 3, you are setting a mutual commitment to build your business! Take this seriously and you will enjoy the results! Discuss tips and information for effectively setting appointments and set a few appointments before you wrap up your Strategy Session. Enrollee Commitment Signature: Enroller or Mentor Commitment Signature: Date: Date: Be coachable! For more information on advancing to Director 3 in 90 days, visit the Download & Print Center at Business Center > Reports & Tools and download Director 3 in 90 Days form. 14 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 15

9 THE SEVEN CRITICAL BUSINESS-BUILDING ACTIVITIES THE SEVEN CRITICAL BUSINESS-BUILDING ACTIVITIES As you read this booklet, you ll be introduced to Seven Critical Business-Building Activities for succeeding with your Melaleuca business. If you want to achieve your goals with Melaleuca, you need to focus on and repeatedly do these seven activities day after day and week after week. I want you to notice something about the Seven Critical Activities, the first four in particular. You cannot do Critical Activity 3, Make Presentations, before you do Critical Activity 2 or Critical Activity 1. That s not how it works. These activities are in the order because that s the order you ll need to do them in. Before you can hold a Strategy Session, you need to have an Overview presentation and enroll a customer. And before you can do that, you ll need to invite someone you know to your presentation. There s a reason the first Critical Activity is not Set Appointments. Before you invite someone to your presentation, you should already have a relationship. The first thing to do is add their name to your contact list and begin establishing a relationship. When the time is right, you can invite them to attend an Overview presentation and make a decision about Melaleuca. We are a warm market company. The right way to build your business is with people who know you, like you, and trust you. So before you approach someone to set an appointment, take the time to build a genuine relationship with them. As you help them reach their goals, you ll find that those personal relationships can be just as rewarding if not more so as your income from your Melaleuca business. Frank L. VanderSloot CEO, MELALEUCA, INC. 1 There is no secret to how the Senior and Executive Directors got where they are. They understand [the] Seven Critical Activities and they work at them consistently. There is a magic way to build a large, successful Melaleuca business! It s called hard work! Doing the simple things! Every day! KEEP BUILDING YOUR CONTACT LIST Take a look at any successful Melaleuca business and you ll always find one thing: a strong and vibrant contact list. Whether you re a seasoned Executive Director or a brand-new Marketing Executive, you have to pay regular attention to your contact list and you have to help others in your organization do the same. As the lifeblood of your business, your contact list needs to be constantly nourished (by adding at least one new name every day). Don t prejudge anyone by thinking they would never be interested in learning about Melaleuca. Many times the people you think would be least interested are very excited to hear about better, safer products for their families and an opportunity to earn additional income. Be thorough; write down the names of everyone you know. Think of the names of people you invited to your wedding, those on your Facebook friends list, or those you follow on Twitter or Instagram. You never know where you ll be when you remember an old friend from school or make a new acquaintance at the market, and failing to write down a name in the moment may mean a golden opportunity lost forever. So keep your contact list with you wherever you go to ensure that nobody is forgotten. 2 SET APPOINTMENTS If you find yourself feeling nervous before you approach someone to set an appointment, don t worry; you re not alone. Corporate Director 3 Mark Atha says that before he makes appointment-setting calls, he does a quick exercise to get into the right mindset. This might sound silly to you, he says. But before I make a call, I remind myself that this person is already some other company s customer, so I m really not imposing on them or asking them to buy something they don t currently buy elsewhere. In other words, they really need Melaleuca products and, in many cases, a Melaleuca business as well. In fact, they ll be healthier with our products and better off financially should they build a business. Then I tell myself that if I don t talk to them first, someone else will. If you re approaching a member of the younger generation who s less comfortable with a phone conversation, you might send a text message or a direct message through social media. But ideally, you want to approach someone by phone call. Your purpose is simply to set an appointment nothing more and nothing less. Keep your call quick and casual: Hey, can I have 45 minutes of your time so I can show you what I m doing? Do you have time tomorrow at lunch or would Thursday night be better? When you make an invitation, you ve just stimulated their curiosity, but you don t want to get stuck trying to explain everything about Melaleuca over the phone. So instead, immediately shift the focus over to when they can meet: I don t have time to talk about it right now, but I ll tell you all about it when we get together. What time will work for you? To respond that way, you might make your appointmentsetting call when you truly don t have a lot of time 5 minutes before you walk out your door to go somewhere or just before you walk into another appointment. Becoming a pro at setting appointments takes practice, but you don t have to practice alone. You can get the tips and coaching you need by teaming up with your enroller and your support team. Putting Others at Ease If you re feeling nervous as you re calling a friend, Executive Director 8 Rachelle Ferguson suggests saying so at the beginning of your approach: I m pretty nervous to call you because you re the first person I m calling for my new business. As Rachelle says, If you lower your walls, they ll lower theirs. If you can hear or see that your contact is feeling uncomfortable, or if they seem disinclined to set an appointment with you, find a respectful way to put them at ease. Here s another suggestion from Corporate Director 3 Mark Atha: It almost doesn t matter what their concern is. You can just respond, I understand why you d feel that way, but I tell you what: it s no big deal to me. Why don t we sit down for a few minutes, I ll show you how it works, and if you still feel that way, then don t do it fair enough? I d like to show you anyway because I m excited about it, and, who knows, you might think of someone you know who would be perfect for me to talk to. Mark s response it s no big deal defuses the tension and releases the pressure. As Mark says, Your posture is telling them, It s okay for you to tell me no after you see the Overview presentation but how can you say no before? You don t even know what you re saying no to. 16 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 17

10 THE SEVEN CRITICAL BUSINESS-BUILDING ACTIVITIES Sample Approaches I m a Marketing Executive here in the Denver area for The Wellness company and we specialize in helping people get out of debt by substantially increasing their monthly income with five to ten hours of effort a week. I love what I do. I d love to tell you about it sometime. NATIONAL DIRECTOR 9 BROOKE PAULIN I ve partnered with an international wellness company, and I m not sure if you d open to hearing about it, but I think it would be a great complement to what you re already doing. Would you be open to hearing some information about it? EXECUTIVE DIRECTOR 8 COREY KELLER You mentioned that you re keen to explore new opportunities. My wife & I have 2 businesses and are constantly looking for open-minded people like you to share business ideas that totally make sense. I d love to show you what we are doing. EXECUTIVE DIRECTOR 3 IAN TOMY CHEE Health-focused Approaches I don t know if you know, but I ve partnered with a company that specializes in helping people get the chemical irritants out of their homes. I think our company could really help your whole family. Would you be open to sitting down with me and having me share the benefits of our products? What might be a good time to connect for about an hour? I can come to your house or you can come on over to mine. CORPORATE DIRECTOR 4 MICHELLE SMITH Hi Mary, the other day you mentioned that your son suffers from eczema. I work for an eco-friendly manufacturer that specializes in helping people with eczema. We also have an entire range of products that have helped many families live healthier lives. I d love to share the benefits of the products with you. Let s meet up tomorrow night or Saturday afternoon. Which one works better for you? EXECUTIVE DIRECTOR JOANNE KHOO General Approaches I hear that you are looking for an additional income stream. I have a business that my wife and I started a few years ago that pays us as well as my professional job does. Would you be open to hearing an overview about it to see how it can benefit you? EXECUTIVE DIRECTOR 6 CAPTAIN CHANDRA MOHAN Have you heard of Melaleuca.com? No? It s a fabulous online shopping club that offers exclusive wellness products shipped to your door at huge savings. I ve been a member for years and wouldn t live without it! Only members can refer members, so why don t we grab a coffee and I ll show it to you. EXECUTIVE DIRECTOR 4 SANDI SULLIVAN 3 SHARE MELALEUCA: AN OVERVIEW Successful Melaleuca business builders use Melaleuca: An Overview every time they do a presentation because it s simple and can be easily duplicated. If you use only a portion of the Overview or your own version of it, your team will not be able to duplicate it. Therefore, do what you would like your new Marketing Executives to do. This is an important and powerful principle. The most successful Melaleuca organizations always give the same Melaleuca: An Overview presentation the same way every time. Why? Because they know others will follow their examples. What Melaleuca: An Overview does is instill believe they can do it, and because they believe they can, they can. There are a lot of people who love what they see and leave the room saying, Well, I can do that. CORPORATE DIRECTOR 3 JOHN DUFNER Start by Teaming Up When you first begin building your Melaleuca business, giving Overview will be somewhat unfamiliar experience. That s perfectly all right. Your enroller and members of your support team will be there to help and to give Overview for you until you re ready. We strongly recommend that you begin by watching them give Overview to your customers. Once you see them do it a few times, you ll become more comfortable with the process and can take over as the presenter usually about the time you advance to Director 3. Know Your Audience As you begin your Overviews, try to learn as much as you can about your audience. Ask questions about the following topics: What do they do for a living? Do they like their current job? Are they satisfied with their income? Have they ever tried a home-based business before? Are they married? Do they have children? What do they do for fun? Would $500 per month help them in a significant way? Does more time with their family mean anything to them? Are they concerned about their finances? Use the answers you get from these questions to show each new customer how a Melaleuca business can help them get what they really want in life. Confirm Attendance The day before the Melaleuca: An Overview presentation, call those you have invited to confirm the time and location. You re actually confirming their attendance, so call to confirm, not question attendance. This way, they will not be likely to change their minds. Share the Complete Melaleuca: An Overview Presentation Melaleuca: An Overview presentation: Regardless of whether you anticipate that your customer will become a business builder, share the business portion of the 18 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 19

11 THE SEVEN CRITICAL BUSINESS-BUILDING ACTIVITIES CLOSE AND COMMITMENT At the end of the Melaleuca: An Overview presentation your potential customer will be wondering what to do next this is where you ask them what type of customer they would like to be. Gain Commitment by Asking the Customer to Choose a Category As you come to the close of the Melaleuca: An Overview presentation, introduce and explain the three categories of participation and ask your attendees which category they fit into: Preferred Customer, supplemental income, or significant income. Melaleuca: An Overview in every presentation. Often, the only reason some individuals don t build a Melaleuca business is because they don t know the opportunity exists. Just as the business is important to share, every other element of the Melaleuca: An Overview presentation serves a purpose for your prospective customers. When and Where to Meet for an Overview You would typically meet at your home, the customer s home, or some neutral location like a coffee shop, park, or other quiet place that will allow you to talk. SHOP & SAVE REFERRAL MARKETING Preferred Customer + Supplemental Income Significant Income Shop and save: 30% 40% discount 5 10 hours/week S$200 S$1,000/ RM500 RM2,500/month 20+ hours/week > S$2,000 RM5,000/month When you help your prospective customer choose a participation category, you ll know better how to help them reach their goals. Prepare the Overview Setting Your preparation can make the greatest difference. The idea behind your room setup should be to eliminate distractions. Turn off the television and place the refreshments in a separate room. Try to have guests sit on hardback chairs instead of couches so they ll avoid getting drowsy during your Overview. Orient your room toward the presenter the same way most people s living rooms are oriented toward the television; face chairs toward the front. Take Your Best Self to Your Overview You don t have to be a great presenter. Share your experience; that will have the most impact on the quality of your Overview. Attendees will find you and Melaleuca credible if you bring confidence and a downto-earth feeling to the Overview. Complete the Agreement Forms Filling out forms can seem overwhelming to your new customers. That s why it s very important that you help them through it. Be sure to complete each section and double-check spelling for accuracy. For help on completing the Customer Membership Agreement (blue form) and the Independent Marketing Executive Agreement (green form), visit The Enrollment Center and click on Start Enrollment. Backup Order Explain that the Backup Order helps to secure their Preferred Customer Membership Benefits, qualifies them for a 30% 50% discount and preserves all other benefits of membership. Melaleuca allows them to personalize their Backup Order with their favorite products. 20 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 21

12 THE SEVEN CRITICAL BUSINESS-BUILDING ACTIVITIES Hand Out Tools Give your new customers a take-home package (the Business Kit) to review. Have them read the Your Preferred Customer Benefits and Building Your Melaleuca Business booklets, and begin their contact lists. HELP THE CUSTOMER START SHOPPING Going through the Melaleuca catalog or product price list, help your new customer pick out the first products they would like to try. Call Melaleuca at (Malaysia) (Singapore) or go to malaysia.melaleuca.com (Malaysia) sg.melaleuca.com (Singapore) to help them start shopping right away. You can show them how easy it is and speed up the process of their shopping experience. Another best practice at Melaleuca is to have a Value or Home Conversion Pack on hand at the time of enrollment so your new customer can take advantage of the additional 30+% savings. Other Key Melaleuca Presentation Tips 1. Start on Time and Set a Professional Tone 2. Introduce Hosts If Needed If you have team members present, introduce them. I m excited to introduce my good friend and business partner 3. Share your experience Share your Melaleuca experience and touch on your goals with Melaleuca. Just tell the story don t exaggerate. Talk to everyone as if you are good friends with them. 4. Schedule a Strategy Session Set an appointment for your Strategy Session within 48 hours, regardless of whether your customer is interested in building a business or just wants to enjoy the products. Ask your customer(s) to review the materials in the Business Kit and to make a list of questions to discuss at your Strategy Session. Make sure you have your schedule so you can set dates and times. Give Category 2 and 3 customers their Getting Started Checklist to complete before the day of your Strategy Session. Categories 2 & 3: Pacesetter Category 2s and 3s are valuable to your business because they help you increase the number of Category 1 customers in you organization more rapidly. So you develop 2s and 3s in order to have more 1s. If your new enrollee tells you they d like to earn an income and be a Category 2 or 3 business partner, your goal is to help them start off right by qualifying for the Pacesetter program with a Value or Home Conversion Pack. If a Category 2 or 3 purchases a pack and pursues Pacesetter, you should identify a mentor to team up with them and help them reach their goals. 4 STRATEGY SESSION During the Melaleuca: An Overview presentation, you discussed how some people choose to be Preferred Customers while others choose to take advantage of our unique business opportunity in addition to purchasing our products. You need to determine which Category your new enrollee belongs in, as this will determine your next step. YOUR GAME PLAN The decisions your new enrollee makes will determine your next steps. At the end of your Overview, be sure to schedule a Strategy Session if at all possible, for within 48 hours. During the Strategy Session, if they chose Category 1, Preferred Customer, you ll want to: Help them place their first order and answer any questions they may have. After two weeks, follow up with them. What questions do they have? Which product is their favorite so far? If they tell you they want to earn supplemental or significant income and are willing to commit to working five or more hours each week, they belong in Category 2 or Category 3: So, during the Strategy Session, you ll want to share the importance of getting started with either a Home Conversion or Value Pack. If they re unwilling to purchase a pack, that s an indication that they really belong in Category 1. This information will help you get them off to the best start. As they discover why our products are so much better than the competition, they will be happy, satisfied customers for life! When a Category 2 or 3 enrollee agrees to purchase one of the packs and commits to working five or more hours each week, that s a clear indication that they are willing to put forth the effort to build a Melaleuca business. To get these folks off to the right start, follow these simple steps for your Strategy Session: 1. Help Them Identify Their Why Help your new enrollee re-connect with why they are building a Melaleuca business. As with any new endeavor, when they remain focused on the end outcome, they can step outside their comfort zone and see past temporary challenges. Perhaps they want to get out of debt, be home with their children, prepare for retirement or improve their quality of life. You may ask them What amount of monthly income would allow you to reach this goal? That way, they are clear about their end goal. 2. Power of Pacesetter Commit them to the Pacesetter program. Pacesetter is a set time frame with incentives and deadlines for performance. A goal without a deadline is only a wish. Help them see that if they stay on Pacesetter schedule, they can earn double the one-time advancement bonuses. If they haven t purchased a Value or Home Conversion Pack, this is the perfect time to commit them to do so. One of the best activities guaranteed to bring results is holding a Strategy Session within 48 hours. This activity is proven to create quality enrollments and sustained growth. Businesses that consistently hold Strategy Sessions have higher average commissions, higher average growth rates, lower attrition, more Home Conversion and Value Pack purchases, and more duplication through advancement. 22 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 23

13 THE THE SEVEN CRITICAL BUSINESS-BUILDING ACTIVITIES 3. Identify the Contacts to Approach First Review their contact list and identify the key people with whom they will team up. This is the time for you to set clear expectations for the first step in their Melaleuca business. One clear expectation is to personally refer 20 customers in their first few months. Another is to identify two of those customers to team up with and build a business. Remember-the expectations set will be the expectations met. As you review the contact list, ask them Who are the people on this list who are most likely to team up with you and build a business? Who needs a plan B or a little extra income? Who is hard-working? These are the type of questions that help them evaluate key members of their team who may want to build a business. Once you have identified 2-3 people, discuss how you might team up to approach and do a presentation as soon as possible. If they have others working alongside them, they are more apt to be successful. In any worthy goal, teaming up is a key to success. If your new enrollee personally refers 20 customers and helps two others to get to Director by doing the same, your enrollee will likely be a Director 3 in the first 90 days. That s the right way to get started! 4. Schedule Action Calendar your presentations and schedule action. The next step is to create your calendar for the first few weeks. Identify the days and times when you will team up to give the Overview. Some will be group presentations, some will be one-on-ones and perhaps a few via webcast. Regardless, when they are on the calendar, when they approach their friends, they can say, On Thursday, I m having a presentation at 1 pm, that would be a perfect time to get together. If your presentations are on the calendar, they re more likely to get to work quickly inviting people to attend. 5. Set Appointments IT S ALL ABOUT TIMING When should you schedule the Strategy Session? As soon as you can. The longest you should wait is 48 hours after the presentation, especially when your new enrollee told you they re excited about Melaleuca and want to build a business. A timely Strategy Session is the perfect way to take advantage of that excitement and convert it into action. Practice approaches and set appointments. Some people have never set an appointment. They need coaching. They need you to demonstrate how to set an appointment. Remember, E.D.P.E. E stands for explain, D for demonstrate, P for practice and E for Evaluate. Be sure to use all four tools when helping others to make appointments. Imagine how encouraged your new enrollee will be if they leave the Strategy Session with 3-4 appointments scheduled. They will have confidence they can build the business and will look forward to the scheduled presentations. Without presentations scheduled, they may not follow through once other pressing priorities in life arise. 6. Commit to Scheduled Times and Ways to Communicate Establish clear times to communicate and report back. You will likely be talking on the phone several times a day as you begin. In the strategy session, you can talk about the best times and manner to touch base. 5 CELEBRATE SUCCESS Celebrating success is a way to inspire people to set goals and achieve more than they ever thought possible. The mission of Melaleuca is to help people reach their goals. To inspire and motivate people to that end, you must celebrate their accomplishments. Melaleuca thrives on celebration! From the smallest of achievements to the largest ones, from enrolling one customer to achieving Corporate Director, leaders need to feel good about what they re doing. When that happens, motivation increases, excitement grows, and abilities expand. Make Your Celebration Effective How you celebrate should be wholly determined by who it is you re celebrating. It takes only a few minutes to figure out what people like, what parts of the business they may struggle with, and where they need encouragement. Once you ve done that, celebrate with them in a serious manner. Tell them what they did that was successful. Be specific. Tell others about the hard work you ve witnessed. Let them know that you noticed their efforts. Your words and encouragement will likely mean more than any reward you can come up with. Attach a suitable reward on top of that and you ll create a moment in that person s life they will treasure for a long time. Leadership Celebration Meetings The Leadership Celebration is an opportunity to celebrate local leaders achievements and the achievements of your team. It s a time to schedule action to move your business forward and help you reach your goals. And it s a chance to receive training from some of Melaleuca s best. 24 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 25

14 THE SEVEN CRITICAL BUSINESS-BUILDING ACTIVITIES 6 ALWAYS BE INVOLVED WITH FAST TRACK A Melaleuca Fast Track is a results-driven program designed to help your organization grow. A series of meetings lasting four weeks, Fast Track helps participants set goals, create action plans, implement those plans, report results, and celebrate success. Team leaders provide motivation, support, and training, and facilitators organize the schedule and recognition awards. Fast Track helps you stay focused week after week. If you ask our leaders about the secret to their success, many will tell you that the answer is Fast Track not only for themselves but for their entire organization. No one works harder than these leaders. FRANK L. VANDERSLOOT, MELALEUCA CEO FIVE ESSENTIAL ACTIVITIES MAKE UP THE CORE OF EVERY FAST TRACK EVENT Recognition Is a Proven Motivator We all love to be recognized for our accomplishments. Whether it s a pat on the back, a high five, or a note saying, Job well done, all forms of recognition create positive reinforcement. Often, when someone else notices what we ve done, we re more likely to keep striving and pushing harder than ever. Rewards whether material or emotional breed hope and belief, and make hard work worthwhile. Sharing Success Builds Team Loyalty As a business builder, your goal is to build a cohesive team. A big part of that process is celebrating your team s success. Through the celebrations, you experience a strengthening of relationships, you feed off one another s energy, and you create a synergy that helps each of you work more effectively together than you would alone. 1. Assess the business and set goals. Fast Track participants determine where they would like to be by the end of the Fast Track period. Specific goals include number of enrollments, status achieved, number of Home Conversion and Value Packs sold, number of appointments set, and in-home presentations. 2. Create an action plan. Each participant with the help of the team leader creates a detailed action plan for how they are going to achieve their goals. Using a calendar, they determine what days and times they are going to set appointments, hold Melaleuca: An Overview presentations, report to their team leaders, and more. 3. Implement the plan. After the Fast Track meeting, the participants follow through on their action plan, tallying their results and reporting to their team leader on schedule. 4. Report and celebrate success. Each week, team leaders report results for their teams. Most often, the results involve enrolling customers and developing new Directors. Those activities that meet the criteria for success are recognized. 5. Train and develop leaders. Take minutes of each Fast Track meeting to conduct training on the Seven Critical Business-Building Activities. When conducting your training, remember to briefly explain, demonstrate, practice, and evaluate. 26 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 27

15 THE SEVEN CRITICAL BUSINESS-BUILDING ACTIVITIES The Basics of a Successful Fast Track TIME: The Fast Track is designed to run during the calendar month and should be scheduled on the same day, at the same time each week (always start on time). Consistency is vital to success. 7 LEAD BY EXAMPLE Melaleuca business leaders lead by example because they know their actions are usually duplicated by those in their organizations. Are they professional, product-centered, and positive? If so, others will duplicate their actions. Are they disorganized, demanding, and late to meetings? If so, others will observe and duplicate those actions as well. As a Melaleuca leader, you should set the example by attending Convention and all other Melaleuca meetings. Not only do they offer you inspiration, ideas, and the training you need to grow your Melaleuca business, they also give you the opportunity to develop a reputation as a supportive, involved Melaleuca leader whom others will want to emulate. Your first two months as a Melaleuca Marketing Executive are critical. You get only one chance to create the beginning of your story make it as great as you can! Later, when you re referring new customers and trying to encourage them to build quickly, they ll want to know how you did it. You ll be telling your getting started story over and over again, so it s important to set your sights on reaching Director in your first month, and Director 3 in 90 days. Refer to pages of this booklet. WHO: Include committed Marketing Executives who work closely with one another in their businesses (e.g. your personally enrolled customers). LEADERS: As a general guideline, team leaders should be Directors 3 or above, as they need to have experience at personally enrolling customers and developing Directors. These leaders should also be organized, accountable, and willing to put in extra energy and effort to keep the team focused on goals. TEAMS: Teams usually consist of 8 10 members. There is no limit to the number of teams, as long as you can manage the group size. How Do You Convert Your Own Home? It s Simple. PRODUCT EXPERIENCES: You should start every meeting with a product experience. Dispose of all the products you currently use. GOALS: Goals should be set the first week and revised or added to each of the following weeks. Replace those products with Melaleuca products, and tell people you only use safe and effective products in your home now. ACTION PLANS: After participants set goals, they should put an action plan into place to help reach those goals. CELEBRATION: Personal accountability and reporting happen on a weekly basis. The facilitator establishes a recognition system and rewards everyone s accomplishments. Celebration of success is a key part of each weekly meeting. PARTICIPATION: Once the last week is concluded, participants should be encouraged to attend the next Fast Track. FEES: You may need to charge a fee for participation. This money helps provide recognition prizes and offsets any other related costs. These fees should not exceed S$30/RM50 per business. Convert Your Home to Melaleuca Products and Services What would you think if the CEO of Ford Motor Company drove a Toyota? Wouldn t you have a difficult time purchasing the product he represents? After joining Melaleuca, immediately convert your home to Melaleuca products and services. Learn everything you can about them, and get in the habit of consistently sharing product and service information with others. The people in your organization will follow your example and convert their own homes, spreading a powerful belief in the products and the services, and building a strong business foundation. According to actor Will Rogers, People s minds are changed through observation and not through argument. As you go forward in all your Melaleuca activities, remember that your team members are watching you. Set a good example! 28 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 29

16 APPENDIX DRAWING THE LINE BETWEEN MELALEUCA AND MLM Typical Multilevel Marketing Companies MLMs often require or encourage business builders to invest in substantial amounts of inventory each month to qualify for bonuses. 1 With Melaleuca there is no investment. Melaleuca s customers purchase only what they will use up on a monthly basis. MLMs often sell products no one really uses like cases of magical fruit juice, magnets, or green algae causing increased strains on family budgets. 2 Melaleuca markets products already used in households on a daily basis except that Melaleuca s products are higher quality, more effective, and often safer to use than grocery store or drugstore brands. This means it doesn t cost anything more to be a Melaleuca customer than it does to shop at a grocery store. MLMs often back up phenomenal product claims with folklore and testimonials rather than science and laboratory studies. 3 Melaleuca s products and product claims are backed by science, with scientific studies comparing Melaleuca s brands with its competitors. MLMs often require their distributors to resell products to their customers. 4 Melaleuca does not require any of its products to be resold to someone else. In fact, policy prohibits reselling. Everyone purchases directly from the company. Be Goal-Oriented The best leaders are achievers who have a clear idea of what they want out of life, and they take the most efficient route to go after it. That means setting clear goals and developing a step-by-step action plan to achieve those goals. Write down your goals even the smallest of them and continue to revisit and revise them every month, every week, and every day as needed. You ll be much more likely to stay on track as your business grows and you lead others by example. MLMs usually charge several times what the product is actually worth, such as S$60/RM150 for a bottle of juice that you would pay less than S$8/RM20 for at the store. MLM distributors usually tout big checks to entice others to get involved. Rarely will an MLM reveal what its distributors actually make. Most MLMs will also never reveal their actual income sales. MLMs almost always tout a ground floor opportunity, implying major advantages if you hurry and get in on the ground floor Melaleuca offers exceptional products at reasonable prices. That means that Melaleuca s products are competitively priced with grocery store brands on a per-use basis, even though they are usually substantially higher quality than those brands. Each year, Melaleuca publishes how much all Marketing Executives make at which status, complete with the high, the low, and the average in each status. We ve been doing it for years! Such a policy would easily expose most MLMs! Rather than deteriorating over time, a viable business opportunity gets better every year. As products improve through more scientific discoveries each year, it gets easier and easier to outdistance the competition. 30 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 31

17 MLMs often operate a volume line that a distributor can use to call the company before midnight on the last day of the month to determine how close the distributor is to reaching a particular volume qualification. This incentivizes a distributor to make an even greater investment in inventory. The attrition rate of customers and distributors is extremely high in most MLMs. 8 9 With Melaleuca there is no investment. Melaleuca s customers purchase only what they will use up on a monthly basis. Since customers purchase directly from the factory, Marketing Executives need to purchase absolutely no inventory. Therefore, this creates absolutely no risk of financial loss for Marketing Executives. The retention rate of Melaleuca customers is extremely high. Ninety-five percent of all customers who ordered last month will order again next month. Frequently Asked Questions Melaleuca s Business Development Department has compiled answers to the questions most frequently asked by customers. Talk to your enroller or call Business Development at (Malaysia) (Singapore) for answers to other questions you may have. Building Your Organization How do I place new Personal Customers in my organization? You are allowed to manage five customers or Marketing Executives on your first generation. You can place customers in those positions or in the organizations of customers in your organization. We do not advise you how to structure your organization; we recommend discussing all business-building strategies with your Enroller and support team. Who is my Marketing Executive? The first person in your support team. Your Marketing Executive and your Enroller are your primary resources in building your business. Whom do I put down as Enroller on the Customer Membership Agreement? The Enroller must be the person who introduced the new Customer to Melaleuca and helped him/her become a Customer or who played an active role in the presentation of Melaleuca products or business opportunity to the new Customer. Many MLM s often suggest that people fake it till they make it by appearing to be wealthy by driving fancy cars; purchasing expensive homes; buying motor homes, boats, and motorcycles; and by wearing fur coats, diamond rings, and expensive jewelry. This activity has driven thousands of multilevel marketing distributors into bankruptcy, destroyed lives, and even broken homes all while giving a distorted impression of the company s actual success. Most MLMs do not have product return policies unless the distributor cancels their distributorship. Only then will a typical MLM honor the Direct Selling Association s code of ethics, which require such companies to purchase back 90% of a distributor s resalable products. MELALEUCA: TEAMING UP LIKE NO OTHER COMPANY Nobody succeeds alone. That s why in addition to your support team Melaleuca provides you with a dedicated Business Development team to answer all your specific questions. But we don t stop there. As you lead your organization, especially in the beginning, you ll need personal guidance and professional development. So to help you advance your business, we have a highly trained group of leadership coaches who are excited about getting to know and serve you. They ll partner with you to set goals, create a business strategy, increase your confidence, and truly enhance your life and the lives of others Melaleuca advocates that Marketing Executives keep their full time job, become the best employee that they can be for their current employer, and use their Melaleuca income to add to their full-time income. Melaleuca counsels Marketing Executives to not consider leaving their full-time job until they are making several times their salary with the Melaleuca business. Melaleuca also advocates for them to stay out of debt, pay off their homes and cars, and live within their means. Melaleuca gives an absolute, no-questions-asked, 100% customer satisfaction guarantee. Melaleuca will give your money back even if you have used up all of the product and decided you didn t like it after you used it. Grocery stores don t offer such a guarantee and MLMs certainly don t offer such a guarantee. BUSINESS DEVELOPMENT TEAM YOUR SUPPORT TEAM YOU COACHING & LEADER DEVELOPMENT TEAM Whenever you have a specific business related question whether its a question on paperwork you submitted or understanding how to read your Business Report, we re here when you need us! Reach us at (Malaysia) Monday to Saturday, 10 a.m. to 7 p.m (Singapore) Monday to Saturday, 10 a.m. to 7 p.m. Enrolling Preferred Customer How do I enroll a new customer? Fill out the Customer Membership Agreement completely, including correct numbers, shipping and mailing addresses, and phone numbers. Include account information and the required signatures, then mail the completed paperwork to Melaleuca. You can also enroll customers online at (Singapore) (Malaysia) What is the best way to confirm that my customer s paperwork has been received? Fax the completed paperwork to (Malaysia) or (Singapore). Is it possible for someone else to be set up on my credit card or GIRO (Singapore only) as a Preferred Customer? No. Each customer or Marketing Executive must have an account of which he or she is the owner and is authorized to withdraw funds. Using your own GIRO (Singapore only), or credit card to enroll someone may be cause for termination. If I do not have a credit card or GIRO (Singapore only), can I enroll as a Preferred Customer? No. Either a credit card or GIRO (Singapore only) is necessary. I want my new customers to receive the Preferred Customer discount. Can they shop if their paperwork has not yet been received by Melaleuca? They can place an order with a credit card or a checking account before their paperwork is received. We give all customers the Preferred Customer price on their first order. May I have an interest in more than one Melaleuca business? No. You may only have ownership or ownership affiliation in one Independent Melaleuca Business. Changes in Your Business How do I change the Preferred Customer information on my agreement form? With a simple call to Business Development at (Malaysia) or (Singapore). Some items do require the submission of a new Customer Membership Agreement form. A Business Development Specialist can give you greater detail at the time of your call. Can I move a new personal enrollee? Yes. An Enroller can move a personal enrollee to a different position within the month of enrollment by going online to (Singapore) / melaleuca.com (Malaysia) and clicking on the New Enrollee Change (NEC) tool. This online tool will allow Enrollers to move a customer during the customer's month of enrollment. An Enroller can also move a personal enrollee within his/her business organization up to two months following the month of enrollment but the New Enrollee Change (NEC) Tool is available only for movements within the month of enrollment. After the month of enrollment, customers can only be moved one time. Each business or customer below the customer or Marketing Executive being moved will follow the enrollee. The requested move is limited to 20 customers. There is a S$15 / RM20.00 fee for each customer or Marketing Executive moved in the organization. 32 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 33

18 May I move someone within my organization? Melaleuca discourages organization changes. Melaleuca will review organization change requests with written consent of all seven support team members above the customer or Marketing Executive who would like to be moved. An Organization Change Form with original signatures is required. Both the person being moved and the Enroller need to sign the form. There is a fee of S$70/RM100 for the original move and S$20/RM20.00 or RM40.00 for any related moves. An Organization Change Form must be completed for each person being moved. To have changes done for S$70/RM100, all related forms must arrive together. We suggest you work closely with your enroller and/or support team when undertaking this type of request for change. (Statement of Policies, #19, Transfer from Original Organization. ) What happens to the structure of my organization if a customer is not active? A customer is inactive if she did not purchase a minimum of 29 Product Points. If a customer goes inactive for two consecutive months, she automatically loses her position in the organization. Refer to the Statement of Policy #39 Roll-Up Policy for further clarification. A Marketing Executive in my organization has not personally produced the required Product Points for the past two months. Is there any way to keep him from losing his marketing organization? Two months without producing their Product Point minimum means automatic loss of their marketing organization. What will happen to a customer who was inactive for two consecutive months and places an order for 35 Product Points in the third month? Because he purchased in the third month, he will reactivate back into the original organization in the first available position under his original Enroller. Someone in my organization discontinued his Preferred Customer Membership. Can he still purchase products? He can still purchase directly from the company as a Direct Customer and have his products delivered to him. Direct Customers pay the regular price instead of the 30% to 40% discounted Preferred Customer price. Direct Customers will not maintain an organizational spot in your marketing organization unless they produce the minimum Product Point requirement. Is my Melaleuca business inheritable? Yes, you can will your business (see Policy #17). These transfers must be approved by Melaleuca. Monthly Business Reports For what time period are commission and bonus payments paid? Commissions and bonuses are calculated on product sales from the first through the last day of the calendar month. Who receives a Monthly Business Report? All Marketing Executives who have at least one active customer and have earned a commission and bonus payments will receive a Monthly Business Report Summary and access to a complete online report that details the activity within their organization. This is an extremely valuable document for building and reviewing business activity. When do I receive my Monthly Business Report? One Page Business Reports are mailed on the 15th of each month (if the 15th falls on a weekend or holiday, the One Page Business Report will be mailed on the following business day). A Marketing Executive can access their Web Account and download their Monthly Business Report on a monthly basis. If the One Page Business Report is not received after ten business days, call Business Development at (Malaysia) or (Singapore). Will I receive a Monthly Business Report every month? If you do not earn a commission in a given month, you will not receive a report. Statement of Policies Capitalized terms used in the Statement of Policies have the meanings set forth in the Definition of Terms. 1. Becoming a Customer To become a Customer, a person must: (a) have an Enroller who has submitted an Independent Marketing Executive Agreement; (b) sign and submit a Customer Membership Agreement, marking either the Direct Customer or Preferred Customer box; and (c) pay a membership fee for the cost of enrollment, product information, and other literature that Customers receive throughout the year. Preferred Customers receive a number of additional benefits and may purchase products directly from Melaleuca at 30% to 40% below the Regular Price. In return for this added discount, Preferred Customers agree to purchase Melaleuca products totaling at least 35 Product Points each month. Customers are not authorized to promote Melaleuca products unless they have also signed and submitted an Independent Marketing Executive Agreement. 2. Becoming a Marketing Executive To become a Marketing Executive, a person must first (a) have an Enroller who has submitted an Independent Marketing Executive Agreement; (b) sign and submit an Independent Marketing Executive Agreement; and (c) purchase a Business Kit. Once those steps are completed the applicant is authorized to promote Melaleuca products and to enroll Customers and Marketing Executives. However, an applicant does not become a Marketing Executive, until: (i) Melaleuca receives the applicant s Independent Marketing Executive Agreement; (ii) the applicant has a Customer or Marketing Executive in his/her Marketing Organization; and (iii) the applicant receives his/ her first commission check. Marketing Executives may purchase products directly from Melaleuca at the Direct Customer price. Marketing Executives may also choose to be Preferred Customers, in which case they may purchase products directly from Melaleuca at the Preferred Customer price. 3. Individuals, Corporations, Tax Exempt Entities and Trusts Melaleuca will only consider for acceptance as Marketing Executives individuals or entities that fall into one of the following categories: (a) Individuals who are of the legal age. (b) Married couples of which at least one is of legal age. (c) Corporations in good standing in the state, province, or country of their incorporation which have as their sole shareholder(s), director(s) and officer(s) either one unmarried individual or a married couple. (d) Tax exempt entities which are registered and approved as tax exempt institutions under the Income Tax Act of the Republic of Singapore / Malaysia. (e) Trusts established in accordance with Melaleuca guidelines. (f) Charitable giving corporations established in accordance with Melaleuca guidelines. 4. Customer Numbers Customers and Marketing Executives may not use or submit to Melaleuca any government issued identification number other than the actual number assigned to the Customer or Marketing Executive by the proper government authority. 5. Proper Completion of Documents All agreements must be completely and properly filled out and signed; together with a photocopy of the Singapore/Malaysia National Registration Identity Card, or Singapore/Malaysia Permanent Resident Identity Card or any legal documents verified by Melaleuca to confirm residential status. No copies or alterations will be accepted. If any agreement is altered in any way the agreement will not be deemed accepted by Melaleuca except in its original unaltered form, regardless of passage of time or payment of commissions by Melaleuca. Melaleuca will not be responsible for loss of commissions or bonuses or for delays in Customer or Marketing Executive registrations or orders due to: (a) errors by Customers or Marketing Executives in preparing or sending agreements, orders or other documents; (b) delays or errors caused by the mail or fax transmission; (c) nonreceipt of documents by Melaleuca; (d) illegible or incomplete information on agreements, orders or other documents; or (e) the inability of Customers or Marketing Executives to reach Melaleuca by telephone or fax during busy calling periods. Melaleuca will process and credit orders and enrollments in the calendar month in which they are received by Melaleuca. 6. Ordering Melaleuca encourages Customers to order early in the month. All orders are credited to the calendar month in which they are received by Melaleuca. For purposes of product orders, the calendar month ends on the last day of the month and begins on the first day of the month. Orders may be placed by telephone, mail, fax or the Internet. All telephone or fax orders must be paid by Visa, MasterCard, DebitCard and Interbank Giro (Singapore only). Orders by mail may be paid by Visa, MasterCard, DebitCard and Interbank Giro (Singapore only). When paying with a credit card, the card number and expiration date must be included. Orders for products will usually be processed by Melaleuca within 48 hours of receipt. Shipment will be by common carrier and delivery should be expected within three (3) to five (5) working days (for Singapore) and three (3) to seven (7) working days (for Malaysia). Orders placed during the last week of the month may be delayed due to the large volume of orders received at the end of the month. 7. Customer Satisfaction Guarantee If for any reason any Customer is not completely satisfied with any product purchased by such Customer from Melaleuca, the Customer may return the unused portion of the product together with a copy of the purchase receipt to Melaleuca within 60 days of the date of purchase and Melaleuca will (1) credit the Customer s account for the total purchase price of the product (less shipping and handling charges), or (2) upon the Customer s written request, replace the product without charge, or (3) upon the Customer s written request, refund the total purchase price of the product (less shipping and handling charges). Refunds, when requested, will be issued to the original method of payment used to purchase the product unless that method of payment is unavailable in which case a refund check will be issued to the Customer. Unless the Customer requests otherwise, Melaleuca will credit the Customer s Melaleuca account for the purchase price of the returned product. Credit on account is available for Melaleuca product purchases. If a Customer has unredeemed credit on account, Melaleuca may make efforts to locate the Customer and advise him/her in writing of the credit. Melaleuca may continue to make such attempts on a monthly basis and will charge the Customer s account a S$14 / RM25 service fee for each month s notification process for as long as the Customer has a credit on account, unless otherwise restricted or prohibited by law. Refund checks that remain uncashed for more than 180 days will not be honored and the amount of the check, less a processing fee of S$14 / RM25 and a bank cancellation/stop payment fee of S$14 / RM25, will be credited to the Customer s account, which credit on account shall be subject to the above notification process and associated service fees and applicable law. Melaleuca reserves the right to cancel the Customer Agreement of any Customer who abuses the Melaleuca satisfaction guarantee by excessively returning product. 8. Returns and Product Point Adjustments; Home Conversion/Value Pack Returns Individual products that are purchased as part of a Home Conversion, Value, or other special pack that is priced below the Preferred Customer price, can be returned for an exchange but not for a refund unless the entire pack is returned. Home Conversion and Value Pack commissions 34 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 35

19 will be deducted from the Marketing Executive s check in the month the Home Conversion or Value Pack is returned by the Customer. Marketing Executives receive commissions based on actual sales by Melaleuca of product to End Consumers. When product is returned to Melaleuca, the commissions attributable to that product will be deducted from the commission checks of the Customer s Support Team in the month that the return occurs. If the return occurs within 6 months of the purchase date, then commissions will be deducted from the commission checks of the Support Team of the Marketing Organization that existed at the time of the purchase. Otherwise, commissions will be deducted from the commission checks of the Support Team of the current Marketing Organization. Melaleuca reserves the right to terminate the Independent Marketing Executive Agreement or cancel the Customer Membership Agreement of any Marketing Executive or Customer who abuses the Melaleuca Satisfaction Guarantee and return policy by excessively returning products. 9. Business Kit Refund When a Marketing Executive applicant enrolls and purchases a Business Kit, the Business Kit number will be registered at Melaleuca in the applicant s name. If a Marketing Executive applicant cancels his/her Independent Marketing Executive Agreement and returns his/ her purchased Business Kit to Melaleuca within 60 days after the Marketing Executive applicant s date of enrollment, Melaleuca will give such Marketing Executive applicant a full refund for the cost of the Business Kit. A refund will only be sent to the Marketing Executive applicant in whose name the Business Kit number is registered. This policy will apply whether the Marketing Executive applicant purchases the Business Kit directly from Melaleuca or from his/her Enroller. A Marketing Executive who purchases Business Kit for resale to Marketing Executive applicants may return unsold kits to Melaleuca for a refund only if the Marketing Executive cancels his/her Independent Marketing Executive Agreement and returns the Business Kit within 60 days after their date of purchase. Marketing Executives who purchase Business Kit for resale may assign such kits for up to one year from their date of purchase from Melaleuca. Melaleuca encourages Marketing Executives to keep such Business Kit updated until they are assigned. A Business Kit may only be assigned once. Melaleuca updates and revises Business Kit from time to time. Marketing Executives are encouraged to keep their Business Kit current by purchasing update packets or new Business Kit as they become available. Outdated or old Business Kit may not be exchanged for current Business Kit. 10. Election to Cancel Agreements A Marketing Executive may suspend/cancel his/ her Independent Marketing Executive Agreement, and a Customer may suspend/cancel his/her Customer Membership Agreement, for any reason at any time by sending a completed Melaleuca Suspend My Preferred Customer Benefits Form to Melaleuca bearing his/her original signature, printed name, address, Customer Number and reason for canceling (to assist Melaleuca in improving its customer service). A Melaleuca suspension form will help insure the accurate information necessary to process the cancellation is submitted. If an individual or entity is a Preferred Customer and a Marketing Executive, the notice should specify which agreement(s) should be suspended. Suspensions received by Melaleuca on or before the 25th of the month will be effective the month received. Written suspensions received by Melaleuca after the 25th of the month will be effective the following month. Suspension notices must be mailed to: Melaleuca Southeast Asia (Malaysia) Sdn Bhd Unit B-10-3A & 5, Level 10, Menara UOA Bangsar, No. 5, Jalan Bangsar Utama 1, Kuala Lumpur, Malaysia (for Malaysia) Melaleuca Southeast Asia (Singapore) Pte Ltd 150 Changi Road, #01-01 Guthrie Building, Singapore (for Singapore). A Marketing Executive can also request the Melaleuca Suspend My Preferred Customer Benefits Form from his/her Web account. You may print and submit the aforementioned form as a valid document of membership suspension. 11. Cancellation Refund Policy Melaleuca will repurchase from Marketing Executives who have cancelled their Independent Marketing Executive Agreements all unencumbered products which are in resalable condition which were purchased by the Marketing Executive from Melaleuca within the previous 12 months, at a price of not less than ninety percent (90%) of the original net cost to the Marketing Executive. All products or materials must be returned to Melaleuca with shipping prepaid by the Marketing Executive in order to receive the above refund. Melaleuca will charge back all commissions, bonuses and rebates paid by Melaleuca relating to the purchases of those products. 12. Resale of Products Melaleuca products are sold only by Melaleuca directly to End Consumers. In order to ensure safety, freshness, efficacy and quality of Melaleuca products, Marketing Executives and Customers are strictly prohibited from directly offering Melaleuca products for resale to anyone at any time. This obligation continues even after a Customer Membership Agreement or Independent Marketing Executive Agreement is no longer in force for any reason. Melaleuca shall have the right to prevent and /or recover damages for any violations of this obligation by legal action and, to the extent permitted by law, a Marketing Executive or Customer will be obligated to pay Melaleuca s legal fees and costs in connection with any such legal action based upon his/her violation of this obligation. 13. Errors or Questions Marketing Executives should notify Melaleuca immediately of any errors or questions about commissions, bonuses, Monthly Business Reports, orders or charges. Melaleuca will correct any errors reported to it within 60 days, but Melaleuca will not be responsible for any errors, omissions or problems not reported within 60 days. 14. Joint Ownership of a Business Independent Melaleuca Businesses may only be owned by an individual or a married couple, or by corporations, tax exempt entities or trusts that comply with Melaleuca guidelines. If a couple who jointly own an Independent Melaleuca Business divorce, they may apply to have the Independent Melaleuca Business transferred to one of them as the sole owner. The divorced couple must submit to Melaleuca a written request specifying to which person the Independent Melaleuca Business will be transferred. The request must either contain the notarized signature of both parties or contain the notarized signature of at least one party and include a certified copy of the court approved divorce decree or property settlement that designates to which party the Independent Melaleuca Business should be transferred. Melaleuca is not bound by any such request or court decree and retains the right to approve or disapprove of such transfer request at its sole discretion. If the transfer is approved, the person to whom the Independent Melaleuca Business is being transferred must sign and submit to Melaleuca a new Independent Marketing Executive Agreement. 15. One Business per Person or Couple A Marketing Executive may not own, operate or have a financial interest in more than one Independent Melaleuca Business without Melaleuca s express written approval. With regard to married couples and non-married cohabiting couples, both persons will be treated as a single Marketing Executive for purposes of Melaleuca s policies. Therefore, for example, if one person owns an Independent Melaleuca Business, the other person may not own, operate or have a financial interest in a separate Independent Melaleuca Business. Additionally, if the couple jointly owns an Independent Melaleuca Business, neither person may own, operate or have a financial interest in a separate Independent Melaleuca Business. However, if two people who own separate Independent Melaleuca Businesses marry, they may each retain ownership of their businesses. 16. Conduct of Household Members If any member of the Marketing Executive s Immediate Household engages in any activity which, if performed by the Marketing Executive, would violate any Melaleuca policy or any provision of the Independent Marketing Executive Agreement, such activity will be deemed a violation by the Marketing Executive. 17. Inheritance of Business An Independent Melaleuca Business may be inherited by a single person, a married couple or a trust which complies with Melaleuca s guidelines, pursuant to a valid will or other appropriate document, or in accordance with the intestacy laws of the state, province, or country in which the Marketing Executive resides. A person who inherits an Independent Melaleuca Business must furnish Melaleuca with proper documentation that he/she is the beneficiary and is authorized to represent the estate. He/ she must also execute a Customer Membership Agreement and an Independent Marketing Executive Agreement, fulfill all of the functions of a Marketing Executive and abide by the terms of Melaleuca s Statement of Policies. 18. Sale or Transfer of Business A Marketing Executive cannot sell or transfer his/ her Independent Melaleuca Business (except for transfers by inheritance pursuant to Policy 17). 19. Transfer from Original Organization Marketing Executives and Customers may transfer from one Melaleuca organization to another only upon fulfillment of all of the following requirements: (a) The Marketing Executive or Customer seeking the organization change has submitted an Organization Change form with the original signatures of the Support Team Marketing Executives in the immediate seven generations above the Marketing Executive or Customer who have earned at least two Leadership Points over the previous six months; (b) A Marketing Executive seeking the organization change has no more than 10 Customers in his/her existing Marketing Organization and will have no more than 10 Customers in the Marketing Organization into which he/she is seeking to be moved; (c) The Marketing Executive or Customer seeking the organization change has paid to Melaleuca the applicable fee charged by Melaleuca for organization changes; (d) Melaleuca has approved the change in writing, which approval Melaleuca may withhold in its sole discretion. 20. Non-Solicitation and Conflicts of Interest Marketing Executives are independent contractors and may be active in other business ventures while they are Marketing Executives for Melaleuca. However, to qualify for compensation under Melaleuca s Compensation Plan, Marketing Executives have the ongoing responsibility to service, supervise, motivate, train and assist the Marketing Executives in their Marketing Organizations. They also have the responsibility to promote Melaleuca products and the Melaleuca income opportunity. Melaleuca and its Marketing Executives have made a great investment in the establishment of organizations consisting of Customers and Marketing Executives. This constitutes one of Melaleuca s most valuable assets. Melaleuca reserves the right to cease paying compensation to any Marketing Executive who recruits any Melaleuca Customer or Marketing Executive to participate in another business venture. In order to protect the efforts of all Marketing Executives in building and maintaining their individual Marketing Organizations and Customer bases, and in order to protect Melaleuca s interest in the overall Customer base, Marketing Executives and all members of their Immediate Household are required to abide by the following policies: (a) Non-Solicitation of Melaleuca Customers and Marketing Executives: (i) During the period that their Independent Marketing Executive Agreements are in force Marketing Executives and all members of their Immediate Household are prohibited from directly, indirectly or through a third party recruiting any Melaleuca Customers or Marketing Executives to participate in any other business venture. (ii) For a period of twelve months after cancellation or termination for any reason of a Marketing Executive s Independent Marketing Executive Agreement, the Marketing Executive and all members of his or her Immediate Household are prohibited from directly, indirectly or through a third party recruiting to participate in any other business venture any Melaleuca Customers or Marketing Executives: (1) who were in the Marketing Executive s Marketing Organization or Support Team at any time during the term of his or her association with Melaleuca; (2) with whom the Marketing Executive had contact during the term of his or her association with Melaleuca; (3) whose contact information (name, address, phone number or address, etc.) the Marketing Executive or members of his or her Immediate Household has obtained at any time during the term of his or her association with Melaleuca; or (4) whose contact information (name, address, phone number or address, etc.) the Marketing Executive or members of his or her Immediate Household obtained at any time from another person who obtained the information because of any other person s association with Melaleuca. The prohibitions under clauses (a)(i) and (ii) above include but are not limited to, presenting or assisting in the presentation of other business ventures to any Melaleuca Customer or Marketing Executive or implicitly or explicitly encouraging any Melaleuca Customer or Marketing Executive to join any other business ventures. It is a violation of this policy to recruit a Melaleuca Customer or Marketing Executive to participate in another business venture even if the Marketing Executive does not know that the prospect is also a Melaleuca Customer or Marketing Executive. It is the Marketing Executive s responsibility to first determine whether the prospect is a Melaleuca Customer or Marketing Executive before recruiting the prospect to participate in another business venture. (Please refer specifically to the definition of recruit in the Definitions of Terms at the end of these Policies.) (b) During the period that their Independent Marketing Executive Agreements are in force, and for a period of twelve months after the cancellation or termination thereof for any reason, Marketing Executives and all members of their Immediate Household are further prohibited from the following: (i) Producing any literature, tapes or promotional material of any nature (including but not limited to websites and s) which is used by the Marketing Executive or any third person to recruit Melaleuca Customers or Marketing Executives to participate in another business venture; (ii) Selling, offering to sell, or promoting any competing products or services to Melaleuca Customers; (iii) Offering any non-melaleuca products, services or business ventures in conjunction with the offering of Melaleuca products, services or income opportunity or at any Melaleuca meeting, seminar, launch, convention, or other Melaleuca function. (c) (i) Violation of any provision of this Policy 20 constitutes a Marketing Executive s voluntary resignation and cancellation of his/her Independent Marketing Executive Agreement, effective as of the date of the violation, and the forfeiture by the Marketing Executive of all commissions or bonuses payable for 36 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 37

20 and after the calendar month in which the violation occurred. (ii) If Melaleuca pays any bonuses or commissions to the Marketing Executive after the date of the violation, all bonuses and commissions for and after the calendar month in which the violation occurred shall be refunded to Melaleuca. (iii) Melaleuca may seek and obtain from the violating Marketing Executive both injunctive relief and damages for violations of this Policy 20. Melaleuca, may, at its option, elect to enforce this Policy by lawsuit in a court of competent jurisdiction in Idaho rather than by arbitration. (iv) In addition to being entitled to a refund of bonuses and commissions and to damages as described above, in the event a person or entity violates this Policy 20, Melaleuca and any Marketing Executive that experiences an adverse financial impact as a result of such person s or entity s violation of this Policy 20 shall be entitled to an accounting and repayment of all profits, compensation, commissions, remunerations or other benefits which the person or entity directly or indirectly receives and/or may receive as a result of, growing out of, or in connection with any violation of this Policy. Such remedy shall be in addition to and not in limitation of any damages, or injunctive relief or other rights or remedies to which Melaleuca is or may be entitled at law or in equity. (d) Violations of this Policy 20 are especially detrimental to the growth and sales of other Marketing Executives Independent Melaleuca Businesses and to Melaleuca s business. Consequently, Marketing Executives who have knowledge that any Marketing Executive has violated this Policy must immediately report that information to Melaleuca s Policy Administration Department. The failure of a Marketing Executive to report such information to Melaleuca will also constitute a violation of this Policy. The names of those reporting violations of this Policy 20 will be held in confidence. 21. Proprietary Information and Trade Secrets By executing the Independent Marketing Executive Agreement, the Marketing Executive acknowledges that all information which is contained in the Marketing Executive s Monthly Business Report, including names, addresses and telephone numbers of Marketing Executives and Customers, and all identifying information relating to other Marketing Executives or customers that the Marketing Executive became aware of while conducting Melaleuca business in any way or while attending Melaleuca related events, is Melaleuca s proprietary trade secret information. The Marketing Executive agrees not to disclose such information to any third party (except to existing or prospective Melaleuca Marketing Executives or Customers for the purpose of promoting Melaleuca products and business opportunity) or to utilize such information for the purpose of promoting any other business opportunity at any time, whether during the term of his/her association with Melaleuca or thereafter. The Marketing Executive acknowledges that such proprietary information is of such character as to render it unique and that disclosure or use thereof in violation of this provision will result in irreparable damage to Melaleuca and to Independent Melaleuca Businesses. Melaleuca and its Marketing Executives will be entitled to injunctive relief to prevent violation of this policy. If litigation or arbitration is required to obtain injunctive relief or to recover damages, the prevailing party shall be entitled to an award of attorney s fees and expenses. 22. The Enroller and Presenter (a) A Marketing Executive who is the Enroller of a new Customer or Marketing Executive may not list another Marketing Executive who did not participate in the contact or the presentation as either the Enroller or Presenter of such new Customer or Marketing Executive. Regardless of where a Customer or Marketing Executive is placed in a Marketing Organization, the actual Enroller of such Customer or Marketing Executive must be listed as the Enroller on the Customer Membership Agreement. (b) The Enroller and any other Marketing Executives involved in the recruiting and enrollment process may use only Melaleuca s products and its Compensation Plan and their personal commitment to help the new Marketing Executive build his or her business as an inducement to enroll. Marketing Executives may not enter into special deals with an Enrollee, including, but not limited to, promises of the payment of money or roll ups. (c) Before being listed as the Enroller or Presenter, a Marketing Executive must have meaningful contact with the Enrollee in person, over the telephone, or via other live, face-to-face (or vocal) means of communication. 23. Supervisory and Leadership Functions Marketing Executives compensation is based on sales of product to the End Consumer. To qualify for this compensation Marketing Executives have the ongoing responsibility to promote the Melaleuca business opportunity, to support Melaleuca s policies, programs and personnel, and to service, supervise, motivate and train the Marketing Executives in their Marketing Organization to recommend Melaleuca products and promote the Melaleuca business opportunity. Any effort by a Marketing Executive to convince or entice any Customer or Marketing Executive to discontinue or diminish purchasing Melaleuca products, to move from one Melaleuca Marketing Organization to another, to discontinue or diminish efforts to promote the Melaleuca business opportunity, or to promote or pursue another direct selling opportunity, or to disparage Melaleuca, or its products, marketing plan, management team or other personnel is a violation of the Marketing Executive s leadership responsibility and a violation of this policy. 24. Inventory Purchases Prohibited Melaleuca s business model operates on the principle that 100% of sales by Melaleuca are made to End Consumers. Any device or scheme whereby a Marketing Executive directly or through a third party purchases product solely for purposes of qualifying for bonuses or commissions constitutes fraud on the part of the Marketing Executive and is a violation of this policy. 25. Display in Stores Melaleuca is in strong support of home-based businesses and personal product presentations. To maintain a standard of fairness, Marketing Executives may not display Melaleuca products in drug stores, health food stores or grocery stores. Any display of Melaleuca products to the public must be tasteful and professional. 26. Media Inquiries It is Melaleuca s policy to have a single spokesperson handle all inquiries from the media and all media relations. Therefore, Marketing Executives may not, for any reason, discuss their Independent Melaleuca Business with the media, nor act as spokespersons for Melaleuca nor talk to the media regarding Melaleuca, its Compensation Plan, its products or services. It is a violation of this policy to provide any information to the media, regardless of whether the information is positive or negative, accurate or inaccurate. All inquiries from the media (whether radio, television or print) must be referred to Melaleuca. 27. Checks and Monthly Business Reports Commission and bonus checks are generally made available by Melaleuca to Marketing Executives on or about the 15th day of each month for commissions and bonuses earned during the previous month. When the 15th day of the month falls on a weekend or holiday, payment will generally be made available on the next business day. Each Marketing Executive qualifying for a commission or bonus will receive a Monthly Business Report showing the status of each Customer and Marketing Executive in his/her Marketing Organization. The Monthly Business Report will show the calculation of the Marketing Executive s commission and bonus. Marketing Executives should use their Monthly Business Report as a tool to manage, supervise and train the members of their Marketing Organizations. The information contained in Business Reports is Melaleuca s proprietary trade secret information, and Marketing Executives are prohibited from disseminating the information contained therein. See Policy 21 for further detail regarding Marketing Executives obligations with respect to such proprietary trade secret information. A data processing fee is charged to each Marketing Executive for generating and maintaining computerized Monthly Business Reports. Commissions and bonuses which failed to be credited directly into the Marketing Executive s designated local bank account through Interbank GIRO will be charged a processing fee of S$25 and will be credited to the Marketing Executive s account, which credit may be used towards future purchases made by the Marketing Executive. If a Marketing Executive s account is inactive and it is necessary to notify the Marketing Executive of the credit on account, a service charge of S$15/ RM35 will be deducted from the account for each notice sent. 28. Purchases for Other Persons A Marketing Executive may not order or pay for products for Customers without such Customer s express authorization and agreement to reimburse the Marketing Executive for such product. 29. Restrictions on International Marketing Marketing Executives enrolled in Singapore and Malaysia are authorized to recommend Melaleuca products and to enroll Customers and Marketing Executives. In all other countries in which Melaleuca or its affiliates are authorized to conduct business Marketing Executives may only enroll Customers and Marketing Executives pursuant to Melaleuca s International Sponsorship Program. Marketing Executives and Customers may not ship or sell Melaleuca products across any international border for the purpose of resale. Marketing Executives and Customers may not sell, give, transfer, import, export or distribute Melaleuca products or sales aids nor provide products to any individual who the Marketing Executive or Customer knows or has reason to believe is exporting products to another country. 30. Trademark, Service Mark and Trade Name Restrictions Customers and Marketing Executives may not use, reproduce or disseminate the Melaleuca trade name or logo or any Melaleuca trademark or service mark except in the use and dissemination of literature published and made available by Melaleuca and except on stationery and business cards produced and authorized by Melaleuca. This includes, but is not limited to, the formatives Mela and Mel, the term Melaleuca, the leaf and drop logo, and all marks or slogans designating products or services offered by Melaleuca. 31. Rules regarding Advertising, Internet Usage and Sale of Materials (a) Marketing Executives may not: (i) create, publish, sell, use, display or distribute any literature, audio or video recording, Internet web site, telephone ad message, Internet bulletin board message, mass or bulk message (including auto-response messages), infomercial or other print, audio, visual, electronic media or social networking sites which represents Melaleuca, its products, services, Compensation Plan or business opportunity other than as specifically permitted pursuant to this Policy and Melaleuca s Guidelines on Internet Usage or that which is produced and provided by Melaleuca; (ii) copy or reproduce any materials produced by Melaleuca except as specifically permitted pursuant to this policy; (iii) use the Melaleuca name or logo or the name or logo of any of Melaleuca s products or services in any notice, display, advertisement or promotion, including, but not limited to, newspaper, magazine, radio, television or Internet or advertisements, or telephone, Internet or other directories (except a Marketing Executive may have a directory listing in the following format: Melaleuca Independent Marketing Executive [name of Marketing Executive] ); (iv) display, advertise or promote Melaleuca s products, services or business opportunity at county fairs, craft fairs, business fairs, trade shows, flea markets or any similar event, including the use of booths, without the express prior written approval of Melaleuca; (v) charge for Melaleuca-related meetings performed or arranged by a Marketing Executive except to the extent necessary to cover the actual out-of-pocket expenses incurred. (b) Marketing Executives may use websites and messages only in accordance with Melaleuca s Guidelines on Internet Usage as the same are published on Melaleuca s website, and which may be revised and modified from time to time at Melaleuca s sole discretion. Melaleuca will take reasonable measures to publish notice of any changes to the guidelines on its website, however it is the Marketing Executives responsibility to review these guidelines periodically to be informed of and comply with any changes. (c) Marketing Executives may only use websites produced by Melaleuca s approved website vendors. (d) Melaleuca will have the right, in its absolute discretion, to require that any Melaleuca related website be taken down and that any Melaleuca related message be discontinued. A Marketing Executive s failure to comply with any provision of this policy may result in forfeiture of commissions and bonuses, fines, and/or in termination of the Marketing Executive s Independent Marketing Executive Agreement. 32. Income Claims Marketing Executives are prohibited from making false, misleading or inaccurate claims about their or other persons compensation received under the Melaleuca Compensation Plan. If, when presenting the Melaleuca business opportunity, a Marketing Executive makes any claim regarding his/her compensation from Melaleuca, or the potential compensation payable under Melaleuca s Compensation Plan, the Marketing Executive must also show the person(s) receiving the presentation Melaleuca s current Marketing Executives Annual Income Statistics sheet. 33. Product Claims and Warranties Marketing Executives may not make any product claims, weight loss or health benefit claims, or product warranties other than those published in Official Melaleuca Material. Marketing Executives shall not publish or distribute information relating to uses of Melaleuca products other than those which are set forth in Official Melaleuca Material. Marketing Executives may not utilize Official Melaleuca Material which is approved for use in one country to make product claims or promote Melaleuca products in another country. 34. Ethical Sales Practices Marketing Executives shall: Conduct themselves in a professional, courteous and considerate manner; Represent Melaleuca products in a sincere and honest manner and will honor Melaleuca s Customer Satisfaction Guarantee; Represent the Melaleuca Compensation Plan only as prescribed by Official Melaleuca Material; Become familiar with and utilize sales 38 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 39

21 techniques, Melaleuca s Compensation Plan and Statement of Policies, and other materials as prescribed by Melaleuca; Present the Melaleuca business opportunity in a manner which is consistent with Official Melaleuca Material; and Provide training, motivation and support to Marketing Executives in their organization Marketing Executives shall not: Engage in any deceptive, unlawful, or unethical business or recruiting practice; Engage in any high pressure selling or recruiting practices; Enroll minors or persons who are not capable of making an informed decision with respect to entering into a Customer Membership Agreement or Independent Marketing Executive Agreement; Order Melaleuca products for other Customers or Marketing Executives without the express permission of such persons; List a Marketing Executive as an Enroller who did not participate in the contact or the presentation of a new Customer or Marketing Executive and who did not meaningfully contact the Enrollee in person, over the telephone, or via other live, face-toface (or vocal) means of communication; or Seek in any way to violate or circumvent Melaleuca s policies In addition, Marketing Executives are prohibited from, directly or indirectly, presenting or participating in any arrangement that results in (1) the distribution of compensation received from Melaleuca by one Marketing Executive to any other Marketing Executives or Customers, (2) offering any money, any form of financial subsidy or other illegitimate service (including but not limited to free product) to any (including potential) Customer for the purpose of advancement or earning commissions, or (3) developing the Melaleuca business opportunity in an illegitimate way, including but not limited to, investment scheme, the use of fake accounts, or providing any form of financial subsidy to any Marketing Executive or Customer. 35. Policy Disclosure Requirement Prior to enrolling a prospective Marketing Executive, Marketing Executives shall provide to and review with the prospective Marketing Executive a current copy of Melaleuca s Statement of Policies and Definitions of Terms. 36. Voluntary Resignation Due to Inactivity It is the Marketing Executive s responsibility to lead his/her Marketing Organization with the proper example in production of Personal Product Points. Without this proper example and leadership, the Marketing Executive will lose his/ her right to receive commissions and bonuses from his/her Marketing Organization. Therefore, Marketing Executives who produce less than the minimum Personal Product Points required to maintain their current Commission Rate during a month, as set forth in the Compensation Plan, will not receive the commission or bonus attributable to such status for the sales generated through their Marketing Organization for that month. Failure to meet Personal Product Points requirements for two consecutive months constitutes the Marketing Executive s voluntary resignation. A Marketing Executive who has voluntarily resigned will lose all his/her Personal Enrollees and his/her Marketing Organization. The resignation shall become effective on the day following the last day of the second month of inactivity. 37. Reactivation and Reenrollment Requirements (a) When a Marketing Executive who has been deemed to have voluntarily resigned due to inactivity under Policy 36 becomes reactivated, he/she will reenter his/her previous Marketing Organization in the first available position below his/her original Marketing Executive other than the position left vacant by such Marketing Executive. (b) Former (i) Customers and Marketing Executives with the Status of Product Advocate 3 or below (1) may re-enroll as new Customers and Marketing Executives with their original Enroller and their original Marketing Executive at any time. (2) Customers and Marketing Executives with the status of Product Advocate 3 or below who have not been enrolled with Melaleuca for at least the previous six consecutive months may reenroll as new Customers and Marketing Executives with the Enroller and Marketing Executive of their choice. (ii) Marketing Executives with the Status of Director and above (1) may reenroll as new Customers and Marketing Executives with their original Enroller and their original Marketing Executive at any time. (2) Marketing Executives with a Status of Director or above must be inactive for one year before they can reenroll with an enroller and Marketing Executive of their choice. (3) may reenroll with an enroller of his or her choice after 6 months of inactivity if he or she has not been an Commission Rate Director or above during the 12 months prior to the first month of inactivity. (iii) No leadership points will be awarded for any presentation or enrollment of a reenrolled Customer who has been inactive for fewer than 3 years. (c) If a former Customer or Marketing Executive desires to reenroll in a new Marketing Organization in which any Marketing Executive in the new Support Team was also in his/her previous Support Team, such former Customer or Marketing Executive may reenroll no sooner than twelve months following the date that such Support Team Marketing Executive became inactive in his/ her previous Marketing Organization. Any individual involved in the violation of this policy will be subject to corrective measures pursuant to Policy 42, including fines and/ or cancellation of his or her Independent Marketing Executive Agreement. (d) Former Customers or Marketing Executives who reenroll pursuant to this Policy 37 will not be eligible to roll up pursuant to Policy Titles Not Forfeited A Marketing Executive can lose his/her Commission Rate Status and therefore the right to receive corresponding commissions and bonuses if he/she no longer qualifies for the commissions or bonuses pertaining such status. However, as long as a Marketing Executive remains active, he/ she will not forfeit the title of the highest Status he/she has achieved. 39. Roll-Up Policy (a) Melaleuca considers roll ups to be an important aspect of operating a healthy Melaleuca business. However, receiving a roll up is not a right for a Marketing Executive under any circumstances. Melaleuca in its sole discretion has the right to stop a roll up or otherwise prevent any roll up from occurring. The following are guidelines only and not considered policy and shall not be binding on Melaleuca. (b) When a vacancy occurs in a Marketing Organization for any reason including the inactivity or termination of a Customer or Marketing Executive (a Cancelled Marketing Executive ), each Marketing Executive in the first generation below the Cancelled Marketing Executive (a First Generation Marketing Executive ) may have the opportunity to qualify to roll up into the position of the Cancelled Marketing Executive subject to the following conditions: (i) If the Cancelled Marketing Executive s Marketing Organization had fewer than 10 Active Customers in the first month of inactivity, the First Generation Marketing Executive with the highest Commission Rate in the Cancelled Marketing Executive s second month of inactivity will be eligible to roll up to the position of the Cancelled Marketing Executive in the month following the Cancelled Marketing Executive s second month of inactivity. In the event of a tie, the following criteria will be applied, in the order listed, to the First Generation Marketing Executives involved in the tie until the tie is broken: (1) who has the largest number of personally enrolled Directors; (2) who has the largest number of personally enrolled Preferred Customers; (3) whose Marketing Organization has the largest number of Preferred Customers; (4) whose Marketing Organization has the highest average Product Points order per Customer; (5) who has the highest Personal Product Points; and (6) who enrolled first. (ii) If the Cancelled Marketing Executive s Marketing Organization had at least 10 but fewer than 100 Active Customers in the first month of inactivity, the First Generation Marketing Executive who first does the following will be eligible to roll up to the position of the Cancelled Marketing Executive the month following their achieving these requirements, but in no event sooner than the month following the Cancelled Marketing Executive s second month of inactivity: (1) advances to a new Status of Director 3 or greater; (2) advances to a new Status which corresponds at least to the Cancelled Marketing Executive s Organization Volume in the first month of inactivity; and (3) grows his/her Marketing Organization by 25 Active Customers (excluding roll ups and moves) since the Cancelled Marketing Executive s first month of inactivity. If two or more First Generation Marketing Executives qualify for the roll-up in the same month, the tie will be broken by application of the criteria set forth in subparagraph (i) above. (iii) If the Cancelled Marketing Executive has 100 or more Active Customers in his/ her first month of inactivity, no roll up shall occur. (c) The Enroller of a Cancelled Marketing Executive will inherit the Cancelled Marketing Executive s Personal Enrollees as follows: (i) For each Personal Enrollee who is a Customer (with no Marketing Organization) or who had the Commission Rate of a Product Advocate and had less than 2,500 Organization Volume in the Cancelled Marketing Executive s first month of inactivity the Enroller will automatically inherit the Customer as a Personal Enrollee in the Cancelled Marketing Executive s third month of inactivity. (ii) For each Personal Enrollee who had the Commission Rate of a Product Advocate 2 or above and had less than 2,500 Organization Volume in the Cancelled Marketing Executive s first month of inactivity, the Enroller will inherit such Personal Enrollee in the month following the month the Personal Enrollee has advanced one status above the Commission Rate the Personal Enrollee had in the Cancelled Marketing Executive s first month of inactivity. (iii) For each Personal Enrollee who had Organization Volume of 2,500 or more in the Cancelled Marketing Executive s first month of inactivity, the Enroller will inherit such Personal Enrollee in the month following the month the Personal Enrollee has advanced one status above the Volume Status that the Personal Enrollee had in the Cancelled Marketing Executive s first month of inactivity. (iv) If the Personal Enrollee had Organization Volume of 50,000 or more or a Status of Executive Director or higher in the Cancelled Marketing Executive s first month of inactivity, the Enroller cannot inherit such Personal Enrollee. However, in the case of termination, Marketing Executives who had Organization Volume of 50,000 or more or who had a Status of Executive Director or above at the time of their Enroller s termination may be inherited when all of the following occur: a) The potential Enroller helps the potential Personal Enrollee advance to one Status above the Volume Status that the potential Personal Enrollee had in the terminated Marketing Executive s first month of inactivity; and b) The potential Enroller helps another Personal Enrollee advance to Executive Director for the first time after the Cancelled Marketing Executive s first month of inactivity. The advancing Personal Enrollee must be an actual Personal Enrollee of the potential Enroller, not an inherited Personal Enrollee. c) All other inheritance rules apply. (v) When a Marketing Executive is terminated, the Enroller of the Cancelled Marketing Executive will continue to receive PEG Volume on the original Marketing Organization of the Cancelled Marketing Executive. (vi) No Enroller can inherit a Personal Enrollee whose Status is higher than his/ her own, unless neither has a Status higher than Director 2. (vii) When a Marketing Executive has their Independent Marketing Executive Agreement cancelled or terminated by Melaleuca, or went inactive while under investigation for a policy violation, in the month that the cancellation/ termination occurs, target statuses for the Personal Enrollees will be set and inheritances will occur based in accordance with all other existing policies. d) If the Cancelled Marketing Executive had the Commission Rate of Senior Director or above in his/her last month of activity and (i) was terminated by Melaleuca for a policy violation or (ii) voluntarily resigned or went inactive while under investigation for a policy violation, the Enroller of such Cancelled Marketing Executive will continue to receive credit for having a Personal Enrollee with the same Status (Senior, Executive, National or Corporate Director) to count towards the Enroller s Status for twelve consecutive months from the month following the termination or resignation of the Cancelled Marketing Executive. For each month after the initial twelve months, the Enroller of such Cancelled Marketing Executive will receive credit for having a Personal Enrollee with the Status (Senior, Executive, National or Corporate Director) attributable pursuant to the Compensation Plan to the Organization Volume of the Marketing Organization of the Cancelled Marketing Executive. However, such credit cannot apply at the same time with respect to two Personal Enrollees. Therefore, the credit will expire in the first month in which the Enroller of the Cancelled Marketing Executive has inherited a potential Personal Enrollee who has or achieves Executive Director Status or the Status of the Cancelled Marketing Executive at the time of cancellation. (e) To qualify for any roll up or inheritance, the Marketing Executive who will be receiving the roll up or who will be inheriting Personal Enrollees must have been in compliance with Melaleuca s Statement of Policies for the preceding 12 months and must not have been involved in any illegal, fraudulent, deceptive or unethical conduct. Melaleuca will fully investigate the 40 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 41

22 cancelation to determine, at Melaleuca s sole discretion, full compliance with Melaleuca s policies. 40. Obligations of Independent Contractors As an independent contractor, it is a Marketing Executive s responsibility to: (a) Abide by any and all federal, state, provincial, county and local laws, rules and regulations pertaining to the acquisition, receipt, holding, selling, distributing or advertising of Melaleuca products and services and the promotion of the Melaleuca business opportunity; (b) At the Marketing Executive s own expense, make, execute or file all such reports and obtain such licenses as are required by law or public authority with respect to his/her Independent Melaleuca Business and/or the receipt, holding, selling, distributing or promoting of Melaleuca products; (c) Be solely responsible for declaration and payment of all local, state, provincial, federal and general sales taxes and fees as may accrue because of the Marketing Executive s activities in conjunction with his/her Independent Melaleuca Business; (d) Supply all of his/her own equipment and tools for operating his/her business, such as telephone, transportation, professional services, office equipment, and office supplies; and (e) Provide his/her own place of business and determine his/her own work hours. 41. Forfeiture of Rights to Bonuses and Commissions So long as a Marketing Executive is complying with all policies and terms of the Independent Marketing Executive Agreement, Melaleuca is obligated to pay commissions and bonuses to such Marketing Executive in accordance with the Compensation Plan. A Marketing Executive s commissions and bonuses constitute the entire consideration for all of the Marketing Executive s efforts in generating sales, and the Marketing Executive s right to receive commissions and bonuses from Melaleuca constitutes the entire value attributable to the Marketing Executive s Marketing Organization. Following a Marketing Executive s resignation, cancellation for inactivity, or voluntary or involuntary cancellation of his/ her Independent Marketing Executive Agreement, such former Marketing Executive shall have no right, title, claim or interest to the Marketing Organization. The former Marketing Executive shall have no claim for compensation for the Marketing Organization or for bonuses or commissions stemming from sales generated within or by the Marketing Organization or for financial freedom bonus amounts held in escrow by Melaleuca. Following voluntary or involuntary cancellation of his/her Independent Marketing Executive Agreement, the former Marketing Executive shall not hold himself/herself out as a Melaleuca Marketing Executive and shall not have the right to recommend or promote Melaleuca products or services. 42. Corrective Measures All of the policies in this Statement of Policies, the provisions of the Independent Marketing Executive Agreement, the Corporate Entity Application and Agreement, the Tax Exempt Entity Application and Agreement and any other agreements entered into by and between Melaleuca and Marketing Executives are material terms to the agreement between Melaleuca and Marketing Executives. A Marketing Executive s violation of any of the terms and conditions of any of these agreements or the Statement of Policies or any illegal, fraudulent, deceptive or unethical conduct by a Marketing Executive may result, at Melaleuca s discretion, in one or more of the following corrective measures: (a) issuance of a written warning or admonition; (b) imposition of a fine, which may be imposed immediately or withheld from future commission and/or bonus checks; (c) reassignment of all or part of his/her Marketing Organization; (d) suspension of his/her Independent Marketing Executive Agreement for one or more months; (e) cancellation of his or her Independent Marketing Executive Agreement; or (f) any other measure expressly stated within any of the policies set forth in the Statement of Policies or any provision of the Marketing Executive Agreement, the Corporate Entity Application and Agreement, or the Tax Exempt Entity Application and Agreement. Melaleuca has the right to withhold from a Marketing Executive all bonuses and commissions during the period that Melaleuca is investigating the alleged violative conduct of the Marketing Executive. If a Marketing Executive s Independent Marketing Executive Agreement is cancelled due to a violation preceding the investigation, the Marketing Executive will not be entitled to any commissions or bonuses withheld by Melaleuca during the investigation period. 43. Amendments to Compensation Plan, Statement of Policies, and/or Independent Marketing Executive Agreement Upon 30 days notice to Marketing Executives, Melaleuca may, at its sole discretion, amend the Compensation Plan, Statement of Policies, Definition of Terms and/or the terms of the Independent Marketing Executive Agreement and any other agreements entered into by and between Melaleuca and the Marketing Executives. By signing the Independent Marketing Executive Agreement, Marketing Executives agree to abide by any such amendments. The continuation of an Independent Melaleuca Business or a Marketing Executive s acceptance of commissions and/ or bonuses from Melaleuca after the 30 days notification period constitutes his/her acceptance of any such amendments. After the 30 days notification period, Marketing Executives will be bound by the most current versions of the Compensation Plan, the Statement of Policies, the Definitions of Terms, the Independent Marketing Executive Agreement and any other agreements entered into by and between Melaleuca and the Marketing Executives. Definition of Terms The following terms will have the meanings set forth herein when used in Melaleuca s Statement of Policies, Compensation Plan and/or Independent Marketing Executive Agreement and other official Melaleuca material. Active Customer: A Customer who purchases at least 29 Product Points during the calendar month. Active Marketing Executive: A Marketing Executive who personally produces the number of Product Points each month that are required to qualify for commissions pursuant to the Compensation Plan. Annual Income Statistics: A summary of income statistics published by Melaleuca setting forth information regarding average, high and low income received by Marketing Executives on an annual basis. Average Retention Index: An average of the percentages of customers remaining in an organization from the past five enrollment months. Backup Order: A preselected package of Melaleuca products which is automatically shipped to Preferred Customers if they fail to order the minimum monthly Product Points agreed upon in their Customer Membership Agreement. Those who select the Preferred Customer option in the Customer Membership Agreement preauthorize Melaleuca to send a Backup Order and it will be charged to their credit card. Business Kit: The Melaleuca product and business opportunity information portfolio purchased by a new Marketing Executive pursuant to the terms of the Independent Marketing Executive Agreement which includes product and marketing information and other Official Melaleuca Material. Commission Rate: The status at which a Marketing Executive is paid in any month because the Marketing Executive has met all the qualifications to be paid at that status. Compensation Plan: The plan as offered and interpreted by Melaleuca that compensates Marketing Executives for the continued building, promotion, training, motivation, servicing and development of their Independent Melaleuca Businesses. Competing Business Venture: Any business or business opportunity involving the sale, marketing or referral of products or service through direct selling (as defined by the Direct Selling Association), network marketing or other similar business opportunity. Customer: A person who has an Enroller, has completed, executed and delivered to Melaleuca a Customer Membership Agreement and has paid to Melaleuca the appropriate membership fee. Customers are either Direct Customers or Preferred Customers. Customer Membership Agreement: The agreement which must be completed, signed, received and accepted by Melaleuca before a person may become a Customer. Customer Number: A unique number assigned by Melaleuca to each Customer to facilitate internal record keeping by Melaleuca with respect to the Customer. Direct Customer: A Customer who is authorized to purchase products from Melaleuca at Market prices pursuant to a Customer Membership Agreement. End Consumer: A person who purchases Melaleuca products for the purpose of consuming them rather than for resale to someone else. Enroll: To enlist, sponsor or sign up an individual or entity into a program or organization. Enrollee: A Customer or Marketing Executive. Enroller: The Marketing Executive who is listed on the Customer Membership Agreement as the Enroller. The Enroller must be the person who introduced the new Customer to Melaleuca and helped him/her become a Customer or who played an active role in the presentation of Melaleuca products or business opportunity to the new Customer. Before being listed as the Enroller, a Marketing Executive must have meaningful contact with the Enrollee in person, over the telephone, or via other live, face-to-face (or vocal) means of communication. Immediate Household: Married couples and persons residing in the same home, and with respect to Marketing Executives and Customers which are entities (e.g., corporations, tax exempt entities, trusts, etc.) rather than individuals, Immediate Household means the shareholders, owners, directors, officers, trustees, responsible parties, etc. of such entities and persona married to or residing in the same home with the persons who are the shareholders, owners, directors, officers, trustees, responsible parties, etc. of such entities. Interbank GIRO: A payment method by which a customer authorizes Melaleuca to deduct payment for orders directly from his/her account. Independent Marketing Executive Agreement: The agreement which must be completed, signed, received and accepted by Melaleuca as one of the prerequisites to becoming a Marketing Executive. Independent Melaleuca Business: The business organization consisting of a Marketing Executive and those persons and entities that purchase Melaleuca products for which the Marketing Executive is entitled to receive commissions. Marketing Executive: A person who has completed, executed, and delivered to Melaleuca an Independent Marketing Executive Agreement; has purchased a Business Kit; has at least one Customer in his/her Marketing Organization; and has received his/her first commission check. Marketing Organization: The Customers and Marketing Executives who comprise the group of individuals or entities from which the Marketing Executive is entitled to receive commissions based upon the collective sales volume of the group and the status of certain Marketing Executive within the group pursuant to the Compensation Plan. Melaleuca: Melaleuca Southeast Asia (Singapore) Pte Ltd, Melaleuca Southeast Asia (Malaysia) Sdn Bhd. Melaleuca International Sponsorship Program: The program offered by Melaleuca with regard 42 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 43

23 to sponsorship by Marketing Executives in one country of Customers and Marketing Executives in foreign countries where Melaleuca is authorized to do business. Monthly Business Reports: Reports produced by Melaleuca on a monthly basis and provided to Marketing Executives which contain information relating to the activity of the Marketing Executive s Marketing Organization. The Monthly Business Reports contain trade secret information that is proprietary to Melaleuca. Official Melaleuca Material: Material in any form that is authorized, published, and disseminated by Melaleuca. This includes, but is not limited to, printed material, audio and visual materials, satellite broadcasts, fax and electronic communications and Internet communications. Organization PCs: The total net Preferred Customers in a Marketing Executive s organization in a given month. Organization Volume: The total Product Points from products purchased in a Marketing Executive s Marketing Organization in a calendar month. PEG Volume (Personal Enrollee Group Volume): The total Organization Volume of a Marketing Executive s Personal Enrollees in given month. Personal Product Points: The total monthly Product Points personally produced by a Marketing Executive. Personal Director: A Personal Enrollee with the Commission Rate of Director or above. Personal Enrollee: An Enroller s Enrollee to whom the Enroller has personally introduced Melaleuca and/or has played an active role in the presentation of Melaleuca products or business opportunity. Preferred Customer: A Customer who has stipulated in the Customer Agreement that the customer is committed to purchase at least 35 Product Points per month. In addition to many other benefits, Preferred Customers receive a 30% to 50% discount on Melaleuca products. Presenter: The Marketing Executive who is listed on the Customer Membership Agreement as the Presenter. The Presenter must be a person who played a significant role in the presentation of Melaleuca products or business opportunity to the new Customer. The Presentation needs to be in person, over the telephone, or via other live, face-to-face (or vocal) means of communication. Product Points: A value assigned to each Melaleuca product upon which commissions and bonuses are calculated. Product Point Production: To produce Product Points, a Marketing Executive must create sales to End Consumers other than customers in Marketing Executive s Marketing Organization. These sales must be products the consumer actually desires or needs as opposed to enticing consumers to purchase products in order for the Marketing Executive to qualify for a commission. Quality Customer: A customer who enrolled as a Preferred Customer and ordered products (did not receive a Backup order) from Melaleuca in the customer s first month of enrollment. Quality Enroll: To enroll a Quality Customer. Recruit: 1) To attempt to enroll, enlist, or solicit an individual or entity to join a business, program or organization; or 2) to attempt to promote, influence or encourage an individual or entity to join a business, program or organization; or 3) to present, or participate or assist in the presentation of, a business, program, organization or its products. To constitute recruiting, such efforts or attempts may be performed either directly through personal contact or indirectly through a third party. Statement of Policies: The policies published by Melaleuca, as amended from time to time, which set forth, among other things, the requirements for operating an Independent Melaleuca Business. Status: The highest Commission Rate a Marketing Executive has ever achieved. Support Team: The seven Marketing Executives above an individual in a Marketing Organization who have the potential to receive commissions based upon the purchases of that Customer. True PEG (Personal Enrollee Group Volume): The total Organization Volume of a Marketing Executive s Personal Enrollees in any given month. (Contrary to how PEG Volume is calculated, True PEG counts each Customer s monthly purchase volume only once, even though that Customer might be under several Personal Enrollees in the organization). Volume Status: All advancements in status of Director II or above require a minimum Organization Volume. The status corresponding to each required volume in the Compensation Plan is the Volume Status. Melaleuca Guidelines on Internet Usage 1. Approved Website Providers All websites controlled solely, registered, or owned by a Marketing Executive (or by anyone acting on a Marketing Executive s behalf regarding the website) for any purpose related to the Marketing Executive s Melaleuca business must be hosted by one of Melaleuca s approved providers. For more information on approved providers, go to malaysia.melaleuca.com or sg.melaleuca.com, log on, and go to the Business Center section of the website. When a Marketing Executive is part of an Internet or other digital community or group for reasons outside of generating leads or training, the Marketing Executive may post contextual links or information relevant to the specific community or group as long as the posting complies with Melaleuca s policies and the community s or group s rules. Social Media websites and accounts not hosted by Melaleuca s approved providers may be used by Marketing Executives as permitted by these guidelines. For purposes of these guidelines, Social Media is defined as any website that is not controlled solely, registered, or owned by a Marketing Executive (or by anyone acting on a Marketing Executive s behalf regarding the website), and any medium that is not a website, which facilitates online or digital communication, including, but not limited to: Social networking sites (LinkedIn, Facebook, Instagram); Microblogging Sites (Twitter, Pinterest); Blogs (including company and personal blogs); Online encyclopedias (Wikipedia); and Video and photo-sharing websites (YouTube, Flickr). 2. Internet and Digital Usage for Lead Generation Marketing Executives may use Social Media accounts, web ads, and websites for the purpose of generating leads of potential customers, and may send one or more s (or other digital communications directed to specific persons) in response to persons who request information, provided that such websites, responsive s, and other digital communications are in compliance with Melaleuca s guidelines. Unsolicited digital communications directed to specific persons (including spam s) are not permitted. In particular, intrusive, unsolicited communications directed to specific persons or members of a group regarding the Melaleuca income opportunity via web pages, web groups, Facebook groups, LinkedIn groups, or other Social Media sites are prohibited, except where the clear, primary purpose of the page, group, or site is to facilitate the sharing of business opportunities with others. Where the primary purpose of a page, group, or site is to facilitate the sharing of parenting ideas, safe household products, or anything else besides business opportunities even if others sometimes use the forum for sharing business opportunities these types of intrusive, unsolicited communications regarding the Melaleuca income opportunity are prohibited. More passive communications regarding the Melaleuca income opportunity that are not directed to specific persons or members of a group are permitted as long as they comply with Melaleuca s policies and guidelines. For example, a Marketing Executive may post communications compliant with Melaleuca s policies and guidelines on his or her own Facebook wall. The general standard for all means of Internet and digital communication is that they should be conservative and appropriate to the promotion of quality products and a professionally operated business. To the extent any means of Internet or digital communication are used to generate leads, they should be used only as a precursor to the meaningful, in-person contact required of an Enroller prior to enrollment under Policy 22. The following provisions are designed to provide guidance and to ensure this standard is maintained. a) All Internet and digital communications must: i) contain the Marketing Executive s first and last legal name and telephone number or address to contact the Marketing Executive unless this information is already reasonably available from the context for the communication. This includes all Social Media accounts. ii) be professional-looking, product-oriented and use professional business language, avoiding hype. b) Internet and digital communications may: i) solicit the reader s interest in high-quality, safe, and effective nutritional, personal care, cosmetic, and household cleaning products from a catalog. ii) solicit the reader s interest in a home-based business opportunity. iii) contain a member s login section to access a Marketing Executive s Training and Information website/pages. (1) This link/login section MAY NOT refer to any Melaleuca term, phrase or title, and may not be called Melaleuca Login. (2) This link may be called Members Login, etc., and must follow all other guidelines for lead-generating Internet and digital communications. iv) contain a link to the current official version of the Melaleuca Overview presentation in the format provided by one of Melaleuca s approved website providers to be used only for training purposes or for facilitating live Melaleuca Overview presentations. (1) This link must be username/password enabled. (2) This link must not refer to any Melaleuca term, phrase, or title, and may not be called Melaleuca Overview presentation. (3) This link may be called Presentation, Business Presentation, etc. and must follow all other guidelines for lead-generating Internet and digital communications. (4) Melaleuca reserves the right to contact any Customer or Marketing Executive at any time to confirm the meaningful contact between the Enrollee and the Enroller that is required by Policy 22. v) contain links to videos or other materials that are found on an official Melaleuca website (including any official Melaleuca blog) and that are expressly identified as approved for linking by Marketing Executives as long as the links comply with Melaleuca s policies and guidelines. c) Internet and digital communications may not (except to the extent expressly permitted in Guideline 2 b above): i) identify Melaleuca s income opportunity in any manner. ii) contain the word Melaleuca or the Leaf and Drop logo. iii) contain any of Melaleuca s trademarked words or phrases or product names. iv) contain any of Melaleuca s copyrighted materials or summaries of Melaleuca s copyrighted materials. v) describe Melaleuca s products, services, compensation plan, or business opportunity. vi) contain any statements or claims about income, or provide copies of commission checks. vii) contain any statements about Melaleuca s retention or reorder rate. viii) contain any statements about Melaleuca s awards, track record, management, affiliations, or history. ix) contain any promises or representations about placement within a Marketing Organization, that a down line or organization will be built for a new Enrollee, or that this is a business in which little effort is required. x) contain any enrollment or registration forms (whether online or in printable format). xi) request payment of money in any form. xii) request credit card or checking account information. xiii) be identifiable through any search engine by using the search term or key word melaleuca or any derivation thereof (including mela ) or any other of Melaleuca s trademarked words or phrases or the names of any Melaleuca products or services. xiv) promote or offer any other company s products, services, or business opportunities. 44 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 45

24 xv) offer for a fee any web-page-hosting services or other web-related services, Internet usage training or services, or any other training or materials of any kind. xvi) contain any banners, pop-ups or links. xvii) refer the reader to any prerecorded phone message, video recording, or other type of communication that contravenes any of Melaleuca s policies or guidelines. (References to recordings that comply with Melaleuca s policies and guidelines, including Guideline 5 below, are permitted.) xviii) contravene any state or federal law, applicable Internet service provider rules or regulations, or any other Melaleuca policy. d) Every enrollment including those involving a potential customer that is identified from a lead-generating ad, website, Social Media communication, or must include meaningful contact between the Enrollee and the Enroller in person, over the telephone, or via other live, face-to-face (or vocal) means of communication (as required by Policy 22). e) s and other digital communications directed to specific persons may be used to determine the quality of a lead, but such s and communications may only be sent in response to direct requests for more information and must comply with all of the foregoing guidelines. f) All s and other digital communications directed to specific persons to potential customers must comply with all state and federal law and with applicable Internet service provider rules, and messages must contain an opt out button prominently displayed on the first screen page of the message. 3. Internet and Digital Usage for Training and Information A Marketing Executive may use a website or a private, invitation-only Social Media group (including any private, invitation-only Facebook event or blog) for the purpose of providing business-related information and training on business building activities to his/her Melaleuca Marketing Organization. The general standard for such use of websites and private, invitation-only Social Media groups is that all content should be appropriate to a professionally operated business. The following provisions are designed to provide guidance and ensure this standard is maintained. a) Training and information websites must be 100% password protected (meaning that no portion of the site can be accessed by any means other than a password) and available for viewing only by Melaleuca Marketing Executives and Customers. i) Password protocol may be determined between Approved Provider and website owner, as to whether there is a blanket, generic password for all invited guests, or unique, individually managed usernames and passwords. ii) If a link to the Melaleuca Overview presentation is included in the home page of a training and information website, the Melaleuca Overview presentation must have a separate username and password than the rest of the site. (See 2 b iv.) b) Training and information websites and Social Media sites available to private, invitation-only groups may: i) contain Melaleuca trademarked words or phrases or product names. ii) contain truthful and accurate Melaleuca product and business stories from the Marketing Executive operating the website or group and other Marketing Executives. iii) provide information about Melaleuca corporate or Marketing Organization meeting dates and locations. iv) contain business- and product-oriented bulletin boards, provided the content is closely monitored by the Marketing Executive operating the website or group to ensure that it complies with Melaleuca s policies. v) provide information and training about business-building strategies in a manner consistent with Melaleuca s policies. vi) recognize the achievements and advancements of Marketing Executives within the organization of the Marketing Executive operating the website or group. vii) contain one or more links to an official Melaleuca website. viii) contain a current official version of the Melaleuca Overview presentation in the format provided by one of Melaleuca s approved website providers to be used only for training purposes or for facilitating live Melaleuca Overview presentations. ix) contain statements about income that comply with Policy 32. x) facilitate an invitation-only event that complies with Melaleuca s policies, as long as any password and other information necessary to participate in the event is forwarded to Melaleuca s Policy Administration Department (via to compliance@melaleuca.com) before the event. c) Training and information websites and Social Media sites available to private, invitation-only groups may not: i) be used for the purpose of soliciting new customers or Marketing Executives. ii) contain any promises or representations about placement within a Marketing Organization, that a down line or organization will be built for a Marketing Executive, or that this is a business in which little effort is required. iii) contain any enrollment or registration forms, except that the website may contain a link to Melaleuca s Customer Membership Agreement and Independent Marketing Executive Agreement forms contained on an official Melaleuca website. iv) promote or offer any other company s products, services, or business opportunities. v) offer any materials or services for a fee, including but not limited to any web page hosting services or other web-related services, Internet usage training or services, lead generation services, or training services or materials. vi) contain any banners or pop-ups. vii) offer for sale any Melaleuca logo gear; however, they may offer for sale the logo gear of a particular Marketing Organization provided it is sold at actual cost. 4. Sale of Products, Materials, or Income Opportunity on the Internet Marketing Executives and Customers may not offer for sale Melaleuca products, materials, or the income opportunity via the Internet (including ebay). Melaleuca shall have the right to enjoin any such offers by legal action and to recover its legal fees and costs in connection with any such legal action. Melaleuca may audit Facebook groups and other Social Media groups to ensure compliance with these policies. 5. Prerecorded Audio or Video Messages Marketing Executives may create, publish, produce, use, and/or maintain an audio or video recording which has the purpose or effect of creating interest in, introducing, or presenting Melaleuca, its products, or its income opportunity as long as neither the trademarked name Melaleuca nor Melaleuca s trademarked product names are expressly referenced or mentioned, and as long as the recording complies with Melaleuca s policies and guidelines. An example of activity permitted under this Guideline would be a Marketing Executive taking a digital recording of the Marketing Executive s team talking about how excited they are to work with a company so committed to wellness, and then posting this video to the Marketing Executive s Facebook wall. Another example would be a Marketing Executive creating a podcast on leadership and putting a link to that podcast on the Internet. Prerecorded training messages that are available only to Marketing Executives are protected by pass code and comply in all respects with Melaleuca s policies and guidelines are permissible. Any use of a prerecorded Melaleuca Overview presentation is strictly prohibited, except as expressly permitted elsewhere in these guidelines for training purposes. Any prerecorded video must incorporate training tips and commentary that prevent the video from being used for the purpose of ing new customers. 6. Violations A Marketing Executive s violation of Melaleuca s Guidelines on Internet and Digital Usage or Statement of Policies may result in the forfeiture of commissions and bonuses, fines, or termination of the Marketing Executive s Independent Marketing Executive Agreement. Melaleuca Guidelines for Using the Internet, Social Media, and Electronic Communications Relationships Social media is a wonderful way to connect with and stay in contact with friends and family. While there are many philosophies about how to use social media to build a business or to help promote a product, we believe the most important thing you can do as a Melaleuca Marketing Executive on social media is build relationships. Melaleuca thrives on relationships! Activities that build relationships are likely to be good for your business. At the same time, those things that harm your relationships will also be bad for your business. Melaleuca is a warm-market company built on genuine personal relationships. Your long-term success as a Marketing Executive is maximized and our mission of enhancing lives is well served when you use your electronic communications to develop true friends, many of whom will naturally become interested in Melaleuca as they get to know you. On the other hand, intrusive communications to a cold market (such as promotions of a business opportunity to a social media group organized for other purposes) have the opposite effect: the person making such communications is often shunned, the reputation of the company is harmed, and the group members become less willing to listen to others who may try to reintroduce the products or the opportunity in the future. In the same vein, all electronic communications related to Melaleuca in any way must be conservative, professional, and product-oriented. Communications should never contain hype, as hype is inconsistent with Melaleuca s mission and culture and tends to scare off the best and most-professional potential business builders. You should ensure that all of your communications are in good taste, recognizing that every public communication you make impacts all Marketing Executives and their reputation as a whole. When it comes to building your business, there are ways to use social media correctly and there are certainly ways to use social media incorrectly. Constructive use of the Internet (including social media sites) and other means of electronic communication to identify and work with potential Melaleuca Customers and Marketing Executives can be a rewarding way to build your Melaleuca business. Unhealthy online practices, however, risk causing significant damage to your and others Melaleuca businesses. These guidelines are designed to help you get the most out of the best practices in this area, while protecting all Melaleuca businesses against the dangers of misuse. Melaleuca has established several policies to give guidance on how to use social media to promote your Melaleuca business. Much of Melaleuca s social media policy is based on the premise that we do not want to burn the fields. Burning the fields means injecting Melaleuca s name or the Melaleuca opportunity into a public forum to such a degree that people (1) assume incorrectly that they have learned all they need to about Melaleuca from this brief exposure, or (2) grow tired of hearing about Melaleuca. For the last 32 years, Melaleuca has been careful to make sure that overzealous Marketing Executives do not burn the fields. That is why the message of Melaleuca is as fresh today as it was in Indeed, because Melaleuca has avoided burning the fields, it is much more intriguing today that it was in the beginning. We want Melaleuca s message and the Melaleuca story to remain fresh and vibrant. Once a person has heard any story for the tenth time or even the second time the story is no longer fresh. Therefore, when someone learns of the Melaleuca story, they deserve to hear it in its entirety, delivered by the most professional and compelling presenter possible. Hearing or seeing the word Melaleuca several times a day or even several times a week serves to distort the message and prejudices people into believing that they already know all about it. The ideal situation would be for someone to be approached for the first time about Melaleuca in a person-to-person setting. And the ideal response upon asking someone if they would entertain seeing a Melaleuca Overview would be Melawhat? I ve never heard of that company! Melaleuca s Statement of Policies (accessible at Malaysia.Melaleuca.com / Sg.Melaleuca.com> Business Center > Reports & Tools) governs everything you do in your role as a marketing Executive, including your online activities. These guidelines supplement those Policies and cover electronic communications relating to Melaleuca by a Marketing Executive to a person or group of people who are not Marketing Executives or Members. That includes, but is not limited to, communications via s; tests; social networking sites (LinkedIn, Facebook, Instagram); microblogging sites (Twitter, Pinterest); video and photo-sharing websites (YouTube, Flickr, Periscope); blogs (including company and personal blogs); and online encyclopedias (Wikipedia). Practices consistent with these Guidelines can provide you with many opportunities to share a Melaleuca Overview and have the personal contact required under Policy 22 before enrolling a Marketing Executive or Preferred Member. Private/Closed Group Posts The rules for what can be posted in private groups are different from what can be posted in a public forum. If all members of a private/closed group are Melaleuca Customers or Melaleuca Marketing Executives, you do not have to worry about burning the fields because everyone already knows about Melaleuca. Therefore, messages containing the company name, business information, etc. are allowed. We assume such sites are for purposes of either training, celebrating, or networking with other Melaleuca Customers/Marketing Executives. As with any post, all information posted should be truthful and in good taste. Private Messages Compared to a private message, a phone call is a much more effective way of making personal contact. Your success rate will be much higher with a phone call. However, if it is impossible to reach someone by phone, you can send a private message to someone you know. Likewise, when someone expresses interest in something relating to Melaleuca that you have shared publicly online, you should contact that person privately to follow-up. Your private message can reference Melaleuca by name, reference Melaleuca s business opportunity, or extend an invitation to talk in person, over the telephone, or via other live means of communication that is face-to-face or vocal (per Policy 22). Your private messages should mirror your real-world relationships. Be genuine. Strive to develop real relationships through your private messages. And just as you wouldn t approach a stranger on the street and immediately start introducing Melaleuca products or the business opportunity, your first private message to someone cannot include a call to action, an invitation, or anything about a business opportunity. Rather, use your first message to develop a genuine relationship. As the recipient responds and engages in the conversation, you can begin to foster the relationship, and when appropriate, you can extend an invitation. In all cases, private messages should be one at a time. Sending a dozen private messages in a single day to 12 different individuals, for example, has close to the same effect as a public post. You can t give that many individuals the personal attention that they deserve. Public Forum Posts Melaleuca has fundamentally different policies for public forum sites, such as Facebook Instagram, Twitter, etc. than it does for closed sites. We have watched carefully what has happened in some companies that run rampant without any policies regarding posting on public social media forums. Frankly, it s distasteful to many people who simply want to use social media to have relationships with others and don t want to be continually pestered with product or business opportunity advertisements. We fully realize that multilevel marketing ( MLM ) companies use social media to advertise products and pitch their business opportunity all the time. But Melaleuca is not an MLM company. And the kinds of social media tactics engaged in by many MLM companies have never been proven to be an effective way to build a business. Those who engage in such tactics are often unfriended or at least unfollowed by even their best friends. People who incessantly post or reference their business opportunity on social media pages not only do damage to relationships, they also do damage to the company, i.e., they burn the fields. We believe that social media should be used to build honest, worthwhile, and meaningful relationships. Regardless of the many gurus who tout social media as the only way to build, we have seen very few companies or individuals be successful with this methodology. And we have seen many companies ruined by the same process. We do not believe that using social media is a good way to build a business. But we do believe that social media is a wonderful way to build true, meaningful relationships that can later turn into business relationships. Our policies are built around those concepts. 46 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 47

25 Best Practices Over the years, some have sought shortcuts in building their businesses. They take a passive approach and pass out business cards, post flyers, buy ads, distribute tapes or CDs, and then sit back and wait for the phone to ring. But the phone doesn t ring and the fields burn! The same principle applies to social media. The only effective way to build a business it to proactively build relationships and approach people one-on-one. For example, when someone posts a picture at a family event and says I m so thankful to our company that allows me to work from home so I never miss these magic moments, the reader feels like the post is promoting a business especially if there are multiple posts on your feed that reference my business or our company. A more effective post in the same scenario would be to simply say you are enjoying more time with family and appreciating the magic moments, with no reference to the business or company. Then, when you privately approach your friends and contacts, they ll be curious. They ve seen how you re enjoying life and are probably already wondering how you do it. But if you ve already posted about your company or business, as soon as you approach them they ll think you re trying to sell them something. To help you put the principles described above into practice, we have developed list of things you can do and a list of things you cannot do. What You Can Do 1. You can join online groups, clubs, and organizations in which you are truly interested, to enlarge your circle of friends and make contacts with people who have interests similar to your own and thereby expand your warm market. 2. On any social media site, group, or other website that specifically identifies its purpose as promoting or advertising business, financial or work-from-home opportunities (and only on such sites), where everyone in the group has voluntarily opted into the group, you can make posts regarding Melaleuca s business opportunity and have a call to action, but you cannot mention Melaleuca s name specifically. It is important to note that although permitted, these posts are not encouraged and have not proven to be effective. 3. You can publicly share, endorse, or tell a product experience about any one product individually. You may also make a single endorsement about a product line or group of products. These stories should be brief, concise, and include your own or another Customers actual, personal experiences with Melaleuca products that are positive and typical of the experiences of others with the products. You can do so through written words, photos, or videos less than 1-minute long, and can mention the specific brand names of Melaleuca products such as Renew or Access. Keep in mind that any experiences you share must be consistent with Policy 33. Examples: Show a group of Melaleuca products under your kitchen sink and say, My home has never been safer! I just had a great workout! Thank goodness for the Access Bar! If the topic of dry skin comes up in a public forum, you could post a comment based on personal experience: Renew is the best product we have ever used for our children when it comes to skin issues. 4. We encourage you to talk about your quality of life in a tasteful way that will make friends, and to do everything that people on social media do to build meaningful relationships. You should do this without explicitly tying your experiences to Melaleuca. You can post pictures of you and your car, or you in your home, or you on vacation as long as you don t exaggerate and those pictures are in good taste and don t appear that you are promising someone else a lavish lifestyle. For example, your car, house, etc. should appear only incidentally, not as the focus of the post. (There are ways to demonstrate that you are doing well financially, in a manner that will cause healthy curiosity as to what you do for a living. But when you flaunt it, you will turn many people off.) 5. Talk about and show pictures of a Melaleuca event, like Convention, to celebrate the recognition received by members of your team as long as: You do not show anyone presenting to a group You do not share slides or training materials Example Spent an amazing weekend at Convention, meeting amazing people and learning from the best. 6. You can defend Melaleuca when it is criticized or attacked online and, in doing so, feel free to mention the name Melaleuca when (and only when) responding to statements that already mention Melaleuca. We encourage you to quickly post a response correcting the record whenever you encounter any negative statements about Melaleuca, our people, or our products anywhere on the Internet including blogs, social networking sites such as Facebook and LinkedIn, and microblogging sites such as Twitter. This can be done by offsetting the negative comments with positive personal experiences regarding our products, our business model, or Melaleuca in general. What you Can t Do 1. We don t want social media sites to be plastered with the word Melaleuca or messages about Melaleuca. Therefore, we have a strict requirement that Marketing Executives not mention the word Melaleuca (except as described in Point 6 of What You Can Do ). That might seem a little strict, but without such a policy it would be easy to burn the fields in a short amount of time. 2. Do not share any posts from Melaleuca s social media platforms because they feature the name Melaleuca. 3. Do not post content that is identifiable through any search engine by using the search term or keyword Melaleuca or any derivation thereof (including mela ) or any other of Melaleuca s trademarked words or phrases. Do not share multiple points that describe Melaleuca. 4. Consistent with our teaching to avoid burning the fields, Posting multiple times a day is strongly discouraged. Sometimes a post by itself may be within guidelines, but may not be okay when seen in contest with other posts. 5. Do not mention or describe Melaleuca s business opportunity or its business (a) publicly online (except on a Melaleuca-approved website specifically devoted to the purpose of identifying such opportunities), (b) on websites or in groups that facilitate the sharing of parenting ideas, safe household products, or anything else besides business opportunities even if others sometimes use the forum for sharing business opportunities, or (c) in unsolicited communications to people you do not already know personally (including s, text messages, private messages, etc.) Do Not: Make any public statements or claims about Melaleuca s compensation plan, services, awards, track record, management, affiliations, history, retention rate, or reorder rate Make any public mention or post copies of checks from Melaleuca, Inc. 6. All invitations must be sent individually, one at a time, and only to contacts you personally know or have built some type of relationship with. See Private Messages above. Examples: Do not extend any public invitation to a Melaleuca Overview using social media, a public website, microblog, etc. You cannot send out group invitations to meetings, websites, Overview presentations, etc., to those who are not yet Melaleuca Preferred Members or Marketing Executives. 7. Do not make any public post or comment that includes a direct, indirect, or implied call to action. Examples: Call me! Ask me how! Private message me! I can solve your financial problems! I m here to help! Click below for more information Come join our training at 8 p.m. tomorrow! Comment below 8. When sharing accounts of your own and other Customer s actual personal experiences with Melaleuca products, do not: Make any claims that Melaleuca s products prevent or treat medical conditions or diseases (except for any claims specifically asserted by Melaleuca in its official publications), per Policy 33 Embellish any experience Give information about more than one product at a time; otherwise it is a product training Any product trainings must be password protected and accessible only to active Melaleuca Customers and/or Marketing Executives in a closed social media group comprised completely of active Melaleuca Customers or Marketing Executives (i.e., no prospective Customers). 9. Do not give too much information in any post. Otherwise, it can appear to be a brief Overview or product training. For the same reasons, do not post any video that is directly or indirectly related to Melaleuca that is more than one minute long. 10. Do not publicly state your income as it relates to how much money you earn from Melaleuca. That can be done in private only if accompanied by Melaleuca s annual income statistics. Most people consider it extremely poor taste to share income in public. 11. Do not show or talk about having a lavish lifestyle (e.g., refer to big houses, expensive boats, luxury cars, exotic vacations, etc.) such that it appears that you are either touting or promising that kind of lifestyle. This is not appropriate in any setting. 12. You should never suggest that anyone should quit their job to start a Melaleuca business. Stating or suggesting that people quit their job to join a business opportunity is a red flag that you are operating a pyramid scheme. Since our beginning over 32 years ago, Melaleuca has been adamant about never suggesting that someone quit their job to build a Melaleuca business. To do so would be irresponsible, even in private. You should never make references to firing your boss, etc. Doing so might imply that you re suggesting that people quit their job. It has always been Melaleuca s policy that no one should ever consider quitting their job to build a Melaleuca business until their residual income from Melaleuca is at least three times what they are making with their current full-time job. Until then, it only makes sense to add the Melaleuca income to the regular income. Most people with a Melaleuca business use their Melaleuca business to supplement their income. Even for those who put serious time and effort into building a Melaleuca business, it normally takes years to build the business to the point that anyone should ever consider leaving their full-time job to live only on their Melaleuca income. 13. Do not like or share any post that is out of compliance with Melaleuca social media policy. If you see any violation, you must report it to MYcompliance@melaleuca. com / Singapore@melaleuca.com. 14. Do not post any material containing Melaleuca s copyrighted Leaf and Drop logo or its other copyrighted materials (unless the copyrighted material is contained [1] only incidentally in a picture or video [2] in a closed group.) 15. Do not share photos or videos from Melaleuca events that show anyone presenting to a group. Do not share slides or any training from the event. 16. Do not offer for a fee any services, trainings, lead-generation, systems, apps, or any other training materials. Melaleuca discourages the implementation of websites. Fees collected by approved website vendors for any service cannot be shared with any Marketing Executive. 17. Do not refer to any prerecorded phone message, video recording, or other type of communication that violates any of these Guidelines or any other Melaleuca policy. All recordings must also be password protected. 18. Do not violate any state or federal law, applicable Internet service provider or website policies, or any Melaleuca policy. 19. Marketing Executives and Customers may not offer for sale Melaleuca products, materials or the income opportunity via the Internet (including ebay). Prerecorded Overviews Are not allowed to be posted in any social media platform. Violations Melaleuca may audit Marketing Executives online and electronic communications to ensure compliance with these guidelines. A Marketing Executive s violation of the guidelines may result in the forfeiture of commissions and bonuses, fines, or termination of the Marketing Executive s Independent Marketing Executive Agreement. Melaleuca reserves the right to withhold advancement bonuses or other commissions from any business where it is perceived that a violation helped cause the advancement, even if the violations are from others in the organization. You have the responsibility to monitor social media activity, report violations, and ensure correct principles and policies are taught and understood throughout your entire organization. The Before-You-Post Checklist Remember, social media should only be used to build meaningful relationships. It s okay to create curiosity, but it s important to be subtle. If your goal with this post is to have someone message you or comment wanting to know more, then it s the wrong approach. If your plan is to create genuine curiosity, foster relationships, and proactively approach your contacts when the time is right, then you re on the right track. Those who have effective social media strategies understand the importance of nuance what you don t say and how you don t say it. Before you post, as yourself 1. Is the post tasteful and consistent with what friends would normally post? Is it truthful and free of any exaggerated claims? 2. Will the post help create genuine curiosity and support building relationships to expand your warm market? If yes, use the following checklist: Yes No Is there any way for a person to tell you are with Melaleuca? (including references to the compensation plan, reorder rate, services, awards, track record, etc.) Are you representing a lavish lifestyle? (e.g. big houses, cars, boats, luxury travel, etc.) Is there any reference to your income or how much others can make including any suggestions about quitting a job? Does your post have a direct or implied request for a response? (e.g. message me, click here, I m here to help) Does your post reference more than one product? Is the video longer than one minute? If at an event, does the post show anyone presenting to a group? Have you already posted today? If you ve answered no to each question on the checklist. Your post may be within the guidelines and principles taught in this document. If in doubt, don t post. If you have any questions, don t hesitate to us at MYcompliance@melaleuca.com / Singapore@melaleuca.com. We will get back to you right away. 48 WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 49

26 Melaleuca presents 2013 ANNUAL 12% business builder status Developmental Status Only 1 out of 9 customers (12%) will decide to start their own Melaleuca business and eventually achieve Director status or above. Directors have made a substantial effort (probably spent at least 50 hours) in developing at least eight Melaleuca customers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years. But at some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleuca customers. INCOME STATISTICS annual income personal customers total active customers high low average minimum average minimum average time to achieve status 1 S$46,164/ S$275/ S$3,159/ DIRECTOR / 2 (85.5%) RM98,483 RM586 RM6, Mo. 120 Mo. 6 Mo. shortest longest average Initial Leadership Status 64% customers 24% customer referral status Leaders at these statuses have made a more serious effort at building a Melaleuca business. Those who have reached these leadership statuses have not only invested enough time to refer several customers, but they have also helped some of those customers start a business and become Marketing Executives. Those Marketing Executives have, in turn, referred additional customers who purchase Melaleuca products each month. Commissions are paid based on the development of customers and the development of leaders who help others reach their goals. annual income personal customers total active customers time to achieve status 1 high low average minimum average minimum average shortest longest average DIRECTOR 3 (5.7%) DIRECTOR 4 / 5 (2.8%) S$49,139/ RM104,829 S$55,376/ RM118,134 S$4,170/ RM8,896 S$7,944/ RM16,947 S$11,846/ RM25,270 S$19,673/ RM41, Mo. 120 Mo. 12 Mo Mo. 120 Mo. 17 Mo. Customers The majority (64%) of those who buy Melaleuca products each month are strictly customers. They re not interested in pursuing the Melaleuca financial opportunity. They just love Melaleuca products. Only a few of them will ever decide to build a Melaleuca business. 10.8% product advocate % product advocate % product advocate percent at this status PRODUCT ADVOCATE PRODUCT ADVOCATE 2 Customer Referrals Status 24% of all Melaleuca customers have referred at least one customer but fewer than eight customers. As those customers purchase products directly from Melaleuca, those who referred them receive a small commission. These households are not necessarily interested in the financial opportunity. Their relationship with Melaleuca is primarily because they love Melaleuca products. Their status is determined by how many customers they have referred. A Product Advocate 1 has at least one customer. A Product Advocate 2 has referred at least two customers and a Product Advocate 3 has referred at least four customers. While these individuals may not be considered serious business builders, their customers (like the vast majority of Melaleuca customers) come from word-of-mouth referrals. Therefore, the overall contribution of these individuals is significant. annual income personal customers total active customers time to achieve status high low average minimum average minimum average shortest longest average 1 S$4,278/ RM9,126 S$5,132/ RM10,947 S$36/ RM77 S$36/ RM77 S$131/ RM278 S$356/ RM Mo. 120 Mo. 4 Mo Mo. 120 Mo. 5 Mo. DIRECTOR 6 / 7 (1.2%) DIRECTOR 8 / 9 (0.7%) Advanced Leadership Status Those Marketing Executives who reach Senior or Executive Director status have shown substantial interest and dedication in building a Melaleuca business. While they may not work their business full-time, it is essential that they invest some time each month nurturing, training, and helping those in their marketing organization. Melaleuca advocates that Marketing Executives keep their full-time job and work their Melaleuca business in their spare time. However, some Executive Directors at the higher income levels do work their business close to full-time. Melaleuca strongly advocates that Marketing Executives do not quit their full-time job until their Melaleuca income far surpasses the income they receive from their full-time employer. Rather, they should add their Melaleuca income to their regular income, thereby making a substantial difference in their family finances. SENIOR DIRECTOR (2.6%) 2 EXECUTIVE DIRECTOR (1.4%) 3 CORPORATE DIRECTOR (LESS THAN 0.1%) 4 S$86,168/ RM183,824 S$115,271/ RM245,910 annual income personal customers high low average minimum average minimum average S$504,722/ RM1,076,739 S$945,683/ RM2,017,456 S$3,550,053/ RM7,573,446 S$14,930/ RM31,850 S$21,845/ RM46,602 S$37,629/ RM80,275 S$94,425/ RM201,440 S$1,063,968/ RM2,269,798 S$31,116/ RM66,381 S$43,862/ RM93,571 S$91,935/ RM196,128 S$235,251/ RM501,869 S$1,740,101/ RM3,712,214 1 Mo. 1 Mo. 120 Mo. 120 Mo. 21 Mo. 28 Mo. total active customers time to achieve status 1 shortest longest average ,108 1 Mo. 120 Mo. 21 Mo ,072 2,830 4 Mo. 120 Mo. 31 Mo ,389 13, Mo. 120 Mo. 74 Mo. 5 PRODUCT ADVOCATE 3 S$9,563/ RM20,400 S$41/ RM86 S$825/ RM1, Mo. 120 Mo. 5 Mo. The above annual income statistics include all North American Melaleuca Marketing Executives who were active during all 12 months of the period ending December 2013 and performed the minimum activity required at each status. The incomes stated include all commissions and bonuses actually paid during the period. For the purpose of these statistics, a Marketing Executive s leadership or developmental status was calculated by taking the highest status achieved and maintained for at least seven consecutive months. The information on this page is not necessarily representative of what any individual Marketing Executive will earn with this program. Any representation or guarantee of specific earnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a Marketing Executive exercises those qualities. 1 Includes all active Marketing Executives joining Melaleuca within the past 10 years. 2 Includes statistics for Senior Director through Senior Director 9. 4 Includes statistics for Corporate Director and higher. 5 Corporate Director average time includes all Corporate Directors in the statistics. 3 Includes statistics for Executive Director through Executive Director WELCOME TO MELALEUCA BUILDING YOUR MELALEUCA BUSINESS 51

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