Keith
A good question, and one that is asked frequently. There are several
things to understand here:
- Two companies with TTO products now is rather like 2 companies with
aloe vera companies 25 years ago. It still would have been a
revolutionary product, even with 2 companies marketing it -- and now
*hundreds* (thousands?) of companies successfully market aloe-based
products. I see no concern about Espial and Melaleuca marketing
similar products.
- TTO is hardly the only thing the companies have. Espial, for example,
has nutritional and weight-control products, skin-care products
(which have a bit of TTO in them, but only as one of many herbal &
botanical ingredients), and citrus-based home-care products.
I'm not familiar with Melaleuca's entire line, but I know they have
non-TTO products.
- I'm not expert in all of Melaleuca's products. I know many thousands
of people love 'em. I have heard from some customers that they don't
care for the smell/taste of Melaleuca products, but that's definitely
a minority. (I haven't heard similar complaints about Espial products,
including from those same former Melaleuca customers.) There are also
differences in terms of dyes, animal testing, etc., which make me
prefer Espial.
- Both companies are, in my opinion, excellent. Melaleuca has a great
track record, and has been very successful; Espial is, according to
our president (who was formerly the VP of sales & training at Melaleuca),
growing faster than Melaleuca did at the same point in its growth.
Both companies have advantages. I think Espial is better; not
surprisingly, some fine Melaleuca folks I've talked to think Melaleuca
is better. :-)
I personally think Melaleuca is one of the best companies out there,
in terms of excellent product line and a *very* well-designed bonus plan.
I also think our president drew on some of Melaleuca's great ideas
and improved upon them when he designed Espial. I very much like the
people-oriented aspects of Espial, which is similar to Melaleuca's
philosophy, but I believe Espial has even more emphasis on helping
people develop to their fullest potential. It's stated right in our
company purpose, and it's demonstrated at all levels of the company.
I enjoy the challenge and opportunity of a young, rapidly-growing company.
My wife and I have achieved the top position in Espial, and there are
only 16 other people who have reached that goal. There are, I believe,
hundreds of people who have reached the equivalent level in Melaleuca.
I like having the kind of impact I can have as one of 17, instead of
one of hundreds. I also like the vast untapped territories available
to us -- even more so than for Melaleuca.
Both companies are great. You can choose which is best for you.
I think you can guess which I prefer. :-)
Gary
Keith,
Your right, the tea tree oil is the same in both products (however I'm not
sure they are of the same quality). Melaleuca first brought the tea tree oil
to America (as far as I know) and began their company in 1985. One of there
earlier vice presidents was LeRoy Cox who in 1989 or thereabouts left the
company and formed Espial. He took with him many of Melaleuca's ideas and
concepts. He has changed some aspects on the compensation and marketing
plans. The products are similar, but there are some differences with the
product lines. As far as what makes one company better then the other, I
think that is a personal consideration. I have found Melaleuca to meet my
standards, and they are extreamly people oriented, they have a strong
commitment to helping people succeed both personally and in business. Both
companies seem to have a strong commitment to our environment. Some other
observations and comparisons I have made:
(As a marketing executive with Melaleuca, I have not used any Espial
products, and I'm sure I do not know everything about their company, and
since I am a marketing executive with Melaleuca I'm sure I'm prejudice (:->)
Now I'm sure I don't do Espial justice but don't worry someone will ( Gary).
================================================================================
Melaleuca - Espial Comparison Updated 06/93
================================================================================
Melaleuca (Mela-lu-ka):
Founded: September 1985
Founder(s): Frank and Roger Ball
President: Frank Vandersloot
Headquartered: Idaho Falls, Idaho
Number of Distributors (1992): ~ 100,000
Gross Sales (1992): ~ $200,000,000.00
Product Lines: Nutrition, Pharmicuticals, Pet Care, Personal Care,
Home Hygiene
Comments: The original line of products was based on an essential oil
from the Australian Tea Tree (Melaleuca Alternifolia), hence the name
Melaleuca. This natural ingredient is a natural antiseptic, fungicide,
solvent, and pain-killer. Since then, the dynamic product line has
expanded in several areas of nutrition, health, personal, pet care, and
home hygiene, with products based on the benefits of a wide variety
of natural ingredients. Melaleuca is a strong believer in
'environmentally-safe' and friendly products. They have been listed
in INC, magazine for the last three years (90-92) as one of America's
fastest growth companies. When Melaleuca began in 1985 it established
a founding principle "To enhance the lives of those we touch" through
superior products and a financial opportunity without risk.
Espial :
Founded: 1989
Founder(s): LeRoy Cox
President: LeRoy Cox
Headquarters: Englewood, Colorado
Number of Distributors (1992): ~ 10,000
Gross Sales (1992): Not Published
Product Lines: Nutrition, Personal Care, Home Hygiene
Comments: Espial is somewhat of a spinoff of Melaleuca as LeRoy Cox
was a VP in Melaleuca until resigning to begin his own company in 1989.
Espial offers nutrition and weight control, personal care based upon the
Australian Tea Tree Oil, skin care, and 'environmentally-safe' home
cleaning line of products. Espial is a very fast growing company
within the industry of network marketing.
Products:
Melaleuca Espial
--------- ------
Home Hygiene - 10 products based upon 8 products based upon citrus
melaleuca oil and other oil.
natural ingredients.
Personal Care - 30+ products based upon 20 products based upon
melaleuca oil and other melaleuca oil.
natural ingredients.
Nutrition - Multi-Vitamin based upon Multi-Vitamin rights for
a base of pure, natural Nutra Cleanse. (Some consider
Melaleuca leaf with an this more then just a multi-
exclusive Fructose vitamin.)
Compounding process.
Pharmaceutical- 10 products based upon
melaleuca oil and other
natural ingredients.
Pet Care - 3 New products based upon
all natural ingredients.
Weight Control- Liquid shake diet system
including a FasTab food
enzyme.
Business Plan:
Melaleuca Espial
--------- ------
Enrollment Cost - $19.00 $25.00
Bonus Paid - 5 x 7 matrix 4 Manager Levels deep.
Sales Commission- 37% 40%
Sales Bonus - 25% on all personal Base
Points (BP) over 100 BP
monthly.
Product Intro - 25% up to 100 BP 25% Consultant level and
above
Group Bonus - 7% On BP up to 100 of all 7% of your personal enrolled
people in your organization. at the Consultant level.
Development Levels -
Executive I 1 person Associate < $125 Personal
enrolled/place under you. Purchase Volume (PPV)
(No bonus available at this
Executive II 2 personal level.)
enrolled plus 100 Cumulative
BP of your organization.
Executive III 4 personal Consultant > $125 PPV
enrolled plus 500 Cumulative
BP of your organization.
Leadership Levels -
Director 8 personal enrolled Manager 5 personal Consultants,
plus 1000 Cumulative BP of $250 PPV plus $1000 GPV.
your organization.
7% plus 14% on BP to 100 of 7% of GPV to 4th Manager level
each personal enrollee 14% of personal enrollee PPV.
in your organization with
8-11 personal enrolled.
7% plus 17% on BP to 100
of each personal enrollee
in your organization with
12-15 personal enrolled.
7% plus 20% on BP to 100
of each personal enrollee
in your organization with
16+ personal enrolled.
Director II - V 1 - 4
personal enrolled who
are a Director.
Senior Director 10 enrolled Supervisor 5 personal enrolled
who are Directors, 5 of Managers. Share in 4% of the
which are personal enrolled. companies gross income. Company
Share 1% of the total pays a variable car allowance
company BP with other Senior of $300 - $1000 per month.
Directors. Company pays $400
per month toward your new
car. Allowed to expand your
matrix to 6 executives on
your first level and
continue expansion as you
help develop Directors
in your organization.
Executive Director 20 Director 10 personal enrolled
enrolled who are Directors, Managers. Share in 7% of the
10 of which are personal companies gross income. Company
enrolled. Share 1% of the pays a variable care allowance
company BP with other of $300 - $1000 per month.
Executive Directors plus
share 1% of the total
company BP with other
Senior Directors. Company
pays $800 per month for
your new car. Receive a
quarterly bonus of 1% of
the average of the entire
group volume of your
personal enrolled.
Purchase Required -
29 BP to Executive III $29.00 to Consultant
75 BP Director and above. $75.00 Manager and above.
Training:
Melaleuca Espial
--------- ------
Dynamic Leadership Seminars, Mike Zundel Leadership Dynamics, LeRoy Cox
Systems for Success Workshops, Sherle Adams 'Success Counsellors' trained by
Fastforward Workshops the company.
Success in Action
Product/Marketing Orientation
Melagram, Monthly Magazine
Regards,
Dennis
################################################################################
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/ / /__/ /\ / /\ / / /__ \/ / / / /__/ /__
/__/ /__ / \/ / \/ / __/ / /_/_ / /__ __/
================================================================================
e-mail: den...@hpbs2979.boi.hp.com | s-mail: 10201 W. Molly Ct.
Phone: (H)208-327-0121 (W)208-396-4383| Boise, Idaho 83709
================================================================================
"If you always do what you've always |"Success comes to those who dare to
done, you'll always get what you've | act upon their dreams!"
always had!" |
################################################################################
It does make me wonder why a high level person leaves any company to found a competitor if the original company is doing well. It reminds me too much of things like church and business splits. That may not be fair, educate me if that is a wrong impression.
It does seem many people are happy with it.
=======
Regarding being a part of the "elite" mentioned earlier, for some that may be great, but I would much rather have more mature support and a proven track record, if all other things are equal.
Brad Andrews
rb...@cas.org
All opinions are strictly mine
Reading through his comparison, I realized I forgot one of the biggest
differences between Espial and Melaleuca: the executive bonuses!
The top two major positions in Melaleuca (formerly Ruby and Diamond,
now Sr Director and Ex Director) share in 1% and 1% of the company's
volume. The top two positions in Espial (Supervisor and Director)
share in 4% and 7% of the company's volume!
Given that the dynamics of the two companies, and the qualifications
for the equivalent positions, are nearly identical, this is a very
strong indicator that the executive bonuses in Espial will be 4 and 7
times as large as in Melaleuca. (Espial's executive bonuses are still
growing, and have not effectively stabilized as I suspect Melaleuca's have.)
In fact, based on Melaleuca's figures, I believe the minimum Director
bonuses in Espial are already larger than the minimum Ex Dir bonuses in
Melaleuca, and the maximum Director bonuses are about the same as the
largest Ex Dir bonuses! I fully expect that within 3-4 years, when
Espial's executive bonuses have stabilized, the *minimum* Espial bonus
will be nearly as large as the *maximum* Melaleuca bonus, and the maximum
Espial bonus will be 5-10 times larger!
For anyone who is serious about building a retirement-level income,
I think this is a clear advantage for Espial.
Gary
This has come up before. There are justifiable reasons for someone
to split off and form another company. Take Apple and HP, for example.
HP is doing fairly well. :-) But Woz didn't find a receptive ear
for his ideas at HP, and the result was Apple. I think most people
would agree this was a net win for the industry overall. Woz wasn't
a high level person at HP, of course, but the concept still applies.
: Regarding being a part of the "elite" mentioned earlier, for some
: that may be great, but I would much rather have more mature support
: and a proven track record, if all other things are equal.
If all other things are equal, maybe. If that was the *only* difference
between the two, many people would choose based solely on those criteria.
Of course, if that is your major concern, wouldn't Amway be a better choice?
Different people have different preferences. That's what makes
horse races. :-)
Gary
But HP wasn't open to the "new" direction, that was a problem.
(Perhaps Espial would say that about Melaleuca, I don't know :)
>
> : Regarding being a part of the "elite" mentioned earlier, for some
> : that may be great, but I would much rather have more mature support
> : and a proven track record, if all other things are equal.
>
> If all other things are equal, maybe. If that was the *only* difference
> between the two, many people would choose based solely on those criteria.
> Of course, if that is your major concern, wouldn't Amway be a better choice?
>
> Different people have different preferences. That's what makes
> horse races. :-)
>
> Gary
I don't choose Amway because I personally don't feel it is headed the right directions. I do think Melaleuca is, obviously. :-)
======
Regarding the high upper level bonuses mentioned elsewhere, that money is coming from somewhere. Either company management is making less (not bad), the lower people are ultimately making less (bad), the products are more expensive (bad), or R&D is being cut (not good).
Have I missed any possibilities?
NOTE: I am just asking and trying to carry out an open discussion. :)
Yes: the business plan, while similar, is not identical. Roughly
the same percentage is distributed differently.
I think this is probably getting deeper than most people on the list
are really interested in, but for those who want the gory details:
I'm not completely familiar with Melaleuca's recent changes, but I think
things are still reasonably close to the old model I understood:
7 levels of 7%, plus 1% for Ruby and 1% for Diamond. Total = 51%.
(In reality they don't actually pay that much, but this is the simple
explanation.) Espial has 5 levels of 7%, plus 7% for the sponsor,
plus 4% for Supervisor and 7% for Director. Total = 53%.
At first glance you might think this results in less for the "lower level"
people (5 levels instead of 7), but in practice I wouldn't agree.
Espial pays 5 levels of *Manager*, plus the sponsor. There can be
an unlimited number of lower-than-Manager people between Managers,
so there is no hard limit on how deep one can be paid. My upline
has been paid as deep as 20 levels.
Add to that the fact that Espial does not limit the width of your
organization, and I believe you can (in practice) grow a larger group
than in Melaleuca. You don't have active legs "squirting" out the bottom
of your matrix as fast as when each person can only have 5 on their frontline.
While M's matrix can (in theory) hold 98,000 people, in reality the largest
group that has EVER been built in the company is about 5000. And that
person is a Diamond (Ex Dir), which means he has at least 10 people on his
frontline, which means he has room for 196,000 people -- and he has only
been able to fill 2.5% of it! That's what happens when a forced matrix
squeezes you out of your pay zone.
Some people like the matrix, and that's great. More power to ya.
I just prefer one with more flexibility and (I think) more power.
Gary
I for one would like to see more of these types of "in depths". What
about an overview of the different business plans contributed by people in
the know?
cheers, David.
I like a "forced matrix" as you called it, better than unlimited first level people.
It forces you to help out those below you after a certain point. Obviously the matrix is not very likely to ever be "filled", but I like the focus on helping others, and then expanding the first level AFTER you have shown you can help those below you.
This doesn't mean the other method is wrong, but I think it is a bit less focused on helping others.
: I think this is probably getting deeper than most people on the list
: are really interested in, but for those who want the gory details:
:
Some people like deep. Provide people with information and let them make
a good decision, not one based on some or surface information.
: I'm not completely familiar with Melaleuca's recent changes, but I think
: things are still reasonably close to the old model I understood:
: 7 levels of 7%, plus 1% for Ruby and 1% for Diamond. Total = 51%.
: (In reality they don't actually pay that much, but this is the simple
: explanation.) Espial has 5 levels of 7%, plus 7% for the sponsor,
: plus 4% for Supervisor and 7% for Director. Total = 53%.
:
: At first glance you might think this results in less for the "lower level"
: people (5 levels instead of 7), but in practice I wouldn't agree.
: Espial pays 5 levels of *Manager*, plus the sponsor. There can be
: an unlimited number of lower-than-Manager people between Managers,
: so there is no hard limit on how deep one can be paid. My upline
: has been paid as deep as 20 levels.
:
Actually in looking a little closer it dose appear that there is less for
the "lower level" people, like those that are not yet a Manager. Those
who would just like to share the products with just a few friends or
family, and are not interested in building a big business since they
only receive compensation for personal enrolled customers instead of
everyone in there organization. This it would seem to me would be a good
recipe for customer drop-outs. Maybe that is why Melaleuca has greater
then 90% retention rate over the last eight years.
: Add to that the fact that Espial does not limit the width of your
: organization, and I believe you can (in practice) grow a larger group
: than in Melaleuca. You don't have active legs "squirting" out the bottom
: of your matrix as fast as when each person can only have 5 on their frontline.
: While M's matrix can (in theory) hold 98,000 people, in reality the largest
: group that has EVER been built in the company is about 5000. And that
: person is a Diamond (Ex Dir), which means he has at least 10 people on his
: frontline, which means he has room for 196,000 people -- and he has only
: been able to fill 2.5% of it! That's what happens when a forced matrix
: squeezes you out of your pay zone.
:
: Some people like the matrix, and that's great. More power to ya.
: I just prefer one with more flexibility and (I think) more power.
Brad Andrews (rb...@cas.org) wrote:
: I like a "forced matrix" as you called it, better than unlimited first
: level people. It forces you to help out those below you after a certain
: point. Obviously the matrix is not very likely to ever be "filled", but
: I like the focus on helping others, and then expanding the first level AFTER
: you have shown you can help those below you.
:
: This doesn't mean the other method is wrong, but I think it is a bit less
: focused on helping others.
:
This I definitely have to agree with, Melaleuca is set up in such a way
as to force people to help others if they wish to be successful. It
becomes rather difficult to put self-interest ahead of others. This is one
of the reasons (as well as the products) I chose Melaleuca over others.
Dennis
################################################################################
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/ / /__/ /\ / /\ / / /__ \/ / / / /__/ /__ | for future
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Cheers, David.
I've never seen another company publish comprehensive income statistics,
except for Melaleuca -- and I've been approached regarding a good many
opportunities. It's black and white to me.
--
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Kim Medlin Email: k...@atlanta.dg.com
Atlanta Systems Integration Services CEO: Kim Medlin:DGC
Data General Corporation Phone: 404 705-2653
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> Add to that the fact that Espial does not limit the width of your
> organization, and I believe you can (in practice) grow a larger group
> than in Melaleuca. You don't have active legs "squirting" out the bottom
> of your matrix as fast as when each person can only have 5 on their frontline.
> While M's matrix can (in theory) hold 98,000 people, in reality the largest
> group that has EVER been built in the company is about 5000. And that
> person is a Diamond (Ex Dir), which means he has at least 10 people on his
> frontline, which means he has room for 196,000 people -- and he has only
> been able to fill 2.5% of it! That's what happens when a forced matrix
> squeezes you out of your pay zone.
The Executive Director mentioned above makes in the $40,000-$50,000
per _month_ range. If this is getting squeezed out of your pay
zone, then squeeze me!
-----------