President's Message - If You Want Them To “Get It,”
Tell Them First About the Products!!
January 2003

"Certainly, the money is exciting to talk about, but let's not forget what is behind our tremendous success - our exceptional products."

The year 2002 has almost come to an end. It's amazing how fast a year goes by and even more amazing how much progress we have been able to make in such a short time. In the past twelve months we have had 8,868 new Director advancements, 269 new Senior Director advancements, 77 new Executive Director advancements, and, for the first time ever, two new Corporate Directors V. Total bonuses paid to Marketing Executives grew by $6,296,330 over last year.

During 2002 our catalog was greatly improved! Both domestic and international sales reached all-time highs. Total enrollment of new customers exceeded 235,000 households in just the U.S. and Canada alone, and enrollments internationally exceeded 157,000.

We continue our aggressive approach to introduce new products into the marketplace. This year we brought you Nicole Miller Timeless, ProFlex20, Strawberry Attain, Peanut Butter Crunch Attain Bars, Fiberwise Bars, improved Access Bars, our entire Sun Valley Bath & Body line, the entire Naturals line, and we even improved our already excellent EcoSense products.

Earlier this year we introduced some changes to our compensation plan to better reward leaders who are helping others reach their goals and to give greater incentives to those from Director through Senior Director status to reach out and help others on a consistent basis. These changes have created a culture where leadership is not only encouraged, it is rewarded. Marketing Executives are thriving because they are getting more help than ever before from their leaders!

As we look forward to next year and beyond it is apparent that we have an exceptional opportunity to capitalize on our current success and to launch this new year with more momentum than we have ever had in starting a new year.

As we prepare to launch our business into 2003, it is important to remember the lessons of our past success. As the financial opportunity of operating an Independent Marketing Executive business continues to grow, we will be challenged by the phenomenal amount of income that we will continue to hear about in regards to how much Executive Directors and Corporate Directors are making with their businesses. As we hear of hundreds of thousands of dollars in annual bonuses and now (in two cases) of millions of dollars, we might be tempted to focus more and more on the financial opportunity as we enroll customers and speak to prospects about our business. After all, every Marketing Executive would like to have many more business builders join his or her organization to help in the business. And talking about the money might seem, at first glance, the best way to get someone interested!

Certainly, the money is exciting to talk about, but let's not forget what is behind our tremendous success - our exceptional products. It's the superiority of The Vitality Pack, ProvexCV, Replenex, NutraView, Pain-A-Trate, Nicole Miller, MelaPower and dozens of other vastly superior products that create our success. Some of our new Marketing Executives have left multi-level companies to join Melaleuca, because they heard about how much better our Marketing Executives are doing financially, so it might be easy for them to believe it is our superior compensation plan that creates a much better opportunity for them. If they drew such a conclusion, they would be gravely mistaken.

It is our products that give us our advantage in the market place. As you build your business, you might be tempted to first tell someone about the great financial opportunity since that is now so exciting to talk about. You might somehow think that money would be more exciting and more appealing to talk about than vitamins, or good health, or a safe home. But if you tell people about the financial opportunity first, you are leaving out the most important and the most solid part of your message. As you approach people to join your marketing organization we would counsel you to tell people first about the foundation of our success-our products - and then tell them about the financial opportunity! The financial story will make a lot more sense to them once they hear about our superior products.

The truth is, if we plugged our compensation plan in behind average products, we would soon fail as a business. It's the customers who come back every month to buy our products over and over again who drive our success. The reason they come back and buy from us each month is because they cannot get these products anywhere else. Once someone understands this they will be able to understand the magnitude of the financial opportunity. For someone to try to understand the financial opportunity without first understanding the power behind the superiority of our products, would create a story that would be almost impossible to believe - and rightfully so. It couldn't happen without our vastly superior products.

So next time someone doesn't believe you when you tell them about how much money is being made by Melaleuca Marketing Executives, go back and tell them about our products. Then they'll understand! It's the products! If you want people to understand your message, always lead with the products!

Sincerely,

Frank