A Tribute to Harold Ball and His Family

By Frank L. VanderSloot
President/CEO

August 2004

Last week I attended a special awards banquet sponsored by the Boy Scouts of America in Pocatello, Idaho. Several awards were presented to various citizens for their service and dedication to the Boy Scouts over the past several years. One award in particular caught my attention. It was an award to Harold Ball who is the father of Allen Ball and Roger Ball, two of the cofounders of Melaleuca, Inc. What is unique about the award to Harold Ball is that Harold passed away almost five years ago. It was the only award given posthumously that evening. As I drove the 45 miles home that evening, I could not stop thinking about Harold. I had known Harold quite well. For many years he had served on our Board of Directors. At that time he and his wife, Verla, owned 10% of the company. We had lunch together once a month to discuss how the company was doing and where I reported our progress as a company. Harold was a gentle, mild-mannered man who valued honesty above all else. He had been involved with many small businesses as an owner and manager and never believed in the words "quit" or "give up."

He had taught those virtues to his children. Something else he taught them was that they would never prosper working for someone else. He taught them a concept that all Melaleuca Marketing Executives understand well, "If you want to do well in life you must develop something that will make you money while you sleep." Several of his children took his advice. His daughter Norma formed Beauty For All Seasons, a direct sales and marketing company that specialized in color cosmetics. Norma specialized in counseling ladies on what colors of clothes and cosmetics they should wear to enhance their natural beauty. Verla, Harold's wife, was a phenomenal mentor for all of her children, encouraging them to make the best of life. She worked tirelessly at Norma's side for many years nurturing Beauty For All Seasons to a great beginning. Norma's brother Allen and her sister Debbie also worked at Beauty For All Seasons.

Roger Ball is Harold and Verla's oldest son. He took his father's counsel very seriously and, after completing his education at the University of Idaho, became an entrepreneur extraordinaire. I have never known anyone like Roger Ball. He has more ideas than anyone I have ever met. And he has the courage to act on his ideas. All of them! As with any businessman, not all of his ideas have proven to be successful, but that has never slowed him down or caused him not to act on his next idea. We owe our own very beginning as a company to Roger's propensity and courage to act on his ideas. It was Roger who first had the idea to bring Melaleuca Oil to the United States. He first learned of Melaleuca Oil from a magazine article while traveling in Australia to purchase beef for his jerky company, King B Jerky. By that time he had already started several companies including a beef jerky company, a water slide company, a plastics company, a trucking firm, a label manufacturing company, a cosmetics company, and several others. When he first read about Melaleuca Oil, he realized its potential benefits compared to aloe vera, because he had seen aloe vera used by Beauty For All Seasons in their skin care line. He first suggested to Norma that Beauty For All Seasons market Melaleuca Oil as one of their products. Norma was not interested so he decided to...you guessed it...start a new company called Oil of Melaleuca, Inc. He formed a partnership with 50% of the company being owned by Roger and his wife Marsha, his brother Allen and his wife Connie, as well as his father and mother, Harold and Verla, and the other half of the company being owned by an Australian partner, Don Miller. Don Miller owned a ranch in Australia where thousands of Melaleuca trees grew naturally.

The company started up in the fall of 1984. It was a typical multi-level marketing company with a break away compensation plan and a focus on selling and paying bonuses on the sale of starter kits. A distributor could get to the top level (Gold Koala) by purchasing 5,000 dollars worth of product (usually starter kits) in any given month. This was often achieved the very first month. The company started with pretty good results and sales climbed to 60,000 dollars per month. In December of 1984, Roger called me up to ask if I would come be President/CEO of the company and help get it off the ground.

At the time I had a great job as Vice President with Cox Communications in Vancouver, Washington and I turned down the offer at first, but later Roger and Don Miller sweetened the offer with a fantastic bonus plan and by March of 1985 I had agreed to move my family to Idaho Falls. I was especially intrigued with the research on Melaleuca Oil. And the idea that the Australian partner, Don Miller had 80% of all of the Melaleuca trees in Australia was also very exciting.

Looking back, now I realize that I did not do any significant investigation into the company itself. I came mostly because of my excitement over Melaleuca Oil, my love and faith in Roger Ball, and the great bonus plan they had offered me.

Soon after arriving in Idaho Falls, I learned we had major problems with the company. The medicinal claims the company was making on Melaleuca Oil had not been approved by the FDA. We learned it was illegal to pay bonuses on starter kits and we soon discovered that we did not have 80% of all the Melaleuca trees in the world. This came as a major blow to everyone. It appeared that in the excitement of starting the new business, several extremely important things had been overlooked. Sales had dwindled to 35,000 dollars per month, and it became apparent that the most prudent thing to do was to close down the company and start over without the Australian partner.

Allen and Roger graciously agreed to have me join them as an equal partner in the business if I would match their investment. Allen and Connie had mortgaged their home and had invested essentially all that they had into the business. It was my turn to do the same. Roger and Allen agreed to allow me to operate the business without interference and pledged their full support to our future success.

We scrapped almost everything from the old company. We got rid of all the MLM concepts and designed a Compensation Plan that absolutely did not allow any inventory loading whatsoever. We bought back all of the starter kits that people had not been able to sell. And we announced that we did not have 80% of all the Melaleuca trees in the world. We immediately lost over half of our Marketing Executives. They had originally signed up for a "get rich quick" deal and this obviously wasn't going to be it. The most they were going to be allowed to sell someone was what they could use themselves each month. That pretty much weeded out all those with a multi-level orientation. But those who stayed with us learned that building with real customers for the long-term far outweighs whatever could happen in the short term. Five years later we were listed by Inc. Magazine as the 37th fastest growing privately held company in the nation. We were off to make our mark in history!

As our growth skyrocketed, it became more and more difficult for Roger not to be involved with the direction of the company. His entrepreneurial spirit was difficult for him to control. He had plenty of ideas and suggestions that he was anxious to have implemented. Allen Ball became a steady hand in the relationship between Roger and the company. He loved his brother deeply, but felt that the stability and longevity of the company had first priority.

In reality, Roger also always wanted the welfare of Melaleuca to come first. Eventually he quietly resigned from the Board of Directors. Several years later, his entrepreneurial spirit still as active as ever, Roger announced he was starting a company on his own that would compete with Melaleuca where he could try out many of the ideas that he had long wanted to implement. Many Marketing Executives felt that it was inappropriate that Roger remain an owner of Melaleuca while operating a company that was in competition with Melaleuca and its Marketing Executives. Allen and I agreed. Roger graciously offered to sell his interest in Melaleuca back to the company. Roger soon started his own multi-level marketing company called "Life-Link." To its credit it remained in business for over two years - far longer than most multi-level marketing companies. Knowing Roger, he will never be undaunted, nor discouraged. Do not be surprised to learn someday that he has launched a third or even fourth multi-level marketing company. Wherever he goes and whatever he does, we wish him the absolute best with his new endeavors. We know we would not be here without him and his endless desire to start companies and to implement his ideas. We cheer his ever enthusiastic spirit! We would also not be here if Harold and Verla had not taught their children the value of having their own business. We would not be here if Norma had not started her business, Beauty For All Seasons, because Roger would not have realized the value of Melaleuca Oil in comparison to aloe vera. And something that only Allen and I would truly understand, Melaleuca would not be here without Allen's total faith and support and courage as he has always decided to do what is best for the company. Allen and Connie and their family have sacrificed a great deal (as has my own family) as they agreed to vastly reduce shareholder distributions for seven years in order for the company to pay off the purchase of Roger Ball's stock in the company. The purchase of Roger's stock occurred over five years ago. Allen's and Connie's sacrifice continues to this day. Allen is the best partner that anyone could ever dream to have. He just wants what is best for the company. I can't imagine a better partner than that!

As I drove home from that Boy Scouts of America dinner, I thought, "How appropriate for the Boy Scouts to honor Harold Ball for his contribution." Harold was a great man, never asking for recognition. He has been gone from the earth for five years now. How appropriate that we at Melaleuca take a minute to pay tribute to him also, for we would not be here without him and Verla having taught their children. Nor would we be here without Norma, nor Roger, nor Allen. They have all made a quiet, but enormous contribution. Our very existence depended on their being there long before anyone ever dreamed of Melaleuca.

It's significant to realize that all events are tied to other events. And our lives are tied to other lives. No one has ever or will ever accomplish anything by themselves. Thank Heaven for all who have contributed to our lives and to Melaleuca. And thank Heaven for men like Harold Ball who lead families like the Ball family.

Sincerely,
Frank

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