Securing Our Future

By Frank L. VanderSloot
President/CEO

October 2004

A little over two years ago I took our entire Management Team to a secluded location so that we could be alone and uninterrupted for a few days. It was a time for reflection, for deep discussion, for brainstorming and planning. It was also a time for celebration. This was not the first time that we had held such a meeting. Throughout our history we have made it our habit to take time to make an assessment of our direction, to reestablish our resolve and to recommit ourselves to our mission of enhancing lives. These meetings are often filled with emotion, candor and enlightenment as we discuss the progress of this company and our mission to which we have dedicated our lives. Many of these deep discussions have made a great impact on me personally as I have gained understanding from the comments, the give and take, and the thoughts and feelings of some of the brightest and most talented men and women I have ever known. I feel so fortunate to be affiliated with them and to have them on my team!

At this particular meeting we were asking ourselves a most profound and interesting question. Melaleuca had begun to grow at a rapid pace, the likes of which we had never seen. Our growth rate as a company was becoming what we had been striving for or striving to create for the last seventeen years. It was an exciting time and we could feel the energy in the air as we talked with our Marketing Executives and employees around the country. But now, on our meeting agenda, we were to ask ourselves one of the most sobering questions we have ever caused ourselves to face. It was not the first time we had caused ourselves to face this question, nor was the answer much different from what it had always been in previous discussions when we had brought up this issue. But this time, because of the circumstances of our growth and because of the new challenges of the internet and because of the nature and background of some of the folks who had recently joined us as Marketing Executives, this time I found the answer to the question to bring a sobering epiphany to my understanding and it impressed me more than it ever had before. The question was, "What issue in the future, if it were to happen, could eventually stop us from reaching our true potential as a company?" The answer and the discussion that followed it left me with a somber realization that if we do not take serious action to prevent it, it very likely could and would happen to us.

In previous instances as this issue had taken on various forms of discussion, I thought that that would never happen to us. But this time, I was hit in the face with the almost horrifying reality that unless we take active and aggressive action to stop it, the very thing that could eventually destroy our company not only could happen - it will happen! That is, unless we take serious action to prevent it.

During this particular meeting the discussion of what could stop us had been preceded by about three hours of a totally different topic of discussion ­ that discussion had evolved out of the question of, "What is our potential in the marketplace over the next 25 years?" That discussion was invigorating to say the least! We had given it a great deal of analysis. It was clear that there is a considerable high demand for our products in a huge multibillion dollar market available to take from our competitors. Melaleuca was gaining momentum. Our business model was going to be highly successful and we were already taking tens of thousands of customers away from our competitors each month. After considerable debate, discussion and extensive calculations we concluded that, conservatively, we could see ourselves having eight to ten percent of the entire consumer product marketplace in the United States and Canada in the next 25 years. That would mean that 25 years from now we will be a 10 billion dollar company ­ unless we really screw up! That brought us to the next question, "What could stop us from reaching that goal?" The answer to what could stop us in our tracks was: "If the public ever begins to perceive us as an 'MLM' or a 'Multi-level Marketing Company', in other words a 'money-deal!' The reason the answer is sobering is because that is exactly what is likely to happen unless we take serious steps to prevent it. Thousands of people are joining us who have previously been with MLM companies who have recently failed (MLMs seem to always fail!). These well meaning people come to us with the strategies and tactics that they were taught with whatever MLM they were with. These so-called business strategies include exaggerating product claims, touting miracle cures, waiving big checks, exaggerating their earnings, holding "rallies" to get people excited, enrolling "people" instead of enrolling "customers," adding hype, noise or fake enthusiasm to meetings, promoting leaders as some type of "guru" and a multiple of other distasteful activities that only cause bright, intelligent and honorable people to quietly go away and distance themselves from those doing it. How unfortunate for those who have brought guests to a Melaleuca meeting to have their guests go through the distasteful experience that comes from being exposed to the hype and artificial excitement that so much degrades the message and those associated with it.

The concept of hype is somewhat difficult to explain. It's kind of like what the judge said about pornography, "I can't define it, but I know it when I see it!" There's nothing wrong with genuine enthusiasm, spontaneous applause, laughter and genuine emotion. Any presenter at any meeting would love to have the audience react in a positive manner. Genuine crowd reaction adds a lot to any meeting experience while contrived artificial crowd noise to give the appearance of excitement and enthusiasm distracts from the genuine message. Where there is genuine substance, no hype is necessary.

I was recently at a Melaleuca meeting where I was left feeling "yucky" (for lack of a better word) inside. I felt like the hosts of the meeting had tried to get the crowd to be noisy. Perhaps they had done it for my sake. Perhaps they had said to folks before I came, "Frank is going to be here, let's show him how enthusiastic we are, let's raise the roof off of this place!" I'm not sure about that, but clearly something was going on. There was a lot of yelling and screaming after comments or announcements that just did not warrant that kind of response. My impression was we had crossed the line into the arena that would leave those present feeling we were phony and that our pitch was also phony. I wondered how many were present that evening would go away quietly and never come back. I know it is difficult to host a meeting like this when the President of the company is present. I asked the Regional Manager to go back to these wonderful people who were hosting that evening and suggest that they just be sincere with their presentation. They might feel that doing away with the hype and noise might take away from the entertainment value of the presentation, but I promise it will not. The truth is always good enough. We do not have to embellish it nor do we have to present it in a manner that makes us appear to be more excited than we really are. With almost 20,000 enrollers and business builders out there it is very difficult or actually impossible to control everyone's presentation, but a wise man once said that the best form of leadership is to teach people correct principles and let them govern themselves. I am asking the National Vice Presidents, Regional Directors, the Corporate Directors, Executive Directors and Senior Directors to keep the hype out of our meetings. We love genuine crowd response, but not noise for the sake of noise. I am asking all leaders to not allow hype into their meetings. We define hype as anything contrived, put on, pretended or artificial. You will know it when you see it and when you do see it, please address it, do it kindly and in a gentle and caring manner, but make it understood that it came across to you in a manner that did not feel right to you.

Our message is real, our products deliver outstanding benefits, we do not have to exaggerate the results nor do we have to deliver the product message or our financial message or any communication in any artificially enthusiastic or hyped-up way. It's up to us to keep hype out of our culture regardless of how many former MLMers come to join us. Please help us to do exactly that.

Sincerely,
Frank

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