We have great leaders at Melaleuca and the basis for our success is no exception to the rule. Every great success story at Melaleuca was created by leaders who have been actively engaged in the concept of leading others.

At Melaleuca leaders are not elected, neither are they appointed. No one else decides who the leaders will be except the leaders themselves. Obviously, great leaders are always in front leading by example, doing the things that they are teaching others to do. It has been a wonderful experience for me over the years to see leaders step forward on their own accord and lead so many others to success. We are having another great year at Melaleuca thanks to the dedication and involvement of literally hundreds of leaders. I appreciate, so much, their support and their contribution.

We have learned the hard way that without leadership we do not grow or get results. Yes, our products are awesome and they make our job easy, but unless we get out there and tell people about them, we will not continue to grow and prosper. And of course, it takes great leaders to make that happen.

Over the years, we have experienced phenomenal growth! But in 1998 our growth began to slow. As we evaluated the situation we learned that some unfounded and unhealthy concepts about leadership had permeated our ranks in some of the higher leadership levels.

The concept that was being talked about and endorsed was one where someone could become a Melaleuca Marketing Executive, work like crazy until they became an Executive Director and then "retire" so to speak and kick back and continue to make the big dollars while everyone else in their organization continued to do the work. The argument was that Melaleuca was so strong and our company so solid that basically all of our leaders could "quit" and our company would still continue to grow and prosper because we would have so many people trying to become leaders so they too could "quit." The expectation was that the leader who quit leading by example should make the same money as those who continued to lead.

Fortunately, not all of Melaleuca's Senior and Executive Directors endorsed this "become-a-leader-so-you-can-quit" philosophy. Many continued to work to enhance the lives of others by helping them reach their goals. As we saw those leaders struggling to hold up both their end as well as do the work of those who had quit leading, our hearts went out to them. They were not receiving any more income than those who were no longer leading. It became evident to us that we needed to build in rewards for those who continued to lead others long after they had reached their own goals.

In January of 1999 we instituted a change in our compensation program that required our Senior and Executive Directors to contribute to the success of others and be active in Melaleuca's mission of enhancing lives in order to capture the large commission checks available at Senior and Executive Director levels. The result has been wonderful. Although a few complained and reacted negatively to our request, the vast majority understood the necessity of our request and began to reach out to others in their organization to again give a helping hand of leadership. Thousands have responded to the new commitment of leadership exhibited by these great men and women. New customers have signed up by the thousands! Our growth the last two years has been beyond our wildest imagination!

Not only is Melaleuca growing like never before, our leaders are growing too, with hundreds advancing in status each month. Bonuses have also reached new highs and Melaleuca's future as a multi-billion dollar company in the U.S. and Canada looks extremely bright. It's been proven, once again. Leadership is everything!

If you want help from your leaders, call them and ask them for their support. With our new incentive program they will be anxious to help you. If your leadership is not responsive to your request to help you make appointments or presentations, please call Business Development at (208) 522-0870. We will help you contact the leaders in your organization and explain how they can win by helping you. It's a great thing when everyone wins. And everyone wins where leaders lead! Because of the leadership of our great leaders, Melaleuca is a great opportunity. We have absolutely the best! We appreciate them so much!

Sincerely,

Frank