ANGELICO.WPF 15 April 2002

Dear John

Firstly, congratulations on your new baby; I hope all are well.

Here's a chance for you to do some personal bean counting.

I have just joined up with a bunch of Melaleuca customers so = as to=20 have a home-based part-time income-generating business. I have met = several=20 people, who have been in this home-based business for three months and = who are=20 already forging ahead very well, which gives me great encouragement.

I would be much obliged for your considered opinion of the = Melaleuca=20 opportunity. I have included most of the material that is in their = brochures=20 etc.. Please oblige me by reading it and giving me your view. It may be = of=20 interest to you and your wife.

Thanks

David Halprin

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CUSTOMER LOYALTY REWARDS (CLR)

What do you know about customer loyalty? Maybe you = haven't=20 thought about it, as such. With the amount of competition these days, = people are=20 apt to switch brands just because they see an advertisement on the TV, = (or=20 elsewhere), and they reason, "Why not, since it's really not that = important what=20 brand I use anyway, and maybe this one is better".

Secondly, word-of-mouth recommendation from a friend = or local=20 shop-keeper is even more powerful in determining one's choice of a = consumable=20 than is media advertising. Whichever is the case, on looking back, one = can=20 realise that the main beneficiary is the manufacturer of the recommended = product, (financial satisfaction), since the consumer has only = benefited, at=20 most, with product satisfaction.

Have you ever followed that through to what this = personal=20 recommendation can result within a few months, or even years down the = track?

If person A recommends to B, (and only this one = person B), to=20 change brands, and B is pleased at the outcome, then B will tell at = least C=20 sooner or later. This chain of people can multiply up exponentially.

There is a company, Melaleuca, that was formed = in 1985=20 in the USA, with this powerful strategy as one of its foundations, the = other=20 being, to be the manufacturer of seven superlative products initially, = (now a=20 multi-million dollar company with over 100 exceptional products, that = are unique=20 and exclusive, scientifically developed proprietary formulas).

Melaleuca of Australia opened its Head Office = in=20 Melbourne, Australia and started trading in September 2001.

There are four categories of products:-

1) `Vitality for Life' Nutritional products, = (Vitamins,=20 Minerals, Herbals etc.),

2) `Melaleuca Personal Care' products = containing=20 Tea-Tree Oil (Dental, Hair care, Bath & Body),

3) `Nicole Miller' Skin Care products and=20 Cosmetics, Soap, Sun Screens,

4) `Ecosense' Home Cleaning products that are=20 biodegradable:-

for the kitchen, bathroom, laundry, furniture, = windows=20 etc..

The superiority of these products is determined by = the highest=20 quality ingredients, that are safe, cost-effective, and environmentally=20 sensitive. They are sold direct to each customer, thus avoiding any = middleman or=20 other on-seller. Customers buy only for their own households, so there = is no=20 relationship with any pyramid or multi-level marketing schemes. This is = a direct=20 manufacture-to-consumer purchase of products, not to be confused with = Amway,=20 Avon etc..

The management instituted the framework of a reward = structure,=20 that would give a points award, (culminating in the form of a refund = cheque each=20 month), for each person, (called a "preferred customer"), who made these = recommendations, and according to their individual efforts, so can they = build up=20 a personal business organisation, that only required them to:-

1) commit to using Melaleuca consumables in = their own=20 home, without buying any more than they really needed, but with a = minimum buy of=20 about $100 per month of whatever they chose. (Essentially, one's usual = budget=20 for the household is unaffected.)

2) tell others about the company so that they, too, = could have=20 the benefit of using the Melaleuca consumables, and also win = reward=20 points as did they. They would therefore realise that each person is not = merely=20 helping the company grow, but also they are helping one another in a = team effort=20 to gain points and that monthly cheque.

At no time do any such customers do any selling of = products nor=20 hold any stock other than their own household monthly requirements. = Essentially,=20 the manufacturer sells by the catalogue shopping system, (mail-order = catalogue),=20 and there is a nominal postage charge added to each order. Also there is = a=20 personal pick-up available at the Australian head office and showroom, = situated=20 in East Kew, Melbourne, Victoria, where one can enjoy the facility of = seeing all=20 the products on display, from which they can make up their own orders, = if they=20 so choose. Also, there is a presentation room there, freely available = for any=20 customer to meet with any proposed new customer. This may suit many = people in=20 preference to an in-home presentation, and also it enables any customer = to=20 sit-in to witness the presentation of that particular presenter, thus = adding to=20 one's product knowledge and home-business-methods knowledge.

Suppose no one gets more that two people to change = brands. In=20 the first case we have 1 household using Melaleuca products, then = 2=20 people start up and they each tell two people, so we have 4, and before = you know=20 it, after 7 such links in the chain we have 128 households using the = product in=20 the seventh generation. Of course they all benefit from the better = product, but=20 look how Melaleuca receives all that extra trade for no = advertising=20 outlay.

If, however, we say that each person finds exactly 5 = people to=20 change brands, then after 7 links of the chain, we have 78,125 = households using=20 Melaleuca products in the seventh generation, not to mention the = previous=20 six generations. That illustrates the potential power of each person's = business=20 organisation to build up business for both the company and = him/herself.

Further, if each person helps his/her own personal = enrollees,=20 then as they build their businesses, so too does he/her build his/her = business=20 further, due to the generous reward points, [and monthly cheques = (trail-fee)],=20 earned.

This business is suitable for anybody, including = those who are=20 `trapped' in their homes bringing up children, or hindered in some way, = that=20 prevents them from taking on a full-time position downtown etc..

The above examples illustrate the power of = word-of-mouth=20 advertising.

To quote the Melaleuca presentation `New = Horizons':-

"Enhancing the Lives of Those We Touch"

There is a nominal grading of these customers = according to=20 their own way of participating in the scheme, but that is arbitrary and=20 changeable, since they move up in the grades, from Level 1 to Level 5 as = they=20 see how they can progress with a modicum of effort in the early = stages.

If one starts as a committed customer to buy that = minimum of=20 approx. $100 personal choice each month, then one receives a 30-40% = discount off=20 suggested retail prices and thereby becomes a `preferred customer'. = However if=20 one is employed otherwise during the week, and finds no spare time to = contact=20 others to join up as fellow users and customers of Melaleuca, = then one=20 has the satisfaction of using a superior product. This is Level 1.

If, however, there is some spare time in the week to = contact=20 friends and relatives etc., and recommend Melaleuca products, = then one is=20 starting a personal business, (as a `marketing executive'), that begins = that=20 seven-generation-chain, (as illustrated above), and therefore the reward = points=20 will start to accrue as will the monthly refund cheques be more = valuable.

This will lead many people to make it a part-time = business for=20 a few hours each week, (Level 2), and eventually most people will want = to find=20 more part-time hours to increase the personal business both for = themselves=20 directly and for their fellow enrollees, (Level 3), since helping others = always=20 helps both the company and oneself concomitantly.

Many people eventually make this personal home-based = business=20 their main or sole source of income, (10-20 hours per week for Levels 4 = or 5 as=20 `directors'), because it makes them realise that the rewards, (financial = and=20 other), are too good to not want to devote a maximum of their available = time,=20 and they usually leave their former employment or business, with no = regrets.

Approximate Australian gross earnings per month for = the five=20 different levels:-

1. Nil

2. $100 - $200

3. $600 - $1,000

4. $2,000 - $8,000

5. $20,000 - $40,000 or more

The most incredible thing about this is that no one = has to=20 invest any money or pay any premium in order to start up this business=20 opportunity, therefore there is:-

No risk

No inventory

No pressuring of customers to buy products

No invoices or receipts

It is not like buying into a concession such as = happens with=20 many fast food outlets, for instance.

Because of the immense infrastructure, that = Melaleuca=20 has in place, any preferred customers can avail themselves of it without = the=20 bother and expense of having to set themselves up in business with all = the usual=20 overheads of rent, wages, inventory etc.. Their businesses are run from = their=20 homes, [Small Office, Home Office (SOHO)], and there are tax advantages = for=20 doing just that, since a certain percentage of the home expenses become=20 tax-deductible.

Usually a new business owner has to pay off initial = outlays and=20 meet interest charges and run the business on overdraft for some time. = Then=20 eventually pay off debts and attempt to accrue money by investing it in = term=20 investments that accrue compound interest, but if they withdraw any of = the=20 accrued capital, they lose some of the base for compounding and = therefore there=20 is a delay before reaching a particular target amount.

Well, a Melaleuca preferred customer compounds = his=20 people by enrolling at least eight personally as a basic requirement, = then they,=20 in turn, do the same, with the help of the enroller, and the compounding = of the=20 people results in a compounding of the reward points and dollar value of = the=20 monthly cheques, because of the very essence of a CLR, (Customer = Loyalty=20 Rewards), business.

Each person is at the top of a `triangle', (his/her = business=20 organisation), with 5 in the next generation, 25 in the third generation = up to=20 seven generations below him/her, all of which belong to the same = business=20 organisation, and all of which earn the person at the top many reward = points=20 (converted to dollars).

This Customer Loyalty Reward (CLR) is known = as:-

`Melaleuca of Australia Compensation Plan'

Everyone has equal opportunity to reach their target = income,=20 dependent on willingness to devote time and effort to build the = business. There=20 is no employer to threaten your employment, so people, who have been = retrenched,=20 will find their dismissal to be a stroke of luck, because = Melaleuca will=20 prove more rewarding. Similarly, those in menial jobs will regain their = dignity=20 by being self-employed with Melaleuca. Since one works from one's = home,=20 in the main, there is no daily travel long distance, which many people = usually=20 have to do.

Those, who don't have a computer are not penalised, = since one=20 can run the business using telephones and the postal service.

Once customers reach level 4 or level 5, (as = directors), they=20 have generated a substantial income, which becomes a residual income, = without=20 further need to further build one's business, but merely to purchase the = usual=20 monthly base-points-purchases for their own households. This can be a = great=20 benefit when one is on vacation or in time of illness, the income is = still=20 there. Furthermore, this business obviates the need for superannuation = because=20 of the residual income. Also one may pass the business on in one's = will.

The only outlay is for the business kit of booklets, = brochures=20 and forms in a folder for $49.50 and if one changes one's mind within = 120 days,=20 then there is a money-back guarantee on that business kit. Similarly, = there is a=20 money-back guarantee on all products within two months of purchase for = any=20 reason of dis-satisfaction, should one choose to return any or all = products,=20 even if used.

This incredible business is exclusively dependent on = the=20 CLR and the superior quality of Melaleuca products.

So, if you are interested to find out more about this = business=20 opportunity, let me know and I can answer any relevant questions, and = arrange a=20 presentation, if you wish it.

David Halprin e-mail davidlazatnet2000 dot com dot au

Home Phone: 03-9859-5835