Direct Seller Compensation Plan for Melaleuca China

Direct Seller Compensation Plan for Melaleuca China
Melaleuca’s Compensation Plan is designed to award Direct Sellers who refer customers to Melaleuca. The
income that a Direct Seller can earn from Melaleuca will depend on the products purchased by the customers that
they refer. The key to understanding Melaleuca’s Compensation Plan is to remember that all commissions are
based on the sale of products to the end consumer. “End Consumers” are the customers who purchase products for
their own personal use in their own homes.
Melaleuca does not have incentives that encourage Direct Sellers to purchase inventory to resale to customers.
This business model is different from the traditional MLM or Direct Selling business models which have financial
incentives for large volume purchases.
After introducing the customer to Melaleuca, the Direct Seller refers the customers to one of Melaleuca’s stores or
service centers from which the customer will purchase products. Because any customer can get the same price in a
store, customers do not necessarily need to buy products from other Direct Sellers. The Direct Seller will provide
follow up and support to those customers by answering product questions or other questions they might have. A
Direct Seller does not earn commissions or bonuses for enrolling customers and will only be paid commissions
whenever those customers purchase products.
In order to insure that Direct Sellers do not ask customers to purchases an excessive amount of products,
Melaleuca has placed a cap on the amount purchased in a month by a single customer that will qualify for
commissions. That cap is approximately 3,000 RMB, which means if a single customer purchases an amount in
excess of 3,000 RMB in a particular month, the Direct Seller will not receive any commission on the amount
exceeding the 3,000 RMB.
A Direct Seller will earn commissions on the products purchased by the customers they refer. Commissions are
paid and calculated based on the table below:
Sales Volume
Personal Sales
Commission
< 1,000 RMB 5%
1,000 RMB 7%
Stable Income Bonus
- 1 -
上 海 美 乐 家 保 洁 用 品 有 限 公 司
Melaleuca Shanghai Wellness Products Co., Ltd.
Extra Income Bonus
2,000 RMB 7% 7%
4,000 RMB 7% 7% 7%
8,000 RMB 7% 7% 7%
12,000 RMB 10% 7% 7%
16,000 RMB 10% 7% 7%
20,000 RMB 15% 7% 5%
30,000 RMB 15% 7% 5%
40,000 RMB 18% 7% 5%
>/= 50,000 RMB 18% 7% 5%

Personal Sales Commission -- a Direct Seller earns this commission each month when the required sales volume
is met.
Stable Income Bonus -- when a Direct Seller’s monthly sales volume exceeds 4,000 RMB for three (3)
consecutive months, the Direct Seller will earn 7% of their sales volume beginning in the third month.
Extra Income Bonus -- when a Direct Seller reaches the stated sales volume for the first time and maintains that
sales volume for 3 consecutive months, then the Direct Seller will earn a one time bonus equal to the percentage
each month for up to three consecutive months.
For example, when a Direct Seller reaches 4,000 RMB sales volume, they will earn 280 RMB (4,000 RMB x 7%)
for that month and the following 2 months.
Melaleuca will fully comply with the Direct Selling Compensation Law to pay commissions to its Direct Sellers.
The Direct Seller compensation plan does not include the payment of an organization commission. A Direct Seller
will only be paid commissions based on the sales volume of customers he/she personally refers to Melaleuca. The
company’s compensation plan will not exceed the 30% limit set by law.
- 2 -
上 海 美 乐 家 保 洁 用 品 有 限 公 司
Melaleuca Shanghai Wellness Products Co., Ltd.