Twenty-five years ago, young Frank L. VanderSloot relocated to Idaho Falls, Idaho, to take the helm of a small company called Melaleuca. From the beginning, Frank didn’t want Melaleuca to be like other companies. He wanted to make it an opportunity that would allow the “little guy” to succeed. Now, 25 years later, that tiny operation in Southeast Idaho has flourished beyond what anyone could have expected, and Frank is being recognized across the nation for his leadership as Melaleuca’s Chief Executive Officer. Recently, Frank generously shared time with Leadership in Action to answer some questions about his passion for enhancing lives, his determination to empower the “little guy” and his love for the Marketing Executives who build Melaleuca businesses around the world.

LIA: Frank, this opportunity gives us a chance to ask you some questions that we hope will give Marketing Executives a chance to know you a little better and understand some of what motivates you.
Frank: Hopefully, I can say something that will be helpful. As you know, I feel very honored that so many people have thrown in with us through the years.
LIA: In the past you have said on many occasions,
including early on in Melaleuca, “The truth is always good enough.” What do you mean by that?
Frank: The truth is a wonderful thing. Scriptures
say you shall know the truth and the truth will make you free. That’s really how truth is. To know the truth makes us free from fear, and it is empowering. People often use hype, exaggerate and blow things out of proportion. People who do that lose credibility and become less effective. My father taught me that the truth is always good enough.
LIA: You have often stated that you identify with the “little guy” and believe that Melaleuca levels the playing field so they really have a chance to compete.
Where did this passion for everyday folks come from?
Frank: I think there is something in all of us where we want the underdog to win. We want to see David beat Goliath. And, I suspect I am just like anybody else in that regard.
I think it also made a difference how I grew up. My dad was a “little guy,” and I see myself as a “little guy.” I wasn’t very good in sports, so whatever team I was on was considered the underdog just because I was on it. I have always enjoyed personally being the underdog in sporting activities, and I guess that carried over into the business world. The bigger the odds are, the more fun the event or challenge is for me.
You’ve always got to figure out a different way of doing it. David beat Goliath with a sling. No one was expecting it. They tried to put armor on David, but David had a different plan. He did what he was good at, not what was expected.
I believe there is opportunity like that in all of us—but you can’t do it through the normal way. I think our business model exceeds the potential of any business model out there. It certainly isn’t “traditional.”
There are millions, even billions of “little guys” on this earth. When all the “little guys” are doing business with each other, you have the power of the masses. If that spirit catches on around this world, and I believe it is ripe for that, I can’t even imagine how much potential that gives Melaleuca and people who throw in with us.
When people understand where their dollar is going and catch the spirit of doing business with each other instead of with large corporations, then, I believe we can beat the Goliaths of this world.
LIA: It doesn’t seem to matter to you whether someone has money, status, or what their race or religion is. How have you learned to find common ground with people who may be different than you?
Frank: I probably also got that from my father. He certainly never lectured on that, but always set that example. He never gave great esteem to the wealthy, but did not downgrade them either. He never esteemed them to be more important than someone else.
Nor did he esteem those who had no wealth to be less important. So based on his example and how I saw him interact with other people, and talk about other people, he never degraded anyone. Neither did he give undue respect to people who had more means than he did.
I think all of us are vulnerable in ways, but one lesson that came with me out of the corporate world is that everyone, no matter what position, has the same fears and worries that most folks have. Through the years I’ve talked with several Presidents and candidates for President of the United States. I have also talked with U.S. Senators, CEOs and others. I’ve just always thought we are all kind of equal, and considered people both famous and not accordingly.
LIA: During Melaleuca’s 25-year history it seems we have done many things that simply either weren’t being done before, or done in the way Melaleuca does them. Can you take a moment and identify a few of those areas?
Frank: From a product perspective, the first real scientific breakthrough we had was Fructose Compounding. This allowed us to take a mineral, and bind it to a fructose molecule, thus making it more available to the cells. We didn’t invent this, but we bought the rights to this technology. That was over 20 years ago.
Now, of course, our scientists have added amino acids to the formula, and developed the process of Oligofructose Complex®. This groundbreaking discovery has clearly put us ahead of any competition
regarding human nutrition. The power of Oligo continues to be reinforced through our ongoing research.
LIA: Have there been other major breakthroughs in our history, some of which are not product related?
Frank: You know, I believe the way we market our products has never been done before. Not ever. We offer an income opportunity without requiring people to invest in inventories. That’s contrary to how the “multi-level” companies make their money, by devising programs to get their people to buy huge inventories. Furthermore, they appear not to care whether the product gets sold to the end consumer or not.
So, we were the first, and I believe we still are, and the only company that has a viable product line, that provides a viable income opportunity without any risk whatsoever. Our Preferred Customer program has provided and secured for our customers a discount and a backup order if they forget to order. This has been a real boon to our business builders who now have built in “repeat” business and therefore residual income.
LIA: In the years that have followed, haven’t many companies tried to copy this concept?

CEO Frank VanderSloot stands by his favorite Piedmontese bull, Clem.

Frank: We were the first company on the planet to use an automatic credit card or banking transaction for consumer goods. The only industry doing that was insurance companies who were using credit cards to pay for life insurance premiums. The multi-level companies have tried to copy us, but they don’t really get it. They re-named the process an auto-ship program, which is entirely different. It certainly isn’t a back-up order, in case you forget to place an order. Personally I think that’s a huge difference. Copycats have established more like a book of the month program. You automatically get shipped something every month, no matter what.
LIA: Culturally, Melaleuca took a huge departure from any multi-level company, or for that matter, any other company. How did that happen?
Frank: I think that has a lot to do with our mission statement. It is so far different from any mission statement I have seen or heard. Usually those statements have to do with earning profits, or being the biggest or the best in a particular industry. Our mission statement took us in a whole different direction, of enhancing lives and helping people reach their goals. It set us on a different direction. It truly is a concept of people helping people, instead of someone trying to get ahead of the other person. The spirit of competition still exists, but now you want to take everyone with you. We didn’t set that business model because we thought it would be the most successful, but because it would bring actions that were more rewarding and fulfilling. Our mission statement has been a wonderful driving force that I believe to be the best model I have ever seen.
LIA: You said “a simple story told from the heart is more powerful than the 10 years of science behind the product—but never leave out the product!”
Frank: Well, if you have sound science that really is the most compelling. But sometimes, that doesn’t speak to people nearly as much as the value of what it did for someone. What was proven in the laboratory is one thing, but what it did to change lives is something else.
LIA: You said, “Sometimes the weirdest people have the most potential.” What did you mean by that?
Frank: You know I learned early on in my experience, that sometimes I would judge someone. They didn’t have people skills, or maybe they just were considered a little weird. And I’ve been so surprised, so wrong about people’s potential. I’ve learned not to underestimate anybody’s potential. And I really have learned, in managing a business, and with Marketing Executives, sometimes employees or leaders may seem to others a little weird—but often they are phenomenally successful and productive.
LIA: Why do you think this is?
Frank: I think this is because they learn to think outside the box. And sometimes, there’s a lot of magic in that.
LIA: You said “a peaceful home is like a fine garden. Those who live there can experience phenomenal growth.”
Frank: To me, I have been in a home without peace, and you cannot grow very much personally. And I have experienced a home that is always peaceful, and that is because of my good wife, Belinda. It is during the last 15 years of my life with her that I believe I have experienced the most phenomenal personal growth. To have personal growth you have to look inside yourself. You’ve got to change some things that need to be changed, and strive to be better. If you are full of anxiety and turmoil, it is hard to look inside and change. Somebody said, “If you are up to your fanny in alligators, you forget that your purpose is to drain the swamp.” I’ve surely learned the value of peace and love.
LIA: You said “forgiveness, tolerance and understanding create healing and peace of mind.” Have you experienced this in your own life?
Frank: Yes, and I’ve been on both ends of forgiveness, at the end of needing forgiveness, and receiving it. It is a wonderful thing when you’re forgiven, and I’ve been at the end where someone needs my forgiveness, and I’ve felt the peace of that. There is a peace that comes over you when you forgive someone, that is healing, to both of you.
LIA: Finally, this last but very important question. You said, “The number of shoes in a wardrobe is in direct proportion to the number of purses in that wardrobe. Over time, a man’s space in the bathroom diminishes in direct proportion to the number of years married.” Would you care to comment on that?
Frank: It’s just one of those elements of life that you really don’t understand until you have been through it!
LIA: Thanks so much, Frank!

Melaleuca began its mission of enhancing lives almost 25 years ago. We wrote it down prior to opening our doors so that we would never forget it. It has never changed. Simply stated, it is “To enhance the lives of those we touch by helping people reach their goals.^SM” That mission has become part of the fabric of every piece of our business model. For 25 years we have strived to make people’s lives better by helping them achieve their dreams. During that time I’ve learned a great deal about people’s dreams. I’ve learned that different people have different dreams and different goals. From the beginning it became clear that it is not for us to decide what a person’s dream should be. Our job is simply to try to help people make their dreams come true.

Often, people tell us about financial goals and they tell us of goals for better health. I love to hear the stories of how people have used Melaleuca to change their lives. Over the years I’ve heard thousands of stories of improved health and improved financial situations. I have heard it said by many people that Melaleuca has changed their lives. Of course, that is not true. But it is true that thousands of people have used Melaleuca to change their own lives.

I’ve met many people over the years who had dreams when they were young about the kind of life they were going to lead, the kind of people they were going to be, and the kind of impact they were going to have on the world. So often, as life hits them in the face, people lose sight of those youthful dreams. They give up on them and eventually forget them. They become resigned to living a mediocre life, just trying to get by. In other cases people change their goals by intent. As they mature, they realize the goals that they had in their youth were not goals that would bring them happiness. As they gain a better understanding of self-fulfillment they establish goals with greater substance and greater meaning than they had when they were young. It is great to be around people like this. Their lives have purpose. They are on a mission. And they appear to be much happier than those who have simply given up on their goals.

Even though one person’s lifelong goals can be entirely different than another person’s, I find that everyone has one goal in common. That is the desire to be happy. That’s a goal that we seem to all have in common. We all want to be happy. Unfortunately, many people go through their entire lives without ever finding happiness. That’s probably because they are looking in the wrong place for it. I’d like to focus this month’s message on the topic of happiness since it is a goal that appears to be common to every living human being.

I think it is worthwhile to note that there are many happy people in the world who do not have much in the way of worldly possessions. It does not take riches to find happiness. Sometimes I worry that the tremendous success that people are having in their Melaleuca business may lead them in the wrong direction in their search for happiness. Melaleuca appears to be, without question, the absolutely best vehicle for average people to get ahead in life financially. But let’s remember that prosperity, in and of itself, will not bring happiness. I am convinced that prosperity will enhance our lives only if we use it as a resource in the areas that truly bring fulfillment in our lives.

Unfortunately, I suspect that those who achieve a consistent state of happiness are very rare. Indeed, many people seem to be in a constant state of unhappiness. We are tempted to ask ourselves, “How can people be so consistently unhappy when their goal is to be happy?” I suspect that it is because people often look for happiness in the wrong places. Too seldom do we take a step back and look deep down inside ourselves to find what would really make us happy in our lives. Too often we get caught up in the rat race of keeping up with the Joneses, of seeking riches, a sexier partner, worldly possessions, or other things that society tells us would make us happy. We are bombarded with messages from our television sets, the Internet, magazines, and society as a whole that if we just had a new boat, a larger home, or a Mercedes-Benz, or the latest iPod, then we would be happy. Or, we tell ourselves that if we had that big screen TV, or a better job, or a better boss, a sexier body or a better spouse—then we would be happy.

In our minds we know better. We know that having stuff or expanding our list of possessions will not actually bring us happiness. But something continues to drive us forward towards seeking happiness in areas where we know, deep down inside, we will never find it. Unfortunately, the result is that many people never do find true happiness. Even after they obtain the bigger home, the big-screen TV, or even the Mercedes-Benz, they find themselves no happier than they were before. That is because they are looking for happiness in the wrong places. It’s not that they don’t already know that. It’s just that they don’t force themselves to stop and take a look deep down inside themselves and ask themselves what’s really going on in their lives and face what it is going to take to change it.

Happiness has much more to do with what is going on inside of us than what is going on outside of us. Happiness has more to do with doing things than with having things. Most people find happiness in caring relationships, and in creating, building, and learning. Family relationships appear to be the most important, but other relationships are also important. Genuinely caring about someone else and having someone else care about us certainly plays a big role. Striving towards a goal and making progress towards achieving it adds to our happiness. It has been my observation that we were all meant to be creators.  It seems that we are happier when we are doing something productive, something worthwhile. My good wife, Belinda, gains a great deal of enjoyment out of vacuuming and cleaning. It gives her a sense of accomplishment. We all feel good about ourselves when we are creating something that we can be proud of. We also gain a feeling of accomplishment when we reach out to help others. If our daily activities are only to help ourselves, we end up unfulfilled.  If we love only ourselves, we will never experience the joy. The ability to reach out to others definitely has something to do with being happy.

I believe that a factor that is often overlooked in our search for happiness is the tremendous impact that our own moral compass has on our happiness. We all seem to have a moral compass—something inside of us that tells us what is morally “right” and what is morally “wrong.” It’s something that is inside each of us. When we live and act within the boundaries of our moral compass, we have peace of mind. When we find ourselves living or acting outside the boundaries of our moral compass, we don’t like ourselves. And when we don’t like ourselves we can never be happy. I suspect that this phenomenon has the greatest impact on our happiness. Liking who we are is, I believe, the most important aspect of finding happiness. I have often imagined a man standing in front of a mirror when he is 90 years old and saying to the person in the mirror, “I know you. I know everything about you. I know everything you’ve ever done. I know every thought you’ve ever had. I know every mistake you’ve ever made. And I know what you have done to try to correct those things. And therefore I like you. And I trust you!” I think that would be the ultimate test of our lives. If we can pass that test, we will have passed the test of life. We will like ourselves. And we will have lived a happy life.

I hope that as we build our Melaleuca business and seek prosperity, that we will remember where happiness really comes from. It is my hope that people will use the resources that they gain at Melaleuca in areas that truly will bring happiness. And that they will remember to build great relationships, and spend their time learning, creating, and building so that they can indeed find true fulfillment in their lives. We are dedicated to helping people reach their goals. Thank you for being part of this great endeavor.

Melaleuca recently completed construction on two major projects—a 37,000-square-foot powder plant and a 223,000 square-foot manufacturing and shipping facility—an indication of the company’s continued growth and expansion.

“Since we opened our doors in 1985, Melaleuca’s vision has been to build a business to last a lifetime,” Melaleuca CEO Frank L. VanderSloot says. “These two projects are investments to ensure that this vision becomes a reality.”

This spring, Melaleuca completed work on its mammoth 223,000-square-foot state-of-the-art Distribution Center in Knoxville, Tenn. This new facility’s completion will allow the existing 170,000- foot production and distribution center to narrow its focus to production. Using a 365-foot enclosed tunnel, the older facility will produce the products and then transport them to the new Distribution Facility to be packaged and shipped. Where the existing facilities were shipping more than 300,000 packages per month to locations east of the Mississippi River and in eastern Canada, the new facility will be capable of shipping three times that amount when fully staffed—900,000 packages per month!

Two-thousand miles from Knoxville and just a few hundred feet west of the Distribution Center in Idaho Falls, Idaho, the new 37,000-square-foot Powder Plant is already bustling with energy as employees formulate, mix and package Melaleuca’s powder nutrition products. In March, the plant began producing Sustain® Berry, Lemon, and Orange on-the-go packets and canisters; Attain® Chocolate, Strawberry and Vanilla shake packs; and ProFlex™, Access® and FiberWise® drinks.

With the plant’s opening came dozens of new staff positions that are welcome in a tight job market. Already known as one of the largest and best employers in Southeast Idaho, Melaleuca uses the new Powder Plant to employ researchers, machine operators and other manufacturing and production personnel. Melaleuca didn’t borrow a dime to complete the two projects, which, together, cost more than $26 million.

The baby boomer generation is turning 60, but the prospect of retirement is looking more frightening than ever before. With home prices dropping, nest eggs cracking, 401(k) plans collapsing, Social Security dwindling and pensions vanishing, retirees are now facing challenges they never anticipated. Those challenges aside, retirement packs its own host of roadblocks for those who want to leave the workforce. The cost of living is often more than most people assume, and few workers are able to retire with as much savings as they need in order to live comfortably.

“Everybody thinks your expenses go down when you retire,” says Senior Director Rita Canney. “My expenses stayed pretty much the same.”

For the solution to those problems, many retirees, Rita included, are looking to the same source of residual income that Elizabeth Lindberg discovered nearly 25 years ago: Melaleuca.

A 66-year-old nurse, Elizabeth enrolled with Melaleuca, Inc., in December 1985, just a couple of months after the company opened its doors.

“When I enrolled with Melaleuca,” she remembers, “there were only eight products and seven employees.”

Over the years, she built her business to Executive Director, and, as a consequence of that hard work years ago, she’s earned $1,163,253.51 to date from her Melaleuca business. In fact, she’s earned $3,366 per month on average over the past 12 months—a refulgent income compared with her $828 Social Security check.

“I know I couldn’t survive solely on my Social Security; my Melaleuca check is a secure retirement,” she says. “I lived during the Great Depression, so I know about financial hardship. If people want financial security, Melaleuca, I truly believe, is one of the best sources.”

Elizabeth Lindberg presents CEO Frank L. VanderSloot with an acorn at Convention 2005. Ninety-one-year-old Elizabeth Lindberg started her Melaleuca business at age 66. Twenty-five years later, she receives $828 a month from Social Security and $3,366 a month from her part-time Melaleuca business.

At Melaleuca’s 2005 Convention in Minneapolis, CEO Frank L. VanderSloot invited a then 88-year-old Executive Director Elizabeth Lindberg up to the stage. But once she came onstage, Elizabeth stole the show.

“I have something to give you, Frank,” she said. “It’s an acorn that you gave to me years ago. You told us, ‘Melaleuca is just a little acorn right now, but I have a vision that there will be a day when this acorn will grow into a great big oak tree.’

“Frank’s prediction has come true,” she says now. “Now, Melaleuca employs more than 2,800 employees, produces more than 350 products and is authorized to conduct business in 14 countries.” In the stories that follow, you’ll read how retirees are using that mighty Melaleuca oak tree to create fuller, happier lives and a greater sense of financial security.

I’m really proud to have been part of Melaleuca for the past 15 years--it’s been unbelievable.  I know Melaleuca would not have developed into the company that it is without Frank’s leadership.  he’s a good man with a kind heart, and his leadership has built the culture of Melaleuca. And I’m really honored to know him.
Kim Cherveny
Melaleuca Corporate Director III

www.youtube.com/watch?v=F3FewVDiFkw

Melaleuca does what most businesses only say they do: they actually help people improve their lives.  I have respect for their products, their leadership team and have enjoyed my ongoing relationship with the company.  I have been particularly impressed with CEO Frank VanderSloot.  Frank understands how to bring the most out of people, and especially how to help the ‘little guy’ succeed.  His energy and enthusiasm are truly inspirational.

Congratulations, Melaleuca, for 25 years of fulfilling people’s dreams.

Ken Dychtwald, Ph.D.
Best Selling Author, Age Power

As we recall the great success of Frank VanderSloot and Melaleuca, perhaps the best characterization of what they have meant to Idaho Falls and Idaho is that they are genuine treasures to this community and state.  It goes without saying that Frank and his company are dedicated to giving back to Idaho Falls and the State of Idaho.  Idahoans who have been a part of the Melaleuca family have prospered as the success and growth of the company has remarkably progressed through the years as a shining example of what free enterprise can achieve.  Frank VanderSloot represents the best qualities of citizen, community leader, and corporate captain.  Thank you to Frank, Belinda and the Melaleuca family for your dedication to the city, country, state and nation. God bless you.

Our great American free enterprise economy is built on the dreams and hard work of visionary entrepreneurs like Frank VanderSloot and all who participate in the business opportunity that Melaleuca provides.

As our nation grapples with difficult challenges, we must not forget that free enterprise created the largest, most successful economy the world has ever known, and it is free enterprise that can lead us back to jobs and prosperity.  Companies like Melaleuca embody the best principles of free enterprise–individual initiative, equal opportunity, self-reliance, and responsibility to customers, community, and country.  Co congratulations to Frank and the entire Melaleuca family on 25 great years.  We need your continued hard work, leadership, and success now more than ever!

Thomas J. Donohue
President and CEO
U.S. Chamber of Commerce

Under the leadership of Frank VanderSloot, Melaleuca has delivered on its promise of enhancing the lives of people. Frank’s vision and sense of social responsibility is second to none and he never ceases to amaze me.  Congratulations on 25 years.  I can’t wait to see what Melaleuca accomplishes over the next 25 years.

Mitt Romney
Former Governor of Massachusetts

In today’s business world, many things define success. Profits, stock value, market share. But for Melaleuca, success is measured in the number of lives changed, in the number of homes and families impacted and in the number of people who have met their life-long goals of personal and financial freedom.
For 25 years now, Melaleuca has taken the road less traveled: a company focused on results that not only reflect the bottom line, but that reflect a generation of helping others achieve their goals.
In 1985, Frank L. VanderSloot helped to create a company that would not only “do no harm,” but that would actually help the little guy succeed. A company that would help everyone who is willing to work achieve the American dream.
What began with a handful of employees, and a small lineup of products has burgeoned into a worldwide company with thousands of employees and boasting over 350 products that help people live healthier, happier lives every day.
As Melaleuca embarks on its 25th anniversary year, corporate partners, friends and members of the Melaleuca family stopped to reflect on the last quarter century with The Wellness Company.

Some of these reflections will be shared in the next several posts that follow.