Frank VanderSloot (pictured) denied a lot of different things Tuesday. In a 1,750-word statement to Salon.com, VanderSloot denied that he’s a billionaire. He denied that the business that made him his fortune — Melaleuca, an Idaho Falls household and nutritional products company — is a “pyramid scheme.” Despite his long record of supporting Idaho Republicans, he said he doesn’t consider himself a Republican or a Democrat. “I’m quite conservative on most social and economic issues. And I’m pretty liberal on most environmental issues.” He also denied the central point of a 3,600-word column written by Salon.com’s Glenn Greenwald: his assertion that VanderSloot uses his money and “chronic bullying threats” to muzzle reporters and bloggers who dare to challenge him/Kevin Richert, Idaho Statesman. More here.
Question: Did you know much — anything? — about Frank VanderSloot & his use of his Melaleuca fortune to support Mitt Romney & conservative candidates before he was focus of Salon & Rachel Maddow stories?
duroc on February 22 at 2:04 p.m.
Yes, but I’m from southeastern Idaho originally. I’ve heard of Melaleuca for years, mostly my parents calling it “snake oil for Mormon housewives with more money than brains.”
Idaho gal on February 22 at 2:47 p.m.
As a lifetime Idahoan, I think we are fortunate to count Mr. VanderSloot as a fellow citizen. His quiet philanthropy is well known, even though he tries to be as anonymous as possible. I admire and respect him for his accomplishments. Many people here and around the world, have great careers because of his visionary ideas. We need to applaud the entrepreneurial spirit that Melaleuca fosters in all those who work for or with this successful and “Green” company. I say they have the whole package and I wish them great success!
onemorevoice on February 22 at 4:29 p.m.
Yes, I’ve known about Melaleuca and Frank VanderSloot for 15 years. It’s a relatively quiet company that makes good health products and uses a direct sales model. Their business model does everything possible to distance themselves from MLM and provide a genuine opportunity to families across the country to make a little extra money. I’ve interacted with Frank many times over the years, and I found him to be quite intense, yet personal and friendly. Nothing like what was described by all his critics in these articles. I don’t believe the recent vicious stories (Salon, Mother Jones), simply because the initiators were spurred more by opposition to his political beliefs than a quest to report the truth. I think he and his good company, Melaleuca, been the victims of a disgusting hack job from left wing media who have ulterior agendas. One supporting fact to my claim: Mother Jones needed to make five corrections to their original article (all done at the bottom) - now that is ugly reporting.
duroc on February 22 at 9:16 p.m.
SNORT!
nic on February 23 at 6:57 a.m.
Holy bombardment from astroturfers batman!
Saying VanderSloot isn’t a bully is like saying sharks can’t swim.
duroc on February 23 at 7:22 a.m.
@nic: I can’t fault them for defending their Dear Leader. But they could use a little perspective, I think. This isn’t a vast liberal media conspiracy. I know plenty of rock-ribbed Idaho Republicans who have big problems with VanderSloot.
And, I’m sorry: Snake oil is snake oil, no matter how you spin it.
Anyone who saw the last season of Big Love and is from southern Idaho or Utah will recognize what’s going on with multi-level marketing (pyramid schemes). They spread like wildfire in Mormon Country, mostly because charlatans take advantage of church connections to bring people in on the ground floor, helping to build the pyramid.
I won’t go so far as to say that Melalueca is a pyramid scheme, but that’s certainly what my parents (and my LDS grandparents and uncle) believe.
liberta on February 23 at 9:02 a.m.
@duroc - I agree with you that there are alot of pyramid schemes out there that prey on people’s hope/need of making some extra income, but to paint Melaleuca with the same broad brush stroke is flat out inaccurate.
Just becuase your parents, bless thier souls, had an incorrect opinion doesn’t make them or you right.
A pyramid scheme by definition benefits only those at the top. Melaleuca pays out millions in commissions to hundreds of thousands of people every month. Yes there are those that are more successful but the company is based on the sale of real products to real customers. In fact, that’s the litmus test in my book - hundreds of thousands of households buying Melaleuca products because the products are great and they work - these are people who aren’t interested in making money - they just want great products. Far from snake oil!!
AngryBeavers on February 23 at 9:09 a.m.
That’s too bad for your parents, LDS grandparents, and uncle. If you take a close look at Melaleuca, you can tell it’s not a pyramid scheme and it’s not a scam. I personally know a number of people who’ve been skeptical of the company and found out for themselves that the business model is legit and the company is sound. Two weeks ago, a friend said that he had his accountant sit down with one of Melaleuca’s execs, lay the compensation plan on the table, and grill him. Did the accountant find anything fishy going on? Nope.
Check your facts for yourself, and you may be surprised. But, you probably won’t. Few people really take the time.
Lime on February 23 at 10:03 a.m.
Who knew snake oil could lower your LDL cholesterol by 70 points, clean your house better (and safer) than the stuff at the grocery store, and keep your hands from cracking and bleeding in the winter time?
I think I’ll keep it, thanks.
Sisyphus on February 23 at 10:20 a.m.
Wow, not like the astroturfing isn’t obvious or anything.
fortboise on February 23 at 11:17 a.m.
I don’t know about Melaleuca’s results, but the controversy is fueling HBO’s membership. Welcome to new posters Idaho gal, onemorevoice, liberta, AngryBeavers and Lime. Looking forward to your contributions on other topics.
As for MLM products, my favorite item in the household is McNess Krestol Salve, the 11 oz. tin we bought out of a charitable notion has outlived the gal who sold it to us, and is now starting its fourth decade of utility.
R_Tyler on February 23 at 11:56 a.m.
I have known about Melaleuca for over 5 years now, and I can tell you that the company is as upstanding of organization as you can find. I am very skeptical of what people refer to as pyramid schemes, and I can tell you that Melaleuca is nothing like any of those companies. As an Idaho resident I can tell you Mr. Vandersloot deserves a great deal of credit for all he has done for Idaho. His response seems to me to be a far more likely account of the events than what other media outlets have portrayed.
duroc on February 23 at 12:12 p.m.
Forbes Magazine thinks Melaleuca is a pyramid scheme:
http://www.forbes.com/forbes/2004/1011/089_print.html
Is Forbes part of the left-wing media conspiracy out to get VanderSloot?
The argument that you can’t get these kinds of products in grocery stories is ridiculous. Go to the “natural products” section of any standard grocery store or hardware store, and you can find the same sorts of products, but of higher quality.
Personally, I’d rather spend more money on a product that isn’t enriching Frank VanderSloot or built upon a pyramid scheme.
Isn’t VanderSloot a backer of Tom Luna and his education “reforms”? Seems like there were ads paid for by Melaleuca during the last election cycle. If true, that’s just another strike against the man.
But keep it coming, astroturfers. You’ve got to keep praising the man and the company, because that’s how a pyramid scheme works: You always need fresh faces further down the pyramid from you, so you can keep moving up.
There’s a sucker born every minute.
ShoshoneConservative on February 23 at 12:32 p.m.
Vandersloot MUST be rich, if he can afford to pay his or Melaleuca’s PR people to go around posting postive testimonials on blogs from parts of the state that hadn’t even really heard of either of them before this.
But they are kind of entertaining - sort of like those claims you see in infomercials.
Lime on February 23 at 4:11 p.m.
And you would know because you’ve tried them, right, duroc? So using a dishwashing detergent around my kids that doesn’t contain chlorine bleach makes me a sucker, does it? Using a medicated skin lotion that moisturizes better than Eucerin makes me a pawn in some pyramid. That’s real cute.
And thanks for the welcome, fortboise. I look forward to participating on future chats. I’ll admit the Mela topic got me here in the first place, but don’t think I’m going to ditch out now that I know what AWESOME discussions you polemics have around here.
powderfarmer on February 23 at 4:25 p.m.
Any names look familiar in the comments on this article: http://www.boiseweekly.com/CityDesk/archives/2012/02/22/lds-businessman-vandersloot-i-have-many-gay-friends
onemorevoice on February 28 at 9:32 a.m.
Who cares, powderfarmer. It’s a controversial topic and a story of interest. There have been a few recent stories calling Melaleuca a “pyramid scheme” and saying that Frank has muzzled the media and used bullying tactics. The accusations are false, and lies have been spread to the wind. So we’re clear, Melaleuca customers buy what they need directly from the company-they don’t inventory or resell products. With their biz model, people don’t buy extra inventory and then resell it, which is what a pyramid scheme is all about and how it can hurt people. It might sound trivial, but it’s a key reason why it’s not a pyramid as has been reported. There are other reasons too. Many people throw around that word without knowing it’s definition. As far as the bullying accusation, those reporters either made up or repeated a lot of inaccuracies, which is why Melaleuca went after them. If you’ve read the articles, do you honestly believe they were objective in their reporting? Their motives are suspect and their stories were smear pieces masking as news.
nic on February 28 at 9:37 a.m.
The carpet baggers must not know how a pyramid scheme works. Hey - I’m glad you buy their products and that you like their products. But people buy/use/like produces from many MANY other pyramid… ahem… multi-level marketing companies. BFD. If it’s shaped like a pyramid and markets like a pyramid, it must be a pyramid.
nic on February 28 at 9:39 a.m.
and by carpet baggers, I meant astroturfers. Though either term works.
duroc on February 28 at 10:08 a.m.
“onemorevoice” obviously doesn’t know what a Pyramid Scheme actually is. It has nothing to do with unsold inventory. It has nothing to do with customer satisfaction. It has to do with the basic organizational model of the “business,” which must have fresh meat on the ground floor in order to enrich the people higher up the pyramid.
It’s probably good for your mental health, onemorevoice, to believe that Melalueca isn’t a pyramid scheme. I’m sure the people in Jonestown didn’t think they were in a cult, but that doesn’t mean they weren’t.
fortboise on February 28 at 10:10 p.m.
Aw, Lime, then you had to go and spoil it by a premature attempt at being all snarky and stuff.
You are new here, there’s no hiding that, and you barged in. Reputation is built slowly, post by post. You can disagree with me (and others) all you like, but if you blurt out of ignorance, it will only make you look foolish. Maybe your enthusiasm for VanderSloot and his business is fully justified and informed.
That by itself is not enough to make you interesting.
onemorevoice on February 29 at 9:47 a.m.
Here’s a Wikipedia def. (I know, I know - but it was quick to find) of a pyramid scheme, which is the point that I’m defending here http://en.wikipedia.org/wiki/Pyramid_scheme
“A pyramid scheme is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.”
Melaleuca is the extreme opposite of this definition. If you compare that definition to Mel’s biz you’ll see the distinctions:
First, it’s a very sustainable biz - 26 years in biz with more than 60% of revenues still coming from the US, where it was founded. Pyramids die over time because only a few people (usually those who were placed at the top) make money and the rest can’t get rid of their undesirable inventory and become financially hurt. That’s anything but the case at Melaleuca, where many people who have recently joined make more money at referring new customers than those who joined years ago. This subtlety allows one to be rewarded for their performance, not where you’re at in the organization. Their biz model have proven sustainable b/c it actually works.
Second, every single person at Mel. purchases consumable products like the ones they’d find in grocery or drugstores. Most of the company’s customers are customers only (that point alone makes it not a pyramid scheme), but some also choose to refer others and get a commission check for doing so.
Third, Melaleuca’s sales folks get paid as their referrals buy real products that they’ll actually use every day, not for setting up others in business - another key point.
You criticized me for not knowing what a pyramid scheme is, and I’m trying to be reasonable, bring in an outside definition, provide data and explain how it is very different. I’m not an expert on this topic, but I know there’s a ton of misinformation about pyramids out there. You claimed it was a pyramid, and I’m saying with evidence that it’s anything but that.
P.S. There a policy known as the 70% rule - made from a case between the FTC and Amway. It has everything to do with unsold inventory. http://networkmarketinglaw.com/70-percent-rule/70-percent-rule/ You criticized me above, durac, but I think you are the one who is incorrect in this instance. You can deride me with your opinion, but it’s not based on fact.
duroc on February 29 at 9:57 a.m.
Did you know that Melalueca is a pyramid scheme? Did you know that many people are disturbed by the way VanderSloot uses his money to influence Idaho (and national) politicians?
Interesting.
nic on February 29 at 9:58 a.m.
onemorevoice - if I start selling stuff for Melaleuca, the person that signed me up will get a commission off everything that I sell. If I sign someone up, I’ll get paid commission for stuff that they sell, and the person that signed me up will get commission from the stuff sold by the person that I signed up. That is the VERY definition of a pyramid sales model. “that involves promising participants payment or services, primarily for enrolling other people into the scheme”
If I’m selling it, I’ll make more money if I (as you mentioned above) “also choose to refer others and get a commission check for doing so.” That’s how pyramid schemes work.
Melaleuca is a pyramid and the more you argue that they’re not proves more and more that they are. Granted, they do offer viable and consumable products. No one here is disputing that. Melaleuca has satisfied customers. No one here is disputing that either. But it is a mulit level marketing company with a pyramid shaped business model. For you to continue to claim the contrary is like you trying to convince me that a red tomato isn’t a tomato because tomatoes are supposed to be red.
nic on February 29 at 10:01 a.m.
“Second, every single person at Mel. purchases consumable products like the ones they’d find in grocery or drugstores.”
Really? Reading from comments above, those products are supposedly better and safer than those at the grocery store. Perhaps you and Lime should get on the same page before you continue astroturfing in the same threads.
duroc on February 29 at 10:07 a.m.
@nic: Do you suppose Lime gets a commission every time Onemorevoice makes a post on HBO? Perhaps they’re involved with an astroturf pyramid scheme, too?
Spudbob on February 29 at 10:18 a.m.
Dave: Can we vote to send a thread to the cooler? Since February 22nd I have learned far more about Mr. VanderSloot and Melaleuca than I ever thought possible. It is starting to hurt. Ow!
ShoshoneConservative on February 29 at 10:19 a.m.
This is on - what - page 3? Page 4?, and it’s still an active discussion. That must be some sort of record…
Frankly, I’d never even heard of Melaleuca before this all came to be a hot topic of news, and when I heard the name Vandersloot, the first person to come to mind was that guy in Aruba, then “oh, yeah - that rich guy who gives a lot of money to the Idaho Republicans.” It looks like Melaleuca is the same type of “pyramid” that Amway, and outfits like that, are. Some are quite successful, others aren’t - kind of like that episode of King of the Hill, where Peggy Hill and Bill Dautrieve get into a similar scheme. Maybe onemorevoice is a “Double-Diamond” sales rep?
But the “Astroturf” comments are so obvious, they’re amusing. A little like Ron Popeil-esque informercial testimonials. Keep them coming - they make my day go by a little quicker.
duroc on February 29 at 10:22 a.m.
@shocon and spudbob: Sorry for doing my part to extend this, but I can’t keep from laughing. Every time this thread dies the death it deserves, a Melalueca Astroturfer shows up to “set the record straight.” I can’t resist the temptation to respond, alas.
Spudbob on February 29 at 11:10 a.m.
@Duroc: Just can’t resist poking the sleeping blogopotomus can ya?
Well, it’s okay with me if it is something you just have to do.