美国《Forbes 400》福布斯杂志专访美乐家CEO范德士原文:(下方中文翻译)
Forbes 400
If You Believe
Phyllis Berman, 10.11.04
Put your faith in thrift, hard work and Melaleuca's household products and you can better your lot in life. Also Frank VanderSloot's.
Frank L. VanderSloot sells items like Classic Tooth Polish ($3 a tube), Replenex (90 glucosamine pills for $10) and Nicole Miller Timeless Age Defying Serum ($18 a bottle). He doesn't hit the road himself to ring doorbells. At 56, his sales days are far behind him. He leaves the pitching to an army of part-time hucksters who sell these and 350 other household and "health" products for Melaleuca, his privately held firm in Idaho Falls, Idaho.
Melaleuca is a pyramid selling organization, built along the lines of Herbalife and Amway. Vendors get commissions on the products they sell and also on products sold by vendors they recruit. From a near-standing start 19 years ago, VanderSloot has built his firm up to an expected $620 million in volume this year, roughly half of that to be paid out to the vendors as commissions. A few of them make a very good living off Melaleuca; most do not. Enough of the money lands at the top that VanderSloot's 50% share of the business, we estimate, is worth $700 million.
"This is not a get-rich-quick scheme," says the entrepreneur, referring to what his sales force can make, though he insists that the income of a hard-working "marketing executive" can still "make a real difference to a family earning $30,000," he says.
Such talk sounds patronizing--until you realize that VanderSloot seems to believe his own sermon. Ever since he took over what was then a small and poorly managed company in 1985, he has preached (and practiced) frugality: Live within your means, he frequently tells his sales force, pay off your debts, think twice about that new car. You see it reflected in the 36,000-square-foot headquarters, a two-story concrete affair (and former hardware store) in a strip mall. And, in a departure from many multilevel marketing schemes, VanderSloot is insistent about not burdening new recruits with huge startup costs or a garageful of inventory. Everyone buys a $29 kit, crammed with sales materials for demonstrations as well as VanderSloot's motivational tips, and signs up to buy a minimum of $45 a month worth of Melaleuca wares--from a $2 Hot Shot, a breath spray, to a $30 bottle of ProVec CV, a grape seed extract that supposedly reduces LDL, the bad cholesterol. (VanderSloot says anyone can opt out of the $45 commitment.) Most of the items have a health or environmental flavor to them, like sunscreen with Vitamin E or phosphate-free detergent.
VanderSloot is pretty up-front about how tough it is for most salespeople to earn any money. And unlike, say, Amway, Melaleuca tells its new recruits that they're starting out as customers on the bottom of a towering pyramid. There are approximately 150,000 of these participants, buying the soaps and potions for themselves but not yet making any significant sums from their 7% commissions (350,000 people are pure customers). As they move up the rungs, though, they can see some revenue, because they get 7% as well on sales by vendors they have recruited (the chain of commissions extends to seven levels). It appears that there are 30,000 or so serious players near the bottom averaging $1,750 a year in commissions.
The big bucks, of course, go to those who sign a large number of disciples who go on to recruit other vendors. Senior directors, as they're called, have 650 customers in their network, of whom 25 or so are actively recruiting. Executive directors claim 2,400 or more customers, with perhaps 90 of them on the proselytizing trail. This crew of veterans, of whom there are 359, can expect $186,000 a year in commissions plus $1,000 a month from Melaleuca toward their automobile costs. Leading producers: three presidential directors who got commissions topping $1 million in 2003. VanderSloot thinks five people will scale those heights this year.
Before VanderSloot bought into the company, it subsisted on a handful of products tied to the melaleuca, or "tea tree" of Australia. Discovered in New South Wales in 1922, the melaleuca sprouts leaves that supposedly have antiseptic and analgesic properties. Colleagues at Cox Communications, where VanderSloot was a regional vice president, were so skeptical of his move that as a parting gesture they set up a tree and strung tea bags from it.
VanderSloot soon discovered the company's putative 80% ownership of the tea trees in Australia was really more on the order of 5%. Moreover, Melaleuca's claims about the health benefits of oil extracted from the leaves of the trees were a bit shaky. And distributors were griping about being forced to purchase large amounts of inventory that piled up in their garages.
VanderSloot shut down the company, purchased its inventory, trademarks and product recipes and rechristened it Melaleuca. Half his 1,000 distributors quit. Reason: They couldn't pass along tons of inventory to salespeople below them in their networks, thereby depriving the earlycomers of quick profits. "At the beginning it was just me and some ladies in the office," he recalls.
To rebuild the business, VanderSloot created an R&D department that evolved into a 20-person staff, including three Ph.D. chemists. The company has racked up nine U.S. patents--from inhibiting adenosine (an enzyme that prevents fat-burning) in an energy bar to the use of benzophenone in a shampoo to protect hair from ultraviolet exposure. VanderSloot insists his salespeople also tout the price advantage of his products. Melaleuca's detergent, for instance, costs 16 cents per load versus 28 cents for Tide.
There have been bumps. In 1991 the Idaho attorney general's office investigated Melaleuca because some of its vendors were claiming that the business had the seal of approval of the Idaho attorney general's office, when it hadn't. The company signed an assurance of voluntary compliance, promising to police its sales force. Since then that state office has received 120 complaints about Melaleuca, mostly gripes from customers who didn't realize their credit cards would be automatically debited $45 a month or thought the company too slow to credit their accounts for returned products. The AG's office says it has resolved them all.
A different problem emerged in 1998. When sales flattened, VanderSloot did some digging and discovered that some senior directors were living off their residuals and doing little in the way of recruitment. Result: a new policy that reduced payments to those who didn't either bring in new converts or help others do so. Since then, company revenues have grown at a compound annual rate of 12%.
Most Melaleuca salesfolks work hard and listen to VanderSloot's advice about cleaning up their lives. Cathy Blandino of Las Vegas recently sent him a package containing the shredded remains of her 36 credit cards, on which she owed $64,000, all paid off over five years with help from her company earnings (she scaled back her efforts and brought home $5,800 last year). "We could never have done this without Melaleuca," she added in a note.
VanderSloot reinforces the message. When one of his sales staff pays off a home, he flies to the nearest airport, shows up and throws a mortgage-burning party. Over the last four years he and his wife, Belinda, went to 31 such events. That's on top of all the incentives to spur sales, from $2 inspirational tapes and an annual Fourth of July party in Idaho Falls (the largest display of fireworks west of the Mississippi) to the lure of car payments and exotic vacations with Frank and Belinda for the biggest producers.
Corny though they are, these gestures go the heart of VanderSloot's values: hard work, decent rewards and simple living. Growing up on a tiny farm in Cocolalla, Idaho, VanderSloot, a devout Mormon, milked cows and fed the chickens while his father worked all week on the railroad. He put himself through Brigham Young University by selling beef jerky in bars and convenience stores. He spent 15 years as a middle manager at ADP and Cox. Though he is a rich man today, VanderSloot is only now allowing himself a few indulgences--a herd of Black Angus (see sidebar, p. 90) and a recently built 10,000-square-foot, 17-bedroom home (cost: $1.5 million).
He sure doesn't spoil any of his 14 kids, ranging in age from 14 to 33. VanderSloot signs a contract with each one detailing his expectations. Starting at age 12, they all get full-time summer jobs, usually at fast-food joints, then work two hours at a job--sometimes on VanderSloot's ranch--each day after school. He has agreed to pay for college if they maintain a 3.0 average (two had to drop out). Dad doesn't pay for their weddings; instead, he offers the brides a set amount--he won't specify how much--to spend as they want. "Tell 'em that and soon they say, ‘We can do without all those fancy flowers,'" he explains.
VanderSloot dabbles in politics. In 1999 he spent an undisclosed sum to sponsor billboards around the state asking rhetorically whether taxpayer money should be used to support It's Elementary, a public TV program exploring how four schools dealt with homosexuality. Two years later he supported radio and TV spots knocking Morgan Stanley Dean Witter's Idaho Falls office because its New York headquarters had invited former President Clinton to speak at its bond conference. One of his favorite causes is Concerned Citizens for Family Values, which in 2002 paid for ads that helped defeat a defense lawyer--"A liberal's liberal," says VanderSloot--running for state attorney general.
Most of his energy still goes into building the business. Melaleuca has pushed overseas, with 25% of revenues coming from Taiwan, Korea, Japan, Australia, New Zealand and the U.K. Now he's selling services, too, including a Sprint calling plan and a dial-up Internet connection. (He's dropping discount travel since he can't compete with the likes of Expedia.com.) The latest thing: home mortgages. Sell for Melaleuca for the next 30 years and you'll get a free burning party.
美国《Forbes 400》杂志专访美乐家范德士总裁译文
法兰克·范德士所生产的产品包括洁齿牙膏、劲捷能、以及妮可.米勒时光多酚精华液等;也不是挨家挨户亲自贩售,今年56岁的他,早已告别业务员生活。在范德士位于爱达荷州的美乐家公司里,有一群阵容强大的兼职事业代表团队,可以帮他传播产品品项达350种之多、都是健康取向的家庭用品。
美乐家是一家消费者直购的公司,与康宝莱、安利…等公司统称为组织行销公司是大不相同的。事业代表赚取顾客消费产品所得的利润分红,以及他们介绍进来的新顾客购买产品时,所产生的利润分红。从19年前创业维艰成立美乐家,到2004年营业额超越6.34亿美元,其中大约有一半左右付给事业代表作为利润分红。不少事业代表在美乐家获得非凡自由,而大多数事业代表也在努力中。有许多的额外奖金是设计给高阶事业代表,以范德士所拥有50%以上的公司股份为例,我们预估他大约有7亿美元的身价。
谈到事业代表的收入,范德士认为「美乐家提供的并不是快速致富的方法」,但他坚信,一位辛勤工作的事业代表的年收入,与平均年薪三万美的美国家庭相比,绝对有很大的差异。
这句话或许口气很大,但是连范德士本人都深信他自己的这个信条。自从他于1985年接手这家当时经营不善的小公司时,便倡导并且力行勤俭之道;他经常告诉事业代表们:不超支、把贷款还清、换新车前请三思……等。在美乐家总公司可以看到这个原则;总部位于商店街中,面积36.000平方英呎的两层式水泥建筑。另外,与其它直销公司最大的差异是,在范德士的坚持之下,新会员不需要高额创业金,也不需预购大量的商品囤货贩卖,每一位事业代表会购买一套29美元的美乐家富足锦囊-包含产品目录以及范德士激励语录;并约定每月购买45美元的美乐家产品~从2美元的口腔芳香喷剂,到30美元的宝维适CV等各项产品(任何人都可以选择退出45美元固定消费额的约定)。美乐家产品以健康和环保为诉求,例如防晒乳液添加维他命E,或是洗碗精不含磷酸盐等。
范德士很坦白地表示,对许多美乐家的事业代表而言,一开始赚大钱并不容易。美乐家很明白地告诉新会员,他们必须从优惠顾客开始进入这个事业。目前约有15万兼职事业代表,购买产品自己使用,但并不以赚取佣金为主(美乐家约有35万纯消费型会员)。当这些最基层的事业代表往上晋升时,才会开始赚取佣金,随着他们新推荐会员的消费行为,开始赚取7%以上的佣金(最多跨七代)。目前,全球大约有三万名基层经营者,年平均佣金为1,750美元。
在美乐家真正赚取丰厚收入的,是推荐「有能力推荐新会员」的资深总监级以上经营者。一位资深总监的组织约有650位的会员顾客,其中大约有25名会积极推荐新会员加入。执行总监则大约有2,400位以上的会员顾客,其中有90名左右的积极经营者,会持续进行推荐。这群资深的美乐家执行经营者,共计有359名,每年平均可获得186,000美元的佣金,以及每月1,000美元交通津贴。金字塔最顶端的领导人~2003年有三位企业总监,每位平均领到1,000,000美元以上的佣金;范德士认为在2004年大约有五位企业总监可以达到这个水准。
在范德士开始经营美乐家之前,这家茶树精油公司即经营许多与茶树精油相关产品。在范德士加入这家茶树精油公司之前,他原本是考克斯通讯公司的区域执行副总;同事们对于范德士加入茶树精油公司的决定抱持怀疑心态,在欢送时,同事们甚至还找来一颗树,上头挂满了茶叶包。
在加入这家茶树精油公司之后,范德士很快地发现,原本公司号称拥有80%澳洲地区的荼树所有权,实际约只有5%而已。而他们对外宣称的茶树精油拥有的健康功效,也缺乏科学根据;另外,当时经销商也抱怨被强迫买下产品,造成囤货压力。
范德士不喜欢这种营运模式,决定买下茶树精油公司加以重整,创立美乐家公司。当时约1,000名的经销商中,有一半选择离开。原因是他们无法处理库存问题,也因此无法赚取佣金。范德士忆及当时情境,提到「办公室就只有跟几位女士而已」。
为了重新打造美乐家公司,范德士成立「研发部门」,现在这个部门由20名研发人员及三位化学博士所组成,阵容强盛;因此美乐家已累计取得九项美国专利,例如活力棒、丝毫护发造型系例等。范德士也坚持事业代表一定要跟消费者提到产品价格优势。如相同品质价格更优惠,相同价格品质更优质。
美乐家经营史也不乏遇到挫折之时
1998年业绩成长迟缓,范德士深入深究后发现:某些资深总监级经营者,领取佣金后安逸于优异生活,不再积极推荐新会员。于是宣布一项新政策:经营者必须持续推荐新会员,或是帮助伙伴推荐会员,才能获得佣金发放。从那时起,美乐家每年的年平均业绩成长率皆达12%.对会员的激励方式,也显现范德士的核心价值:辛勤工作、可观的报酬以及简约的生活方式。
大部份的美乐家事业代表在辛勤工作时,也听从范德士的忠告:要让生活保持简单不负担。拉斯韦加斯的Cathy Blandino,寄给他一个包裹,里面是她36张被剪碎片的信用卡。在公司收入的帮助下,五年内还清高达64,000美元的信用卡债。
Cathy并在包裹里放一张纸条写道:「没有美乐家,我们不可能做得到!」
范德士大力倡导简约生活原则。当他的事业代表付清房贷,他会飞到最接近他的的机场,在当地举行并出席「终结房贷派对」:过去四年来,他和妻子Belinda已经参加31场派对,此外,他运用各种奖励方法刺激业绩,从2美元的激励瀑布派对、汽车赠予等,都是常用的激励方法。另外,最顶尖的事业代表,还可以与范德士及其夫人一同到国外旅游渡假。
这些激励方式或许简单,但却显现了范德士的核心价值观:辛勤工作、可观的报酬以及简约的生活方式。范德士是一个虔诚的摩门教徒,成长于爱达荷州Cocolalla镇小农场,他的父亲每日在铁路公司辛勤工作时,他则会帮忙家里挤牛奶及喂鸡。他靠着在酒吧及便利商店卖牛肉干的收入,完成杨百翰大学学业。之后,在ADP及Cox公司工作15年并任职中阶主管。今日,即使范德士拥有上亿身价,他依旧只有一、二件奢侈品,例如一群黑安格斯牛、一栋价值150万美元的新房子(17个房间、占地一万平方呎)。
范德士对14名子女的管教方式也相当严格,决不溺爱。他与每位子女都签一份合约书,详载对每位子女的期待。所有子女从12岁开始,每年暑期都要在餐厅或快餐店全职工作;另外,求学期间在每天放学之后必须工作2小时。他同意支付子女的大学学费,条件是每学期平均成绩必需在GPA3.0以上(有二位子女因而退学)。范德士不支付子女婚礼费用,但是他会给新娘一笔钱供婚礼使用,若有剩余,则可自已留用。范德士进一步提到,不久之后他的子女们会了解:「婚礼,其实并不需要华丽的鲜花来装饰!」
当然,范德士的重心仍然放在「如何扩展美乐家的事业版图」。美乐家早已拓展至海外市场,目前25%的营业额来自中国台湾、日本、韩国、澳洲、纽西兰以及英国。而现在美乐家业务也与服务结合,包括Sprint电信公司的电话服务,以及因特网的拨接服务。目前最新的服务,则是缴清房贷的项目!只要在美乐家工作30年,您就会获得一个免费的「终结房贷派对」
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