We had a unique opportunity this month and found it very interesting to have taken advantage of it. My wife Sheryl received a notice from Melaleuca that had never happened before, at least not to us. Melaleuca was doing a live webcast. It was apparently prerecorded but only available while it was being cast.
The gist of the material covered was predicting what to expect in the near future in terms of the economy. Melaleuca does not use a crystal ball but as a company it is mission critical that they possess a full understanding of economics. The world in every way runs reliably on the mechanics of cause and effect.
As part of the presentation, several instances of being right in the past were cited—cases where Melaleuca publicly made predictions totally contrary to mainstream “experts” and those experts were wrong. Two such cases were they predicted the housing bubble collapse of 2008, and more recently, that inflation would not be temporary but get worse and that it is here to stay for a good long time.
The mainstream experts had a buzzword for it too, “transitory” which is a fancy way of saying temporary. At least 15-20 short video clips from the news media were presented with people obediently parroting the narrative. Well, we all know now how woefully wrong they were.
Here are a few important takeaways worth passing on. We can expect many things to increase in price and by a lot, but interestingly, two major purchases will be the exception: vehicles and real estate. Melaleuca went so far as to advise either type of purchase be held off for at least 6-12 months at which point the inevitable cause and effect factor will create huge supply with considerably less demand. In other words, price drops.
Another complete reversal is about to take place which also has a 6-12 month window before it happens. The labor shortage where businesses can’t find help won’t be their problem much longer. It’s about to morph into fierce competition for people to find jobs. Things always run full circle, don’t they?
The Melaleuca business model has survived every economic storm and this one is expected to be the same. Not only have they survived but thrived and grew. The webcast also pointed out that Melaleuca prices have been kept as stable as possible and they will continue that policy.
Here’s where things get even more interesting. This coming economic storm will cause people to seek ways to increase their income. Melaleuca provides that opportunity which is why they always grow during economic crisis’. The webcast did not say this but my own intuition tells me the historical 80/20 pattern that typically never fluctuates by more than 1-2 points could be soon changing. Melaleuca’s ratio of customers to opportunity seekers is that about 80% of customers are just strictly customers and only about 20% actively refer any new customers.
That 20% was me too! I will continue to present Melaleuca as a product driven company and never expect anyone to do anything more than try these great products—that means no pressure whatsoever. But I can’t help consider the possibility that more people will be interested in either getting their products essentially free or referring enough customers to get more back from Melaleuca than they spend on their own personal ordering. We’ll be seeing in the near future how this plays out.