Welcome to my doTERRA review
As the internet continues to become more accessible, there has also been an increase in the strategies that you can use to make money online, with some of the most well-known being multi-level marketing (MLM) and affiliate marketing. Both business models have faced their fair share of controversies, but MLM-based businesses, in particular, are often disregarded as scams due to the numerous issues that are usually raised by consumers. This review takes a look at doTERRA, an MLM company, to help you determine if it is a genuine company or a scam that you want to avoid.
WHAT IS DOTERRA?
doTERRA is an MLM company that was founded in 2008 by David Stirling, David Hill, Emily Wright, Corey B. Lindley, Mark A. Wolfert, Robert J. Young, and Gregory P. Cook. It is currently based in Pleasant Grove, Utah. The company sells a variety of essential oils and other similar products.
The company was first launched with 10 oil blends and 25 single oils. As of 2013, DoTERRA reportedly had around 450 corporate employees in locations such as Taiwan, Australia, Japan, and Europe.
doTERRA products are sold to customers through independent distributors who are referred to as Wellness Advocates. These distributors then receive commissions based on the sales that they make and the sales that other members of the organization make.
Stirling, along with other doTERRA founders had previously served as executives at Young Living, a business that produced essential oils and used the same model to promote and distribute their products. In August of 2013, Young Living brought a lawsuit against doTERRA, accusing the company of recreating their production process without consent. However, these claims were dismissed in 2014 when no similarities were found.
In late 2014, the USDA issued an FDA warning letter to the company for allowing distributors to promote its products as possible cures or treatments for cancer, autism, Ebola, and other conditions that violate the Food, Drug, and Cosmetic Act.
WHAT PRODUCTS DOES DOTERRA OFFER?
doTERRA offers a wide variety of products broken down into the following categories:
- Black pepper
Black pepper is hailed as providing digestive and antioxidant support when it is used internally and generally supporting healthy circulation. It retails at $29.33 with a wholesale price of $22.00.
- Blue tansy
This is an essential oil that is derived from the yellow-flowered Mediterranean plant. It has a high concentration in sabinene and chamazulene, and its main benefits include reducing the appearance of blemishes and soothing irritated skin. It retails at $115.33 with a wholesale price of $85.00.
Cilantro has a fresh clean aroma making it ideal for use in cleansing soaps as well as in food to give it a tasty and fresh flavor. When applied to the skin, cilantro has a cooling and soothing effect. It retails at $34.67 with a wholesale price of $26.00.
This is a blend of lavender, spearmint, rosemary, wild orange, copaiba, and other natural ingredients that are meant to help in elevating moods and increase the effectiveness in work and study. It retails at $50.00 with a wholesale price of $37.50.
- Citrus Bliss
This is a blend of wild orange peel, lemon peel, tangerine peel, vanilla bean absolute, and clementine peel essential oil, among other ingredients. It retails at $24 with a wholesale price of $18.
- Verage Immortelle hydrating serum
This is a skincare product that is intended to promote youthful-looking skin by providing hydration that reduces the appearance of wrinkles and fine lines. It retails at $86.66 with a wholesale price of $65.
- Fractionated coconut oil
This is a light and absorbent carrier oil that can be blended with any essential oil to soften and soothe dry skin. It retails at $16 with a wholesale price of $12.
- Slim and Sassy
This blend of ingredients (ginger root, peppermint plant, lemon peel, and grapefruit peel) is meant to help manage your hunger cravings and boost metabolism. It retails at $34.7 with a wholesale price of $26.
- Alpha CRS
This is described as a proprietary formula that combines potent levels of botanical extracts that supposedly support healthy cell function. It retails at $92.67 with a wholesale price of $69.50.
WHAT IS THE COST OF BECOMING A PART OF THE DOTERRA BUSINESS OPPORTUNITY?
To become an affiliate for doTERRA, you are required to purchase any one of the following packages:
- Family physician kit and beadlets – $150
- Cleanse and restore kit – $195
- Athlete + kit – $195
- Emotional aromatherapy diffused kit – $195
- Home essentials kit – $275
- Natural solutions kit – $550
- Every oil kit – $1775
- Diamond kit – $2500
Additionally, you also have to pay a $35 registration fee.
THE DOTERRA COMPENSATION PLAN
In addition to earning commissions for selling essential oils to customers, you also get to earn residual commissions as per the doTERRA compensation plan based on your rank.
There are 12 attainable affiliate ranks in the doTERRA compensation plan. Here is a look at the ranks and the qualification criteria you need to meet to achieve them.
- Wellness advocate
Sign up as an affiliate for the company and generate a minimum of 50 PV (personal volume) a month.
Generate and maintain a minimum of 100 PV a month and accumulate a total downline volume of 500 GV (group volume) per month
Generate and maintain a minimum of 100 PV a month and accumulate a total downline volume of 1,000 GV per month.
Generate and maintain a minimum of 100 PV a month and accumulate a total downline volume of 2,000 GV per month.
Generate and maintain a minimum of 100 PV a month and accumulate a total downline volume of 3,000 GV per month.
Generate and maintain a minimum of 100 PV a month, maintain a minimum of two executives ranked affiliates that you recruited as well as a total downline volume of 5,000 GV per month.
Generate and maintain a minimum of 100 PV a month and maintain a minimum of three elite ranked affiliates that you recruited.
Generate and maintain a minimum of 100 PV a month and maintain a minimum of three premier ranked affiliates that you recruited.
Generate and maintain a minimum of 100 PV a month and maintain a minimum of three silver ranked affiliates that you recruited.
Generate and maintain a minimum of 100 PV a month and maintain a minimum of four silver ranked affiliates that you recruited.
- Blue diamond
Generate and maintain a minimum of 100 PV a month and maintain a minimum of five gold-ranked affiliates that you recruited.
- Presidential diamond
Generate and maintain a minimum of 100 PV a month and maintain a minimum of six platinum ranked affiliates that you recruited.
Affiliates earn a 25% commission on the retail orders that are made by customers. Preferred customer orders, or retail customers who opt to go for monthly auto-ship orders to receive a discount, generate a 9% commission.
According to the doTERRA compensation plan, residual commissions are paid out through a unilevel structure. A unilevel compensation structure typically places a distributor/ affiliate at the top of a unilevel team, and every affiliate that they recruit will be placed under them. If any affiliate on the first level recruits new distributors, they will be placed on the second level of the original unilevel team. If any affiliate on the second level recruits new distributors, they will be placed on the third level, and so on.
Residual commissions are paid out to affiliates as a percentage of generated sales volume:
- Wellness advocate – 2% on the first level
- Manager – 2% on the first level and 3% on the second level
- Director – 2% on the first level, 3% on the second level, and 5% on the third level
- Executive – 2% on the first level, 3% on the second level, 5% on the third and fourth levels.
- Elite – 2% on the first level, 3% on the second level, 5% on the third and fourth levels, and 6% on the fifth level.
- Premier – 2% on the first level, 3% on the second level, 5% on third and fourth levels, and 6% on the fifth and sixth levels.
- Silver and higher – 2% on the first level, 3% on the second level, 5% on the third and fourth levels, 6% on the fifth and sixth levels, and 7% on the seventh level.
Fast Start Bonus
Affiliates are eligible to earn the fast start bonus for product purchases that are made by an affiliate that they recruit within 60 days of joining the company. This bonus is paid on three levels of recruitment, with the affiliate that brings in distributors receiving a 20% commission. Keep in mind that you have to maintain 100 PV of monthly auto-ship orders to qualify for this bonus.
Power of 3 Team Bonus
To be eligible for this bonus, you need to maintain a monthly auto-ship order of 100 PV, with a bonus that is paid out when you recruit an affiliate that does the same. You will also need to recruit three affiliates, and each of them will need to sign up for a 100 PV monthly auto-ship order. Additionally, your downline must generate a minimum total volume of 600 PV a month.
For each month that you meet the aforementioned criteria, you will receive $50 in bonus commissions. This bonus commission is then increased to $250 if three of the affiliates that you recruit qualify for the $50. If three affiliates then go on to qualify for the $250 bonus, the payout will be increased to $1,500 a month. This bonus is paid out to team members as long as the unilevel structure is maintained.
- The company has been in existence for a while
doTERRA has been in existence for slightly over a decade. This longevity is not as common as one might assume especially when it comes to MLM companies as many of them tend to lose business within a few years of being launched for one reason or another. This endurance provides a sense of security for prospective distributors working for the company.
- The compensation plan spells out how you can earn commissions
The compensation plan is clear on how affiliates working for doTERRA can expect to earn commissions – you are expected to recruit new affiliates as well as sell a specific number of products within a certain period.
Finally, I did a thorough research online to find any negative articles that I thought would be worth mentioning and could not find any. Other than litigation with a competitor (which doTERRA won) I did not see anything alarming. In fact, I did see some positive articles like job creations, high recognition and community service honors.
- The need for constant recruitment
One of the main ways you earn an income as a doTERRA affiliate is by recruiting new affiliates. Additionally, recruitment is also a requirement to rise from one rank to another and consequently increase your earnings.
- Low earning potential
You won’t make as much money as you might expect to work as an affiliate for doTERRA. According to the company’s income disclosure statement that is available online, only 1% of the whole distributor network succeeded to reach the leadership ranks (silver and higher), which means that more than 95% of the affiliates did earn very low incomes from the venture.
- The products are falsely hyped
The company received an FDA warning regarding how their products were being advertised to consumers. Claims that the products could heal cancer, autism, Ebola, and other serious conditions were dismissed. Such promotional tactics could inevitably create distrust among prospective customers and discourage them from making purchases, consequently affecting your commissions from sales.
doTERRA is a company that has proven it is legitimate in how it works, but because of the low earning potential, I would think long and hard before investing in it. Only those that have achieved the highest ranks receive considerable earnings, so unless you are up for meeting the strict requirements, I would suggest finding other strategies to make money online. What are your options?
WHAT IS BETTER THAN DOTERRA?
I believe that trading time for money is an antiquated way of making money. I prefer business models that make you money 24X7 every day of the year.
Affiliate marketing is that model and tons of people with the right specialized knowledge are making a mint doing it. You can too. If you want to start your own online business with no inventory, shipping or recruiting this method is for you.
There is no credit card required. I hope you take advantage of this opportunity. If you do, I will be on the other side ready to help you every step of the way.
Take control of your financial future today.
To your success,