Welcome to my doTerra review and the question if getting involved with this MLM company is a reliable income opportunity for you or just a plain ol' scam.
Are you looking for flexible working hours, have an entrepreneurial spirit, and love the idea of being your own boss?
Well it pays to do your thorough research before joining any MLM company, and doTerra is no exception.
There are a few not so pleasant things you should know about which I am going to discuss in my detailed review.
I will also talk about the joining process, the doTerra compensation plan and shed some light if you actually can make money with this MLM company.
If you are sick and tired of bothering your friends and family with your newest 'business venture', please read right to the end of my review.
I will share an alternative business model with you that doesn't require any selling or recruiting.
But for now, let's find out if doTerra Essential oils is a scam.
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Is doTerra Essential Oils A Scam?
The doTerra Company
Before deciding whether or not to get involved with one particular company, it is always a good idea, to get some background information.
And doTerra is no exception. Just like hundreds of other MLM companies, doTerra is based in Utah.
Young Living comes to mind, one of doTerra's biggest competitor. It is no wonder because some of doTerra's co-founders had been former executives of Young Living (YL).
So it comes as no surprise that YL filed a lawsuit against doTerra back in 2014 for theft of trade secrets but lost the case eventually.
Still, looking at both companies, there are quite a few similarities especially regarding the compensation plan and earnings potential.
Let's just say it doesn't favor any of these two companies.
The name doTerra is latin and means 'gift of the earth.'
Distributors are called Wellness Advocates and according to the company over 2 Million Wellness Advocates use and sell doTerra products in over 100 countries worldwide.
These are huge numbers considering that doTerra was only founded 11 years ago, in 2008.
The doTerra Products
doTerra has a wide range of products that includes way more then just essential oils. I was surprised to discover cleaning and weight managment products in the product range.
You can also buy personal care products like deodorants, a variety of skin care products, and even dietary supplements.
Most of the products cost significantly more than similar items one can buy on Amazon or other (online) retailers.
Whether or not you want to become a Wellness Advocate, you first have to enroll as a member for a $35 fee.
The membership saves you 25% on the retail price but it also means that you have to sign up for monthly auto-ship orders.
The annual renewal fee is $25.
How To Join doTerra And Become A Wellness Advocate
To become a Wellness Advocate, you click on 'Become a Member' and then you can decide on what kind of account you want to choose; wholesale customer or wellness advocate.
You then choose one of the enrollment kits starting at $150 wholesale. The most expensive one is the Diamond Enrollment Kit for $2750.
The distributor account gives you access to a doTerra replicated website, access to business tools and reports, and of course you can qualify for commissions.
Spoiler Alert: you will need to sign up for a monthly auto-ship of at least 100 PV to qualify for commission payments.
So be prepared to spend $100 each month on product purchases to earn money.
Which brings me to the commission plan...
The doTerra Compensation Plan
The doTerra compensation plan is very similar to other MLM companies in terms of commission structure, and requirements to achieve payments and certain ranks.
It is also a mix of a unilevel and binary commission plan.
Just to be clear, to qualify for any bonus and commission payments, ..." each Enroller must (1) have a Loyalty Rewards Program (LRP) template set to at least 100 PV for the month, and (2) complete a Qualified LRP Order." [source: doTerra policy manual]
The focus for distributors going forward is on enrolling wholesale customers and wellness advocates who then sign up for the auto-ship order also called LRP - Loyality Rewards Program.
Making sales as such seems to be of not much interest and doesn't get you extra bonuses and the likes.
Can You Actually Make Money With doTerra
Even though doTerra has pubslished an income disclosure, the most recent one from 2017, you won't find many graphics that highlight the average income for distributors at a glance.
DoTerra does show an earnings graphics for the higher ranks but we all know that most people don't even climb up the ranks.
Fancy some numbers?
According to the earnings disclosure, in 2017, 268 000 wellness advocates got paid a commission in the United States.
"This is approximately 20% of all U.S. based dōTERRA members who made a purchase from dōTERRA. The majority of those Wellness Advocates earned enough to pay for a portion, if not all, of their own purchases of the Company’s products." [source: doTerra earnings disclosure]
Interesting! So' distributors got paid a commission, and then they used the commission to pay for their personal purchases, so they can earn a commission?
It doesn't sound like, there was any money left for other things rather than get doTerra products.
Here Are Some More Numbers
Entrance level wellness advocates only earned an average of $375 a year, managers earned an average of $725, and directors averaged $1250/year.
Overall, it doesn't seem like there is a lot of money, if any, to be made with doTerra. These numbers speak for itself.
I am also taking into consideration that you have to spend at least a $100 on products a month and the fact that you have to recruit rather than sell products.
Finding people who are willing to spend lots of money on an enrollment kit and pay at least a $100 each month on products is no easy task.
So, I'd say that your chances of making an income are very slim.
Let's have a quick look at the Pros and Cons of doTerra.
The Pros Of doTerra
The Cons Of doTerra
Conclusion - Is doTerra A Scam
Based on my research, I can't really say that doTerra is a scam considering the product range and the fact that the products are available worldwide.
But! Asking distributors to purchase products each month to qualify for commissions is a big red flag.
Of course, you need to try the products but no one should be forced to buy them to earn a commission!!!
Also, doTerra puts so much emphasis on sponsoring rather then selling the products.
Looking at the income disclosure, there is only a slim chance to make an income. It looks like one would lose money then earn anything at all.
Here is what I would recommend to earn a passive income, without selling or recruiting.
My Recommended Business Model
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