Today I am going to be walking you through the doTERRA business opportunity to show you exactly what to expect as a newly recruited rep. I look at the costs, the ways you can earn and give you my insight into this company to show you how it compares to others.
I am NOT a rep for this company or affiliated with it in any way, so this is a totally unbiased review.
About The Company
This company was founded in 2008 by David Sterling and distributes health and wellness products through an mlm business model, their primary focus is on essential oils.
According to BestCompany.com David Sterling used to be part of an mlm company called ‘Young Living’ that also specialises in essential oils. There have been legal battles concerning the alleged use of Young Living trade secrets in producing doTERRA’s range, however this was never proven by the courts.
The company was also issued a warning letter in 2014 by the FDA for making unsubstantiated health claims on social media such as curing Ebola, treating cancer and other nonsense.
How Do The Products Stack Up?
Before we look into the business side of things I think it’s important to analyse the products themselves to see how they compare to others in the market.
Admittedly, my first impression was “here we go again… another health and wellness mlm company claiming to have the secret sauce to mankind’s optimal health, when in reality it’s just overpriced and overhyped”.
Was my first impression right? You be the judge…
The first thing I did was I looked at some of the individual bottles of oils and worked out what the prices were like in comparison to others. A bottle of Coriander at doTERRA retails at US$34.67 and every other competing product with very similar claims of the science and testing behind it came in anywhere from half the price to over 6 times cheaper!
Here’s just one example of a comparable product…
They are definitely a lot more epxensive than trusted and well established brands, but what about the science behind it? Is there some legitimate reason they are worth so much more money?
Here’s why the company tells us we should buy this stuff:
The problem is, none of that actually means anything other than the company claiming they are great.
Ok… to be fair all of their products meet the official ‘CPTG’ certification standard which makes their products way better quality than anyone else in the market… or does it?
I’m sorry but this is totally one sided information with zero credibility in my opinion. Literally ANY company could make these claims about themselves, this ‘certified process’ is not accredited or evaluated by any reputable third party organisation.
Whats more is that most (if not all) of their Doctors, nutritionists and scientists are on the payroll. Yes these people do know what they are talking about (or at least should) and they do have credibility as health professionals, but anything they say is clearly skewed in favour of the company.
The bottom line is that the product value is massively inflated by the use of clever marketing and by getting endorsements by biased health professionals. They are also much more expensive than well known, trusted and positively reviewed alternatives.
Maybe they are good, but I am not convinced they are worth up to 6 times the price and I believe many others would feel the same way.
The Business Opportunity Explained
We’ve taken a brief look at the products so now I want to turn your attention to the business opportunity.
The opportunity works on a multi level marketing business model whereby you can recruit people, who recruit people and so on and earn money off their efforts and by selling products to people directly. This company use a ‘unilevel’ plan which allows you to earn infinite levels wide and 7 levels deep.
The company policy manual details the compensation plan and contains related information, the following will break the compensation plan down in plain english.
How You Can Earn
Selling The Product: As an ‘Independent Product Consultant’ you can buy products at wholesale. When you refer people to buy these products from your website you will earn a 25% commission.
If they decide to become a preferred customer then you are eligible to earn 15% on the total volume of these customer orders each month. Becoming a preferred customer is as simple as paying a once off $25 registration fee and it gives the preferred customer a 20% discount. It would make logical sense for any customer to do this if they were going to spend in excess of $125 in their lifetime, which would easily happen if the products really are that great.
For an extra $10 ($35 total) they can become a rep and buy at wholesale, meaning 25% off. This would make logical sense if they intended on purchasing $140 or more of product in the next year.
I think it’s safe to say you are going to be earning 15% commissions on product sales most of the time given the extremely low barrier to becoming a preferred customer. This is not a bad commission rate in general but to make any real money in this way would logically require a lot of purchasing from a lot of different people.
Any one customer buying tons of product would just become a rep, which means you make no money at all, so you need to be selling lots of product to lots of people.
There’s only one problem with that though, you’ll be selling this to family and friends and unless you are insanely popular this is going to be extremely difficult.
Fast Start Bonus: You can make between 5-20% of whatever your new recruits sell or buy themselves within their first 60 days, this travels 3 levels deep. You must be purchasing 100PV through the ‘Loyalty Rewards Program’ (LRP) each month for this to take effect which equates to $100 or more worth of purchasing every month at wholesale prices.
Power Of 3 Bonus: This is a monthly bonus paid above other commissions and it works like this;
- You need to be ordering $100 or more of product on the LRP program each month
- When 3 of your first level have a 100PV LRP order for the month you get paid $50 (3 recruits spending a total of $300 or more each month on auto ship)
- When these three have three on their first level who have the same 100PV LRP order you get paid $250 (12 recruits spending a total of $1200 or more per month on auto ship)
- When you help three people in your first level achieve the $250 bonus, you get $1500 (39 recruits spending a total of $3900 or more per month on auto ship)
This is actually a pretty cool bonus structure but it will require a massive purchasing commitment from a lot of recruits to get the big biscuits.
Uni level Organisation Residuals: You can earn anywhere from 2% to 7% commissions based on your organisations total volume each month according to your rank within the company up to 7 levels deep.
Getting Started & Remaining Active
To get started only costs $35 but to stay active will cost you a minimum of $50 p/m at the base rank to $100 p/m from ‘Manager’ rank onwards. This is cheap to join and you get the replicated website for this price, the monthly quota is about average for an mlm company.
First Year Cost Estimate
This is an estimate on the cost of being in business with this company in the first year based on current prices, always do your own research before making any decisions.
Joining Fee= $35
Staying Active= $1100 (I would estimate getting to manager rank after 2 months)
Seminars, Conventions and Associated Travel+Accommodation= $500
This is not the most expensive mlm company to be part of within the first year based on my other reviews, it’s about average.
What I Liked
- I like the idea of essential oils in general, although I haven’t really got into them much as of yet
- The compensation plan is relatively simple in comparison to other mlm’s I’ve seen
- The overall price of being involved is not extreme
What I Didn’t Like
- The company inflates the value of their products without substantiating these claims with credible and unbiased third parties
- They do not provide a link to the detailed compensation plan on their website
- They do not provide the average earnings of their reps
- The main focus will definitely be on recruiting given the low cost to become a rep and get wholesale prices
- They teach reps that the best way to build their business is with the warm market approach
- The products are expensive in comparison to trusted and more established brands
- You’ll probably end up with so many bottles of oil you’ll never use them all, you are paying for the privilege of promoting their products
After reviewing the company it seems they are very similar to a lot of health and wellness mlm’s that boast incredible and life changing products with very little facts to justify the lavish price tags they attach to them. Personally I’m not a fan of health and wellness mlm companies since the vast majority are like this.
That said… if you love essential oils and believe these to be truly great products that are worth every cent, then go for it!
Keep in mind that this is going to require a lot of recruiting and selling in order to create a decent residual income. It will be near impossible to achieve this kind of success just by hustling family and friends alone, these leads will inevitably run out.
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