The Company: Young Living
Founders: Gary and Mary Young
Startup Cost: $45
Chances are you've been approached by someone you know and are doing your research into the business opportunity to learn more. Nice work, those presentations are always a bit one sided in my opinion and in this review I'll give you my unbiased opinion on how this stacks up.
Young Living was established in 1994 by Gary and Mary Young as a network marketing company selling essential oils and other health and wellness products. Their headquarters is in Utah and they have operations right around the globe.
The product range consists of essential oils, vitamins, beauty and other products harnessing the power of nature to help people achieve optimal health and wellness. They have a process known as Seed to Seal which according to Gary ensures the absolute best of quality in all of their oils.
Their main farm is located in Utah and they have 10 partner growers around the globe that apparently all adhere to these high standards.
It doesn't appear as though they have much in the way of third party research supporting their claims but they do engage some kind of independent testing according to their website. They also have a panel of 'advisors' like a lot of mlm's but the truth is most of these guys are on the biased in some way (eg. on the payroll or getting free product) so I don't really care a whole lot about what they are saying.
That said, the products do seem pretty legit overall. I'm certainly no expert in essential oils but they seem pretty good. Whether or not they're worth the high prices is another thing. For example one bottle of Basil essential oil is about 4 times the price of a well known and established competitor from iHerb.com according to the companies latest price list.
This is often the case with mlm's, the products typically cost a lot more money and it really comes down to 'perceived value' as oppose to actual value. Whether you think they are worth this kind of price or not is entirely up to you.
Personally, I think they are somewhat better than their key competitor doTERRA simply because they use a lot less hype, have been around for longer and provide more information on their products and where they are sourced. That's my opinion anyway.
I have also published an article about selling Young Living online which will give you some insight into selling these products on the Internet.
The Opportunity & Compensation Plan Explained
The basic idea is that you buy some products and then share this with others who then become customers and recruits. Your recruits then recruit and you earn on what they do as well.
The foundation of this opportunity is broken down into three main sections as per the official compensation plan. These are foundation, building and leadership. Each main section contains 3-4 ranks with varying requirements to achieve them.
How You Can Earn
Selling Product At Retail: If you can get a customer to the company website to buy product through your referral ID then you can make 24% profit on whatever they buy. The problem with this is that anyone at all can sign up to get the same wholesale prices as you for only US$45 for a basic starter kit.
Given this starter kit contains a lot of 'tester' like products and it's very affordable I imagine a lot of people buying this. The bad news is you'll make zero dollars from their order as a customer but the good news is you have a new recruit which allows you to earn in different ways as I will now illustrate.
Fast Start Bonus: You can earn a 25% bonus on any new recruits purchasing within their first 3 calendar months, capped at $200. You can also earn 10% of that new recruits recruit in their first 3 calendar months up to $200.
Starter Kit Commission: If your new recruit purchases a 'premium' starter kit for between $160-$170 then you get a cool $25.
Downline Commissions: You can earn between 4-8% on the overall volume of spending in your downline organisation up to 5 levels deep depending on what rank you are at. At the base ranking of 'distributor' you can earn 8% on your first level and 5% on level 2, by the time you reach 'executive' status you are earning on all 5 levels at 4% between levels 3-5.
Generational bonus: Once you hit 'silver' rank you unlock a new earnings potential that allows you to earn in addition to the basic downline commissions I just explained.
Here's how this works...
Personal Generation: Earn a 2.5% commission on everyone in your downline up to the next silver status rep in any one of your legs. A leg is just whoever is under you directly and anyone they sponsor, like a tree branch. For example: I sponsor Sue and she sponsors Bob, who sponsors Jenny and this continues until your 'Sue leg' has 34 recruits. The 15th recruit in this leg does well and reaches silver status so your 2.5% commission stops at the 15th recruit.
Generations 2-8: Once you hit that 15th silver member I illustrated in the example and your earning stops, you are then able to earn a commission of between 1-3% on that silver reps downline until they reach their next silver.
This keeps on happening down 8 'generations' deep and each new generation starts with a new silver rep.
See the below picture to see what I am talking about visually:
The cool thing about this is that you could potentially earn these commissions unlimited depth in each leg since it continues until it reaches the next silver rep in each generation. They are only small commission but potentially a nice bonus if you have a large enough organisation.
Bonuses: There are various bonuses on offer to encourage top performers to do better.
Getting Started And Staying Active
To get rolling with this company will cost you between $45- $170 depending on which starter kit you buy. Staying active is a matter of achieving 100PV p/m which equates to a minimum of $100 of personal purchasing each month.
That's a lot of oil and health products but if you can get retail customers buying from you then their purchases will go towards this quota.
The Income Disclosure
Like most mlm's the numbers reveal a bit of a sad story and in this case I am left wondering why they haven't provided a current statement on their website.
This income disclosure is from 2013:
This document reveals that 92% of all reps in this company make about $1 per month...
Looking further, 95.1% of the people at 'star' rank and above are making 7.4k or less per year on average.
This means that 99.6% of the entire Young Living organisation of representatives earn less than $7,404 per year on average. In other words almost all people are making far less than minimum wage on average.
Still think your chances are good by simply chasing family and friends? Not likely.
I don't tell you this to put you off and you can absolutely create an income with a company like this. But you should definitely be prepared to venture beyond the people you know and those they know.
What I Liked
- Seem like reasonable products
- Not the most overhyped company from what I have seen
- Starter kit cost is low
- They provide an income disclosure
What I Didn't Like
- They encourage people to hustle family and friends which sucks
- They do not provide a link to the detailed compensation plan on their website
Overall I would say this is a pretty legit network marketing company. There are some drawbacks, but it's pretty reasonable based on my research. One of the biggest reasons so many are failing with this company is because they teach people how to build a business using the warm market strategy.
That might work for the company since people will stay buying product if they are making 'something' but it will clearly not make you the kind of money you are wanting. Either way, if you like the products and you are prepared to put the work in, no doubt you could create an income with this company. Is it the best opportunity going? I don't think so, but I'm not really into essential oils either. Whatever you decide, I hope this helps!