Table of Contents
- WTF Are Essential Oils?
- doTERRA: Who Are They?
- How doTERRA Started
- Are doTERRA Essential Oils Safe and Organic?
- Compensation Plan: How The doTERRA Business Works
- Bottom Line
WTF are Essential Oils?
It’s 2018 and unless you’ve been living under a rock — or maybe in Wyoming — you’ve probably heard about the MLM doTERRA.
Or, at the very least, you’ve heard someone mention “essential oils”.
And no silly goose, I’m not talking about the kind from fish or olives.
To some, these plant-derived elixirs represent a cure for everything from anti-aging to the common cold.
To others, they represent an opportunity to start a direct sales business and make some serious bank.
That’s right, essential oils have invaded the MLM space…
Now run for your lives!
Between word-of-mouth marketing, home parties and full-fledged conferences, essential oils are sellin’ like Glocks at an NRA convention.
And from the looks of things, this “EO mania” isn’t slowing down anytime soon.
Even so, the general population still knows very little about essential oils, which means that this market is (amazingly) still in its early stages.
So does this mean that you should sign up as a distributor in 2018?
Y’know, become an Essential Oil Tycoon and get ahead of the curve before the market hits critical mass?
Not so fast, Slick.
For the record: I have nothing against essential oils — I actually think they’re a fantastic product.
So What Exactly Are Essential Oils?
Without getting into the boring technical details, essential oils are basically organic compounds that have been distilled from plant materials.
Things like roots, leaves, stems, flowers, etc. which have been shown to have positive health benefits in a wide variety of applications.
Many aromatherapists, naturopaths, and other health-conscious peeps swear by ’em.
Don’t forget that word-of-mouth is the primary driver behind a company like doTERRA doing literally BILLIONS of dollars each year.
That says a heckuva lot about the quality of the product.
But in terms of the doTERRA business opportunity, you might wanna think twice.
So what exactly am I saying here?
Half the time, probably not much.
In the spirit of fairness, I’m not just gonna point out the downside here.
(That would be too easy.)
Instead, I figured it would only be right to provide a detailed review of the doTERRA company as well as the business opportunity.
That way, you can hopefully decide — once and for all — if this is a good fit for you or not.
That being said, if bacon grease really IS your essential oil of choice, you can safely skip the rest of this article.
Now, let’s get crackin!
doTERRA: Who Are They?
doTERRA produces and distributes a wide variety of health and wellness products that contain essential oils.
And they’re pretty damn good at it.
This is largely accomplished through their massive network of three million distributors (known as “Wellness Advocates” in doTERRA-speak).
With the help of a robust back-end operation that includes over 1,800 employees, offices in 17 different countries, and a 383,000-square-foot corporate office and manufacturing center in Pleasant Grove, Utah.
In other words, doTERRA ain’t exactly a humble “mom and pop” operation.
So how exactly did this essential oil empire come to be?
Simple: they were funded by Columbian drug cartels.
How doTERRA Started
doTERRA was founded back in 2008 as the brainchild of a team of executives who used to be part of another essential oil MLM called Young Living.
This highly capable and experienced team has been one of the golden keys to the company’s meteoric success.
You don’t have to look hard to see that every aspect of the company’s strategic direction revolves around two main objectives:
- Educating people about the many benefits of using essential oils and promoting a wellness lifestyle. And…
- Offering an ever-expanding line of EO-based products for their distributors to sell and recruit others into the MLM business.
This strategy has obviously paid off in spades, creating a juggernaut of a company that has experienced ridiculous growth by any standard.
And if going from $0 to over $1 billion in sales in just seven short years is any indication, it seems that doTERRA definitely has their sh*t together.
Are doTERRA Essential Oils Safe and Organic?
The famous French poet Victor Hugo once said that:
Nothing is more powerful than an idea whose time has come.
That could definitely be said about the idea of incorporating essential oils into everyday health and personal care products.
Today’s consumer is lot savvier these days in terms of doing product research.
Especially with new information about the dangers of various chemicals and artificial ingredients in our foods and household products.
Simply put, folks are starting to seek out more natural, holistic, and safer alternatives for the stuff they consume.
Fans of essential oils love the fact that these powerful organic substances are 100% natural and can be incorporated into all kinds of health, wellness, and personal care products.
doTERRA has capitalized on this emerging mega-trend better than anyone.
And we’re not just talking about scented oils that you massage into your skin or add to a nice hot bath.
It’s an entire product line of EO-laced goodies including shampoo, deodorant, skin cleansers, lotions, nutritional shakes, dietary supplements, etc.
Are doTERRA Essential Oils FDA Approved?
Well, yes and no.
One of the biggest selling points for doTERRA products is centered around their very own “Certified Pure Therapeutic Grade” (CPTG) testing process:
Without an accepted standard for essential oil quality, doTERRA created its own testing process, calling it CPTG Certified Pure Therapeutic Grade®. The CPTG process certifies that there are no added fillers, synthetic ingredients, or harmful contaminants in their essential oils that would reduce their efficacy. doTERRA even goes a step further, putting all their products and the packaging through a battery of tests to ensure a long and effective shelf-life. This protocol ensures potency, purity, and consistency batch to batch.
Sounds good, right?
But there’s also quite a bit of controversy surrounding this issue.
It was basically a stern warning against anyone who was promoting products and making outrageous (and unproven) medical claims.
Such claims included that some essential oils could “cure” a variety of illnesses including cancer, autism, Alzheimer’s, and even the deadly Ebola virus.
That included a strict policy for Wellness Advocates to not make any more claims towards specific illnesses or use words such as “illness, cure, disease, treat, etc.”
They could, however, make FDA-approved claims such as talk about the mood or skin-enhancing effects of essential oils, and use words such as “wellness, health, etc.”
For example, this would be an acceptable FDA-approved statement:
With doTERRA’s impressive range of products, you can spray, rub, inhale, and even ingest various essential oils to help remedy certain ailments, or to promote better overall health in general.
But all this controversy has definitely given fuel to the doTERRA haters who basically think the company and their products are a complete scam.
Which is fine — everyone’s entitled to their own opinion.
Speaking of which:
So there’s always two sides to every coin.
Just make sure you take ’em both into account before making up your own mind.
✓ For all of its folklore-like reputation, essential oil usage is being validated by scientific research more and more every day.
This makes a compelling case for using products such as those offered by doTERRA.
✓ Essential oils are highly versatile, which means they have a ton of different potential uses for everyday life.
So what does this mean for a doTERRA distributor? More opportunities for sales on products that are highly consumable and encourage repeat purchases.
That’s called residual income, babycakes.
✓ The trend towards natural/organic/holistic health and wellness practices continues to gain momentum.
This spells “opportunity” for people who promote products that cater to this trend.
✓ The support system that doTERRA has established for their distributors (aka “Wellness Advocates”) is outstanding.
The company offers free articles and training videos that are part of an online “University” for all things doTERRA.
This includes a lot of product education and useful business building tools to help distributors build their businesses.
✓ Unlike many of the other MLM companies out there, doTERRA’s corporate conferences are run with a high degree of professionalism.
It’s hard to find an MLM conference that doesn’t suffer from some degree of cult-like behavior or redundant rah-rah groupthink.
However, doTERRA manages to avoid some of the shadier aspects of these types of events.
✓ The market for these types of products is virtually unlimited.
It’s not geography-specific, as can be evidenced by the fact that the company now ships to over a hundred different countries.
✓ The versatility of the products is a huge plus.
A “go-getter” type of distributor could easily host home parties or workshops to teach various uses of the products.
This would not only leverage their time but also allow them to make more sales.
✓ The company offers a “Fast Start Bonus”.
Distributors who sign up new referrals will receive a 20% commission on the sales volume of the new recruit for the first 60 days.
✓ You can earn free products through their Loyalty Rewards Program.
✗ There is a $35 one-time enrollment to sign up as a doTERRA distributor and like all MLM’s, you will be highly encouraged to build a downline of distributors below you (aka recruiting your family and friends) to make commissions and bonuses off of their sales.
✗ Unlike their primary competitor Young Living, doTERRA does not own or operate their own farms where they can grow the plants from which the essential oils are derived.
✗ The company does not have any exclusive oils that they can call their own.
In other words, doTERRA basically obtains their oils from external suppliers.
To be fair, though, they do offer a line of proprietary essential oil blends, which are basically a mixture of two or more different types of essential oils.
✗ They’ve had some issues with the FDA dealing with unproven medical claims.
As discussed above, doTERRA received a letter from the FDA warning against their distributors making false and misleading product claims.
To help compensate for this, they now enforce a strict, FDA-approved compliance policy that all Wellness Advocates must adhere by.
✗ The retail pricing on their products is a little on the steep side.
This is one of my biggest gripes with the majority of MLMs out there today — the products are typically not competitively priced.
A lot of this has to do with ensuring that distributors hit certain monthly volume requirements to keep those commission checks rolling in.
This can be a difficult hurdle to overcome for the fledgling distributor who is just starting out.
Especially since they usually have to lay out a lotta cash every month before their business reaches any real level of profitability.
Compensation Plan: How The doTERRA Business Works
Okay, now we’re down to the good stuff: Cheddar.
Y’know, Benjamins. Fat stacks. Dead presidents. Cash money.
This pretty much applies to doTERRA’s compensation plan as well — it’s nothing really out of the ordinary but there are a couple of features that I would like to point out.
First of all, they have what’s known as the “Fast Start Bonus”.
As a “Wellness Advocate”, you will receive a 20% commission on any orders placed by your new enrollees for the first 60 days after you signed them up.
The trick is that you have to be doing at least 100 PV (Point Value) on your own Loyalty Rewards Order before you can qualify for this bonus.
In other words, you have to have some “skin in the game” as well.
Speaking of Point Value, this is one of the biggest beefs I have with most MLM companies.
You will hardly ever see a 1:1 ratio of PV to dollar value on any of the products that you purchase.
Instead, the PV is often quite small compared to the amount of money you have to lay out to buy the products.
For example, their Natural Deodorant costs a whopping $8.50 wholesale ($11.33 retail!) for a measly 1.7 oz stick of deodorant, but you only get 5 PV for the purchase.
Compare that to the average store-bought deodorant which normally costs around $4-$5 for 2.7 oz.
I’m not making this up.
See for yourself right here.
This underscores not only their inflated product prices, but the fact that you’re really gonna have to fork over some cash to build up any decent PV.
Yes, you want to “be your own best customer” and all that jazz.
But at the end of the day, you just paid about twice as much as you would have for a larger comparable product that can be found in any nearby supermarket or drugstore.
And you barely got any PV to show for it.
I agree that you “get what you pay for” in life, but still not the wisest move if you ask me.
Back to the compensation plan.
The company also offers a “Power of 3” incentive program.
Which is basically designed to help distributors focus on building the proper structure in their organization.
Long story short, you get extra money when you sponsor 3 people who enroll in the Loyalty Rewards Program.
Then they each sponsor 3 people who do the same thing, etc.
I guess to infinity.
When (or if) you finally have three personally sponsored distributors doing 100 PV per month and your total Team Volume crosses the 600 PV line…
You will qualify for a $50 bonus on top of your regular commission check.
As can be expected, the bonus amounts will increase as the size of your organization increases.
As you get into the more advanced stages, you will be encouraged to go beyond the Power of 3 and actually build to the Power of 4.
This will come in handy just in case one of your enrollees in the Power of 3 structure forgets or fails to place their Loyalty Rewards order for the month.
doTERRA: Bottom Line
Essential oil usage is being studied and validated by actual scientific research seemingly more every year.
There is a $35 one-time enrollment to sign up as a distributor but the real money comes from recruiting a team of distributors below you.
Essential oils are highly versatile and the trend towards natural, organic, and holistic health and wellness practices continues to gain momentum among consumers.
|doTERRA does not own or operate their own farms where they can grow the plants from which the essential oils are derived.|
The support system that doTERRA has established for their distributors (a.k.a. “Wellness Advocates”) is outstanding and their corporate conferences are run with a high degree of professionalism.
The company does not have any exclusive oils that they can call their own; they basically obtain their oils from external suppliers.
The versatility of doTERRA products is a huge plus and the market for essential oils is virtually unlimited.
doTERRA has received a written warning from the FDA who did not like how some Wellness Advocates were making unproven medical claims.
The company offers a “Fast Start Bonus” and you can earn free products through their Loyalty Rewards Program.
In my opinion, the retail pricing on their products is a little on the steep side for what you actually get.
So can money be made with doTERRA in 2018?
Well, if their yearly revenue figures are any indication, it’s safe to say that there’s a TON of sales volume to be captured by slangin’ essential oil products.
But it’s not all roses.
Like most other MLM opportunities, it’s probably gonna take quite a bit of up-front investment before you begin to move the needle in terms of profitability.
The good news is that this company is poised to take advantage of a major shift in consumer sentiment towards more natural and holistic health and personal care products.
Add to that the fact that essential oils are still unfamiliar territory to the average consumer.
Now you have a recipe for a significant opportunity for an aspiring entrepreneur.
That said, I hesitate to personally recommend doTERRA because of the somewhat ridiculous prices of their products.
This is far from a novel concept — in fact, according to the FTC, less than 1% of people who get involved in MLM opportunities actually achieve profitability.
Along with the abysmal failure rate, who wants to spend time cold calling people or hitting up their friends and family to build a business?
But that’s just me.
There are obviously many successful entrepreneurs in doTERRA who believe in their products and have genuinely good intentions.
So make up your own mind.
If you’re interested in a different way to make money from home — one that doesn’t involve making you feel like a desperate stalker — you can find out all about it right here.