If you have come across this article through Google, then most likely you are hungry to learn What is doTERRA Essential Oils About?
Essential oils are great and selling them might seem an attractive business opportunity. But is this so in reality?
Today, I’ll try to go really deep into doTERRA business facts to hopefully help you make an informed decision whether it worths spending your money and your precious time.
What You Will Learn Here
- 1 doTERRA Overview
- 2 What is doTERRA?
- 3 Who is the Founder?
- 4 What is doTERRA’s Financial Situation?
- 5 Are doTERRA Products Any Good?
- 6 How Much Does it Cost to Join doTERRA?
- 7 How to Make Money With doTERRA?
- 8 Do They Allow You to Use the Internet to Build Your Business?
- 9 Is doTERRA Legitimate?
- 10 Can You Make Money With doTERRA?
- 11 The Good and The Bad
- 12 My Final Opinion About doTERRA + A Better Opportunity
- 13 doTERRA MLM
- 14 Pros
- 15 Cons
Full Name: doTERRA International
Type: MLM Business Opportunity
Founder: David Stirling
Year of Establishment: 2008
Price to join: $35 (Annual Renewal Basis) + Enrollment Kits ($140-$3 666)
Please note that I am not doTERRA’s business partner and have never been in my life.
So you can rest assured that you will not see me here convincing you to buy doTERRA essential oils or join their business opportunity.
What I do is affiliate marketing, which is a great alternative to build your own business without having to annoy your friends and family, or random passers on the street.
If You Don’t Want To Waste Anymore Time On MLMs,
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What is doTERRA?
doTERRA (in Latin, “gift of the Earth”) is a multi-level marketing company that sells essential oils.
These are extracts from plants and fruits and are widely used for different purposes, like in the cosmetics and skincare industry, aromatherapy, medicine, etc.
doTERRA Essential Oils was founded in 2008 and is based in Pleasant Grove, Utah, USA.
Since its inception, doTERRA managed to expand to other continents and countries, like Europe, Latin America, Korea, and Japan.
Who is the Founder?
doTERRA is managed by an executive team formed by Corey Lindley, Emily Wright, Dr. David Hill, Greg Cook, Rob Young, and Mark Wolfert.
The team is headed by David Stirling who is the Founder Executive and CEO of the company.
According to his mini-biography on doTERRA’s official website, prior to overtaking the leadership management role in doTERRA company, David had extensive executive experience in some of the other industries, including managing Young Living company that is also in the essential oil industry.
Having nine children with his beautiful wife, Laurea, David’s main emphasis as a leader of the company is on educating people.
From this, we can assume that doTERRA might be a good company that cares about its people/distributors.
What is doTERRA’s Financial Situation?
In order to find out whether it’s worth joining doTERRA or not, it’s good to look at some of the numbers that indicate how well doTERRA is performing financially.
I am sure you don’t want to be part of a company that is not earning enough money, right?
To be honest, it was quite difficult to find how much money doTERRA is earning overall because they are not disclosing this information on their official web page which is a sign that something is not ok here.
The only numbers I have found are from Wikipedia that states $1 billion in annual sales for 2015.
To conclude, doTERRA’s financial situation is quite shady. We can find out a little bit more from how much doTERRA’s reps are earning.
I will explain this in the further sections below, so read on!
Are doTERRA Products Any Good?
First of all, let’s find out if they are safe to use.
This is extremely important since customers nowadays are becoming more and more cautious about what they are applying to their bodies and skin.
According to doTERRA’s official website, in order to ensure the purity and safeness of the essential oils they produce, doTERRA has established the standard for purity in the essential oil industry: CPTG Certified Pure Therapeutic Grade®.
Therefore, doTERRA’s essential oils are subject to a number of tests inside the company’s laboratories to ensure essential oil purity.
This is a great thing and hats off to doTERRA for carrying out such tests but usually, internal tests are not quite enough.
Any company that produces and sells products that might affect human health must comply with the US Food and Drugs Administration.
So, are doTERRA’s essential oils FDA approved?
Well, the answer is 50/50.
doTERRA, along with some other essential oil companies were warned by the FDA about making some misleading claims in terms of the ability of essential oils to cure and treat some of the diseases like cancer, diabetes, Alzheimer’s disease, autism, etc.
While this doesn’t correspond with reality, doTERRA had to adjust its policies in order to comply with FDA guidelines.
In particular, all doTERRA product labels and any of the promotional materials include the following FDA disclaimer:
“These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent disease.”
How Much Does it Cost to Join doTERRA?
Whether you want to join doTERRA as a Wholesale Customer or Wellness Advocate (this is how doTERRA calls its distributors/business partners), you’ll need to pay a $35 application fee that is renewed every year on the Wellness Advocate’s anniversary signup date.
Every next renewal application fee is $25, plus tax.
How to Make Money With doTERRA?
If you like using essential oils in your day to day life, then you can join doTERRA as a Wholesale Customer or Retail Customer in order to benefit from purchasing doTERRA essential oils at wholesale prices.
According to the doTERRA’s Earning Disclosure Summary for 2018, the majority of doTERRA’s members in the United States (80%) join the company as a Wholesale or Retail Customers.
With this status though, you can’t earn commissions. In order to be able to earn money with doTERRA business opportunity, you’ll need to join as a Wellness Advocate and purchase an enrollment kit.
You can choose from several options that range between $105/$140 (wholesale/retail) and $2 750/$3 666.
Here are some examples:
I will try to not bore you with their complicated commission structure.
As with any of the MLMs out there, once you join doTERRA, you start at the bottom of their Compensation Plan.
Every purchase your customers make, you then earn 25% commission.
If you start building your own organization within doTERRA, you’ll earn different bonuses based on your own and your downline’s performance.
Do you like video-based content more?
Then you may wish to watch this updated presentation of doTERRA commission structure:
Do They Allow You to Use the Internet to Build Your Business?
If you want to have your own doTERRA Replicated website to make use of it in order to leverage the power of the internet to make sales and build your business with doTERRA essential oils, you can set it up through logging in to www.mydoterra.com.
Please note that a separate licensing agreement will be needed for this purpose.
Besides that, you can’t use any other blogs/websites to promote and sell doTERRA products.
I have read on Brian & Heather’s website (who are former doTERRA business partners) that “If you have your own website or blog, you are unable to use it to market your doTERRA business – even if you scan through all your blog posts and remove non-compliant content”.
Is doTERRA Legitimate?
Although doTERRA uses a direct selling business model, which in its essence, has some of the signs of the pyramid scheme, it is still a legitimate business.
If you read carefully their Manual Policy, you’ll notice that their emphasis is on selling products rather than recruiting people.
Again, if to believe their statements, 80% of all doTERRA members are joining the company as customers.
Can You Make Money With doTERRA?
Of course, you can make money with doTERRA! Especially if you are a big fan of essential oils, using them on a daily basis, and know actually how to market them.
And I am sure there are people who are doing quite good selling doTERRA essential oils.
The truth is that, if we look at some statistic numbers, the percentage of people who are making a DECENT income with doTERRA business opportunity is, unfortunately, quite low.
According to Opportunity and Earnings Disclosure Summary for 2018, entry-level distributors averaged $380 for the year.
Like any other MLM out there, doTERRA also has its own ranks within the company. Thus, the following rank level distributors earned the following numbers:
- Managers constituted 36% of total Wellness Advocates and earned on average $708 in the whole of 2018
- Directors were 26% and earned, on average, $1 156 in 2018
- Executive level – 13%, and $1 699 during the year
- Elite (20%) and Premier (5%), earned $4 281 and $10 507 per year
Only a small percentage of people are managing to get on top of the doTERRA career and make the most of the money.
The Good and The Bad
#1. No Requirement to Purchase Products
According to doTERRA Policy Manual: “A Person is not required to purchase any product in order to be a dōTERRA Wellness Advocate or Customer”.
However, here is what I have found on BBB.org:
Could it indicate that doTERRA is actually not following its official policy?
Quite possible, doTERRA hasn’t found the time to respond to this complaint.
#2. Return Policy in Place
If you want to return the purchased doTERRA’s products, you can do so within 30 days from the purchase, for a full refund.
There are also circumstances when you can benefit from their Return Policy outside of the 30 days window, for more information about this, you may wish to check out doTERRA’s Policy Manual.
#3. Relatively New MLM Business
doTERRA is currently in its second decade of operation so chances are that the market is not that saturated yet with doTERRA representatives.
This left you more space for introducing doTERRA to people in your area for the first time without hearing back: “Oh no, thank you, I’m good!”
#1. Most People Failed to Make a Sustainable Income
Even if we take the Silver Rank (that is 62% of total Wellness Advocates) earnings for 2018, we receive $2 350 per month.
That might be not that bad result depending on where you live and how many members do you have to support in your family.
Most probably, it could be more a side gig rather than a main source of income unless you manage to receive a higher ranking in doTERRA company, and respectively, earn more money.
Otherwise, lower rank representatives are making even less than that.
#2. Beware of Lawsuits Around doTERRA
doTERRA couldn’t avoid tarnishing its reputation with being sued in court.
The first one came from the Young Living company that blamed theft of trade secrets, claiming that doTERRA illegally recreated their production process.
Further on, there were also lawsuits around fake lab tests, and false advertising. In the end, the court decided that Young Living was acting in the bad faith and misled the court, and ordered Young Living to cover all the attorney costs for doTERRA.
It’s strange though, that Young Living escaped only paying these attorney expenses. Usually, these types of lawsuits are valued by millions of dollars.
#3. doTERRA Distributors are Making Misleading Claims about Products Properties
As I have already mentioned, there are some doTERRA Wellness Advocates who were making false and misleading claims about essential oils properties to cure and treat some of the serious illnesses.
They have even used the public concern around this new type of coronavirus, causing the COVID-19 disease, suggesting that some of the doTERRA essential oils can give an immune boost and prevent the coronavirus.
We all know that there are not yet any vaccines or drugs approved by the FDA to treat or prevent COVID-19. So these claims are not based on any scientific evidence.
I am sure you can think twice before deciding whether you want to be associated with these dishonest people.
My Final Opinion About doTERRA + A Better Opportunity
As with any other business opportunity, earnings with doTERRA depend on many factors including effort, interpersonal skills, and leadership abilities.
With all the pros and cons of the doTERRA company I have found, I’ll conclude by saying that it’s not that much about the company. The problem is in the business model.
When it comes to network marketing, all MLMs companies are pretty much the same in essence because they are all using the same business model: multi-level marketing.
No matter what they tell you, no matter how amazing the product seems, the products are never going to sell themselves.
I know they tell you that they will sell themselves, but the truth is that they won’t.
So, unless you become a great promoter, and you understand how to recruit hundreds of people into your business, you are not going to make that much money.
Let’s say, you joined doTERRA and recruited 20-50 people. Most of these people will never recruit more than one person into their business. Why?
Because that’s just the way it works. It’s very difficult to actually recruit, even your friends and family because just of the nature of the message. People don’t want to be sold to, that is why most probably your friends and family will not going to join you.
The problem with doTERRA, as well as with other MLM companies is that most of them are using traditional methods of promotion.
So, they will tell you: go and make a list of your friends and family, invite them into a three-way call (get your sponsor to speak to them), invite them to a home party, etc, etc. Have you ever heard of this crazy stuff before?
Well, I did, and I have tried to do these all, and that is why I am so confident that most probably, you are not going to do that well in doTERRA.
So, even though it’s a legitimate business, again, the problem is not the business, but the business model it’s using.
On paper, network marketing makes so much sense: all you need to do is to invite just three people, who will further bring another three, and the latter three bring another three, and so on and so forth. It’s very simple, right?
But in reality, it’s just doesn’t work that way because every single person that you recruit, isn’t going to recruit three more people, it’s just doesn’t happen. There is no duplication happening in the business.
So, unless you are a super-recruiter, and you can recruit hundreds of people yourself, (which by the way, are the only people who are really making money in MLM business), you are never going to really make that much money.
That is because you can’t activate the compensation plan to the levels where you are actually going to make a lot of money.
These are my observations after trying to figure out what is wrong with the MLM business model.
If you are still serious about building your own online business though (and make A LOT OF MONEY with it), then I highly recommend you click the red button below.
I hope you enjoyed reading this article and now, you know you are well-versed What is doTERRA Essential Oils About.
If you have any questions, or just want to say “Hi” or tell your story, please leave a comment below and I will get back to you asap.
Wish you to stay well and safe during these days.
- No Requirement to Purchase Products
- Return Policy in Place
- Relatively New MLM Business
- Most People Failed to Make a Sustainable Income
- Beware of Lawsuits Around doTERRA
- doTERRA Distributors are Making Misleading Claims about Products Properties