This dōTERRA review was written by my guest, Amanda Prader. Even though I chose Direct Cellars as my network marketing company, I’ve always been intrigued by DoTerra and the other essential oil companies as they’re experiencing incredible growth recently. Maybe this review will help you decide if doTERRA is the right company for you!
Starting a company as an independent business owner from scratch can be difficult. Fortunately, there are a variety of companies that will help individuals build their own business by becoming independent contractors for their company.
Franchising is a possibility, but franchising a well-known business can be extremely and prohibitively expensive for an individual.
Network marketing companies, or multi-level marketing companies, as they are sometimes called, allow individuals to open their own small business as an independent contractor and earn a healthy income. Like any business, there are tax considerations to consider, and additionally, businesses take time to grow. One should not think that riches will happen immediately, but over time a multi-level marketing business can grow to replace or exceed one’s income from his current job.
Choosing the right MLM company can be a tough decision, as there are literally hundreds of MLM companies operating, with a variety of products and compensation plans. Some of them are essentially household names such as Avon, Pampered Chef, Tupperware, and Mary Kay. With the advent of the internet, there are so many more which operate almost completely online, some with physical headquarters, some not. The reviews in this post will focus on one fast-growing MLM company, doTERRA International.
Related: Read my Life Matters review here
dōTERRA, The Company
dōTERRA International was founded by seven healthcare and business professionals in May of 2008. These include the company president and CEO, David Stirling, in addition to the six other founding members: Emily Wright, Gregory P. Cook, Robert J. Young, Dr. David K. Hill D.C., Mark A. Wolfert, and Corey B. Lindley.
Each founding member is uniquely qualified with experiences and education that help support the DoTerra International business.
Also, each founding member has business responsibilities that correlate with their extensive industry experience. Currently, in addition to the founding members, DoTerra International has a Scientific Advisory Committee consisting of three Scientific Advisory Panel members: Tory Parker, Carsten Smidt, and Nicole Stevens in addition to seven Medical Advisory Panel members: Dr. Paul Winterton, Dr. David C. Hill, Dr. David Steuer, Dr. Joshua Yorgason, Dr. James Geiger, Dr. Brannick Riggs, and Dr. Jessica L.M. Herzog.
dōTERRA Sales and Distributors
DoTerra International currently has over one million “Wellness Advocates,” the special term used for DoTerra International distributors, as of 2015.
In less than a year after the company’s founding, DoTerra International had already reached a million dollars in sales. By 2012, less than five years after founding, the Doterra International business was having regular million dollar sales days, all completed by Wellness Advocates. DoTerra International has its global corporate headquarters in Pleasant Grove, Utah, in a 383,000 square feet facility housing more than 1,400 corporate employees.
dōTERRA Product Reviews
DoTerra International specializes in products made with essential oils. The company sells essential oils by themselves and also as specially-formulated blends used in its variety of products for the home and family.
DoTerra International’s essential oils are all classified as “Certified Pure Therapeutic Grade.” To qualify for the CPTG designation, essential oils must meet a number of conditions. They are thoroughly tested in order to meet chemical composition standards as well as being cross-tested to ensure purity and exact composition potency. CPTG essential oils are required to be pure and natural, in addition to being free from any fillers or artificial ingredients. Finally, CPTG essential oils must be free of any chemical residue, contaminants, and pesticides.
Here’s an official video from DoTerra International
dōTERRA Enrollment Kits
The DoTerra International business sells enrollment kits and stand-alone products made with CPTG essential oils. The enrollment kits include the Cleanse and Restore Kit, Natural Solutions Kit, Home Essentials Kit, Family Physician and Slim & Sassy Kit, Diamond Kit, and the Every Oil Kit.
DoTerra International distributors get started with the company by filling out an application and paying a one-time $35 enrollment fee.
When starting with any MLM company, individuals should consider whether or not the products are ones they are passionate about.
In the case of starting as a Wellness Advocate for the DoTerra International business, one should be passionate about essential oils and the potential health benefits, if not already be fairly knowledgeable about essential oils. It is incredibly difficult to sell products that one does not have a passion for or interest in.
However, with that said, DoTerra International has some incredible free training both about its products and about getting started with, succeeding with, and expanding a business for its DoTerra International distributors.
Ultimately, to be successful in any MLM business, an individual should be somewhat of a “people person.” That is, being comfortable interacting with not just friends and family, but also any potential customers. Sales as well as enrolling and sponsoring new distributors is essentially how one succeeds with the MLM business model.
DoTerra International can give its distributors the information needed to succeeding, but implementing that information is dependent on the distributor himself. In addition, Wellness Advocates should be careful when recommending DoTerra International products that they do not unintentionally make any medical claims as far as essential oils curing or helping to alleviate symptoms of any disease. CPTG essential oils have not been evaluated by the FDA and as such, no medical claims may be allowed.
dōTERRA Compensation Plan Overview
The other main consideration when considering a MLM or network marketing company is its compensation plan. Individuals should make sure the compensation plan is fair and fits their lifestyle and needs. DoTerra International’s compensation plan is fairly unique in a number of ways.
dōTERRA Retail Sales
The first unique compensation factor is that DoTerra distributors do not just make money from enrolling new Wellness Advocates, but also from selling the company’s products at a retail markup.
DoTerra distributors decide what their retail markup will be after purchasing products from the company at wholesale prices. Any markup is acceptable, as long as it is over the wholesale price.
Distributors may also choose to purchase product for personal usage, or for demonstration purposes to share with others. Due to the retail sales component of compensation, the dōTERRA business is not able to estimate what its distributors entire income may be.
dōTERRA Bonus Compensation
Additionally, DoTerra International has several bonuses available to its Wellness Advocates.
The first important bonus to consider is the “Fast Start Bonus,” the only bonus that is paid on a weekly basis. This bonus is paid to a new DoTerra International distributor’s first, second, and third level Enrollers as a percentage, depending on the Enroller’s level, for all commissionable orders made by the new Wellness Advocate within the first 60 days of his or her enrollment. Additional qualifications must be met by each Enroller in order to receive the Fast Start Bonus.
Secondly, the “Power of Three” Bonus, paid monthly, is based on the principle of growing DoTerra International distributors’ downline. The first bonus, of $50 per month, is paid once a Wellness Advocate has three personally sponsored Wellness Advocates who all have qualified LRP orders as well as at least a team value of 600.
The Wellness Advocate receiving the bonus also must have a qualified LRP order. LRP is the company abbreviation for “Loyalty Rewards Program.” Once the first Wellness Advocate’s three personally sponsored DoTerra International distributors themselves qualify for the $50 bonus, he or she is paid a monthly $250 bonus.
Finally once those nine Wellness Advocates also qualify for the initial bonus, the first Wellness Advocate at the top is paid a whopping $1500 bonus each and every month. This bonus alone could considerably contribute to a Wellness Advocate’s overall monthly income potential.
The third bonus that dōTERRA distributors receive is as part of the “Unilevel Compensation Plan,” which pays down seven levels in a Wellness Advocate’s organization.
This compensation plan is extremely unique in that it flips the typical MLM company compensation plan on its head. While usually MLM companies pay the highest percentage compensation at the top levels of a distributor’s downline, DoTerra International distributors are compensated at the highest percentage, of seven percent, on their seventh level, while only a two percent percentage is paid on the first level.
As a Wellness Advocate grows their levels deeper, he or she is paid a progressively higher percentage, up to the seven percent. In addition, Leadership Performance Pools are awarded to particular qualified DoTerra International distributors and are based on the entire company’s sales volume.
It is unfortunate that a great many MLM and network marketing companies are fly-by-night and can be scams. Is DoTerra International scamming their Wellness Advocates?
Well, although not accredited by the Better Business Bureau, the DoTerra International company does have a A rating from the BBB on a A+ to F scale. This DoTerra International review rating is mainly based on the length of time the company has been in business as well as the number of DoTerra International complaints filed when measured against the size of the company.
Of the twenty complaints filed in the last three years, ten were related to problems with the service or product, seven were sales or advertising problems, and three were collection or billing issues.
Upon examining a variety of DoTerra International’s reviews made by both general consumers as well as DoTerra International distributors, it was concluded that the majority are highly favorable. Consumers and Wellness Advocates seem to be impressed with the high quality of the product and Wellness Advocates in particular seem overall to be satisfied with the DoTerra International business compensation plan.
Recruiting Techniques for dōTERRA Distributors
Like most MLM companies, dōTERRA reps are encouraged to make a list of friends and family and hold parties to recruit people into the business and to become customers.
Do you think leaders in network marketing are doing this?
Top earners in network marketing companies have created a brand for themselves and have people coming to them to join, not the other way around.
Note from Elliott:
I want to thank Amanda for her research and input and I hope this dōTERRA review helped you come closer to a decision on if it’s right for you!