doTerra Essential Oils Review
Price: $35 ($25 After First Year)
Owners: David Stirling
Overall Rank: 2.5 out of 5 ツ
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NOTE: It is critical for you to know I am not an affiliate of doTerra. Rich Artist Starving Artist gives truthful, genuine reviews. My top priority is providing you with quality, entertaining, and informative reviews and I am not influenced by anyone or anything.
I’ve been receiving a few emails as of late asking, “Is doTerra Essential Oils A Scam?” So, I thought I would check them out and discover what they’re all about. Here’s what I discovered …
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Based in Utah, doTerra launched in 2008 and sells essential oils used for ingestion, cooking, therapy and personal use.
After looking at the many products that they offer, you can see why they have created various applications for its essential oils. If the company were to simply use its oils for fragrance and massage purposes only, it would greatly overwhelm its customers with its overabundance of fragrance. However, by expanding into different areas such as natural supplements, cuisine and even classic over the counter items such as vapor sticks, doTerra creates more demand for its products.
doTerra touts its products as being 100% pure and all-natural and you can find them on their website. However, when you try to buy the products, you are required to enter the name of the Wellness Advocate who referred you.
Why can’t you simply buy doTerra products yourself? doTerra is a direct sales and multi-level marketing (MLM) company. Rather than sell their products through grocery or retail stores, this company directly sells its products to private individuals like us.
Why does doTerra do this? It gives its purchasers the opportunity to resell their products to other people for a profit. And, by doing so, the company creates a sales force that works on commission only.
So, how do you become a doTerra Wellness Advocate?
Becoming A doTerra Wellness Advocate
Anybody can join as a Wellness Advocate for doTerra. The cost to join is $35, which provides a new member with business materials (catalogs, order forms etc.), a website and pricing at wholesale for its products. Membership, after the first year, is $25.
A Wellness Advocate receives 25% off the retail price of their products and sells them at full retail price to other people. The difference between the two prices is kept as profit.
Once you have bought a minimum of $100 worth of its oils, doTerra says that, the 25% discount on their products equals what you pay yearly for your membership renewal.
Additional doTerra Benefits
doTerra Wellness Advocates acquire various commissions and bonuses for recruiting members and paid seven levels down as follows:
Univlevel: to receive this commission you must have a personal volume (PV) that is met in addition to a combined volume consisting of oneself and their team (Organizational Volume (OV)). Requirements for Legs (a personally enrolled member of doTerra) must be met also.
Power of 3: a $50 bonus is acquired if three people who were personally enrolled, make 100 PV Loyalty Rewards Program (LRP) orders and their team’s OV is a minimum of 600 PV. As PV orders increase, so does the Power of 3 bonus.
The entire breadth of doTerras compensation plan is quite complex and lengthy, as the following unilevel table demonstrates alone.
Remember that PV and OV don’t convert into dollars on a ratio of 1:1. It’s kind of unclear as to which products have a quantity for PV or OV, but the compensation tables for doTerra indicate that some products will carry varied or no PV/OV at all depending on the products, related promotions etc.
Pros And Cons Of doTerra
doTerra has multiple lines of essential oils for various applications. The company promotes its products as 100% pure and all-natural. They also work in conjunction with small farmers in countries such as Nepal, Madagascar, Kenya and Bulgaria utilizing fair trade agreements to buy their products.
doTerra products aren’t cheap by any means. A single bottle of shampoo, for instance, when bought with the wholesale discount costs $45!
With these kinds of prices, it’s going to be rather challenging to persuade customers to buy products at the retail price. I wouldn’t pay $60 for a bottle of shampoo. Would you? Not likely!
PVs And OVs
doTerra Wellness Advocates must make the set PVs and OVs if they want to get their downline bonuses and commissions. Because the PV/OV dollar value isn’t necessarily going by a 1 to 1 ratio, Wellness Advocates might need to spend up to $100 per month simply to remain active in doTerra and get their bonuses and commissions. This can without a doubt lead to advocates acquiring a significant amount of extra stock which has no use. Also, requiring to pay what is essentially a $1200 membership fee per year swiftly eats away at an advocate’s profit margin.
Adding fuel to the fire is doTerra’s yearly membership fee. Precisely why a member is required to spend $25 for the privilege of working for the company is not made clear by doTerra. It’s simply a cash grab because doTerra doesn’t say where this collected money goes.
Recruit! Recruit! Recruit!
doTerra spends a significant amount of time and effort deliberating member recruitment and the associated downline rewards. It spends a lot less time deliberating on how a swamped Wellness Advocate may sell their products at events or online. This leads to Wellness Advocates more than likely failing at keeping up the required sales volume for their commissions and bonuses.
doTerra may have high-quality products that are sourced ethically, but its priority on PV and OV over actually selling its products to consumers outside brings up a red flag. Moreover, the their products are pricey, so they won’t sell easily to an outside market. Eventually, this results in the Wellness Advocate making up for their losses by buying additional products and spending money on a membership fee for the privilege of doing it. Tactics such as this easily lead to negative revenue that is to say a steady loss of profits.
With so many other legitimate business opportunities available, you’re best to pass on doTerra.
Are you presently a doTerra Wellness Advocate or have you been one in the past? I’d love to hear from you. Please leave your comments below.
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Although doTerra may have high-quality products that are sourced ethically their emphasis on recruiting rather than selling the actual products leads to some concern. Moreover, their products are extremely pricey and will make it a hard sell. You’d do best to steer clear.