doTERRA MLM Company

A little more than ten years ago, the multi-level marketing (MLM) corporation known as DoTERRA made its debut in the marketplace. It focuses on essential oils and the accessories that go along with them. It has only been operating for a short period of time, but already it has seen phenomenal expansion, both in terms of revenue and the number of distributors it employs. During this time, it has been the target of legal action brought on by other businesses as well as warnings issued by the FDA. DoTerra remains one of the leading suppliers of essential oils on a global scale even to this day.

doTERRA: An Overview of the Company

DoTERRA’s Past and Present

doTERRA was established in 2008 by a group of individuals with the goal of disseminating essential oils of a therapeutic grade to people all over the world. In point of fact, some of the company’s founders had previously held managerial positions at Young Living, which is another business that sells essential oils. Even the name doTERRA is derived from a Latin word, and that phrase literally means “Gift of the Earth.”

Back in 2008, when the company was first started, there was no established benchmark for the quality of essential oils in the sector. Because doTERRA was committed to providing their consumers with only oils of the greatest possible quality, the company set a benchmark for the industry known as Certified Pure Therapeutic Grade (CPTG). In order for oils to obtain this certification, they are subjected to extremely stringent testing, both on the company’s end and by outside parties, to guarantee that they are of the highest possible quality.

doTERRA was only in business for a total of six years when it hit the milestone of one million Wellness Advocates, also known as distributors, and customers. In just another year and a half, in 2016, it surpassed the three million barrier. Additionally, Forbes magazine has recognized the company on multiple occasions as one of “America’s Best Midsize Employers,” which is an honor the company has received.

Investigations into the Company

It would appear that no multi-level marketing company is safe from scandals and investigations, and doTERRA is no exception to this rule. The essential oil company doTERRA was competing with, Young Living, filed a lawsuit against them, which was one of the first major setbacks for the company. The lawsuit claimed that the creators of doTERRA, several of whom had previously held top positions at Young Living, were guilty of stealing trade secrets and illegally recreating the manufacturing process used by Young Living.

In an intriguing twist to the complaint, doTERRA counterclaimed that Young Living had faked lab testing by adulterating a sample of doTERRA’s peppermint oil with a chemical additive. This was done in an attempt to prove that doTERRA’s peppermint oil was inferior. doTERRA subsequently asserted that Young Living had published the results of these allegedly fabricated studies on the internet the day before the distributor conference that doTERRA was hosting. In the end, the allegations that were brought against doTERRA were thrown out, and the court determined that Young Living had behaved in bad faith. As a result, Young Living was ordered to pay doTERRA’s attorney fees.

In addition to the legal action, the Food and Drug Administration issued a warning letter to doTERRA in 2014. The notice was sent due to the fact that the company’s Wellness Advocates were selling the oils as remedies for conditions such as cancer and autism. In response to this, the corporation assembled a sizable compliance team with the intention of preventing similar incidents in the future. However, many distributors got over this prohibition by giving consumers personal stories about how the oils had helped them manage their own personal health problems. This was a common practice.

Present Organizational Makeup of the Company

Today, doTERRA conducts business in over 100 different countries across the globe. They operate a network of more than 3 million distributors and have roughly 1,650 full-time people on staff. The headquarters of the corporation are located in Pleasant Grove, Utah, and they are very active participants in the communities that surround them.

doTERRA has established a charitable organization known as the Healing Hands Foundation under the 501(c)(3) tax code to distribute resources to local communities in the areas of education, healthcare, and self-sufficiency. In addition, the organization has only recently built a number of healthcare clinics all around the United States. These clinics focus on holistic methods to medical treatment and are open to patients of all ages.

products from doTERRA

Essential oils are, by far and away, the most popular items sold by doTERRA. They sell individual doTERRA oils as well as oil blends and custom mixes that combine many different oils into a single product for use. For instance, the company’s On Guard, Breath, Deep Blue, and Digest products are extremely popular choices that are designed to assist with a variety of things, including immune system defense, digestion, and sleep aids.

In addition to the oils themselves, doTERRA offers a wide variety of different kinds of essential oil accessories for purchase. This includes diffusers that are manually operated as well as those that are automatically operated, cases, travel pouches, and any number of other types of accessories. The manufacturer claims that particular applications bring out the full potential of different oils. Another kind of accessory that may be purchased from this company is a little roller ball applicator, for instance.

doTERRA has recently expanded its product line to include dietary supplements in addition to essential oils. They provide dietary supplements for a variety of conditions, including weight control, everyday energy, digestive health, and others. They also make available books and other materials that explain the advantages of using essential oils, however this only makes up a minor portion of their overall company.

Marketing Methods Employed By the doTERRA Company

As is the case with many new multi-level marketing companies, social media has been an important factor in doTERRA’s growth. On social media, essential oils and holistic health in general have a significant following. This is especially true of essential oils. There are a great number of organizations and pages that are devoted simply to essential oils and the benefits they provide. The majority of Wellness Advocates rely mostly on this strategy as their primary method for marketing their products.

doTERRA products can now be purchased through a wide variety of conventional retail channels, and a large number of Wellness Advocates go to events in order to market the company’s wares. In many instances, this makes it possible for prospective customers to try out things before making a purchase of them. Not only is it the job of a Wellness Advocate to sell the items, but they are also responsible for teaching customers about which products might be the most suitable for their requirements.

Making Money with doTERRA [Commentary]

Despite the fact that doTERRA has a big number of distributors—around 3 million at the moment—very few of them are making a significant amount of money. According to the Earnings Disclosure Summary provided by the company, 62% of their Wellness Advocates are still functioning at the entry-level position. Only 53% of those entry-level advocates made any commission at all, and the annual salary for those who did earn commission was an average of only $380.

At the very top of the doTERRA distribution chain, there are distributors who bring in more than $1.2 million annually. Nevertheless, this accounts for fewer than one percent of their leaders. When a distributor reaches that level, more than 95% of them stay with the company year after year after reaching that level.

Instructions on How to Become a doTERRA Wellness Advocate

The process of becoming a Wellness Advocate can be completed in a matter of minutes. Visit the enrollment page on the doTERRA website to pay the $35 enrollment fee and get started. Instead of paying the $35 enrollment fee, you might go another route and buy an enrollment kit instead. The enrollment package with the lowest price is $140, however it includes things that you may either use yourself or resell to other people.

After registering, you will be able to make purchases at a discounted wholesale rate. You are required to pay a continuing annual charge of $25 in order to maintain your participation as a distributor in the company. To enlist, you need to have an upline, however if you don’t already know a distributor, one can be allocated to you if you don’t have a personal connection. As part of the membership benefits, doTERRA provides you with access to a number of tools and guidelines that can help you grow your business.

Plan of Pay and Benefits

The compensation structure that is offered through doTERRA is quite easy to understand. A Wellness Advocate has the potential to generate income through retail markups as well as bonuses that are paid out based on the number of sales generated by the distributor and his or her team. Since Wellness Advocates are able to acquire things at wholesale prices, they are able to keep the profit made from the difference between the prices at which they purchase the products and the prices at which they sell those products.

In addition, depending on their own rank at the moment, they may be eligible to receive incentives based on the volume of sales made by members of their downline who are up to seven levels deep. Employees who achieve high positions within the firm are eligible to earn and receive bonuses on a weekly basis, and the bonuses constitute a sizeable portion of the total remuneration that these individuals receive.

Various Methods of Sales and Marketing

As was mentioned in the introduction, one of the most important marketing channels for Wellness Advocates is social media. Teaching classes about essential oils is another method of marketing that is strongly recommended. These classes can be either private or public. Wellness Advocates are strongly encouraged to offer classes in order to provide their current and potential customers with information about the applications of the goods as well as the benefits of using them. They should also have things available there for customers to try out and buy. This can also result in a great deal of sales.

doTERRA When Contrasted with Other MLMs

In general, doTERRA is recognized as a reputable and trustworthy business. Even though there are some people who do not believe in the therapeutic benefits of the oils themselves, the majority of people have faith in the company. The average and prospective earnings of a distributor are not very high at all, which is unfortunate given the nature of the job. Many people join the company for no other reason than to qualify for the wholesale price reduction on their own purchases, which is most certainly the path that should be taken. To be successful in selling these things would require a significant amount of effort, and perhaps even a small bit of luck on your part.

Conclusions For doTERRA

doTERRA ranks among the most successful companies that sell essential oils on a global scale. The reliability of the organization cannot be questioned, and the quality of their output is consistently impressive. On the other hand, if you want to be a Wellness Advocate and make a lot of money, you should know that this is not very likely to happen. There are around 3 million other essential oil firms in addition to doTERRA, which has caused the market to become highly competitive and saturated. You could want to join in order to take advantage of the wholesale price, but if becoming wealthy is your primary objective, you should probably look into other opportunities.

The overall rating is a 4.26 out of a possible 5.

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