You are welcome to my doTERRA review.
I am confident that you are here because you want to know if you can make money with doTERRA. It is great you are making your findings of doTERRA; this was how I discovered the best affiliate marketing training ever.
But, Is doTERRA a Scam? Or, Is doTERRA a pyramid scheme?
Please be know that I am not a promoter of doTERRA, so expect an unbiased doTERRA review from me.
Please read on.
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doTERRA at a Glance
Product Name: Do Terra
Industry: Multi-Level Marketing
Founder: David Stirling
Year Founded: 2008
Headquarters: Pleasant Grove, Utah, USA.
Products: Essential Oils, Home Products
Price: $35 upfront, $25 annual renewal fee
BBB Review Rating: A+
My Rating: 30%
Summary of doTERRA Review
doTERRA is multi-level marketing that deals with high-quality essential oils. Is doTERRA a Scam? Can you make money with doTERRA?
doTERRA is not a scam, though the company can be mistaken to be a pyramid scheme it is definitely not one.
It takes a lot of work to excel in direct sales business because a lot is involved. In my personal opinion, it will be very difficult for you to make money with doTERRA.
Why is that? It is all because of the direct sales model of business run by doTERRA.
A finding has been discovered that only 0.3% of all direct sales company members will make money while the remaining 99.7% of MLM members of any company will lose their money.
You have to read Mr. Jon M Taylor's book, titled ” The Multi-Level Marketing Unmasked” This book is in mind-blowing. It sighted that the direct sales company created the MLM business to scheme the profitability towards the people at the top and the owners of the company.
I have found this finding to be true 99.9999% from over 120 MLM companies I have reviewed so far. Before you join any MLM company, you need to do your findings of the distributors if they are making money or not.
You will see that very few people at the top are making money. It is in all MLM business and has nothing to do with doTERRA.
Taken a look at the doTERRA 2018 Income Disclosure Statement to see what happened:
- 1% of all the members (The Presidential Diamond Rank) Made $1,295,857 Annual Average Earnings
- 2% of the total members (Blue Diamond Ranks) made $465,556 Annual Average Earnings
- 62% of Members (the least rank i.e., Silver) made $28,205 Average annual earning
I have seen the pictures and resemblance of the people at the top rank and the owners of the company earning more money than others.
The recommendation for you is to start your own online business. A business that you can call your own. This is the only way you can command respect and stop chasing friends and family, explaining away why they need to join MLM.
You can start this affiliate marketing training today, level 1 with ten lessons is free. You will have your website with your own business. And you can start promoting any numbers of products and services.
You can make money with doTERRA and numerous other products on the same site. You can now create your own rules because it is your online business.
What is doTERRA?
doTERRA was established in 2008 by David Stirling who used to be executives of Young Living, another health and wellness company.
The company’s headquarters are based in Pleasant Grove Utah. doTERRA’s product line consists of over a hundred essential oils, skincare, weight management, and nutritional supplement products.
doTERRA has about 1,300 employees and more than three million independent distributors.
Their primary objective is educating the public about the benefits of using essential oils and wellness lifestyle in general. Learn more about doTERRA on Wikipedia.
They also offer an ever-growing line of EO based products for their distributors to sell and recruit others into the MLM business.
How Much Does doTERRA Cost?
To become a wellness advocate you have to pay a one-time fee of $35 at the initial stage and $25 annually for renewal.
Then to make the profit you so desire, you would have to enroll someone.
Who Is The doTERRA For?
Becoming a Wellness Advocate is suitable for anyone that has excellent marketing skills in the physical world and can reach out to a large number of people that would gladly follow up the wellness and healthy living lifestyle.
How to Make Money with doTERRA
It operates like the usual MLM compensation plans although certain features are entirely different from the others.
For starters, they have what’s known as the “Fast Start Bonus.” I’ll explain;
When you become a ‘wellness advocate,’ you’ll receive a 20% commission on any orders placed by your recruits for the first sixty days when you sign them up.
This can only happen IF you are doing at least a 100 point value on your loyalty Rewards Order otherwise you won’t qualify for the bonus.
The issue here is the Point Value; it’s one of the worst parts of the MLM companies. You’ll never find a 1:1 ratio of Point Value to a dollar value on any of the products your purchase.
The PV is usually very tiny compared to the amount of money you’ll spend on buying a product.
Apart from this, they offer a “Power of 3” incentive program.
This is designed to help distributors structure their organization correctly.
You receive extra money when you sponsor three people that would enroll in the loyalty rewards program; then they sponsor three people who in turn sponsor three people, that sponsors three other- well… you get the point right?
The cycle continues till infinity I guess.
When the three people you sponsored start doing 100PV per month and your team volume is more than 600PV, you qualify for a $50 bonus added to your regular commission check.
The bonus increases as the size of the organization increases.
As you grow and climb up the ladder of success within the power of 3, you would be encouraged to move on to greater heights and build the strength of 4.
This would be very good for you in case one of your recruits in the power of 3 structures forgets or fails to place their loyalty reward order at the end of the month.
The amount of money you can make as a wellness advocate depends on what you sell and how well you can sell to build a strong customer base and recruit new advocates under your wings.
How Much Can You Make with doTERRA?
You can quickly know how much you can make with doTERRA by looking at what the current distributors of doTERRA are making.
You can get that from the doTERRA 2018 Income Disclosure Statement (It is always challenging to lay hands on IDS of Direct Sales companies these days).
See the break down of the dōTERRA 2018 Opportunity and Earnings Disclosure Summary below:
Source: doTERRA 2018 Income Disclosure Statement
There are four ranks before Silver ranks i.e., Director, Executive, Elite, and Premier). All these people are not accounted for. But read the complete dōTERRA 2018 Opportunity and Earnings Disclosure Summary, you will see this clause “. Those entry-level distributors, who received a commission, averaged $380 for the year”.
I.e., The average annual earnings for the doTERRA entry-level distributors (i.e., Silver, Director, Executive, Elite, and Premier) is $380 for the year. Note that expense is yet to be deducted, including starter pack purchase, product purchase, and annual subscription fees.
In doTERRA, you must purchase enough products for you to remain active monthly.
After you must have deducted the necessary expense from $380, how much remain from the whole year's earnings?
So, how much do can you make with dōTERRA. The answer is that most dōTERRA distributors will make no money.
The above confirmed the investigation of Mr. Jon M Taylor, as stated in his book” The Multi-Level Marketing Unmasked“; that 99.7% of people that join Direct Sales always will lose their money.
Do you still want to join doTERRA? Do you want to lose your investment?
I recommend that you start your online business. You can learn how with this affiliate marketing certification training. Level-1, with ten lessons, is free to join; and then start making money with the doTerra affiliate program.
What is the difference?
- You will have your website with your own business.
- No chasing of your family and friends around again.
- You will attract people that want to buy from you.
- Access to the global community of people that are interested in what you are promoting.
doTERRA Support /Customer Service
The customer service is relatively okay.
The support you would get on the platform is excellent as well, mainly if someone recruits you and if you’re buying from a wellness advocate.
What is Good About doTERRA?
The High Rate of Retaining Customers
doTERRA is one of the leading companies in the essential oil industry hence setting the pace for oil purity.
The company has about 79-85 percentage rate of retaining its customers as well as independent distributors.
This is an excellent advantage if you want to be an advocate because it would naturally your retention rate would be just as high.
Low doTERRA Startup Costs
doTERRA sells its products through independent distributors they like to call ‘wellness advocates.’
The wellness advocates are responsible for marketing these products to the general public. They introduce, educate, enlighten, and sell the products to the public and get commissions from it.
To become an advocate is relatively cheap, the initial fee is $35 but advocates would also pay $25 annual renewal fee as well.
Training and Support
The company provides a lot of practice mentoring and team-based incentives for Wellness Advocates.
New advocates undergo a six-week online course that educates them about the company and its products.
There are a series of quizzes at the end of each module to ensure the advocates understand all they need to know about this new business.
It also provides free business tools like templates for PowerPoint presentations, sales scripts email and newsletters.
High Compensation Benefits
Advocates earn 25% off retail. They also receive bonuses when they recruit new distributors.
There are no monthly targets, but a minimum of 100Personal Volume is required.
Issues With doTERRA
doTERRA was under investigation in 2014 by the United States Food and Drug Administration for false medicinal claims made by doTERRA distributors on their websites and social media accounts.
Some of the suspected claims made mention of curing Ebola, healing cancer, treating neurological and heart diseases as well as many other medical treatments for various kinds of conditions.
Promoting and selling these products without FDA approval as a preventive or treatment measures for medical conditions will go against the United States Federal Food, Drug, and Cosmetic (FFDCA) Act of 1938.
A warning letter was issued by FDA to doTERRA in 2014 and released a corrective action procedure for the company to take with regard to this situation. doTERRA stated compliance with the USFDA
Certified Pure Therapeutic Grade is trademarked by doTERRA
Another issue here is the Certified Pure Therapeutic Grade claim from doTERRA.
The certification seems to be made by the company itself and holds no merit by the industry.
It’s a criterion they use to measure themselves, but it misleads the general public when representing themselves.
I mean, If I set a bunch of principles to live by it not a big deal since it’s my personal life principle until someone awards me for it, it’s not something to brag about.
In the same vein, using a company award given to the company by the company to promote the company is misleading.
And even though other labs test the products to see if they meet a certain standard as long as the FDA and the health and wellness industry is not involved in giving the award, then it remains invalid.
doTerra BBB Review Rating Is A+
doTerra has a Better Business Bureau rating of A+ at the time of writing this review.
The company was BBB Accredited Since the 16th of May 2017, and the company currently has 34 complaints closed and resolved in the last 3 years, and four charges closed in the previous year on BBB websites.
The doTerra A+ BBB review is useful because it shows that the company is on top of its customer support and complaint resolutions.
doTerra BBB accreditation implies that the company has met the criteria for the certification, which includes the commitment always to resolve customer complaints and resolve disputes as at when dues.
It also implies that doTerra has paid the accreditation fees to the Better Business Bureau for necessary vetting.
Below is a lawsuit as relating to Terra:
Young Living Vs. doTerra
Young Living filed a lawsuit against doTerra in August 2013 in the accusation that is stealing their trade secret and another alleged that doTerra recreated its process of products.
They also accused doTerra of using a synthetic chemical in one of their organic products. But, the Fourth District Court dismissed the claim against doTerra in October 2014.
Young Living also settles lawsuits as regard false ads, faked laboratory tests, and theft of trade secrets by withdrawals of adverse claims. The court ruled against the Young Living that they acted in the wrong by misleading the court.
The court ordered in July 2018 that Young Living to take care of the cost of the doTERRA court process.
FDA Vs. doTerra
The FDA – The U.S. Food and Drug Administration served doTerra a warning letter for allowing some of its distributors to make such a false claim.
Its products could treat Cancer, Autism, Ebola, and some other applications against the Federal Food, Drug, and Cosmetic Act (FD&C Act).
This warning letter made the federal agents investigate doTerra. Mr. McKay Brown, one of the executives of doTerra, promised to end the practice by creating what is referred to as the “ fifty-person compliance team” to search out the distributions with such practice.
In 2020 some doTerra distributors made an effort to benefits from COVID-19 by claiming that doTerra products consist of immune-boosting elements without any scientific evidence. This was all over the news media including the CNBC.
The FTC also sent a warning letter to the company to stop its distributors from various false claims. See the letter from FTC to doTerra below:
Is doTERRA a Scam?
No, doTERRA is not a scam.
It is a legitimate business, and the products are just as good. So far, so good the only issue they have had is the one with FDA.
Also, if your objective is to make money with doTERRA as a distributor, it won't be easy to make money.
Many mistakes MLM and direct sales companies to be a Scam and pyramid scheme.
doTERRA is not a pyramid scheme because there is a product involved.
Other online programs like doTERRA include the following:
- My Mobile Money Pages
- Enagic Kangen Water
- Jeunesse Global
- Essante Organics
- Your Freedom Mentor
Is doTERRA Worth It?
Thanks for reading my doTERRA review? Is doTERRA a Scam?
Can you now make money with doTERRA? Or do you think doTERRA is a pyramid scheme?
doTERRA is a legitimate business and has proven to work wonders with their essential oils and another line of products.
The MLM scheme is good as well, although you still need a lot of patience, skill, and quite an amount of money to be able to purchase the products before seeing a substantial amount of profit.
Do you distribute for doTERRA? What do you think of my doTERRA review?
Please try out this affiliate marketing training by the Wealthy Affiliate University. The level one of the training is FREE.
How to Make Money with doTERRA – Video
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