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Is doTERRA A Scam? Legit Or Another Pyramid Scheme In Disguise?
Welcome to My doTERRA Review!
To be honest, I was never a fan of Multi-Level Marketing (MLM). I’ve had a bad experience with them when I was younger and it left a huge mark that screams “no way I’m going to join that program!”, and here’s what happened.
I went with a friend to a “party” without knowing that he was up to something else. To cut the story the short, he brought me to a place with a lot of fancy cars and asked me to wait for his “mentor”.
I have no idea what it’s about nor what MLM is until I have talked to that “mentor” who told me that he’s earning thousands selling perfumes, slimming coffees, and other products I have no care about. In the next few months, he’ll get travel and car incentives all because the company he’s with is lucrative like that.
doTERRA Review Summary
Name: doTERRA
Website: www.doterra.com
Founders: Emily Wright, David Hill, Corey B. Lindley, Mark A. Wolfert, Gregory P. Cook, Emily Wright, Robert J. Young, and David Stirling
Product Type: Multi-Level Marketing
Price: $35 for the membership fee; $25 for the renewal of the yearly membership
Quick Summary: doTERRA is a multi-level marketing company that focuses on selling essential oils. Their goal is to educate their “wellness advocates” about the numerous benefits of their products and to promote a healthier lifestyle. Also, like other MLM programs, recruiting other people to become a member and to sell their products is important to earn additional commission. doTERRA has proven to be a legit company but the question is: is it worth investing your time and money here?
Overall Rating: 4/10
Recommended: No
I was almost convinced but since I was just a college student, I have no money to start this so-called “business”. But other than that, I was hesitant, maybe upset about what happened. First, it looks like the only thing he cares about is building himself. He did not even bother asking for my name. Second, since I have no cash, he asked me to sell my laptop or if I don’t have one, he asked me to borrow my father’s laptop, sell it, and convince the old man that I lost it somewhere. That alone is enough for me to decide: there’s no way I’m joining one.
I just want to be clear though. Not all MLM companies are a scam (even the one I visited was legit), however, since their main goal is to invite more and more people for incentive’s sake, their members are ruining the company’s reputation by being aggressive with how they invite people to be a part of their “team”.
That being said, should you consider MLM such as doTERRA? Is doTERRA even an MLM or an outright pyramid scheme? These, and more, we will find out in a bit.
What Is doTERRA About?
Founded in 2008, the Utah-based company is basically known for producing and distributing essential oils. But other than that, they also provide supplements, personal care, diffusers, and weight loss shakes -- thanks to over 3 million Wellness Advocates and 1,800 worldwide, their company has become a success.
Their 383,000-square foot main office is located in Pleasant Grove, Utah and they have other 17 headquarters in different countries like New Zealand, Canada, Australia, Costa Rica, Japan, Hong Kong, Korea, Taiwan, Mexico, and Singapore. This only shows that doTERRA is not your small-time MLM company.
A Little Background About doTERRA
Before anything else, I’d like to give a quick explanation of what an essential oil is about for the benefit of the doubt. Basically, this organic oil is acquired by distilling parts of a plant that is believed to have health benefits, such as the leaves, stems, roots, and flowers, to name some.
This essential oil is the primary product of doTERRA, a Latin phrase that means “Gift Of The Earth.” It was founded by the same executives of another essential oil MLM brand, Young Living. Perhaps, this is one reason why doTERRA has acquired a huge earning in just a few years -- the people behind it already know what they are doing.
As mentioned, they also distribute other health-related products like supplements and weight loss shakes but like other MLM, this business model is not just all about selling their goods, rather they also encourage their distributors or “Wellness Advocates” to recruit other people to join their business.
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Is doTERRA A Scam?
Apparently, no. With the number of distributors and offices they have, not to mention the length of the years they are operating in the industry, it only shows how stable they are.
However, there are still complaints that you should take note of such as poor customer service. Also, because of the business model this MLM company have, a lot of people think that it’s nothing but another pyramid scheme, which, in any way, is a scam. But if you look deeper, you’ll find out that multi-level marketing is far different from a pyramid scheme.
MLM will require you to sell tangible products, to begin with, and the reason behind recruiting more and more people to join the program is because the larger the number of distributors they have, the bigger chance to create more sales. In addition, MLM is legal to some states in the US and Canada while the pyramid is not. This kind of business model only focuses on recruiting and recruiting people to join the program so you can earn money without any products or services involved.
Earning without doing anything other than inviting a family member a friend or anyone you know to join sounds promising. Imagine, you can make money without working at all. But doesn’t that sound too good to be true? Apparently, it is, and that’s the why pyramid scheme is downright illegal.
But despite being legal, many people who joined doTERRA and other legal MLM companies do not really thrive. And, if losing an investment is not hard enough, another problem that distributors encounter is losing a relationship with their friends and/or family.
Why? Primarily because of expectations. If you’re the distributor, you expect the people you know to trust and join the program you are in, and if not, chances are you’ll have ill feelings toward each other. Also, if you have successfully recruited a member and he/she wasn’t able to make money as promised, he/she may put the blame on you.
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Price
To join and become a “Wellness Advocate” -- as doTERRA refer to their distributors -- you need to pay $35, which is cheaper compared to other MLM companies. However, that doesn’t include the goods you need to sell in able to earn. The essential oil company will require you to purchase at least $100-worth of products every month so you are eligible to earn.
This may sound like a big amount of cash especially if you’re not confident enough in marketing your products, however, doTERRA has this compensation plan that allows you to earn in 4 ways you can earn, and these are as follow:
- Retail Bonus - As the name suggests, doTERRA will give you a 25% commission based on the retail sales you accomplished.
- Fast Start Bonus - For the first two months of joining, doTERRA will give you a higher commission if you can complete the first three level of your downlines.
- Power Of Three Bonus - Like other MLM programs, you and/or your downlines (the people you have successfully invited to join the program) will have a commission if you can invite three more people to become a distributor.
- Unilevel - Unlike other MLM programs, doTERRA will give you a higher commission as you grow the number of your downlines. If you have created a 7-level downline, your commission will grow from 2% to 7%.
For a more thorough explanation of doTERRA’s compensation plan, you can watch the video below.
Pros/Cons
PROS
It Is BBB-Accredited
Perhaps the only thing I like about doTERRA is that it is accredited by the Better Business Bureau. It also has an A+ rating which is a good sign that the business is doing well.
CONS
It Doesn’t Guarantee Your Income
Like other businesses, you will take a risk, however, the disadvantages with MLM is that it will require you to sell overpriced products which are mostly low quality. Plus, you will be forced to invite other people to join so you can earn a commission.
Income Opportunity Is Limited
The commission for the retail sales and having downlines is big enough but because their products are overpriced, and many people still associate this kind of business model with a pyramid scheme, it’s not going to be easy.
If you want a program that will not require you to sell limited products or to invite a number of people just to earn a commission, you can click this link to find out more. I’ve been with this company for quite some time now but don’t worry, there’s no commitment involved. No need to pay for exorbitant membership fees or purchase any product.
Too Many Complaints About Their Unethical And Misleading Practices
doTERRA has received a lot of complaints about their unethical practices such as bashing other brands, placing a huge order on somebody else’s account without the owner’s consent, and a lot more negative reviews about doTERRA which you can check here.
You Have To Repurchase A Hundred Dollar-Worth Of Product To Keep Your Account Active
Imagine, you already have a hard time marketing expensive essential oils and other doTERRA products and on top of that, you have to purchase a $100-worth of doTERRA items every month… and I’m just gonna leave it there.
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Who Is It For?
I can’t really recommend doTERRA and other MLM products simply because you have to spend a huge amount only to realize that you will have a hard time marketing these products. However, if you’re an aggressive marketer who likes a business as challenging as this, maybe you can make this business model workout.
Training Tools/Support
doTERRA provides training tools, in the form of videos and Powerpoint Presentation, to their Wellness Advocate which can be found on their website. They also have doTERRA University, an online platform that educates its distributors and potential clients about the importance of essential oils.
Should there be a problem or question, you can contact doTERRA through email, phone call, or by visiting their physical offices.
Final Opinion/Verdict
doTERRA is 100% legit but their practices on how they can acquire their so-called “Wellness Advocates” is not really something anyone would like, and that makes it sound like a scam. Like most MLM companies, the eagerness to recruit more members make their distributors sound and act like they don’t care about their prospect’s opinion and feelings. When it comes to their products, there are a number of good reviews backing up its effectivity but the sad truth is, you can find similar items on a lower price.
I hope I have enlightened you about this MLM product. Please feel free to share your thoughts below.
What's Next?
MLM, as a business model, is legal and a lot of people have actually made money out of it, however, it’s not the best money-making opportunity online, or even offline. There are just a lot of drawbacks that hinder the potential to earn, including the costs, the limitation of products you can sell, and how you will earn commission through recruitment.
If you want a safer, legal, and more efficient way to invest your time and effort, you may consider this program that I’ve been with for a few years now.
Why?
- Because you don’t have to sign up for an expensive membership fee.
- Because you don’t have to bother your family, friends, or anyone you know just to earn.
- Because you are not limited to selling overpriced products. In fact, you can choose the products and services you want to promote.
- Because you don’t have to rely on your downlines other than yourself to earn cash, possibly a passive income.
So if you want to know more about how it works, simply click this link.