Making Money with dōTERRA – Compensation Plan

Making money with dōTERRA

According to the official dōTERRA compensation plan, advocates make profits on the dōTERRA items sold to retail customers or preferred members. Profits are the amount sold over wholesale costs. Additionally, advocates can make money on bonuses paid based on the wholesale purchase volume of the advocates and teams they sponsor.

The compensation plan is based on sponsor bonuses rank level achievements

To participate in the bonus program an advocate must at least:

  • A qualified LRP (Loyalty Rewards Program) order for $100
    • This means purchasing inventory even if you haven’t sold inventory that month.
  • Maintain some number of personally sponsored qualified advocates or customers (at least 3 per “leg”)
    • To be “qualified” each of these customers/advocates must also be purchasing $100 each month
    • Often, this leads to sponsors encouraging advocates and wholesale customers to purchase month after month
  • Total amounts of team or organization volume sales
    • If the team is under the necessary amount, sponsors will encourage advocates to purchase extra inventory that month even if they cannot sell it

 

At higher bonus levels, there are bigger and bigger requirements to get the bonuses. It becomes harder to continue getting the bonuses each month, and most of the bonuses are based on sponsorship and team building.

An extremely small number of people (almost no one) will get to the highest bonus levels (leadership). People at the highest bones levels make a lot of money. dōTERRA’s own disclosures show that these top earners make up less than 0.5% of the members.

As a matter of fact, dōTERRA only paid bonuses to 25% of members. Most advocates didn’t make any commissions at all.

https://www.doterra.com/US/en/policy-manual-compensation-plan

http://media.doterra.com/us/en/flyers/opportunity-and-earning-disclosure-summary.pdf

 

Consider the following questions:

  • Is your sponsor pressuring you to make purchases you can’t afford?
  • Have you reviewed the dōTERRA disclosures as well as the compensation plan?
  • Are you comfortable with the required investments, risks, and returns you’ve had with dōTERRA? (Ask this question weekly)
  • Are customers ready to buy the products that you’ve purchased wholesale? Can you afford it if no one purchases those products? (Ask these questions with each purchase)

 

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1 Comment

  1. Here’s an accountant’s assessment of the income disclosure statement: https://medium.com/@ryanmcknight_61338/yes-even-your-mlm-is-a-scam-b9e7334382f5

    We too looked carefully at these numbers and discovered the very tiny number of people at the high ranks. This is why our article focuses on the lower ranks – almost *no one* reaches these higher ranks. We don’t suggest that they factor into your decision making at all because they are so very rare.

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