dōTERRA 2017 Earning Disclosure Statement
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Income disclosure statements also known as earnings disclosure statements help explain how much money people make selling DoTerra. They also explain which levels make money.
The statement doesn’t reference any of the costs associated with selling DoTerra. These costs include things like shipping, packaging, marketing, and the advocate’s time. The earnings discussed here seem to be the commissions paid by DoTerra and do not include the costs of doing business. To get a better idea of profit you should be sure to subtract any costs for the year.
Who is making money?
The disclosure statement includes that most advocates (a little over 63% of all advocates) do not make money selling DoTerra.
Entry-level wellness advocates account the bulk (76%) of the company’s advocates. Only 16% of those entry-level advocates make any money at all. The advocates who did make money, on average made on average $376/year. This average doesn’t take into account the people who lost money (remember to subtract those costs!) or broke even.
The next level, builders, account for 23% of all U.S. advocates. Leaders make up around 1%. These levels account for the most profitable ranks and DoTerra describes them as requiring significant part or full time investment. Very few advocates reach these ranks.
|Rank||% Advocates||Estimated Monthly Earnings*||
Average Annual Earnings
|Entry-Level (No Profit)||63.84%||$0||$0|
*Calculated by divided annual across 12 months
Most people (>63%) don’t make any money and are probably losing money when you consider costs. These are the people who join to sell, not just for discount products.
For those that do make money, they are getting a small amount of money. $375 in one year is $31.25 per month. When you consider expenses and how much time and work is required– there is unlikely to be much profit even at the higher ranks.
Notes on the Disclosure Statement
It’s good that doTerra releases an earning disclosure statement. However, it is not easy to understand and is missing a lot of information that other disclosure statements provide. For example it does not include:
- Any information on the number of advocates at each rank
- Ranges or medians for the annual earnings
- Information on how the earnings are calculated and what they mean
- Average costs and expenses, specific time investment
- Time to reach ranks
The way the numbers are presented are pretty confusing (in a way that is a bit misleading). The percentages are percentages of other numbers which makes them hard to compare without doing some math with a spreadsheet. These are great questions to ask when considering dōTERRA.