A Gift of the Earth.
That is what the name DoTerra means and this company uses that ideal phrase to their fullest benefit as they market their essential oils to the world. Yet despite the romantic and ideal platitude, DoTerra remains a company that takes advantage of people through its MLM format.
Their other ideal that the company uses to motivate its employees and sales reps is the statement answer the question why we do it? Their answer is to empower you and your loved ones with health and wellness. These two ideals sum up the answer to what is Doterra.
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Where Did DoTerra Come From
The fortunate thing about most MLM companies is that they do have a very public origin. Unlike their compensation plans, knowing their history is easy and there is a lot of information available.
For DoTerra, this company was founded in 2008 by a group of people, not just one man or woman. 7 people got together to form the company and that in and of itself would not be a bad thing. Except that 3 of DoTerra’s founders came from Young Living and remain in direct competition to that company.
The latter company did have some issues with that and fought DoTerra in court but lost as they acted in bad faith. DoTerra started with 25 single oils and 10 blends and in 11 short years were able to turn the small company into a giant corporation that rivals Young Living.
In 2010 these new executives formed a charitable wing but that arm of the company has remained under suspicion due to some questionable fund raising tactics and failure to distribute those items received.
What is truly amazing is that by 2016, the company claimed 3 million sales reps and customers. It is also possible that the company has reached the billion dollar in sales mark. Some of those sales may have come through false claims made by both the company and their sales reps.
The DoTerra Products
From the company’s humble beginnings of selling 25 single oils and 10 oil blends, their product line has grown to over 150 items. Their list of products start with their main product line, essential oils.
From their they branch out in to personal care items like toothpaste, soaps, laundry detergent and on to skin care, body care and shampoos before ending up at nutrition and weight loss. So you get a wide array of products to try and see if they work for you.
There are a couple problems with their claims about their products. The first, is that many of their reps and the company itself proclaimed that their essential oils were cures for a variety of ailments. 2014 brought a warning letter from the FDA to stop making those claims.
Then later, in 2017, air pollution experts brought complaints about the company’s claim that the essential oils could purify the air. This was done after the California fires, of course their products do not do that.
The second problem with their products is that the company makes the claim that their products are rated as pure by the CPTG - Certified Pure Therapeutic Grade. The only issue with this rating is that the CPTG is not an accredited authority and not backed by any associations or authorities.
The market their products through independent sales reps called wellness advocates as well as through their online store. Single oils can cost over $20 with ease and kits can run into the thousands.
DoTerra also arranges their online store exactly like Young Living and has both the retail and wholesale prices listed under each product. What is not good about their products is that while the company does claim their products are pure, there are synthetic ingredients included in some of them.
It Is Easy To Sign Up At DoTerra
It must be or they would not have about 3,000,000 sales reps working for them. When you go to their website, and click the become a member button, you are set to a web page that has a sign up choice for you.
You can either pay a $35 membership fee, and $25 every year after that, or you can sign up for free by buying one of their kits. Unfortunately, the kit costs about $2,000. Yes, that is the correct figure.
The sign up process seems to be the same as Young Living. You start by giving your country and the language you want to be communicated in. After that, you hit the continue button to continue the sign up process. And no, we did not hit this button.
What makes signing up at Doterra or even Young Living, is that the essential oil market is growing. There is some potential out there to make a lot of money if you are the right person.
You do need to know the name and personal information of the person recruiting you. That information is required if you were recruited and still want to sign up.
But signing up is just the beginning of your problems as in 2016, the company claimed they had a data breach and their sales reps SSI numbers, dates of birth, phone numbers, addresses, credit card numbers and so on were stolen.
The company blamed a third part did the dirty deed. All DoTerra did was offer free credit monitoring for a year as compensation.
Can You Make Money At Doterra?
By now you may think this is a silly question since we are talking about another MLM company that has more sales reps than customers. But as has already been stated the essential oil market is getting bigger and more people do want the product.
But they may not want the DoTerra brand of essential oils as it has been claimed that there is about half the amount of oil in their products and the cost is about triple of store bought brands.
Like all other MLM corporations, Doterra does have a complicated compensation plan which kicks in only after you start buying $100 worth of product each and every month. Without meeting that requirement, you do not get paid.
There are 4 ways you can get paid after you hit that mark. One is the 25% commission on all your retail sales. Next is the fast start bonus which ups your recruitment commission if you can recruit a lot of people.
After that you can be paid by the power of three bonus. This is where you get a bonus if you or your current recruits get another 3 people signed up. Finally, you can get the Unilevel bonus which goes 7 layers deep and this is the spot where you can make the most money.
That is if you can recruit good people who can recruit good people who can...you get the picture. So if you cannot recruit, then do not expect to make a lot of money unless you can sell and sell well.
Depending on others to be as committed as you is risky. You never know who will want to sign up and you are taking a big chance that they will be as hardworking as you and make a lot of money selling DoTerra’s products.
This is the time we have to remind you that DoTerra has about 3,000,000 reps in about 100 countries and about 16 markets. Plus, they have their online store that competes with their sales reps.
These factors are things you need to take into consideration before you decide to join the company. If you are lucky enough to hit the right spot in the country, you may be able to make a living. As its stands, with the mandatory $100 per month purchase requirement, you may end up with a lot more product than cash in the bank.
What Is Liked About Doterra?
This company does have its good points and those will be listed, in part, below:
- You set your own hours
- You run your own business
- It is a growing market
- The company has an A+ BBB rating
- A possibility to make some money
What Is Not Liked About The Company
Unfortunately, this list is vastly longer than the positive side of the debate. Here are those negative qualities that may influence your sign up decision:
- High failure rate
- Hard to make any money
- More out of pocket expenses than revenue
- Its an MLM corporation
- Expensive products to sell
- Products are not necessarily pure
- The company does not own its own farms
- You have to spend more time recruiting than selling
- Unethical marketing tactics
A Major Flaw In The Works
One of the major problems DoTerra has is that it may encourage its sales reps to provide essential oil medical advice when they are not qualified to do so. The FDA has warned the company, as have other experts , on this practice. Yet it still continues.
What makes this practice even worse is that the information passed on from a wellness advocate may come 3rd, 4th, 5th etc., hand and they have no idea if it is true or not. They just accept it and pass it on to their customers like they were doing their customers a big favor.
This is a dangerous practice to do and you need to be aware that it is possibly illegal.
Does DoTerra Make The Scam List?
In this series on MLM corporations we have provided a lot of information on this topic. All that information applies to this company as well. It is and it isn’t a scam. If the claim that their essential oils do not contain as much oil as store bought brands then you could see that as a scam as the company is practicing dishonest behavior.
It is also dishonest to claim a rating from a testing company that does not exist and is made up by DoTerra itself. Besides its MLM compensation practices, these actions push DoTerra closer to being a scam than not.
Any MLM corporation is only in business to make money despite their ideals, principles and other visionary platitudes they say guide their work.
There Is A Better Way For You To Make Money
MLM employment is very risky. With about an average of 98% failure rate, making money through employment with those companies is difficult, risky and depends to much on recruits.
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Affiliate marketing is not difficult to do and with free training, even you can do it. The good thing is, you do not have to recruit others to make money. Your salary comes through your efforts alone.
This is good as you do not have to depend on finding recruits as good and as dedicated as you to earn money towards your financial goals. This saves you a lot of headaches as well as gives you a little peace of mind.
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Thank you for reading.