Most of you don’t know this, but prior to blogging, I was involved in MLM for a short while. Tried it, but didn’t feel like it was something I would do long term. So last week, when someone offered me to become a Doterra consultant, I politely declined because I know very well the challenges that lie ahead.
How to Earn from Doterra?
Like most MLM, you earn through selling their products, predominantly essential oils and recruiting new consultants as your down-lines.
Often times, you are encouraged to approach family, friends and in this case, spa and even massage centers. Interested parties can buy directly from you or through your web store where you’d make commissions for every purchase. Watch this video as you learn how the (complicated) compensation plan works.
As for recruiting, you could search for potential candidates from your group of buyers or network with people who want to make extra income through a side business. Doterra seems like a perfect model for this because the job scope is flexible and it doesn’t require a lot of capital investment as compared to a traditional business set up.
Getting more consultants is equivalent to building a team. By expanding your down-lines, you are able to earn more through their purchases as well as qualified bonuses. MLM compensation plans are always attractive (at first, anyway) because you just need to multiply the numbers to get a projected earning figure.
However, whether you are selling or recruiting, you are essentially dealing with people at the end of the day and it’s crucial that you understand this thing called niche behavior before venturing into it full time.
#1 Not Everyone Is Into Essential Oils
It’s true. You might think that it’s a wonderful elixir that can ward off migraines and mosquitoes, but some people don’t believe in such things. I know this because none of my family members are interested. In fact, my dad who is all about health and wellness finds the smell of essential oils irritating. Strange, right?
Even for therapeutic purposes, not everyone believes that it will work. They would rather get advice from their doctors and take mainstream medication/treatment to rectify their ailments. It would take a lot of convincing (and patience) to get them to use the oils until they see positive results.
Chances are, you could be surrounded by these type of people which makes promoting Doterra a bit more challenging. We know for a fact that there’s a market out there, but they are likely not within your reach.
#2 Not Everyone Wants to Buy (Expensive) Essential Oils
Most MLM products are pricey and it’s largely due to all the labels that are being stamped onto their brands and I totally understand that. Good quality products always come with a price tag. But let’s not forget that a large sum also goes to pay for your commissions and bonuses. Some people are comfortable with that, some are not.
The point is, people might buy one or two bottles, but I wouldn’t be surprised if they choose a cheaper option down the road. For example, Doterra’s lavender oil sells for $28 for 15mls. For the same volume, one could buy from Mountain Rose at $12.75 and they are certified organic. That’s almost $15 dollars difference and for consumers, that’s a huge deal!
#3 One Bottle Can Last for a Very Long Time
In case you aren’t aware, essential oils are used in small quantities. Whether it’s for massaging or diffusing, it’s always recommended to use only a few drops into carrier oils or in the water. As such, it could take a few months or even a year, to finish an entire bottle.
From a sales point of view, it is a slow turn over product so in order to maximize profit, you actually need to sell A LOT of them to A LOT of people and that brings us back to the two main scenarios that I’ve mentioned earlier – audience interest and product affordability.
#4 Competing With The Online Market
If you’re planning to sell essential oils, you seriously need to look into what’s happening on the internet because 1) that’s where most of your targeted customers linger and 2) your competitors are using the online space to attract this group of people.
Nowadays, online shopping is a common activity and customers are fairly capable of deciding what they want by just doing some simple Google research. For example, a person who frequently experiences headache and is interested in essential oil remedy may type in this keyphrase “what essential oils are good for migraines”.
Guess what are the top 10 sites that appear on the first result page for that search term?
- #1 Independent Brand (your competitor)
- #2 Article Site
- #3 Article Site
- #4 Niche Blog (affiliate marketers, another competitor)
- #5 Niche Blog
- #6 Article Site
- #7 Niche Blog
- #8 Article Site
- #9 Niche Blog
- #10 Independent Brand
Viewers hardly go beyond page one to get their information so being among the top 10 is crucial if a brand wants to be discovered online. When we look closely, none of these sites are linked to the Doterra’s main website OR to any of the consultant’s webstore.
In other words, the brand is not ‘currently’ ranked for this term. Instead, you see more affiliate blogs and independent sellers dominating the results, for a good reason, because these sites offer so much (more) useful information and resources that help with the customer’s purchasing decision.
In case you don’t know, affiliate marketers are also bloggers who promote a certain brand and earn from sales commission (not recruitment) when someone purchase a product online through their unique referral link.
This list of affiliate programs actually shows that there are numerous brands worth considering other than just Doterra. Are you familiar with any of them?
- Eden’s Garden
- Axe Wellness
- Rocky Mountain Oils
- Plant Therapy
- Living Libations
- Heritage Oils
- Diffuser World
- Twenty 8
- Bulk Apothecary
- Starwest Botanicals
- Dr Eric Z
The other competitor that you’d be facing are those in the online marketplaces such as eBay. Now, judging from the numbers, it’s likely that this particular seller is making a lot, even when selling at a lower price.
For example, this lavender oil is almost $7 different from the ones on the original website. Whether it’s lawful or not to sell MLM products on these places is another matter altogether because I know for a fact that some companies prohibit their consultants from doing so.
So, Is Doterra Worthy of Your Time?
There’s no doubt that the essential oils niche is a huge one, but it has an extremely targeted audience that might also be very consumer savvy who prefer to buy online. So if you are still interested to become a Doterra consultant, you should pick up some online marketing skills instead of relying on a door-to-door type of business approach.
If you find the odds going against you, then it’s better to start an online business straightaway through any of the affiliate programs that I’ve recommended a while ago. That way, you have a better chance of making money, tapping on the hot market (people who are interested) versus the cold market (people who aren’t interested).
I hope this article has given you a better perspective on what to expect in an MLM venture. If you have any thoughts/questions, do get in touch with me at my recommended training platform or leave a comment below and I’d help out.
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Hi, Cathy. DoTerra is one of many MLM online business opportunities that sell “health and wellness” products, (usually in the form of essential oils) that flood the Internet. If you’ve seen one, then you’ve seen them all!
Formerly being involved with a few MLM online businesses myself, I am aware of the inherent fact that whatever financial gain a person involved in the opportunity can achieve either through sales or successfully recruiting others to be added to the down-line, part of that money earned would automatically go to people in that individual’s upline. DoTerra is no different. Yet, the company cannot be legally called a pyramid scheme as they do sell actual physical products.
You did a fantastic job proving the flaws that are within this company, particularly with their line of products. As you said not everyone is into essential oils, thus the customer base would be reduced. Plus not everyone is going to buy expensive products put out by DoTerra, further reducing the number of potential customers.
The product does last a long time so any customers that a member could put on her list, these people would not find it necessary to buy the oils with any degree of frequency.
Finally, you stated that similar products sold by competing companies all have much lower prices for their oils compared to DoTerra. Why would a person pay $40 for a bottle of DoTerra’s oil when the same product could be purchased at a competing company for even $10 less?
All of this leads one to conclude that it would be sheer folly on anyone’s part to believe that a DoTerra member/representative could attain long-term financial freedom with the opportunity offered by this company.
Hello there,
Recently I was introduced to an MLM which appeared to be an interesting line of business. I was preparing to get started when suddenly, I encountered some financial difficulties which actually persisted. I didn’t have the money to engage with the business so I dropped out of the company eventually.
During this time, I stumbled across Wealthy Affiliate. It was a perfect opportunity for me at a perfect time because it has a low-cost entry and flexible to work with.
Network marketing still adheres to traditional methods of distribution and 80% of sales are done face-to-face as revealed by statistics. In a rapidly evolving technological environment, everyone is going online to shop which implies that the targeted market for any product is actually in the online space.
So it’s really high time that people take the opportunity to learn the art of marketing online. These skills will be very useful in the near future for any form of business.
Hi Laurine, my story is very similar to yours too. The previous MLM company that I joined required me to buy products way beyond my budget and necessity. I started questioning if it’s really worth it and during then, I discovered the affiliate marketing business model. There are so many niches that can be involved without creating a cult-like community, if you know what I mean.
Online marketing based on consumer’s preference is the way to go for modern businesses.
Thanks for the review and one more reminder to keep clear of any MLM offers. Like you, I was involved in two or three similar skyrocketing money making promises. I do not believe in any of this offers anymore even when they warn me that it is not an easy money deal and hard work is necessary.
It’s shocking to find these products on eBay that sells at a much competitive price as compared to the ones on the official site. Sooner or later, customers will find them, and no one will want to buy directly from you anymore.
The danger to buying cheaper essential oils from eBay or other third-party sites is that they could have been tampered with such as repackaged and diluted with more carrier oils to increase the volume. The best way to cross check is to refer to the original packaging label on the official product and see if there are any discrepancies.
I hadn’t heard of Doterra before, so it obviously isn’t a well known brand name just yet. I have previously worked in the MLM field and I stayed for 5 years and loved it, but you are right it is not for everyone. You do have to work really hard.
Despite rising well within the ranks of the company, the hard work, time and effort did not ease up and I wanted to pursue a career in training in the corporate world which was one of the skills I picked up in MLM. So it wasn’t all bad for me.
Hi Karen, Doterra is actually a very well known brand in the aromatherapy industry. The other competitor is Young Living and I am sure there are a few consultants in your neighborhood. MLM requires a lot of social meet-ups to promote their business and this could become quite tiring for some people.
Very good information on the reality of MLMs. I tried working with an MLM company before, but didn’t really love their product enough to keep promoting it. One thing that can be done is to combine blogging and network marketing. I know a few people who have built their MLM up with internet marketing, but it can be very tricky and very competitive.
I am not quite sure about that Melinda, because most bloggers who are promoting MLM brands tend to be very product-centric, in my opinion. It’s always the same tone – their product is superior than anyone else’s, joining their team can lead you to financial freedom – it’s as if they are talking to you face-to-face.
Blogging might give them a better out reach, but the recruiting part will likely make people turn away.