Product Name: doTERRA
Industry: Essential Oils
What is it?
A MLM company specializing in essential oils.
doTERRA is much more likely to cost you both time and money than it is to make you profit. There are some success stories which are very enticing to listen, but the majority of people that join do not have a ‘business plan' that extends beyond selling oils to friends and family.
Furthermore, there's no proof that doTERRA oils are better or higher quality than anything else on the market. Any ‘proof' is purely anecdotal. Personally, as someone with a scientific mind, I don't see the appeal of aromatherapy and I would put it in the same category as “power crystals”.
However, I do realize that a lot of people, especially women, enjoy using essential oils to relax, make the house smell nice, or truly do believe in the healing properties of the oils. If this describes you or your group of friends – keep reading to see if this network marketing opportunity is better or worse than others!
If you really do love essential oils, I'll also show you how to get your business online, so you can stop bugging friends and family to buy your stuff!
That's what makes my review of doTERRA especially interesting compared to anyone else online. I don't often use essential oils myself, but I think it's a very exciting business opportunity. Keep reading to find out where the doTERRA brand oils fit in.
What I Like About doTerra
Essential Oils Sell!
Despite the fact that I don't personally believe in the ‘healing power' of essential oils, I do actually use them in my house! Surprising, right?
I enjoy the different smells, and prefer them to using candles which can be a fire hazard and often have too strong of a smell. I don't use this particular company's products, but I do see how they can be useful, and actually fun to collect and try. My favorites so far are lavender and peppermint, but some of the blends sound really interesting!
Blending oils? Sounds super fun too!
What that means is that if I, a skeptic, actually buy this stuff, that there's going to be a pretty good size market out there to potentially purchase your products. “Natural healing” is a highly debated and popular topic online as well.
Another thing I like about doTerra's products is that people really understand and can make use of them. So many times with ‘health and wellness' MLMs, you find that the products themselves are hard to understand. I just reviewed another product with a healing patch which clearly had no health benefits other than placebo.
These oils are easy to understand for the average consumer. They smell good. Some help you relax, some help you focus, and other ones have other things they do.
I also know that some people are making money with this program. Of course, these folks tend to be very dynamic sellers, and natural leaders. They have large teams that they motivate to go out and recruit and sell. So there are people actually earning good money with doTerra, but I personally believe they are in the minority. I also believe that the majority of people earning with this company are not earning full time incomes – and are either breaking even, or barely turning a profit.
What I Didn’t Like
The Challenge of Becoming A Seller + Recruiter
Actually selling products is one of the most challenging aspects of any company like this and with doTERRA it’s actually harder than most other companies. For example, companies like Avon and Amway sell a range of different products that appeal to a wide audience, but that’s not the case with doTERRA.
Instead, doTERRA’s product line consists almost entirely of essential oils with a few other products that help to support the use of essential oils. This really limits the potential audience to only people that currently use the oils. Getting an oil user to try a new brand is one thing, but getting a non-user to start a new habit is a pretty hard sell, particularly when prices are around $42 (retail) for a 5ml bottle (yikes!).
While you, and experienced buyer might know and understand that one bottle lasts a long time, to a new buyer that can be a hard pill to swallow! Imagine spending $100 on just two tiny bottles.
Competition Pricing At A Shocking Discount
To make matters worse, you still have to contend with competition from other distributors and from other places that sell essential oils (and there are a lot of companies doing this).
You can purchase the exact same oils (also therapeutic grade) from Amazon at a 50% discount compared to their pricing in doTerra and other similar MLM companies. Unfortunately, Inflated pricing is a common theme in network marketing companies, and very rarely is there a legitimate product-related reason for the pricing.
The only reason I know of is so the company can make money off product sales, but still allow distributors to earn money by selling retail. By buying from a retail sales person instead of directly from the company, there's another middleman that needs to turn a profit!
So my question to you is – can you think of a good reason why I should spend $40 instead of $15 on something that looks similar and has 5 star reviews + 2 day shipping on Amazon?
Update: It seems that doTERRA has not been truthful in its advertising! According to many people, their claim to having “Certified Pure Therapeutic Grade” is just not true!
Selling Products is Only Half of the Story
doTERRA is a MLM, or network marketing company. They sometimes call it direct selling, but the idea is the same The concept is that you grow a home-based business through the company as an Independent Product Consultant or Independent Business Operator. There are many names but it basically means that you are a sales person. You buy wholesale, then sell at retail price.
However, a huge incentive for joining an MLM instead of just selling any old product is that a consultant receives income by recruiting other people into the company. Then, you also make money from whatever the recruit sells. If they recruit, your ‘downline' grows, and so does your income.
That graphic looks really sweet, but most people grossly underestimate how difficult it is to pitch a ‘business opportunity' to people. Most folks are happy with their 9-5 job, or if they are not happy, they are too scared (or lazy) to do anything different. It takes a very unique and motivated individual to seek out and try business opportunities.
Because of this, the hard truth is that most of your friends, family, and coworkers are simply not going to want to join your team. Some might – but of those that actually do bite, only a small percentage will contribute to your monthly income.
Theoretically, the multi-level earning possibilities are great! But practically speaking, they rarely pan out to be ideal.
The vast majority of doTerra members just do straight selling of the oils (no recruiting), and do not make full time incomes doing it. If that sounds fine to you, then this may be a good opportunity for you to try! However, for me and for many others, we will only settle for a full time, reliable income.
So how do you become a ‘super seller' or top recruiter within the company? You need to look beyond your closest connections and stop looking at family/friends as potential sales targets. You need to get your business online and start marketing to people that care about what you're selling. Instead of convincing people to buy stuff they don't really want, help people that care about the same things you do, and make money doing it!
Tens of thousands of people are searching online right now for information about essential oils: How to use them, which ones are good, and what blends are the best. But starting a website and sharing your knowledge, you can actually make sales 24/7 across the US and the globe!
Yes, I know that doTerra gives you a website, but there's no enough training on how to get traffic to your site and actually make sales from it.
Essential oils are very popular right now, and doTerra is just one brand that you can promote. Regardless of whether or not they are “better”, you need a rock-solid reason why people should pay more than double the cost of other brands. The big money makers in the company are people with large teams, so if you want to get big paydays with this company, you simply cannot limit yourself to selling to people you know. You need to get your business online and learn how to get traffic to your website.
An Alternative Strategy To Earning With “Natural” and “Green” Products
Personally, MLM or direct selling is not my cup of tea. It depends too much on being able to pitch a ‘business opportunity', and relies a lot of the motivation of your downline to be effective seller and recruiters. I personally like to rely on my own work to make money, so I can get 100% of the benefits of my labor.
If I were going to sell essential oils, I would not limit myself to just that product. I would start website about natural healing and promote many related products. That's actually what I do right now, though not related to that specific topic.
How do I earn money online? I create websites about cool stuff I enjoy doing like making beer, computer software, and tasty food. I learned how to make money blogging through a online training center. Whatever you want to promote, you can do it with a website and reach the entire world.
Got any questions? Let me know below!
Whatever type of product you decide to promote, it's important to own your own website to grow your business.
Parties only work if you have a network of friends with money in their pockets. Network marketing only works if your friends are interested in joining business opportunities.
With a website you can reach the entire world, and only promote great products to people interested in what you have to say. Plus, you open up doors to multiple streams of revenue like affiliate sales, ad click revenue, paid advertising, and even selling your own digital products.
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