If you have been trying to make money online, you must have come across “opportunities”. These opportunities allow you to become a part of the company and be an independent seller. This business model is known as multi-level marketing, and if you came across doTERRA, you might’ve wondered is doTERRA a pyramid scheme?
Yes, MLMs are often connected with pyramid schemes because they’re often unregulated until it’s too late. If things get out of control, independent sellers can lose everything.
Multi-level marketing isn’t all that bad, but it can easily turn into a pyramid scheme or a scam. In this article, I’ll show you everything you need to know about doTERRA, how much is this opportunity going to cost you, but also a better model to make money online – so keep on reading!
Overview & Rankings
Training: 3.5 out of 5.0
Benefits: 1.6 out of 5.0
Support: 2.0 out of 5.0
Price: $35/month + $25/year
My Overall Rank: 2.3 out of 5.0
Is doTERRA a Pyramid Scheme?
Of course, doTERRA is a regular company that has been around for just over a decade and it is a well-known company that sells essential oils and related home products.
The company is definitely legit, but what you’re wondering is if its multi-level marketing program is good enough, right?
Yes, it’s not a secret that doTERRA has a multi-level marketing program, even though it’s not so easy to spot it when you visit doTERRA’s landing page.
It looks like doTERRA is trying to stand apart, but yes, this is an MLM company. doTERRA provides the “opportunity” for people to work from home, have a flexible schedule, create a stable financial income stream, and most importantly – make a difference in the world.
doTERRA also claims that their products are the most tested products on the market, that the company is the most trusted MLM company, and that they’re helping millions of people worldwide.
But is all of this true? Is doTERRA’s MLM program really different?
doTERRA claims that you can make anywhere from an extra $300 to $10,000 a month or even more. Of course, the more you put into your “business”, the better result will be.
On top of that, doTERRA claims that you can work anywhere from 5 hours a week to 35 hours a week (or more) to build your “business” and make it a success. Except you won’t be building anything, yet you’ll be promoting and hard-selling doTERRA products to others.
I must say that doTERRA has one of the most informative landing pages for its MLM program. However, they tend to sugarcoat things, in my opinion.
But is doTERRA a pyramid scheme? Even though doTERRA isn’t labeled as a pyramid scheme by FTC at the time of writing, it is very likely that doTERRA becomes a pyramid scheme because it advises its members to recruit others.
Federal Trade Commission (FTC) advises everyone to stay away from multi-level marketing opportunities where you are instructed to recruit other members into the program in return for a higher commission or bonus rates.
One thing that doTERRA is really good at is education. They’re really good at educating others about the oils, essentials, and how their own products work, but also what benefits the user can gain.
The same goes for the explanation of their MLM program which also leads to decent multi-level marketing training for its members.
I’ve also heard good things about doTERRA products, but I am still on the fence about whether these products are really as good as they’re advertised. Of course, you have to remember that doTERRA is an MLM company and positive reviews and positive feedback are one of the ways members use to sell the products.
I’ve noticed that there are lots of different products offered directly through doTERRA’s website with a great explanation and media that supports the product pages well. This can definitely help everyone who’s doTERRA’s MLM member.
When it comes down to the bad side, I believe that the biggest issue is that doTERRA instructs its members to recruit others. It also shifts the focus on recruitment by providing a better commission rate and bonus.
This is a big no in the multi-level marketing industry because all MLM programs that focus on recruitment tend to crash at one point or another. If caught on time by FTC, big lawsuits and changes in the MLM programs are a must.
Another thing I’ve learned is that doTERRA is founded by employees of Young Living. With that being said, it’s no coincidence that doTERRA was sued by Young Living for “stealing” proprietary material for producing and basically copying some of the oil products.
Also, I don’t think that doTERRA doesn’t have any exclusive product that they’ve crafted. Upon deeper digging, I’ve also discovered that doTERRA doesn’t own any plants from where they distract the oils yet they rely on third-party productions. This can also have a huge impact on the quality of the products.
Considering the average price of the doTERRA products, it might be really hard to sell these oils to someone who is really into oils or is familiar with the company.
And since this is a multi-level marketing company that is based on a narrow niche, it can be really hard to sell products to people. Others have been either pitched doTERRA products before, or they already get them on their own and aren’t really considering working with MLM members to get a discount.
How Much Does it Cost to Join Doterra?
The standard joining fee is $35 which gives you the “Wellness Advocate” status. However, you can also join by purchasing the starter kit that costs at least $140. This includes products that you can either test yourself or resell to others.
As a distributor, you’ll also need to pay a yearly fee of $25 to stay a distributor. This also gives you the ability to purchase products wholesale and selling them at retail price.
Is Doterra Worth it?
I don’t think doTERRA is worth it for a couple of reasons. First, multi-level marketing isn’t as easy as it is described by companies such as doTERRA.
Second, doTERRA’s compensation plan is purely based on the difference you can make from purchasing the products at wholesale price and selling them at the retail price. This is also very hard for MLM members as some consumers would rather make the orders themselves since there’s often no difference in price for them.
There are volume-based bonuses, but it takes a lot to get to the rank where you can actually benefit from these bonuses.
When we consider the products, the prices of the products, compensation plan, and the price you have to pay to be a doTERRA distributor, the numbers don’t add up and you will most likely spend a lot of time trying to hard-sell the products without much luck.
You’ll have to work very hard to make some extra income, but you’ll still be far from creating a stable income stream or even better yet, replacing your job or creating a very successful business.
Therefore, I don’t think doTERRA is worth it since there are better ways to make money remotely and online.
Oh and yes, you’ve come here wondering is doTERRA a pyramid scheme, so you probably weren’t too optimistic, but I am hoping that I was able to give you a clear idea of how this MLM operates and what awaits you if you join.
What I Recommend Instead
What I recommend instead is either trying to learn a new skill and freelance it for active income or learning affiliate marketing and creating a business around it.
Wealthy Affiliate is my number one recommendation. It is an educational platform that teaches people how to build a niche site from scratch, create valuable content, target keywords and get the website ranked in search engines for free, acquire free organic traffic, and monetize the website using affiliate marketing programs.
This is a long process, but it is a process where you actually build your own business and you will only rely on affiliate programs. You can be a member of as many affiliate programs as you wish. On top of that, affiliate programs are free to join and you won’t only have to depend on one program.
As a result, you will be able to create a long-term and sustainable passive income stream that has no cap on the earnings you can make.
So is doTERRA a pyramid scheme? Very likely it is and I hope that FTC checks this MLM program so the damage is very minimal for people who are only looking for a way to build a business.
I wrote a long post on why multi-level marketing should be avoided and why is it often a scam so I recommend giving it a read.
I also have many posts on other business models that you can use to create a legit and sustainable business from the comfort of your home.
Wealthy Affiliate is one of the top educational platforms that’s free to join and yet it has been around for 15 years with mostly positive experiences and case studies.
Therefore, learn a skill, build your own business without depending on only one company – and you won’t have any issues in the long run!
Did you consider joining doTERRA? What made you change your mind and check out this review?