Is doTERRA a Pyramid Scheme? What You Need To Know

doterra pyramid scheme

You may have been asked to purchase doTERRA products or even have been recruited into the business side of it. But should you trust this business? I mean after all they have received quite a bit of negativity from their members and customers over the years. So whats the deal?

Is doTERRA a pyramid scheme? Or is that just another rumor circling around? If you are interested in doTERRA but worried that they are operating an illegal pyramid scheme that could be shut down by the government at any second, then you need to read this.

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A Brief Overview

Doterra is a company that sells wellness products that are based around essential oils. They provide some very high quality products and are very expensive.

Not only does Doterra sell product, but they also offer a home-based business opportunity where anyone can go out and sell their products and make money.

The part of it all that brings up the whole “pyramid scheme” thing, is that they rely on their members recruiting others into the business to promote products and to recruit more members. And members get paid from the people that are beneath them, with are their recruits, their recruits’ recruits, and so on.

Their are a lot of wellness companies that have popped up over the years that rely heavily on recruitment, Melaleauca being one of the more popular. So this is nothing I haven’t seen before.


Lets Get Right To It… Are They a Pyramid Scheme?

The answer is no, they aren’t. But they do have many characteristics of one and they do run the possible risk of crossing the line and being shut down by the gov. And I know this might not make sense to you right now. But let me go over what exactly a pyramid scheme is and show you why this isn’t one.

What is a Pyramid Scheme?

A pyramid scheme has a pyramid style commission structure in which new recruits buy into the scheme, and this buy in payment goes to the members higher up on the pyramid.

One key characteristic of a “pure” pyramid scheme is that they do not sell any products. The entire cashflow is relies on new members buying into the scheme.

So obviously Doterra is not a “pure” pyramid scheme, as you could call it. Instead, Doterra is MLM.


Doterra Is MLM

MLM stands for multi-level marketing. And this is very similar to a pyramid scheme with the one major difference of MLM’s actually selling legitimate products, Doterra’s being essential oils.

Doterra, along with other MLM’s, do still have the pyramid style commission structure. This means you can get paid from your recruits, and their recruits, and so on.

Their compensation structure is somewhat confusing and there are several different ways that you will make money if you are a member. But just to give you a basic idea of what you are looking at with Doterra, below I took a screenshot of part of the plan…

As you can see you can get paid from people that are 7 levels beneath you on the pyramid.


Why It Could Still Get Shut Down By The Government

Ok, so you might think that its safe because I just described how it isn’t a pyramid scheme by definition.

But…. it still could be a pyramid scheme

Huh? I know I’m being confusing but just hear me out.

Not only must MLM’s have products to be considered legitimate, but they also must rely heavily on their products to turn a profit.

Any MLM can come up with a product to sell. But do they actually sell it? Or do they rely more heavily on recruitment of other members to turn a profit. That is the real question.

And the line between what the FTC considers a pyramid scheme and a legitimate MLM is kind of blurry. They have shut down plenty of MLM’s in the past that did have products and did make money from selling products.

But when the FTC thinks the business is relying too heavily on recruitment rather than the actual sale of products, they have the authority to close that business down.

There is a good article on MLM’s at FTC.gov that you can read over if you are interested.


Is Running Your Own Doterra Business Difficult?

The truth is that YES, it will be very difficult, especially if you are trying to sell their products.

Why is this difficult? Well, to put it simply… their products are a massive rip off. They are extremely overpriced and will be very difficult to sell.

Are their essential oils good? Yes, no doubt about it. They are very good quality and receive very good ratings generally. But still they are just too overpriced.

And just to give you an example of how overpriced they are, take a look at this…

On Doterra’s website they have a 15ml bottle of Ginger Essential oil that retails for $52…

And if you go to Amazon.com you can find easily find 50 different retailers selling Ginger essential oil for under half that price.

NOW has 30ml of Ginger essential oil plus 2 other bottles of oil available for just $29.99. That is almost half the price of Doterras, yet it contains 2 times the amount of Ginger oil and come with 2 other bottles.

Again this is just an example of the ripoff that Doterra is.

But apparently people do buy their products.


How to REALLY Make Money With Doterra

As with any MLM business out there, the real money lies in the recruitment of other members. If you can build up a big team beneath you then you can make some good money here. Get people below you making money and you can somewhat sit back and collect some of the money that they end up making.

Its all about recruitment when it comes to MLM. That is why you will see so many people going crazy recruiting other people. Because it can be very lucrative if you are good at it.


Do I Recommend Doterra?

I don’t particularly care for MLM opportunities myself because I find them to be very difficult to make it in. Only a very small number of people will actually be able to make a living doing something like this.

And it all depends on recruitment. If you are someone that is a great communicator or salesperson, then you might be good at recruiting others. But if you are not, then you probably don’t have a chance.

Its something like 95+% of people fail with MLM style businesses like this. Now don’t quote me on that, but I know it is extremely high.

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Comments, questions, concerns??? What do you think about Doterra? Leave your comments below…

    Kyle

    My name is Kyle and I am the owner of Online Financial Success Story. I created this website in 2015 to teach others how they can make money online. To learn how I make a full-time income online, Click Here

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