Is Young Living a Pyramid Scheme? What You Should Know
If you are thinking about joining Young Living as a distributor you might want to think again. This business opportunity is not all it is hyped up to be and there are a few things that everyone should know before getting involved.
Young Living is a mlm business, which simply put means that you can make money by recruiting other people into the business beneath you and earn commissions from their slave efforts. Is Young Living a pyramid scheme because of this? I wouldn’t go as far as to say that, but they definitely are leaning close to one anyhow.
In this review I’ll be going over what you really need to know about Young Living. If you were subject of recruitment into this business there is a good chance you were fed a bunch of fairy-tale lies that make it sound better than what it really is. The truth is that YES, you can make money, and some people make very good money…. but its not quite as good as you may have heard and I’ll go over why.
But first let me go over how this business opportunity works an all.
Young Living is a company that sells essential oils and products infused with essential oils. They have what is called a direct sales business model. And what this means is that any individual can become a member and start their won Young Living home based business.
Their business model is also a mlm, which means that there are different levels within the business and you can recruit other members beneath you and make money off of them.
How It All Works
As a distributor of Young Living you will be selling Young Living products directly to customers. How it works is you will have a bunch of sample products that you will give to people. And when someone wants to buy Young Living products you will set them up with a buyer account at youngliving.com. And when they buy products you will receive commissions.
To start out as a distributor you will first have to purchase a Starter Kit. There are several different kits but the two most common are the Basic Kit and the Premium Kit. These kits provide you with business materials, product guides and price listings, sample products, and other things you need to get a kickstart and your business up and running.
The Basic Kit is the cheapest and will cost you $45…
But you will be pushed to purchase the Premium Kit which will cost you $160…
How You Make Money
There are 2 main ways that you will be able to make money. These include selling products directly to customers and recruiting new members in the business beneath you.
This direct sales mlm company is different from many others. Because instead of carrying around a bunch of products and selling them right to the customers, you are instead getting them to create a buyer account and purchase the products online.
So in a way this is like affiliate marketing, where you just refer people to buy products and get paid commissions for your referral.
And as I said, you will get sample products to help sell people on these products.
With each customer sale you make you will receive 24% commissions. And you will also receive commissions on purchases they make in the future since you were the one that referred them to create an account.
Recruiting new members into the company beneath you on your downline is where the real money is at, and all the big-time earners know that.
You see, mlm stands for multi-level marketing. And this means that there are multiple levels above and beneath you. The person that recruited you into the business (if any) will receive commissions from your efforts and you can receive commissions from the people beneath you, including your recruits, their recruits, and so on.
In a mlm business like this one you will earn the biggest commissions from the recruits directly beneath you, and as you go further down the pyramid commission structure you will earn less commissions, but at the same time there are more people so you still can earn a lot.
The money will slowly trickles up the pyramid and fills pockets of those above that person.
How This MLM Works
As I said, if you want to make good money with Young Living then you are going to have to recruit people in like a madman. You are going to have to take full advantage of its mlm structure and get as many people beneath you as possible.
You can see part of the how Young Living’s commission structure works below… This is only part of it but it gives you and idea of how it all works.
As you can see, when you start out you are called a “Distributor”, and there are 2 levels of Distributors. On the first level you won’t be able to take advantage of the mlm structure at all. But once you get 100 PV (product volume), meaning that you sold 100 products, then you unlock levels 1 & 2 of the compensation structure. And this means you can earn commissions from those beneath you.
Isn’t This A Pyramid Scheme?
You could argue that Young Living is a product based pyramid scheme because members receive commissions from recruiting new members. They earn money because new members have to purchase Starter Packs to get started and they earn a commission from those purchases.
In order for it to be classified as a pyramid scheme it would have to be overly revenue dependent on recruitment and new members buying starter packs rather than selling products to the general public.
There is definitely a big incentive to go out there and recruit more members in to the business and make money off of them. but Young Living’s products are good products and they do sell them to the general public and put effort into marketing them, so I don’t thing it would be appropriate to go as far as to say that this is a pyramid scheme.
I would classify this as a mlm that leans awfully close to one though. And I guess the government sees it as legitimate too because they haven’t shut them down yet.
But just because it isn’t an illegal pyramid scheme doesn’t mean you should go join.
Related Reading: Difference Between MLM’s & Pyramid Schemes
Its More Difficult Than They Tell You
I’ve said it and I’ll say it again, this is not easy. In order to make good money you are going to have to sell and recruit like crazy. You are going to have to climb the ranks and get to the top of their mlm structure to make good money.
The statistics prove it. The chart below is an official income chart from Young Living for all active distributors in the year 2015. I know its a bit old but this is the newest disclosed report I could find…
As you can see, 93.1% of all people that joined are still at the Distributor rank. And this group of 93.1% of all members averaged $1/month income. Now that number is very distorted and my guess is because the majority of these members just gave up because it was too hard for them.
But even if you move up 3 ranks higher to the Executive rank the average monthly income is still just $549.
My point here is that its not easy. You can make money, Yes, you can make a ton of money. I mean look at the highest rank, the Royal Crown Diamond rank averages $141,851/month. That is insane. But that is because these people are at the top of the pyramid with thousands of people beneath them that they are getting commissions from.
If you look at the percentages, 99% OF ALL MEMBERS FAIL TO MAKE A FULL TIME INCOME. That is quite a statistic.
Final Thoughts & Do I Recommend This Opportunity?
Young Living’s products are very good. I am not saying anything bad about them.
The problem with this business is that it rewards members too much for recruiting new members. The MLM structure leads to many members recruiting new people in by deceptive means, all in order to make some money off of them.
Much of the sales pitches you hear are very misleading. The truth is that it is very hard to be successful in this business. You have to be a recruitment machine to make good money.
And although this is very characteristic of a pyramid scheme, I don’t think you can classify it as such.
If you are like me and are just not the salesperson type and don’t think a recruitment style business like this is right for you.. and you want another option for making money with your own business, you should take a peek at how I make a living working online (link below). I work for myself online and its a pretty awesome career. In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂