A 2016 U.S. based research study by a reputable third party organization highlighted various aspects of the growth opportunity of doTERRA® in the coming years. Key takeaways from this study include the following:
- 65% of the general population looks to natural products to improve their health
- 66% of the general population has never used essential oils. More than
- 50% of those that have not tried essential oils expressed an interest in trying them.
- 18% of the general population are familiar with doTERRA essential oils.
- 55% of people 18-39 years old currently use natural products, pointing to the growth in popularity of natural solutions.
- The most popular method to find out which natural product to use and how to use those products continues to be from the recommendation of a friend.
This method is 50% more common than referring to an advertisement.
Because of the tremendous potential for the continued growth of doTERRA, and because word of mouth or personal referral is the most common method of people learning about essential oils, doTERRA is very committed to direct selling as the vehicle by which its CPTG Certified Pure Therapeutic Grade® essential oils are marketed. Direct selling is generally defined as the selling of goods away from a fixed retail location and includes personal involvement by someone experienced in the use of the goods being sold.
doTERRA is an essential oils company that markets through direct selling. The above referenced study also explored doTERRA’s direct selling channel and revealed that 85 percent of the people that joined doTERRA did so primarily to get high quality essential oils at a discount for themselves and their family. Only 15 percent joined primarily to start a “for profit” business enterprise. 67% of all new doTERRA members join as a wholesale customer.
Therefore, the vast majority of the approximately two million doTERRA members around the world are primarily focused on getting access to high quality essential oils and other products offered by doTERRA at the most reasonable price possible. doTERRA supports this desire by having a very generous Loyalty Rewards Program that has extremely high participation rates and a near 100 percent point redemption rate by loyal consumers. Additionally, doTERRA offers regular promotions and other opportunities for members to purchase products at a discount. The above referenced study of doTERRA members showed that after the quality of the company’s essential oils, the next three things respondents believe the company does best include: being a values-based organization, providing great customer support, and offering a compelling compensation plan.
Supporting this extremely high focus on products, the doTERRA compensation plan provides a robust earnings opportunity for all Wellness Advocates. Wellness Advocates are doTERRA members that have enrolled to receive the deepest product discounts. While more than 85% of all doTERRA members join to focus primarily on the ability to buy high quality oils at a discount, they can and do earn commissions for their efforts based on the sales of product within their organization. During 2016, the company paid commissions to approximately 259,000 Wellness Advocates in the United States which is approx. 25% of all U.S. based dōTERRA members that made a purchase from the company during the year. The majority of those Wellness Advocates earned enough to pay for a portion or all of their own product purchases each month.
Specifically, 12% of doTERRA members do not become Wellness Advocates and cannot earn commissions. Wellness Advocates classified by the rank of Consultant account for 74% of all doTERRA members and don’t generally enroll other members or earn commissions. Entry-level Wellness Advocates with the rank of Manager, Director and Executive earn up to $1,370 annually in commissions and account for 9% of all doTERRA members. At the mid-level ranks of Elite and Premier (4% of all doTERRA members), Wellness Advocates learn about participating in doTERRA as a business and are almost always doing the business on a part-time basis. Average annual earnings for these ranks range from $3,650 to $8,900 per year.
The highest levels in the commission plan are the leadership ranks (approx. 1% of all doTERRA members) and the 2015 average annual earnings for these ranks are shown in the following chart. Within these ranks are some doTERRA members that conduct business on a full-time basis. This chart shows the rank, the average annual earnings of Wellness Advocates paid at that rank during 2016, and the percent of people within these leadership ranks who were paid at that specific rank in the United States: