As a potential or existing doTERRA distributor, understanding how the commission structure works is crucial to building a successful business. With a well-designed compensation plan, doTERRA provides unlimited earning potential for its distributors, making it an attractive opportunity for entrepreneurs and health enthusiasts alike. In this article, we’ll delve into the intricacies of the doTERRA commission structure, exploring how it works, the different types of commissions, and tips for maximizing your earnings.
Understanding the doTERRA Compensation Plan
doTERRA’s compensation plan is designed to reward distributors for their sales efforts, leadership, and teamwork. The plan is based on a hierarchical structure, with three main components:
Unilevel Structure
The unilevel structure is the foundation of the doTERRA compensation plan. It consists of a single line of sponsorship, where each distributor is placed below the person who sponsored them. This structure allows distributors to earn commissions on the sales of their downline, which includes their personally sponsored members and their subsequent downline members.
Retail Sales
Distributors earn a retail profit on the sale of doTERRA products to retail customers. This profit is the difference between the wholesale price and the retail price of the product.
Residual Income
Residual income is earned through the sales of downline members. Distributors earn a percentage of the sales generated by their downline members, which can lead to passive income and long-term financial stability.
Types of doTERRA Commissions
doTERRA offers several types of commissions, each designed to reward distributors for their efforts and accomplishments.
Fast Start Commission
The Fast Start Commission is a one-time commission paid to distributors for enrolling new members. This commission is 20% of the new member’s initial order and is paid to the sponsoring distributor.
Unilevel Commission
The Unilevel Commission is a residual commission paid to distributors for the sales generated by their downline members. This commission ranges from 2% to 7% of the sales volume, depending on the distributor’s rank and the level of their downline members.
Leadership Commission
The Leadership Commission is a bonus commission paid to high-ranking distributors who have achieved specific leadership ranks. This commission ranges from 1% to 5% of the sales volume generated by their downline members.
Power of 3 Commission
The Power of 3 Commission is a bonus commission paid to distributors who have three or more personally sponsored members who have achieved specific sales targets. This commission ranges from $500 to $10,000, depending on the sales volume generated by the distributor’s downline members.
How to Maximize Your doTERRA Commissions
While the doTERRA compensation plan offers unlimited earning potential, maximizing your commissions requires dedication, hard work, and a strategic approach.
Build a Strong Downline
Focus on building a strong downline by sponsoring and mentoring new distributors. As your downline grows, so does your earning potential.
Develop a Sales Strategy
Develop a sales strategy that targets both retail customers and potential distributors. This will help you generate consistent sales volume and increase your commission earnings.
Stay Active and Engaged
Stay active and engaged with your downline members, providing training, support, and guidance to help them succeed.
Leverage doTERRA’s Online Tools
Leverage doTERRA’s online tools, such as the Virtual Office and the doTERRA app, to manage your business, track your sales, and communicate with your downline members.
doTERRA Ranks and Requirements
As distributors progress through the ranks, they unlock new commission levels, bonuses, and leadership opportunities. Here are the main doTERRA ranks and their requirements:
| Rank | Requirements | Commission Rate |
|---|---|---|
| Distributor | Initial order of 100 PV | 20% Fast Start, 2% Unilevel |
| Consultant | 200 PV, 1 active leg | 20% Fast Start, 3% Unilevel |
| Manager | 500 PV, 2 active legs | 20% Fast Start, 4% Unilevel |
| Director | 1,000 PV, 3 active legs | 20% Fast Start, 5% Unilevel |
| Executive | 2,500 PV, 4 active legs | 20% Fast Start, 6% Unilevel, 1% Leadership |
| Elite | 5,000 PV, 5 active legs | 20% Fast Start, 7% Unilevel, 2% Leadership |
Conclusion
doTERRA’s commission structure is designed to reward distributors for their hard work, dedication, and leadership. By understanding how the compensation plan works, building a strong downline, and developing a sales strategy, distributors can unlock their earning potential and achieve financial freedom. Remember to stay active, engaged, and leverage doTERRA’s online tools to maximize your commissions and succeed in the business.
What is doTERRA’s compensation plan, and how does it work?
doTERRA’s compensation plan is a multi-level marketing (MLM) structure that rewards its Wellness Advocates for selling products and recruiting new members to join their network. The plan is designed to incentivize Advocates to build a loyal customer base, promote the brand, and grow their business. The compensation plan consists of several components, including retail sales, preferred customer sales, and team bonuses, which are paid weekly and monthly.
To earn commissions, Wellness Advocates need to purchase a starter kit, which includes a set of essential oils and business tools. They can then sell products to customers and earn a retail profit, or they can recruit new Advocates and earn commissions on their sales. As Advocates build their network, they can advance in rank, unlocking higher commission rates and additional bonuses. doTERRA’s compensation plan is designed to be transparent and rewarding, providing numerous opportunities for Advocates to earn income and build a successful business.
How do I become a doTERRA Wellness Advocate, and what are the benefits?
To become a doTERRA Wellness Advocate, you need to purchase a starter kit, which ranges in price from $35 to $250, depending on the kit you choose. The starter kit includes a selection of essential oils, business tools, and a membership that grants you access to doTERRA’s products at wholesale prices. As a Wellness Advocate, you’ll be able to purchase products at a 25% discount, earn commissions on your sales, and participate in doTERRA’s loyalty program, which rewards you with free products and points redeemable for free oils and other perks.
As a Wellness Advocate, you’ll also have access to doTERRA’s comprehensive training and support resources, including webinars, workshops, and online tutorials. You’ll be able to connect with other Advocates and mentors who can guide you in building your business. Additionally, you’ll be able to take advantage of doTERRA’s generous compensation plan, which offers numerous opportunities to earn income and build a successful business. With doTERRA’s reputation for quality products and commitment to empowering Wellness Advocates, becoming an Advocate can be a rewarding and profitable venture.
What is the difference between a Preferred Customer and a Wellness Advocate?
A Preferred Customer is an individual who has purchased a doTERRA product, but has not signed up to become a Wellness Advocate. Preferred Customers purchase products at retail prices and do not have access to the same benefits and discounts as Wellness Advocates. They do not earn commissions on their purchases, and they are not eligible to participate in doTERRA’s loyalty program or compensation plan.
In contrast, a Wellness Advocate is an individual who has purchased a starter kit and has become a member of doTERRA’s sales force. Wellness Advocates purchase products at wholesale prices, earn commissions on their sales, and have access to doTERRA’s loyalty program and compensation plan. They also have access to training and support resources, as well as the opportunity to build a business and earn income. While Preferred Customers can benefit from doTERRA’s high-quality products, Wellness Advocates have a more comprehensive and rewarding experience with the company.
How do I earn commissions as a doTERRA Wellness Advocate?
As a doTERRA Wellness Advocate, you can earn commissions in several ways. First, you can earn a retail profit by selling products to customers at the suggested retail price and keeping the difference between the retail price and your wholesale cost. You can also earn commissions on the sales of your team members, who are Advocates you have personally enrolled in the business. Additionally, you can earn bonuses on the sales of your team, known as Power of Three and Power of Five bonuses.
To earn commissions, you need to meet certain requirements, such as purchasing a minimum amount of product each month, enrolling new Advocates, and selling products to customers. Your commission rate will depend on your rank, which is determined by your sales volume and team growth. As you advance in rank, you’ll unlock higher commission rates and additional bonuses. doTERRA’s compensation plan is designed to reward Advocates who build a loyal customer base, promote the brand, and grow their business.
What is the doTERRA rank advancement system, and how does it work?
doTERRA’s rank advancement system is a way to recognize and reward Wellness Advocates for their sales achievements and team growth. The system consists of several ranks, each with its own set of requirements and benefits. As Advocates meet the requirements for each rank, they advance to the next level, unlocking higher commission rates, additional bonuses, and other benefits.
The ranks, in order of advancement, are: Wellness Advocate, Premier, Elite, Premier Elite, Director, Executive, and Diamond. Each rank requires a specific sales volume, team growth, and other performance metrics. As Advocates advance in rank, they gain access to higher commission rates, bonuses, and other perks, such as leadership pools and global bonuses. The rank advancement system is designed to motivate Advocates to build a successful business, promote the brand, and grow their team.
How does doTERRA’s compensation plan compare to other MLM companies?
doTERRA’s compensation plan is generally considered to be one of the most generous in the MLM industry. With a high commission rate on personal sales, a comprehensive bonus structure, and a rewarding rank advancement system, doTERRA’s plan provides numerous opportunities for Advocates to earn income and build a successful business. Additionally, doTERRA’s plan is designed to incentivize Advocates to focus on building a loyal customer base, promoting the brand, and growing their business, rather than just recruiting new members.
Compared to other MLM companies, doTERRA’s plan is unique in its simplicity and transparency. The company provides clear and detailed information about its compensation plan, including commission rates, bonus structures, and rank requirements. This transparency allows Advocates to make informed decisions about their business and plan their strategies accordingly. While other MLM companies may offer similar compensation plans, doTERRA’s plan is particularly generous and rewarding, making it an attractive option for entrepreneurs and network marketers.
What kind of support and training does doTERRA offer its Wellness Advocates?
doTERRA offers a comprehensive range of support and training resources to its Wellness Advocates. These resources include online tutorials, webinars, workshops, and one-on-one mentoring from experienced leaders. The company also provides a wide range of business tools, such as marketing materials, sales scripts, and product information, to help Advocates build their business.
In addition to these resources, doTERRA has a strong community of Wellness Advocates who support and motivate each other. The company’s events, such as conferences and leadership retreats, provide opportunities for Advocates to connect with each other, learn from industry experts, and gain new insights into building a successful business. doTERRA’s commitment to empowering its Wellness Advocates with the skills and knowledge they need to succeed sets it apart from other MLM companies and makes it an attractive option for entrepreneurs and network marketers.