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Last Updated on January 4, 2020 by Brenda
Are you contemplating Multi-Level Marketing (MLM)? These are sometimes known as Affiliate Programs, Direct Sales, Network Marketing, Referral Marketing, and Pyramid Selling companies that you might be familiar with such as Avon®, Amway™, Mary Kay®, Shaklee®, LuLaRoe, Pampered Chef, and many more.
This article is for beginners, intermediate, and seasoned essential oil users alike.
1. What is Multi-Level Marketing?
It is a marketing strategy to sell products or services where you and others market and sell the items of the company making money from a pyramid-shaped compensation system to you. The company makes money and you earn a commission on your sales.
The graph at the right shows the blue individual who receives payments from the sales of the red members down line. It’s called a pyramid system because the method is a pyramid shape.
Each MLM company states its financial compensation plan to pay all the people in the chart.
There are two sources of revenue. The first is pay from commissions of sales made by the people right to their retail customers. The second pay can be paid from the sales of the people known as distributors in red shown in the graph who were recruited by all others below them in red. The ones below are called down line distributors, since they are below the person on top in blue.
The MLM sales people are required to sell the company’s products to the end user retail buyers by referrals, word-of-mouth, and most important, they are offered a bonus for the others they add to the pyramid. The bonus motivates the people to continue to add more people below them in red. These people then become their own down line distributors.
The FTC (Federal Trade Commission) studied 350 MLM businesses and found that 99% of the people who join MLM businesses lose money.
Even so, MLMs continue to operate since the members beneath them are egged on to believe that they will earn large returns of money while the probability of this is not pointed out.
The unmanageable rapid increase of a classic pyramid scheme. With exponential growth of a positive value, the rate of increase steadily increases. Exponential growth is so powerful because when the rate continues to increase, the value goes up very rapidly.
MLMs are illegal in some areas as a simple variation of the traditional pyramid scheme, including mainland China. The green areas in the map below are illegal for pyramid schemes. Pyramid schemes are illegal in the USA. Remember the Bernie Madoff Ponzi scheme where he stole billions of dollars from people?
In the sub-tree dual plan, the outside is the power leg and the inside is the profit leg. Under the power leg, the new distributors are always under their recruiter. Another component of the dual (binary) plan is that each member is responsible for recruiting and sponsoring two others to join this plan that can lead to quick growth. This permits the profits from getting a new person to be shared by predecessors in the power leg in spite of who recruited them.
In binary (dual) payment plans, the least amount of money is the pay leg known as balanced volume. Both sub-tree members are paid a percentage of the pay leg’s growth no matter how much that person is responsible for.
This will leave the difference between the more profitable and the pay leg to remain and not be paid out.
The binary plans work by the same reasoning as other MLM processes under the four areas of the law that oversees the MLM business.
- Anti-Pyramid Laws—are to be classified as not a pyramid scheme that is illegal to operate. This means that the binary plans must give the people payment based upon actual sales and not for signing up other members only.
- Business Opportunity Laws—the company with the binary plan must file with their area’s proper government office an annual or biannual report that details the program, finances, and give the identification and all information regarding the promotors and distributors of the company.
- Securities Laws—to get around being known as an illegal security acclaimed as an investment contract, the people who enlist people into the binary plan cannot steer possible members to think that the profits will come from them or another third-party person or entity.
- Lottery Laws—are comparable to Security Laws in that recruiters and organizers of the binary plan do not mislead the members that profits are decided by chance, such as a lottery, and is solely by the skill of the new people in the association. This is accomplished when the organizations in the binary plan have required involvement in marketing, sales, and management endeavors.
2. MLM Essential Oil Companies
There are only a few MLM essential oil companies:
- Young Living™
- Be Young Total Health™, a forthcoming company
Young Living™ is the top Multi-Level Marketing (MLM) network company. This means you can make money by selling Young Living™ products and by referring new consultants to participate in the compensation plan. You can join and signup now if you are interested and make lots of money where generous bonuses and rewards can be earned with this program.
You will appreciate the 24%-off of the retail price for your favorite products and participate in the compensation plan earning commissions. You can enjoy the exclusive Young Living™ events globally. You will benefit from their Essential Rewards when you build your own business.
dōTERRA® is a Multi-Level Marketing (MLM) network company. What does this mean to you? It means you can make money by selling dōTERRA® products and by referring new consultants to participate in their compensation plan.
To become a dōTERRA® consultant, all you have to do is pay a registration fee to get access to the products at a wholesale price below retail. You will pay the registration fee for many ways to make money. The dōTERRA® products will sell at retail prices and you refer new consultants. You will make even more money on the consultants’ sales and on the consultants they sponsor. Generous bonuses and rewards can be earned with their program and you can have your own personal website as well.
Be Young Total Health™ is an upcoming MLM essential oil company not sold on Amazon and does offer its Independent Distributor Plan.
You will receive commission on sales and as a loyal product partner, enjoy 20% savings off the retail cost continuing a monthly shipment of at least $31.
Read more about the plans here.
The properties of their German Chamomile, (Matricaria recutita), come all the way from Egypt where it is grown.
These essential oil companies are non-MLM businesses. These are not listed in any preferential order:
- Edens Garden®
- Healing Solutions®
- Majestic Pure™ Cosmeceuticals
- Now Foods (NOW®)
- Plant Guru™
- Radha Beauty
- Rocky Mountain Oils™
Edens Garden® is not an MLM company yet does provide a Rewards Program called Aroma Notes when you purchase essential oils and other products at their website.
You must be 18-years-old to join to earn up to 5000 points. The points start the day you sign up.
Your points never expire and you are never hassled to buy products when you don’t want to.
This only applies to their website and not on Amazon if you buy there.
Healing Solutions® offers their Oil of the Month Club but is not an MLM company. The have a Basic, Deluxe, and Premier program for newbies/beginners, intermediates, and seasoned users of essential oils.
With the Basic plan, you will get 1 essential oil monthly; with the Deluxe plan you will get 2 essential oils monthly; and with the Premier plan, you will get 3 essential oils each month.
These can be a single fragrance or a blend.
Majestic Pure™ Cosmeceuticals does not have an MLM program but does off a Bounty Program where you can earn up to $100,000 by creating videos, beauty tutorials, posts, tweets, and more talking about their products.
Post your content on social media or blogs. Contact magazines to get your content featured. DM (direct message) influencers and celebs to let them know about Majestic Pure.
They also offer wholesale prices if you want to start your own business. Majestic Pure® is a top selling oil on Amazon.com® so you should do well with your own business.
Now Foods (NOW®) is not an MLM company and has no other programs.
NOW® essential oils are as good as oils from MLM companies! Remember that MLM is a marketing strategy and has nothing to do with the quality of the oils.
NOW® has long-standing relationships with essential oil suppliers globally as well as their good standing and sheer order volume that ensures customers get fresh, premium quality oils that they believe are the best in the industry.
With the exception of one of their Jasmine Oil Blends that is clearly labeled as synthetic, all NOW® Solutions essential oils are naturally derived. Pure, natural Jasmine Oil is hard to source and very expensive even at wholesale, which translates to exorbitant retail pricing.
Synthetic Jasmine is much less expensive and its aroma is equivalent to that of pure Jasmine, which is why they offer this option to their customers. They also carry a Pure Jasmine Absolute blended with a carrier oil as a natural alternative.
Plant Guru® offers a distributorship if that interests you.
Those who wish to open a wholesale account with Plant Guru® must provide a W-9 form and tax ID. All wholesale items are quoted FOB (Freight on Board)—from their shipping place to your address—and quotes are only good for 30-days.
They also provide private labeling services for the bottles and shipping boxes. You can now have your own business at home or at a boutique.
Their all-natural products such as essential oils, body butters, waxes, carrier oils, incense, and more make the perfect gift for friends, loved ones, or even yourself.
Radha Beauty is not an MLM business but does offer a Wholesale Program and there is a minimum of $2500 to open your wholesale account. After that, you can place future orders when you want to.
Usually, they have no restrictions on any type of retail sales. For e-commerce, you are limited to your proprietary domain domestically. Also, Amazon is limited as a marketplace worldwide.
There are no restrictions but they do have a few policies that you can read about at their website.
Rocky Mountain Oils™ (RMO) is not an MLM business; however, they do offer 1 point for every $1 purchase at their website. When you create an account, you automatically get 30 points. When you refer a friend, you get another 200 points.
Visit their website for wonderful products you can buy for yourself or give to your family and friends.
Their oils are reasonably priced and they offer other beautiful gifts for the upcoming holidays.
Mountain Rose Herbs®, founded in 1987, and located in beautiful Eugene, Oregon, will offer you a job at their facilities, but do not provide MLM or other business opportunities.
Rosemary Gladstar began a small herbal business to provide supplies for her students at the California School of Herbal Studies.
When she moved to Vermont, the company was split into a retail herb shop and a mail order company. The mail order portion was passed on to Rose Madrone, and Mountain Rose Herbs was born.
In an effort to give their customers the best possible experience, they opened their first brick-and-mortar store in 2016.
Aura Cacia® is a co-op company and offers Associate Membership where you can save 10% on every order placed at their website with an annual rebate of 5% on all of your purchases for a one-time fee of $10.
Once you’ve paid the one-time $10 fee, you’re a lifetime Associate Member.
Click on the link then click on the purple button to start your membership application.
Once you sign up, you’ll receive a 10% discount on all your purchases from all of Frontier® Co-op sites.
You’ll save on Frontier® brands (Frontier® Co-op, Simply Organic®, and Aura Cacia®) and over 10,000 other top-brand natural-lifestyle products. Your discount automatically comes off the price of each item; you simply log in and shop as usual.
Butterfly Express has an Affiliate Program selling their essential oils and other products. You will have to start an account to read all about the program.
The Affiliate Program highlights are: There is no cost to you and you can earn 18% commission on almost all of their products. You can make 10% on supporting products and commissions on each order. You will have marketing tools and high-quality imaging with coupons for your customers to use and save money.
The Wholesale Webpage highlights are: You can have your own webpage and the first 3-months are free. The initial inventory purchase from you is $800.
North American Herb and Spice only makes Oregano and Black Seed essential oils so no further discussion will be given about them here.
Less known MLM companies:
The NYR (Neal’s Yard Remedies) was started at a depot in London, England in 1981 by a teacher, Romy Fraser. In 2017, they were the top organic skincare folks in England, Japan, and Dubai, selling directly in the USA at Amazon.com® to include essential oils. They have a branch office in Massachusetts, USA.
You can become a consultant reading more here. Be part of this ground floor opportunity in the USA backed by more than 35-years of global success. Earn an income while making a difference in the health and well-being of people and our planet. Build a business that fits your schedule. Feel confident sharing a meaningful message and high-quality products with an ethical company.
You can get starter kits for a fee discussed further at the website. The Rosehip Oil is a large 50 mL (1.69-ounces) blue glass bottle size.
This company started as an MLM candle warmer company in 2003. It was purchased by Orville Thompson in 2004 from the cofounders, Colette Gunnell and Kara Egan.
It is located in Meridian, Idaho, and now provides essential oils and diffusers.
You can sign up for training and support and you need to get all the way to the beach (and beyond).
Make the opportunity yours by running your business your way! Start here to learn about fees and compensation plans.
3. Pros and Cons of MLM and Network Marketing
Network marketing and MLM are the same process. With the Internet now overloaded globally, people can become profitable with a doable business for themselves doing MLM with essential oils.
MLM pros and cons indicate a possible profitable business. It takes lots of hard work that most people don’t think about to make money. If you love essential oils and can easily talk with strangers and even those you know, plus endure the rejections that will come, then this just might be the right thing to do for you.
Pros of MLM Selling
- This is a profitable way to reveal to essential oil lovers your passion for the top two companies, Young Living™ and dōTERRA®.
- Many success stories are presented by representatives of essential oils, and when people get behind a product 100%, sales are generated.
- It’s easy to start your own business that will give rise to opportunities. If your day time job hours are being reduced or you have retired, or you simply want to do a money-making job at home if single, or a stay-at-home mom, this could be your chance.
- Your initial investment is not that much and you can earn money immediately.
- You will have more time at home and many of us fantasize about a job at home like I do writing articles.
- Marketing and selling from home, your own boutique or gift shop will give you a wonderful reputation when you are affiliated with well-known and loved companies.
- Create a team and start selling essential oils to your customers to control primary or additional income, commissions, and bonuses through direct sales.
- MLM uses systems that have existed for time selling essential oils and to grow team partners. The MLM method works to make money making you happy.
- Teaching and guiding will provide support to your team when you are a great advisor and counselor.
- This is a win-win position for you, your team, and your customers.
Cons of MLM Selling
- You might not get rich doing MLM and most people don’t make enough even as a part-time job.
- The reason for this is that there are no limitations with many of the MLM companies that causes competition to flood the marketplace to limit your profits.
- When you want to be a representative, then pay the fee if there is one, and continue forward with your dream.
- MLM sales are best in person with the potential buyer, similar to Avon® door-to-door sales.
- That’s not hard to do if you have your own shop or know many people.
- You can also start your own Internet site for sales and create fantastic blogs.
- Know that less than 6% of MLM sales happen on the Internet with 80% of sales occurring in person.
- It takes time to grow your business and as independent rep.
- The rejection rate is high in person with these people telling you no. The rate is 1% meaning 99 people will not be interested out of 100 people. If the negatives cause you stress, MLM might not be for you unless you’re spunky and assertive.
- Beware of MLM scams. This is where you invest and get nothing in return. The essential oils companies are reputable with no scams.
MLM companies selling essential oils do not lose quality with their oils! They exist because of their quality and would not “water down” a great product to deceive buyers. This graphic representation shows you how an MLM business makes money as opposed to non-MLM companies.
You can see at once that the MLM has more dollar signs. This tells you that MLMs are great opportunities for those wanting to start their own small business. Many more people must be paid from each sale that is made; however, no middle man or anyone else is getting a cut of the sale. With each person in the pyramid rows being paid, this is the reason the prices are a bit higher than competitors not using MLM.
There is a truckload of Affiliate Programs for essential oils on the Internet to choose from.
Watch this video to avoid pyramid schemes. It is 18-minutes long and well worth watching because it’s all about your money.
It will give you ideas to think about for your MLM business.
How to Spot a Pyramid Scheme: Multi-Level Marketing video.
How to Sell Anything to Anyone Anytime video.
If you are interested in a particular essential oil company not discussed above, just type the brand name into your browser to see what they have to offer.
Remember that MLMs and non-MLMs such as Associate Programs are a good source of income when you have the time and motivation to get it off the ground.
Leave a question or comment in the box below for a reply to each one of you.