Multi-level marketing (‘MLM’) has long been associated with the term ‘pyramid scheme’, and rightly so – some actually were!

If you’re considering doTERRA or any other Multi-level marketing company for that matter, it’s crucial that you understand the difference between a ‘Pyramid Scheme’ and a successful Multi-level marketing business model.

The Problem


Wikipedia defines ‘Pyramid Scheme’ as:

A business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services…..Pyramid schemes are unsustainable and often illegal

In short: Pyramid Schemes have no actual product. Most MLM’s companies today offer a great opportunity to introduce a stream of passive income, by selling a high quality product through word of mouth. Of course, which company you choose and what their product is, matter.

Multi-level marketing can be an extremely profitable and sustainable business model, but in order for that to happen, you need to have a few key foundations.

Why Product Matters

doTERRA has a highly consumable product. Consumable products (i.e. products people love & continue to use in their life on a regular basis), are the key ingredient to residual income.

Think about it – if a company has an amazing product with a lifetime guarantee, why would somebody need another one, ever? You would have to continue to sell that same amazing product to more and more people. So an unmatched quality, consumable product is where it’s at.

The industry average for retention is around 15%. So think about this; doTERRA’s retention rate is over 70%. That means 70% of customers continue to order, and those orders count towards your monthly income. Amazing.

A proven success rate

There are definitely other great companies out there, run by great people. One of the things I love about doTERRA’s owners is that there are seven of them, not just one person calling the shots.

And the combined experience in network marketing, in essential oils, and in business that this incredible group of owners have between them, is unmatched.

Also important; they have a strong global mission. They strive to have a massive impact on poverty through their co-impact sourcing model and their healing hands foundation.

This vision is a large part of why the company attracted over 30,000 people to their global convention this year, and has millions of Wellness Advocates worldwide.

But do you need to recruit other people to sell underneath you? Like, in a pyramid?

Well, yes. And actually, that’s the best part.

In most entrepreneurial businesses, you invest your time and energy for years without making much money.

And, when you finally get to a point where you’re breaking even, you still have to generate that same volume over and over again, month after month, year after year, in order to maintain it.

In a good Multi-level marketing company, with the right product and consistent effort on your part, it can grow and multiply much faster, as other people on your team grow their own teams.

Once you recruit a few key business partners to work with you, and they each recruit a few of their own, you’re off to the races.

The beautiful thing about it, is that you get to change people’s lives not only with their health, but also when it comes to their finances.

doterra_essential_oil_stackI was so blessed to see one of my key leaders and a friend of mine hit the rank of Gold and be able to quit her full time job. She’s now at Diamond rank and her team ‘Flourish’, is well, flourishing.

Now, her and her husband and four boys can spend time serving others, and living a life with more freedom than they ever would have had the opportunity to do before.

You can read more about doTERRA’s compensation plan, and take a peek at some of the average income earnings.

If you ask me, pyramids can be pretty beautiful.