I love DoTerra and Scentsy But…
The fact is that they are both MLMs, multi level marketing. To succeed with them you have to sell a certain amount and get people to work under you. They way the company succeeds is that they require you to buy each month (over $100 with Doterra) or sell a certain amount (Scentsy now) ever few months or you are no longer one of their distributors. So what is the issue if you love the product?
The PUSH for one. Constantly feeling like your failing because of all the pushing to sell and gain people in your down line. Just being a buyer is not looked nicely upon. There is this dazzling pull to get you to sell and you think you can, like so many others, and then find out you don’t like pushing others to buy or feeling so obligated to the company.
To summarize though the biggest point, the thing that finally helped me give up all MLMs is this:
According to a report submitted to the Federal Trade Commission, 99% of MLM distributors lose money, making “even gambling look like a safe bet in comparison.”
I don’t gamble so why am I buying into companies that work this way and that fail so many people. I highly doubt 99% of people are failing the companies. I think we are set up to fail. Some people even think of MLMs as a scam and with 99% of people losing money on them, I can’t argue that fact.
So for me, from here out while I might purchase some items from MLM companies, I will not attempt to sell for them again and never recruit for them knowing the failure rate.
And this brings me to reason 88 Why We homeschool!
Kimberly,
I’m truly sorry that you had a poor experience with doTERRA. I along with my wife and five kids have been using their products for 16 months now. The statement you made is correct that a person needs to maintain at least $100+ in products each month, if they want to receive a commission check from the company when they get someone else to purchase products. If you want to take advantage of the additional savings using the Lotalty Rewards Program (LRP), you will need to maintain a minimum order of $50+ in monthly products. Otherwise, you can order what you will at anytime within your monthly budget. I would recommend that you speak with your upline support as they should have instructed you on everything. If not, I would be glad to assist you.
Thank you for your kind offer to help. My upline as a wonderful help actually and I very much understand how the company works. Again, this isn’t a reflection on the product (Though the studies do bring up important questions…) In the end the fact is I do not wish to be a part of any MLM given the known information about them.
For me it’s not a gamble. While I spend $100 on products each month, I actually use them. I make my own toothpaste, laundry detergent, deodorant, body butter, bath salts, skin care, etc., with these oils. I also use Balance everyday in addition to my medication. I use OnGuard everyday to boost my immune system. I use Serenity every night to sleep like a baby. I use the supplements daily. I could easily spend a TON more each month, because I want to, not because they require it in order to make a paycheck. 😉
So, by earning lots of free oils, with my rewards, and by getting my 25% discount, and 100% of my shipping back in free product, I am actually saving myself a ton of money. 🙂 I don’t know what I’d do without doTERRA if I hadn’t found it a few months ago. So happy. 🙂
The study doesn’t go into the why people fail. Do they have a good Network? Do they have good sales skills? Are they putting in the effort? Doing research? Are they bowing out in their first few months? That all has an impact on your sales. A lot of the time, if you are in network marketing but you have a small network or you have large network but they may not support your passions, and you don’t truly believe in the product you are selling and you signed up on a whim and didn’t do your research then invested a ton of money on business materials and on hand stock then bailed without learning any sales tactics ofc ofc ofc there is going to be a large fail ratio. Can MLMs be doing more to support their consultants? I think as network marketing is becoming the side hustle of the future that they’re learning how failed consultants impact how people see their products. If your Nana lost her medical savings to investing in Scentsy warmers to hold as stock it is likely the family will look at the company unfavorably even if Grandma didnt set Realistic Goals. Plus, are people signing up for the discount for their own consumption of the products? To break even? Or maybe as a little extra cash? Those people are getting something in exchange for sharing and depending on which MLM getting the product rewards to show for it. Are some people in it for social reasons instead of money? The study needs to be more comprehensive than this. I know people who make good side money with their mlm businesses. I watched some of them do it since our first kids were born and I did so skeptically and now these people are earning bank and incentives. Ive seen people sell crazy amounts then burn out or go from nothing to crazy sales built over time. Is their sales technique focused on authenticity and relationship and trust building or are they trying to hard sell people? How many bounce rates do you get on your site versus interactions? You gotta do your research and if you are truly passionate about it I think people do well. With an MLM it isn’t always about a big phat paycheck. So if they are measuring on monetary values alone and not factoring in products earned and used or other situations how do you qualify it as a failure? I think it is the old MLM schemes of the past that still stain quality product based sales today. Two people have actually outsold and earned promotions over my sponsor. It isnt a perfect triangle. It is wibbly wobbly ya know? That being said, don’t pick up ot champion a company you’re not passionate about. Period. You will ways feel like you’re losing out then.