dōTERRA Business Opportunity

Why dōTERRA?

• Products

• Business Model

• Business Cycle Stage (Timing is Everything)

• Retention Rates

• Risk vs. Reward Factor

Products• Not Just an Oil Company

– Weight Loss Products

– Home Care Products

– Skin Care Product

– Nutritional Products

– More to come

Business Model

• Leadership

• Modeled after NuSkin

– Comparisons of NuSkin startup and DoTerra

– Just Celebrated 25 years• Quality Product Line

LEADERSHIP

David Stirling

Gregory Cook

Dr. David Hill, D.C.

Robert Young

Emily Wright

Business Cycle Stage

• Introduction Stage

• Growth Stage

• Maturity Stage

• Decline Stage

GROWTH

Time

Reven

ue

Valley of Death

Growth Period

Maturity Plateau

Standard Growth Curve

GROWTH

Time

Reven

ue

Standard Growth Curve

GROWTH

November 2008 November 2009

$50,000

$1,000,00

0

Monthly Revenue

GROWTH

November 2008 November 2009

$50,000

$1,000,00

0

Monthly Revenue

2,000% INCREASE

Retention Rates

• How many consumers keep coming back for more?

• If you got a good product clients will keep coming back.

Average Retention Rate

• Network Marketing Companies

18%

Average Retention Rate

•dōTERRA

65%

Important Definitions• Independent Products Consultant (IPC):

– Someone who has chosen to Market DoTerra Products

• Up-Line:– Those IPC’s that are above you on your team. They are

there to train you and help you build your team.

• Down-Line:– Those IPC’s that join your team after you and placed

below you

• Monthly Loyalty Rewards Program (LRP):– Automatic Monthly order of DoTerra Products

• The longer you maintain this the more free product you can earn

Important Definitions (cont)

• Product Value (PV): – DoTerra Products are assigned a “Point Value”

• This Point Value is NOT always consistent with Price of the Product• Example: Katee maintains a 150 PV every month. This does not

necessarily mean she spent $150. It means that the “points” of the products she buys equal 150. – She may have spent more or less then $150 depending on the

products she bought.– However, a good rule of thumb is that 150 PV is roughly $150/mo.

• Overall Value (OV):– The sum of your and your down-line team members PV.

Important Definitions (Cont)

• Sponsor:– IPC’s direct upline. Important for structuring

team.

• Enroller:– IPC who introduced the new IPC to doTERRA.

• Receives Fast Starts • Important for Rank Advancement

How Do I Get Paid?

• Retail Sales

• Structure Bonus

• Fast Start Bonuses

• Unilevel Commissions

• Leadership Pools

Retail Sales

• Sell products to clients at retail price

– When you sign up to be a IPC then you can buy DoTerra products at wholesale prices (25% off retail costs)

– Example: You buy $75 of product. You turn around and sell it at retail for $100 and you earn a $25 profit.

Structure Bonus

• DoTerra provides bonuses for structuring your team correctly.– 3 Levels

• Level 1: $50/mo. • Level 2: $250/mo.• Level 3: $1,500/mo.

• These bonuses never stop.

• The “Power of Three” helps you to properly structure your team.

POWER OF THREEIndividual Requirements

• Must Have 150 Product Value (PV) on a monthly order.

• Remember the Rule of Thumb: Roughly $150

150 PV Each

=

$50 MonthlyNote: A combined value of 600 overall team value (OV) points must be obtained before bonus is paid out. This is why it is suggested that everyone be on 150 PV. 150 X 4=600.

POWER OF THREE

Level 1

150 PV Each

=

$250 Monthly

Level 2

POWER OF THREE

Level 3

POWER OF THREE

150 PV Each

=

$1,500 Monthly

Fast Start Bonuses• Designed to provide you immediate rewards for

enrolling new IPC’s into your structure.

• Lasts for the first 60 days of New IPC’s enrollment

• Goes 3 levels deep– Level 1: 20%. New IPC purchases $150…you get

$30– Level 2: 10%. New IPC purchases $150…you get

$15– Level 3: 5%. New IPC purchases $150…you get

$7.50

Unilevel Commissions

• DoTerra Provides unilevel bonuses up to 7% down to seven levels on your structure.

• Percentages increase with each level.

• See Handout

Compensation(No Fast Start Bonuses Incld)

Structure Unilevel Total/Mo

Level 1: $50 $9 $59Level 2: $250 $50 $300 (2xInvs)

Level 3: $1,500 $252 $1,752Level 4: $1,500 $860 $2,360Level 5: $1,500 $3,047 $4,547Level 6: $1,500 $9,608 $11,108Level 7: $1,500 $32,571 $34,071

With 4 Legs

• 1 Level - $59• 2 Levels - $300• 3 Levels - $1,752• 4 Levels - $2,360• 5 Levels - $4,547• 6 Levels - $11,108• 7 Levels - $34,071

• $62• $334• $2,064• $3,984• $13,200• $50,064• $222,096

With 3 Legs

Leadership Pools

• dōTERRA wants to reward their leaders

• 6% of company revenue is shared among leaders according their obtained rank.

• Leadership Pool commissions are paid when you reach the Silver Rank.

Leadership Pool

What Now?

How to Get Started

Risk vs. Reward Factor

• What’s the worst case scenario?

– Whenever I go into something I ask myself this question.

– If the answer is something that puts me or my family in harms way then I walk away.

Risk vs. Reward Factor cont.

• New Business Startup Costs– 2005 Average: $70,000 (Consumer Report)

• Survival Rate– 46% chance to get to 5 years (CNN Money)

• Unless your Amish…Then it jumps to 96%!!!

• Worst Case Scenario?– I’m out $70,000. Big chunk of change and it limits

me for future opportunities.

Risk vs. Reward Factor Cont.• dōTERRA Startup Costs (Kyle and Katee’s

Plan)– Commit 2 years

• $150 X 24 = $3,600 Startup Costs

• dōTERRA Survival Rates– 65%. Based solely off of Retention Rates.

• If after 2 years we’re not making a profit…it’s time to try something else.

– We were breaking even after 6 weeks and earning money at 10 weeks. And we didn’t know anything about the business side

• Worst Case Scenario?– We’re out $3,600 but have $3,600 worth of products.

Does not limit any future opportunities.

Fast Track Planner

• A simple 3 Step planner to help you achieve success– Learn: How/Where to learn about DoTerra– Build: Simple steps on how to build a team– Lead: How to effectively lead your team

• Will greatly expedite your success when followed

• Easy way to track your current position and what you still need to accomplish

Why dōTERRA?

• Products

• Business Structure

• Business Cycle Stage (Timing is Everything)

• Retention Rates

• Risk vs. Reward Factor

Questions???