37
dōTERRA Business Opportunity
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
Reve
nue
Valley of Death
Growth Period
Maturity Plateau
Standard Growth Curve
GROWTH
Time
Reve
nue
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/MoLevel 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???
