It’s essential to understand that even though doTERRA has had some criticisms, it operates under a multi-level marketing (MLM) business model, which is entirely legal. MLMs rely on a network of independent distributors who earn commissions based on product sales and the sales of those they recruit into the business. However, some MLMs have been accused of being pyramid schemes, which is illegal, because they prioritize recruiting new members over selling products.
To determine a legitimate MLM from an illegal pyramid scheme, the Federal Trade Commission (FTC) provides guidance. According to the FTC, a legitimate MLM should primarily focus on selling products to the general public, rather than just recruiting new members. Additionally, a legitimate MLM should compensate its members based on product sales, rather than solely based on recruitment.
It is crucial for individuals to conduct their own research and make an informed decision about participating in an MLM, such as doTERRA.
As with most MLMs, doTERRA has an aggressive approach to recruiting, with bonuses and higher commissions only being paid to those who build a large downline. However, it’s worth noting that doTERRA doesn’t pay its members directly for recruiting people. Instead, they offer bonuses for building a structure and enrolling others into the opportunity. This is one way doTERRA avoids being classified as a pyramid scheme by the FTC.
While it’s possible to earn money selling doTERRA products, retail sales alone will not get you to the higher commission ranks or earn you any bonuses.