dōterra business opportunity
DESCRIPTION
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. - PowerPoint PPT PresentationTRANSCRIPT
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???