Reasons to Avoid MLM Essential Oil Brands

Multi-Level Marketing (MLM), also known as network marketing, is a business strategy that MLM companies use to market and sell their products via a non-salaried workforce. The salespeople rely on a pyramid-shaped or binary compensation commission system, meaning their income comes from commissions made from direct selling, and commissions made by their “downline” distributors, whom are the people they recruit to join the organization.

Thieves, a legit MLM product by Young Living

Many MLM organizations utilize the pyramid scheme. A pyramid scheme is a business model that uses promoters or recruiters to recruit individuals, commonly via social media. They will advertise joining the organization as a quick and easy way to make money. Individuals who are interested to join will pay an enrollment fee. In exchange, they are promised a commission from every additional member they recruit.

As the organization’s revenue heavily relies on sales and recruitment, the pyramid scheme can be potentially lucrative… if you’re on the top of the pyramid. Either you will have to work in an MLM organization long enough or become the head of the organization. Those on top rely on the strong incentive of those on the bottom to make ends meet, leading to the continuation of recruiting and selling, funnelling money to the top.

Sadly, research has shown that a high 99% of individuals who join MLM companies don’t earn money and actually lose even more in return. The 1% who actually makes any profit would be none other than those on the top of the pyramid. For this reason, a pyramid scheme is often misinterpreted as a scam and thought illegal. If you’re thinking of joining an MLM essential oil brand (such as doTERRA & Young Living), thread with caution and invest in your research.

When the coronavirus hit globally in 2020, many businesses declined and collapsed but MLM organizations thrived. Essential oils were selling out fast with the claims of strengthening the body’s natural defense system and even curing the virus. While it may support one’s physical health when used properly, it is not guaranteed 100% protection. You still need to practice social distancing, use face masks and sanitize as often as possible.

Before the pandemic, there have been several cases where many MLM salespeople (not all) would make exaggerated and potentially harmful claims for a profit such as asking consumers to infuse their drinking water with essential oil and for a “natural detox” and other baseless claims not backed up by science. With this boom in MLM businesses during the pandemic, these claims have become more ridiculous and dangerous.

Moreover, in spite of what is being marketed, the higher priced essential oils from MLM brands are not necessarily better than the lower priced non MLM brands. There are many non MLM brands that have made a name for themselves without using the problematic marketing strategy such as Plant Therapy, Edens Garden, Rocky Mountain Oils, Revive and more.

This is not to say that the essential oils from MLM brands aren’t good or high quality, there are many positive consumer reviews despite the controversies. As mentioned earlier, invest in your research. While essential oils can improve the quality of life when they are being used properly – with precaution and in moderation, they are not a “cure-all” as some MLM salespeople claim them to be.

A good place to start your research on the real benefits of essential oils and how to use them is on our website itself.

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