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The doTERRA Compensation Plan:
Terms You Need to Know

Before we take a closer look at each component of doTERRA's compensation plan, there are a few terms you need to be familiar with. Read through these now and then refer back to them as needed as you go through the next few articles explaining doTERRA's compensation plan. 

The terms are:

• Wellness advocate
• Retail customer
• Wholesale customer
• Levels
• Enroller
• Sponsor
• Personal volume (PV)
• Organizational volume (OV)
• Company volume
• Loyalty rewards, and
• Ranks

1. Wellness Advocate: doTERRA calls their distributors "Wellness Advocates" and that is the term that I will use throughout this website. To become a Wellness Advocate you can either purchase an enrollment kit or pay a $35 membership fee and purchase the product/s of your choice. (Click on this link to learn how to get started with doTERRA.)

Wellness Advocates receive their own company website and are eligible to receive payment from all aspects of doTERRA's compensation plan. 

To see an example of a wellness advocate's website (mine in this case!) click on this link. 

2. Retail Customers:  Essential oils and other products sold by doTERRA can be purchased directly through person-to-person sales or off the website you receive when you become a wellness advocate.

Customers can buy these items for retail price (making them retail customers) or they can elect to receive a 25% discount by signing up to become a wholesale customer.  

3. Wholesale Customers:  For an annual $35 fee, a retail customer can become a wholesale customer. Wholesale customers can purchase doTERRA products for the wholesale price which is 25% below retail. 

Both retail and wholesale prices are indicated on the product page for the item in question. In the illustration above, notice that the retail price is crossed out indicating that the person who signed in is a wholesale customer, and so would pay the wholesale price.) 

Wholesale customers can elect to become Wellness Advocates at any point without paying an additional fee. 

4. Levels: doTERRA is a multi-level-marketing (MLM) company. (If that bothers you please read my article, "Is MLM good or bad?") This means that, in their main compensation plan, Wellness Advocates get paid on several different "levels". doTERRA refers to these payments as “uni-level bonuses".

As a Wellness Advocate your "first level" consists of those Wellness Advocates that are placed directly under you, your "second level" consists of the Wellness Advocates positioned under the Wellness Advocates on your first level and so on. doTERRA pays commissions or bonuses on 7 levels.

5. Enroller: An enroller is the person who actually signs up or enrolls a new Wellness Advocate.

6. Sponsor: A sponsor is the person under which a new Wellness Advocate is placed. You can place Wellness Advocates that you personally enroll under other people in your organization in order to maximize your income potential. This will become clearer when we discuss the Power-of-3 and Unilevel bonus plans. 

7. Personal Volume or PV: Each commissionable product sold by doTERRA is assigned a point value. Your personal volume or PV consists of the combined points of all products purchased by you and your retail customers each month.

The PV of most products is equal to their wholesale price. However, not all products qualify for a PV. 

The PV is clearly indicated on doTERRA's website on the product page for each item. (In the illustration above, the wholesale price of Copaiba softgels is $34 but the PV is 32.)

It is important to distinguish between the purchase price of an item and its PV value because qualifications and bonuses are based on PV.

8. Organizational Volume or OV: Organizational volume is the combined PV of you and all the Wellness Advocates, retail customers and wholesale customers in your organization.

9. Company Volume: Company Volume is the total amount of personal volume sold to all Wellness Advocates, wholesale customers, and retail customers by doTERRA.

10. Loyalty Rewards: Loyalty rewards is an automated program that pays you back when you purchase doTERRA products each month.

When you first join the loyalty rewards program or LRP you will receive 10% of your PV plus your shipping costs in product points. Each point is redeemable for $1.00 worth of product.

As long as you continue purchase at least 50 PV each month the percentage that is reimbursed will continue to rise until you reach 30%.

To maintain whatever percentage you have acquired you only need to purchase 1 PV each month.

Because you can change your loyalty rewards order from month to month, and because you continue to accumulate product points for your purchases (you have a full year to redeem these) this is also a good way to try out new essential oils and essential oil products.

11. Ranks: When you look at doTERRA's main compensation or "unilevel bonus" plan you will notice that, to receive bonuses on the various levels you need to have achieved a certain rank. 

This is a somewhat complex subject that I will cover in detail on my page doTerra ranks and income. For now, just be aware that you achieve ranks by properly structuring and building your business. 

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Next in the Series on Making Money with doTERRA...

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