Transcript Powerpoint: doTERRA Business

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
Standard Growth Curve
Revenue
Maturity
Plateau
Growth
Period
Valley of Death
Time
GROWTH
Revenue
Standard Growth Curve
Time
GROWTH
Monthly Revenue
$1,000,000
$50,000
November 2008
November 2009
GROWTH
Monthly Revenue
2,000%
INCREASE
$1,000,000
$50,000
November 2008
November 2009
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 THREE
Individual Requirements
• Must Have 150
Product Value (PV)
on a monthly order.
• Remember the Rule
of Thumb: Roughly
$150
POWER OF THREE
Level 1
150 PV Each
=
$50 Monthly
Note: 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 2
150 PV Each
=
$250 Monthly
POWER OF THREE
Level 3
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
Level
Level
Level
Level
Level
Level
Level
1:
2:
3:
4:
5:
6:
7:
$50
$250
$1,500
$1,500
$1,500
$1,500
$1,500
Unilevel
$9
$50
$252
$860
$3,047
$9,608
$32,571
Total/Mo
$59
$300 (2xInvs)
$1,752
$2,360
$4,547
$11,108
$34,071
With 3 Legs
•
•
•
•
•
•
•
1
2
3
4
5
6
7
Level - $59
Levels - $300
Levels - $1,752
Levels - $2,360
Levels - $4,547
Levels - $11,108
Levels - $34,071
With 4 Legs
•
•
•
•
•
•
•
$62
$334
$2,064
$3,984
$13,200
$50,064
$222,096
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???