Have you heard all the great things that essential oils can do for you? These oils have been around for hundreds of years. They come from plants so they are good for you. Oh yeah, you can make money and a living from selling these oils. If you have heard any of these things you may be dealing with a friend or family member who has joined Young Living. Now you are asking yourself “What is the Young Living Essential Oils Scam?
This is a great question and one that I’ll answer in this Young Living review. My focus will be on the business opportunity and not on the pros or cons of the Young Living products.
Young Living History
Donald Gary Young founded Young Living in 1993. He worked as the CEO of the company until 2015. At that time his wife and co-founder took over as CEO. Also in 2015, Young Living went over $1 billion in sales. The company sells it’s products internationally. Since it’s creation over 20 years ago, Young Living has become one of the larger multi-marketing companies in the world.
Young Living Essential Oils
The main products of Young Living are its essential oils. I personally don’t know much about the essential oil industry. According to Wikipedia, essential oils have been around for hundreds of years. The oils are withdrawn from a variety of plants. The oil for each different plant has it’s own characteristics. These can bring mental, physical and spiritual benefits to the user. If you get involved with Young Living, you’ll want to do some study of essential oils so that you understand what you will be selling.
According to the Young Living website, they provide a high quality product. They provide descriptions on their website on how they extract their oils. Many of the reviews that I checked out agreed that their products are of a high quality. There was a lawsuit from a competitor company claiming that Young Living products were not truly organic as claimed.
Young Living Compensation Plan
If you are reading this review, you are most likely researching the Young Living business opportunity. The first thing to understand is that Young Living is a multi-level marketing (MLM) company. What that means, is that you earn money from selling the product and from the sales of the people that you recruit. Like many MLM companies, the compensation plan can be a bit complicated. Below is a picture and a video that explains the Young Living Compensation plan:
What Is The Young Living Essential Oils Scam?
Straight answer is that Young Living is not a scam. Then why would anyone consider it a scam. As a MLM company, Young Living is setup so the people at the top make a lot of money and those at the bottom lose money. This is due to the pyramid structure. The compensation plan above shows that the more people you recruit the more money you will earn. You get commissions on all of their sales plus bonuses for different levels of the structure.
What does this mean for your income potential? Unlimited earning potential if you are at the top. You start out at the bottom and the chances of getting to the top is very small. Whenever getting involved with a MLM, ask for their income disclosure statement so you can see what others are earning. Young living does have an income disclosure statement available. Check it out here:
From the above statement, you’ll see that 93.1% of the members only average $12 per year. Also note that when you add up the first four ranks, you get 99.6%(93.1 + 4.4 + 1.5 + 0.6) of the Young Living membership. The high average of the 4 ranks is $6,492 per year. What this chart tells you is that only 0.4% of it’s membership has achieved a rank greater than Executive (4th level). Those that are making real money in Young Living are in Gold rank (6th level) or higher.
Young Living has a good product that has become popular over the last couple of decades. Some say the product is overpriced. Young Living is an MLM which is a poor choice for a business opportunity. The commission at the first level is low at 8%. The compensation plan is a little complicated. As can be seen by the income disclosure statement, the vast majority of their members don’t earn a reasonable income.
If you must join a MLM company, Young Living is one of your better choices but I would recommend against joining any MLM. There are much better business opportunities that you can join with low cost of entry.
Let’s say you want to sell essential oils as your business. You could create a website where you discuss essential oil and provide reviews about different oils. Of course, you’ll sell essential oils on your website. Your question may be where do you find products that you can sell on your website? Most major brands have affiliate programs. This is where you sell their product and you receive a commission. This can even be done with products on Amazon.