Powerpoint: doTERRA Business

advertisement

dōTERRA Business Opportunity

• Products

Why dōTERRA?

• 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

Growth

Period

Valley of Death

Time

Maturity

Plateau

GROWTH

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 .

Level 2

POWER OF THREE

150 PV Each

=

$250 Monthly

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

Level 1:

Level 2:

Level 3:

Level 4:

Level 5:

Level 6:

Level 7:

Compensation

(No Fast Start Bonuses Incld)

Structure Unilevel Total/Mo

$50

$250

$1,500

$1,500

$1,500

$1,500

$1,500

$9

$50

$252

$860

$3,047

$9,608

$32,571

$59

$300

(2xInvs)

$1,752

$2,360

$4,547

$11,108

$34,071

With 3 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

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

• Products

Why dōTERRA?

• Business Structure

• Business Cycle Stage (Timing is Everything)

• Retention Rates

• Risk vs. Reward Factor

Questions???

Download