Is Young Living Oils a scam or not? This is another MLM company in the health and wellness niche, and many have been asking if it’s legit when it comes to their business opportunity. I decided to look into this one for myself to see whether what they promise is really true.
Read on to find out more about the Young Living Essential Oils MLM scheme….
Company Name: Young Living Essential Oils
Founders: Donald Gary Young & Mary Young
Price To Join: $45 To Start
My Rating: 6/10
~ Young Living Oils Review ~
I can’t believe just how many businesses are using the multi level marketing model of distribution these days. Network marketing companies seem almost as commonplace as regular retail outlets.
People were talking about and asking questions about Young Living, its products and its business opportunity. Because of the chatter, I wanted to look into it for myself and write a review on what I uncovered.
When it comes to make money schemes, or training programs that say they can show people how to make money online, I write a lot of reviews on these. The very reason I do this is so we all have an idea of what’s good and what’s not.
The internet is awesome in many ways when it comes to opportunities to make money, especially from home, but it’s also prone to online money making scams as well. When we have independent product reviews to read, it helps us all make the right choices.
I’m really glad you’re here and reading my review. Chances are you’ll never get scammed because you do your research before you jump on board with anything. That’s wise.
Let’s now see how Young Living fares and whether it’s worth your attention.
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What Is Young Living Essential Oils?
Young living is a multi level marketing company that was started back in 1993 by Donald Gary Young and Mary Young. The company operates in the super saturated health and wellness niche, but has a firm focus on its range of essential oils, along with some health products and skincare products.
The company started out with just the essential oils, hence that being their major focus and sales point.
These oils appear to be very popular in social media circles, particularly with women promoting and selling them to their contacts and in social groups.
Young Living is based in Utah (many MLM companies are), but they have offices and distributorships all around the globe.
As of this writing there must literally be hundreds of network marketing companies running businesses in the health, wellness and fitness niche. It’s highly competitive.
I much prefer the simplicity of affiliate marketing over network marketing, where there’s no buying, selling or recruiting. To get started is easy when you follow the Wealthy Affiliate training. You can join for FREE!
What Are Essential Oils?
My review is more focused on the business side of Young Living, but I’ll cover their product range here briefly, as well as offer an explanation to the benefits of essential oils.
Essential oils are those naturally found in plants. They are not some sort of petroleum based oil. The reason these oils are found in certain plants, is the plants use the oil, or the scent from the oil, as protection against insects and other predators.
Even a fully dehydrated plant can often be brought back to life with watering because of the essential oils keeping it alive.
So how does any of this benefit humans?
Although it can’t be said to be scientifically proven, essential oils are thought to offer a whole range of health and wellness benefits for people. Different kinds of oils are used for different purposes.
Some can be applied to cuts, used for reducing the symptoms of the flu, and then some others can effectively be used as household cleaners.
The Young Living company only produces and supplies essential oils that are 100% pure and natural.
Young Living Products
Let’s now take a look at the Young Living product range in brief.
Lately their product catalogue has definitely expanded. Here are the categories now available:
- Essential Oils
- At Home
- Healthy & Fit
- Personal Care
- Diffusors & Accessories
- Savvy Minerals
- YL Seedlings
Although the product range has recently expanded, essential oils are still featured in most of the categories above.
There are single essential oils, blends of more than one oil, dietary and supplement oils, oil roll ons, massage oils and collections.
Many of these oils are used in diffusors, where the aroma permeates the air with whatever fragrance you choose. Each oil is supposed to have different healing and wellness properties, and you can find out more information of their website.
As an example though, lavender oil promotes a sense of calm and serenity, ideal for mind cleansing and meditation. It can also help reduce feelings of depression.
Healthy & Fit
This category offers up a range of health and wellness nutritional drinks and dietary health supplements. Some of the products can even be used in cooking.
There are accessories as well, such as a handy shaker for mixing those health shakes.
This is where the beauty products and skincare come into the range.
There is lip gloss, eye shadow, mascara, creams, blushes, lipsticks and accessories.
Young Living claim their beauty products are made from the finest, all-natural ingredients for the very best results, producing healthy skin and make up perfection.
The Products Are Pricey
MLM companies will be quick to tell people that their prices are generally so much higher than retailers because their products are far superior.
I mean, they have to say something good to justify the high prices. Right?
If they simply told the truth, that would fall really flat.
Here’s the real reason why MLM products are almost always sky high compared to most other comparative products on the market.
It’s because of the structure of their compensation plans. You build downlines when you sell in network marketing, and everyone earns a small cut of the sale. Therefore, in order for the company to be able to pay out all these commissions and still make a profit, they have to set their prices really high.
That’s just the honest truth of it, but that doesn’t sound very sexy in a sales pitch.
As an example of just how much each bottle of Young Living Essential Oils costs, the average price is about US $30 for a 15ml bottle. Now that is really up there.
The Young Living Oils Compensation Plan
There are always 2 main ways you can earn with MLM, and they are:
- Direct sales/retail sales
- Build a team through recruitment
One thing that’s a little different with the way Young Living manages sales through their distributors, is they don’t get you to buy a bunch of oils and so on, then have you running around the neighbourhood trying to peddle them to family, friends and anyone you can corner.
Instead, they’ve set it up so you simply get people to create customer accounts on the website and people simply buy products online. You still get credit for the sale because you’ll refer them with your own unique identifying link.
Commissions are in the range of 24% of the retail price on average. You’ll also earn the same commission on future purchases from this customer, as their details will be recorded as being your direct referral.
While this is a better way for people to promote and sell Young Living’s product range, the real money still lies in recruitment, and creating a sales team by establishing downlines.
Young Living works on the unilevel model, where you can build multiple downlines as wide as you like and you stand to earn small commissions on the sales all of your referrals and that their referrals make, down to level 5.
The team effort will also help you achieve bonuses along the way, as well as rise up those company ranks so you are in a position to earn more.
Some of the bonuses include:
- Fast Start Bonus
- Starter Kit Bonus
- Unilevel Bonus
- Rising Star Team Bonus Pool
- And more…
When you first join the business you are simply called a “member”, but there are a number of ranks you can aspire to. Let’s list them:
- Senior Star
- Crown Diamond
- Royal Crown Diamond
You can download the official Young Living compensation plan PDF here.
For a better explanation of how their compensation plan works, watch the video below.
Young Living Income Disclosure Statement
The latest income disclosure statement for this company that’s available isn’t super recent, as it’s for the year 2016. However, this gives us some idea of what people at different rank levels are earning.
This is where things get quite shocking.
In 2016, a member (then called a distributor), only managed to earn, on average, $1 per month.
Yep, that’s just $1. And that’s not profit. There are expenses involved, such as buying starter kits and so on.
The base level also made up a massive 94% of the entire company’s membership, meaning only 6% of people had managed to rise above the lowest rank.
These are not very encouraging figures at all.
I just thought I’d share that with you.
The MLM Business Opportunity
On my website I’ve never tried to downplay the fact that I really don’t like MLM all that much, because of their compensation plans and the way these companies operate their businesses.
There are a few reasons why I don’t love this business model.
So many businesses and companies are choosing the network marketing model for very good reasons. It gives them so many advantages over going traditional retail routes, but for every advantage the company acquires, that’s a benefit stripped away from its workforce.
That being, the distributors.
When you run a regular retail business, so much of your expense account is consumed by paying wages to your workers. When you set up a MLM scheme, you are basically getting a free workforce, where you don’t pay anyone anything until actual sales have been made.
None of the distributors receive wages or a retainer. They are working as free sales reps, hoping to earn bonuses and commissions down the track somewhere.
Young Living (and other companies like it) really save bundles of cash by not having to pay its workers an hourly rate or salary. On top of that, it’s the distributors who are doing most of the work, buying products, selling products, advertising and promoting the Young Living business.
The distributors also grow the company because of the constant need to recruit to get anywhere in MLM. This is all done free of charge.
For businesses like Young Living, this is a totally awesome deal, and a very smart one. However, on the flipside the deal is not nearly as sweet for the distributors, as they’re the ones doing the majority of the work and getting paid the least.
MLM businesses are also experts at selling the dream when it comes to creating a lifestyle of time, money and abundance. It’s constantly pushed at their meet ups that you’ll have this kind of life when you have your very own business with them.
While this is a nice goal, the problem is, most people who get involved in MLM will never get close to achieving these ideals. Plus, you never ever own your own business when you jump on board a network marketing scheme. The company always owns everything and you can’t sell your MLM distributorship that you’ve built up.
More often than not too, the distributors have to buy products monthly, essentially making the workforce also the main customer base.
Seriously, there are far better and more profitable ways to make good money.
Is Young Living a Pyramid Scheme?
It’s quite common for multi level marketing companies to be labelled illegal pyramid schemes, because of the pyramid structure of their compensation plans. Generally this tag is undeserved and not entirely accurate.
This is the definition of an illegal style of pyramid operation: A scheme or company that relies solely on the money brought in from recruiting new members to survive. This type of company will have no genuine products of real value, and new member money pays company profits and the earnings of previous members.
As Young Living does have a range of real products that can be sold at a retail level, the company cannot be classified as an illegal pyramid scheme.
While I’ve never really understood the immense popularity of MLM as a way to earn money, I guess a lot of it stems from the fact that everything is all set up and ready to roll.
When you jump on board and buy into a distributorship for a network marketing company, you don’t have to spend time and money creating a product line or establishing the business structure. It’s already been done. You can simply join and get started selling and recruiting.
The problem is you never do get to own your own business with MLM schemes. Whenever you decide to leave the business, you simply just walk away rather than having an asset to sell that represents and compensates you for all your hard work.
What I Like
- Young Living has been going strong since 1993
- Their range of products are all-natural and good quality. People like them
- You can potentially make some money with this scheme
- I like they way you get people to buy products online, rather than having to walk the streets peddling them
- Their compensation plan is a little fairer than some others I’ve seen
- They have a good range of products
- There’s no monthly recurring fee or product auto ship
- Young Living has its own farms
What I Don’t Like and Red Flags
- In 2016, distributors only averaged earning $1 per month
- Also in 2016, 94% of Young Living members hadn’t managed to rise up the ranks at all from their starting membership
- The products are expensive when compared to similar products available at retail outlets
- With MLM, all the advantages go to the company
- You never actually ever own your own business, and can’t sell your business
- You need to be a master recruiter to make this work for you and rise up the ranks
- The health and wellness niche is very, very saturated
- MLM is one of the toughest ways to make decent, consistent income
How Much Does Young Living Cost To Join?
To remain eligible as a distributor, all you need to do is purchase 50 PV worth of product annually, which is a far better deal than most other network marketing companies, who make you purchase $100s worth of product every month.
To get started will cost you some money though, as you need to purchase a Starter Kit. A Basic Kit costs $45, while a Premium Kit costs $165.
Is Young Living Oils a Scam Or Legit?
Like I mentioned earlier, I’m not a fan of the way MLM businesses are run, particularly because of the way they take advantage of their members.
To be honest the way Young Living is structured, it’s definitely fairer all round than other MLMs I’ve seen, been a part of or reviewed.
There is no monthly mandatory auto ship of products, you hardly have to purchase anything to remain eligible to earn with this, and most of the selling is actually done online through the company website.
Commissions on sales are quite generous at 24%, and the unilevel compensation structure is way fairer than the restrictive binary model used by most MLMs.
Young Living also has quite a good reputation the world over for product quality, and most of their essential oils and other natural ingredients come from their own farms.
Now, do I recommend you join Young Living as a way to try and earn money or even make a living?
No, I don’t, but if you did have your heart set on MLM, then this is definitely one of the better ones.
Me, I much prefer the simplicity and profitability that affiliate marketing offers, and you can learn more about that in the section below.
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