In addition to the other 4 ways of earning commission (Retail, Fast Start, Power of 3 and Unilevel), doTERRA takes 7% of its global commissionable volume and uses it as bonuses for everyone who is Premier and above. There are 3 different bonuses which I will explain below. But first, here is a diagram which summarises it all.
The Unilevel Commission is your financial pipeline and your residual income. It is unlimited and will continue to grow and grow as you and people in your downline continue to share doTERRA. Remember, it is not paid on the first 60 days of someone’s account when the Fast Start payments are made. It only kicks in after those 60 days are up.
In other companies, this is very different. Firstly, most other companies will pay the highest percentage on the people placed close to you – your front line, whereas doTERRA pays the least. This means that actually although you get paid less initially, the earning potential is a lot higher because you get paid the most on the most amount of people in your organisation. And doTERRA pay on 7 levels down, which is, in itself deeper than most companies, and also there is the matter of dynamic compression, which I will explain later. I really love this Unilevel plan, it is so very generous and when you compare it to other companies, it really is amazing.
One of the additional bonuses you can earn with doTERRA is the Power of 3 team structure bonus. This encourages Wellness Advocates to build a solid team structure and rewards us for doing so. This is a set bonus that has a couple of qualifications, and there are 3 different levels of the bonus. The bonus is fixed in terms of the US dollar amount that is earned when the right structure is in place, but obviously what we get as WAs outside of the US depends on the exchange rate, which since Brexit, has made it better for us as the bonuses are higher!
Every time you enroll a new wholesale account member, regardless as to whether they are a Wholesale Customer or Wellness Advocate, you earn a Fast Start bonus on their initial enrollment order, and then on any orders they make for the first 60 days of their membership. You also make this bonus on your team enrollments, and the bonus is paid weekly on a Wednesday. And here is how it works.
The first way you can get paid from doTERRA is through the retail commission, and anyone with a Wellness Advocate account can qualify. For every retail sale you make, you earn the difference between retail and wholesale, which is 25%, which gets credited to your A/R balance monthly along with all other commissions (apart from Fast Start which is paid weekly).
Interestingly, with other network marketing companies, retail commission is the main, or even only, way you can get paid, but with doTERRA this is really not the main focus of the business and is what we call a ‘hauling buckets’ method of earning commission. This means that if you only focus on selling products at retail, you are constantly having to find more and more customers each month, and there is no incentive for them to be loyal to you, or to reorder. It is also not in the best interests of any customer that wants to purchase more than 2-3 items each year. Unlike other companies, doTERRA opens up the opportunity to purchase all products at wholesale prices to everyone, who can either open a Wholesale Customer account, or a Wellness Advocate account which comes with the opportunity to earn commissions, and so in order to create an ongoing relationship with customers, and one that will save them money, it is better to recommend one of these wholesale accounts over buying at retail.
Some people like to stay on top of all the commissions they receive, especially early on when they are just starting out, and work out what they will get in advance. When your team becomes a lot larger, and you gain confidence in the compensation plan working, you will just accept that this is how it all happens, but sometimes, if you are not aware of the Commissionable Volume (CV), the amount you get may be less than expected. CV is common in network marketing companies outside of the US (often because of differences in tax, VAT, etc), and one that sometimes people can get stuck on, so here is some information about the Commissionable Volume – the volume amount that the Fast Start and Unilevel commissions are based on.