I used to think of Young Living Essential Oils as a Pyramid Scheme. It is Multi-Level Marketing, MLM for short. For those who don’t know, MLM give a percent to the person who sells it, then a smaller percent to the person who sold it to that person, and a smaller percent to the person to sold it to that one… and on. Each company is structured a little differently but their products are usually now for being a high quality. Some examples are Mary Kay, Tupperware, Pampered Chef, etc. Somewhere, I heard it referred to as Network Marking. But I had already made up my mind, it was a scheme. They all were.
However, ten years ago, I started a farm and that changed everything. As a entrepreneurial, direct-marketing farmer (who needed to sell all their milk, meat and eggs each week to pay the bills) I suddenly had new appreciation for word-of-mouth advertising. We had no advertising budget and relied entirely on people telling their family and friends about our farm. Ten years later we still do. Early on we offered “thank you’s” for people to tell their friends and family but found they did it anyway and we realized we would have to raise prices to keep it up.
When I started sharing and teaching about oils we re-analyzed the marketing of Young Living and realized it isn’t much different than what we rely on –good referrals. Except, Young Living has a “thank you” plan in place. Meaning, they will reimburse your marketing efforts. This is much different than what I always pictured.
I always thought the ones at the top get rich off the backs of the poor at the bottom. However, this seems to more appropriately describe the payment structure of the Big Box Stores (though I won’t name any here). Recently, I spoke with a woman who worked at a Big Box Store for decades who described managers who worked hard and moved up the ladder only to be fired or blocked from moving further up the pay scales.
With Young Living you can move up the ladder to the tip top – it all depends on the level of effort you put into it. I don’t mind hard work, long hours, extra effort and such if it will pay off in the long run. I like the potential of growing. There are no limits, no one discouraging you or stoping you.
Some years ago, we went to the Big Grocery Stores to market our eggs wholesale. We learned they have a 50% markup on their products! Yikes! This seemed unreasonable to us. We were the ones with all the risk of producing and growing. We were just wanting a convenient place for customers to pick them up. But they have a building, lights, refrigerators, managers, employees, workers compensation, insurance, parking lots, etc… I guess they do have a great deal of expenses.
When we carry items in the store that are not our own we have a 20% mark up which seems fair for the marketing efforts, refrigeration, electricity, our one employee, etc.
Young Living has a 24% markup for marketing. That 24% is used to “thank” or “compensate” the people who did the marketing, advertising, researching, educating, hand holding, and praying with each customer. That doesn’t feel unreasonable to me.
They have 25% that is used to pay up to five levels. So I sign up You and get 8%, You sign up Dave and get 8% while I get 5%. This goes down 5 levels a less percent each time. This encourages they people to help, teach and connect to the people they sign up. This is a good thing.
I have never felt like someone pressured me into buying oils, buying more than I needed, buying something I couldn’t use or a certain amount so they can win a prize. Though I have felt like that many times before with other companies selling other products.
All the Young Living Distributers I have met with have a universal desire to help each other and everyone else, too. This is remarkable because it is unusual. In the last month, I have spoken with several of the highest level Young Living has to offer. They are earning “way big” salaries yet they each took thirty to forty minutes to answer all my questions. Can you call a Big Box Store CEO and visit for 30 minutes on a Friday night?
Now, consider if I liked Duracell batteries or Bic pens or Amish furniture and thought they were the best. No matter how many people I tell I will not get compensated. How about Chipolte or Red Lobster or my favorite Mexican restaurant? If I tell my family and friends about my great meal will I get a couple bucks? No.
Relationship marketing is about giving back to the people who share product they like, what oils for them, and why they think is the best thing ever! I spend a great deal of time sharing our stories and helping people. It feels great! Health is improved and lives are changed!
What if I don’t have an idea of how to help? I can call a dozen people asking a health question or concern. They will drop what they are doing to take few minutes to help another. If it is real uncommon they will think about it constantly and ask others until a solution is found. The Young Living Distributers are wonderful, helpful people. I am so impressed with each one I have met with so far!
Yes, you can buy an essential oil in the grocery store. But it will not come with the passion, commitment, community, help and love that Young Living Essential Oils has.
Still have questions? Call me, Rachel at 573-382-3844.
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