Wondering if Young Living is a scam, pyramid scheme or a good business opportunity for you? This Young Living review should clear any doubts you might currently have.
An Overview of Young Living
Let me start by explicitly stating that this is not a review of the Young Living essential oil products. I do not know if the products are good for your body or not because I have not tried them. The whole point of this review is to provide you with enough information to decide if the business opportunity Young Living presents is the right one for you.
Even though we will talk a little bit about some of its products, this is a review of the opportunity rather than individual products.
I understand some people might be unable to sit through this long review due to time or patience constraints. If you are one of such people, here is a point-form summary of some of the stuff you need to know about Young Living:
- The company itself is legit and it sells actual essential oil products
- To become a distributor, you will have to invest between $45 and $160 on a Starter kit (flat $199.75 if you’re in Canada)
- After purchasing a starter kit, you will have to purchase an Essential Rewards (ER) kit
- You will have to order products every month to remain part of this ER
- They operate a Multi-Level Marketing (MLM) business model
- It is possible to make money with this company but like most MLMs, it is highly improbable. 95% of the people who join fail to make any money
- This is not a work from home opportunity.
Essential oils are not the same as basic oils. They are luxury oils that are expensive when compared to regular oils.
If you already have a system of consistently reaching people looking for essential oils, you will do well as a Young Living distributor. Unfortunately, most distributors don’t have a system, because Young Living doesn’t teach them a good one, and this sets most distributors up for failure from the beginning.
Fortunately, you can follow the exact system I follow that shows you how to get leads when promoting absolutely any product you want, including essential oils. Sweetest part is it’s FREE to join too. 🙂
What is Young Living?
Young Living is an MLM-based company that sells essential oils, personal health products, and other related products. The company was founded by Gary Young and his wife, Mary, in 1993.
The first thing you should always look out for whenever you are considering an MLM opportunity are the products you will be selling. It should never be how much the company is saying you can make.
What separates a good MLM company from a blatant pyramid scheme is the strength of the products they offer. The products have to be unique, reasonably priced and trustworthy for you to even consider joining that MLM opportunity.
If the product is not unique, it means it can be gotten somewhere else. Now if it can be gotten somewhere else for even cheaper, like an actual store, why should anyone want to get the product from you?
I never recommend any kind of MLMs but if you must join one, make sure you take a good look at the products first. As a rule of thumb, only opt-in to an MLM opportunity if you truly believe there is real value in the products. Most people do not truly believe in the products, but they try to sell it anyway. This is one way of setting yourself up for failure from the very beginning.
Some of the products offered by Young Living are:
- Essential Oil Blends
- Massage Oils
- Healthy snacks
- Flour, etc…
I cannot tell you anything comprehensive about the products because I have not tried any of them. One thing I can tell you is: Essential Oils are not unique. Essential oils can be found at a regular store for much cheaper and as a matter of fact, many MLMs even offer essential oils.
Let’s take the pancake and waffle mix they are offering for example. Young Living offers a 2lb box of pancake and waffle mix for $13.82. Walmart, which is a more popular and trusted company than Young Living could ever be, offers several brands of 2lb waffle mix for just over $2. Now could you tell me why any rational-thinking individual would buy a product from you when they could just go to Walmart?
Let’s close up this section with this question: If someone approached you with the same products at the same price, would you actually spend your money on the products?
If your answer is no, why then would you believe you can make a living selling these products to other people?
The Business Opportunity
A company would be a blatant pyramid scheme if they didn’t sell products at all, but we have established from the last section that making an income from the products is somewhat unrealistic. Considering that you would have to buy these products monthly, it is virtually impossible to even break even, let alone make profits.
If we want to put aside corporate gibberish and call a spade a spade, the real opportunity lies with recruiting people into the company.
Whether you choose to only sell products or you choose to recruit new members into the opportunity, you will need to spend between $45 and $160 to get a starter kit. The different starter kits are:
- Basic Starter Kit: $45
- Premium Starter Kit: $160
All kits contain a simple guide on how to get started and they have company brochures, business cards and more. The premium kit contains small samples to market to potential customers.
After purchasing a starter kit, you will now have to purchase an Essential Rewards (ER) kit.
These Essential Rewards kits are the actual products you will be selling. You purchase these at wholesale prices (24% discount off retail value) and then earn a percentage of any retail sale you make.
I think it is so much easier to sell the business opportunity than to sell only the products. For someone to join the opportunity anyway, they would have to buy a product first. So selling the opportunity also implies selling products.
Don’t misunderstand what I am trying to say here. There is still a very high chance of failure either way but I think to stand a chance of making money with this company, the business opportunity is the more feasible way to go.
The Compensation Plan
I don’t like writing about the compensation plan of most MLMs because they tend to highlight how much you could possibly earn, and then they subdue how difficult and highly unlikely it is to achieve those earnings.
Below is a video explaining the compensation plan in detail to you.
Disclaimer: I do NOT endorse this video. I do NOT recommend Young Living and I am sharing this video solely for educational purposes.
- Your rank is dependent the number of personal volume (PV) points in your group
- Participation of members in your group is what determines your success or failure in this business
- You could earn commissions 5 levels deep into your downline
- It is not enough to be successful right now. To remain successful long-term, the members of your downline have to remain motivated and successful
- Note that you wouldn’t know most of the people in your downline personally
Can you now see why 95% of people fail, despite the large income potential numbers they tout?
Let’s look at numbers
If you are still having doubts about everything I have said till this point, that’s fair.
How about we look at some official numbers? Here’s a screenshot of Young Living’s official income disclosure statement from 2015…
Here are a few things to note:
- 93.1% of all members earn $1 per month on average
- 99% of all members earn less than $2,221 per month on average
- You start earning $2,221 per month on average at the silver level and the average number of months it takes to get there is 32.
- Another important thing to note is that this chart only covers how much was paid to members. It does not include the expenses incurred by members like the recurring ER kit costs.
- As bad as these stats look, it is better than your typical MLM. 99% of distributors in most MLMs earn less than $2,000 a year!
Who is this opportunity for?
If you truly believe in the products you will be selling, you are prepared to be extremely pushy and “salesy” and if you have the strength to handle rejection and push on even if you don’t see results, then you at least have a slim chance of being successful.
If you were looking for a work from home opportunity, you are looking at the wrong company. I recommend you build your own online business if you want to work from home.
If you are uncomfortable with the idea of cold calling or hard selling to people, you are better off looking away from network marketing in general.
- Distributors purchase the products at wholesale prices
- For members that join without a sponsor, the company assigns them one
- Even though the average earnings are low, they are still better than most MLM companies
- It is very unlikely that you will make money
- Commissions could be very low and will require a lot of sales to even break even
- It can be argued to be a pyramid scheme
- The products are not unique and are relatively expensive
- The start-up costs are quite high for a beginner
Is Young Living a Pyramid Scheme?
Yes, it is a pyramid scheme. If recruiting stops today, what do you think will happen to the company?
The company still stands with its products but as you would expect, not many people would buy a pancake mix for $13 when they can buy one for $2. Most of the product purchases are made by members who want to participate in the business opportunity and when recruiting stops, the business opportunity crumbles.
The only way the company would survive without recruiting is if they reduced their prices to match up with the market prices. As things currently stand though, I don’t believe the company would survive without recruiting.
One thing you need to realize is that MLMs are hard! This is one thing MLM companies would never tell you before they get you to join. They will take your money and let you find out the hard way that while it is possible to earn a lot of money, it is very improbable and difficult.
If you are not cut out for it, you are very likely to fail. There is a reason 95% of members fail in MLMs and I refuse to believe 95% of the crowd is just lazy or incompetent. The problem is with the entire MLM business model.
If you would like to make money from home, at your own pace, in a niche you already love and where your success is not dependent on anybody, build your own online business.
No hard selling, no cold calling, no recruiting, no pyramids, none of that stuff. Just you minding your own business, literally.
Young Living Essential Oils Review
PRODUCT NAME: Young Living
Price: $45-$160 for Starter Kit
Overall Ranking: 30/100
Owners: Gary and Mary Young