Here are some of the most Frequently Asked Questions we get from people we talk to. If you have a question that you haven't seen answered, please call your sponsor or email to email@example.com.
What's the difference between network marketing, multi-level marketing and pyramid schemes?
Network marketing and multi-level marketing are general terms for the same type of business setup: one that allows you to sell merchandise directly to consumers, and also have people sign up as distributors. You then earn commissions on the sales your distributors make.
Multi-level marketing (or MLM as it’s often called) is a legitimate business model that, like all other industries, has its share of both good and bad companies involved in it. Some people who have been burned by the bad apples in the MLM world have a tendency to dismiss the entire industry as a giant “scam.”
We make no excuses for bad MLM companies. Some of us were involved with some before we came to Young Living, and certainly werwn't looking to repeat that experience. But once we tried Young Living's products, proved to many of us how unique and superior they were to anything else we’d ever seen, and decided to give MLM another chance. We all are very glad we did.
One significant problem with many MLM companies is the poor quality of training offered. Since anyone can join a network, many people get involved without any experience or skill in marketing. These people have a desire to learn and are willing to put in the effort, but without proper training and skills, they don’t get great results. Understandably, they feel disappointed.
MLM also seems to attract certain people with a "something for nothing" attitude who aren’t prepared to put in any real effort. Naturally these people don’t do well at all, and a few of them become very vocal opponents to MLM. Often they are not entirely to blame. The people who recruit them are also poorly trained and unskilled, and tend to make outrageous promises just to get people to join.
The bottom line is, it’s better to keep an open mind and evaluate each opportunity individually to see if it will work for you. As always, stay away from vague "get rich quick" promises.
As this business continues to gain in popularity and attracts more honest, competent people at all levels, MLM will continue to grow and prosper, develop higher standards, sell better products and become more efficient. We are convinced that networking Marketing continues to grow to ever greater dominance.
Pyramid schemes, on the other hand, are nothing but pure scams, run by immoral hucksters who get money from as many innocent people as they can by promising huge payouts later on. They do actually make a few payouts -- just enough to look like a legitimate company and attract more innocent people -- then, they literally steal the money and take off. Hopefully, they get caught and land in jail.
How do I know this company is reputable?
Before you make any decision to join any company, it’s always best to do your homework. Order a few products and try them out. Read the literature. Talk to your potential sponsor. Talk to other members if you can. Don’t be shy about asking hard questions. Although we’ve shared with you my some of our own experiences and feelings about Young Living, I urge you to take your time and prove to yourself that this is a company with high integrity and products that are unmatched for quality... and one you want to do business with.
How can I be sure the products are really of high quality?
Again, it’s best to use them yourself. Read the ingredients. All the ingredients in Young Living products can be found on their website (click here). There are no “secret ingredients” and no false claims of what the product will do (no product, not even an FDA-approved prescription drug, can promise to “cure” a particular disease “permanently.”).
You can also read about where and how these products are made by clicking here. Young Living distills their own essential oils at a physical plant in Utah. You can actually go there and take a tour of the premises if you wish.
Do I have to pay taxes on my earnings?
Yes. You will get Form 1099 from the corporate office in January with the amount of your earnings for the entire year. It is up to you to report this amount as business income on your taxes. If you need to make quarterly estimated tax payments, it is up to you to file them. See an accountant if you do not know how to report business income on your tax return, or visit the IRS website at www.irs.gov.
Are there tax advantages to being self-employed?
Yes, there are many tax advantages. When you’re in business for yourself, you can deduct business-related expenses from your gross income and reduce your tax burden. There are also tax-free retirement plans that are only available to the self-employed, and other advantages. However, you also have an increased burden in the so-called payroll taxes (Social Security and Medicare) because you will be paying both employer and employee shares. Please see an accountant or get more information from the IRS if you aren’t familiar with these topics.
How does the compensation plan work in detail?
You can download a 2-page description of Young Living’s compensation plan in PDF form by clicking here.
Who keeps track of all the sales?
In network marketing the company keep track and does all the back-office accounting.
How do you know if you’re getting everything you’re entitled to?
This is why it’s important to get with a company you can trust. Personally, I do not double-check all the paperwork that comes to me because I trust that the company is doing everything right. One of the advantages of multi-level marketing is having all this office stuff taken care of and not having to set up your own complicated accounting system. You can be sure there are checks and balances, and the information is available if you have a need for it.
Do you get a printout of your earnings from the company?
Yes, you can get a monthly printout of your downline info, including dollar amounts of sales, last month ordered, and other data. and you access it online in your personal virtual office.
Who do you call on with questions about your commissions on your downline?
You will have access to a distributor support-line 800 number. A company employee looks up and answers questions over the phone or you can go online and chat with the live operators between 8am and 6pm.
Distributors do not have anything to tell their downline about any technical accounting information. The company reps are helpful, accurate and up-to-date on everything. Young Living has an excellent support staff, which is extremely important when you’re involved in MLM.
How will I find customers?
This is what our online training site will tell you! If you sign up, you’ll get access to our step-by-step plan for marketing Young Living products. It is based on personal experiences and the experiences of all the other successful distributors in Young Living. Put very simply, it boils down to three main steps:
- Identifying good prospects. Reaching them with the right message and through the right media.
- Following up.
You have a great deal of flexibility with Step 2, as there are many ways to get the right message across with the right media. For example, mailing letters, writing a newsletter, and advertising are all methods that do not require face-to-face contact. Giving free demonstrations or teaching small classes are methods that don’t require sales techniques, as you’re simply giving out information. In general, a soft-sell method is preferable to hard-sell one, because these products sell themselves once they get exposure. Your job is to simply find opportunities to show them off.
How quickly can I make good money and quit my job?
This is something that only you will know, because it depends on your personal motivation, the actions you take every day, and how much time you devote to building your business. It also depends on being able to set daily, weekly, monthly and yearly goals for yourself, and taking the positive actions to meet those goals. It may even boil down to a simple choice you make between watching TV in the evening, or making follow-up phone calls to your leads and prospects. Only you can make these choices—no one else can.
On the other hand, if you are committed to building a business, the income potential is very real. You find an outline of steps to take to achieve over $5,000 income by your 5th month in this business.
However, most distributors start out part-time, keeping their regular jobs for security when they begin. A rare few have gone full-time right from the start, and have done very well. It makes sense to test the waters and see if the opportunity is right for you by starting small and expanding more slowly.
How difficult is it to get people to sign up as distributors?
Not difficult, once they become acquainted with the products. Your best prospects will be your customers. People who are already using products for personal use will understand their value... some of them will decide they’re ready to go to the next step.
But having the proper training is also important. Your new distributors will turn to you for advice and support, and must know how to give it to them. That will be easy once you have access to our online training site, as it’s all there.
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