Young Living is a multi-level marketing (MLM) company known for selling essential oils. They have released their 2022 Young Living Income Disclosure Statement covering income their Brand Partners made in 2021. Let’s let the numbers do the talking and see what it says.
The Young Living Income Disclosure Statement reveals the average market partner earns $276 per year and the median is $0. This means that you are unlikely to earn any money working with Young Living and in fact are likely to lose money.
The actual Young Living Income Disclosure Statement Document from their site is at the bottom of this post (click here). You can also use the table of contents to skip to the portions of this article that interest you!
As a reminder, I have an MBA, I am a Certified Public Accountant (CPA), and have almost 15 years working in finance and accounting. These are my opinions based on researched facts and my understanding of those facts. However, this is not legal, financial, or tax advice. If you need legal, financial, or tax advice, you should reach out to a professional for a 1:1 chat! All opinions are my own.
To skip right to the PDF of the Income Disclosure – Click Here.
How Much Does it Cost to Join Young Living?
At a minimum to be commission qualified at the most basic level, you must have 100 Customer Volume (CV) per month. This is likely to be about $100 a month. In most Multi-Level Marketing Companies (MLMs) Volume points don’t equate to dollars. This can be the product you buy or sell to someone else. This may result in you needing to buy products to stay active to be able to earn commissions.
Young Living Income Disclosure Assumptions
The Young Living Income Disclosure Statement for 2022 actually contains earnings for Brand Partners for the calendar year 2021. Brand Partners are independent sales consultants that do business with Young Living to distribute their products. Brand partners are recorded in the top rank they achieved in the 12 months of 2021.
There are 10 different ranks within the Young Living Compensation plan. It starts at Associate and goes through Royal Crown Diamond. But about 99% of Brand Partners fall within the first three ranks. With over 89% falling into the bottom rank of Associates.
Those at the rank Associate earned between $0 and $781 for the year. This is revenue before expenses. This means there are people out there earning $0 revenue. They are losing money on top of that to “join the business”.
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Young Living Income Disclosure Facts and Stats
- 98.7% of all Brand Partners are in the bottom 3 ranks of Young Living making virtually no money
- 89.0% of all Brand Partners are at the lowest tier of Associate, with more than 50% of them earning $0 (you can tell this because the Median income is $0). The average for everyone at this rank is $3, and the highest is $781. That means for 89% of those involved in YL, the highest they could hope to achieve at that rank is $781.
- The next two tiers Star/Senior Star, have about 10% of all Brand Partners the median was $206/$1,278 and the average was $1,510/$3,671
- There are people who have been in the Star/Senior Star ranking for 190 months, which is 15 years.
- The highest four ranks within Young Living – Platinum, Diamond, Crown Diamond, and Royal Crown Diamond are the ranks that earn enough to replace a full-time income
- However, these top four ranks account for less than .1% each, for a total of less than .5% for all four ranks combined. The odds are not in your favor.
- Those in these highest tier have taken on average 42 months (3.5 years) to reach this rank but also as many as 169 months (14 years) to reach the rank.
- There are people who have spent the same number of months with Young Living both in the lowest ranks and the highest ranks – so being with the company for an extended period of time is not a guarantee you will make more money
Can you Make Money with Young Living?
After reviewing the income disclosure statement – is it possible to earn money with Young Living, sure. Is it likely? No. Is it ethical? In my opinion, also no. Per a review of the income disclosure statement, it’s clear the only way to make money is by being in the top ranks, where less than 1% of the Young Living Brand Partners fall. They make money off getting other people to join, and then earn commissions off the money those Brand Partners spend to stay within Young Living.
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My Opinion: Why are MLMs Unethical
MLMs are a very popular business model where companies choose to sell their products via independent sales consultants instead of a traditional model of going through stores. Why would a company choose this business model? More customers! They can not only sell the product, but they can sell the “dream” of earning an amazing income from home. They make money off people who want a chance to start the business, not just those interested in the product.
By reviewing MLM’s compensation plans and income disclosures, it is obvious that this business model only works for salespeople if they recruit. The people susceptible to this recruitment are typically moms or other women who want to help contribute income to their household while balancing their other responsibilities. Typically people are only interested in these opportunities if they are already in a tough financial position.
Almost every success story from someone in an MLM starts off by saying that “I needed $300 for rent”, “I couldn’t afford formula”, or some other sob story. Someone took advantage of this dire situation and recruited them. It worked for them, great. But over 99% of people will end up worse than where they started.
Please, look at the numbers before you join an MLM.
It is no secret based on this article, I am not a fan of the multi-level marketing company business structure. If you decide you’re going to participate in this company, please make sure you go in with healthy skepticism and understand the odds are against you. If you do become successful, at what cost is it? Are you taking advantage of people? Probably. What is important to you? You have to answer those questions for yourself.
Young Living Income Disclosure Statement Download
Here is the PDF that comes directly from Young Living’s website showing their 2022 Income Disclosure Statement. This was the basis of everything discussed above, along with their compensation plan found here.
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