Before we get started I wanted to share my story with you…
I started my essential oil business (it’s more than oils, but we’ll talk about that later) as a single mom with very little disposable income. I truly wanted to best for my kids – which meant living a toxin-free live (as best as possible). I had done all the research, compared companies and ultimately found Young Living to be the best of the best. BUT I couldn’t afford it. Or I didn’t think I could afford it anyway. That quickly changed.
There were a few reasons I wanted to start in direct sales or network marketing and specifically with Young Living. First and foremost, I believed and loved the products. I wanted to be able to use the most pure, clean and effective household and hygience products as well as supplements. Plus, I really believe in the power of nature and love essential oils for a lot of reasons. Secondly, I needed a second income not only to afford to invest in this lifestyle, but also because I wanted to have the power of residual income. I have been a portrait photographer for a decade and after suffering a serious neck injury, I wasn’t able to work as much. That meant I didn’t have as much income because I wasn’t physically able to work. That hit me hard. How can I provide for my family in a way that if I need to take a few days or a week off it wouldn’t financially be detrimental?
Knowing your WHY is VERY important. It is also important to know that your WHY is different than everyone else’s why. I just shared mine with you. I encourage you to think about why this type of business is important and how it could benefit you and your family.
Some people want extra finances to get out of debt. Others want to build their dream home. Some have a mission to help others live healthy abundant lives using these products as they have.
Your WHY could be one very specific thing or it could be a combination of things. Your WHY can also change over time. The important thing to note is that you need a WHY. You need to know WHY you are pursuing this. It will help you stick to it when you have a bad day and feel like quitting. If your why is to be able to save money to send your kids to college and you feel like you want to quit, I want you to think about looking at your kids and saying, “Mommy is giving up on her dream and giving up on saving money for your college fund.” I don’t think I could do it. And THAT is exactly the point. Your WHY needs to keep you going!
Think about and answer these questions to help you discover your WHY.
- If you could change your life in any way, what would you want to change?
- Think about what your dream life would look like.
- What would your daily activities look like?
- Who would be around you?
- What would your finances look like?
- If you were debt-free, what would you be able to do and how would you feel?
- Would you go on more vacations? Where? Who would go with you?
- What would your grocery shopping list look like if you didn’t have to stick to a budget?
- How would you feel if you were able to provide for your family exactly like you wanted?
Write down your WHY and look at it EVERY SINGLE DAY.
Ok, now that you are thinking about your WHY, let’s look at the income disclosure. This is what got me to take a second look at this opportunity. And it’s why I have commited to my business 100%.
If financial freedom is something you are looking for, then you will want to print out this income disclosure, circle your goal, and look at it EVERY DAY multiple times a day!
Look at the column on the left labeled “Rank.”
What average MONTHLY income would change your family’s life? Don’t be shy, type out that rank in the comments!
Getting paid in three easy steps.
Step 1. Order your products through your own YL account on Essential Rewards.
Step 2. Give your friends and family your sign-up link, and then help them order their own Premium starter kit and join Essential Rewards.
Step 3. Get paid!
The compensation plan can take some time to understand. It feels overwhelming because there are so many ways to get paid. That’s a good thing. I will share some basics to get you going. But when you decide to jump on board, we’ll go a lot deeper into it so you understand how to maximize the potential.
Let’s start with this simple graphic below.
You will need to order 50 to 100 PV minimum each month on a Quick Order or Essential Rewards in order to get your paycheck. This will be easy considering Young Living has over 600 AMAZING products for the entire family and you are already ordering regularly on Essential Rewards.
People often ask if the 50 or 100 PV need to be in ONE order or if it can be multiple orders in one month. It can be multiple orders but remember you can only place one ER order each month.
As you may or may not know, people can join Young Living with a Retail account (no starter kit required) or a Membership account (Starter Kit or Premium Starter Kit (PSK) required).
When you enroll someone with a Retail account, you make 24% off the PV total of their order. As you can see in the graphic, you need to spend 50 PV in the same month they order to receive the Retail Earnings.
Retail vs Membership
While you may earn a bigger percent off your Retail customers, it is more beneficial for them, and you, to help them get started as a member with a PSK. Retail customers who try one product rarely fall in love with Young Living and don’t get any of the other perks of membership.
You can see a comparison of retail accounts VS membership accounts in this graphic.
Retail customers can switch to a Membership account with a PSK at any time. They just need to call customer service.
Compensation Plan continued…
When you enroll a Member with a Premium Starter Kit, you make a $50 bonus. $25 of that $50 comes from a one-time $25 “Start Living Kit bonus.” NOTE: You will not receive this bonus if you help someone enroll with the Basic Starter Kit.
The other $25 comes from the Fast Start Bonus, which is 25% of the PV total. A Premium Starter Kit is valued at 100 PV total. This is important to note because you earn bonuses and commissions off of PV values NOT dollar amounts.
You actually receive the Fast Start bonus for the first three months that a person is a new member under you. That means the sooner you get him/her on ER, the more you will maximize earnings. Getting him/her on ER right away also means he/she can start living above the wellness line pronto!
Here you can see an example of how those bonuses are broken down.
In Example one, someone has ordered just the Premium Starter Kit.
The Premium Start Kit (PSK) cost $150-$260 (depending on the kit) and is worth 100 PV (Product Value)
you can see a $25 bonus for buying the PSK and $25 bonus for 25% of the 100 PV.
In Example 2 someone has purchased a PSK and NingXia Red.
Premium Start Kit $165 (100 PV) + NingXia Red $73 (73 PV) = 173 PV
$50 (From Fast Start and Fast Living bonus) + $18.25 (from Fast Start bonus) = $68.25 Paycheck
Once your member has been with Young Living for more than three months, the bonus period ends and you earn a unilevel commission on what they buy. The percentage you make on their order will depend on where you strategically place them in your organization. I’ll cover this later!
In order to receive your unilevel commissions, you need to order 100 PV in the same month that your members order. Again this can be an ER or Quick order and can be one or multiple orders.
The long and short of it is that if you help a friend get a PSK in April, you need to spend 50 PV in April to receive your $50 bonus paycheck.
There are many more ways to receive bonuses. I won’t cover them all now, but one bonus you will want to be familiar with early on is the Rising Star Team Bonus. It is important to learn about this bonus opportunity early on as it is not available once you hit the rank of Silver. This is the one exception where, if you qualify for this bonus, you need to place your 100 PV order on Essential Rewards (ER) in order to receive this bonus.
My best advice is to order 100 PV on ER every month to make sure you are paid everything you qualify for.
Now that we have covered bonuses, let’s talk about Unilevel Commissions.
Once your member has been with Young Living for more than three months, the bonus period ends and you earn a unilevel commission on what they buy. Here’s a graphic to help explain the Compensation Plan from Member to Executive.
- Member, Star, Senior Star, & Executive are ranks that you can qualify for as your business grows.
- The top PV number is the amount you need to spend to get paid. As you can see, if you only spend 50 PV you will not receive any unilevel commissions.
- OGV is the Overall Group Volume you need to hit that rank.
- PGV is Personal Group Volume and does not apply until you earn the rank of Silver, which follows Executive.
- LEG (volume per each leg) OGV is the amount you need in different organizations under you. For executive rank, you need two teams under you at a volume of 1,000 each, and your overall volume needs to reach 4,000.
Unilevel commission percentages show you the percentage of PV totals you will receive in unilevel commission.
You can also see here that you will receive unilevel commissions from farther down in your team as you advance in rank.
If you are a member and spend 100 PV, you will receive unilevel commissions on your level 1 & 2 members.
Once you hit 500 overall group volume (meaning your entire team hits 500 PV, including your 100 PV order) you are a Star and will receive unilevel commissions off your levels 1, 2 and 3.
Once you have an overall group volume of 2000 PV, you are a Senior Star and receive unilevel commissions on levels 1, 2, 3, & 4.
Once you have two legs at 1000+ PV each and an overall group volume of 4000 PV, you are an Executives and receive commissions on your levels 1, 2, 3, 4, & 5.
NOTE: These volumes have to be hit in a calendar month. You start back at 0 PV each month. This is why getting your members on ER is important so you don’t have to rebuild every month.
Also, the overall group volume to hit the next rank can come from as far down in your team that exists but you only receive unilevel commissions off the PV in the levels you qualify for.
You will also notice that the % you earn changes depending on where the person is in your organization. You make 8% off your level 1 members, 5% off your level 2s, and 4% off your level 3, 4, and 5 members.
As you achieve ranks higher than Executive, you have the ability to receive generational bonuses on members further down in your organization. Another lesson for another day.
Bonuses and commissions are calculated within calendar months. That means everything that is ordered in April will be calculated and paid out in May. Paychecks are currently paid out in the middle of the month.
***Sign up for direct deposit for instant access to your YL paycheck***
As your team grows, it is more difficult to calculate what you will earn. I rely on an app called Oily Tools to calculate my paychecks. This app incurs a monthly fee but it can most likely be written off as a business expense! As an Oily Tools member, I can gift you one month free to check it out. Let me know after this class if you want your free month.
Ok, how are you doing? You still with me? I know it’s a lot, but it takes hearing it about 50 times to really get it. Absorb what you can and know there are resources out there to help you.
Let’s talk a little strategy. This is REALLY important to know early on.
In order to maximize your efforts, you can strategically place new members under existing members under you. This will assist in building “LEGS.” Legs are basically little teams or communities underneath you. For ranks Executive and above, you need LEGS to be eligible for each rank.
To reach the rank of Executive and Silver, you will need two “LEGS.”
Let’s look closer at this graphic
In this graphic the green circles are your personally enrolled. If Kim and Jane are spending 100 PV, they will be the top of two different legs for you. In this example, you can see that Jane enrolled Pat. You have now enrolled Sue and have strategically placed her underneath Pat to help build your leg under Jane.
As soon as you sign up your very first member, go through these lessons. You only have 20 days to move someone for free and without any paperwork, so it is important to have an idea on why and where you may want to strategically place your new members as you sign them up. If you need some guidance on a specific person, connect with your Enroller and talk it through with them.
All About Those IPAs (income producing activities)
It’s no secret that people start a business to make money. There is nothing wrong with prosperity! HELLO! We need money to buy things. It is important to make sure you are focusing your time on Income Producing Activities. #WorkSmarterNotHarder
Most people start their business while they are still working other jobs, which means time can be limited. You can easily dedicate one hour a day to getting started. You may need to cut out a TV show to fit it in but it will be WELL WORTH IT!!!!
Believe it or not, people buy YOU not your product. When people know, like, and trust you, they are excited to try what you have. The good news is, your friends and family already know, like, and trust you, so you won’t need to spend time building the relationship for them to want what you have to offer.
Use your dedicated hour to connect with those you know. Find out what areas in their lives need a little boost; then let them know they can use the products just like you do. Share the benefits of the Premium Start Kit and help them order their own!
You know how much this product has helped you. Don’t be shy to help the ones you love.
There are many different ways to share with others. The point I want to drive home is that there is not one right way to share these products and this business. The best way to share is the way that YOU feel comfortable sharing. I will then encourage you to step outside your comfort zone and try some different ways to see what really works best for you and your audience. Sometimes we think one way is the best when really it’s another way.
I have a really helpful PDF for you called “Income Producing Activities For Beginners.” This sheet will help you explore different ways to share. It also gives tips on how to spend your time to maximize your efforts and connect with others. When you join my team, I will send it to you to make sure you have clear direction on how to get started.
Treat this like a hobby, get paid like a hobby. Treat it like a business, get paid like a business.
That, of course, means we have to talk about taxes… Whomp Whomp.
I am not an accountant so in order to get accurate information, you will need to contact your accountant, but I can tell you this…
When you purchased your Young Living Premium Starter Kit, you were given the opportunity to become a business owner! CONGRATS!!
As a Young Living member, you are considered to be an Independent Distributor paid as a 1099 contracted employee with Young Living. According to the IRS, if you make over $600 during 2018, you will need to claim your earnings and in that case, Young Living will send you a 1099 form at the beginning of the year that you will use to file your taxes.
TIP: Set aside money every month to go towards your taxes so you are not caught off-guard come April 15th. Ask your accountant how much you should be saving each month to put towards your taxes.
Being a business owner means that you have the ability to deduct business expenses. You need to check with your accountant but I hear these are common deductions for your Young Living business.
Consider Possible Tax Deductions
- A Premium Starter Kit
- Products you give away as samples
- A work computer or phone
- Office supplies (Paper/Ink)
- Mileage to and from oily get-togethers
- Convention ticket
- Subscription services like GROworkspace and Oily Tools (Two MUST HAVES to GRO your business.)
How do I know if I will be good at this?
We have already covered a lot, but I want to cover one last thing and that is that you will be great at this business.
This business is all about building relationships. If you care for other people and want the best for them, you will be amazing at this business.
If you are coachable you will go far! Being coachable is about being aware of your surroundings. It’s paying attention to what others are saying and teaching based on their own experiences. It’s listening closely enough to pull out the golden nuggets that might help you on your own journey and applying them.
If you are willing to work on personal growth, you will go far!
The best part about this business is that we all work together. Our team has people with all different personalities. We all link arms, play to our strengths, and help one another.
This is a learn-as-you-go type of business. Don’t wait until you know EVERYTHING to get started. I promise I will be here every step of the way. I also highly recommend subscribing to GROworkspace Premium VIP membership to get instant access to 50 business lessons that explain these topics at a deeper level. Your membership also includes two new classes each month to help you educate your friends and team, and a private VIP Facebook community for extra support and training. You can access your FREE WEEK TRIAL at https://www.groworkspace.com/store/e94UvcLF
You can cancel your subscription at any time.
Remember, it is not your job to decide who does and doesn’t need these products and this business opportunity. It is your job to share it with the ones you love. It is their job to decide what is best for them. Just like me, a “no” now, may change to a “yes” later. How many lives can you change when YOU say YES?!
So quash those limiting beliefs, get out there, and start sharing not only about these products but about the amazing business opportunity Young Living offers.
OK, so now you know the basics. Shoot me a message that you are ready to start Young Living business and we’ll get you started strong. I’ll be by your side the whole time.