Young Living Compensation Plan

Young Living Essential Oils has the most dynamic compensation plan in the industry. There are 12 profit centers: retail profits, preferred customers, volume discounts, base plan compensation, fast start bonus, car bonus, leadership training expense allowance, education and training fund, Premier leadership development bonuses, business builder bonus pool, Premier Star leadership bonus pool, and the Crown Diamond bonus pool.

The following are highlights of the compensation plan. Please refer to the Policies & Procedures Manual for all the details. Every month Young Living calculates distributor commission checks to pay out a generous 50% of the total gross product commission income.

The company has in place a Commission Volume (CV) system. It is a specific percentage per dollar that distributors are paid. The CV is important and necessary to insure long-term financial solvency. The CV may vary. For example, if the CV rate is 75%, that means for every personal volume (PV) dollar purchased by your organization, you will be paid on 75% of that volume. If your organization does $10,000 of PV and the CV rate is 75%, you will be paid on $7,500.

  1. Retail Profits: This profit center gives the distributor immediate revenue. All distributors may buy at wholesale and sell at retail. The retail price is determined by multiplying the wholesale price by 1.5, which is approximately 33%, giving all distributors a generous profit margin.
  2. Preferred Customers: Any individual who becomes a direct customer of Young Living has the right to call the Young Living 800 Order Express Line, buy directly from the company, and pay only 15% above wholesale price. The 15% is not part of the personal or group volume but is divided between the company (5% as a processing fee) and the placement (10%). In the case of a first-time order, the 10% would be paid out to the sponsor. A Preferred Customer is not required to buy a Policies & Procedures Manual. However, this person may convert to a distributor at any time by calling the Order Express Line and speaking with our order entry personnel for directions. You may earn income in two ways: retail profits (10%) and earned commissions.
  3. Volume Discounts: Distributors receive a 20% personal discount on their order amount exceeding $300. This does not apply to the Business Builder Starter Pack. For example, if you order $400, you will receive a 20% discount on $100.
  4. Base Plan Compensation: This compensation plan is called a unigen plan because each person counts as one level and because the plan also features generational infinity bonuses. The unigen plan is easy to explain, easy to understand, easy to build, and easy to get a check. There are six achievement levels, and the plan pays 50% commissions earned on up to seven levels deep of qualified members.
  5. Fast Start Bonus: A 25% bonus is paid weekly to the sponsor on the commission value of all orders placed in the first calendar month up to $300 on all new distributors.
  6. Starship Bonus (Car): To be eligible for the StarShip Bonus, the distributor must qualify as a Master Star Executive for three consecutive months. Distributors will be paid 5% of their 5th level volume with a required minimum bonus earned of $300 up to $1,000 per month for each month they qualify as a Master Star Executive. Cars, trucks, boats, motor homes, and airplanes all qualify. Vehicles must be purchased or leased and may be no more than two years old. The StarShip Bonus will be paid on the monthly vehicle payment amount for up to three years. This bonus may not exceed three years and the bonus ends when the purchase price has been paid out. At that time you must purchase or lease another item in order for the bonus to start again.
  7. Leadership Training Expense Allowance: Qualified Master Star Executives will be paid 2 ½ % of their 5th level volume exceeding the $1,000 car bonus up to $5,000 per month. Copies of expense receipts must be sent to the corporate office and be received by the 6th of the following month. The reimbursement amount will be added to your commission check. In order to qualify for this program, a distributor is required to sign an agreement that this money will only be used for the building of their Young Living business and agree to let Young Living at any time audit their submitted expense reports. Please refer to the Policies & Procedures Manual for details. Anyone caught misusing this program will lose it permanently. Expenses will be limited to items that promote Young Living. Samples of expenses could include: Advertising, printing/copying, postage, shipping, telephone (up to 50% of your telephone bill), trade shows (booth rental and banners), travel with proof of distributor business purpose (transportation, car rental, gas, motel, meeting room, Young Living seminars and conventions, including registration fees), and Young Living business aids (tapes, brochures, booklets, and literature.)
  8. Education and Training Fund: This is a Bonus that is very near to the heart of Dr. Young. This is designed to enable and help distributors earn their way to company-sponsored training and workshops. Qualified Executives and above will earn added monthly income to pay for company educational and training events.
  9. Premier Leadership Development Program: This bonus is defined as a generational infinity bonus that rewards leaders for developing other leaders. A bonus is paid through the first generation up to 6 generations of qualified Master Star Executives. When you are a qualified Master Star Executive and develop one qualified Master Star Executive in your downline, you are paid a bonus on your entire downline organization, starting at level one, until you reach a 2nd generation qualified Master Star Executive. When you have two separate legs of qualified Master Star Executives, you are paid a bonus on your entire organization through two generations of qualified Master Star Executives. The bonus continues this way through 6 generations of qualified Master Star Executives.
  10. Business Builder Bonus Pool: 1% of the total company Commission Volume each month will be allocated to this pool. The qualifications will be designed to reward those distributors who are top business leaders. Special awards, contests, promotions, trips, prizes, etc., will be designed to reward qualifying distributors.
  11. Star Leadership Profit Sharing Bonus Pool: 1% of the total company Commission Volume each month will be allocated to this pool. This program is designed to reward excellence in leadership and will be paid out at our leadership activity every year.
  12. Crown Diamond Bonus Pool: 1% of the total company Commission Volume will be allocated to this pool and will be split among all qualifying Crown Diamonds. A Crown Diamond is a qualified Diamond Master Star Executive that has a qualified Diamond Master Star Executive in six different legs.

In summary, this is a powerful compensation plan that is balanced. It has something for every type of distributor. It will also empower the fulfillment of the Young Living mission: to take these wonderful essential oils to the world.