Compensation Plan Explained
The full explanation of the Young Living Compensation Plan will take place in two parts. The first part is to help you understand how commissions and bonuses are generated. The second part is to help you understand how you earn rank advancements and how those rank advancements increase your commissions.
Before we start, know that this is my attempt to summarize what Young Living has published in their “The Compensation Plan Explained Simply” document which is 48 pages. You can read that .pdf here: https://static.youngliving.com/en-US/PDFS/yl_comp_plan.pdf
Commissions & Bonuses
Before we look at the commissions, it is important to cover the requirements for you to earn commissions. First, you must be signed up as a wholesale member (most people purchase the Premium Starter Kit to meet this requirement) and then you must personally purchase enough products each month to generate 100PV (About $100).
So what is PV? In Young Living PV stands for Personal Volume. There is a PV number associated with each and every product in Young Living. Below you will see an image from the product catalog for the Thieves oil. Notice that the wholesale price and the PV are the exact same number… So in this example, one bottle of Thieves that costs $33.75 will add 33.75 pv when ordered.
Although most products are an exact one-to-one ratio of price to PV, some are not, so if you are ordering one-off products with the goal of meeting your monthly PV requirement, be sure to double check the PV associated with each product. Also, to help you with this process, Young Living displays the PV for your order on the order form, itself as you can see shown for the Thieves oil on the image above.
The easiest way to get your PV requirements covered each month is to make sure you have your Essential Rewards setup, which is an automatic ordering system to help you make sure you get your 100PV order each month so you remain qualified for commissions. There are other benefits to Essential Rewards orders which will be covered in another post.
Now that you understand what is required to qualify for commissions, lets talk about how commissions are generated. Now this is not an exhaustive list and as you grow your business and achieve rank advancements, you can earn more commissions and bonuses, but this is an overview of the initial payouts you qualify for after ordering your Premium Starter Kit and maintaining a 100 Personal Volume each month.
You initially qualify for Retail Earnings, Unilevel Commissions, Start Living Bonuses and Fast Start Bonuses…
Retail Earnings: As a wholesale member, you receive 24% discount off of retail price on all Young Living Products. When you sell products at retail price to your friends, family members and customers, you will personally receive 24% of the retail price in commission. Effectively, you earn the difference in price between the retail and wholesale prices.
Unilevel Commissions: These commissions are the percentages that you earn from orders and sales generated based on the PV and sales volume from the distributors below you in the compensation plan. You earn 8% commissions on people directly under you, and you earn 5% commissions from distributors directly under the distributors who are under you.
Start Living Bonuses: For each new member who purchases the Premium Starter Kit in the month they enroll, as their enroller, you receive a one-time bonus of $25.
Fast Start Bonuses: You earn a 25% commission on the Personal Volume of all new people you enroll directly under you for their first 3 calendar months (this becomes the 8% for the uni-level commission after 3 months) and you also earn a 10% commission for the first three months on all wholesale members enrolled under distributors who are directly under you (this becomes 5% after the first 3 months).
Ok, so we’ve covered a few ways in which you can earn commissions with Young Living, and I’d like to highlight what we’ve covered with an illustration.
This above image is a great way to visualize the compensation plan in action. In this example, you have two ‘legs’ growing, Sally and Leah each being a unique leg. The green lines show you where you earn 8% commissions (which is actually 25% for the first 3 months thanks to the fast start bonus) and you can see where you earn 5% (which is 10% for the first 3 months from the fast-start bonus).
Sally and Leah are on your ‘Level 1’, meaning they are directly below you. Bill and Rachel are on your “Level 2” and Tom is on “Level 3”
Notice that in this illustration, you do not receive payment on Tom’s PV? This is because you only get paid out to the first two levels when you get started, but as you get promoted, or advance in rank, you begin to earn even more commissions.
To learn how to get promotions in Young Living and earn rank advancements click here!