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Young Living
Young Living is a multi-level marketing company based in Lehi, Utah. Co-founded by D. Gary Young and Mary Young in 1993, it sells essential oils and other related products.
D. Gary Young gained an interest in alternative medicine after suffering a back injury in the early 1970s. Then, he became interested in essential oils after meeting with a French lavender distiller at a conference in California before traveling to France to learn distillation. He purchased a 160-acre (65 ha) farm in St. Maries, Idaho, with his wife in the early 1990s, and Young Living was founded in 1993 in Riverton, Utah, with Gary as CEO, and incorporated in 1994. A second farm in Mona, Utah, was purchased in 1996.
In 1996, the company projected sales of between $8 and $10 million, and reported annual sales of more than $1 billion from 2015 and 2017.
Starting in 2000, Young ran the Young Life Research clinic in Springville, Utah. After settling a lawsuit in 2005, the clinic was closed, and he opened a clinic in Ecuador, practicing medicine and performing surgery there, over concerns from Young Living's COO, David Stirling. He also opened his first international farm in Ecuador in 2006. In 2010, they became the "first large commercial distillery" to distill essential oils from frankincense, and in 2014 their Highland Flats distillery "became the first automated, large-capacity, computerized steam distilling facility ... for essential oils".
In 2008, David Stirling was fired from the firm and founded the rival company doTerra, and in August 2013, Young Living filed suit against doTerra for theft of trade secrets, alleging that the company had recreated their production process illegally. Young Living lost the case in 2017, and in 2018, a judge ordered it to pay doTerra's legal fees amounting to $1.8 million. The companies also settled lawsuits around faked lab tests, false advertising, and theft of trade secrets, and withdrew their negative claims in relation to the purity of each other's products.
Young stepped down as CEO in 2015, and his third wife, Mary Young, assumed the role. The company moved their corporate operations to Lehi, Utah, in 2014, receiving tax breaks in order to expand their operations, and in 2017, started construction on their new corporate headquarters. Gary died in 2018.
Young Living employs a multi-level marketing model, recruiting "thousands of independent distributors who can sell directly to customers and earn commissions on sales to distributors recruited into a hierarchical network called 'downlines'". Although distributors can potentially make a profit from direct sales, more money is made by commissions through sales made by people who the distributors recruit. Distributors are categorized based on their sales: the lowest rank with the least sales are referred to as simply "Distributors", while at the top are the "Royal Crown Diamonds".
In 2017, the New Yorker reported that distributors are required by Young Living to make $100 of purchases per month to qualify for a commission. According to a public income statement from 2016, approximately 94% of Young Living's active members made less than a dollar, while less than one tenth of one percent (about one thousand Royal Crown Diamond distributors) made over a million dollars.
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Young Living
Young Living is a multi-level marketing company based in Lehi, Utah. Co-founded by D. Gary Young and Mary Young in 1993, it sells essential oils and other related products.
D. Gary Young gained an interest in alternative medicine after suffering a back injury in the early 1970s. Then, he became interested in essential oils after meeting with a French lavender distiller at a conference in California before traveling to France to learn distillation. He purchased a 160-acre (65 ha) farm in St. Maries, Idaho, with his wife in the early 1990s, and Young Living was founded in 1993 in Riverton, Utah, with Gary as CEO, and incorporated in 1994. A second farm in Mona, Utah, was purchased in 1996.
In 1996, the company projected sales of between $8 and $10 million, and reported annual sales of more than $1 billion from 2015 and 2017.
Starting in 2000, Young ran the Young Life Research clinic in Springville, Utah. After settling a lawsuit in 2005, the clinic was closed, and he opened a clinic in Ecuador, practicing medicine and performing surgery there, over concerns from Young Living's COO, David Stirling. He also opened his first international farm in Ecuador in 2006. In 2010, they became the "first large commercial distillery" to distill essential oils from frankincense, and in 2014 their Highland Flats distillery "became the first automated, large-capacity, computerized steam distilling facility ... for essential oils".
In 2008, David Stirling was fired from the firm and founded the rival company doTerra, and in August 2013, Young Living filed suit against doTerra for theft of trade secrets, alleging that the company had recreated their production process illegally. Young Living lost the case in 2017, and in 2018, a judge ordered it to pay doTerra's legal fees amounting to $1.8 million. The companies also settled lawsuits around faked lab tests, false advertising, and theft of trade secrets, and withdrew their negative claims in relation to the purity of each other's products.
Young stepped down as CEO in 2015, and his third wife, Mary Young, assumed the role. The company moved their corporate operations to Lehi, Utah, in 2014, receiving tax breaks in order to expand their operations, and in 2017, started construction on their new corporate headquarters. Gary died in 2018.
Young Living employs a multi-level marketing model, recruiting "thousands of independent distributors who can sell directly to customers and earn commissions on sales to distributors recruited into a hierarchical network called 'downlines'". Although distributors can potentially make a profit from direct sales, more money is made by commissions through sales made by people who the distributors recruit. Distributors are categorized based on their sales: the lowest rank with the least sales are referred to as simply "Distributors", while at the top are the "Royal Crown Diamonds".
In 2017, the New Yorker reported that distributors are required by Young Living to make $100 of purchases per month to qualify for a commission. According to a public income statement from 2016, approximately 94% of Young Living's active members made less than a dollar, while less than one tenth of one percent (about one thousand Royal Crown Diamond distributors) made over a million dollars.