Multimarketing Question About Young Living Essential Oils

Updated on April 16, 2014
M.G. asks from Flower Mound, TX
14 answers

My friend had an Essential Oils party by a Young Living representative. I was online trying to place my order when a message popped up saying I needed to enter my social security number. When I asked my friend why they needed my s.s. #, she said b/c in case someone places an order with my ID, I would make commission and have to pay taxes. Even though that makes sense, I do not feel comfortable giving out my s.s. # just to order essential oils! I have no desire to host a party or make a commission off anyone. I can order it w/o my s.s.#, but it would cost a lot more b/c I would not be considered a wholesale customer. The thought of giving out my s.s.# makes me uneasy. Does anyone agree with me, or am I overreacting?

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J.S.

answers from Richland on

So shocking that the in house predatory MLM salesperson defends this scam. Of course they pay more than corporate because no brick and mortar would stay in business long with a model that ignores the actual needs of the customer, encourages deception, and pushes sales above all. There is a reason most stores don't work on commission anymore, people will not voluntarily go where there is high pressure sales.

Enter your friend trying to make a living from home. Yeah, that will get you in.

Anyway *steps off soapbox*

I found this blog, yes a blog. Apparently this woman used the less expensive oils but researched the expensive ones. She has a section titled, why I will not buy essential oils from MLM companies...

http://www.thehippyhomemaker.com/which-essential-oil-comp...

Apparently the cheaper ones are more pure. They are only cheaper because they don't have to pay predators to push the junk down people's throat.

So no, you are not overreacting. It is a scam

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S.H.

answers from Honolulu on

Just don't place your order.
Or order it, with your friend placing your order.

The thing is, ONLY if you are a Rep., who is doing this as a business and signed up as a Rep., you do NOT have to put in your SSN#.
They are scamming you... in a sneaky way... to get your SSN# so that you are then a "Representative" who sells their product.
But it seems, per your post, you are only, a customer who is buying stuff from the party.

And, WHY would ANYONE else, place an order with your I.D.??? And then you have to pay taxes and make a commission?
You are only a customer, buying stuff from her.

They are data-mining... getting personal info. from paying customers. And this is very, sneaky.

You are NOT a Rep of or for that company.
You are NOT signed up as one.
You are NOT, a Host of party Rep.
You are just a customer buying stuff, from your friend and your friend, is a Rep. NOT you.

Don't buy from them.
These are dishonest business practices.

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T.F.

answers from Dallas on

Red flag and run from that MLM. They are scamming you to sign up as a rep which also gives your "friend" extra benefits!!!

You are under NO obligation to give your SS never to anyone except your employer and medical professional.

If any site asks for my SS number I block any access they have to me.

Sounds like your "friend" sucked you in unknowingly to her MLM... Sadly some MLM'rs do that ( not all but most)

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M.W.

answers from San Francisco on

You are not overreacting. This is not right. You don't need to provide a S.S. you are merely purchasing an order...not signing up to be a wholesaler.

I wouldn't do it. I would simply, and nicely tell my friend that if she would like my order then she can place the order for me and I will write her the check.

Heck to the NO...I would not give out my S.S. number to buy oils. Go with your gut..don't take the risk simply for some oils you can buy through other online sites.

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A.A.

answers from Tulsa on

I wouldn't give out my SSN for something like an online purchase. No way. I'd be suspicious of any website that requested it, as well.

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K.F.

answers from Salinas on

Your friend may benefit from you being set up as a retailer even if you don't host a party. That's how MLM's work. That's why I can't stand them.

I would never give out my SS# in order to buy something.

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D.B.

answers from Boston on

If you have signed up for a discount program, that could be the same as signing up as a distributor/rep, in which case you are technically "opening a business" and must provide your SS#. You say you want to be "a wholesale customer" - that's a distributor! That is someone who is buying it wholesale in order to sell retail to others. So the company is absolutely right to ask that info from you!

The company would need that SSN to send you a 1099 form for tax purposes and report it to the IRS, like any other employer. That's the right thing to do. However, you do not have to do that to pay full retail - as you yourself admit; it's about price to you. But honestly, why would a company give you a discount if you weren't planning to resell product? I pay retail at the grocery store, but they bought the stuff wholesale. Any store or business works that way.

My concern is that your friend did not tell you this up front - unless you missed this detail, which is easy to do when you are concentrating on which products you want to buy. Sounds like she may not be particularly well-trained by her sponsor. And you should not be signing up without her helping you, frankly - that should be a service she provides.

There is absolutely nothing wrong with MLM companies in general - in fact, they pay more money to their reps than corporate America does, if they are run right. There are only about 200 companies in the Direct Selling Association, which is an invitation-only, scrutinize-the-books watchdog group for direct sales. Go to the website and click "membership" to find out if they are a part of it. If they are not, find out whether they are just a brand new company and haven't had the opportunity to be evaluated/accepted (less than a year old, maybe a little more) or whether they've never been or don't want to be a member (or worse, whether they've been kicked out).

In any case, it sounds like this is being done properly - if you can be a "wholesale customer" without a monthly minimum, and if you are able to purchase anything you want (rather than a pre-set starter package), those are good signs. Make sure there is a minimum 30 day guarantee on the products if you are a customer, and a business guarantee as a "wholesale customer" (read: "distributor) such as a 1-year 90% buyback of anything you buy but don't open. That's the sign of a great company. Make sure there is free training on a regular basis for those who want to become distributors as well.

If you just want a discount, then you should be willing to give your SSN because the company is doing things right. Let me know if you have any questions about this sort of thing.

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M.F.

answers from Phoenix on

If you want to be a wholesale customer, your SS# is required. If you want to use the system to get a discount, they need your information.
If you don't want to give them your SS#, then order as a regular customer and relinquish your wholesale discount.
Seems simple enough.

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ღ.7.

answers from Omaha on

Just have your friend order the oils for you with her discount.
They need a ss#or tax ID for tax purposes, since enrolling as a wholesale member gives you the opportunity to make commissions.
If you don't feel comfortable with that I'm sure you can find someone who'll order them for you!

***ETA. Wait... are they asking for your SS# just to place an order as a customer? Or to become a wholesale member?****

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M.C.

answers from Dallas on

In my experience with Young Living, they certainly seem to be an honest, legitimate company, which has been in business for years. I see no scam here. If you want the wholesale price, you sign up as a representative, but you have no obligation to sell to anyone else unless you wish...you can still always get the wholesale price. However, if you do not want to give your SSN, which I totally understand, then either pay retail or have your friend add your order to hers.

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K.C.

answers from Los Angeles on

I agree - there is absolutely no reason for them to need your SSN. There are plenty of other ways to secure your order and verify your identity. Absolutely do not give the info. I used to work for a different home sales company and we never asked for that type of information.

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C.D.

answers from Atlanta on

You are not over reacting at all. I would Not give my s.s. # to this or anyone. I just wouldn't buy anything if I was asked for this. I might even write an email to young living too and let them know how you feel and why. This is infringement. I'm sure you are not the only one.

Don't do it.

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G.B.

answers from Oklahoma City on

As far as I understand it you cannot be required to give your SS# to anyone. They can have your DL# all they want. That's why they took our SS#'s off them. I don't give mine out. I just say no thanks if they don't want my business.

My friend sells the oils and she's never had me go online to do an order, she just does it for me. Not everyone has credit cards so they have to be able to let you order without one. I'd go through her and use cash or something.

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M.H.

answers from Atlanta on

Maybe yes, maybe no. Is your friend new to this company. Maybe she doesn't know all the ins and outs yet. I'm not a fan of multilevel companies but they are legal and some have some good product. (Don't confuse multilevel companies with pyramid scams...they ARE different)

Saying that, I would ask her. She may make money when you sign up, but if you get the benefit of a cheaper product, it might be a good thing for the both of you. If you don't want to provide your social, then simply don't. If she's really your friend, talk to her.

God bless,
M.

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