There have been several direct selling companies on the skin care and wellness sector to date and choosing the best amongst them is indeed not easy when everybody claims to be the best.
Neora is one of these companies and is our focus on this honest review.
Despite legal battles with FTC, Neora is making a stand and is refusing to be bullied. Is Neora really true to its statements and claims?
Can it be the case that the company is a scam? On the business aspect, can one actually make money with Neora? Know our honest and detailed findings in this review.
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Is Neora A Scam Or Can You Actually Make Money With This MLM Company?
Neora is a skin care and cosmetic direct selling company with its headquarter in Texas, USA.
It was previously known as Nerium International and was rebranded in the first half of 2019.
Read my full review of Nerium International here.
The founder and Chief Executive Officer of the company is Jeff Olson.
He led the company from 2011 up to the present. He is a motivational speaker, trainer, author and the person behind Live Happy.
The company is previously accredited with Better Business Bureau but is revoked in December 2019 due to the legal actions it faced before the Federal Trade Commission on issues of alleged illegal pyramid scheme operations and false advertisement claims.
Up to this day, Neora seems to be in continuous legal battle with FTC and have allotted a section of its website for this .
The products are available worldwide particularly in Canada, Mexico, South Korea, Australia, Japan, HongKong, Colombia, New Zealand and Singapore where the company has international offices.
In 2017, the company received an award for Direct Selling Association 2017 Top 20.
Neora also gives back to the community through its Neora Ripple Foundation.
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The Neora Products
Neora products are classified into skin care, wellness and hair care.
Neora has a complete line of products for age-fighting facial skin care, sunscreen and body contour and firming.
Prices provided below refer to monthly autoship and one-time purchase prices.
· Complexion Clearing Salicylic Acid Acne Treatment Pads $44/59
· Age IQ® Invisi-Bloc® Sunscreen Gel Broad Spectrum SPF 40 $44/$59
· Age IQ® Night Cream $90/$120
· Age IQ® Day Cream $75/$100
· Age IQ® Double-Cleansing Face Wash $31/$41
· Age IQ® Eye Serum $60/$80
· Eye-V® Moisture Boost Hydrogel Patches $40/$55
· IllumaBoost® Brightening & Shield $60/$80
· Firm Body Contour Cream $80/$106
This product line consists of dietary supplement powder packets and capsules as well as chewables.
These products are pitching for specific health benefit claims but with disclaimer that they have not been evaluated by Food and Drug Administration (FDA).
· Prolistic® Pre & Probiotic Plus Vitamins $47/$60
· EHT® Brain Formula $60/$80
- This supplement is said to help support brain wellness.
· Youth Factor® Complete Vitality Complex $47/$60
· Youth Factor® Superfood & Antioxidant* Boost Powder $47/$60
- Youth Factor products are said to be formulated to help with defending the body against free radical, support cellular health and improves the immune system.
· Wellness Chews Energy Formula $40/$53
· Wellness Chews Sleep Formula $40/$53
ProLuxe™ Hair Care System consists of rebalancing shampoo, conditioner, hair mask and scalp treatment. Neora uses exclusive ingredients to address the differing needs of human hair and for best results.
These products are said to be vegan, cruelty-free, dermatologist tested, DEA free, Gluten free, Non GMO, paraben free, phthalate free, silicone free, SLS/SLES free and color safe.
This set costs US$155 if purchased under automatic monthly delivery and US$249 for one-time purchase.
How To Join Neora
To get started with Neora, one has to choose amongst the following packages:
· Premier Builder Pack, 32 products - $1000 - actual retail value is $1874
· Builder Pack, 25 products - $750 - actual retail value is $1342
· Starter Pack, 13 products - $500 - actual retail value is $950.95
· Basic Kit - $49.95
All these starter packs come with marketing and training materials.
The Neora Compensation Plan
Here are the ways to earn money with Neora. There are no direct link to the company's compensation plan on its website but I found one on this page.
When one joins Neora, he/she will be called a Brand Partner (BP).
Also, here are some important acronyms that we will be using to discuss Neora's compensation plan:
· ADO - Auto-Delivery Order
· ADV - Auto Delivery Volume
· CV - Commissionable Volume
· GQV - Group Qualifying Volume
· GV - Group Volume
· PQV - Personal Qualifying Volume
· LQV - Leadership Qualifying Volume
· QV - Qualifying Volume
· PC - Preferred Customer
Neora's Fast Start Bonus
This applies to new Brand Partners on their first month with Neora that is until the last day of the next calendar month from the time of joining.
A bonus of $150 for the brand partner and $75 for his/her upline is awarded if Elite BP rank personal volume and qualification are achieve and maintained (240PQV or 80 ADV and 3 active BP) in this period.
BPs with active ADO order of at least 80 QV, have at least 3 preferred customers each with fully paid ADOs and a total of 210 QV from all customers in a month are qualified to earn 3UR free product credits that can be applied to next month's ADO order.
Remaining active as BP in Neora depends on rank with minimum of 120 PQV/80 ADV. Retail profit can be earned by selling in person or when your customer purchases products from your personalized website.
Personal Sales Commissions
In addition to retail commissions, BPs are paid with personal sales commissions on the products they sell to their customers with the following percentage per sales bracket:
· $300-1499 - 5%
· $1500-2999 - 10%
· $3000+ - 15%
First Order Bonus
BP earns a first order bonus when a new personally enrolled preferred customer purchases his/her first order. This is 20% of the first order price after taxes and shipping.
Personal Preferred Customer Bonus
In addition to 3UR free bonus explained above, BPs are rewarded more if they enrolled more PCs. Total rewards are presented in the table below.
Team PC Bonus
When a BP encourages his/her team to build a preferred customer base then he/she is entitled for even more rewards.
When a BP advances to Director rank on his/her first 3 months of enrollment, a one-time director bonus will be paid amounting to $200 if the rank advancement is reached in the 1st or 2nd month and $100 bonus if the rank advancement happens in the 3rd month.
Power 5 Bonus
Every time a BP accumulates 5 personal BP enrollments with pack values of 500 QV, 750 QV or 1000 QV, he/she will be rewarded with 5% bonus of the total price of the packs.
To be able to maximize commissions from building a team, the following rank advancement must be understood.
· Active BP - 120PQV/80ADV
· BP Plus - 120PQV/80ADV, 1 active leg
· Senior BP - 120PQV/80ADV, 150LQV (50%MVR), 500GQV, 2 active legs
· Elite BP - 180PQV/80ADV, 250LQV (50%MVR), 1200GQV, 3 active legs
· Premier BP - 240PQV/80ADV, 500LQV (50%MVR), 2000GQV, 3 active legs
· Director - 320PQV/80ADV, 750LQV (50%MVR), 3500GQV, 3 active legs
· Team Director - 400PQV/80ADV, 2000LQV (50%MVR), 6000GQV, 3 active legs
· Elite Director - 400PQV/150ADV, 7000LQV (40%MVR), 11000GQV, 3 active legs
· Premier Director - 400PQV/150ADV, 12000LQV (40%MVR), 20000GQV, 3 active legs
· Area Marketing Director - 400PQV/150ADV, 20000LQV (30%MVR), 40000GQV, 4 active legs
· Regional Marketing Director - 400PQV/150ADV, 35000LQV (30%MVR), 70000GQV, 4 active legs
· National Marketing Director - 400PQV/150ADV, 60000LQV (30%MVR), 125000GQV, 4 active legs
· Silver National Marketing Director - 400PQV/150ADV, 120000LQV (30%MVR), 255000GQV, 2AMD + legs & 2 Elite Director + Legs
· Gold National Marketing Director - 400PQV/150ADV, 180000LQV (30%MVR), 637500GQV, 2RMD + legs & 3 Elite Director + Legs
· Platinum National Marketing Director - 400PQV/150ADV, 240000LQV (30%MVR), 1275000GQV, 2NMD + legs & 3 Elite Director + Legs
· International Marketing Director - 400PQV/150ADV, 300000LQV (20%MVR), 3000000GQV, 2 Silver NMD + legs & 3 Elite Director + Legs
· Silver International Marketing Director - 400PQV/150ADV, 600000LQV (20%MVR), 6000000GQV, 2 Gold NMD + legs & 3 Elite Director + Legs
· Gold International Marketing Director - 400PQV/150ADV, 1200000LQV (20%MVR), 12000000GQV, 2 Plat NMD + legs & 3 Elite Director + Legs
Team Commissions and Momentum Bonus
This is paid to Elite BP or higher. The higher one's rank is the more generations he/she will be paid in commissions.
Also, for the first 3 full months after rank advancement, 3% of CV in addition to the team commissions will be paid to qualified BP.
This bonus is paid monthly for BP on qualified ranks. This amount may vary when Neora sets a cap.
· Premier Director - $150
· Area Marketing Director -$250
· Regional Marketing Director - $400
· National Marketing Director - $1200
· Silver National Marketing Director - $3000
· Gold National Marketing Director - $7000
· Platinum National Marketing Director - $15000
· International Marketing Director - $30000
· Silver International Marketing Director - $60000
· Gold International Marketing Director - $100000
Luxury Car Bonus
Qualified BPs can be rewarded with the following luxury car bonus/cash bonus as follows:
This is paid to Elite Director or higher based on the team commissions paid to team directors or higher in one's downline.
This bonus is paid to silver national marketing director or higher and is computed from 0.5% to 1% of the CV of one's organization.
NMD Generation Bonus
This is given to platinum national marketing director or higher and is computed on CV from one's NMD generations.
How Much Can You earn With Neora?
According to Neora's income disclosure statement posted here, the following are the relevant income related information of US Brand Partners in the period of February 2019 - January 2020.
· 39985 total active US BPs
· 30.6% of active US BPs earned cash commissions
· 69.4% of active US BPs have zero commissions
· $1054 is the average annual gross cash earnings of active US BPs
· 24.2% of active US BPs received free products and this is excluded from the computation of average annual income amount across US BPs
Based on this information, a US BP has a 30.6% chance of getting an income with Neora.
Since about 69.4% of active US BPs have zero earnings, this means that the median income is also zero.
So, even though Neora did not show a chart for its BPs income, it is mathematically logical to conclude that there are actually few high income earners amongst the US active BPs hence pulling the average income upwards despite the fact that 69.4% are not earning at all.
In my opinion, zero median income in an MLM company is already bad news. Even the average income is provided, not knowing the distribution of income for those with actual earnings is a crucial information that needs to be shared but Neora opt not to.
There is this focus on rewarding auto delivery orders or recruiting preferred customers as well. I must say that the focus of Neora's compensation plan is rewarding recruitment rather than product sales.
BPs are required to make 120 PQV or 80 ADV to remain active. While to avail of the immediate bonuses BPs need to achieve Elite BP rank, recruit preferred customers or encourage purchase of startup packs with product inclusions.
Also, team commissions increase as BPs advance in rank and we already know that to advance in ranks, one has to recruit and build his/her team.
So, going back to our question, yes one has about 30.6% chance of earning money from Neora. As to how much can you earn and if that earning would be worth your money and time investment, unfortunately Neora made no effort to show this on its income disclosure statement.
If an average gross income of $1054 annually is acceptable to you then you may want to consider but we all know this can never be enough to replace anybody’s full time income.
Let's carry on and have a quick look at the Pros and Cons of Neora.
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The Pros Of Neora
· Neora's presentation is impressive on its website.
· It is a member of Direct Selling Association.
· It has a worldwide presence, and science-developed products.
The Cons Of Neora
· The company is relatively new and is recently rebranded.
· It has been legally attacked by FTC for having the attributes of pyramid scheme which also result to the revocation of the company's accreditation with Better Business Bureau.
· Looking at the product reviews in Amazon, I must say the products do not have established following yet with highest number of reviews on Neora Age IQ Eye Serum at 248 with rating of 3.3 out of 5. The next most popular product of the brand, the Age IQ Day Cream only gets 44 reviews with 3.7 out of 5.
· Starting a business costs $49.95 which is quite reasonable but to qualify for commissions, personal sales volume is required.
· Compensation plan is not readily available in the website.
· Although retail sales is rewarded, there is still a greater reward on encouraging auto deliveries and recruitment.
· Neora's income disclosure statement lacks the crucial information and does not show the real picture of earnings in the organization. The median and average income amount amongst US BPs only shows that the business opportunity is not profitable.
Conclusion - Is Neora A Scam Or Can You Actually Make Money
I think it is clear that Neora is not a scam. It is indeed a legitimate and established company with an international presence.
However, on the business side of things, we cannot give our same approval to Neora. We think that it is more of the usual MLM recruitment scheme than a true direct sales company.
Yes, one can be monetary rewarded depending on one's goals, skills and commitment however we cannot just ignore Neora's income disclosure statement.
Unfortunately for Neora, in all angles the figures speak volume that Neora's opportunity is not in any way a promising bet to average business builders if not most.
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