Is Neora a scam? Or another pyramid scheme in disguise?

Is Neora a scam?

If you are a woman looking for an opportunity to earn money selling cosmetics then you must have probably come across Neora. Neora was previously known as Nerium. The company claims to offer commissions and perks to individuals who can market and sell their products. Does that sound interesting or familiar to you? Yes, it looks more like an MLM than a business opportunity. Let’s find out more about Neora. Is Neora a scam? Is it a pyramid scheme?

There are many such questions that need answers. I will tell you all about Neora and its MLM program. You will learn what is Neora MLM, its compensation plan, and the pros and cons of joining it.

New to MLM?

Read: What is MLM Business?

What is Neora?

Neora is a multilevel marketing firm that claims to produce cutting-edge, proprietary anti-aging skincare and health products. The company is headquartered in Dallas, Texas, and was launched in 2011 by its founder Jeff Olsen.

Neora is better known for its flagship product- Age-defying night cream through which it started its campaign. Neora expanded its presence in many different countries as well as many products to cater to various skincare and personal care needs.

What is Neora MLM?

Neora is a member of the Direct Selling Association and its primary way of doing business is network marketing. Here, the company offers an earning opportunity to people who can sell their products to earn commissions.

Neora MLM consultants are known as Brand Partners. The MLM program works on Neora Results + Perks objective wherein the brand partners are offered comprehensive training, marketing material, and guidance from experts to achieve maximum sales and commissions.

How does Neora MLM work?

To work with Neora MLM, you have to become a brand partner. If the opportunity interests you, go to the Neora website and click on the ‘Find your brand partner’ option and enter the search details.

Once enrolled, you will have to start your journey by purchasing a starter kit from 6 options. There are 4 essentials pack kits costing $199 with different product packs, 1 Holistic value kit costing $500, and 1 Ultimate Holistic value kit costing $1000.

Neora starter kit
Neora starter kit

The starter kits are offered with more than 50% discounted price from their retail price. There are personal commissions in the range of 20% to 35% plus free products, additional rewards, and a chance to learn new skills as you climb your consultant level.

Neora products

Neora products are mainly targeted at personal care solutions. They are sub-divided into skincare, hair care, and wellness. Here are a few of them that you can work with as its Brand Partner:

Neora products

Skincare: The skincare category has Neora’s flagship product- Age IQ night and day cream as well as cleansers, creams, face wash, etc. The products are helpful in taking care of all skin issues and preventing early aging.

Haircare: This category includes shampoos, conditioners, and hair masks. The products help revitalize and strengthen the hair roots and provide balanced nutrition to make them soft and shining.

Wellness: Wellness products consist of food supplements to keep the weight in check and provide necessary nutrients for physical energy and power. Supplements include powder, pills, and chews.

All the Neora products are backed by a 30-days money-back guarantee and return policy. Product-wise, there is nothing new to offer except for the specialized ingredients used in its flagship anti-aging product.

Are the Neora products worth their price? 

The quality of the product is well-appreciated by its users. The product Age IQ night cream has garnered more than 4 stars on Amazon which is quite good.

The pricing differentiated a lot on the original website and Amazon. This could be the reason for many complaints about Amazon delivering duplicate Neora products.

When compared to other products in the same category, Neora products are quite expensive. These are two drawbacks many consultants will face while selling Neora products. One is the availability of products on other platforms and the high pricing.

How to make money with Neora MLM? 

As usual, there are two options to make money with Neora or any other MLM:

  • Personal sales
  • Recruitment of members

You can make money in the form of personal commissions against the purchasing and selling price. Then there are additional perks and bonuses paid on the sales made by your team members.

Neora MLM compensation plan

The Neora (Nerium) compensation plan works in basically two ways through which you can earn money.

There are personal commissions on offer. Here, you can sell products from your starter kit pack at retail prices. The personal sales commissions are paid between 20%-35%.

There are bonuses and perks added when you achieve personal and group sales targets. I was not able to find Neora’s compensation plan, instead, it seems the company is still offering commissions based on the Nerium compensation plan.

This plan consists of 10-level team commissions that are paid between 1-5% on your team member’s product sales.

Neora compensation plan

Leadership commission starts with a 10% coaching commission that is calculated on your referred member’s earnings.

The higher levels you climb, the higher will be your commissions and additional perks. The requirement to maintain your positive active is 200 PQV and similarly, a certain level of group personal sales volume is also required to qualify for bonuses.

The compensation plan is very detailed and complicated. Here is a simple video explaining Neora’s compensation plan:

Can I make money with Neora MLM? 

It seems tough to make money with Neora MLM. This is based on the earning figures disclosed by Neora. Almost 70% of Neora consultants were not able to make any cash commissions.

The remaining 30% consultant’s average annual income was $1054 which is less than $100 a month excluding the expenses.

Neora income disclosure

Considering the expenses related to purchasing of products, any traveling, or promotional events your earnings may further decline.

The start-up cost is also on the higher side. On top of that, the cosmetics and personal care products market is over-competitive.

All in all, if you are expecting to make quick money in 4-5 figures then you are wrong. It may take years of hard work, dedication, and persistence to achieve financial success with Neora.

Not to forget the regular investments you may have to make to remain an active member of the Neora MLM program which purely relies on continuous sales and recruitment.

Is Neora a scam or a pyramid scheme? 

Neora is not a scam. It is a 100% legit company selling personal care and wellness products. The company has been in existence since 2011 which is against the trend of fading MLM companies within 5 years of their existence.

Neora offers compensation to its consultants based on their team member’s sales. The recruitment of members is required to maximize the earnings by selling products. Neora is not a pyramid scheme that solely relies on just recruitment of people without any physical products.

Neora lawsuits and controversies 

Neora has been targeted by FTC with illegal pyramid scheme allegations. The lawsuit claims that Neora offers false promises of earning life-changing income to its Brand Partners which actually contradicts the real earning figures.

There are also serious allegations on some of its ingredients (EHT) used to cure Alzheimer’s and Parkinson’s diseases which are false or unsubstantiated.

Source: FTC.gov

This could further harm the reputation and trust for Neora impacting its overall business structure until the lawsuit is settled.

Pros 

  • Quality of the products – Neora’s product quality and reviews surrounding them are very positive. Lots of users were happy using their products and the effective results it offers. This could be one of the plus points to make regular sales.
  • Money-back guarantee – Neora backs all its products by offering a 30-days money-back guarantee. It also ensures a smooth return of the products and refund of money within 30-days of purchase. Both the aspects are fruitful for customers to try and test Neora products in the first instance.
  • Training and support – The MLM program does offer good support and training to its brand partners. All the joining formalities, marketing materials, and sales training are taken care of by the existing Neora brand partner. This makes the onboarding of new consultants smooth and easier.
  • Decent commission rates – 30%+ commissions are decent enough to make good money. With consistent sales and regular recruitments, it is possible to make 3 figures of income with the Neora MLM program.

Cons

  • Expensive products – Leaving the quality aside, the products are expensive to a greater extent. Heavy pricing can affect the overall sales as there are many alternatives in the same category that offers superior products at a much lower cost.
  • High start-up cost – The joining cost is on the higher side. Spending more than $100 on starter kits as well as consistent investment on purchasing products to remain active may become harder in the long run.
  • Bigger competition – The market segment is another drawback. Cosmetics and wellness products are ever-evolving and this makes selling more difficult, especially direct selling. Same products are available on different online platforms with free shipping and delivery options.
  • Pyramid scheme in disguise – FTC allegations cannot be avoided. At the same time, Neora’s compensation plan does focus more on recruiting people to reward their consultants. If not official, Neora MLM does seem to operate its business model as a pyramid scheme in disguise.

Conclusion: Is Neora MLM recommended?

As we have seen above, Neora excels in providing quality products to its customers. It would have been great if the company sells them adopting conventional marketing methods instead of network marketing.

It has a few positives to take away. Support and guidance, and personal commissions can be alluring. But there are many things such as the product category and pricing, competition, and legal controversies for which Neora is better avoided.

It is hard to make money with Neora MLM as evident from its earnings disclosure. Personally, I do not recommend joining Neora MLM.

Instead, look for other online money-making options of lower investment and greater returns. If you cannot find one, then check out my recommendation below.

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