Is Neora Nerium being shut down by the FTC?

Click image above to open new tab with full story By John E. Villafranco & Khouryanna DiPrima on January 6, 2020

Many people spend a lot of money each year to make their skin look rejuvenated and youthful, which is the main reason why skincare is one of the few multi-billion dollar industries currently. Some companies also pay you to promote and sell their range of skincare products, and by assisting other individuals with their skincare, you earn a passive income. If you're reading this article, chances are someone in network marketing is trying to recruit you into Neora, and you are trying to find out if the products are any good, as well as whether the business opportunity is a scam.

Well, if you would like to know the truth about this skincare company, keep reading this in-depth review about Neora. In this comprehensive review, we are going to share all the available information about the company and its products, including why FTC is threatening to shut down the company, and hopefully, the information will help you determine whether promoting or purchasing Neora is right for you or not.

Full disclosure: I am not a representative for Neora or any other Health and/or beauty Company, this review is for informational purposes only.

What is Neora?

Neora refers to a global marketing firm that deals with age-fighting products made through real science and cutting-edge research. It is a multi-level marketing business opportunity that assists you in making money by marketing and selling skincare and wellness products. The company was founded as Nerium International in 2011. Neora has shattered the industry records of sales while developing an incredibly strong client base in Latin American, North American, European, and Asia-Pacific markets.

According to the company website, Neora is devoted to providing an attractive product line based on cutting-edge science and offering its Independent Brand Partners an outstanding and life-changing business opportunity via relationship marketing.

Neora is run by Jeff Olson, the company’s CEO and Founder. In addition to Olson, the other two co-founders are also mentioned in the company’s site. They include Renee Olson, Jeff’s ex-wife, and Amber Olson Rourke, his daughter. While there is not a full company address on the website of Neora, the terms and conditions section indicate that its headquarters are located in Addison, Texas.

Why did Nerium change its name to Neora, Is Neora the same as Nerium?

The simple answer to this question is that the brand name Nerium International was not reflecting all that the skincare company had become anymore. When Nerium launched back in 2011, the name of the company was associated with a certain ingredient known as Nerium oleandrin extract, which was found in their first product. According to the company website, the company has currently expanded internationally to provide a broad range of all-inclusive innovative wellness and age-fighting skincare products that utilize advanced technology, and the name does not apply anymore.
Neora is the same as Nerium. Nerium International recently changed its brand name to Neora basically as part of an international re brand that it claims reflects the evolution of the company as a relationship marketer and its vision as an anti-aging industry leader.

Neora also repackaged all its products utilizing recyclable alternatives whenever possible and minimized the amount of packaging in each product to cut on its carbon footprint. Apart from the current lineup of Neora’s innovative wellness and skincare products, the company is also introducing new novel products containing exclusive ingredients.

According to Olson, Neora symbolizes new energy or a new aura and also represents a more broad direction that the firm is taking in its line of products and global expansion as well. The new brand name better describes what they are as a company currently, and where they expect to be in the next couple of years.

Neora’s product line

Neora’s products fall into two main categories, wellness, and skincare. The wellness products consist of vitamins and supplements, among other items, while the products that you will find in the skincare category consist of cleansers, moisturizers, and topical lotions, among others. Below is the present list of products in every category and the price known as the monthly auto-ship cost.

Skincare products

In this category, you will find acne pads containing salicylic acid and treatment lotions, sunblock, which is more than a standard sunblock because it’s healthy too, as well as prebiotic and probiotic lotion to keep the bacteria on your skin balanced and healthy, etc. The available Neora skincare products include:

Acne & Cleanser Combo: $74

• Age IQ Day Cream: $75

• Age IQ Night Cream: $90

• Age IQ Eye Serum: $60

• Age IQ Night and Day Combo: $140

• Age IQ Double-Cleansing Face Wash: $30

• Age IQ Invisi-Bloc Sunscreen Gel Broad Spectrum SPF 40: $44

• Night, Day, Cleanser Combo: $170

• Complexion Clearing Salicylic Acid Acne Treatment Pads: $44

• Eye-V Moisture Boost Hydrogel Patches: $40

• Eye Serum and Eye Patch Combo Pack: $100

• Firm Body Contour Cream: $80

• IllumaBoost Brightening and Shield: $60

• Prolistic Skin-Balancing Lotion with Probiotic Technology: $45

• Prolistic Lotion and Probiotic Powder Combo Pack: $90

Wellness products

Here you will find products for enhancing cognitive function, gut health, rejuvenation, and repair on a cellular level, some chew able to aid in balancing the circadian rhythm of the body, and many more. The products you will find in this category include:

EHT Brain Formula: $60

• Prolistic Pre and Probiotic Plus Vitamins: $45

• Youth Factor Superfood and Antioxidant Boost Powder: $45

• Youth Factor Complete Vitality Complex: $45

• Wellness Chew Sleep Formula: $40

• Wellness Chew Energy Formula: $40

As you can see, Neora has quite an extensive range of anti-aging products, especially when dealing with your skin health. Also, the company does not skimp out on the product ingredients since their entire product offerings have a long ingredients list, which appears on the labels as one big paragraph that you might not want to read or go through.

Product Sets

Apart from the individual combo packs and products, you can also purchase or even sell product sets if you sign up for the business opportunity, which comprises a group of products, but they are quite expensive. As anti-aging goes, the products should improve skin health without a doubt if you have not been using good skincare products. Also, Neora has a challenge known as the 90-day challenge, where the company gives out prizes to individuals who display the best outcomes after using their product offerings for 90 days.

How to join Neora

With the Neora’s business opportunity, you can purportedly take control of your success and time, enjoy a compensation package with high-income potential, and live your life on your terms. To join the business opportunity offered by Neora, you will first have to buy a starter pack/ kit, which is known as a “business in a box.” The kit includes:

A customized e-commerce website

• Digital marketing tools

• Marketing materials

• Online training

• Customer service

• Order fulfillment, so affiliates don't have to purchase and store inventory

Neora has various levels of membership, which range in upfront fees of 49.95 dollars to 1000 dollars. These membership levels include Basic Kit, Starter Pack, Builder Pack, and Premier Builder Pack. Let’s look at each one of these options briefly.

1. Basic starter kit: $49.95

With this kit you will get:

• Online training

• Marketing materials

2. Starter pack: $500

As a starter pack member, you will get:

• Online training

• Marketing materials

• 13 Neora products, with a retail value of $950.95

3. Builder pack: $750

As a Builder pack member, you will get:

Online training

• Marketing materials

• 25 Neora products, with a retail value of $1342

4. Premium builder pack: $1000

Members who join Premium builder pack get:

• Online training

• Marketing materials

• 32 Neora products with a retail worth of 1874 dollars

How is NutriCellix that launches on 1 January 2020 associated with Neora?

Neora has been among the leading companies dealing with a wide range of wellness and anti-aging skincare products. Each of the patented ingredients used in making their products is meant to make the user feel and look good. NutriCellix will be a company dealing with products that assist people in losing weight and maintaining their intended looks as well. Generally, their product line is meant to influence the consumer’s DNA. These products will make them feel better, just like Neora products. Therefore, the two companies are related in that once any user utilizes their products, their looks are enhanced and affected on equal measures.

Neora files suit challenging FTC's attempt to change Direct Selling laws
Neora files suit challenging FTC's attempt to change Direct Selling laws
FTC alleges Neora, formerly known as Nerium, operates as an illegal pyramid scheme
FTC alleges Neora, formerly known as Nerium, operates as an illegal pyramid scheme

Why is the FTC shutting down Neora?

The Federal Trade Commission filed a lawsuit recently claiming that Neora, a popular wellness and skincare firm is an illegitimate pyramid scheme. Neora then filed suit challenging FTC's attempt to change Direct Selling laws.

(Click on either image to read the details about each lawsuit)

Neora allegedly made some false claims that the supplements it offers in the wellness category of products could prevent a brain disease brought about by repeated concussions known as chronic traumatic encephalopathy. The company also allegedly stated that one of its wellness supplements was endorsed by the Michael Fox Foundation for Parkinson’s disease prevention, which is not true.

Neora, formerly known as Nerium, sells supplements and anti-aging face creams through multilevel marketing, in which individuals sell products to their family members and friends and can earn some amount of money for recruiting other sellers. Multi-level marketing companies are legal, but according to the FTC, the business model of Neora has already drifted into a form of a pyramid scheme. People make more money recruiting some new vendors than they do by selling real products.

As stated by the lawsuit, only around 5% of individuals who became vendors for Neora company ever made any cash at all. New sellers were required to purchase starter kits ranging from 500 dollars to1000 dollars of products, which immediately put them in debts that a huge number of sellers never recover from. A seller would get 25% off the retail value of the products if they purchased an auto-shipped monthly inventory to sell. That means that to make a profit margin, they were required to agree to the company auto-shipment. Most people would end up paying for more merchandise than they could sell that month.

Neora products are currently available for sale directly on Amazon and the official website as well, which means consumers do not have to go through brand partner vendors to get Neora products. That makes things even more difficult for the vendors.

Vendors also recruit more new sellers, and, as stated in the lawsuit, these vendors are incentivized by greater commissions by recruiting a huge downline of sellers to whom they would sell the products of the company. The FTC says that this triangular structure, plus the exaggerated claims of the company about the amount of income a vendor could earn, are some of the signs of pyramid schemes and a direct violation of the Federal Trade Commission’s Act.

Neora’s compensation plan

Just like any other multi-level marketing companies, Neora has various ranks to offer based on the specific qualifications that you provide. The following are ranks you will find in Neora:

Active Brand Partners

• Brand Partner Plus

• Senior Brand Partners

• Elite Brand Partners

• Premier Brand Partners

• Director

• Team Directors

• Elite Directors

• Premier Directors

• Area Marketing Directors

• Regional Marketing Directors

• National Marketing Directors

• Silver National Marketing Directors

• Gold National Marketing Directors

• Platinum National Marketing Directors

• International Marketing Directors

• Silver International Marketing Directors

• Gold International Marketing Directors

As a Brand Partner with Neora, there are 13 different ways to earn money, but they all fall into two main categories. These two main categories include:

Earning money by selling products

• Earning money by recruiting other brand partners

1. Earning money by selling products

The following are the ways you can use to earn money through product sales in Neora.

• Retails Sales

Here, you’ll earn by buying products at a brand partner’s price and then selling them at its retail cost. The difference between the retail price and the partner price will be the commission you get.

• Personal Sales Commission

Personal Sales Commissions are typically based on the amounts of purchases made by all your customers at any given month. To start earning this commission, the minimum monthly volume of sales you need is $300, and you will start at approximately 5% commissions.

• PC First Order Bonus

Once you enroll a new customer, you’ll be paid this type bonus depending on the order amount of their first purchase. The bonus is generally a 20% commission of the price of the order price.

• Personal PC Bonus

A personal PC bonus is given after a certain number of customers make product orders of at least a specific amount each month.

You will get a $50 bonus if you’ve at least six customers buying at least 55 Qualifying Volume (QV) each for a sum of 500 Personal Qualifying Volume (PQV).

– You will earn a $150 bonus if you’ve at least nine customers buying at least 55 Qualifying Volume for a sum of 800 PQV.

2. How to earn money by recruiting other brand partners

Recruiting other Brand Partners is one of the most common ways to earn via Neora's compensation plan. You will be expected to build and grow your team and assist the Brand Partners you recruit to build their teams, leading to more customer sales and more recruitment. Here are the bonuses you will earn by recruiting other brand partners.

Fast Start Bonus: You will receive this bonus in your first month as the brand partner who recruited you rose to the rank of an Elite Brand Partner. The company’s brand partner who enrolled you will get $75, and you will get a $150 bonus.

• Director Bonus: This bonus is almost similar to Fast Bonus but, in the first two months, you have to reach the Director rank to get $200. However, if it took you three months to get to that rank, you’ll only receive $100.

• Neora 3UR Free: In this bonus category, you will get a free monthly order that will amount to $140 if you sustain an active order and three customers with active orders as well.

• Power of 5: All Brand partners who’ll be able to garner 500 QV, will get a 5% commission

• Momentum Bonus: As you advance the ranks as a brand partner, you will receive another 3% on the team commissions’ CV Bonus.

• Team PC Bonus: Apart from your advancing the ranks, you will also have to assist your downlines in improving theirs because every time they go higher, that will be an extra commission for you as well.

• Lifestyle Bonus: The Neora lifestyle bonus is given to the brand partners who can get to the rank Premier Director and above. They’ll receive a monthly bonus that’ll range between $150 and $100,000.

• Luxury Car Bonus: You will get a monthly bonus of 500 dollars for a luxurious car if you can reach the rank of Elite Director or above and generate 15,000 GCV. However, if you reach the rank of a National Marketing Director, your luxury car bonus will be $750.

• Check Match Bonus: The people who will benefit from this bonus are the upper-level brand partners. They will get commissions each time their down lines generate more points.

• Infinity Bonus: This bonus is meant for those in the rank of Silver National Marketing Directors. They will receive a certain percentage of the organization’s CV.

• NMD Generation Bonus: If a brand partner qualifies a Platinum National Director, they’ll receive more bonuses from their downlines.

Summary & Final Thoughts

Full disclosure: I am not a representative for Neora or any other Health and/or beauty Company, this review is for informational purposes only.

In my opinion, Neora is a legit business opportunity and not a scam. There are several downsides to it, but I would not call it a scam. When I take a close look at the firm itself, the compensation plan and product line, from what I see, this company is not a pyramid scheme or scam operation. Neora is typically selling what looks like high-quality products that appeal to many people. The line of products offered by Neora is pretty impressive. The company has a wide range of products and ingredients that attack any signs of aging from different angles, and again, the products appear to come in good quality.

The business opportunity provided by Neora is also a different story. Building your team of brand partners and profiting from all their efforts can be pretty enticing, but of course, it’s often tainted as being a better business opportunity than it is. However, there is an earning potential within their business opportunity, which makes it incredibly worthwhile for anybody willing to invest their effort and time in the company. If you’re able to reach the rankings high enough, which only a few individuals can do, then you will be able to live the life of your dreams without any financial worries.

I also like the fact that Neora is a global company. That means that you can become a customer and also a distributor in various countries across the world, and not just the U. S. Such countries include Canada, Mexico, New Zealand, and Australia, among others. That allows you to grow and advance your business internationally.

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However, just like most multi-level marketing companies, Neora is a bit complicated. One of the good things about this skincare and wellness company is that it seems to have a well-rounded and fair compensation plan when compared to some other companies in the same industry. The other good thing about Neora is its strong focus, especially on online marketing.

Many multi-level marketing companies will only train people on how you can get individuals to recruit to make sales for them, which do not get you far. Nonetheless, Neora appears to put a lot of emphasis on influencing the web to generate sales and leads, which is a great thing for the Brand Partners of the company.

The hard reality is that the multi-level business world is always a struggle. So make sure you know what you are getting into if you decide to join. The Brand Partners trying to enroll you will make it sound pretty amazing because they’re going to make some money from you, but building your team of brand partners is not a walk in the park.

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