Is Nerium International a Scam? A Possible Pyramid Scheme?
If you are looking to join Nerium International as a distributor there are a few things that you should be aware of before you get into it (or not). A lot of what you may hear about this business opportunity is very misleading and this is due to the recruitment process that goes on.
If you are wondering is Nerium International a scam or even possibly a pyramid scheme then you are in the right place. In this short review I’ll be going over some of the things that the company doesn’t want you to know and that you might not have been told.
By the way, I am in no way affiliated with this company. This review comes from unbiased eyes.
Nerium Business Opportunity Review
- Name: Nerium International
- Website: nerium.com
- Cost to Join: $99.95 minimum
- Recommended?: For some people, more on this
To be clear here, this review is on the business opportunity that Nerium offers, not the products.
Nerium is built around skin care. Their rise to fame came from one of their products called Age-Defying Night Creme, which is supposed to rejuvenate your skin and make you look younger.
This business opperates on a direct sales model, which is the reason you are hear reading this. This means that anyone can sign up to become what they call a “Brand Partner” and can make money selling products as a home-based business.
They also have a mlm compensation structure which means that you can make money by recruiting people. And this is the part where people question the legitimacy of this business and even wonder if it is a pyramid scheme.
Cost To Join
In order to join in on this business opportunity you will first have to take out your wallet and buy a starter kit. They have 3 kits you can choose from that are priced as follows…
- Success Pack – $499.95
- Includes 5 bottles of Nerium AD
- Premier Success Pack – $999.95
- Includes 12 bottles of Nerium AD
- Brand Partner Launch Kit – $99.95
The Brand Partner Launch Kit is the cheapest and only contains marketing materials, training, self development materials, etc. to help give you a kickstart and get your home-based business up off the ground. The other 2 kits contain these marketing materials but also contain some products.
The 2 Ways to Make Money
There are 2 main ways in which you can make money in this business. These include customer sales, and recruitment of new distributors.
This is the obvious. When you sell Nerium products directly to customers you get immediate profits. You see, you will be purchasing these products at wholesale prices and selling them at a markup, keeping the difference.
You will also be able to get Customer Acquisition Bonuses that range from $16-$60 depending on your rank. You get these when you enroll new preferred customers.
When a preferred customer reorders you will be able to also get 10-25% commissions depending on your rank.
When you recruit other Brand Partners into this business you can instantly get paid from the starter pack that they buy, along with the starter pack that anyone on your team buys or upgrades to.
You can get up to 10% commissions of the monthly earnings of your best team members. And you can get override commissions from your team.
This recruitment part of the business is where the mlm structure is at. And this mlm structure is key to making good money. You have to recruit people and take advantage of this to be successful.
Because this is so important I’m going to go into how it all works in a little more detail.
The MLM Side of It
There are a couple different mlm structures at play here.
The people that you personally recruit into the business as Brand Partners are known as your level 1. This is is called a uni-level structure and can be infinitely wide, meaning you can keep recruiting and adding more and more people to it. An illustration of this structure is below..
You can earn up to 10% of these level 1 people’s monthly profits. But this is limited to only one level deep.
However, you can earn commissions down more levels. When you first recruit someone in, you have 60 days in which you can place them on your “Placement Tree”. There are 3 legs to this tree and it can keep growing downward… Which means a lot of money can trickle up to you.
Earning team commissions are going to be your big money maker here. And I don’t want to get too into this. All you need to know is that when you start out you will only earn commissions on levels 1 and 2, meaning the people you personally recruit in and the people that they recruit in.
But once you move up the ranks you can commissions on as much as 10 levels beneath you. To move up the ranks its all about increasing team sales volume, which basically means you need to recruit more people.
Sound Like a Pyramid Scheme?
Is Nerium a pyramid scheme? It sure sounds like it doesn’t it?
For this to be considered a pyramid scheme it would have to be a product-based pyramid scheme, which would mean that it would be overly dependent upon recruitment of new Brand Partners rather than sales to the general public for total revenue.
So is Nerium too dependent on recruitment? Honestly, I would say that yes they are and that they definitely lean towards the more shady side of mlm’s.
While you do have to maintain a certain retail sale level to remain active in this business, there is no doubt that they really push you to go out and recruit more people in.
The incentive to recruit is high, whereas the incentive to make your own personal sales is not. So its no wonder that people go crazy recruiting in this business.
However, there is still a great deal of emphasis placed on going out and getting retail customers to buy. And in a 2012 income disclosure Nerium actually stated that retail and Preferred Customers actually made up 70% of their members. I know that’s old but its the newest I could find.
Related Reading: Difference Between MLM’s & Pyramid Schemes
Final Thoughts & What I Recommend
While I don’t think Nerium is a scam, I do believe they lean a little more to the shady side of the mlm business compared to the many other mlm’s I have looked into.
The bottom line with mlm’s like this is that if you want to make good money then you have to be a recruitment machine. You have to take full advantage of that mlm compensation structure and get as many people beneath you as possible.
The problem is that this is not easy and that mlm’s have very high turnover rates due to their difficulty. If you don’t have a salesperson type personality and think it would be hard for you to recruit, then this might not be a good option for you.
But if you do have the salesperson type personality and are into the products that Nerium sells, then by all means go for this opportunity.
If you are like me and are just not the salesperson type and don’t think a recruitment style business like this is right for you.. and you want another option for making money with your own business, you should take a peek at how I make a living working online (link below). I work for myself online and really enjoy what I do. In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂