Why is Neways getting an MLM makeover?

Neways is getting a sexy, sophisticated MLM makeover in the form of a new name.

But you can’t hide controversies that easily…especially when they include the illegal distributions of prescription drugs.

Have I been involved?

This video explains everything:


Make sense? Either way, here’s the full review on Neways.

Overview

Neways is headquartered in Springville, Utah, and was founded way back in 1987 by Thomas and Leslie Mower. The company was originally named “Images and Attitudes”, which is about as 80s sounding as giant bangs and magenta eyeshadow. Good thing they decided to change it in 1992.

The direct sales company sells a little bit of everything with a “chemically safe” spin and is operational in 29 countries with its force of over 100,000 distributors and 10 offices.

On November 8th, 2006, the company was acquired by Golden Gate Capital, the same San Francisco-based private equity firm that purchased Herbalife before taking them public. [1] [2]

Robert Conlee was named CEO in 2012, a former executive at Xango (CEO) and Nu Skin.

Interestingly enough, Robert Conlee is also CEO of Modere. [3]

Nope, he’s not heading two companies at once: Modere and Neways are the same company. Modere appears to be a rebranding operation, and Neways has been transitioning to this new company since 2013. A webpage on neways.com titles “We are Now Modere” redirects to the Modere website, stating “We’ve Transformed” with no mention of Neways. [4]

Likewise, the Neways website makes no mention of a transition to Modere. For whatever reason, they don’t want people to make the connection.

Perhaps it’s because of legal charges they’ve run into in the past…which include multiple counts of distributing illegal substances (more on that later) AND multiple counts of tax evasion and fraud.

In 2002, the original owners of Neways were forced to surrender control of the company after being charged with conspiracy and tax evasion…they failed to report over $3 million in commissions. Two  more charges followed in the same year, including “obstructing an IRS investigation.” [5]

How much does Neways cost?
The sign-on fee is only $19.95, and the annual renewal fee is $23.

However, the real costs are hidden in the monthly autoship requirements. In order to remain active and qualified for the compensation plan, you need to hit 150 PV per month. This means you get 150 PV worth of product shipped to you every single month, whether or not you can actually sell that much.

Products

Neways products are focused on healthiness and natural ingredients, and the company claims to “provide products that minimize people’s exposure to potentially controversial ingredients.”

Their products, which are “the perfect blend of science and nature”, fall in to several different categories:

  • Household products: cleaning products, car accessories, laundry, kitchen
  • Health and Wellness products: supplements, fitness and weight loss plans, nutritional products
  • Personal Care products: cosmetics, bath products, skincare, dental products, aromatherapy

In fact, the company states that their products avoid over 3,000 potentially harmful ingredients. Their team of scientists studies potential ingredients to ensure that they aren’t even acutely toxic to animals or humans. They avoid any ingredients that could be irritating, allergy-inducing, or carcinogenic.

Despite all the research they claim to do, Neways fails to provide any list of what those harmful ingredients they avoid are.

They do give a few hints: body and bath products never contain DEA, TEA, talc, sodium laurel sulfate, or phthalates, and nutritional products are screened for microbes, pesticides, and heavy metals.

They also require that all their manufacturers comply with FDA regulations. Furthermore, all suppliers must submit the following paperwork to Neways before the company will agree to work with them:

  • Standard Operating Procedures
  • Confirmation of Implementation of Procedures
  • Good Manufacturing Practices
  • Analytical Testing Methods
  • Confirmation of Stability
  • Confirmation of Shelf Life
  • Disclosure of Excipients
  • Certificates of Analysis

Despite all the talk of healthy products, the company has been involved in a number of scandals.

In 1993, they had to recal one of their weight loss products because it apparently contained large doses of a prescription diuretic…pretty messed up. [6]

Then, in 2004, they plead guilty to the illegal distribution of Human Growth Hormone (HGH). HGH is a drug that’s illegal to consume without a prescription, and is most often abused by athletes alongside steroids. Neways was putting it in their BioGevity formula, a formula designed to keep consumers young and energized.

The charges cost them around $2 million. [7] [8]

Benefits
Neways products claim to provide a range of benefits, including:

  • Improved health
  • Increased energy
  • Improved stamina
  • Anti-aging effects
  • Immunity boosting

Side Effects
There are no known side effects associated with current Neways products, however, there have been multiple charges against Neways in the past for putting everything from prescription diuretics to human growth hormone in their products. These illegal ingredients have a number of side effects.

Opportunity

There are a number of different ways to earn with Neways. Here are the main components of their compensation plan…

Retail Commissions

Commissions on personal sales are given out as the difference between your wholesale price and the product’s retail price. It comes out to 10%-20%, depending on your total orders for that month.

Fast Start Bonus

The Fast Start Bonus at Neways is a $50 bonus offered to distributors each time they recruit someone new. It’s also given out when distributors hit a certain number in personal sales within their first few months.

Team Commissions

When your downline orders product, you get a commission based on a unilevel structure. The plan pays out 10% commission to you four levels deep, and then 5% commission another two levels deep.

The company also offers Rank Advancement bonuses, a Monthly Selling Award, Breakout Bonus, Leadership Development Bonus, a Unilevel Bonus, and Revenue Sharing Pools.

Recap

The compensation plan is decent, and the products (aside from those involved in controversy) are generally well-liked. The company has been around since the 80s, too, so they’re somewhat established.

However, that established name means nothing now that they’re undergoing a complete rebranding. Between that and multiple run-ins with the law, they might as well be starting from scratch. Are you willing to take a chance?

Look, if it’s financial freedom you seek and you like automated ways to build passive income, there are better ways.

(and you can trash those old MLM habits, too)

Meet the Author

Jeremy Page

Jeremy Page teaches network marketers (company cheerleaders) how to build a real business. Far from a hater, he still LOLs at 3-way calls and building "downlines". If you like Monday morning conversations with your kids by the pool, you might like this.

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