Is NewULife a pyramid scheme? This article will help you answer that question, plus a host of others. I’m going to take a deep dive into this company and see what it costs to join, what the compensation plan is like, if the product is legit and if it’s worth it to join.
Since NewULife is a fairly new multi-level marketing (MLM) company, you may be thinking that you should get in before it gets too competitive.
But, not so fast.
Make sure to read the article below and take a close look at the information on their flagship product because it’s been touted as something that it’s actually not.
Let’s get into it.
What is NewULife?
NewULife was started in 2017 by Alexy Goldstein and has over 17,000 independent distributors. It is a multi-level marketing (MLM) company where distributors can earn a commission on sales of the product as well as a percentage of sales from anyone they bring onto their team (their downline).
The company is based out of California and its main product is a “revolutionary FDA-registered homeopathic” product called Somaderm gel. I’m putting all of that in quotes because that’s a description I read of the product, and because I’m being sarcastic. I’ll explain why a little later.
This is a transdermal human growth hormone (HGH) gel that apparently has a whole host of benefits (according to the NewULife website), such as:
- maintain, build and repair healthy tissue
- decrease recovery time and repair muscle tissue after exercise
- help build muscle mass
- boost metabolism
- burn excess fat
- improve the quality and appearance of the skin
They also have a couple of Keto powdered drink mixes for sale on the site.
From what I can tell, the Keto diet drinks aren’t nearly as popular as the Somaderm.
How Much Does it Cost to Join NewULife?
There are three different kits you can buy into when you join NewULife:
- Starter Kit = $199 (Contains one bottle of Somaderm, 1 year membership and 1 year of your website)
- Pro Pack = $559 (Contains 5 bottles of Somaderm, 1 year membership and 1 year of your website)
- Executive Pack = $999 (Contains 10 bottles of Somaderm, 1 year membership and 1 year of your website)
This screenshot was taken from a presentation of the NewULife opportunity by a 7-figure earner in the company. He also goes over the compensation plan, so I’ll post the link to the presentation in the next section.
You also need to have 140PV (personal volume) each month to remain active. This PV can come from sales that you make, or from your own personal orders.
NewULife Compensation Plan
I’m seriously starting to hate going over these compensation plans. After looking at ones for Emris International, Life Leadership, and many others, my brain is getting scrambled. They seem to be purposely confusing. I bet no one in these companies understands them fully.
But I’ll do my best to break the NewULife compensation plan down. Here’s the presentation link that I mentioned above. He goes over the compensation plan starting at 19:25.
The first thing he says about the compensation plan in the video is that the FTC will like them because they have a large retail customer base. I would love to see proof of this because from what I’ve seen with just about every MLM, there are very little outside retail customers.
My guess is that he’s including distributors as customers because they’re really the only ones buying these types of overpriced products.
Here are the ways that you can earn:
1. Retail Commissions
- 0-20 customers = $35 per customer (per month)
- 20+ customers = $45 per customer (per month)
2. Build a Team
Here are the ranks:
- Associate (generate 140PV over a rolling 5-week period)
- Promoter (generate 140PV over a rolling 5-week period and bring on 2 Associates)
- Coordinator (5,000 lesser leg volume – make $100 – $300 per week)
- Coach (10,000 lesser leg volume – make $300 – $1000 per week)
- Life Coach (20,000 lesser leg volume – make $1000 – $2500 per week)
- Ambassador (50,000 lesser leg volume – make $2500 – $5000 per week)
- Diamond Ambassador (100,000 lesser leg volume – make $3500 – $50,000 per week and up)
Coordinators & Coaches get a $750 Monthly Leadership Bonus.
Ambassadors & Diamond Ambassadors get a $1500 Monthly Leadership Bonus.
3. Check Matching Bonus
I’m just going to grab a screen shot from the presentation I posted above.
Apparently this is good.
NewULife Income Disclosure
Unfortunately, there doesn’t seem to be any income disclosure available for NewULife. Too bad because I would really liked to have seen that.
They are a fairly new company, so it’s possible there will be one next year. I wouldn’t be too hopeful about the numbers though.
I think I say this in every MLM article I post (because it’s important)…according to this report posted on the FTC’s website, more than 99% of people lose money in an MLM.
Positive Reviews and Complaints
I have seen plenty of both positive reviews and complaints for NewULife. First, let’s go over some positive reviews. Some of these reviewers have said:
- The Somaderm gel changed my life
- Great experience with the people and products
- Customer service is great
- Getting sleep and energy benefits
Some NewULife complaints include:
- Canceled orders aren’t canceling and orders are still being shipped out
- This is a terrible product
- I can’t get a refund
- Rip off scam
- Fake doctors promote the product
You can read all the reviews on the BBB website. Here’s one that I found there that was…high energy:
When it comes to an MLM product, it’s always a little hard to tell if the positive reviews are from actual customers or distributors trying to sell the product.
In most cases, you’re looking at a distributor because there likely aren’t very many customers outside of the pyramid. Oops, did I say pyramid? Am I letting the cat out of the bag?
Is NewULife a Pyramid Scheme?
In my opinion, almost all MLMs border on being a pyramid scheme, and NewULife is no different. Of course, I’m not the FTC and it’s up to them to legally decide if something is a pyramid scheme or not.
The reason NewULife isn’t technically a pyramid scheme is because they have a product that they can sell retail to customers. However, because there is a big focus on recruiting and that’s where most of the money is made, this starts heading into pyramid scheme territory.
The other issue with this particular MLM is the product. In my opinion, from what I’ve read, the product is a complete sham. But we’ll go over that more in a minute.
- Fairly low start-up cost
- Some people say the product works
- Alexy tried to sell this same product before
- Monthly recurring orders will run you about $140
- There’s a 99% chance you’ll lose money
- Overpriced products mean that most people won’t be interested in buying
- Focus on making money via recruiting
- The product seems to be a sham
Let’s Talk About Somaderm Gel
As I mentioned, Alexy tried to sell this same HGH gel before with another company called Strike First Nutrition. It doesn’t seem like it did very well there, so what’s the next best alternative? Add some fancy marketing words and create a network marketing company, of course!
And now we have Somaderm gel. Somaderm gel’s main active ingredient is somatropin, which is a synthetic growth hormone. Because HGH is available by prescription only, NewULife has diluted the active ingredient down enough to allow it to be available without a prescription.
OK. Sounds good, right?
The somatropin is diluted 30x. What I’ve learned this means is that they take 1 part HGH and dilute it with 10 parts water. Then they take 1 part of that and dilute it with 10 parts water. Then 1 part of that and dilute it with 10 parts water. They do this 30 times in total.
This means there isn’t any active ingredient in the product because it’s been diluted down to nothing. (From what I’ve read, this is how homeopathic remedies are created.)
Now, let’s talk about how it’s “FDA-registered”. This really doesn’t mean anything. It’s not approved by the FDA, which you’ll see on their website.
Somaderm is registered with the FDA, and you can look it up by it’s National Drug Code (NDC) by going here. Click the drop down that says NDC Code and then type Somaderm’s number, which is: 61877-0005-1.
When you hit search, you’ll see that Somaderm is listed as “Unapproved homeopathic”. I’m not sure why or how the FDA listing is a benefit, but I do know that people trying to sell this product will use that marketing phrase to their advantage.
Could the other botanicals and ingredients in the product be causing people to have such positive results? Sure, I suppose. Is it worth $170 a bottle? I bet you can find great results with less expensive things such as walks outside and a good diet.
All I know is that this $180 product is being sold as HGH, but there’s not any HGH in it.
An Alternative to NewULife
I know how tempting it is to join and MLM, especially when it’s newer and you can “get in on the ground floor.” It seems like all your wildest dreams will come true and you’ll be making big bucks so easily from the comfort of your home.
I have been there, I get it.
Unfortunately, that’s just not the reality.
Almost everyone loses money in an MLM, and there’s a 99% chance you will be no different. Does that mean all hope is lost and you should give up the idea of working from home for yourself?
In fact, I highly recommend you do that if that’s something that really interests you. But, I recommend affiliate marketing over MLMs.
With affiliate marketing, there’s no:
- Hard sales
- Home parties
- Online parties
- Monthly minimums
- Overpriced products
- Uplines or downlines
You can promote anything that you like and earn a commission. Let me show you how it all works.
Is NewULife a pyramid scheme? Technically it’s not, but it wouldn’t surprise me if the FTC came after them someday for being one because it seems that the focus is on recruiting others into the business.
Is it worth it to join NewULife? That’s up to you. I hope I gave you enough information to make an informed choice. I personally think you’re going to have a hard time convincing people to buy a $180 bottle of gel that doesn’t actually contain any HGH in it.
If you like the idea of working for yourself from home, then why not consider affiliate marketing instead? You can promote things that you’re passionate about, help others solve problems and answer questions and make money without suckering anyone into something. Click here to learn more about affiliate marketing and how it works.