Modere Review: Neways autoship focus retained
Although you won’t find any mention of Neways on Modere’s website, Neways was sold off in 2013 and Modere is its latest incarnation.
As revealed on an offsite prelaunch page,
Modere is the total transformation of a 26-year-old, $300 million a year network marketing (NM) company named Neways.
Neways was acquired in 2013 by Z Capital (ZCap.net). This transformation includes completely new ownership, management, branding, styling, pricing and growth strategies as well as a new name, business model and compensation plan.
Neways U.S.A. totally transformed to Modere at its launch in February 2014, and Neways will similarly transform to Modere in all 28 international markets by 2015.
Incorrectly identified as part of Modere’s “new management team” is CEO Robert Conlee (right). Conlee retains this position from Neways and has held the position since 2012.
Prior to his appointment as Neways CEO, Conlee held executive roles in Xango (CEO) and Nu Skin (President, North Asia and Japan).
Despite launching in February, at the time of publication no information about Modere’s management appears on the company’s website. A listed address in Utah suggests Modere has retained what was once Neways head office.
Read on for a full review of the Modere MLM business opportunity.
The Modere Product Line
Whereas Neways might have had a clinical feel to it, in part due to two run-ins with the FDA (using human growth hormone (2004) and “dangerous amounts of furosemide” (1993)), Modere seek to rebrand the products as “sexy”:
Modere is safe made sexy. We offer a category-leading portfolio of lifestyle essentials—personal care, health & wellness, and household products that are equal parts safe, high performing, and beautifully designed.
As far as I can tell though, it’s pretty much the same diverse product offering Neways were pushing under the brand “Modere”.
As with Neways there are too many products to list individually here, however a brief summary is as follows:
- personal care – hair, body and mouth
- health and wellness – anti-aging, general nutrition, active health, targeted health and weight management
- household care – kitchen, cleaning and laundry
As with Neways, I’d recommend visiting the Modere website for a full catalogue of their product line. All product listings are readily available on the Modere website through an online storefront, complete with retail pricing.
The Modere Compensation Plan
The Modere compensation plan offers a unique splitting of retail and downline affiliate volume, split between two individual unilevel structures.
Various performance-based bonuses are also on offer, along with two revenue-sharing pool that shares in can be qualified for.
Modere Affiliate Membership Ranks
There are ten affiliate membership ranks within the Modere compensation plan.
Along with their respective qualification criteria, they are as follows:
- Social Marketing Consultant 1 – maintain 100 PV a month, 500 GV a month (down three levels of recruitment) and recruit at least one affiliate
- Social Marketing Consultant 2 – maintain 100 PV a month, 1000 GV a month (down three levels of recruitment) and recruit at least one affiliate
- Social Marketing Consultant 3 – maintain 100 PV a month, 2000 GV a month (down three levels of recruitment) and recruit at least one affiliate
- Social Marketing Team Leader – maintain 150 PV a month and 3000 GV a month (down three levels of recruitment), recruit at least one affiliate and maintain a total monthly GV of 3,000 (max 1500 from any one unilevel leg)
- Social Marketing Director 1 – maintain 150 PV a month and 3000 GV a month (down three levels of recruitment), recruit and maintain at least one Social Marketing Team Leader ranked affiliate and maintain a total monthly GV of 12,000 (max 7000 from any one unilevel leg)
- Social Marketing Director 2 – maintain 150 PV a month and 3000 GV a month (down three levels of recruitment), recruit and maintain at least two Social Marketing Team Leader ranked affiliates and maintain a total monthly GV of 25,000 (max 15,000 from any one unilevel leg)
- Social Marketing Director 3 – maintain 150 PV a month and 3000 GV a month (down three levels of recruitment), recruit and maintain at least three Social Marketing Team Leader ranked affiliates and maintain a total monthly GV of 50,000 (max 35,000 from any one unilevel leg)
- Elite Social Marketer 1 – maintain 150 PV a month and 3000 GV a month (down three levels of recruitment), recruit and maintain at least three Social Marketing Team Leader ranked affiliates and maintain a total monthly GV of 100,000 (max 70,000 from any one unilevel leg)
- Elite Social Marketer 2 – maintain 150 PV a month and 3000 GV a month (down three levels of recruitment), recruit and maintain at least three Social Marketing Team Leader ranked affiliates and maintain a total monthly GV of 200,000 (max 140,000 from any one unilevel leg)
- Elite Social Marketer 3 – maintain 150 PV a month and 3000 GV a month (down three levels of recruitment), recruit and maintain at least three Social Marketing Team Leader ranked affiliates and maintain a total monthly GV of 400,000 (max 280,000 from any one unilevel leg)
Note that PV stands for “Personal Volume”, and includes an affiliate’s own purchases and that of their retail customers.
GV stands for “Group Volume” and included sales volume generated by an affiliate’s downline.
Rank Advancement Bonus
Modere pay out a Rank Advancement Bonus at the Social Marketing Team Leader and Elite Social Marketer 1 affiliate ranks.
The Social Marketing Team Leader bonus is paid out over three months ($250 each month), assuming an affiliate maintains the rank during this time.
In a similar fashion, when an affiliate first qualifies as an Elite Social Marketer 1, they are paid $4000. If they maintain this rank over the next two months, they are paid an additional $4000 each month for a total of $12,000.
If an affiliate does not qualify in the second month, they can still receive a third month bonus by re-qualifying before the start of the third month.
A matching bonus is also available to Social Marketing Team Leader ranked affiliates. This bonus pays out a 100% match ($250) on the three Rank Advancement Bonus payments made to newly qualified Social Marketing Team Leader affiliates.
No matching bonus is paid out on the Elite Social Marketer 1 Rank Advancement Bonus.
Retail commissions paid out by Modere range from 10% to 20%.
Each retail customer order generates points in the customer unilevel, with affiliates able to earn a bonus percentage on these points.
How much of a bonus percentage is paid out depends on how many total points have been generated by retail customer orders that month:
- less than 300 points = 10%
- between 300 and 499 points = 15%
- 500 points and over 20%
Additionally, at least 100 PV is required to qualify for the 15% and 20% commission rates.
Monthly Selling Reward
For affiliates who maintain at least 100 PV in sales volume a month, a Monthly Selling Reward cash bonus is available.
The bonus is paid out based out an affiliate’s retail sales volume and acquired customers:
- 1000 PV in retail sales and 5 customers = $100
- 2000 PV in retail sales volume and 10 customers = $250
- 3000 PV in retail sales volume and 15 customers = $500
- 5000 PV in retail sales volume and 25 customers = $750
- 7000 PV in retail sales volume and 35 customers = $1000
If an affiliate receives a Monthly Selling Reward bonus for three consecutive months, they are also paid an additional bonus equal to the lowest bonus paid during those three months.
Eg. If an affiliate qualifies at 2000 PV ($250) in one month, 5000 PV ($750) in the next and then $3000 PV ($500) in the third, they are paid a $250 bonus in that third month.
Modere’s Breakout Bonus acts as a defacto recruitment commission. When an affiliate recruits a new affiliate, they receive a 25% bonus on any product orders made within the newly recruited affiliate’s first 30 days with the company.
A 10% commission is also paid out to the recruting affiliate’s upline.
Any customers acquired by a Modere affiliate also generate the above commission percentages, tracked via Customer Points.
Residual Unilevel Commissions (affiliate volume)
Residual commissions in Modere are paid using a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
In turn, if any level 1 affiliates go on to recruit new affiliates of their own, they are placed on level 2 of the original affiliate’s unilevel team. If any level 2 affiliates recruit new affiliates they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Modere cap payable unilevel levels at eight, with how many levels an affiliate is paid out on determined by their affiliate membership rank:
- Social Marketing Consultant 1 – 3% on level 1
- Social Marketing Consultant 2 – 3% on levels 1 and 2
- Social Marketing Consultant 3 – 4% on levels 1 and 2
- Social Marketing Team Leader – 5% on levels 1 to 3
- Social Marketing Director 1 – 5% on levels 1 to 3 and 3% on level 4
- Social Marketing Director 2 – 5% on levels 1 to 3 and 3% on levels 4 and 5
- Social Marketing Director 3 – 5% on levels 1 to 3, 4% on level 4 and 3% on levels 5 and 6
- Elite Social Marketer 1 – 5% on levels 1 to 3, 4% on levels 4 and 5 and 3% on levels 6 and 7
- Elite Social Marketer 2 – 5% on levels 1 to 4, 4% on levels 5 to 7 and 3% on level 8
- Elite Social Marketer 3 – 5% on levels 1 to 5 and 4% on levels 6 to 8
Residual Unilevel Commissions (retail volume)
Modere split sales volume generated by affiliates. Affiliate volume is paid out via the unilevel described above, and retail customer volume is paid out via a separate unilevel.
This unilevel functions in the same manner as the affiliate volume unilevel, however Modere cap commissions at five levels rather than eight.
Again, how many levels an affiliate can earn down depends on their Modere affiliate membership rank:
- Social Marketing Consultant 1 – 3% on level 1
- Social Marketing Consultant 2 – 3% on levels 1 and 2
- Social Marketing Consultant 3 – 4% on levels 1 and 2
- Social Marketing Team Leader – 5% on levels 1 to 3
- Social Marketing Director 1 and 2 – 5% on levels 1 to 3 and 3% on level 4
- Social Marketing Director 3 and Elite Social Marketer 1 – 5% on levels 1 to 3 and 4% on level 4
- Elite Social Marketer 2 and 3 – 5% on levels 1 to 3, 4% on level 4 and 3% on level 5
Referred to as a “Dynamic Bonus”, Modere pay Social Marketing Team Leader and Director ranked affiliates a 5% bonus on their unilevel level with the most volume.
Note that only this bonus only applies to the first three unilevel levels of an affiliate’s unilevel team (paid out on both the customer and affiliate unilevels).
A second unilevel bonus, referred to as the “4 & More Builder Bonus” pays affiliates a percentage bonus on unilevel volume generated by their fourth and onwards strongest unilevel legs.
The three most strongest legs (volume wise) are discounted, with the bonus paid out on the fourth and onwards legs as follows:
- Social Marketing Team Leader – 2%
- Social Marketing Team Directors (1 – 3) – 3%
- Elite Social Marketers (1 – 3) – 4%
Note that this percentage bonus is paid down the full length of the unilevel leg, irrespective of how many levels deep it runs.
Leadership Development Bonus
The Leadership Development Bonus is a generational bonus available to Social Marketing Director and Elite Social Marketer ranked affiliates.
The bonus pays out on the unilevel and Breakout bonuses paid to affiliates within a generation.
A generation is defined as all affiliates in any given unilevel leg, up until another affiliate of the same or higher rank as the affiliate qualfying.
Eg. If you are an Elite Social Marketer 1 ranked affiliate, your unilevel generations in each leg continue until another Elite Social Marketer 1 or higher ranked affiliate is found.
Using this model Social Marketing Director ranked affiliate qualify for a bonus on one generation, and Elite Social Marketer affiliates on two.
Percentages paid out are fixed, dependent on an affiliate’s membership rank:
- Social Marketing Team Leader – 10%
- Social Marketing Director 1 – 12%
- Social Marketing Director 2 – 14%
- Social Marketing Director 3 – 16%
- Elite Social Marketer 1 – 18%
- Elite Social Marketer 2 – 20%
- Elite Social Marketer 3 – 22%
Note that these percentages apply to the volume being paid out on, not to the affiliate qualifying for the commission.
Eg. Even if an affiliate is at the Elite Social Marketer 3 rank, they will still only ever be paid 10% on the volume generated by Social Marketing Team Leaders.
As such, the maximum percentage pay out is that of the rank of the affiliate qualifying for the commission (payable only on the volume of the affiliate who ends the generation (they are at the same or a higher rank as the qualifying affiliate)).
There are two revenue-sharing pools in Modere, with affiliates able to qualify for shares in them as follows:
Weekly Activity Pool
In order to qualify for sharesi n the Weekly Activity Pool, a Modere affiliate must purchase 300 PV worth of product when they sign up, be a customer who purchased a Beauty Box ($79) and then purchase 250 PV worth of product as an affiliate, or generate at least 2000 monthly retail PV and have 10 retail customers.
Shares in the Weekly Activity Pools are earnt either by signing up 8 customers who each spend $500 or more, or by recruiting three new affiliates.
Both these qualification criteria can be met over a rolling four week period.
Finally, a monthly minimum of 100 PV (either via autoship or retail sales) is also required.
Note that Modere do not specify how much money is put into the Weekly Activity Pool, other than to “guarantee” a $5000 minimum.
Leadership Activity Pool
Open to Social Marketing Team Leader or higher ranked affiliates, one share in the Leadership Activity Pool are earnt when a recruited affiliate anywhere in their downline qualifies for shares in the Weekly Activity Pool.
Modere don’t explicitly clarify this, but I believe shares are awarded per affiliate who qualifies for shares in the Weekly Activity Pool, not per share earnt in the pool itself.
Finally, an affiliate must themselves have qualified for at least one share in the Weekly Activity Pool to qualify for a payment int he Leadership Activity Pool.
Modere do not specify how much money they put into the Leadership Activity Pool.
Basic affiliate membership to Modere is $29.95.
Official marketing material however recommends affiliates “purchase a Builder Collection” for $399.
No further information is provided on the Modere website, other than that the purchase of a Builder Collection qualifies an affiliate to ‘earn from the entire Modere compensation plan‘.
In reviewing Modere, my primary interest was seeing what the company had done to distance itself from the heavily autoship focused compensation plan Neways used.
Despite the offering of retail commissions, most of the Neways compensation plan tilted towards recruiting affiliates, slapping them on monthly autoship and then encouraging them to recruit affiliates who do the same.
To that end, I was pleased to see the changes that have been made to the way retail commissions are paid out in Modere.
I thought the separation of retail volume was a nice touch, although why it’s only restricted to five levels versus the eight offered on affiliate volume was a little strange.
The Monthly Selling Bonus was particularly well done, with “retail only” bonuses in MLM compensation plans being extremely rare (and welcomed!).
Regarding the rest of the compensation plan, volume is paid out as you’d expect with a unilevel plan and there’s no real surprises.
Two points caused me to question just how serious Modere are about retail however.
The first was the observation of retail customer requirements built into the affiliate ranks. Brilliant. This is something we don’t see enough of and ensures affiliates are focused on retail.
Then I read the asterisked small print:
*The lifetime customer count will go into effect at a future date. For a limited time this requirement is being waived.
Modere launched in late 2013… and almost a year later retail customer requirements are still being waived?
At best something like this, if it has to be waived at all, should only be for a month tops. Anything more than that and you venture into “we’ll get around to it one day…” territory.
The fact that Modere still waive these requirements indicates retail viability problems with their products (I haven’t been able to ascertain why Neways was sold off…).
My second point of contention is Modere’s own affiliate marketing material.
Described as the way to “start right” with the company (subtely implying that any other way is “wrong”), here’s how Modere recommend affiliates join:
Start Right: When joining you’ll want to (a) purchase the Builder Collection (or $300 point order) for $399, and (b) set up your monthly SmartShip of at least $100 points.
This will allow you earn from the entire Modere Compensation Plan, including Promoter, Builder and Leader Shares from the Revenue Sharing Pool.
Smartship = autoship.
Despite the name-change and rebranding, it seemed Neways was still about recruiting autoship affiliates.
The paragraph below the one quoted above only served to cement this notion:
Even more importantly, the way you “start” sets the precedent that your entire team will tend to duplicate forever.
Every person you ever sponsor will usually ask “how did YOU start?” and 70-80% of the time they will start the same way.
Because you only “start” one time, you have to answer that question the same way even if it’s 10 or 20 years from now! Also, the people you sponsor will get asked the same question, with the same result, etc., etc.
Consequently, it is critically important that you start the way you want your entire team to start forever.
So sign up by paying $399 and pay your $100 a month autoship order… just so you can recruit others and recommend they do the same when they ask you how you became an Modere affiliate.
And according to Modere, this is all “critucally important”.
With Neways autoship focused culture clearly surviving the branding transition, unfortunately it seems the attempts at bolstering retail volume within the compensation plan appear to be merely superficial.
And things only got worse when I stumbled across Modere’s revenue-sharing pools.
I stay stumbled across because I’d just finished going over and breaking down the official Modere compensation plan document. I thought I was done, and so began to look for information on joining costs.
It was there that I ran into mention about “revenue sharing pools”.
Huh? I’ve just gone over the official compensation document and there was no mention of revenue sharing anywhere. What are they talking about?
A quick google search revealed a separate document, detailing Modere’s revenue sharing pools.
The fact that this is kept separate from the main compensation plan information was revealing in itself.
For starters, 100 PV a month is required just to participate (conveniently the minimum recommend autoship amount). Then you can either waste your time acquiring 8 retail customers or just recruit three affiliates.
Why on Earth the share allocation is so heavily stacked towards affiliate recruitment I have no idea. But it’s yet another poor reflection of a company that insists on keeping affiliate recruitment and autoship front and center.
Where the money used to fund the pools comes from wasn’t disclosed either. If it’s from affiliate-funds, then coupled with straight recruitment to gain shares – there’s a serious compliance problem with this part of the compensation plan.
That the possibility of retail activity within Modere exists isn’t being questioned, any more than it was in Neways, the problem as I see it though is that incentive wise things are too heavily stacked on recruitment + autoship.
Again, as Modere themselves state, sign up for $399 and $100 monthly autoship and ‘this will allow you earn from the entire Modere compensation plan‘.
By recruiting others who do the same, they in turn gain full access to the compensation plan – and all the while nothing is being sold to retail customers.
To give Modere affiliates the benefit of the doubt. An initial quick check as to whether they meet their monthly PV requirement via retail sales or autoship will reveal where their focus lies.
If you want to dig deeper, ask them for their retail unilevel volume for the month prior and compare it to their affiliate unilevel volume.
Personally all I’m seeing is Neways with a definite attempt at retail improvement, gutted by customer requirement waivers and a compensation plan that still rewards affiliates too heavily for autoship recruitment and nothing else.
Approach with caution.