NewHealth operates in the nutritional supplement MLM niche.

The company is based out of California in the US and is headed up by Chairman Houn Simon Hsia.

I wasn’t able to pin down an exact date but NewHealth appears to have launched in 2002.

Prior to launching NewHealth, Hsia (right) was Chief Scientific Officer of Viva Life Science.

A 2007 Singapore High Court judgment reveals Hsia resigned from Viva Life in the late 1990s amid an ongoing legal dispute.

Read on for a full review of the NewHealth MLM opportunity.

NewHealth Products

NewHealth market their supplement range as nutraceuticals and nutracosmeceuticals.

The nutraceutical range spans thirty-four health and wellness supplements.

That’s far too many to list here individually, however NewHealth do provide a complete catalog on their website.

NewHealth’s nutracosmeceutical range is a bit more manageable and comes in at eleven products.

  • Shampoo – “deeply cleanses and hydrates hair and scalp”
  • Conditioner and Detangler – “intensely moisturizes and strengthens and protects hair. Leaves hair smooth, improves its body and manageability”
  • Facial Wash – “natural plant essences provide complete yet gentle cleansing”
  • Body Wash – “natural plant essences provide deep yet gentle cleansing”
  • NH Facial Cleanser Plus – “gentle cleansing formulation splashes away impurities, lipids and cosmetics and leaves skin soft, balanced and energized”
  • NH Toner Plus – “enriched with witch hazel, hyaluronic acid and aloe vera extracts helps minimizes the appearance of pores”
  • NH Day Cream Plus – “enriched with natural plant extracts such as green tea, aloe vera, allantoin, sorbitol, lavender, sage and rosemary”
  • NH Night Cream Plus – “enriched with natural plant extracts such as aloe vera, and witch hazel”
  • NH Peeling Mask Plus – “enriched with plant extracts helps penetrate the skin and retain moisture”
  • NH Eye Gel Plus – “Enriched with plant essences such as aloe vera, green tea and ginkgo extracts. Invigorates the delicate skin around the eyes and protects it from environmental damage”

Note that while NewHealth do provide a catalog on their website, retail pricing is not provided.

Since 2005 NewHealth’s products have been manufactured through Do Well Laboratories, which is also owned by Simon Hsia.

The NewHealth Compensation Plan

NewHealth affiliates are primarily paid when recruited downline affiliates purchase product each month.

To qualify for MLM commissions NewHealth affiliates must purchase at least 100 PV a month worth of product.

PV stands for “Personal Volume” and is sales volume generated by a NewHealth affiliate’s own purchases.

NewHealth Affiliate Ranks

There are nine affiliate ranks within the NewHealth compensation plan.

Along with their respective qualification criteria, they are as follows:

  • Associate – generate and maintain 500 GV over a rolling three-month period
  • Supervisor – generate and maintain 501 to 1500 GV over a rolling three-month period
  • Manager – generate and maintain 1501 to 3000 GV over a rolling three-month period
  • Director – generate and maintain 3001 or more GV over a rolling three-month period
  • Qualified Director – maintain Director rank with at least 800 GV in monthly volume
  • Gold Director – recruit and maintain at least one Qualified Director
  • Emerald Director – recruit and maintain at least three Qualified Directors
  • Diamond Director – recruit and maintain at least five Qualified Directors
  • Crown Diamond Director – recruit and maintain at least seven Qualified Directors

Note that for the Gold Director and higher ranks, if an affiliate has a personally recruited Director, any Qualified Director or higher affiliates under them will satisfy the personally recruited Qualified Director requirement for that leg.

GV stands for “Group Volume” and is PV generated by an affiliate’s purchases and that of their downline.

Rebate Commissions

NewHealth offers a rebate on personal purchases and that of personally recruited affiliates.

  • Associates receive an 5% rebate on their own purchases
  • Supervisors receive a 9% rebate on their own purchases and 4% on personally recruited Associates
  • Managers receive a 13% rebate on their own purchases, 8% on personally recruited Associates and 4% on Supervisors
  • Directors receive an 18% rebate on their own purchases, 13% on personally recruited Associates, 9% on Supervisors and 5% on Managers

Generational Bonus

NewHealth pays the Generational Bonus via 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):

If any level 1 affiliates recruit new affiliates, 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.

Generations are defined in each unilevel leg when a Qualified Director or higher ranked affiliate is found in that leg.

Once found, the Qualified Director or higher ranked affiliate caps off the first generation for that leg.

The second generation begins immediately after.

If a second Qualified Director or higher ranked affiliate exists deeper in the leg, they cap off the second generation and the third begins under them.

If no such affiliate exists, the second generation extends down the full depth of the leg.

Using this generational structure, NewHealth pays a Generation Bonus on up to six generations per unilevel leg.

  • Qualified Directors earn a 10% Generation Bonus on the first generation and 6% on the second
  • Gold Directors earn a 10% Generation Bonus on the first generation, 6% on the second and 5% on the third
  • Emerald Directors earn a 10% Generation Bonus on the first generation, 6% on the second, 5% on the third and 3% on the fourth
  • Diamond Directors earn a 10% Generation Bonus on the first generation, 6% on the second, 5% on the third, 3% on the fourth and 2% on the fifth
  • Crown Diamond Directors earn a 10% Generation Bonus on the first generation, 6% on the second, 5% on the third, 3% on the fourth, 2% on the fifth and 1% on the sixth

President Bonus

NewHealth take 5% of sales volume generated within the US and place it into the President Bonus pool.

The 5% President Bonus pool is split into two 2.5% smaller pools.

Each 2.5% smaller President Bonus pool has its own qualification:

  1. generate at least 2000 monthly GV and recruit a new affiliate each month = one share in the first 2.5% President Bonus Pool
  2. generate at least 3000 monthly GV = one share in the second 2.5% President Bonus Pool

Joining NewHealth

NewHealth affiliate membership is tied to a minimum 100 PV product order.

A minimum 200 PV order is required annually in order to maintain the membership.

Director and higher ranked NewHealth affiliates who wish to recruit outside of their own country must also pay a $25 fee.

Note that commission qualification volume excludes international volume.

Conclusion

NewHealth presents itself as an MLM opportunity in which new affiliates signup, are forced to purchase product and then primarily earn on recruited affiliates who do the same.

It is telling that retail sales are not mentioned anywhere in NewHealth’s compensation plan, and that retail pricing¬†is not provided to the general public.

Simply put: retail sales aren’t part of the NewHealth MLM opportunity; which is a problem, because an MLM company without retail sales operates as a pyramid scheme.

NewHealth’s compliance issues begin with newly recruited affiliates being forced to purchase product.

It continues with each affiliate being required to order 100 PV each month.

Rank qualifications are met by recruiting affiliates who also purchase monthly, resulting in a company with or close to 100% internal sales.

As we’ve seen in both the Vemma and Herbalife FTC cases, this is not how a legitimate MLM company operates.

A common counter-argument raised in defense of product-based pyramid schemes is that affiliates are buying product they’d be purchasing anyway.

Unfortunately when a company ties commission qualification to affiliate orders, this argument falls flat.

If affiliates truly were only interested in purchasing product, they should be able to sign up as preferred customers and obtain a discount.

I didn’t see anything on the NewHealth website or compensation plan that suggested that was a possibility.

Regardless, if everyone in NewHealth is an affiliate it’s a moot point.

As with all product-based pyramid schemes, if affiliate recruitment drops off so does sales volume.

Then, unless new affiliates are found, the business stalls and eventually collapses.

To that end NewHealth’s supplements become irrelevant within the context of their MLM opportunity.

Which is a shame, because there’s a pretty large selection of supplements on offer.

Whether they’re competitively priced or not though I can’t say, although probably not would be my guess.

Typically in product-based pyramid schemes products are priced to meet monthly purchase quotas as opposed to competitiveness.