NewULife operate in the health and wellness MLM niche and are based out of California in the US.
The company is headed up founder Alex Goldstein.
Goldstein’s NewULife corporate bio cites him as a
certified homeopath, herbalist, respected iridologist, nutritional consultant (and) creator of many exclusive formulas.
The bio goes on to claim Goldstein took over the family business at age 18.
Store owner by day, college student by night, Goldstein mastered and expanded his retail business.
Soon, he began researching the products he was selling and wondered if he could develop his own line to higher standards and answer particular customer needs.
After he graduated, Goldstein “went back to school” and became a Certified Homeopath and Certified Herbalist.
His new comprehensive knowledge of the human body, combined with insights gained from customer interactions, highlighted gaps in the marketplace.
This led him to launch Natural Life Foods, a line of natural, premium nutraceutical products the company retails online and in their California stores.
The beginning of what sprouted the rest of the phenomenal quality companies to follow.
One of those companies in NewULife, launched by Goldstein earlier this year.
Read on for a full review of the NewULife MLM opportunity.
NewULife market a flagship gel containing “homeopathic human growth hormone”.
NewULife’s homeopathic HGH gel is the only transdermal, FDA registered human growth hormone product available without a prescription.
The molecular breakdown of HGH found in HGH gel is a synthetic USP human growth hormone (somatropin).
“Expected benefits” of using HGH gel provided on the NewULife website include:
- improved stamina
- increased energy
- improved sleep
- vivid dreams
- improved muscle definition
- heightened libido
- increased strength
- significant weight loss
- improved vision
- enhanced focus
- enhanced muscle mass
- hair growth
- PMS symptoms reduced
- greater flexibility
- healthier nails
- improved joint mobility
- increase in sexual desire
- alleviation in some menopausal symptoms
- greater improvements in skin texture and appearance
- skin has greater elasticity
- reduction of the appearance of wrinkles
- hair becomes even healthier and thicker
- cellulite greatly diminishes
- improved immune system
- pain & general soreness diminishes
- wounds heal quicker
- greater metabolic output
- grayed hair returns to natural color
- reduction in LDL cholesterol
- blood pressure normalizes
- heart rate improves
NewULife advise that none of the “expected benefits” above have been ‘evaluated by the Food and Drug Administration‘.
NewULife’s HGH gel retails at $169.99 for a 3.5 oz (100 ml) pump bottle.
The NewULife Compensation Plan
The NewULife compensation plan rewards affiliates for selling products to retail customers and recruiting new affiliates.
NewULife Affiliate Ranks
There are seven affiliate ranks within the NewULife compensation plan.
Along with their respective qualification criteria, they are as follows:
- Associate – sign up and generate 140 PV over a rolling five-week period
- Promoter – maintain 140 PV over a five-week rolling period and recruit and maintain at least two Associates (one on either side of the binary team)
- Coordinator – maintain 140 PV over a five-week rolling period, recruit and maintain at least four Associates (two on both sides of the binary team) and generate 5000 GV in your weaker binary side (five weeks)
- Coach – maintain 140 PV over a five-week rolling period, recruit and maintain at least six Associates (three on both sides of the binary team) and generate 10,000 GV in your weaker binary side (five weeks)
- Life Coach – maintain 140 PV over a five-week rolling period, maintain at least six Associates (three on both sides of the binary team) and generate 20,000 GV in your weaker binary side (five weeks)
- Ambassador – maintain 140 PV over a five-week rolling period, recruit and maintain at least eight Associates and generate 50,000 GV in your weaker binary side (five weeks)
- Diamond Ambassador – maintain 140 PV over a five-week rolling period, recruit and maintain at least ten Associates and generate 100,000 GV in your weaker binary side (five weeks)
NewULife pay retail commissions on the sale of products to retail customers (non-affiliates).
- one retail order of HGH gel pays a $45 commission
- a HGH gel retail autoship order pays a $25 commission
- a retail commercial customer order (40 gel order) pays a $520 commission
NewULife affiliates are paid to recruit new affiliates.
How much of a recruitment commission is paid out is determined by how much a newly recruited affiliate spends when they sign up:
- recruit a standard affiliate ($199) and get paid $20
- recruit a Pro Pack affiliate ($499) and get paid $60
- recruit an Executive Pack affiliate ($899) and get paid $120
A residual recruitment commission one each recruited affiliate is paid out to Coach and higher ranked affiliates.
Residual recruitment commission rates are as follows:
- new standard affiliate = $20
- new Pro Pack affiliate = $60
- new Executive Pack affiliate = $120
These commissions are paid out as a coded bonus determined by rank.
When a new NewULife affiliate is recruited, the system pays the a residual recruitment commission to the recruiting affiliate as follows:
- Coaches are paid 20%
- Life Coaches are paid 30%
- Ambassadors are paid 30%
- Diamond Ambassadors are paid 20%
The system then searches the upline to pay the remaining residual commission.
E.g. if a Coach ranked affiliate recruited a new affiliate, they’d be paid 20% of the residual recruitment commission rate with 80% remaining.
If this was a standard affiliate recruitment, the Coach would be paid 20% of $20 ($2), with $18 remaining.
The system would then continue to search for a Life Coach or higher ranked affiliate to pay the remaining $18 to.
If an Ambassador ranked affiliate was the next found, they’d be paid 60% (they receive the Life Coach Coded Bonus).
The first upline Diamond Ambassador after that would be paid the remaining 20%.
A Coded Bonus does try to pay sequentially on rank, however if the next qualifying affiliate is of a higher rank, they collect the bonus percentages allocated to lower ranks.
This means that when a Diamond Ambassador recruits a new affiliate, they receive 100% of the residual recruitment commission rate.
Lower ranked affiliates receive their rank percentage plus that of ranks below them. The remainder is passed up as per the coded bonus explanation above.
NewULife pay residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
Sales volume is generated across the binary team via retail sales and affiliate orders.
At the end of each week NewULife tally up generated sales volume.
Residual commissions are paid using a 600/400 PV ratio. That is 600 PV on one side of the binary team is matched with 400 PV on the other side.
Each match is referred to as a “cycle”, with a cycle generating a commission based on rank:
- Promoter and Coordinator affiliates earn $40 per cycle
- Coach and higher ranked affiliates earn $60 per cycle
Note that all NewULife affiliates are capped at 417 cycles a week.
To qualify for residual commissions a NewULife affiliate must
- generate 140 PV over a rolling five-week period (280 PV for Coach and higher ranked affiliates) and
- recruit at least two affiliates who each generate 140 PV or more over a rolling five-week period
NewULife pay a Matching 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.
Using this unilevel compensation structure, NewULife pay a Matching Bonus on residual binary commissions on up to seven levels of recruitment.
- Coordinator ranked affiliates earn a 10% match on level 1 (personally recruited affiliates)
- Coach ranked affiliates each a 15% match on level 1 and 10% on level 2
- Life Coach ranked affiliates earn a 15% match on level 1, 10% on level 2 and 5% on level 3
- Ambassador ranked affiliates earn a 15% match on level 1, 10% match on level 2 and 5% on levels 3 and 4
- Diamond Ambassador ranked affiliates earn a 15% match on level 1, 10% match on level 2 and 5% match on levels 3 to 7
Coach ranked NewULife affiliates receive a $700 a month Car Bonus.
Ambassador and higher ranked affiliates receive $1500 a month.
Basic NewULife affiliate membership is $199. This options comes with one bottle of HGH gel.
NewULife affiliates can also opt to sign up with a Pro Pack for $499 (6 bottles) or an Executive Pack for $899 (8 bottles).
There’s no question NewULife’s “expected benefits” list for what is essentially a gel application product is impressive.
Perhaps less so though when you dig deeper.
For starters while NewULife’s HGH gel is registered with the FDA, the regulators hasn’t tested the product.
That means the “expected benefits” are based on… well NewULife don’t really say.
The active ingredient in the HGH gel is somatropin.
According to WebMD, somatropin is used to treat
growth failure, growth hormone deficiency, intestinal disorder (short bowel syndrome) or HIV-related weight loss or wasting.
Somatropin is also used to increase height in children with certain genetic disorders (such as Noonan syndrome, Turner’s syndrome).
This is for the injection variety mind. I didn’t find anything on a gel application outside of NewULife’s marketing material.
Despite listing a plethora of spectacular “expected benefits”, NewULife attempt to cover themselves with the standard FDA disclaimer:
These statements have not been evaluated by the Food and Drug Administration.
These products are not intended to diagnose, treat, cure, or prevent any disease.
Curious about the difference between something being FDA registered and approved, I went searching on the FDA website.
That lead to the discovery that one of Alex Goldstein’s other companies, Strike First Nutrition also has a HGH gel registered with the FDA (click to enlarge):
As you can see both products appear to be identical, with the exception that Strike First Nutrition’s HGH gel has been marketed from October 2nd, 2015.
Alexa currently rank the Strike First Nutrition website at 6.3 million, which for an e-commerce site is dead.
How is it that this wonder HGH gel with purportedly significant medical benefits hasn’t caught on in two and a half years?
Strike First Nutrition currently list the HGH gel as being “out of stock”. Further research however suggests it retailed for $149.99, $20 cheaper than NewULife.
Why the $20 markup? No idea.
Oh and as to the boilerplate FDA disclaimer, here’s an additional “expected benefit” of the HGH gel you won’t find on the NewULife website;
Medically speaking, the flu is classified as an infectious disease.
Considering we’re talking about a retail spend of $180 for a 100 ml bottle of HGH gel, I have some serious reservations as to the retail viability of the product.
And that’s pretty important when you factor in NewULife currently has no alternative products to fall back on.
And that leads us into NewULife’s compensation plan.
The first red-flag are the direct and residual recruitment commissions paid out. This shouldn’t be happening in any company.
At least not without a “no product” affiliate membership option, wherein affiliates can choose to purchase products if they wish.
The next red flag ties directly into the retail viability of NewULife’s HGH gel.
Here’s two MLM commission qualification definitions taken directly from the NewULife compensation plan documentation:
Active - This means that you must maintain at least 140 PV within a 5-week rolling period.
Being on autoship for at least 140 PV is the best way to maintain an active status.
Qualified – This means you must maintain an active status and at least two active personally sponsored Distributors, one on each leg.
To earn MLM commissions in NewULife, all affiliates must be active. As above, the best way to qualify for MLM commissions is via monthly autoship.
I’m sorry, shouldn’t the best way to qualify for commissions in an MLM company be via the sale of products and services to retail customers?
Residual binary commissions require “Qualified” criteria to be met, which is recruit two active affiliates.
It follows that the best way to be qualified is sign up for autoship yourself and recruit two other affiliates who do the same.
At no point are retail sales encouraged or even necessary. Not if you want to achieve the best way to qualify for Active and Qualified.
The combination of a product with questionable retail viability and a focus on affiliate autoship recruitment, lends itself to an MLM company operating as a pyramid scheme.
Significant retail sales volume is required to balance out affiliate autoship orders, and in NewULife I’m just not seeing it.
For all the purported “expected benefits” of HGH gel, I think what it comes down to is if Alex Goldstein wasn’t able to sell it successfully through Strike First Nutrition, why would NewULife affiliates fare any better?