Is Modere a Scam Pyramid Scheme? Exposed!

Are you looking for a Modere MLM review? Is Modere a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about Modere MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Modere MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Modere MLM.

To help you make a more informed decision, I have thoroughly researched the Modere MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Modere MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to Modere MLM that has enabled me to make a full-time passive income online.

What is Modere MLM?

Modere is primarily a health and wellness Multi-Level-Marketing company. However, they offer a wide range of products for personal care, nutrition, and housekeeping.It was founded in 1987 by Thomas and Leslie Mower under the name “Images and Altitude.”

It changed its name to Neways in 1992 and was purchased by the same company that went public with Herbalife in 2006. It was purchased by another group in 2012 and renamed Modere.

It operates in over 23 countries and claims that its products are “chemically safer” than those of other brands. People can now “work from home” for Modere by selling their products and recruiting new members to their MLM.

However, it is important to note that large numbers such as selling $6 billion in product and paying out more than $3 billion in commission are not as impressive as they may appear.

According to their income disclaimer, the average commission for members in 2017 was $1,342.73. When at least $1,449.86 in costs are considered, it is clear that the average member loses money.

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What Products Does Modere Offer?

Modere has a lot of different things for sale. All of them belong to one of the following groups:

  • Lean body system: weight loss pills and drinks
  • Collagen sciences: pets, healthy aging supplements
  • Personal care: skin, body, hair, mouth
  • Health and wellness: anti aging, active health, weight loss, targeted health 
  • Household care: laundry, kitchen, cleaning products
  • Vitamin angels: donate to charity

It’s critical to understand that there are thousands of brands that sell nearly identical products. 

The M3 line is the main product line that distinguishes Modere. It aids in weight loss by utilizing three supplements based on the Mediterranean diet:

  • BURN: fat burning vitamin C capsules 
  • SYNC: drink to reduce cravings and optimise digestion 
  • SUSTAIN: plant derived protein shake

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What is MLM?

Before we get into Modere MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like Modere MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

How Does Modere MLM Work?

Because Modere is a multi-level marketing company, there are two primary ways to profit from it. 

  1. Selling products
  2. Recruiting members

These are some of the most basic methods of earning money in Modere. Remember that you can earn more money if you qualify for the available benefits and bonuses.

However, these bonuses are more concerned with attracting new employees than with increasing sales. This makes it difficult for MLM members who simply want to run their own businesses. They are told that bringing in new employees will increase their earnings.

Remember that MLMs want you to keep recruiting people so that you can make a lot more money. Because you are paid on a commission basis, all you have to do is recruit others to join under you. Even if the new member hasn’t purchased anything yet, you can still get a bonus just for signing them up.

Aside from that, you must make a certain number of sales. Even if you are new to the company, this sales goal is usually absurdly high. You must sell a large number of items. To make things easier, if you add more people to your team, they will be the ones to place orders with you.

Keep in mind that the MLM business model isn’t sustainable, so you’ll eventually run out of people to recruit.

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Is Modere A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is Modere, then, a pyramid scheme?

No. Modere does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

What is the Modere MLM’s Compensation Plan?

Most MLM compensation plans are difficult to comprehend. There are seven ways to get paid at Modere:

  1. Customer pod bonus (10-36% commission for recruiting active customers + free product credits)
  2. Career path (get more bonuses as you rank up for recruiting more people, see table below for how to rank)
  3. Generational unilevel (4-7% bonuses on 8 generations of pay for senior consultants)
  4. 4 or more bonus (4% if you build 4 or more “teams”)
  5. Team builder bonus ($100-$3,000 bonus when you achieve 1,800-240k points each month)
  6. Promoter development bonus ($10-$300 a month for helping your downline build their customer base)
  7. Leadership development bonus (commission bonuses for your downline getting promoted)

All you need to know to make money is how to do the following:

  1. Sell Modere products
  2. Recruit people

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10 Reasons Why I Don’t Recommend Modere MLM

1. The Good Reviews are Written by Modere MLM’s Affiliates

You probably have found some other reviews of Modere MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join Modere MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of Modere MLM.

2. Very Few People Can Make Money With Modere

Success is difficult to achieve with an MLM company like Modere.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From Modere MLM Are Reframed As Investments

Modere MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. Modere MLM is a Cult

Why do people continue to work for Modere if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase Modere Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Modere. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Modere Products are Overpriced

As with other MLMs, Modere offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Modere products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. Modere’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like Modere is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider Modere to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Modere, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Modere.

Modere’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to Modere’s payouts to distributors, over 99 percent of Modere distributors never make a profit.

9. Modere Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

Modere is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like Modere put a lot of effort into recruiting. Eight out of ten ways to earn money with Modere require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Modere review.

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How Much Does It Cost To Join Modere MLM?

For its distributors, Modere chose the name Social Marketer (SM). There are two types of SM in Modere.

  1. Promoter: Distributors who only want to promote products and earn commissions, fall in this category.
  2. Builder: Builder can promote products and recruit new distributors in downline to earn commission on personal and downline product sales.

To join Modere, you must pay a $39.99 enrollment fee and purchase at least 75 Points worth of products. Each Modere product has a set number of points that are distributed with each purchase and used to calculate various commissions.

To reach 75 points, Modere offers XM Launch, Basic Packs, and Essential Kit Packs.

Modere MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • A network of affiliates
  • You are not required to keep inventory.
  • Products that are not prohibitively expensive
  • Low start-up and ongoing costs

Negative Feedbacks

  • The company is still in its early stages.

Is Modere MLM a Scam?

I cannot say Modere MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling Modere products? We already know that a majority of Modere reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Modere is by recruiting aggressively.

Also, Modere blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Modere MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

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Final Verdict: Modere MLM Review

Here comes the conclusion of my Modere MLM review. Overall, I don’t recommend joining Modere MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Modere commission.

The worst part is that you practically have to ask your family and friends to join your Modere business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of Modere MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Modere MLM.

My #1 recommended platform is called Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Modere MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership. The premium membership only costs $49/month or $395/year.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.

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