What is Cerule? A scam or not? This is yet another MLM company selling products in the saturated health supplements niche, but is the business worth joining as a distributor or not?
Let’s take a closer look and find out…
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Company Name: Cerule
CEO: Greg Newman
Price To Join: $99 Minimum
My Rating: 5/10
~ Cerule Review ~
What Is Cerule?
Cerule is a company that sells health and wellness supplements. There are literally hundreds of companies involved in this niche these days, with health and fitness being such a top priority, and many of these companies use the MLM distribution model to move their products. Cerule also favours the network marketing business system.
Co-founded in 1999 by now CEO, Greg Newman, up until its name change to Cerule in 2014, the company was known as Desert Lake Technologies.
Cerule pride themselves on producing life-enhancing products based on scientific formulas that they claim are proven to work.
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This review is more focused on the business opportunity associated with Cerule, so I won’t go too deep into the products. They don’t have many anyway, but we’ll take a brief look at what’s on the shelf.
StemEnhance Ultra – This is a combination of nutrients found in both marine algae and freshwater algae. Along with Spirulina, this formulation helps with stem cell support, allowing cells to more easily recover and regenerate healthy cells.
PlasmaFlo – As you would expect by the name, this formulation is for improving blood flow and general vascular health. Crammed with plant extracts and powerful antioxidants, PlasmaFlo helps deliver oxygen and vital nutrients throughout the body.
Cyactiv – Another combination of Spirulina mixed with a blue-green algae extract, Cyactiv promotes supple joints and reduces inflammation, leading to a more active and fulfilling lifestyle.
Products in this niche, and especially when sold via the MLM business model, are always expensive. As an example, a bottle of Cyactiv containing 60 capsules costs $69.00 retail.
The Compensation Plan
In order to join Cerule and start selling their products and growing a team, you must first purchase one of their Starter Kits, which will equip you with some product samples and business materials.
Now, there are two main ways to earn here, and they are:
- Direct Sales
As far as direct sales go, whenever you sell a new recruit one of the Starter Kits, depending on which kit they buy, you can earn anywhere from a $10 commission right up to $300.
Unfortunately the commission rates for the Cerule products in general are not so great, set at a mere 10% across the board on Level 1 of the compensation plan.
The real money is in recruiting, building a team and advancing up the ranks within Cerule. This way you can earn residual commissions on those in your downline up to 7 levels deep, depending on your rank. The higher your rank the more you will earn.
There are also bonuses and incentives up for grabs.
- Matching Pay Bonuses
- Fast Start Bonus
- Ultra Fast Start Bonus
- Bonus Pools
- Car program
- Travel rewards
You can read the official Cerule 12 page compensation PDF here.
I’ve also embedded the official Cerule video that explains how their compensation plan works.
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The MLM Business Opportunity
The problem I have with the MLM structure is it’s grossly unfair to all the distributors. I realise MLM is very popular, largely due to the lifestyle dreams these companies sell, and the fact that everything is all established and ready to go, but that doesn’t alter the fact that MLM, by design, is meant to give all the benefits to the company while stripping advantages from its workforce.
When you join any MLM company as a distributor, you usually have to pay them for the right to promote their products. Distributors work as sales reps essentially, except there are no wages or retainers. All work is done on the promise of commissions and bonuses down the track.
The massive army of distributors these companies amass pretty much all work for free, do most of the product buying, do most of the selling, promote the company, advertise the products and grow the company through the necessary need to recruit and build teams.
MLM ventures always push the idea that you’ll be owning and growing your own business, but you’re not. Like I said, you are just a sales rep for them. You own and control nothing. Cerule own this business and calls all the shots.
You’re never creating an asset you could ever sell. That’s the way to determine whether you actually own your own business or not – Could you ever sell it?
With a MLM distributorship the simple answer is no.
Is Cerule An Illegal Pyramid Operation?
To be considered an illegal pyramid operation, Cerule would have to have no products and rely entirely on recruiting new paying members to survive. Cerule has real products, and despite their pyramid style of compensation structure, they are not a naked pyramid operation, and therefore cannot be considered an illegal pyramid scheme.
What I Like
- Cerule only has 3 main products, so this gives you a chance to really learn those products
- The company has been around for quite a while now
- It’s a global opportunity
- Their compensation plan seems a little easier to understand than some others I’ve seen
What I Don’t Like
- You only earn 10% commission at retail level
- Unless you can recruit big and active teams, you won’t be able to move up the Cerule ranks and earn more
- MLM is a really tough way to make money, one of the hardest
- You don’t actually own your own business, despite what Cerule will have you believe
- All the advantages go to the company and not the army of distributors
- If you can’t recruit you really can’t earn much
- The products are typically super expensive
- Nearly everyone fails at MLM in their first year
- This niche is super saturated
How Much Does Cerule Cost?
Okay, to get involved you have to purchase at least one Starter Kit. The cheapest is $99, so that’s your starting point. The Fast Start Pack costs $1000, while the Fast Start Ultra Pack costs a whopping $3000!
Is Cerule a Scam?
No, it’s not a scam, just typical MLM. I’m not a fan of the MLM way of doing things because I think it’s majorly unfair to the distributors. The structure is designed to grossly favour the company and those at the very top, while only offering crumbs to the majority down below.
This is not something exclusive to Cerule. Just about all MLM businesses are like this, that’s why companies choose to adopt this method. It saves them loads of work and stacks of money.
Cerule is okay, it’s simple with just a few products to handle, and their compensation plan makes more sense than some others I’ve seen. However, if you really want to make good money without killing yourself in the process and actually want to own your own business, then give anything MLM a miss.
MLM is one of the toughest ways known to make money, simply because of the compensation structure and the need to constantly recruit.
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Often people join MLM ventures because it sounds like a quick and simple way to get started and earning money. It can look that way on the surface, but it can prove costly, as well as being a major grind to earn money. Recruitment plays such a major role in your success and that’s where most people come unstuck.
Me, I much prefer affiliate marketing. It’s super simple to get started and costs virtually nothing. In my opinion network marketing isn’t a touch on affiliate marketing. I’ve done both and I would never consider going back to MLM ever again.
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