Cili By Design is a CBD supplement MLM company.
Cili By Design was established in 2019 and has a corporate location in Las Vegas, Nevada, according to its website.Moving forward Brad and Marcia Hager are the co-founders of Cili By Design.
Brad Hager has been working in MLM for 28 years, according to his Cili By Design business profile.
Marcia Hager is noted with starting in MLM in her “early twenties” and eventually “co-owning her own mlm firm” at the age of 28.
I’m not sure when they married, but Brad and Marcia have been together for a long time. The Hagers’ MLM activities are mostly conducted through the Hager Marketing Group.
I was able to trace the Hagers’ MLM career back to 2009, when they left Cyberwize for Zrii.
For many years, the Hagers have been Zrii’s top earners. They stayed with Zrii until 2013, when they departed to join FGXpress.
ForeverGreen International and FGXpress were both launched by CEO Ron Williams.
FGXpress went bankrupt in 2016. Following FGXpress, the Hagers ventured into MLM crypto Ponzi fraud with Ormeus Global.
Hager appears to have removed any references to his participation with Ormeus Global off the internet. However, a BehindMLM reader reported in March 2018 that Brad Hager was scheduled to advertise Ormeus Global in Thailand “next month.”
Earlier this year, Ormeus Global founder John Barksdale was charged with criminal fraud. He is still at large throughout Southeast Asia.
Barksdale was also charged with civil fraud by the SEC. According to the SEC, Ormeus Global was a $124 million dollar Ponzi scam.
It’s unknown how much money Brad Hager directly stole from customers through Ormeus Global.
Ormeus Global, unfortunately, does not appear to be Hager’s first MLM Ponzi fraud.
Brad Hager claimed to have “a reasonably significant downline” in Zeek Rewards back in 2012.
Despite the fact that he currently resides in Las Vegas, I couldn’t help but notice Brad Hager’s Facebook page, which states that he is originally from North Carolina.
Paul Burks of North Carolina ran Zeek Rewards. Although I can’t prove Hager conned “a significant downline” through Zeek Rewards, I assume it’s the same individual based on North Carolina and Hager’s verified role with Ormeus Global.
By 2019, Ormeus Global had all but crumbled, ending in Thai authorities arresting John Barksdale.
That takes us to the birth of Cili By Design that same year.
Continue reading for a comprehensive assessment of Cili By Design’s MLM opportunity.
Products by Cili By Design
Cili By Design sells a variety of CBD supplements.
Cili Swish, which bills itself as “the cleanest, quickest, and most bio-available hemp oil on the market when administered using our innovative technology,” costs $72.50 for a bottle of 36 doses.
Cili Boost, described as “a moderate, pleasant mouth spray created with high-quality, CBD-rich Aquaceutical concentrate oil, natural Orange zest taste, and elite herbs to transform food energy into cellular energy and cellular metabolism,” costs $25 for a container of 90 spray doses.
CILI Sleep – “for improved sleep,” a container of 30 spray doses costs $25.
CILI Serenity, described as “a consistently outstanding experience for a sensation of tranquility,” costs $25 for a bottle of 30 spray doses.
CILI Relief – “get rid of that workout painful muscle ache or the everyday nagging joint pain” for $25 for a bottle of 30 spray dosages.
CILI Trim – retails for $25 for a bottle of 30 spray dosages and claims to “help you lose weight faster and more efficiently.”
According to Cili By Design, their supplements include a blend of CBD and CBG.
Compensation Plan for Cili By Design
The compensation plan for Cili By Design is a mix of retail and recruiting, with an emphasis on autoship.
In addition to unilevel retail commissions and residual binary commissions, there are a variety of rank-based incentives available.
Affiliate Ranks for Cili By Design
Cili By Design’s compensation structure includes thirteen affiliate ranks.
They are as follows, along with their respective qualification criteria:
Sign up as a Cili By Design affiliate and create and maintain 65 PV in normal orders or 50 PV in autoship orders per month.
C1 – Maintain Qualified Member requirements, recommend and retain one retail client, recruit and retain one Qualified Member or above, and produce 200 GV every month.
C2 – Maintain Qualified Member requirements, recommend and retain two retail customers, recruit and retain two Qualified Members or above, and create 600 GV every month.
C3 – Maintain Qualified Member requirements, recommend and retain three retail customers, recruit and retain three Qualified Members or above, and create 2000 GV every month.
C4 – Maintain Qualified Member requirements, recommend and retain four retail customers, recruit and retain four Qualified Members or above, and produce 5000 GV each month (no more than 70% from any one unilevel leg).
C5 – keep Qualified Member requirements and four personally referred retail customers, recruit and keep five Qualified Members or above, and produce 15,000 GV each month (no more than 65% from any one unilevel leg).
C6 – keep Qualified Member requirements and four personally referred retail customers, recruit and keep six Qualified Members or above, and produce 30,000 GV each month (no more than 60% from any one unilevel leg).
C7 – keep Qualified Member requirements and four personally referred retail customers, recruit and keep seven Qualified Members or above, and produce 60,000 GV each month (no more than 55% from any one unilevel leg).
C8 – keep Qualified Member requirements and four personally referred retail customers, recruit and keep eight Qualified Members or above, and produce 120,000 GV each month (no more than 50% from any one unilevel leg).
C9 – keep Qualified Member requirements and four personally referred retail customers, recruit and keep nine Qualified Members or above, and produce 250,000 GV each month (no more than 45% from any one unilevel leg).
C10 – keep Qualified Member requirements and four personally referred retail customers, recruit and keep ten Qualified Members or above, and produce 500,000 GV each month (no more than 40% from any one unilevel leg).
C11 – maintain Qualified Member requirements and four individually referred retail customers, recruit and retain eleven Qualified Members or above, and produce one million GV each month (no more than 35% from any one unilevel leg).
C12 – keep Qualified Member requirements and four personally referred retail customers, recruit and keep twelve Qualified Members or above, and produce 2,500,000 GV each month (no more than 30% from any one unilevel leg).
PV is an abbreviation for “Personal Volume.” PV is the total sales volume generated by retail consumer sales and affiliate orders.
GV is an abbreviation for “Group Volume.” PV generated by a Cili By Design associate and their downline is referred to as GV.
It is important to note that in order to count towards retail customer criteria, a retail client must have placed an order within the last four weeks.
Commissions on retail sales
Cili By Design has a one-level compensation system for retail commissions.
In a unilevel compensation system, an affiliate is put at the head of a unilevel team, with every individually recruited affiliate placed right under them (level 1):
If any level 1 affiliates acquire new affiliates, they are assigned to the original affiliate’s unilevel team at level 2.
If any level 2 affiliates recruit new affiliates, they are promoted to level 3, and so on for an unlimited number of levels.
Retail commissions are capped at four unilevel team levels at Cili By Design.
Retail commissions are paid on retail client orders based on rank at these four levels:
Affiliate – 25% commission on level 1 (personally referred retail customers)
C1 – 25% on level one, 10% on level two
C2 – 25% on level one, 10% on level two, and 5% on level three.
C3 and above – 25% on level one, 10% on level two, and 5% on levels three and four
Retail Quick Start Bonus
Affiliates that generate Cili By Design retail clients on autoship are eligible for the Retail Fast Start Bonus.
A $150 incentive and $150 product credit are awarded to Cili By Design affiliates who earn 10 autoship clients in their first four weeks.
Quick Start for Business Builder
The Business Builder Fast Start is an autoship-related recruitment bonus.
To be eligible for the Business Builder Fast Start, a new Cili By Design affiliate must be established.
create 200 PV or buy a Builder’s Pack; recommend four retail customers on autoship; and recruit four affiliates, each with a Builder’s Pack.
A $200 incentive and $200 product credit are granted if the aforementioned conditions are met within four weeks of joining up as a Cili By Design associate.
Cili By Design employs a binary compensation scheme to pay residual commissions.
In a binary compensation system, an affiliate is placed at the top of a binary team, which is divided into two sides (left and right):
The binary team’s initial level has two slots. The binary team’s second level is created by dividing the initial two slots into two more positions each (4 positions).
As needed, subsequent levels of the binary team are constructed, with each successive level containing twice as many spots as the preceding level.
Positions on the binary team are filled through direct and indirect affiliate recruiting. It should be noted that there is no limit to how deep a binary team may develop.
Cili By Design totals new sales volume on both sides of the binary team at the conclusion of each week.
Retail client orders and affiliate purchases are included in sales volume.
Residual commissions are awarded to affiliates as a percentage of sales volume earned on their weaker binary team side:
Affiliates ranked C2 get a 10% residual commission rate, with a monthly ceiling of $500.
C3 affiliates get an 11% residual commission rate, with a monthly ceiling of $1000.
Affiliates rated C4 get a 12% residual commission rate, with a monthly ceiling of $2500.
C5 affiliates get a 13% residual commission rate, with a monthly ceiling of $7500.
C6 affiliates get a 14% residual commission rate, with a monthly ceiling of $12,500.
Affiliates rated C7 get a 15% residual commission rate, with a monthly ceiling of $25,000
Affiliates rated C8 get a 16% residual commission rate, with a monthly ceiling of $50,000.
Affiliates rated C9 get a 17% residual commission rate, with a monthly ceiling of $100,000.
C10 affiliates get an 18% residual commission rate, with a monthly ceiling of $250,000
Affiliates rated C11 get a 19% residual commission rate, with a monthly ceiling of $500,000
Affiliates ranked C12 get a 20% residual commission rate, with a monthly ceiling of $1,000,000
Once paid out, volume is flooded against the stronger binary team side.
Volume from the stronger binary team carries over.
Cili By Design affiliates are eligible for a Matching Bonus on residual commissions generated by directly recruited affiliates.
Affiliates ranking C3 receive a 5% Matching Bonus.
Affiliates ranking C4 receive a 10% Matching Bonus.
Affiliates ranking C5 receive a 15% Matching Bonus.
Affiliates ranking C6 receive a 20% Matching Bonus.
Affiliates ranking C7 receive a 25% Matching Bonus.
Affiliates ranking C8 receive a 30% Matching Bonus.
Affiliates ranking C9 receive a 35% Matching Bonus.
Affiliates in the C10 get a 40% Matching Bonus.
Affiliates ranking C11 receive a 45% Matching Bonus.
Affiliates ranking C12 receive a 50% Matching Bonus.
Bonus Car & Transportation
The Car & Transportation Benefit, despite its name, is a monthly bonus that affiliates can utilize “at their discretion.”
Affiliates ranked C4 earn $100 each month.
C5 affiliates get $250 per month, while C6 affiliates earn $350 per month.
Affiliates ranked C7 get $450 per month.
C8 ranked affiliates earn $550 per month, C9 ranked affiliates earn $700 per month, C10 ranked affiliates earn $850 per month, and C11 ranked affiliates earn $1000 per month.
C12 affiliates get paid $1200 each month.
Account for Travel and Expenses
Another monthly benefit that C5 and higher ranking Cili By Design affiliates can “use as you choose” is the Travel & Expense Account.
C5 affiliates are paid $250 per month.
C6 affiliates earn $500 per month, while C7 affiliates receive $1000 per month.
C8 ranked affiliates earn $2000 per month, C9 ranked affiliates earn $3500 per month, C10 ranked affiliates earn $5000 per month, C11 ranked affiliates earn $7500 per month, and C12 ranked affiliates earn $10,000 per month.
Bonus for Healthcare and Insurance
The Healthcare & Insurance Benefit is a monthly bonus that C6 and higher ranking Cili By Design associates can “use anyway they see fit.”
C6 affiliates are paid $350 per month.
Affiliates ranked C7 get $450 per month.
Affiliates ranking C8 get $550 per month.
Affiliates rated C9 get $650 per month.
Affiliates in the C10 earn $750 per month.
Affiliates ranked C11 get $850 per month.
C12 affiliates get paid $1200 each month.
Bonus for Rank Achievement
Cili By Design offers the following one-time Rank Achievement Bonuses to affiliates that qualify at C5 or higher:
qualify at C5 and get $1000 qualify at C6 and get $2500 qualify at C7 and get $5000 qualify at C8 and get $10,000 qualify at C9 and get $25,000 qualify at C10 and get $50,000 qualify at C11 and get $100,000 qualify at C12 and get 250,000
It should be noted that once eligible, rank must be maintained for three consecutive months before the Rank Achievement Bonus is activated.
Trips for Incentive
Cili By Design provides incentive vacations to C5 and higher level associates.
Every year, you will have many opportunities to earn world-class excursions, cruises, and retreats to some of the most beautiful locations on the planet.
There are no specifics offered.
By Design, I’m Joining Cili
Cili By Design affiliate membership is $39.95 per year.
There are also many optional Builder’s Packs (the first year is $39.95 on all packs):
$89 for the Consumer Pack
$299.95 for the Intro Pack (C3 rank for 30 days)
$599.95 for the Networker Pack (C4 rank for 60 days)
$899.95 for the Pro Pack (C5 rank for 90 days)
Aside from purchasing rank, the other distinction between Builder’s Packs is the inclusion of bundled items.
Conclusion of Cili By Design
If Cili By Design had debuted in 2022, I would have scoffed at the tardy adoption of CBD.
Back in 2019, though, the CBD craze was in full force. CBD is now and has been for quite some time.
With regard to CBD MLM enterprises, this means fierce competition.
Cili By Design hopes to distinguish itself through “proprietary technology,” notably “Aquaceutical Cellular Nutrition Technology.”
A team of four scientists with nine PhDs worked for years to perfect this exclusive technique.
Our exclusive Aqauceutical Nano technology allows CBD and other nutrients to pass through the cellular membrane, delivering a greater nutritional payload.
According to scientific research, the smaller the particles, the more bio-available they are, and the faster they can penetrate and be used by your cells.
I began seeking for further information on “Aquaceutical Cellular Nutrition Technology” to try to verify these claims.
There are none. It is a marketing phrase that is exclusive to Cili By Design.
This raises the question of whether Cili By Design’s CBD/CBG products are significantly different from alternatives.
Price-wise, Cili By Design’s main Swish product is $72.50 for 36 servings.
A single dose contains 3326 mg of THC-free hemp oil and 1232 mg of a “proprietary aquaceutical adaptogen nootropic wellness combination.”
As previously stated, CBD/CBG products are now widely available. Personally, I do not believe Cili By Design’s goods will be cost-competitive in 2022.
Lack of retail viable items encourages affiliate autoship recruiting, which Cili By Design is undoubtedly doing.
According to a Cili By Design marketing film;
It just takes one bottle of Swish on your monthly order to meet your volume requirements and win all benefits.
Cili By Design also reduces the monthly PV requirement for affiliates who qualify through a monthly autoship order.
While autoship recruiting is a possibility for Qualified Members, Cili By Design has retail customer needs baked into rank qualifying.
It’s also quite generous to pay residual retail commissions down four unilevel team levels.
This is fantastic news, because up to C5, there is a 1:1 match between recruiting and retail consumer criteria – at least in terms of basic standards.
At C12, the ratio of four retail customers to twelve recruited affiliates is a factor of three.
It’s difficult to predict with precision what this means for overall company sales volume. The bulk of affiliates in any MLM organization do not advance past the initial echelons. So I’m inclined to assume that, on a company-wide basis, retail and affiliate order volume are fairly balanced.
However, when considering Cili By Design as an MLM possibility, we are led back to retail viability. A balanced compensation plan will not benefit you if you are marketing a product that is tough to sell to retail buyers.
Returning to ranks, Cili By Design heavily favors its earlier ranks in terms of commissions and bonuses. MLM doesn’t really kick in until C3, at which point you’re looking at 2000 GV every month.
This appears to be quite unfair in comparison to the vast majority of affiliates who will never achieve C3 (why are residual commissions capped?).
I’m almost inclined to argue that the majority of Cili By Design affiliates are being taken advantage of in terms of the amount of labor they put in against the reward.
Finally, what is the point of having three monthly bonuses that may be used for anything? This is ineffective marketing.
Combine the Car and Transportation Incentive, Travel and Expense Bonus, and Healthcare/Insurance Bonus into a single monthly bonus (what they are anyway).
I assume the main reason monthly incentives were divided into random categories is so Cili By Design could claim “there are ten distinct methods to make money in Cili.”
Overall, any MLM firm selling CBD in 2022 will be operating in a highly competitive industry. If you want to compete, you need to have an advantage, which Cili By Design lacks.
This may have flown back in 2019, but I have concerns about the company’s long-term survival.
The good news is that if you exclude the Builder’s Packs, joining expenses are rather low. Because affiliates are acquiring more earning potential – even if only temporarily – these bundles represent a regulatory red flag.
I’d suggest establishing a strict limit of a few hundred bucks and focusing on Cili By Design for a few months. If you do manage to create a retail client base, that’s fantastic, but don’t fall into the trap of paying a continuing autoship cost if your firm isn’t growing.
Finally, I hope Brad Hager received a wake-up call from Ormeus Global. It’s bad enough if an MLM co-founder has a history of Ponzi scams. If he’s still practicing crypto (privately or publicly), it’s probably best to avoid Cili By Design entirely.