Is Stemtech a Scam? A Look at One of the Unique MLM Companies Out There
Stemtech is not your ordinary health and wellness company. Instead of targeting the whole body, its dietary supplements are designed to zoom in on stem cells.
You've probably heard that it offers people a chance to become distributors and you're curious whether it's a good company or a scam.
Good for you because we're going to talk about Stemtech, its products, and whether it's a scam or not.
Price to join: $35 to $399
Do I recommend? No
Summary: Stemtech is a Florida-based health and wellness company that offers nutritional supplements that nourish the stem cells. It has an MLM business model, and has been around since 2005.
Although it is not a scam, it is beset with financial and legal problems that won't be going away soon. Is it worth your time? Find out more below.
Better Option: If you're looking for a legitimate way to make money from home, you should check out Wealthy Affiliate. Wealthy Affiliate is where I learned how to make money online and I make more now than I ever did before.
It's completely free to try too! To learn more click below:
What Is Stemtech?
Stem cells are types of human cells that are capable of developing into different types of cells. These have the ability to repair tissues, that is why some researchers believe that these cells are the key to curing certain diseases or restoring bodily functions for people suffering from paralysis.
The use of stem cells in scientific research and in medicine dates back to the 1950s. The use of stem cells (particularly embryonic stem cells) in therapy, however, became controversial, so it was not until the past few decades that stem cell nutrition officially entered the health and wellness market.
One of the companies that developed its own stem cell nutrition products is Stemtech. This company was founded by entrepreneurs Ray Carter Jr., Greg Newman, and Christian Drapeau in 2005. It was not until 2008, however, when it used a network marketing/MLM business model. It is headquartered in Florida.
Stemtech specializes in stem cell nutrition. Its team of scientists has developed dietary supplements that help nourish stem cells, boost the immune system, and help the body heal itself.
Stemtech is headquartered in Florida, but it has branched to other countries including Australia, Belgium, Ecuador, Malaysia, Serbia, South Africa, and the United Kingdom to name a few.
Is Stemtech A Pyramid Scheme?
No, Stemtech is not a pyramid scheme. It has an MLM business model, but that doesn't mean that it's automatically a pyramid scheme.
But if you're late in the game and you're planning to join Stemtech, then it's in your best interest to know some of the issues this company has faced over the years.
Stemtech's financial difficulties began in 2012 after Cerule, the company's supplier of a product called StemEnhance, failed to manufacture an adequate of this product. Because of this, Stemtech failed to fulfill its orders to its customers and subsequently was unable to pay Cerule.
In 2013, Andrew Paul Leonard, a stem cell photographer, won a lawsuit against Stemtech after he sued the company for copyright infringement. The company was forced to pay Leonard $1.6 million.
It was beset by financial problems in the years that followed. Stemtech was already unable to pay for goods, and it began default on its loans which amounted to more than $8 million.
It was followed the acrimonious departure of one of its co-founders in 2016. Stemtech's termination of the contract with Cerule and its refusal to pay the company the amount it owed added to its problems. These resulted in Cerule suing Stemtech.
Drapeau's departure became more bitter when he formed a company similar to Stemtech. Stemtech distributors and executives left Stemtech and followed Drapeau.
But the company's woes were not over. It was forced to file a Chapter 11 bankruptcy in 2017. It was converted to a Chapter 7 in the following year.
Carter left Stemtech in early 2019. Currently, Stemtech is being led by David Casanova (President of Global Sales and Marketing), Victoria Rudman (Chief Financial Officer), and John W. Meyer (Chief Operating Officer).
Success is Rare at Stemtech
Success can be rare at Stemtech. The company has been beset with a string of financial and management issues for the past few years. It has filed for Chapter 11 bankruptcy and followed by Chapter 7 one year later.
Although Carter has already left the company, and new people have stepped in, its woes are far from over. Stemtech's history is problematic, and that is not a good indication for prospective distributors. The company's pricey products and MLM business model do not help its cause also.
If you're looking to earn money through MLM and health and wellness, it's best to look for a company that is more stable and not one saddled by debts and poor management.
WANT TO LEARN HOW I MADE $100,000 ONLINE?
How Much to Join Stemtech?
There are four different ways you can join Stemtech as an affiliate.
The first one is the Business Kit which costs $35. When you purchase this pack, you become Stemtech's Independent Business Partner. You'll receive a welcome letter, sales receipts, how-to guides, and marketing collaterals.
Distributors will also receive a personalized website, retail shopping cart, and access to Stemtech's back office.
The second business kit is the RCM Wellness Pack which costs $199. As a registered independent business partner, you'll be able to buy products at wholesale prices and receive marketing materials.
This pack includes several Stemtech products including Stemrelease3, StemFlo Advanced, and Migrastem. This includes a personalized Stemtech website, a retail shopping cart, and management tools. Affiliates who purchased this kit will be eligible to receive Stemtech's TeamBuilder Bonuses.
Another business kit Stemtech offers is the RCM Business Pack which costs $399. This allows independent business partners to buy products at wholesale prices.
This includes several Stemtech products and marketing collaterals. Independent business partners who sign up for this plan will receive a personalized website, retail shopping cart, and management tools. They are also eligible for TeamBuilder Bonuses.
The last kit is the TeamBuilder Pack and it costs $320. Most of the features are similar to other plans, except for the varieties of products included in the kit.
What is Stemtech's Compensation Plan?
Stemtech affiliates/distributors are officially called Independent Business Partners. They are divided into Income Earners, people who have full-time or part-time jobs, students, or stay-at-home parents who want to earn additional income, and Career Leaders, individuals who want to be full-time Stemtech entrepreneurs.
But before we continue to the compensation plan, check out the ranks you can climb once you become a Stemtech independent business partner (ranked from lowest to highest).
Double Diamond Director
Triple Diamond Director
Crown Diamond Director
President's Club Director
Chairman's Club Director
Global Ambassador Club Director
Stemtech's Compensation Plan has been simplified over the years. There are five ways you can earn with Stemtech. Check them out below.
* TeamBuilder Program
The TeamBuilder Bonus is given to Independent Business Partners who personally enroll a new business partner who then buys a TeamBuilder Pack. You are also qualified to receive incentives, such as Weekly Enroller Bonus, TeamBuilder Bonus, Turbo TeamBuilder Bonus, and 50% Matching Bonus, when you train and help members of your downline sell Stemtech products.
The incentives are paid every week StemPay E-Wallet.
* Prosperity Bonus Program
You'll receive a 7% to 10% commission on all purchases made by your downline seven levels deep. If you qualify, you'll receive an additional 3% infinity bonus. You'll receive this bonus after an independent business partner in your downline has accumulated 100 BV in a single month.
* Lifestyle Leadership Bonus Program
Leaders will receive a 1 to 10% commission on all monthly BV that goes beyond 100 for every independent business partner or retail customer.
* VIP Customer Program
Earn 2% commission off of the Autoship orders BV of every VIP Customer you personally enrolled.
* Vehicle Bonus Program
This monthly incentive is based on the building independent business partners and VIP Customers Autoship.
WANT TO LEARN HOW I MADE $100,000 ONLINE?
What Products Does Stemtech Offer?
Take a look at Stemtech's stem cell nourishing products below.
* RCM System
RCM stands for Release, Circulate, and Migrate. The products under this category are dietary supplements formulated to boost the immune system, as well as combat the effects of aging.
They contain all-natural ingredients and are loaded with vitamins, mineral, antioxidants, and other compounds that promote better health. These nutrients target the body's stem cells to help improve the circulatory and immune system.
The products under this category include:
This dietary supplement was developed especially to boost stem cell health. It contains extracts from Astragalus membranaceous, Cordyceps sinensis, and turmeric.
According to Stemtech, the stemrelease3 boosts the body's natural renewal system and telomere health. It also helps combat aging, and enhance overall health. stemrelease3 retails at $52.47 but is also available for wholesale at $44.22.
This product was developed to promote better blood and stem cells circulation, as well as strengthen the cardiovascular system. It contains trans-resveratrol, blueberry extract, turmeric, and other ingredients that contain nutrients. One bottle of StemFlo Advanced costs $49.47, but affiliates can buy it at a wholesale price of $4047.
If you're looking for a product that assists in the migration of stem cells, boosts the immune system, and helps remove toxins from the body, then the MigraStem is for you.
This dietary supplement contains fiber, polysaccharides, proteins, antioxidants, and phytonutrients. Each bottle costs $41.22 for retail customers, but it only costs $33.72 for Stemtech business partners.
Look younger with the Stemtech's Dermastem Advanced Serum. According to the manufacturer, it helps rejuvenate the skin and reduce the appearance of age spots and wrinkles.
The serum contains premium ingredients, such as aloe vera, cehami, moringa, fucoidan, black mamaku, AFA, and vanilla. It is non-toxic, hypo-allergenic, and all-natural.
Retail price for the Dermastem Advanced is $104.25, while the wholesale price is $78.75.
* DermaStem Lift
The DermaStem Lift was designed to ensure that you have a younger look younger. This serum, Stemtech claims, contains ingredients that can reduce fine lines and wrinkles, as well as moisturize the skin. It has a non-greasy feel, so it sits comfortably on your skin even when you have makeup on.
This serum contains squalene, sunflower lecithin, and olive leaf extract. You can buy 2 packs of Dermastem Lift at $44.97 (retail price) or $37.47 (wholesale price).
If you're not satisfied with your ordinary toothpaste, you can check out Stemtech's Orastem. The company claims that it can improve your overall oral and freshens breath health thanks to its anti-microbial properties. It can also make your teeth whiter in a non-abrasive way.
It contains herbal extracts, CoQ10, vitamins, antioxidants, and more.
This is not a dietary supplement, but a special device that counteracts the effects of EMF radiation emitted from mobile devices. According to Stemtech, this device was created especially for people who spend many hours staring at their phones. It is lightweight and easy to use as it can adhere to the mobile phone.
What I Like About Stemtech
Some things I like about Stemtech.
* Unique products
Stemtech has one of the most unique products lines we've ever reviewed here. It health and wellness products are focused on stem cells, which is unlike other companies that focuses on simply improving overall health. Stemtech's D-Fuze, in particular, is perhaps one of the most unique products I've seen.
The products, though diverse, are lamentably few. Perhaps the number of products it offered made Stemtech unable to compete with other companies that offer 20 or more products.
* Compensation plan is pretty simple
If you still want to become a Stemtech independent business partner, the good news is it has a relatively simple compensation plan. It is easy to understand, and explaining it to future affiliates will also be a breeze.
WANT TO LEARN HOW I MADE $100,000 ONLINE?
What I Don't Like About Stemtech
* Bankruptcy and poor management
Stem cell nutrition is unique in the field — there are only a few companies that offer these dietary supplements. Stemtech could have made a killing if it were not for blunder after blunder its management committed. The bankruptcy filings, debts, and lawsuits were the nails in its coffin.
Carter has since stepped down and the company now has new management, but the repercussions of bad decisions made by Stemtech's upper management will be felt for many years. It might be years before it can recover. If you're planning to become a distributor, then proceed with caution. Don't leave your day job yet and plunge headlong without due diligence.
* MLM is a flawed business model
Multi-level marketing can be an effective business, but there are so few that make it. Why? Because it is flawed to begin with. It attracts people who have no prior experience running a business or selling products. It can also attract unscrupulous people who prey on others.
MLM also has an image problem. Although not all companies using this business model are pyramid schemes, it can be difficult to distinguish a legit business from a scam.
* Pretty expensive enrollment fee and products
All of Stemtech's business packs are expensive, with the exception of the starter Business Kit ($35). Although they already include Stemtech products and marketing materials, the enrollment fees are still too expensive compared to other companies.
Like other MLMs, Stemtech's products are also pricey. Even though the products are somewhat unique, the high price of Stemtech's products will likely deter people from buying them.
Is Stemtech a Scam
Stemtech is not a scam. But its history of debts, bankruptcy, feuds with former executives, and poor management have made it unenticing. You're looking at a company that will take many years to recover, if at all.
Then there's the MLM side of the business. It is very hard to succeed using the MLM business model, and there are only a few companies and people that have done so. Your success will depend on your prior experience with sales, your personality, and how good the products are.
WANT TO LEARN HOW I MADE $100,000 ONLINE?
Here's a Better Way to Earn Money
If you are looking for a legitimate way of making money online and from home you should check out Wealthy Affiliate.
Wealthy Affiliate is where I learned how to make money online and they give you all the training and tools you need to succeed.
Also, there's a community of a million people to ask questions to and to help you out.
The best part? It's free to try! Learn more by clicking below: