StemTech Review and Profile

Stemtech was founded in 2005 by entrepreneur Ray Carter in partnership with researchers who had developed a dietary supplement made from concentrated Aphanizomenon flos-aquae, or AFA, blue-green algae. The original product, StemEnhance, was marketed as nutritional support for the body's natural release of adult stem cells. Stemtech expanded internationally through network marketing and was named to the Inc. 5000 list of fast-growing private companies in 2010 and from 2013 through 2015.

The company now markets nutritional supplements, skincare, oral-care, and pet-wellness products. Its principal brands include StemRelease3, StemFlo, MigraStem, the combined Release-Circulate-Migrate or RCM System, Cellect One skincare products, OraStem toothpaste, and StemPets supplements. These products do not contain stem cells. Stemtech describes them as plant-based formulations designed to support the release, circulation, and migration of the body's own adult stem cells. Its dietary-supplement materials carry the standard disclaimer that the claims have not been evaluated by the FDA and that the products are not intended to diagnose, treat, cure, or prevent disease.

Stemtech sells through Independent Business Partners, or IBPs, who earn commissions from product sales and the purchasing activity of recruited sales organizations. Its TeamBuilder program pays enrollment bonuses when a new IBP purchases a qualifying product package. Company materials describe as much as $200 in combined bonuses associated with a $315 TeamBuilder enrollment, including a $50 enroller bonus and additional TeamBuilder, Turbo TeamBuilder, and matching bonuses. To remain qualified for those bonuses, an IBP must maintain at least 50 points of monthly autoship volume, which may include qualifying VIP-customer autoship purchases.

The residual Prosperity Bonus Plan pays between 7% and 10% on qualifying IBP order volume through as many as seven levels, with an additional 1%, 2%, or 3% infinity bonus at qualifying ranks. The number of payable levels depends on personal volume, personally enrolled active IBPs, and total organizational volume. Current U.S. enrollment packages range from $250 to $969.99. The public materials reviewed do not include an income-disclosure statement showing average or median IBP earnings, the percentage of participants receiving commissions, or earnings after product purchases and other business expenses.

The original Stemtech International filed for Chapter 11 bankruptcy protection in the Southern District of Florida in 2017. The proceeding was converted to Chapter 7 liquidation in March 2018. On May 7, 2018, a new ownership group purchased Stemtech's operating assets from the bankruptcy estate for $400,000 and acquired a related $4 million note. The transaction included trademarks, patents, customer and distributor lists, and ownership interests in several international subsidiaries. The direct-selling business subsequently continued under the Stemtech name rather than closing permanently.