Immunotec Review v2: New owners, same MLM business
BehindMLM first reviewed Immunotec in 2013.
As per reader request we queued Immunotec for a review update back in February.
Today we’re revisiting Immunotec for an updated review to see what’s changed.
The Company
Immunotec launched in 1996 with a range of glutathione focused nutritional supplements.
Circa 2013 the company was headed up by CEO Charles L. Orr, aka Charlie Orr.
In 2017 Immunotec was partially sold off to Immuno Holding, a Mexican asset manager run by Mauricio Domenzain in partnership with Nexxus Capital.
If I’m understanding correctly, the Immuno Holding sale came about following two Immunotec founding shareholders wanting to cash out.
The agreement reached with Immuno Holding concludes a strategic review process that was initiated by Immunotec in response to the desire expressed by Charles Roberts and Dieter Beer, two of its founding shareholders, to monetize their interests in the Company as part their personal estate planning while ensuring that the new owners possess the resources and experience required to drive the Company’s continued growth in the future.
Mr. Roberts will remain as Chairman Emeritus of Immunotec and Mr. John Molson, who is also a founding shareholder, will continue as a key member of the executive team, helping ensure the continuity of the R&D culture originally established by Dr. Gustavo Bounous and Dr. Patricia Kongshavn.
These founding shareholders, who created Immunotec in 1996, own or control an aggregate of 58.5% of the outstanding Shares.
The Immuno Holding deal saw Immunotec go from a Canadian publicly traded company to private ownership.
The 2017 agreement with Immuno Holding saw Mauricio Domenzain replace Charles Orr as Immunotec’s CEO.
Mauricio Domenzain (right) is reported to have an MLM history prior to Immunotec…
Mr. Domenzain is a former top executive of a prominent global direct selling company, with relevant expertise in the Mexican and US markets and a passion for the network marketing industry.
…but I was unable to verify this. A Google search for “Maurico Domenzain” and “mlm” prior to 2017 returns no relevant results.
Immunotec doesn’t provide a corporate address on its website. On LinkedIn Immunotec represents it is based out of Texas in the US.
Immunotec’s Products
Immunotec market a range of supplements targeting immune support, daily wellness, healthy aging, weight management, sports performance, stress and mood, brain health and sleep and restore.
Immunotec’s products have a focus on glutathione, which the company states
enhances your immune system, is a key detoxification enzyme, provides cellular energy and acts as your body’s master antioxidant.
Immunotec’s flagship product is Immunocal, which comes in a number of varieties:
- Immunocal – “an all-natural protein with the highest biological value of any edible protein, and clinically proven to raise glutathione levels”, retails at $112 for a box of 30 single-serve pouches
- Immunocal Platinum – “offers a comprehensive solution for promoting healthy aging”, retails at $164 for a box of 30 single-serve pouches
- Immunocal Support – “advanced formula is designed to optimize immune and cardiovascular health while enhancing overall physical performance”, retails at $169 for a box of 30 single-serve pouches
- Immunocal Booster – “made with more than 50 fruits and vegetables”, retails at $81 for a box of 30 single-serve sachets
- Immunocal Booster Energy Performance – “the clean, fast-acting, healthy energy you’ve been searching for”, retails at $85 for a box of 30 single-serve sachets
The rest of Immunotec’s supplement range can be viewed on their website with cataloged retail pricing.
Immunotec’s Compensation Plan
Immunotec’s compensation plan pays on retail sales and product orders from recruited affiliates.
Immunotec Affiliate Ranks
There are seven affiliate ranks within Immunotec’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up as an Immunotec affiliate
- Associate – generate 400 PV in a month and then 180 PV a month and then 400 PV a month to maintain
- Venture – generate 400 PV and 2000 GV in a month and then 400 PV a month to maintain
- Silver – recruit and maintain three Venture or higher ranked affiliates, maintain 400 PV a month and generate 6000 QTOV a month (max 2700 QTOV per recruitment leg)
- Gold – maintain three personally recruited Venture or higher ranked affiliates, generate 600 PV and 30,000 QTOV a month (max 13,500 QTOV per recruitment leg)
- Diamond – recruit and maintain four Venture or higher ranked affiliates, maintain 600 PV a month and generate 125,000 QTOV a month (max 2700 QTOV per recruitment leg)
- Executive Diamond – maintain four personally recruited Venture or higher ranked affiliates, maintain 600 PV a month and generate 500,000 QTOV a month (max 225,000 QTOV per recruitment leg)
- Platinum – maintain four personally recruited Venture or higher ranked affiliates, maintain 600 PV a month and generate 1,500,000 QTOV a month (max 675,000 QTOV per recruitment leg)
PV stands for “Personal Volume”. PV is calculated as the sum total of an affiliate’s referred retail product orders and their own personal orders.
GV stands for “Group Volume”. Immunotec defines GV as an affiliate’s own PV and that of their personally recruited affiliates who haven’t qualified at Associate or higher yet.
QTOV stands for “Qualifying Total Organization Volume”. Immunotec defines QTOV as PV generated by an affiliate and their downline.
Retail Commissions
Immunotec pays a 5% to 30% commission on retail customer orders.
Customer Volume Bonus
Immunotec’s Customer Volume Bonus pays on retail sales volume generated each month:
- refer and maintain two active retail customers, generate 1000 to 1999 PV in retail sales volume and receive a 5% bonus on the volume
- refer and maintain four active retail customers, generate 2000 to 2999 PV in retail sales volume and receive a 10% bonus on the volume
- refer and maintain six active retail customers, generate 3000 or more PV in retail sales volume and receive a 20% bonus on the volume
An active retail customer is a retail customer who has placed an order in the past month.
Business Builder Bonus
Immunotec’s Business Builder Bonus is a recruitment bonus on orders placed by recruited affiliates within their first month:
- recruit one affiliate in a month and receive a 5% Business Builder Bonus
- recruit two affiliates in a month and receive a 10% Business Builder Bonus
- recruit three or more affiliates in a month and receive a 20% Business Builder Bonus
Note that autoship orders are excluded from the Business Builder Bonus.
Residual Commissions
Immunotec pays residual commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Immunotec caps payable unilevel team levels at eight.
Residual commissions are paid as a percentage of sales volume generated across these eight levels based on rank:
- Associates earn a 5% commission on level 1 (personally recruited affiliates)
- Ventures earn a 5% commission on levels 1 to 3
- Silvers earn a 5% commission on level 1, 10% on level 2 and 5% on levels 3 and 4
- Golds earn a 5% commission on level 1, 10% on level 2 and 7% on levels 3 to 5
- Diamonds earn a 5% commission on level 1, 10% on level 2 and 7% on levels 3 to 6
- Executive Diamonds earn a 5% commission on level 1, 10% on level 2, 7% on levels 3 to 6 and 2% on level 7
- Platinums earn a 5% commission on level 1, 10% on level 2, 7% on levels 3 to 6 and 2% on levels 7 and 8
Rank Achievement Bonuses
Immunotec rewards affiliates for qualifying at Silver and higher with the following Rank Achievement Bonuses:
- qualify at Silver and receive $200 ($400 if qualified for within first two months)
- qualify at Gold and receive $500 ($1000 if qualified for within first four months)
- qualify at Diamond and receive $2500 ($5000 if qualified for within first eight months)
- qualify at Executive Diamond and receive $5000 ($20,000 if qualified for within first twelve months)
- qualify at Platinum and receive $10,000 ($100,000 if qualified for within first twenty-four months)
Note that time-specific Rank Achievement Bonuses are paid out in monthly installments (up to six months for Platinum).
Rank must be maintained for the duration of time-specific qualification in order to keep receiving the higher Rank Achievement Bonus each month.
Finally, an upline matching Rank Achievement Bonus is also paid out:
- personally recruited affiliate qualifies at Gold = $250 bonus ($500 time-specific)
- personally recruited affiliate qualifies at Diamond = $1000 bonus ($3000 time-specific)
- personally recruited affiliate qualifies at Executive Diamond = $2500 bonus ($7500 time-specific)
- personally recruited affiliate qualifies at Platinum = $10,000 bonus ($35,000 time-specific)
Note that the recruiting affiliate must be at the same or higher rank than what is being qualified for (e.g. your recruit qualifies at Gold, you need to be Gold or higher).
If the recruiting affiliate isn’t rank qualified, the matching Rank Achievement Bonus passes upline to the first rank-qualified affiliate.
Senior Platinum Bonus Pool
Immunotec takes 0.5% of company-wide sales volume and places it into the Senior Platinum Bonus Pool.
Platinum and higher ranked affiliates qualify for shares in the pool when downline affiliates qualify at Platinum:
- personally recruited affiliate qualifies at Platinum = 1 share
- second level unilevel team affiliate qualifies at Platinum = 0.75 share
- third level unilevel team affiliate qualifies at Platinum = 0.5 share
- fourth level unilevel team affiliate qualifies at Platinum = 0.25 share
No shares are awarded for Platinum affiliates from the fifth level of the unilevel team.
Joining Immunotec
Basic Immunotec affiliate membership costs $36.
The following product pack affiliate membership options are also available:
- Pro Pack – $151
- Immunity Boost Starter Pack – $309
- Health BBB Starter Pack – $309
- Pro Pack – $483
- Immuno Health BBB – $485
- Shake It Up Starter Pack – $599
- Mood & Immunity Starter Pack – $599
- Health Booster Performance – $599
- Essential Starter Pack – $1299
- Total Wellness Starter Pack – $1299
- Pro Pack – $1523
Iummunotec Conclusion
Other than some price adjustments, a box of Immunotec climbing to $112 from $99, not a lot has changed at Immunotec since 2013.
That’s arguably a good thing, as it suggests Immunotec has been and is on to something.
That said, glutathione supplements are everywhere and Immunotec’s products do feel a bit overpriced. Sure, you might miss out on some proprietary blends but if glutathione is the active ingredient you’re looking for, definitely shop around to compare.
Addressing specific critiques in BehindMLM’s original Immunotec review:
- retail commissions are now properly defined as actual front-end sales to retail customers;
- autoship focus is potentially still a problem; and
- potential inventory loading is still a problem
Inventory loading is most evident in Immunotec’s sign up options. The company reminds prospective affiliates that ” Venture Consultants require at least 2,000 PGV (Personal Group Volume).”
To that end Immunotec markets its affiliate sign up packs as a way to “kick start your business and maximize savings.” I might be reading into the wording but does anyone really need twenty-seven boxes of Immunotec products to get started?
On that note, Immunotec’s PV requirements are noticeably higher than what I’m used to seeing. 400 PV a month starts at the second rank, Associate, and climbs to 600 PV for the higher ranks.
This is both good and bad. It’s good if an Immunotec is qualifying each month primarily through retail sales (that’s comparatively a lot of retail sales volume to maintain).
It’s bad if Immunotec affiliates are qualifying on PV primarily through their own orders.
For their part Immunotec does nothing to discourage inventory loading. The simple fix is baking in fixed retail volume amounts into the required PV. At 400 PV this could be a minimum of 300 PV in retail volume.
Immunotec haven’t done this in the decades the company has been around for. This undermines any perceived focus on retail sales.
That leaves us with autoship recruitment, which was a concern over a decade ago.
Other than that, most of what I wrote about Immunotec back in 2013 still applies today. In fact it’s hard to not just copy and paste our 2013 review conclusion here.
To sum up;
- have a sniff around on what your glutathione supplement options are;
- check with your potential upline as to how they’re meeting their monthly PV requirement (own orders = bad, retail sales = good); and
- don’t fall into the “bigger order = qualify for commissions and bonuses” trap when you sign up.
If you’re unsure you’ll be able to qualify for Associate off the bat, that’s OK. It’s part of what building an MLM business is about.
Set a goal of 400 PV a month and limit yourself to no more than 100 to 200 PV a month for your own order(s). See how you’re doing after three months and evaluate.
Good luck!