Root doesn’t present any info on its web site about who owns or runs the corporate.
I grew to become conscious of the MLM alternative after CEO Clayton R Thomas reached out to me by way of electronic mail.
On his LinkedIn profile, Thomas cites himself as Root’s Chairman of the Board since July 2019. In advertising movies Thomas discloses he’s Root’s Founder.
Why this government info isn’t supplied on Root’s web site is unclear.
Along with Root, Thomas (proper) can also be the President of Personalised Healthcare Answer, LLC, Unisource Well being Inc and DC2.
As per PHS’ web site, the corporate
connects healthcare suppliers with state-of-the-art diagnostic laboratories performing Pharmacogenomic (PGx) testing, Toxicology and Wellness screens, and Molecular Testing.
Unisource Well being and DC2 additionally function within the medical area of interest.
So far as I can inform, Root is Clayton Thomas’ first MLM enterprise as an government.
Learn on for a full overview of Root’s MLM enterprise alternative.
Root’s Merchandise
Root markets a variety of dietary supplements they confer with as “treatments”.
- Clear Slate – “makes use of Zeolite … in a proprietary patent pending formulation, to assist wipe your cells clear of the toxins making an attempt to take them over”, retails at $69 for a 1 fl. oz. bottle (30 ml)
- Zero-In – “ZERO-IN will assist lead you out of mind fog and into laser sharp psychological focus”, retails at $79 for a field of 60 capsules
Be aware that Root’s merchandise are solely out there for buy by associates.
Root’s Compensation Plan
Root’s compensation plan revolves round associates buying the corporate’s merchandise.
Commissions are paid as they recruit others who do the identical.
MLM Fee Qualification
To qualify for MLM commissions a Root affiliate should guarantee 55% of their PV is generated by way of recruited non-MLM fee certified associates.
PV stands for “Private Quantity” and is gross sales quantity generated by an affiliate’s purchases.
Root Affiliate Ranks
There are forty-four affiliate ranks inside Root’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- Affiliate – enroll as a Root affiliate and recruit two Associates
- Certified Affiliate – qualify for MLM commissions (see above)
- Tremendous Affiliate – preserve MLM fee qualification and generate and preserve 300 GV a month
- Tremendous Affiliate I – preserve MLM fee qualification and generate and preserve 500 GV a month
- Tremendous Affiliate II – preserve MLM fee qualification and generate and preserve 700 GV a month
- Tremendous Affiliate III – preserve MLM fee qualification and generate and preserve 900 GV a month
- Tremendous Affiliate IV – preserve MLM fee qualification and generate and preserve 1200 GV a month
- Tremendous Affiliate V – preserve MLM fee qualification and generate and preserve 1600 GV a month
- Bronze Tremendous Affiliate – preserve MLM fee qualification and generate and preserve 2000 GV a month
- Bronze Tremendous Affiliate I – preserve MLM fee qualification and generate and preserve 2500 GV a month
- Bronze Tremendous Affiliate II – preserve MLM fee qualification and generate and preserve 3000 GV a month
- Bronze Tremendous Affiliate III – preserve MLM fee qualification and generate and preserve 3500 GV a month
- Bronze Tremendous Affiliate IV – preserve MLM fee qualification and generate and preserve 4000 GV a month
- Bronze Tremendous Affiliate V – preserve MLM fee qualification and generate and preserve 4500 GV a month
- Silver Tremendous Affiliate – preserve MLM fee qualification and generate and preserve 5000 GV a month
- Silver Tremendous Affiliate I – preserve MLM fee qualification and generate and preserve 7500 GV a month
- Silver Tremendous Affiliate II – preserve MLM fee qualification and generate and preserve 10,000 GV a month
- Silver Tremendous Affiliate III – preserve MLM fee qualification and generate and preserve 12,500 GV a month
- Silver Tremendous Affiliate IV – preserve MLM fee qualification and generate and preserve 15,000 GV a month
- Silver Tremendous Affiliate V – preserve MLM fee qualification and generate and preserve 17,500 GV a month
- Gold Tremendous Affiliate – preserve MLM fee qualification and generate and preserve 20,000 GV a month
- Gold Tremendous Affiliate I – preserve MLM fee qualification and generate and preserve 25,000 GV a month
- Gold Tremendous Affiliate II – preserve MLM fee qualification and generate and preserve 30,000 GV a month
- Gold Tremendous Affiliate III – preserve MLM fee qualification and generate and preserve 35,000 GV a month
- Gold Tremendous Affiliate IV – preserve MLM fee qualification and generate and preserve 40,000 GV a month
- Gold Tremendous Affiliate V – preserve MLM fee qualification and generate and preserve 45,000 GV a month
- Platinum Tremendous Affiliate – preserve MLM fee qualification and generate and preserve 50,000 GV a month
- Platinum Tremendous Affiliate I – preserve MLM fee qualification and generate and preserve 75,000 GV a month
- Platinum Tremendous Affiliate II – preserve MLM fee qualification and generate and preserve 100,000 GV a month
- Platinum Tremendous Affiliate III – preserve MLM fee qualification and generate and preserve 125,000 GV a month
- Platinum Tremendous Affiliate IV – preserve MLM fee qualification and generate and preserve 150,000 GV a month
- Platinum Tremendous Affiliate V – preserve MLM fee qualification and generate and preserve 175,000 GV a month
- Diamond Tremendous Affiliate – preserve MLM fee qualification and generate and preserve 200,000 GV a month
- Diamond Tremendous Affiliate I – preserve MLM fee qualification and generate and preserve 250,000 GV a month
- Diamond Tremendous Affiliate II – preserve MLM fee qualification and generate and preserve 300,000 GV a month
- Diamond Tremendous Affiliate III – preserve MLM fee qualification and generate and preserve 350,000 GV a month
- Diamond Tremendous Affiliate IV – preserve MLM fee qualification and generate and preserve 400,000 GV a month
- Diamond Tremendous Affiliate V – preserve MLM fee qualification and generate and preserve 450,000 GV a month
- Elite Tremendous Affiliate – preserve MLM fee qualification and generate and preserve 500,000 GV a month
- Elite Tremendous Affiliate I – preserve MLM fee qualification and generate and preserve 750,000 GV a month
- Elite Tremendous Affiliate II – preserve MLM fee qualification and generate and preserve 1,000,000 GV a month
- Elite Tremendous Affiliate III – preserve MLM fee qualification and generate and preserve 1,250,000 GV a month
- Elite Tremendous Affiliate IV – preserve MLM fee qualification and generate and preserve 1,500,000 GV a month
- Elite Tremendous Affiliate V – preserve MLM fee qualification and generate and preserve 1,750,000 GV a month
GV stands for “Group Quantity” and is the sum whole PV generated by an affiliate (capped at 500 PV) and their downline.
Residual Commissions
Root pays residual commissions down two ranges of recruitment, by a unilevel compensation construction.
Residual fee gross sales quantity is generated by way of bought by associates recruited into the unilevel crew.
- Associates (each common associates and Affiliate rank certified) obtain 15% on stage 1 (personally recruited associates)
- Certified Associates and better obtain 15% on stage 1 and 10% on stage 2
Root Rewards
Root Rewards is a each day fee tied to rank:
- Tremendous Associates obtain 50 cents a day
- Tremendous Affiliate I ranked associates obtain 75 cents a day
- Tremendous Affiliate II ranked associates obtain $1 a day
- Tremendous Affiliate III and IV ranked associates obtain $2 a day
- Tremendous Affiliate Vs and Bronze Tremendous Associates obtain $3 a day
- Bronze Tremendous Affiliate I ranked associates obtain $4 a day
- Bronze Tremendous Affiliate II and III ranked associates obtain $5 a day
- Bronze Tremendous Affiliate IV ranked associates obtain $6 a day
- Bronze Tremendous Affiliate V ranked associates obtain $7 a day
- Silver Tremendous Associates obtain $8 a day
- Silver Tremendous Affiliate I ranked associates obtain $12 a day
- Silver Tremendous Affiliate II ranked associates obtain $16 a day
- Silver Tremendous Affiliate III ranked associates obtain $20 a day
- Silver Tremendous Affiliate IV ranked associates obtain $24 a day
- Silver Tremendous Affiliate V ranked associates obtain $28 a day
- Gold Tremendous Associates obtain $32 a day
- Gold Tremendous Affiliate I ranked associates obtain $40 a day
- Gold Tremendous Affiliate II ranked associates obtain $48 a day
- Gold Tremendous Affiliate III ranked associates obtain $56 a day
- Gold Tremendous Affiliate IV ranked associates obtain $64 a day
- Gold Tremendous Affiliate V ranked associates obtain $72 a day
- Platinum Tremendous Associates obtain $80 a day
- Platinum Tremendous Affiliate I ranked associates obtain $120 a day
- Platinum Tremendous Affiliate II ranked associates obtain $160 a day
- Platinum Tremendous Affiliate III ranked associates obtain $200 a day
- Platinum Tremendous Affiliate IV ranked associates obtain $240 a day
- Platinum Tremendous Affiliate V ranked associates obtain $280 a day
- Diamond Tremendous Associates obtain $320 a day
- Diamond Tremendous Affiliate I ranked affilates receivei $400 a day
- Diamond Tremendous Affiliate II ranked associates obtain $480 a day
- Diamond Tremendous Affiliate III ranked associates obtain $560 a day
- Diamond Tremendous Affiliate IV ranked associates obtain $640 a day
- Diamond Tremendous Affiliate V ranked associates obtain $720 a day
- Elite Tremendous Associates obtain $800 a day
- Elite Tremendous Affiliate I ranked associates obtain $1200 a day
- Elite Tremendous Affiliate II ranked associates obtain $1600 a day
- Elite Tremendous Affiliate III ranked associates obtain $2000 a day
- Elite Tremendous Affiliate IV ranked associates obtain $2400 a day
- Elite Tremendous Affiliate V ranked associates obtain $2800 a day
Matching Bonus
Root pays a Matching Bonus on Root Rewards acquired by unilevel crew associates.
The Matching Bonus is capped down 5 ranges of recruitment, primarily based on rank:
- Certified Affiliate to Tremendous Affiliate V receives a 25% match on stage 1
- Bronze Tremendous Affiliate to Bronze Tremendous Affiliate V receives a 25% match on stage 1 and 20% on stage 2
- Silver Tremendous Affiliate to Silver Tremendous Affiliate V receives a 25% match on stage 1, 20% on stage 2 and 15% on stage 3
- Gold Tremendous Affiliate to Gold Tremendous Affiliate V receives a 25% match on stage 1, 20% on stage 2, 15% on stage 3 and 10% on stage 4
- Platinum Tremendous Affiliate and better receives a 25% match on stage 1, 20% on stage 2, 15% on stage 3, 10% on stage 4 an 5% on stage 5
Harvest Rewards
Harvest Rewards are a month-to-month rank-based bonus, paid on the final day of every month:
- Silver Tremendous Associates obtain $100
- Silver Tremendous Affiliate I ranked associates obtain $150
- Silver Tremendous Affiliate II ranked associates obtain $200
- Silver Tremendous Affiliate III ranked associates obtain $250
- Silver Tremendous Affiliate IV ranked associates obtain $300
- Silver Tremendous Affiliate V ranked associates obtain $350
- Gold Tremendous Associates obtain $400
- Gold Tremendous Affiliate I ranked associates obtain $500
- Gold Tremendous Affiliate II ranked associates obtain $600
- Gold Tremendous Affiliate III ranked associates obtain $700
- Gold Tremendous Affiliate IV ranked associates obtain $800
- Gold Tremendous Affiliate V ranked associates obtain $900
- Platinum Tremendous Associates obtain $1000
- Platinum Tremendous Affiliate I ranked associates obtain $1500
- Platinum Tremendous Affiliate II ranked associates obtain $2000
- Platinum Tremendous Affiliate III ranked associates obtain $2500
- Platinum Tremendous Affiliate IV ranked associates obtain $3000
- Platinum Tremendous Affiliate V ranked associates obtain $3500
- Diamond Tremendous Associates obtain $4500
- Diamond Tremendous Affiliate I ranked associates obtain $5500
- Diamond Tremendous Affiliate II ranked associates obtain $6500
- Diamond Tremendous Affiliate III ranked associates obtain $7500
- Diamond Tremendous Affiliate IV ranked associates obtain $8500
- Diamond Tremendous Affiliate V ranked associates obtain $9500
- Elite Tremendous Associates obtain $12,500
- Elite Tremendous Affiliate I ranked associates obtain $15,000
- Elite Tremendous Affiliate II ranked associates obtain $20,000
- Elite Tremendous Affiliate III ranked associates obtain $25,000
- Elite Tremendous Affiliate IV ranked associates obtain $30,000
- Elite Tremendous Affiliate V ranked associates obtain $35,000
Becoming a member of Root
Root affiliate membership prices will not be disclosed on the corporate’s web site or of their compensation plan.
Root’s Insurance policies and Procedures point out an “Non-obligatory Affiliate Product Pack”. Once more, particulars reminiscent of prices will not be supplied.
Conclusion
Root falls into the lure of getting everybody enroll as an affiliate, and representing that affiliate’s who don’t recruit are retail clients.
My first purple flag was thrown up after I realized if you happen to attempt to purchase one thing from Root’s on-line retailer, or “need to grow to be a part of the story” as an affiliate, you’re redirected to the identical registration kind.
On that kind you need to “consent to the ROOT Rewards Plan” and supply a username. The username is used to generate an affiliate referral hyperlink.
Once you enroll, you don’t qualify for MLM commissions off the bat – however you do earn a 15% fee on purchases by different retail clients.
With a bit extra poking round Root’s Insurance policies and Procedures, I used to be in a position to verify for sure that true retail doesn’t exist.
There is just one income-generating exercise: the acquisition and resale of Root Wellness services.
From a compliance perspective, retail clients can’t be a part of the compensation plan. They can’t underneath any circumstances have the ability to earn any commissions or monetary bonuses.
Of their respective regulatory lawsuits, each Vemma and Herbalife argued with the FTC that associates who haven’t recruited are retail clients.
Vemma’s argument was shot down in court docket. Herbalife’s FTC settlement pressured them to cease representing associates who hadn’t recruited have been retail clients.
From a regulatory perspective, what associates do with bought merchandise is irrelevant.
Root might make a case in the event that they accounted for each greenback of merchandise bought by associates and resold with verified receipts, however they make no declare of this of their Insurance policies and Procedures.
Ought to the FTC examine and launch a case, the result would doubtless be the identical as Vemma and Herbalife.
With that in thoughts, Root’s 55% rule is meaningless. Be it an affiliate buying product or affiliate’s they’ve recruited product, the purchases are nonetheless counted as affiliate purchases.
These types of guidelines are presupposed to implement retail buyer buy quantity, which as we’ve coated isn’t a part of Root’s compensation plan.
Not a lot a compliance subject however one thing I’m going to level out anyplace, is Root’s ridiculous affiliate rank depend.
Root having forty-four affiliate ranks is the results of each day pay as an alternative of direct volume-based fee calculation.
Commissions are nonetheless primarily based on quantity however as an alternative of a uncooked share you have got steps. The quantity of steps Root have created to make sure they aren’t overpaying on any tier has fully blown out their affiliate ranks.
Once more this isn’t a compliance subject but it surely’s actually pointless bloat.
Transferring onto Root’s merchandise, the very first thing I seen is that they’re known as “treatments”.
ROOT treatments are right here to assist retrain our our bodies to detox, cleanse, focus and calm down in additional pure, much less artificial methods.
The essential FDA disclaimer relating to dietary supplements is:
This assertion has not been evaluated by the Meals and Drug Administration.
This product just isn’t meant to diagnose, deal with, remedy, or forestall any illness.
This disclaimer does seem within the footer of Root’s on-line strorefront.
The issue is the definition of treatment is “a drugs or therapy for a illness or damage.”
Root have the FDA disclaimer up however on the identical time are making the precise claims the disclaimer says they aren’t.
As to the merchandise themselves, you’re mainly zeolite, turmeric, pine bark and velvet bean seed dietary supplements.
These components are available in dietary supplements so do your homework on what’s out there and price-compare.
One ultimate factor to notice is if you happen to do handle to resell merchandise, Root’s strategy to returns:
We’ll change to you a similar product when the unused portion of the product together with the signed gross sales receipt have been acquired by Root Wellness.
Root Wellness is not going to refund Associates for retail buyer returns.
The corporate will solely ever substitute product. Precise refunds aren’t out there.
You as a Root affiliate will likely be required to pay your buyer their refund out of your personal hip pocket.
All in all Root’s compliance points are sufficient to warrant concern. The corporate is new sufficient that these points will be addressed, nevertheless not with out a compensation overhaul.
When you’re studying this overview just a few months from publication and nothing’s modified, strategy with warning.