CBD oil without retail focus


Wellness BioSciences RX operates in the nutritional supplement MLM niche. The company does not provide a corporate address on its website.

That said, Wellness BioSciences’ website domain was registered through a PO Box in Texas.

Heading up Wellness BioSciences RX are co-founders Barry Cocheu and Sean M. Baker.

Barry Cocheu recently featured on BehindMLM as a defendant in a lawsuit filed by AmeriSciences.

Cocheu was CEO of AmeriSciences, which as a company was in “dire financial straits” by the end of 2011.

Cocheu bailed and joined Organo Gold in 2012. AmeriSciences folded its MLM operations later that same year.

Judgment in AmeriSciences’ lawsuit saw Cocheu held jointly liable for $3.4 million dollars plus $610,482 in prejudgment interest. He also had to pay $150,000 in additional punitive damages.

Wellness BioSciences RX credits Sean M. Baker with being a

successful entrepreneur, and business owner for 15 years.

An expert at developing, cultivating, and inspiring sales professionals and sales organizations.

As a distributor within the direct sales/network marketing industry, Mr. Baker generated in excess of $11 million dollars inside of a $400 million dollar company.

In a public webinar published to Wellness BioSciences RX Baker reveals he met Barry Cocheu in 2002. The timing fits with Baker having come up through AmeriSciences too.

Read on for a full review of the Wellness BioSciences RX MLM opportunity.

Wellness BioSciences RX’s Products

Wellness BioSciences RX markets a range of CBD oil products.

Our products specialize in the development of the highest grade 100% USA grown hemp oil rich in CBD, CBDA, CBG, CBN, CBC, and terpenes.

Our hemp farms are located in the luscious plains of Kentucky where the environment is well-suited to grow healthy and nutrient dense hemp.

Our extraction process is simple, clean, and overseen by Ph.D. certified scientists and extractors.

Other than the image above of Wellness BioSciences’ product range, no specific product details or retail pricing is provided.

A marketing presentation I viewed on Wellness BioSciences RX’s YouTube channel revealed the following products:

  • WBRx Energy – CBD oil drops
  • WBRx Sleep – CBD oil drops (for sleep?)
  • WBRx Relief Balm – “apply directly to the sore or aching area for instant relief”
  • WBRx Balance Soft Gels – gel capsule CBD oil supplement

As with Wellness BioSciences RX’s website, no retail pricing is provided.

 

Update 5th October 2019 – I was doing a bit of post published research and came across a second Wellness Biosciences RX website.

No idea why the company has two (maybe more) websites, but retail pricing for their products as provided on the second website are as follows:

  • WBRx Energy – $109.99 for a 1 oz bottle
  • WBRx Sleep – $109.99 for a 1 oz bottle
  • WBRx Relief Balm – $99.99 for a tub
  • WBRx Balance – $119.99 for a bottle of thirty capsules

Wellness BioSciences RX’s Compensation Plan

Wellness BioSciences RX affiliates are paid to sell products to retail customers. They are also paid to recruit new affiliates.

Residual commissions are paid on sales volume generated throughout a unilevel team. Additional performance-based bonuses are also available.

Wellness BioSciences RX Affiliate Ranks

There are seven affiliate ranks within Wellness BioSciences RX’s compensation plan.

Along with their respective qualification criteria they are as follows:

  • IBP – generate up to $2999.99 GV a month
  • Manager – generate $3000 to $14,999 GV a month
  • Executive – generate $15,000 to $29,999 GV a month
  • Director – generate $30,000 to $59,999 GV a month
  • Regional Director – generate $60,000 to $119,999 GV a month
  • National Marketing Director – generate and maintain $120,000 to $239,999 GV over a rolling two-month period
  • President’s Partnership Club – generate and maintain $240,000 or more GV over a rolling four-month period

GV stands for “Group Volume” and is sales volume generated by an affiliate’s purchases and that of their retail customers.

Whereas PV (Personal Volume) counts only an affiliate’s own efforts, GV is the sum total of downline GV.

Note that Wellness BioSciences RX appears to calculate GV using an orthodox formula.

As per the GV table to the right, individual PV is calculated at 100% but downline PV is only calculated at 50%.

Retail Commissions

Wellness BioSciences RX affiliates earn a retail commission on product sales to retail customers.

Production Bonuses

The Production Bonus is a percentage bonus on retail volume generated by Director and higher ranked affiliates.

  • Directors earn a 5% Production Bonus
  • Regional Directors earn a 10% Production Bonus
  • National Marketing Directors earn a 15% Production Bonus
  • President’s Partnership Clubs earn a 20% Production Bonus

Recruitment Commissions

Wellness BioSciences RX affiliates earn a commission when they recruit new affiliates.

Recruitment commission rates are determined by how much a newly recruited Wellness BioSciences RX affiliate spends when they sign up:

  • recruit a new Starters Pak affiliate and earn $50
  • recruit a new Builders Pak affiliate and earn $100

Residual Commissions

Wellness BioSciences RX 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.

Wellness BioSciences RX caps payable unilevel levels at six.

  • Managers earn 7% on level 1 (personally recruited affiliates)
  • Executives earn 7% on levels 1 and 2
  • Directors earn 7% on levels 1 to 3
  • Regional Directors earn 7% on levels 1 to 4
  • National Marketing Directors earn 14% on levels 1 to 5
  • President’s Partnership Clubs earn 21% on levels 1 to 6

Infinity Bonus

National Marketing Director and President’s Partnership Club ranked affiliates qualify for the Infinity Bonus.

The Infinity Bonus is a volume bonus starting at level 7 of the unilevel team.

  • National Marketing Directors earn a 1% Infinity Bonus
  • President’s Partnership Clubs earn a 2% Infinity Bonus

The Infinity Bonus starts at level 7 and pays on volume the entire length of each unilevel leg.

Car and Luxury Travel Bonuses

National Marketing Director and President’s Partnership Club ranked affiliates can qualify for a Car and Luxury Travel Bonus.

Specific details on either bonus are not provided.

Joining Wellness BioSciences RX

Wellness BioSciences RX affiliate membership is available at two price-points:

  • Starters Pak ($195) – affiliate membership plus two bottles of WBRx Balance
  • Builders Pak ($495) – adds mobile app and more Wellness BioSciences RX products

Conclusion

Wellness BioSciences RX claims to be

a global innovator in the delivery of Science-Based Consumables in partnership with Health Care Providers directly to their respective patient base.

Which is a strange pitch to make for an MLM company.

As a distributor, how is my own company competing against me with Health Care Providers a selling point?

I suppose if I don’t have access to Health Care Providers then it could be evidence of retail viability… but it just seems an odd descriptor.

That aside, Wellness BioSciences RX wants to stake its place in the arguably already crowded CBD oil MLM niche.

The products are based on CBD oil, which each company emphatically goes on about being derived from pure hemp oil etc. etc.

There’s nothing new there but that’s not to discount any of Wellness BioSciences RX’s products.

Although proper evaluation is certainly difficult without pricing.

What I’m not necessarily understanding is why there’s marketing material for the company dating back to March, and yet Wellness BioSciences RX still doesn’t appear to have fully launched.

Has the last seven months really been about paying for an affiliate Pak and just recruiting others who do the same?

Wellness BioSciences RX runs the very real risk of turning into a typical autoship recruitment opportunity.

Retail is possibly but not overtly encouraged. Instead recruitment appears to be the primary focus.

In one Wellness BioSciences RX presentation I came across when researching for this review, Barry Cocheu repeatedly emphasized affiliates could make back their initial costs through recruitment.

Let’s say for example that you started with a Starter Pak. If you have four other people that you’ve sponsored … that directly you’ve gone out and offered that same opportunity to, you basically will have recovered your cost of doing business.

If you start with a Builder Pak, then you go out and you offer that opportunity to five other people, then you will have completely recovered your cost of doing business – just by offering people the business opportunity.

Just to add to that, in the same presentation at no point did Cocheu clarify retail commission rates. I included it in our compensation plan analysis as a courtesy.

Wellness BioSciences RX encourages self-consumption by increasing wholesale pricing paid on affiliate orders by rank.

The flat 10% discount increases to 15% at the Manager rank and then 20% at the Manager and higher ranks.

The one retail bonus, the Production Bonus, doesn’t start until the Manager rank. Why?

Surely you’d want to foster a retail focus early on? By the time a Wellness BioSciences RX affiliate hits Manager they’re already generating at least $3000 GV a month.

What’s the bet that on average, the majority of that GV is going to be downline purchase volume?

All in all these days CBD oil is everywhere. Wellness BioSciences RX does itself no favors by withholding retail pricing on their website.

As long as retail takes a back seat to recruitment to “recover the cost of doing business”, I can’t see Wellness BioSciences RX competing legitimately as an MLM company.

Approach with caution.