Can you Make Money Selling CBD With HempWorx?
I have several websites, and on one of them I promote the many benefits of Medicinal Cannabis. In particular, the main therapeutic ingredient; CBD.
I was recently contacted by another online CBD affiliate and invited to join the HempWorx program.
Now, I readily admit I hadn’t heard of HempWorx before, so I decided to do some research. After all, It’d be foolish of me to overlook another potential income stream.
In this article, I’ll be sharing with you exactly what I learned, and what my take is on the HempWorx Affiliate Program.
So What is the HempWorx Program?
Can I Make Money with HempWorx?
First of all, let’s clear up one important point. Although HempWorx advertises its sales system as an affiliate program, it’s actually an MLM (Multi-Level Marketing) Scheme.
(There’s another post here, where I discuss how you can promote CBD products as an affiliate marketer)
What’s the difference between MLM and Affiliate Marketing?
An affiliate program involves a website owner adding affiliate links to their website, which include an ID code and will direct a visitor to a suppliers’ website. If the visitor makes a purchase, the site owner will receive a small commission, at no extra cost to the buyer. Aside from occasional promotional messages etc, the affiliate marketer has no other connection with the supplier. Affiliate agreements do not entail any extra costs to either the buyer or the advertiser.
AN MLM agreement, as a matter of course, will involve a Membership Fee of some sort to be paid by the advertiser/distributor. MLMs are generally slanted at least partly, and in most cases predominantly, towards recruiting new members. This is where they make much of their money. Members are usually required to purchase a minimum dollar value of product each month which they are then expected to onsell to their personal customers.
When you introduce new members they are then added to your downline, and you will receive ongoing commissions on all your downline sales as well as a recruiting bonus. *Subject to conditions.
Now here’s the rub: If you fail to make your minimum monthly (or sometimes weekly) purchases you’ll be ineligible to receive any downline commissions.
It doesn’t matter a jot to them if you already have a garage full of stuff you’ve been unable to get rid of. You’ll still be expected to keep up your regular agreed minimum purchases. This usually means a lot of selling on your part. Sometimes donating.
There’s a fine line indeed between MLM schemes and Pyramid Schemes.
So What About HempWorx?
Is HempWorx a scam? I’ll come to that in my summation at the end of this article. For now, let’s look at the details.
Firstly, what products does HempWorx have on offer?
HempWorx products are produced using hemp-derived CBD. The range includes;
- CBD Oils
- CBD Pet Oils
- CBD Infused Dog Treats
- CBD Creams for Anti-Aging and Pain Relief.
If you’re not sure exactly what CBD is, that’s completely understandable. I’ll give a brief rundown on CBD so we’re all on the same page.
The cannabis plant contains many active ingredients. The most widely known of these is THC, or tetrahydrocannabinol. (Try saying that with a mouthful of marbles) THC is the ingredient that produces the euphoric ‘high’ of marijuana.
The main therapeutic ingredient, cannabidiol, is usually referred to as CBD. Recreational marijuana users will usually prefer a strain of cannabis that’s high (excuse the pun) in THC and lower in CBD. For medical applications, strains with high levels of CBD and very small levels of THC are preferred. CBD can also be extracted from industrial hemp, which contains virtually zero THC.
The list of ailments that CBD has been credited with alleviating seems endless. Ongoing research by pharmaceutical companies and government agencies is discovering new medical applications of CBD on a regular basis. For this reason, CBD products and their promotion have become more and more popular of late. In fact, I believe CBD production and promotion are set to be the big niche opportunity in 2019-20 and beyond.
There’s an informative article on CBD applications here. Wikipedia; Medicinal Cannabis.
If you prefer a video, this one is very in-depth. It runs for around 20 minutes, though, so you may want to bookmark it for later.
The HempWorx MLM Opportunity
AS I said earlier, HempWorx promotes its business opportunity as an affiliate program. The first thing I noticed when I started browsing their site was that it’s definitely an MLM scheme.
They seem to be trying very hard to make their ‘business opportunity’ look like an affiliate program, but trust me, HempWorx is an MLM business. I can understand their reluctance to identify as an MLM, as the whole concept has been a little on the nose for a while now. These kinds of deceptive tactics act as a red flag for me right from the start.
How Much Does It Cost to Join HempWorx?
HempWorx Commission Plan
As it is with most MLMs, the HempWorx commission plan is extremely complicated. This link takes you straight to the HempWorx website where the commissions are detailed in a PDF. In all honesty, I had trouble understanding all the intricacies but I’ll try to explain it in plain English for you.
Basically, there are several ways a Hempworx Distributor can earn money. Commissions are earned based on the Business Volume (BV) you have achieved.
Retail customer commissions are paid weekly. Distributors buy products at the wholesale price which is up to 25% off. At this level then, if you sell a product, you will earn the difference between the wholesale and retail prices. To qualify for this, distributors are required to buy one of the starter packs and earn 40 BV points.
Jump Start bonus commissions are paid weekly and go 10 levels deep. The theoretical potential payout is 85% commission on Business Volume (BV). To qualify, you need to buy a starter pack and get at least 40 BV per month.
Binary Team Commissions are paid monthly. Distributors may earn up to 20% commission. In order to qualify, you must get at least 40 BV in personal sales and 300 BV in your pay leg.
As with all MLMs, you’ll see that a huge percentage of the retail price is earmarked as commissions. What this means is that you can guarantee the products are going to be very expensive and therefore difficult to sell.
If all this seems complicated to you, join the club. All MLMs seem to have such confusing commission structures that I’m convinced that they do it that way so they can quote excessively high possible payouts without actually promising anything. In fact, you’ll see their disclaimer absolves them from any claims regarding lack of earnings.
You can get started for as little as $59 with the Entry Pack of Pet Products at $39, + $20 Affiliate Fee, but you could easily end up investing as much as $619 for the ‘Executive Pack’ at $599 plus $20 Affiliate Fee. As it usually is with MLMs, you must commit to buying a pack every single month regardless of whether you use it or not.
This is because if you haven’t bought a pack yourself, you will not be paid for that month of commissions from your downline.
As you can see from the prices above, and the fact that you must recruit others to your team and continue to buy products from the company in order to earn any money from them, this is definitely an MLM business model and not an affiliate program.
They quote a theoretical income of up to one million dollars per month. Trust me, you’d have to be very high up the food chain and have an enormous team under you, all working very hard, to achieve anything close to that.
What about some of the claims being made by current distributors about their huge earnings?
Look, I don’t doubt that there are some who are making good money as HempWorx distributors. In fact, I’m sure some are making buckets of money!? As with most MLM businesses though, the vast majority will make very little and in many cases will actually lose money.
Usually, it’s those who are among the first to jump on a new bandwagon that actually make most of the money. These are usually the ones quoting huge profits they have made as examples of what newcomers can expect.
Do HempWorx Products Work?
Of course they do. I’m not bagging the HempWorx product range. CBD products — especially CBD oil — is, as I said earlier, a growth marketing niche. In addition, CBD edibles (commercially produced snack foods containing measured doses of CBD) will become, I believe, a big part of this niche in the future.
Is HempWorx a Scam?
I did promise to come back to this, didn’t I?
No, HempWorx is definitely NOT a scam, per se. I do take exception to some of their marketing methods and spurious earnings claims, but it isn’t what we would call a scam.
So let’s break it all down …
Pros of HempWorx
CBD Product Popularity
At the risk of repeating myself ad nauseum, let me say again that I believe CBD products are likely to become one of the biggest growth niches this decade and beyond.
Low Initial Startup Cost
You can get started with HempWorx for around $60.
Relatively New MLM
I’m not a fan of MLM opportunities in general, for the reasons I’ve given above. However, it’s much easier to earn money with a newer MLM than one that has been around for several years. Hempworx.com was founded in 2014 by Josh and Jenna Zwagil. That makes them a relative newcomer, though still well established. The big money-making downlines will be well in place. Be aware though, that many MLM companies are later shut down through government intervention.
Cons of HempWorx
It’s important to remember that you must continue buying a pack every single month in order to earn any money. It could become very expensive, very quickly, to continue buying packs month after month unless you can quickly resell the product.
Questionable Parent Company
As detailed in this Reddit post, the company that runs the business opportunity side of HempWorx is My Daily Choice, Inc. This is a company that has been around for quite a while and seems to be very unpopular, even among other MLM business owners.
The Question of Legality
In many areas, products containing CBD are still considered illegal. Selling CBD products directly
to a customer who isn’t legally allowed to buy them could land you in hot water very quickly.
HempWorx claim is that it is 100% legal to own these products anywhere. They may not tell you, however, that they recently stopped selling their products to people living in Canada, as this news article confirms.? Despite HempWorx claiming that it was 100% legal to use and possess their products in Canada, after a government investigation they quickly stopped selling their products to Canadians.
Taking all the implications into account, I have to say I can’t recommend this business, and I’d be unlikely to be getting involved with HempWorx myself.
The legal situation is still unclear in some ways, so I’ll be sticking with promoting CBD through my affiliate website only. My referred customers will be dealing with the suppliers directly, and these companies will not supply to buyers in an area where the product cannot legally be purchased.
In addition, the retail prices my suppliers charge are generally much lower than those quoted by HempWorx. Lower prices mean smaller commissions, yes, but they also mean more sales.
And that’s before I even get started on the whole MLM system!
Have you, or anyone you know, had any experience with Hempworx, or a similar scheme?
Share your experiences with us via the Comments Box below. I’d love to hear from you.
Thanks for visiting my site.
Your friend, Ross. ..