CBD oil is big news right now. There are claims that it works for many ailments from pain relief, anxiety and depression to heart disease, diabetes and acne. Given that people will stop at nothing to find a cure for their ailments, should you consider joining Hempworx MLM?
Although I am not affiliated to Hempworx or MyDailyChoice, this site includes affiliate links – if you buy through my link I get paid a commission but the price remains the same for you. Thank you for your support.
Owners: Josh and Jenna Zwagil
Product range: CBD products for people and pets
Price to join: Free to join. Product packages cost $39 – $599
How to join: Check our the details here
Overall rating: 4.5 / 5
Who are Josh and Jenna Zwagil?
I first became aware of Jenna Zwagil through Facebook. Although I didn’t pay much attention to any mention of CBD oil, I did enjoy her videos about personal development and book recommendations. I knew she was ‘someone’ in network marketing / MLM, but didn’t know until I started researching for this post that she was the founder of Hempworx!
Jenna met Josh in 2014 when she was in the process of quitting network marketing. At that time he was thinking about starting his own network marketing business, persuaded her to join him and together they launched My Daily Choice – a set of wellness products that has had great success to date.
When Jenna became ill and was diagnosed with Celiac disease, she decided to try a particularly high grade of CBD Oil that was produced on a local farm. She had no expectation of it working, but within one week she was feeling dramatically better and announced to Josh that they had to add a CBD product to My Daily Choice. Josh took some persuading, but I’m sure he is glad he changed his mind!
What is CBD Oil?
CBD stands for cannabidiol which is naturally occurring in hemp plants. There are different types of cannabidiol, one is called THC and occurs in marijuana which results in a ‘high’. CBD contains only trace amounts of THC so there is no high.
Is it said to boost immunity, brain function and mood, improve your skin as well as being reported to relieve pain. Apparently, we have endocannabinoid receptors in our organs, tissues and brain – pretty much everywhere, so the scope of CBD to impact our health is huge.
Hempworx believes that their products stand out in the market because the hemp is farmed in the U.S., it is rigorously tested, contains no GMO or synthetic products, and has a hemp-seed oil carrier. Hempworx is one of 13 companies to recently be awarded a high-quality seal from the U.S. Hemp Authority.
What products do they sell?
The product range includes full and broad spectrum tinctures, soft gels, topical products (e.g. for pain relief) products for the hair and body, face masks, bath bombs, coffee, gummies, and even pet products.
The business model
The best thing about Hempworx business model is that it has a very popular, consumable retail product range which, if people get the results they desire, they will buy over and over again. This is great news for you as you don’t want to be starting from scratch every month.
The cornerstone of the business is the ‘preferred customer’ program. Preferred customers earn rewards for spending a certain amount every month for which they earn a percentage back to spend on more products. This starts at 10% in the first quarter and increases to 30% in the 13th month. They also earn free products for referring other preferred customers.
I should add that these rewards are also available to you as an affiliate AND you get the products at a discounted price so if you are a CBD consumer already, you could make some good savings.
Naturally,ou you may have some retail customers who don’t want to be preferred customers. This still works in your favor because retail sales go towards your PV (Personal Volume). Given that the minimum PV required to get paid in the compensation plan is 40PV, this is good to know!
Check out the table below which shows the Helpworx Earnings Disclaimer so you can see the full range of earnings at each level of the plan.
Network marketing compensation plans are always so complex but I think I have more or less got a handle on this one. I will put a link to a video below which is a really good explanation of how the binary commission element works as it made no sense to me. (I was in network marketing for 10 years but never had a plan that looked like this.)
There are 7 parts to the plan. I will try to keep this short!
1. The Retail Commission plan pays 50% of the sales volume generated. For example, if a retail customer purchases a Hempworx pack valued at 200PV, you would earn $100 (I think 200PV equates to around $400 but if there are any Hempworx experts out there please correct me if I am wrong).
2. Jump Start Bonuses. I am a big fan of anything that helps new distributors (or affiliates as they are called at My Daily Choice) when they first start. If you sign someone up, you earn from 25% – 50% of their business volume (BV) that they generate in the first month. (The percentage depends on what level you are at in the comp plan)
You are effectively incentivized for helping your newbies to earn money straight away (which you should be doing anyway, but it’s nice to get paid a bonus too).
3. Binary Commissions. Unless you are an MLM expert (and even if you are possibly), you won’t understand this. I didn’t but then watched someone explain it very well in a video so check out Hempworx MyDailyChoice binary payout explained. You can also check out the image below and see what I mean!
4. Leadership Check Matching. I didn’t understand this at all when I first read it, then I realized that by check, they meant cheque! (I am in the UK – that’s how we spell it here lol.) Essentially it means that you earn a percentage of whatever your downline has earned in a month. The range is from 20% – 30% for people front line to you down to 5% at 10 deep depending on your rank.
5. Global Bonus Pool. Once you reach the rank of 1k (I am assuming that is 1000 BV per month) you qualify for company shares (naturally with some other qualifying criteria). 2% of the company business volume is divided up by the number of shares in the Pool. Affiliates get paid on the relevant proportion of the business they did.
6. Rank Bonuses. This is a one-time bonus received for reaching a new rank starting at the 1k rank. The clever thing about this is that it is paid over 3 months so you won’t feel inclined to take your foot off the gas! The payments are from $100 to $500,000. (To qualify for Rank Bonuses you must have achieved a minimum of 90PV monthly.)
7. Rank Maintenance. Following on from Rank Bonuses, this is a monthly payment starting in month 4 (after achieving a new rank) for maintaining your rank. Payments are from $50 (for 1k rank) up to $100,000 (for Master Affiliate). This is really clever tactic for retaining affiliates as they climb the ranks.
Sometimes other opportunities can look attractive and I have seen top distributors jump ship and take their entire team with them which can be catastrophic to a business. However, if you are getting big monthly bonuses, you might just rather stay put.
What other factors make Hempworx attractive?
One thing that makes Hempworx stand out to me is their marketing system. Many of the complaints you hear about network marketing are the use of old-school sales methods. These tools offer great value to affiliates. The system includes:
- A contact management system
- Email marketing campaigns
- Lead funnels and capture pages
- Marketing websites
- Video presentations
- Award-winning marketing materials
- An app where affiliates can forward videos and see who has viewed what video and for how long
That is impressive. If I was considering joining an MLM, I would definitely be looking for something like this. Duplicatable systems that a new person can follow are absolutely key to your success and these free tools will make a huge difference.
Pros of Hempworx MLM:
- Credible, desirable, and highly consumable retail offering
- Products fit into a number of different niches so there is lots of scope to get different types of customer
- Lucrative compensation plan
- It’s a young company that is going places (MyDailyChoice earned $170m in revenue in 2019)
- The fact that the preferred customers go into your BV requirement to qualify for your binary bonus makes it more achievable than relying on people you sponsor into the business
- You get paid weekly in Bitcoin, Silver, Gold, or Platinum Bullion coins or regular money by direct deposit
Cons of Hempworx MLM
- You have to buy approximately $90 of product monthly or $190 as you go up the ranks to get paid. This is not such a bind if you remember that retail sales can count towards this figure but if you had to pay it yourself you could end up with surplus product. (However, this is a retail business at the end of the day and everyone has to contribute to sales.)
- In some countries, there is a question mark over the legality of CBD. You will have to make sure that there are no restrictions where you plan to operate. (On the Hempworx website it says ‘…the 2018 Farm Bill clearly establishes that hemp is not a drug, and it is legal on a federal level.’)
- Products are expensive – I don’t know anyone who would pay $41 for shampoo (although if it sorted my unruly hair I might..)
- The CBD market is pretty crowded so not only do you have to stand our from your team-mates who are all selling the same product, you have to get noticed in a very competitive industry
- What if CBD becomes available on prescription? Just playing devil’s advocate here. It might not be the same quality but people on a budget might not be too fussy
Is Hempworx a pyramid scheme?
Absolutely not. Just to be clear, MLMs have a retail product where you can make money even if you never sponsor anyone. Pyramid schemes pay you for sponsoring people, although they have no retail product and are illegal. Hempworx is not a pyramid scheme.
Ironically, MLM businesses have one of the very few business structures that is not a pyramid. When I was in MLM, I sponsored people who built bigger organizations than me and consequently made more money.
If I was looking to join an MLM, this is one I would give serious consideration to. However, I swapped network marketing for affiliate marketing as I don’t want to have to rely on the performance of anyone else for my income. Check out the conclusions I came to in my post Network Marketing vs Affiliate Marketing Pros And Cons.
If MLM floats your boat, check our How To Sell MLM – Without Being Annoying to give yourself the best chance of success.
Are you involved with Hempworx or another MLM? I would love to hear about your experiences in the comments if so.