Kannaway offers what can potentially be a lucrative business opportunity. But is this legit or is Kannaway a pyramid scheme type scam? Is this opportunity simply too good to be true? Or is this possibly the breakthrough money making job that you have been waiting for?
I’ll just straight to the point here and say that Kannaway is not a pyramid scheme. However, the recruitment nature of their business model does resemble a pyramid scheme and this is what is causing most of the controversy surrounding this business. When it comes to this there are definitely some things that everyone should be aware of before they decide whether or not to pursue this opportunity and in this short post I’ll be covering what I think you should know.
Kannaway is a network marketing company that sells hemp oil products. From what I have seen and read their products are good quality and many people like them. But I’m not writing this post to talk about the products here. I am writing to discuss the business opportunity and the pyramid scheme part of it all.
Kannaway relies on independent distributors (aka Brand Ambassadors) to do all the marketing and selling. Anyone can become one of these distributors and make money selling their products. Additionally, distributors can make money recruiting other people into the business. This mlm (multi-level marketing) structure is where all the pyramid scheme controversy comes in.
The Compensation Plan
The cost to participate in the compensation plan is $54.98/yr. This is the fee for the marketing materials you will get, your personal Kannaway website, support and more.
You will then be able to purchase Kannaway products at wholesale prices and sell them at markups, keeping the difference.
But the part I’m interested in here is the mlm side of it.
There is a unilevel commission structure in place in which you can earn from people up to 10 levels down. The people that you personally recruit in are your level 1. The people that they recruit in are your level 2…. and so on all the way down to level 10. Because it is unilevel there can be unlimited people at each level.
One of the unusual things about this structure is that you will actually earn higher commissions from those the further down you go. Usually it is the opposite of this with most mlm comp plans. And as you can see below the amount of levels you can earn off of depends on your rank. There are 11 ranks total.
You might be wondering how you are supposed to advance up the ranks. The answer here is simple: RECRUITMENT. When you move up the ranks there isn’t much change in the requirements for your personal sales volume, however, your GBV (Group Business Volume) increases greatly. This is the amount of product volume sold from your downline… so of course to increase that you need to recruit more an more.
There is no doubt that Kannaway focuses very much on recruitment. The comp plan pushes distributors to recruit in order to advance in the company. However…. they still are not a pyramid scheme because they do also force distributors to make personal sales of their own.
I understand that the recruitment side of it often leads to distributors recruiting by deceptive means just to make money, and that this all makes this business opportunity seem less legitimate… but it still is legal what they are doing.
The Harsh Reality
The reality here is that with a compensation plan like this that rewards people to this degree for recruitment… not many people make good money. In order to make good money you need to have a big downline and earn from their efforts. There will always be far greater numbers of people at the bottom earning little than at the top. And the top few percent will reap the rewards from the struggles of those beneath them.
Kannaway does not provide an official income disclosure here, but I have reviewed enough similar mlm’s to know that with a mlm comp plan like this not many people are going to make it. I just reviewed Emza Gold and Isagenix recently and they are the same old story.
Conclusion On Kannaway – Scam Opportunity?
Kannaway is neither a pyramid scheme or a scam. However the business opportunity here isn’t as great as many people may think. There is a lot of potential and some people make very good money, but these numbers are very few.
The people that really make it and climb their way to the top have a lot of drive, motivation, and seem to have that salesperson type personality where they can sell anyone on anything. Not only is this something that most people don’t have, but the comp plan makes it pretty much impossible for many people to make good money.
Questions, comments, concerns? Leave them below in the comment section and I’ll get back to you soon ?