Is HempWorx a Scam or is HempWorx Legit?
In this HempWorx review we’ll find out if HempWorx is worth your time and effort. We will answer the question ‘is HempWorx a scam or is HempWorx legit’?
My Daily Choice HempWorx is a multi level marketing (MLM) company.
In most MLMs, there are two main ways you can earn money:
- By selling a product that is not sold in retail stores. In order to obtain the product you must order through a distributor, or on a distributor’s website, and
- By receiving commissions from the sales of your downline (i.e. people you recruit into your network)
What this means is you need to be able to sell massive amounts of product to people. If you genuinely want to be successful in a MLM company, you need to recruit new distributors who are also selling a lot of products. In the latter scenario, as well as selling products, you need to be able to sell the ‘lifestyle opportunity’.
Let’s take a look at HempWorx.
Some basic information about HempWorx:
- Website: https://www.hempworx.com
- Founded by: Josh and Jenna Zwagil
- In operation since: 2014
- Price to join: $20 minimum to become an affiliate
- Recommended: Yes, but only if you have a proven track record with MLMs
My HempWorx review will take you through the following sections:
- What is HempWorx and how does HempWorx work?
- How do you get paid with HempWorx?
- Is HempWorx legit?
- My recommended way of making money online
What is HempWorx and how does HempWorx Work?
HempWorx is a CBD based multi-level marketing company. CBD companies seem to be popping up all over the place, and just about 2nd or 3rd post I see in Facebook work from home groups relates to some kind of CBD product.
Cannabidiol (CBD) is a constituent that naturally occurs in industrial Hemp. CBD is just one of over 85 cannabinoids that is identified in the cannabis plant. HempWorx produces CBD oil. Another cannabinoid, Tetrahydrocannabinol (THC), has psychoactive effects (gets the user “high”), while CBD does not contain any psychoactive properties.
Their product line covers:
- CBD tinctures
- CBD topicals
- HempWorx for pets
- CBD bathbombs
- CBD coffee
- CBD keto creamers
- CBD gummies
- Hair Care
- Value packs
Signing up to HempWorx as an affiliate is known as a MyDailyChoice Independent Affiliate. It’s interesting that they choose the term ‘affiliate’, because when you read the compensation plan, it is very much written in MLM speak. For example:
- Preferred Customers
- Retail Customers
- Business Volume (BV)
- Personal Volume (PV)
- Jump Start Bonuses
- Binary Commissions
- Bonus Pools
- Rank Incentives
- VIP Auto Club
An affiliate in the true sense typically just refers to making a % or nominated profit for an item sold. Some organsiations will offer bonuses and incentives if particular milestones are reached, but there is typically no need for ‘compensation plan’ documents as the commissions are very straightforward. It’s not until you get into MLM territory that you become bamboozled with diagrams and levels and percentages associated with levels and trees.
Joining HempWorx as an ‘affiliate’ will cost you a one-time $20 enrollment fee. You will be provided with a tracking back office, replicated websites, lead capture pages, autoresponder, and marketing tools. Once you are logged in, you can select payment options to select how you’d like to receive your commissions for your referrals.
The HempWorx Compensation Plan
There are three types of enrollments with MyDailyChoice: Preferred Customer, Retail Customer, Independent Affiliate
- Preferred Customers are monthly purchasers of MyDailyChoice products and pay member prices. Preferred Customers have the ability to refer others to earn free product. Preferred Customers receive free product each time they refer three Preferred Customers. Once a Preferred Customer has referred three Preferred Customers, they will be able to have one of the MyDailyChoice products shipped to them at no cost.
- Retail Customers one-time purchasers of MyDailyChoice products and pay retail prices.
- Independent Affiliates are purchasing MyDailyChoice products at member prices and referring others to earn income in the compensation plan.
Retail Customers are purchasing one-time and Independent Affiliates will earn a Retail Customer Commission which is the difference between the Member Price and Retail Price. The resulting Business Volume (BV) counts towards the Affiliates Personal Volume (PV). Independent affiliates also have access to jump start bonuses (paid weekly), binary commissions (paid monthly), leadership check matching (paid monthly), global bonus pool (paid monthly) and other bonuses and incentives.
The Binary Commission Structure:
The Rank Incentives and Bonuses structure:
The VIP Auto Club:
Elite Expense Accounts:
There are some components of their plan that I like. These are:
- Commissions are only paid on product orders only. HempWork do not pay commissions for simply sponsoring or recruiting others. This is usually a fundamental component of an MLM pay structure, and it’s the one thing that often makes people think of MLMs in the same way as they think of pyramid schemes. So, the fact that HempWork only pay for sale of products is a good thing.
- All purchases come with a 60-day money back guarantee.
Both of these things suggest that the company has integrity. The compensation plan, whilst complicated, looks like one of the better MLM compensation plans I’ve seen.
Is HempWorx A Scam or Legit? It’s LEGIT! But…
MLM is a legitimate business model and HempWorx is no different. In fact, the HempWorx compensation plan is probably one of the better ones I’ve seen.
Whilst it isn’t for everyone, you can earn money. It is all about moving as much product as possible for maximum income, and recruiting others to do the same. I personally know a few folks who are with HempWorx, and they say it’s one of the better MLMs. They tell me they get paid on time, and it’s always correct. And they love the products.
HempWorx actually post their test data on their website, which is awesome because some of the CBD companies don’t do this. One of the things I do like about HempWorx is that they appear to be transparent and are willing to share their data, their compensation plans, and their income disclosure statements.
HempWorx has a B- rating with the Better Business Bureau (BBB). HempWorx seem to try to respond to complaints made on the BBB site.
However, it’s important to know a few statistics about MLMs. Jon Taylor PhD, in “The Case For (and Against) Multi-level Marketing” published by the FTC, researched MLMs and his research found:
In the first year of operation, a minimum of 50% of representatives drop-out.
After five years of operation, a minimum of 90% of representatives have left the company.
By year 10, only those at or near the top have not dropped out – approximately 95% of representatives have dropped out by then.
HempWorx Income Disclosure Statement
HempWorx to their credit have published their income disclosure statement, which shows you average earnings of a HempWorx distributor:
The numbers in this chart are tricky to read, so I’ll give you a quick summary.
- The data relates to active MyDailyChoice Affiliates in the U.S., covering the period 1 May 2018 to 1 May 2019.
- The average annual income for all Affiliates (active and inactive) during the reporting period was $580.08 USD.
- The median annual income for all Affiliates in the reporting period was $0 USD.
- 70.3% of all Affiliates do not continue with MyDailyChoice after their first year.
- Out of approximately 37,124 Affiliates that signed up as U.S. Affiliates during the time period, approximately 26,123 were still active at the end of the year.
- 24,941 of all Affiliates received no income at all.
- The figures refer to gross income and do not represent an Affiliate’s profit.
- Expenses for Affiliates can be several hundred or thousand dollars annually.
- Based on a survey conducted by the HempWorx in 2018, the average annual expenses an Affiliate incurred were $1,608 USD.
What does all this mean for people joining HempWorx?
Let’s take a look at the first three tiers:
- Builders earnt an average of $7.60 per month ($91.20 per year), representing 43% of active earners
- Directors earnt an average of $15.13 per month ($181.56 per year), representing 25% of active earners
- Executives earnt an average of $81.58 per month ($979.44 per year), representing 29% of active earners
These three tiers make up 97% of all HempWorx active income earners. Keep in mind that 24,941 affiliate made nothing. However, HempWorx are quite open in saying that the average annual expenses of an affiliate are in excess of $1,600 per year. This tells me that 97% of people who join HelpWorx and earn money, still end up out-of-pocket by between about $600 – $1,500. And that’s if you earn anything at all. 24,941 people made nothing (they were clearly out-of-pocket).
Those numbers are pretty damning if you ask me.
The statistics actually suggest that you will be out-of-pocket quite significantly if you join HempWorx. So, I cannot recommend HempWorx unless you have a proven track record with MLMs and know you can earn the big bucks.
Unless you are an absolute MLM guru you will not make money with HempWorx. You might get some great products that you love, but you WILL NOT MAKE MONEY.
Those MLM gurus do exist, and I know a few of them myself (not with HempWorx), so the big money is possible, it is just not likely.
My Preferred Work From Home Business Model
My preferred way to make money from home is via the affiliate marketing model. The basic model of affiliate marketing is that you:
- Choose an interest
- Build a website
- Attract visitors to your website
- Earn revenue when they make purchases from your site (via affiliate link
Once you have built your own website and learnt how to attract visitors (using free methods), you can repeat this with as many of your own websites as you like. Think of the potential right there!
The platform I use is perfect for anyone who wants to find a way to earn money online. You don’t need experience, and you don’t need to be technical.
You will be taught everything you need to know.
One of the best things about it – you don’t need to sell anything to your friends and family, unless of course you want to.
There’s a reason why people leave MLMs in droves and look to affiliate marketing as a more ethical and sustainable alternative:
Have you had any experience with HempWorx or with other MLMs? What did you think?
If you have any comments or questions please leave them below, and I’m always happy to help you out.