Hey there sea changers, and welcome back to my series of MLM reviews for those of you looking to supplement your sea change income with a little Multi Level Marketing (MLM) goodness. Today we delve into what appears to be a booming industry at the moment with my Hempworx MLM Review.
The industry? CBD Oils and their related products. And as it gains interest via more research and becomes legalized in more and more countries around the globe, there is a definite market to make money selling CBD Oil online and one absolutely worthwhile checking into. So let's have a look to see whether Hempworx can be of assistance to us as we move into this niche…
What is MLM?
Multi-level marketing (MLM) programs are the mainstay of the ‘party plan' world of products such as Tupperware, Mary Kay and Amway etc. and, recently, becoming more and more prevalent within the CBD oils market. One of the reasons for this is that much of the sales and marketing for MLMs is now being managed online – alleviating the need to run parties – and, more importantly, not hassle everybody you know to join (you can of course, but you don't have to).
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The ‘multi level‘ aspects of MLM come from its hierarchical nature in which you make commissions based not only on those that you sell to, but also the sales of those whom you ‘sign' into membership arrangements as well.
In short, the process works as follows:
- You join the program, either via referral from another person (known as your up line) or directly through their website.
- You promote the products of the company via parties, workshops or online.
- As you make sales, you offer incentives to your customers to sign up as a member of the program (there are different names for this but they all mean the same thing).
- That new member is then placed ‘underneath' you in a hierarchical arrangement (known as your down line).
- You, and a number of levels of your up line, then gain extra commissions for everything they sell as well.
- If they manage to refer their customers into memberships, they also become a member of your down line allowing you to make up line commissions as well.
The number of levels of your up and down lines will vary depending on the program you have joined. Commission rates will also change as your down line grows or contracts and many will also offer other incentives such as total company sales percentages and/or access to membership prizes as your own business grows.
Who are Hempworx?
Hempworx is a subsidiary of a larger company called mydailychoice.com and originally started as a part of the latter. On the main Hempworx site, any information in regards to company information, graphical branding and founder bios is to do with mydailychoice.com and not really Hempworx. For now, let's just concentrate on the Hempworx – I just really wanted to explain this early for when you see different branding on the graphics below.
Anyway, Hempworx was established by Josh and Jenna Zwagil and is based in Las Vegas NV. Their experimentation with CBD oil based products started in 2016 after a major illness leading to the Hempworx brand of products being first released in 2017.
What do they Sell?
Hempworx offers a full range of CBD Oil based products including:
- Tinctures
- Topcials
- Pet products
- Bath Bombs
- Coffee
- Keto Creamers
- Gummies
- Hair Care
- Body Lotion
Products can be purchased individually or in ‘value packs'.
Check out my post: How To Monetize a CBD Oil Blog
MLM Program outline
The Hempworx MLM program is actually just called their affiliate program with the MLM components tacked onto the end. To be honest however, it is definitely more MLM that just a plain affiliate arrangement.
Base Commission rate: 25%
Affiliate discount: 25%
Down line commission rates: up to 85% to 10 levels (1st generation (down line level 1) rates 25-30%).
Minimum monthly spend to qualify for commissions
- Affiliates are required to maintain a 40 – 200 Business Volume (BV) purchase level per month (depending on ranking) to qualify for commission – approx $100.
Payment terms: Weekly and monthly.
Application required?: Yes, personal and payment information at time of first purchase
Purchase requirements to join: Yes
- Once off $20 account activation payment
- Start kits ranging from $39 to $299 ($39 starter kit does does not provide enough BV to qualify for commissions).
Marketing materials provided: Lead capture pages, marketing websites, customer websites, contact manager, auto-responder emails, and a tracking back office.
As with the bigger programs, downline commissions and rankings are determined by the total BV that you and those of your down line generate in a calendar month. To qualify for downline commissions within Hempworx, you will need to purchase a minimum 40BV points worth of product monthly (roughly USD$100). Most MLM programs manage it this way so as to ensure that you are getting sales based results rather than simply signing people up whom don't purchase.
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How can I get paid?
This program promotes 7 ways in which you can make money when you promote and sell their products. These are quite standard for a MLM program and whilst their commissions are definitely higher than many others I have seen, there is not a lot here that is really different to most others.
Preferred customer
The preferred customer program is technically not part of the affiliate setup but it is not a bad way to get involved with the company to see if it is something that you would like to get further involved with. Preferred customers:
- Sign up for free (with a starter kit purchase).
- Attract a 25% discount on all purchases.
- Do not earn commissions or any other bonuses outlined below.
- Are rewarded with free products for every three active customers they refer – at which point you would probably pay your $20 activation fee to become and affiliate – see below.
Affiliate commissions
Affiliates sign up with a $20 activation fee and starter kit purchase. They can then earn their base 25% commissions on retail priced purchases that they refer. The process works as follows:
- Affiliate signs up.
- Affiliate refers a retail customer who makes a purchase.
- Affiliate is paid 25% commission on every sale they refer.
- BV volumes are calculated and incorporated into the MLM program for further commissions and bonuses provided personal purchase BV levels are maintained.
Jump start bonuses
Jump start bonuses are paid for each active member that affiliates attract into their downline. Commissions are paid to 10 levels as follows:
Commissions are paid on all sales of those within your downline provided you maintain your own personal BV purchase levels.
Binary commissions
Once you start to get a few members within your downline, you can start to earn binary commissions based on those in your ‘legs' (a leg is a bundled group of members from within your own downline)
Bonus percentages are paid based on the total sales of your ‘lesser' leg as long as the BV requirements in the graphic above are met. Your volumes roll over if you do not have 300BV in sales within your lesser leg. Percentages are as follows:
Check matching
Check matching is where you are paid extra commissions based on the binary legs of those within your downline. The more binary legs that your referrals can accumulate, the more bonus commissions you can earn as a member if their up line. For check matching bonuses, the commission structure is as follows:
Bonus pools
As is common with many other MLM programs of this nature, those affiliates who manage to continuously increase their membership base and hence climb the rankings qualify for a percentage of the company bonus pool. Unlike most other programs however, these bonus pool payments can be achieved by those within the lower ranks as well.
The bonus pool is 2% of total company sales and is distributed via the number of shares that affiliates can earn. Share structure is as follows:
Rank bonuses
As you start to reach the upper echelon of rankings with the Hempworx MLM program, you qualify for once off bonuses for each level that you achieve. To qualify for these bonuses you must meet an individual purchase requirement of 90BV per month as maintain your ranking for 90 consecutive days. Payment are as follows:
Click here for more information in regards to all of the above mentioned payment structures.
Ranking structure
As you have probably noticed, the commissions and bonuses paid out above are reliant upon the ‘rank' that you are assigned within the Hempworx affiliate program. This ranking structure is quite straight forward compared to others with commission qualifications rising based on your total monthly BV, the number of underlings you have within your down line and of course, how much they sell/purchase in a calendar month (measured in BV). Rank requirements are as follows:
As with most programs, rankings are determined by the total BV you and your downline generate in a calendar month. As your downline grows, your commission rates increase as outlined earlier within this post.
What else do you get?
On top of the potential earning methods outlined above, Hempworx also offers a couple of bonus plans for those who achieve higher rankings within the program. These include:
VIP Auto Club
One you achieve the rank of 5K Affiliate or higher, you qualify for a bonus monthly car payment. This is triggered once you have received your rank bonus – meaning you have maintained our rank for 90 days – and is paid for every month that you maintain, or grow your rank. Payments are made as part of your commissions and are tiered as follows:
Elite Expense Accounts
100K Affiliates and above also qualify for elite expense accounts. These are paid on top of all other commissions and are designed to cover the extra expenses you may have at this level to build your business (such as travel, event attendance etc.). You are paid the full amount regardless of what you spend on business development. Payment structure is as follows:
What is good about it?
So, after a good look around the site and looking at all the options I could find, I do like the following:
- Commission rates for entry level sales are much higher than most other programs.
- CBD oil based products are a booming niche.
- Information in regards to their MLM program is comprehensive and easy to find.
What is no so good about it?
There are also some things to be aware of including:
- There is some ambiguity around the different company names.
- BV calculation is a little higher than other programs – most run at USD$1 per PV or BV point – Hempworx is around USD$1.5.
- It is not free to join.
How much can you make?
The below table is an outline of actual commission payments by this company over an 18-month period. As with most MLM programs, the percentage of members making the upper rank levels is very low:
Hempworx MLM Review: My final thoughts
Look, as per the table above, MLM is not an easy platform to make money in. But in terms of the platform itself, this one does not raise any real red flags for me. There is plenty of information available ( which trust me, is rarely the case) so if you are passionate about CBD oils and like this brand, then to be honest I cannot see much in there that would cause me to warn you off.
The joining process is not as simple as others and from a startup point of view, there are the usual financial pressures of needing to make minimum purchases in order to qualify for commissions. This is alleviated slightly by the opportunity to join as a preferred customer first but in general, you can expect to run at a loss for the first few months unless you are able to move quickly to attract downline members.
I was unable to locate any negative reviews in terms of non-payment or poor quality products for this site however there was some negative comments about the parent company (mydailychoices.com) in regards to some of their other programs – that said, it was not really anything that is uncommon in regards to MLM programs.
CBD oil legalities
Finally, before you rush of into this program, I would advise that you do some solid research into the market in which you plan to promote these products. For example, where I live in Australia, the sale of CBD oil is still under debate with no clear guidelines (at time of writing). I can however promote into the U.S. (some states) via online methods. For this reason, you may even want to start by looking into affiliate marketing rather than committing to an MLM program in short term.
Conclusion
So there you have it, my honest review and appraisal of the Hempworx MLM program. I hope it has been of assistance but as usual, if you have any questions or experience with this program please do not hesitate to reach out by commenting below – especially if any of my information is inaccurate.
Are there any other programs you have been looking at but want to know more about? If so, please comment below and I will do my best to get some details for you.
Do you want further assistance with any of the above or need help to build your own CBD oils or MLM based website?
Are you looking for a comprehensive training platform that can give you step by step training, 24/7 support, tools to develop and host your very own website, ongoing assistance with SEO and social media and access to some of the best affiliate marketing minds on the planet, then click on the following link to read more about Wealthy Affiliate.
Until next time
Have fun
Paul
Note: If you make a purchase from this page, there is a very good chance that I make a commission from it – these commissions do not increase your sale price. This may include purchases via Wealthy Affiliate.
Hempworx MLM Program
20.00Pros
- Commission rates for entry level sales are much higher than most other programs.
- CBD oil based products are a booming niche.
- Information in regards to their MLM program is comprehensive and easy to find.
Cons
- There is some ambiguity around the different company names.
- BV calculation is a little higher than other programs
- It is not free to join