Hey there sea changers, and welcome back to my series of MLM reviews for those of you looking to supplement your sea change income by building yourself an online Multi Level Marketing (MLM) business. Today we delve into what appears to be a booming industry at the moment with my Kannaway CBD Oil MLM Review. Why is it booming? Because as CBD Oils and their related products gain interest via more research and become legalised in more and more countries around the globe, the market for them is increasing. So let’s have a look to see whether Kannaway can be of assistance to us as we move into this niche…
Note: I am not a member of the Kannaway MLM Program (and hence make no commissions from any of the links included within this post). The reason for this is that I prefer to write these posts based on what a newbie would be seeing if they were interested in joining – that way I feel I can make a better judgement on what it is that these companies are offering within their programs.
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).
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 are commonly known as their sponsor).
- 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 Kannaway?
Kannaway is a CBD oil company based in the United States – in fact, they were the first publicly traded cannabis company on the U.S. Stock exchange. Like many other companies of this nature, they adhere to strict quality standards with triple lab testing and organic certifications.
They hold a number of health patents and offer prescription based products for serious medical conditions such as:
- Parkinson’s disease
- Alzheimers’s disease
- Chronic migraine
Kannaway were also the first U.S. cannabis company to offer products outside internationally with operations now in over 35 countries worldwide.
What do they sell?
Kannaway offers a full range of CBD Oil based products including:
- Oral applicators
- Liquid and drops
- Capsules and Gels
- Edibles, Tea and Coffee
- Vape canisters
- Hemp based skin care products
- hemp based pet products
Products can be purchased individually or as part of a pack.
As part of the natural/chemical free theme of the site there is also a small range of essential oils and Endocannabinoid DNA test kits. I have not heard of them before (nor has the need to test my DNA ever arisen for that matter) but they are actually designed to ensure that you are selecting the correct CBD products to match your DNA requirements – and as I think about it, I can imagine that this area alone may open up some good avenues for those all important blog posts.
MLM Program outline
The Kannaway MLM program calls its members Brand Ambassadors (or sometimes Independent Distributors) and at first glance, it is a fairly stock standard program. And to start on a positive note, information in regards to this program is extremely comprehensive and easy to find on their site. Here are the basics:
Base Commission rate: Up to 30% of the commissionable volume (CV)
Down line commission rates: up to 11% to 10 levels (1st generation (down line level 1) rates 2%).
Minimum monthly spend to qualify for commissions
- Affiliates are required to maintain at least 28 Personal Volume (BV) purchase level per month (depending on ranking) to qualify for commission – approx $100. Purchases do not have to be for personal use – i.e. customer orders count towards this amount.
Payment terms: Weekly and monthly.
Application required?: Yes, personal and payment information required.
Purchase requirements to join: Yes
- $54.98 / €47.80 annual payment.
- Starter kits are available but not mandatory.
Marketing materials provided: Personalised marketing website, contact manager, a tracking back office and complete video training series to assist you in setting up your online Kannaway MLM business.
As with most MLM programs, commissions are paid on the number of Commissional Volume (CV) points assigned to the total sales of you and your downline. The CV is roughly 50% of the Business Volume (BV) assigned to each product. BV points vary per product but a generally allocated and 1 point per $2 spent. So, a BV is 50% of the total sale price and the CV is 50% of the BV meaning that you are paid commissions on roughly 25% of the sales price. I think – feel free to correct me in the comments below if I have this wrong.
Downline commissions and rankings are determined by the total PV that you and those of your down line generate in a calendar month. To qualify for downline commissions within Kannaway, you will need to purchase a minimum 28PV points worth of product monthly (roughly USD$100). Most MLM programs manage it this way so as to be able to assign higher BV points to items they are trying to move, and to ensure that they are not overpaying for items that may cost them more to manufacture. Also, 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 9 ways in which you can make money when you promote and sell their products – plus a number of bonus/incentive structures as well. These are quite standard for a MLM program with commission rates designed to reward those that rise through the ranking system – i.e. commissions rates rise as your rank increases (some programs pay higher for newbies and reduce commissions as your rank increases as a means of paying people more earlier on as an incentive to stay).
Traditional purchase and resell
This is where it all began – the traditional buy and sell business model. This process is simple. You purchase the products with your discount (roughly 25% or so depending on the product) and then sell them at retail prices via parties, markets, kiosks or store fronts. You not only get to pocket the difference, but as you have purchased them online via your account, you also qualify for the commissions rates as well.
Direct sales commissions
Direct sales commissions (DSC) are paid at 30% of the CV for every purchase that a customer directly referred by the Brand Ambassador makes.
On top of that, should the new referral purchase an optional starter pack as part of their first purchase then their first level sponsor also earns the following payments:
Note: these payments are at first purchase within 30 day of joining only – subsequent starter/value pack purchases qualify for usual CV commissions but not the above added payments.
Being fast start qualified means that to can earn 3 times the DSC of purchases made by your underline within your first 30 days of operations. To become FastStart Qualified, you will need to achieve either of the following:
Those who qualify for the FastStart bonus of up to $2000 via the increased commissions if they can accumulate either 3000 or 9000 cumulative Elite Volume (EV) (total of all CV for your downline) with your first 20, 45, or 60 days of becoming a Brand Ambassador.
50% DSC check match
The 50% DSC check match is designed to incentivise the building of a solid downline team via the payment of 50% of the DSC of any downline member that you have personally introduced to Kannaway. 20% is paid to the direct sponsor and 30% is split between leadership rank codes and 7 levels of up line team members as follows:
Residual team override commissions
As is common with many other MLM programs of this nature, general unilevel commissions are paid on the total downline that are either recruited by you or placed underneath you by others. Kannaway pay these commissions up to 10 levels as below:
Rank infinity commissions
As you start to reach the upper echelon of rankings with the Kannaway MLM program, you qualify for a number of extra commissions and bonuses as you continue to build your own business and that of your team. This is again not uncommon within many MLM programs and designed to reward those who reach the higher ranks. The first of these is the Rank infinity commission.
Those who reach Executive Director and above, can start earning a 1% commission on all qualified sales starting on their 6th level on the sales downline that they have built. Commissions are paid as follows:
Coded infinity commissions
One of the interesting aspects of most MLM programs is the ability to add and move down line members from ‘underneath’ yourself to others within your organization. This is designed this way to allow those intent on building a large downline and high rank to move high achievers under them and the not so high achievers into a side bucket. They do this as many higher ranks require you to have a number of fellow high ranking members within your downline legs.
The general rule is that once a downline ambassador is moved to another downline member, you will no longer receive the commissions for those sales. What the coded infinity commissions do however is pay you a percentage of their sales regardless of where they are moved to on your ranking journey. Again, once you achieve the rank of Execituve Director and above, you can earn commissions on everyone that you have personally enrolled as follows:
Lifestyle commissions are bonus payments paid once you reach the level of Area manager and above. To qualify, you must reach the rank level and maintain it for the next month. Payments are as follows:
Rank advancement commissions
These commissions work in a similar fashion to Lifestyle commissions in that you qualify for them by climbing through the ranks. Rank advancements commissions are triggered from Executvie Director rank and you must maintain the PV levels required for that rank to qualify for the payment.
And if you can hit these ranks within accelerated time frames from your date of joining the program, the payment is doubled:
As you have probably noticed, the commissions and bonuses paid out above are reliant upon the ‘rank’ that you are assigned within the Kannaway MLM program. This ranking structure is quite straight forward with commission qualifications rising based on your total monthly Group Volume, 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). The compensation plan does not have this tabelised so as an example, I have included the first level and highest level requirements for this platform:
What else do you get?
On top of the potential earning methods outlined above, Kannaway also offers a couple of bonus options for those who make consistent purchases or achieve higher rankings within the program. These include:
SmartShip rewards offer a range of bonuses and free products for those that maintain monthly spend rates within the program. To qualify, you will need to maintain an active SmartShip for 3 consecutive months, at a minimum of 110 BV each month. Once this you have qualified here you can earn the following:
- Free shipping on all SmartShip orders
- Access to new items before the rest of the field
- $1 BA fee enrollments for all SmartShip rewards earners with the purchase of a Jr Executive Value Pack or above
3 for Free
This is a free product based arrangement whereas if any 3 of your personally referred downline setup and maintain their Smartship account with at least 28BV of orders each month, you can order the free products to the level of the average amount of the 3 orders as follows:
Note: free products do not earn commissions or add BV/PV to your account.
Minimum income guarantee
This is another bonus for the higher rank levels in that should you attain your rank and maintain it for the next month, then you qualify for the Mimimum Income Guarantee (MIG). This is something that not many other programs have in that it guarantees you a minimum level of commissions for each month that you maintain your rank. To qualify, you must:
- Maintain a minimum of 3 active, personally sponsored Brand Ambassadors in 3 separate legs who each maintain a minimum of 110 PV monthly.
- Maintain 110 personal PV monthly.
- Earn and maintain the rank of Executive Director or above.
MIGs are calculated and managed against your actual commissions for the relevant month. So if your personal commission as a Regional Director for example is $4800, then your MIG will be $200 to bring you up to your MIG level. If your commission was $5600 then no MIG would be paid.
Higher ranked ambassadors also qualify for exclusive Kannaway retreats and Black Tie events.
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 base level sales are quite good.
- CBD oil based products are a booming niche.
- Information in regards to their MLM program is comprehensive and easy to find.
- There are no personal purchase requirements to maintain commissions.
- There is a commission guarantee for higher ranks.
What is no so good about it?
There are also some things to be aware of including:
- Unilevel commissions are quite low.
- Commissions are paid on 30% of the sale price which is quite low compared to some others.
How much can you make?
I was unable to find an actual plan of expected incomes per rank level for Kannaway apart from the MIG outlined above starting at $500 per month at Executive Director level up to $84000 per month for Crown Ambassadors. As with most MLM programs however, the percentage of members making the upper rank levels is usually very low.
My final thoughts
Look, MLM is not an easy platform to make money in and there is nothing here that appears to make this program easier than any other. That said, the Kannaway program does not raise any real red flags for me and seems to be on par with most others within this niche (such as HB Naturals and Hempworx) with ample opportunity to earn if you can attract and nurture a down line. 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 quite simple and from a startup point of view, there are not the usual financial pressures of needing to make minimum purchases in order to qualify for commissions. Although should you be falling short with your monthly BV requirements coming in from your customer base, then some personal purchases will be required to top it up from time to time – this is common in the first few months of joining any MLM unless you have a good lead base to target from the outset.
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 MLM program itself – although 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 could 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.
So there you have it, my honest review and appraisal of the Kannaway 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?
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Until next time
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.