In this review I share my thoughts on the Kannaway business opportunity and their products to help you make an informed decision on whether or not to join.
I am not a representative for this company so this is completely unbiased.
About The Company
Kannaway is Californian based company specialising in the fully legal production and distribution of Hemp products through the mlm model. It was founded in 2013 and is run by CEO Jeff Rogers with no complaints lodged with the BBB at this point.
There are very few mlm companies that I am genuinely curious about in terms of their products, but I am with this one. My first thoughts are that they could be really awesome IF there was real science behind the products and good reviews from customers.
If there’s one thing I’ve learned about multi level marketing it’s that health and wellness mlm companies are exceptionally good at inflating the perceived value of their products. They understand one very important fact… what a consumer ‘perceives’ is actually more important in a buying decision than what actually ‘is’.
They might be really awesome, and I hope they are, but let’s take a look at some of the facts to work out how legit these products really are.
Quick Facts About Hemp
After doing some research it became clear that there are very real differences in the kinds of Hemp oil that can be used.
According to an article written by ‘chronictherapy.co’ Hemp oil is primarily extracted from the seeds of hemp plants whereas Canabidiol (CBD) is extracted from the flowers, leaves and stalks of hemp plants.
What’s the main difference?
Essentially it comes down to the former being better for general purposes such as cooking, various products and skin care while the CBD is said to have positive health benefits in some people. There is still much research to be done into the use of CBD in a persons health and wellness but it appears to have some benefits.
In other words, they’re both hemp oils but one is extracted from seeds and the other is extracted from the plant itself and the company uses both CBD oil and standard hemp oil in it’s products.
Does any of these make you get high?
Because in Kannaway’s case the oil is extracted from industrial grade hemp plants specially grown to contain almost no THC, the part that makes you high.
The company has a range of vaporiser products that are basically like an e-cigarette using hemp oil and other ingredients in place of tobacco.
They have 3 types of ‘Vaps’ that apparently make you feel a certain way: inspiration, peace and vitality. They look pretty cool and contain the mysterious ‘Bi Bong’ proprietary formula along with some herbs and the CBD oil I mentioned above.
They retail at $32.50 each for 1ml, not sure how long that would last but hopefully longer than one session lol!
They also have 3 different flavours containing regular hemp oil that don’t claim to give any kind of effect other than tasting nice and being an alternative to smoking, personally I don’t see the point. These cost the same as the ones above.
These are some supplements that apparently help you to be healthier, happier and just function better with more energy when you need it.
There’s Rev!ve Am, Caps and PM and each do different things for different times of the day, for a 30 day supply of all 3 is going to cost $216.
The one thing that concerns me about these products is that the oil used in them is extracted from seeds and stalk, which means there may be a low level of the actual part that is researched to have healthful properties, CBD.
The extract from the seeds is not going to have any medicinal effects at all in comparison to CBD rich extracts. Plain old hemp oil is much cheaper to source and therefore the company may be combining the two to mask how much CBD is in their products.
For example Rev!ve AM contains 10mg of CBD, but they state that this CBD is derived from seeds and stalk, which means we have no way of knowing just how much plain hemp oil is in it and how much of the good stuff (CBD) is in it…
Here’s a snippet I took from one trusted source on this topic that clearly states the difference…
I’m not saying that this is a deliberate attempt to mislead people but based on my research it casts a shadow of doubt about the true levels of these very different hemp oils.
Skin Care & Other
They also have a range of skin care solutions and ‘total care’ packages that combine different products. I’m not big on skin care and don’t know much about it so I’m not really going to go into this. They also have a 90 day plan that combines a bunch of products which retails at $1077 for 90 days.
The Proprietary Bi Bong (AKA secret formulas)
The ‘Bi Bong’ is a huge part of what supposedly makes this company and their products great- it’s just another word for ‘secret formula’.
Jenelle Kim is the Kannaway’s chief formulator. She has a Masters in Traditional Oriental Medicine and she is the CEO of JBK Wellness Labs.
According to Jenelle the meaning of the Bi Bong formula comprises of three main things:
- It’s super secret and has been handed down through the generations
- It is a ‘proper’ formula
- It works for everyone
Hmmmmm… pretty mysterious if you ask me, I guess this is just something you’d have to take the companies word for.
Final Thoughts About The Products
There does seem to be some genuine science behind the use of CBD in general and some good uses for hemp seed oil. The company also engages some notable third party testing to ensure the actual quality of what they are producing. Not the benefits, just the quality.
I think it is good to be somewhat skeptical of these products though since there is a lack of credible third party science behind these formulas. I think largely you are taking the company at their word and testing the waters.
It’s also a little difficult to compare the prices given the uniqueness of these products but my impression is that they are pretty expensive. Just using their core wellness system will set you back $216 per month at retail or $180 if you’re a rep, and that’s only part of what they offer.
Maybe they are good , maybe they are not- I think if you are super keen give them a try and see how they work for you.
The Business Opportunity & Compensation Plan Explained
The company openly provide their compensation plan which is good, some companies avoid this and it only serves to add doubt to their legitimacy in my opinion. The problem is that it doesn’t explain things very well so I think most people are going to be pretty frustrated trying to understand this.
The opportunity is essentially about signing up, buying a bunch of products and then telling everyone you know so you can get recruits under you and sell product to them. Once you recruit your friends and family they are then in a position to do the same thing as you, you then earn money off their efforts and so on right down the lines of your organisation.
For those of you looking for more details keep reading as I go through the different aspects of the comp plan…
How You Can Earn
Selling Product: This first way you can earn is by selling product at retail. You buy at wholesale and then sell at retail, if someone buys through your replicated website then you earn the difference between wholesale and retail.
There’s also a ‘loyal customer’ program which any customer can join for free and then get the same prices as you.
All they need to do is agree to a monthly auto ship and they’re good to go. Apparently you “earn a 30% DSB commission” on these orders but there is no explanation as to how much this is going to amount to anywhere in the comp plan.
That’s a pretty big thing to leave out of the comp plan and it seriously makes me question why on earth they would do that?? Not a good sign.
Pretty much no one in their right mind would buy at retail since it’s free to get wholesale pricing and there’s no lock in contract… go figure. So how much you’ll earn for selling product to ‘loyal customers’ is a bit of a mystery.
DSB Commission: This is a payment they give you for any recruit you sign up that buys product within their first 30 days. There’s also a matching bonus paid on the amount of DSB bonus your downline is earning, this varies according to your rank.
These amounts were also not explained very well in the comp plan, you really need a price list and details on the commissionable volume of each product among other specifics to really understand this.
Team Overrides: There are 9 levels deep you can earn with in this company and you will earn a set percentage of the total product sales being made on each level.
Infinity Bonus: This is a bonus that pays you from the 6th level of your downline down until it reaches the next executive director. It will then restart once more until it hits that persons executive director, at which point this bonus stops. The bonus pays between 0.05-1% of all qualified sales in your downline from level 6 onwards and you must be an executive director yourself for this to take effect.
Lifestyle And Rank Advancement Bonuses: The lifestyle bonuses gets paid to you when you hit silver rank or above and ranges from $500-$5000 per month. The rank advancement bonus pays you a certain amount for advancing in rank between executive director and platinum ranks only.
Minimum Income Bonus (MIG): This pays you a set amount each month for maintaining a rank level of executive director or above. You must have 3 people sponsored who each maintain certain requirements. I actually do like this aspect of the plan and I think it is pretty fair.
Getting Started And Staying Active
To get started will cost you either $9.99 per month or $49.99 every year.
Here’s where it gets confusing…
On one hand it says you need to ‘become qualified’ to start earning commissions and on the other hand it doesn’t tell you what you need to do to qualify.
It tells you what you need to do to become one of the ‘stars’ which seems to be a separate ‘once only’ kind of gig rather than your normal monthly requirement.
The ‘Director’ rank requires 28PBV each month which is pretty low, but again there is information missing. Since they don’t provide a price list with the volume attributed to each product it’s impossible to know how much this will actually cost without signing up.
It might be that 1PBV equals roughly $1 which is mostly the case but it may not either, who knows. If 28PBV equals $28 then that is very low in comparison to other companies.
What I Liked
- The products might be pretty decent
- There doesn’t appear to be a huge monthly purchasing requirement at the lower ranking levels
- Low cost to join
What I Didn’t Like
- Compensation plan is among the most confusing and irritating I’ve ever come across with important information missing
- They do not provide a price list which made it near impossible to evaluate this opportunity accurately in terms of costs
- They teach the warm market (AKA hustle your family and friends) technique
- No hard evidence to support their health and wellness claims
- They do not provide an income disclosure
The company does seem to have some interesting looking products that may or may not live up to their claims. I’m not a fan of the mystery surrounding ‘Bi Bong’ formula and how much CBD is actually in each product is not clear.
They also leave out some really important information that limits a persons ability to properly evaluate this opportunity before signing up. This may mean they focus on delivering convincing presentations instead of helping people make informed decisions with fact based information.
All in all my biggest beef is with the way they teach people to build a business, using the warm market strategy. In my opinion this is not the best way to build a business and it is drastically reducing your target market. I can assure you that the vast majority of people using this strategy do not achieve any kind of longterm success, this business is about recruiting and your family and friends are only going to buy so much hemp!
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