There is no denying the fact that the cannabis business is here to stay. It’s almost impossible to turn on the television or access news on the Internet and not see an article or video talking about either medical marijuana, recreational marijuana or cannabidiol (CBD) and how many people have found success using all these different substances to better their health. Thanks to the new and booming market that has been created around cannabis, there have been a few business opportunities spring up that promise to help you jump on the bandwagon. One such opportunity that I came across recently is Kannaway. In this Kannaway MLM review, we’re going to see if Kannaway is your best option for creating a business around CBD in the medical cannabis industry.
What Is Kannaway?
Kannaway is a company that was founded in 2014 and sells a variety of different health related products. They operate in a multilevel marketing or MLM structure that focuses on recruiting people into downlines who then sell their products and business opportunities to other people.
The company was bought by medical marijuana Inc. in 2015 and added to a large profile of different medical marijuana, CBD and hemp websites. This is important and we’ll discuss this in more detail in the review below.
People who sign up as “brand ambassadors” to Kannaway for $54.98 per year and buy enough products to keep them in specific commission tiers earn money by selling products and recruiting other people to sell Kannaway products under them. This cycle continues and those who are at the top of the downline tend to make significantly more money than those further down the list.
Kannaway’s Loss in Popularity
So, if you were able to get into Kannaway in 2014, when times were really booming, you would probably be far more successful than you would be now. As you can see in the image below, there were a lot of people really interested in Kannaway in 2014.
From late 2014 to mid-2017, interest in the company dropped significantly and while it has rebounded some, the overall interest in the company is still at a loss, according to MLM rankings as you can see below.
In Kannaway’s defense, it may have been possible that the decrease in interest was because they were switching hands as this was during the same timeframe that they were acquired by Medical Marijuana Inc.
Pros and Cons of Kannaway
- Appear to Have Good Products
Very few people say anything negative about the products available at Kannaway. The only thing most people complain about is their prices.
- Your Success Depends on People You Recruit
Just like many other MLMs, the overall success you have depends on how successful the people you recruit are at recruiting others and selling the products available at Kannaway.
- Oversaturation in the Market
As more laws continue to be passed allowing additional people access to medical and recreational cannabis and CBD oil, there are more and more products available every day at local retailers making an MLM version of the same product very challenging to promote, in my opinion.
While most reviews online agree that Kannaway has quality products, there are a lot of people who complain about the prices of those products. That’s understandable, we’ll talk a little bit more about that below.
- Legal Challenges
While hemp and hemp products are federally legal, there are still some gray areas that you may run into depending on your local area and their stance on marijuana and hemp laws.
- CBD Is A Supplement
Even though him and CBD oil extracted from hemp is federally legal in the US and Canada, the United States FDA classifies these products as nutritional supplements. Unlike the medical marijuana industry, claims can’t be made as to if they are beneficial to your health or if they could be used to help treat any disease processes.
- Confusing Product Category
The cannabis industry is still a very confusing arena. If you’re uncertain about any local laws in your area, you should proceed with caution and do your due diligence before starting any kind of hemp or cannabis related business.
- Confusing Website
Navigating the Kannaway website is very confusing, in my opinion there are countless membership options with different product combinations and price points. Also, there were a few glitches when I was on the site that resulted in items being added or removed to my cart that I never clicked on.
- Confusing Commission Structure
Kannaway has a very long document and explanation video that goes over how their commission structure works. Basically, you make around $15 for every person you sell a product to regardless of how much money they spent. The way you make money with the company is to sign other people up for monthly subscriptions and have them sign additional people up below them.
- This Is Not Medical Cannabis
It’s very important that you realize the products offered at Kannaway are not medical cannabis. Hemp oil is extracted from the seeds of hemp plants while CBD oil that is typically sold in medical cannabis dispensaries is extracted from the buds and flowers of different medical cannabis strains. More information on this topic in the review below.
Kannaway MLM Review – I’d Stay Away
After doing a bit of a deep dive into Kannaway, it’s an opportunity that you may be better off avoiding, in my opinion. There are a few different reasons that I’ve come to this conclusion.
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Hemp vs Medical Cannabis
Many people argue that CBD oil from hemp plants is the exact same thing as CBD oil from medical cannabis. This isn’t the case. First, the extraction process is completely different in acquiring CBD oil from hemp versus acquiring CBD oil from medical cannabis.
In medical cannabis, CBD oil is extracted by taking strains that are specifically grown to have higher levels of CBD and low levels of THC after these strains have been specifically cultivated, hemp oil is extracted by putting hemp seeds and stalks under pressure and extracting oil from them. When acquiring oil from hemp plants, the flowers or buds must be discarded, per federal law, as these parts of the plant are considered marijuana and thus federally illegal.
On the flipside, when CBD oil is processed in areas that allow medical or recreational marijuana, it is created by using multiple areas of the plant, including the flowers or buds. This creates what is referred to as Phyto cannabinoid-rich hemp oil and is responsible for most of the studies that have been done showing its medical benefits.
There is a popular theory among medical cannabis researchers called the “entourage effect” that basically states that more medical benefit is gained by using the entire plant. Yes, this includes the THC components of the plant as well. When using whole plant CBD oil, the THC is so low that psychoactive effects aren’t observed, but it is still present and is suspected to play a part in the overall effectiveness of the oil. THC is stored in the flowers of cannabis plants, meaning that hemp extracted CBD oil does not contain enough THC to create the entourage effect in most cases.
Different Strains Do Different Things
There are thousands of different cannabis strains already available on the market with more being created every day. Every individual strain does something a little different. For example, a doctor who advises patients on which medical strains to use would recommend one strain for an elderly patient with arthritis and a completely different strain for a pediatric patient suffering from epilepsy.
Some strains that were originally bred for medical cannabis fall under the criteria required for industrial hemp due to their low THC content. However, companies selling industrial hemp products typically don’t list what strains their products contain. This is the case with Kannaway as well.
Since all strains are not created equally, even though the products offered by Kannaway are listed as containing CBD, no mention is present as to what strains have been used to acquire the CBD. This is important information to know when using CBD for medical purposes.
I’m not saying that hemp derived CBD oil isn’t effective for things, there are a lot of people out there who have found relief using hemp derived CBD oil products, and
Medical Marijuana, Inc Is Creating More Competition
As I briefly mentioned above, Kannaway was purchased by Medical Marijuana Inc. in 2015. Normally, this wouldn’t be that big of a deal, but in this instance, it is in my opinion. That’s because as you can see in the images below, the company offers similar products on their other website, HempMeds.
The reason that this is such a big deal is that the Kannaway product is almost $50 more expensive than the product available on HempMeds. In a recent blog post over at HempMeds, the company stated that their product had been featured in the Prescriber’s Digital Reference as a dietary supplement. As you can see in the image below, it is in fact listed in the Prescriber’s Digital Reference and shows that the two products shown side-by-side above are, in fact, the same product priced $50 more expensive for Kannaway customers.
This is very important to note because HempMeds has whole sale options available where they will sell products to retailers. For your business, this means that you may be trying to sell products that are available right down the street for almost $50 less.
MLM’s Are Tough Enough without More Competition
The final reason that I will stay away from Kannaway personally is that the MLM business model is very hard to succeed with on a good day. It becomes even harder to succeed with when the company that owns the company who you’re partnered with and sells the products significantly cheaper.
Many people find that with MLM businesses, they may be able to initially recruit a few friends and family members. Sadly, after that they struggle to keep up with the commission tears required to keep getting paid and finally run out of people to promote goods and services to.
Since your success is determined by how well the people you have recruited are doing at recruiting their own leads, you end up becoming a sales team manager for the MLM you’re promoting rather than a business owner.
So, What’s Better Than Kannaway?
As mentioned above, being successful with an MLM is more about how well your team performs rather than how hard you work. What if there was a way for you to be able to create an online business that would pay you for years to come and its success would be determined by the amount of work you put into it?
Thankfully, there is a place that you can learn more about creating your own online business that will pay you well into the future. Head on over to my top recommended resource and check it out.
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