Is Kannaway A Scam? Legit CBD Products Seller or Another Scam?
You're here because you typed the words "is Kannaway a scam" into Google (or another search engine). Then good for you because I'm here to shed light on the MLM company called Kannaway, as well as its history and its products.
You're going to learn about the company's compensation plans, as well as the benefits of joining as a brand ambassador. You're also going to learn about the ugly truths about Kannaway, and whether it is a scam or not.
Ready? Let's begin!
Price to join: $54.98 Annual Brand Ambassador Business fee
Do I recommend? No.
Summary: Kannaway is a California-based company which offers CBD-infused hemp extract products. Its primary marketing strategy is multi-level marketing, and it puts an emphasis on recruiting people and building downlines. Brand ambassadors, however, do not get paid for every recruit they make, and they are only compensated for every sale members of their downline makes.
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What Is Kannaway?
Kannaway LLC is a US-based company that sells hemp extract products that are infused with cannabidiol (CBD). It was established in 2014 and is headquartered in California. But this isn't your ordinary CBD company. Kannaway, unlike many of its competitors that sell directly to consumers, has an MLM marketing strategy.
Kannaway distributors are not just "distributors" or "business partners" — the company calls them Brand Ambassadors (fancy, right?). According to Kannaway's website, the company's mission is to help their distributors achieve success by distributing the company's CBD-infused products. Kannaway works with brand ambassadors to reach their business goals while rewarding those who work hard in selling the products.
The company main products are CBD-infused hemp extract and it offers several specialized product lines. Apart from CBD-infused hemp oil, Kannaway also offers edibles, skincare products, and vaporizers. The company also offers apparel, CBD-infused pet products, and other goods.
The Better Business Bureau® (BBB) has awarded Kannaway with an A+ rating, but that doesn't mean that everything's rosy with this company. In 2014, fellow CBD oil seller CannaVEST (now named CV Sciences, Inc.) accused Kannaway of trademark infringement.
In the following year, Medical Marijuana (the company which also owns Kannaway) accused the Colorado-based laboratory, Steward Environmental, of posting incorrect information about the level of toxic solvents in the company's products.
In 2018, Kannaway's Belgian brand ambassadors ran afoul of local authorities after they were accused of illegally selling cannabis oil in the country. According to the Belgian newspaper Het Laatste Nieuws, Kannaway brand ambassadors allegedly preyed on severely ill patients, as well as practiced a pyramid business model.
Is Kannaway A Pyramid Scheme?
The good thing is Kannaway is a legitimate company that employs an MLM business model. It is not an outright pyramid scheme because the company has a lot of CBD-infused products available, and brand ambassadors have the option to focus on selling them.
But there are aspects of its business practices that are very similar to pyramid schemes. To better understand why this is so, take a look at the illustration below.
Kannaway's commission structure looks like this. Apart from selling Kannaway's products, brand ambassadors are also encouraged to recruit someone else — maybe a friend or a family member — to become a part of their team or downline. Brand ambassadors then earn commissions every time the team members under them make a sale.
This is legitimate MLM, but the practice borders on pyramid scheme when brand ambassadors spend most of their time and expend more effort in recruiting team members rather than actually selling Kannaway products.
The bad news is that when it comes to MLM, there are only a few products that will sell like hotcakes in an already crowded health and wellness market. So you'll be stuck making recruits and building your downline in hopes of earning all those much-needed commissions.
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Success Is Rare At Kannaway
Multilevel marketing (MLM) is still one of the most popular marketing strategies today. But that doesn't mean that there are a lot of people driving Porches and living in million-dollar homes out there thanks to MLM. The fact that only a small percentage of the population get rich through MLM and people are still duped into investing their time and their hard-earned money on this business model boggles the mind.
When you enroll as a Kannaway brand ambassador, the company grants you the right to sell its CBD-infused products. But take a look at the health and wellness market right now. It is already crowded with CBD products, so Kannaway products might be hard to sell considering the sheer number of competition.
So you'll have no choice but to spend your time recruiting your friends or neighbors to sell under you so you can earn additional commissions. But even when you work hard recruiting other people, your success is not guaranteed.
Even when you have recruited multiple brand ambassadors, you'll eventually realize that many are not talented when it comes to selling the products.
Others may have only signed up because you were so adamant in recruiting them and they have said 'yes' only to get you off their backs.
Or others have signed up because of the exciting potential of earning money easily but have fallen by the wayside after several months.
Kannaway also has not published any income disclosure statements online so that should be another reason to dissuade you from investing your time and money in this company.
It's not about Kannaway or any other company that employs MLM as a business model. MLM, at its core, is a flawed business model, and monetary success is rare for any company that uses this marketing strategy.
How Much To Join Kannaway?
One of good things about Kannaway is that it allows potential brand ambassadors to "own" a business without spending thousands of dollars as capital. Kannaway's annual brand ambassador business fee is $54.98 (tax not included), and it comes with several benefits including:
a) CBD-rich hemp products available at wholesale pricing
b) The ability to earn just for sharing Kannaway to your friends or family
c) Your very own replicated Kannaway website that you can show your potential team members
d) A virtual office that allows brand ambassadors to keep track of their earnings and the members of their team
e) Tax advantages
f) Training materials provided by the company
g) Eligibility to receive incentives, such as special trips.
Kannaway's distributors start as Brand Ambassadors. When they hit certain income requirements and recruit a set number of team members, they gradually climb through the ranks to become Directors, Senior Directors, Executive Directors, and so on.
The highest rank is the Double Crown Ambassador Elite. The good news is whether you're a fledgling brand ambassador or you've already reached the rank of Double Crown Ambassador Elite, the Annual Brand Ambassador Business Fee you'll still be paying is still $54.98.
What Is Kannaway's Compensation Plan?
Kannaway has two requirements when it comes to earning commissions. First, you need to be a Kannaway Brand Ambassador and pay the $54.98 annual membership fee.
The second requirement is for you, the brand ambassador, to "maintain the minimum Personal Business Volume (PBV) required for your rank each month, either through customer sales or personal orders."
Keep in mind, however, that you will not receive any compensation for every new team member you recruit. You will only receive a percentage every time a member of your downline makes a sale. This will push you to recruit more team members to supplement your income at Kannaway.
We won't discuss every single detail of the Kannaway Compensation Plan, but here are some of the ways you can get paid.
* Direct Sales Bonus
Brand ambassadors can earn a 30% commission on the Kannaway products bought by his or her new team members within a 30-day period.
* FastStart 3000 and 9000 Bonus
To get the FastStart bonus, brand ambassadors will need to buy or sell what Kannaway calls the Kannaway Value Pack during their first 30 days. They will then enroll 3 new customers or team members who will also buy or sell any of the Value Packs.
* Lifestyle Bonus
Kannaway business partners will qualify for the Lifestyle Bonus when they reach the rank of Area Director and beyond. They need to stay within the rank for a month before they will receive the Lifestyle Bonus. They will receive the bonus in the third month.
For more information about Kannaway's compensation plan, click here.
You can also check out this video for more information about Kannaway's compensation plan:
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What Products Does Kannaway Offer?
Kannaway offers a myriad of CBD-infused products that were extracted from hemp. Apart from products infused with CBD, the company also offers clothing, accessories, and hemp-derived products for pets. Check out the overview of these product lines below.
Kannaway Value Packs
If you're looking to sample some or all Kannaway products, then the Kannaway Value Pack is the best choice.
There are several Kannaway Value Packs available for brand ambassadors, and they are available at different prices. First is the Starter Value Pack which is available at a Preferred Customer Price of $249. This pack includes a CBD-infused Kannaway Salve, one bottle of Premium Full Spectrum Caps, and a bottle of Premium Full Spectrum Liquid. A copy of Kannaway's Prosper Magazine is also included.
Other value packs include the Pure Starter Value Pack (Preferred Customer Price at $249), Fast Start Jr. Executive Value Pack ($699), Fast Start Sr Executive Value Pack ($999), and Fast Start Total Product Experience Value Pack ($1,899.99).
These value packs include several Kannaway products to help brand ambassadors get started. The most basic value pack is the Starter Value Pack and Pure Starter Value Pack, while the Fast Start Total Product Experience Value Pack contains all Kannaway products for you to sample. Retail price is considerably higher than Preferred Customer Price.
There are three products in Kannaway's Rev!ve line. There's the Rev!ve AM which contains Kannaway's very own bi-bong herbal blend which the company claims helps boost the mind and improve mood.
Then there's the Rev!ve PM, an oral solution which contains Kannaway's bi-bong herbal blend, Vitamin D3, lecithin, and of course, CBD. Kannaway recommends that consumers take the oral solution before going to bed.
Lastly, there's the Revive Pro. This oral solution combines the benefits of bi-bong herbal blend with the potency of CBD. Each bottle contains 1000 mg of CBD.
Cannabis Beauty Defined®
CBD's anti-inflammatory properties make this compound a great additive to skin care products. There are several products under Kannaway's Cannabis Beauty Defined®, including its cleanser and serum. Brand ambassadors and customers also have the option to purchase the Defined Ageless Beauty Bundle.
Kannaway Premium Hemp Oil Products
Kannaway offers a wide selection of Premium Hemp Oil Products for brand ambassadors and customers alike. Some of the products in this line include the Premium Full Spectrum Liquid, Premium Full Spectrum Capsules, Holiday Chocolate Energy Chews, and more! From topicals to edibles, CBD fans will be spoiled for choice with Kannaway's wide array of products.
CBD is not just for humans. Dogs can also benefit from it, that's why Kannaway came up with its own product line geared towards man's best friend. Customers can choose from Dante's Pure Hemp Oil, Chews by Dante, and Dante's Chew Toy. Dante's Choice SmartShip is available for dog owners who want their canines to try the hemp oil and the tasty treats.
Kannactiv is Kannaway's specialized skincare bundle. Each pack contains a gentle scrub, a nutrient-rich toner, and a light moisturizer. Available at $88 for preferred customers (with a higher retail price).
Kannaway's HempVAP VP 100 mg is an atomizer cartridge that allows consumers to enjoy CBD by vaping. There's also a Multi-Pack which contains 4 Hemp Oil Atomizers and 15 replacement tips.
Hemp is a truly versatile plant. It a great source of CBD and other cannabinoids, but its fibers are also used to produce textiles, skincare products, and more.
That's why Kannaway came up with Hempy's, the company's "brand of Responsibly Sourced Hemp Clothing and Accessories." It includes Hemp Shirts, Hemp Beanies and Hats, Hemp Jeans, Hemp Candles, and Hemp Lip Balm.
What I Like About Kannaway
Success is rare at Kannaway, but that doesn't mean it doesn't have positive points.
* Good reputation with an A+ rating from BBB
Kannaway was founded in 2014, and while it has a few complaints here and there, its reputation as a good company has largely remained intact. The Better Business Bureau gave it an A+ rating, while many customers are gushing about how effective the CBD-infused products are. Take a look at some reviews below.
* Wide selection of CBD-infused and non-CBD products
Unlike other companies, Kannaway offers a wide selection of products for its customers and brand ambassadors. There is CBD-infused hemp oil combined with Kannaway's own bi-bong herbal blend, CBD topicals, CBD pet treats, and hemp-derived clothes and accessories. Plus, the products are unique so they may be easier to sell in a saturated market.
What I Don't Like About Kannaway
* Expensive enrollment fee
New brand ambassadors (or independent business owners) need to pay a membership fee of $54.98. This fee is debited every year on the anniversary of your membership. Although it is paid once a year, it is still expensive and keep in mind that it doesn't include any Kannaway products that you can sell.
* Some cannabis-derived products still have ambiguous legal status in some states (yes, even hemp oil)
Hemp, the plant from which CBD is extracted from, is a type of cannabis plant. Although hemp cultivation has been legalized thanks to the 2018 Farm Bill, there are still some restrictions.
Since hemp is a type of cannabis plant (just like marijuana), it still carries a stigma around it. In some states, some cannabis products (even those that contain high amounts of CBD and only have negligible amounts of THC) are still restricted.
That is why you'll need to double check the laws in your state before signing up to become a Kannaway brand ambassador.
* Expensive products
MLM products are expensive, and Kannaway products are not exempted. The Kannaway's Starter Value Pack costs $298.80 (discounted for preferred customers). This starter pack contains one Salve, one bottle of Premium Full Spectrum Capsules, one bottle of Premium Full Spectrum Liquid, and a copy of Kannaway's Prosper magazine. At nearly $300, there's no doubt that this is too expensive.
Let's take a look at other Kannaway products. Check out Kannaway's 2oz Pure Liquid, an oral solution that contains 500 mg of CBD. It retails at $101.99 which is pretty steep for a product that contains only 500 mg of CBD. Similar products from other brands, on the other hand, can be purchased at a lower price.
The same could be said of Kannaway's Premium Full Spectrum Capsules which retail at $113.99. Non-MLM brands also offer these CBD-infused capsules at a much lower price. Because there are more affordable alternatives in brick-and-mortar stores and online, it may be hard to sell Kannaway's products.
Is Kannaway A Scam?
So, is Kannaway a scam?
No, Kannaway is not a scam. It is a legitimate company which offers CBD-infused hemp extract products. Its primary marketing strategy is multi-level marketing, and it puts an emphasis on recruiting people and building downlines. Brand ambassadors do not get paid for every recruit they make, and they are only compensated for every sale members of their downline makes.
But don't expect to earn thousands of dollars immediately when you become a Kannaway brand ambassador. Although it's a legit MLM company and is not a scam, the products are expensive and can be hard to sell. You'll be stuck recruiting people and building your team in hopes that they will make a sale and you'll earn a percentage from it.
You'd be better off investing your time and money in other things.
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If you want to join Kannaway to supplement your income and if you have some money stashed around as an initial investment, then go ahead and sign up. But if you're looking to quit your day job and work full-time as a Kannaway ambassador, then you're going to be disappointed. The MLM industry is a dog-eat-dog world, and the income potential is extremely low. You're better off investing your time and money somewhere else.
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