Cannabis and MLM – Can they work?

weed mlm

MLM or “Multi-Level-Marketing” has been around since 1945, when a California Vitamin Company implemented the sales-model. For those unfamiliar with this – MLM is a referral marketing strategy where participants build a sales-network in order to make money off each product sold within their own network.

The only way to join the network is to be invited by a “brand ambassador” or representative or whatever lingo the particular network uses. Once invited, you will have to commit to making a monthly purchase of the product to remain active – while simultaneously building your network by inviting other people to join.

It’s important to establish that there are several different “types” of MLM businesses. Some are sales-drive while other focus on consumer-driven marketing. The difference being that within a “sales-driven” model you’re main activity will be focused on ‘selling the product’; whereas in a “consumer-driven model” you’ll primarily be ‘buying the product for yourself’.

ONE OF THE BIGGEST ISSUES WITH MLM comes down to the quality of the product. These types of businesses tend to make an exuberant amount of money really quickly. In essence, these businesses outsource their sales to the consumers with the promise of giving them a sustainable side-income.

This brings us to cannabis – mainly, CBD as of now. CBD has been legally available virtually all over the world for a few years now. Due to the accessibility and medical prowess of the cannabinoid – it has been a perfect match for an MLM system, especially seeing that health & wellness products are typically prime candidates for MLM systems.

Wait…aren’t MLM systems Pyramid Schemes?

People often call MLM system “Pyramid businesses” since a sales network – when jotted out on paper – resembles a pyramid. The idea being that YOU are on top of the pyramid and those beneath you give you commissions on their sales.

In reality – there are plenty of commission based jobs that follow similar protocols.

MLM systems are no different. In order for you to make money – you need to invite people to participate underneath you. Every time they make a purchase – you make a percentage on their purchases.

When they invite people – you also will get a smaller percentage of their sales. And depending on the system you’re in – this could continue for a few levels.

For anyone who likes math – playing around with these numbers can be quite inebriating. However, what most fail to recognize is that “on paper” – anything can sound great!

Can Cannabis Remedy MLM?

I personally don’t think that Multi-Level Marketing isn’t a bad way of making money. In theory – it’s one of the most efficient ways for people to create an additional revenue stream without having to take on the risk of creating a new business.

It’s a “Done-For-You” business model and like every venture, has its Pros and Cons.

However – Cannabis or CBD definitely can make MLM far more appealing. As mentioned – one of the major pain points when it comes to MLM marketing is the quality of the product. Due to the sheer volume of money that can be earned from these systems – businesses tend to quickly forget about the product.

They want to expand aggressively in order to increase margins – yet, stop pouring money back into the business to make it sustainable for growth.

If a company can manage to maintain quality control and sell a product as reliable as CBD, THC or whatever else you can imagine – it definitely increases trust.

Can you actually make money on MLM?

To be honest – yes. There are many people who do make good money with MLM marketing. But then there are also many who simply don’t make any money and in some cases – lose money on MLM.

The problem being that most people who push MLM systems are overselling the benefits while underselling the costs and by costs I mean:

Money to invest

Time to invest

For those who are living paycheck to paycheck – this probably is NOT the best way for you. However, for those who are looking to make an additional revenue stream – it’s not a bad option…especially in a Consumers Market.

There are things you’ll need to consider;

You will need some money to get started and to sustain your position

You will need to get people to sign up below you

It won’t happen overnight – think 6-months before you really get good money [for the average person].

Once you have checked these boxes and still are interested, then I guess it’s a time to look at some MLM Cannabis companies.

Are there Legitimate Cannabis MLM Companies?

For those interested in engaging in MLM with Cannabis – here’s a list of the top 3 companies that sell CBD products and are currently engaging in an MLM Model.

Kannaway [Pioneer]

Kannaway calls themselves the “company of firsts” and when it comes to cannabis – they certainly are. They were the first publicly traded cannabis company in the US in 2009, First Direct Sales [MLM] company, first to make a Global Distribution Network, First American Cannabis company to break into foreign markets – and it seems they are continuing to do so.

If you’re looking for one of the oldest and internationally recognized MLM Cannabis brands – Kannaway is probably your best bet.

It’s primarily a consumer’s network meaning, you only have to buy your minimum to stay ‘active’ and whenever someone wants to know where you got your CBD from – you can pitch them the Kannaway Model.

If you’re interested in making some money with Kannaway – CLICK HERE. This will re-direct you to a page where you have to submit your email and name and one of their reps will take it from there.

Dose of Nature

This company has been around since about 2014 and are based in Utah. They make their products from a CBD-paste, unlike Kannaway that utilizes stricter protocols. Nonetheless – they are also a legitimate model that can be utilized to make money.

While not one of the oldest – they have been around for more than six years making them – at least in the world of MLM – quite old.

From what I can gather – people have not had any real issues with the brand [save the typical MLM quibbles]

If you’re interested in exploring Dose of Nature further – CLICK HERE. This will redirect you to their homepage. I wasn’t able to find a direct link to the MLM system but you can contact them directly.

Nutritional High Inc.

Headquartered in Toronto Canada – this company also came to market in 2014. Mainly focusing on Edibles and Extracts -however is only legally available in State with legal cannabis on the books. Unlike the other companies on the list – this company goes beyond CBD and sells cannabis products containing THC as well.

On the downside – their reach is far smaller than Kannaway meaning that the ability to make money is also limited.

Nonetheless – If you’re interested in finding out more about Nutritional High Inc – CLICK HERE. Here you’ll be placed on the first step of entering into the MLM process with this company.

NOTE – I’m not a part of any of these MLM systems as I’m writing this. I don’t want people to think that I have an incentive for writing it. Independently to all the information I included – I do think that it’s possible to make money on these systems if you like sales and cannabis. There are more systems out there – but my investigation showed these to be legitimate money-making avenues. If I were to enter into one of these – I’d probably consider Kannaway due to international reach, but really, they are all decent options so whatever works for you – go ahead. Just be realistic about what you expect.