Kannaway is a relatively new multi-level marketing company that sells hemp-infused products. The company has been around since 2014 and is headquartered in San Diego, California. Kannaway markets a wide variety of products, including CBD oil, skin care products, and wellness supplements. In this review, we’ll take a look at Kannaway’s business model, compensation plan, and product line to see if it’s a legitimate opportunity or if it’s a scam.
History of Kannaway
Kannaway was founded by a group of entrepreneurs with experience in the network marketing industry and a passion for the cannabis industry. The company’s mission is to educate the world about the benefits of hemp and CBD products and to provide people with safe, effective, and high-quality hemp-based products. Kannaway is a subsidiary of Medical Marijuana, Inc., a publicly traded company that was founded in 2009. Medical Marijuana, Inc. is the first publicly traded company in the United States that’s focused on the medical marijuana and CBD industry. Kannaway began selling its products through a network of distributors in 2014.
The name Kannaway is derived from the word “cannabis.”
What products does Kannaway sell?
Kannaway sells a wide variety of hemp-infused products, including CBD oil, skin care products, and wellness supplements. Kannaway’s CBD oil is made from a proprietary blend of CBD and hemp oil. The company’s skin care products are made with CBD-rich hemp oil and other natural ingredients. Kannaway’s wellness supplements include a daily multivitamin, probiotic, and omega-3 supplement.
CBD oil is said to have a number of potential health benefits, including reducing anxiety, relieving pain, and improving sleep. CBD oil is also said to be anti-inflammatory and anti-seizure.
CBD is extracted from the hemp plant. The hemp plant is a type of cannabis plant that contains high levels of CBD and low levels of THC. THC is the psychoactive compound in cannabis that gives users the “high” feeling. CBD does not have any psychoactive effects.
CBD oil is legal in all 50 states. Hemp-derived CBD products are also legal in Canada.
CBD oil can be used in a number of ways, including taking it orally, applying it to the skin, and inhaling it. Kannaway recommends that first-time users start with a low dose and increase the amount gradually until they find the dose that works best for them.
- CBD oils: Kannaway offers a variety of CBD oils, including full-spectrum, broad-spectrum, and isolate oils. Kannaway’s CBD oils are available in a variety of strengths and flavors. Full-spectrum CBD oil contains all of the compounds found in the hemp plant, including CBD and THC. Broad-spectrum CBD oil contains most of the compounds found in the hemp plant, but it has all of the THC removed. Isolate CBD oil contains only CBD. Kannaway’s full-spectrum oils are available in three strengths: 500mg, 1000mg, and 1500mg. Kannaway’s broad-spectrum oils are available in two strengths: 1000mg and 2000mg. Kannaway’s isolate oil is available in one strength: 1000mg. Kannaway’s CBD oils are available in four flavors: Natural, Peppermint, Lemon-Lime, and Orange.
- CBD topicals: Kannaway offers a CBD salve and a CBD lip balm. Kannaway’s CBD salve is made with full-spectrum CBD oil, beeswax, and other natural ingredients. Kannaway’s CBD lip balm is made with full-spectrum CBD oil and other natural ingredients.
- CBD edibles: Kannaway offers CBD-infused coffee, tea, and chocolate. Kannaway’s CBD coffee is made with Colombian coffee beans that are infused with broad-spectrum CBD oil. Kannaway’s CBD tea is made with a blend of full-spectrum CBD oil and black tea leaves. Kannaway’s CBD chocolate is made with dark chocolate that’s infused with full-spectrum CBD oil.
- CBD for pets: Kannaway offers a line of CBD products for dogs and cats. Kannaway’s pet CBD products are made with full-spectrum CBD oil and other natural ingredients. Kannaway’s pet CBD products are available in three formulations: Calm, Mobility, and Pain & Inflammation. Kannaway’s pet CBD products are available in two strengths: 125mg and 250mg.
- Hemp-based food and supplements: Kannaway offers a variety of hemp-based food and supplements, including a daily multivitamin, probiotic, and omega-3 supplement. Kannaway’s hemp-based food and supplements are made with full-spectrum hemp oil and other natural ingredients. Kannaway’s daily multivitamin is available in two formulations: Men’s and Women’s. Kannaway’s probiotic is available in two formulations: unflavored and vanilla. Kannaway’s omega-3 supplement is available in one strength: 1000mg.
- Skin care products: Kannaway’s skin care line includes a face cream, face serum, body lotion, and lip balm. Kannaway’s skin care products are made with full-spectrum CBD oil and other natural ingredients. Kannaway’s face cream is available in two strengths: 500mg and 1000mg. Kannaway’s face serum, body lotion, and lip balm are all available in one strength: 500mg.
Kannaway sources its CBD from a company called Eurofins Food Integrity and Innovation, which is based in Europe. Kannaway is a Eurofins-certified CBD supplier.
Kannaway cites a number of studies on its website to support the claims made about its products. For example, Kannaway cites a study that found that CBD may help reduce anxiety and another study that found that CBD may help treat pain. However, it’s important to keep in mind that most of the research on CBD is still in its early stages.
What is Kannaway’s business model?
Kannaway operates as a multi-level marketing company. The company sells its products through a network of independent distributors. Distributors earn commissions on the sales of Kannaway products that they make. Kannaway also offers a business opportunity for those who want to build their own team of distributors.
Kannaway’s compensation plan pays distributors commissions for selling Kannaway products and for recruiting other distributors to join the company. Kannaway offers a few different ways to earn commissions, including retail commissions, preferred customer commissions, team commissions, and rank bonuses.
- Retail commissions: Kannaway pays its distributors a commission on the retail sales of Kannaway products. Kannaway offers a retail price list on its website. The retail commissions range from 10% to 30%, depending on the product and the distributor’s rank.
- Preferred customer commissions: Kannaway pays its distributors a commission when they sell Kannaway products to preferred customers. Preferred customers are those who sign up for a monthly subscription to Kannaway’s product auto-ship program. The preferred customer commission is 10%.
- Team commissions: Kannaway pays its distributors a commission when they sponsor other distributors and those distributors make sales. Kannaway uses a binary compensation structure to pay team commissions. Kannaway’s binary compensation structure has two sides: the left side and the right side. Kannaway pays team commissions on sales made by distributors on both sides of the binary. Kannaway also offers a team override commission, which is a commission that’s paid on sales made by a distributor’s downline team. The team override commission is 1%.
Kannaway rewards its distributors with rank bonuses as they advance in the company’s rank system. Kannaway’s rank system has seven levels:
- Affiliate: To qualify as an Affiliate, a Kannaway distributor must generate at least $100 in PV within a calendar month.
- Bronze: To qualify as a Bronze, a Kannaway distributor must generate at least $500 in PV within a calendar month.
- Silver: To qualify as a Silver, a Kannaway distributor must generate at least $1,500 in PV within a calendar month.
- Gold: To qualify as a Gold, a Kannaway distributor must generate at least $3,000 in PV within a calendar month.
- Platinum: To qualify as a Platinum, a Kannaway distributor must generate at least $6,000 in PV within a calendar month.
- Diamond: To qualify as a Diamond, a Kannaway distributor must generate at least $12,000 in PV within a calendar month.
- Double Diamond: To qualify as a Double Diamond, a Kannaway distributor must generate at least $24,000 in PV within a calendar month.
Kannaway also offers a few other bonuses, including the Fast Start Bonus, which is a bonus paid to new Kannaway distributors who sponsor other distributors and help those distributors make sales. The Fast Start Bonus pays out up to 20% of the PV generated by a new distributor’s downline team.
How do you join Kannaway?
To join Kannaway, you must sign up as a distributor. Kannaway does not disclose the cost of becoming a distributor on its website. Kannaway’s website says that you will need to purchase a “Business Kit” to get started. It’s unclear what is included in the Business Kit or how much it costs.
Is Kannaway a legitimate company?
It is not a pyramid scheme. Kannaway is a legit MLM company that sells real products. However, like all MLM companies, Kannaway relies heavily on recruitment to grow its business. Kannaway distributors make most of their money by recruiting other distributors and not by selling Kannaway products.
Under a pyramid scheme, participants only make money by recruiting new participants. Kannaway is not a pyramid scheme because Kannaway distributors make money by selling Kannaway products, not just by recruiting new distributors.
How about complaints or lawsuits?
As of May 2018, the Kannaway website says that the company has a “A+” rating with the Better Business Bureau. The BBB’s Kannaway business profile shows that Kannaway has been accredited by the BBB since May 2014 and that the company has received 17 complaints in the last 3 years. Most of the complaints are about billing and collection issues. Kannaway has responded to all 17 complaints.
Kannaway has also faced a few lawsuits.
- In April 2018, Kannaway was sued by a former distributor who alleged that the company is a pyramid scheme. The lawsuit is still pending.
- In October 2017, Kannaway was sued by another former distributor who alleged that the company is a pyramid scheme. Kannaway settled the lawsuit in April 2018. Under the settlement agreement, Kannaway did not admit to any wrongdoing.
- In September 2016, Kannaway was sued by a former employee who alleged that she was fired because she was pregnant. The lawsuit was settled in November 2017. Under the settlement agreement, Kannaway did not admit to any wrongdoing.
What we like about Kannaway
- Kannaway is a legitimate MLM company that sells real products.
- The company has been in business for several years and appears to be doing well.
- Kannaway has a good Better Business Bureau rating and has responded to all complaints filed with the BBB.
- Kannaway has faced a few lawsuits but has settled all of them without admitting to any wrongdoing.
What we don’t like about Kannaway
- Kannaway is an MLM company, and most people who join MLM companies lose money.
- Kannaway distributors make most of their money by recruiting other distributors, not by selling Kannaway products.
- The cost of becoming a Kannaway distributor is not disclosed on the company’s website.
- Kannaway’s compensation plan is complex and difficult to understand.
Are there alternatives to Kannaway?
Yes. If you’re interested in joining an MLM company that sells CBD-infused products, you may want to consider joining HempWorx or My Daily Choice. These companies are similar to Kannaway in many ways but have a few key differences. For example, HempWorx requires its distributors to purchase a $99 starter kit before they can start selling products, while My Daily Choice does not have any upfront costs. You can learn more about these companies in our HempWorx review and My Daily Choice review.
Other multi-level marketing opportunities:
- Mary Kay
- Pampered Chef
- Rodan + Fields
- Thirty-One Gifts
- Young Living Essential Oils
- doTerra Essential Oils
Do we recommend Kannaway?
Kannaway is a legitimate MLM company that sells real products. However, like all MLM companies, Kannaway relies heavily on recruitment to grow its business. Kannaway distributors make most of their money by recruiting other distributors, not by selling Kannaway products. We do not recommend Kannaway. There are other MLM companies that sell similar products and do not rely as heavily on recruitment.
What to look for in a multi-level marketing company
When considering joining a multi-level marketing company, there are a few things you should look for:
- The company should sell real products that people want or need.
- The company should have been in business for several years and have a good reputation.
- The compensation plan should be simple and easy to understand.
- The company should not require its distributors to make a large upfront investment.
- The company should not be facing any lawsuits or complaints.
As always, we recommend that you thoroughly research a company if you’re thinking about joining as a distributor. One of your most important sources of information in MLM companies and other online money-making opportunities is I Buy I Review. Our mission is to provide you with honest and unbiased reviews of MLM companies, online money-making opportunities, and other business ventures. We’ll let you know if we think an opportunity is legitimate or a scam.
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