Hempworx MLM Review Aug 2021 | Everything You Need To Know

By Netbooks Review

Last updated Jan 30, 2022

Initially an independent MLM startup, HempWorx was recently purchased by My Daily Choice, so distributors become My Daily Choice distributors but can build their business focusing entirely on the HempWorx line of products.

Hempworx MLM Review

HempWorx products are hemp-derived CBD oils and products including CBD oils, CBD pet oils, CBD-infused dog treats, CBD coffee and creamer, and anti-aging and pain relief creams infused with CBD oil. Most products are in the $59 – $69 range, making them affordable for a larger audience.

Product user reviews cite overall satisfaction with the product – in many cases, noting greater satisfaction with this product than with similar products produced by other companies – but some dissatisfaction with customer service and shipping. One trend among comments is the observation that HempWorx products aren’t as potent as others on the market, which might impact a distributor’s ability to sell the product.

HempWorx sales exceed $100 million in 2018.

Becoming a Distributor: Startup Costs

You can become a distributor with a $20 starter package, which includes a website, tracking tools, and phone application and is much less than the initial investment in many other multi-level marketing opportunities. However, you’re also required to buy a starter package of product, which varies from $69 – $599 depending on the startup package you choose. Package options range from a pet package, containing only pet products, to an executive package setting the distributor back $599. The company has a pay-to-play rule in place, which means they expect you to buy and use the products yourself (every month, actually) to ensure you experience the benefits and can speak to them, per their messaging.

Although startup costs can be low, those who spend more on their starter package earn more business volume (BV), which contributes to their ability to earn bonuses and commissions. Because there is an attractive bonus available in the first thirty days (more on that later), new distributors might feel more tempted to invest their business by choosing the executive package over some of the less expensive options.

Hempworx MLM Review

It’s not clear on their website or compensation plan, but reviews indicate that distributors pay full price for product, including the product they receive in their startup package, which means if you select the $69 startup package, you’ll receive a $69 product to use (and likewise for the more expensive packages).

My Daily Choice Compensation Plan

The compensation plan is complicated and outlined in detail here. Distributors, coined affiliates by My Daily Choice, earn money through a combination of commissions, bonuses, expense accounts, and car allowances.

Jump Start bonus

Affiliates have the opportunity to earn a jump start bonus totalling 85% of their business volume in their first 30 days as a distributor. However, in order to earn 85%, ongoing recruitment of distributors, who are recruiting new distributors themselves, must occur continuously in the first thirty days as pictured below from the Hempworx compensation plan.

Ongoing commissions

After the jump start bonus, distributors earn through downline commission. A number of requirements must be met in order to qualify for these commissions.

First, the distributor must purchase $40 in personal products each month.
Then, in order to order downline commission, both of the distributor’s legs (labeled left leg and right leg) must earn at least 300 in business volume for the month and the commission is calculated on just one leg (on the lower-earning leg if the legs don’t match) and ranges from 8% – 20%.

incentives

Rank depends on a number of factors; to achieve a higher rank (and there are many ranks when distrubting HempWorx – 12 in total), a single leg can never account for more than 50% of your total enrollment tree volume.

Commission is calculated on BV, or business volume. Calculation of business volume is less transparent in the compensation plan, but it’s clear that only a portion of the startup package a distributor purchases is calculated toward their qualifying BV for the month, which may be the case with other personal purchases (which are required monthly).

Other opportunities to earn

Several additional, somewhat complex bonuses are outlined in the compensation plan. For example, affiliates can earn a monthly car allowance for their “dream car,” but in order to earn the bonus, they must maintain sales of $5k -$50k for four consecutive months and won’t receive the car allowance until the fourth month.

HempWorx stresses the importance of investing in their businesses by hosting events, traveling, purchasing inventory, advertising, expanding their education on the product, and more, and offers expense accounts those who qualify. The highest earners can earn money in an expense account to be used for traveling, hosting events, and other measures designed to grow their business; however, this is reserved for those who earn $100k – more than $500k per month for at least four consecutive months, and again, the bonus starts on the fourth qualifying month.

The company encourages new distributor to keep it simple by providing these instructions: “Set up an autoship. If you’re out of product, you’re out of business!” and “Get started with the business and focus on finding their first 4.” Focus is on enrollment of new customers even before promoting and selling the products, which leans toward an illegal MLM – but because there’s a product to sell HempWorx is technically legal.

Is Hempworx Legit? Average Annual Compensation & Reviews

The Hempworx Income Disclosure Statement includes all Hempworx affiliates that hadn’t quit when the numbers were calculated and demonstrates that of the nearly 121,000 Hempworx affiliates, only 25 reached the three highest ranks and less than 1% earn a full time income ($35,000 or more per year) – and these are gross figures, not taking the affiliate’s expenses into consideration.

The same document indicates that nearly 25,000 affiliates earned nothing at all, again not taking expenses into consideration, which means these affiliates likely lost money on the business venture. Unfortunately, those who contemplate joining HempWorx/My Daily Choice as an affiliate who reference the compensation plan as a guide never see these figures, and even those who referene the income disclosure statement may not realize that the numbers published fail to take distributor expenses into account.

The same document indicates that the median annual income for all affiliates is $0 and the average annual income for all affiliates is $580.08, powerful information for those considering selling HempWorx products as their sole or primary source of income.

Finally, the income disclosure statement also reveals that 70.3% of affiliates do not continue with My Daily Choice/Hempworx after their first year, which might be an indication of dissatisfaction with the company, difficulty selling the products, or inability to make money. Those who quit before numbers were calculated are not included in the income disclosure statement, which means the average annual earnings are likely even lower than reported – and the reported numbers were quite low.

Pros and Cons of HempWorx MLM

Like all opportunities, there are some advantages and disadvantages to selling HempWorx based on reviews.

Advantages

startup costs start low with HempWorx, making it more affordable than many other MLMs and more feasible for those who don’t have thousands of dollars to invest in a business opportunity
CBD products are on an upward trend nationwide, making now a good time to be in the CBD industry
those who make money with HempWorx recruit many new affiliats, and those affiliates recruit many more affiliates, which means those who are successful recruiters can earn some money with HempWorx

Disadvantages

while it’s possible to make money as a HempWorx/My Daily Choice distrubutor, the data shows that very, very few distributors make money, which means it is very unlikely that new recruits will make money
complicated payout system. distributors must meet a number of requirements to qualify for commissions and other bonus opportunities, all of which are complex and not comparable to a straightforward commission model
distributors must pay to play; they must make personal purchases ranging from $40-90 per month in order to earn commissions and bonuses
strong emphasis on recruitment. Distributors must be constantly building their downline, and with so few distributors making an adequate income under the HempWorx MLM, it may put strain on their relationships with the friends and family members they recruit to sell HempWorx.
My Daily Choice isn’t a very reputable company per reviews from those who have joined MLMs headed by the company.
overpriced products. MLMs must charge more for their products than major retailers like Amazon and Walmart because they have commissions to pay on every sale (and in some cases, several levels of commission to pay in the upline), which can make the product more difficult to sell if consumers can find the same or similar products elsewhere for less.
those who sell but don’t recruit will never reach any rank promotion are least likely to earn with HempWorx.

frustation

Distributor Reviews of HempWorx MLM

As with all MLMs, finding an honest review is challenging as active distributors rely on positive reviews to earn money. This means that most reviews fall into one of three categories:

brand new distributors who believe in the company and expect to earn a great income because they buy the products anyway and believe in the business model
seasoned distributors (the bulk of which have been with HempWorx for less than year) who speak highly of the company and don’t share their income but reference “at least a dozen” people they know who make $40k a month
ex-distributors who weren’t happy with the business plan and were unable to earn and told by other distributors or the company that if they weren’t earning, they weren’t selling adequately
Is HempWorx with My Daily Choice a scam?

While HempWorx is not an illegal MLM and it is possible to make money, the statistics show that very few distributors make enough money to replace full-time employment, especially after their expenses are considered (and the company clearly and consistently communicates the importance of investing in your business as a distributor). However, HempWorx might provide an opportunity to earn a little extra cash as a side gig for distributors who put in ample effort and manage their expenses.

Key takeaway: If you’re looking for a full-time income with low expenses, HempWorx can be likened to purchasing a state lottery ticket (you might win $5, but your chance of earning a full-time income are substantially less than 1%). However, if you use HempWorx products, would like a discount, and have a few friends who’d like to purchase, it might be a good way to capture some savings and earn a little extra cash on the side.

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