But this is exactly what MLMs do. In fact, their entire business model encourages oversaturation of a market. Sales reps are incentivized to recruit as many sales reps as they can from their personal networks. That means you can end up with dozens or even hundreds of people in the same city all competing with each other to sell the same product. I’ve seen church congregations with half a dozen women all selling for the same MLM. Do you think all of them were doing well selling essential oils to other members in the congregation? Nope. Because supply and demand.
But here’s the thing. By recruiting close family members or friends into your downline, you contaminate those relationships with commercialization. You take all that good will you’ve developed with someone over months and years and cash it all in on getting them to be a commission for you. From that moment on, the person won’t be able to tell if your gestures towards intimacy are genuine, or an attempt to get you to buy or distribute product. Perhaps even more sadly, you may lose the ability to tell the difference yourself.
Using CBD in defined doses for medicinal purposes is one thing, but putting it in food and beverages is something entirely different. Someone may wind up getting CBD from multiple products, and so their daily dose could vary significantly. Taking a standardized dose of CBD oil daily as a recognized medicinal is a very different thing from taking uncontrolled doses of CBD isolate daily infused artificially into food and beverage products, and the long term risk may be very different — no one really knows for sure.
By theory, the MLM mode of operation is simply more cost efficient and easier to run. However the recruitment of sales agents revolve largely around the idea of hitting the jackpot of financial freedom. Simple math will tell you that most people will obviously not make it big through MLM. A certain individual even goes as far to say that 99% of people don’t ever make a profit during his interview with CNBC.
In 1959, two employees of Nutrilite, Rick de Vos and Jan van Andel, founded their own company: Amway. Amway was created using the MLM organizational structure and paved the way for MLM companies to be established in other countries like Canada, the United Kingdom, Australia, Germany, and France. Amway allowed for companies like Panasonic, Palmolive, and MasterCard to include network marketing in their omnichannel marketing strategies. Amway's success has even led them sponsor an NBA arena, the Orlando Magic's Amway Center (and the older Amway Arena), since 1989.
In other words, many popular claims remain unfounded – and overlook the fact that there's a difference between CBD that's studied in labs for particular conditions and CBD products that are sold to consumers for general well-being. "What happens is people say, 'Look, CBD is harmless and it doesn't get me intoxicated, so I'm going to take it for what ails me," says Dr. Jordan Tishler, a Harvard physician and CEO of InhaleMD, a Boston-area practice specializing in cannabis therapeutics. "Then they're going to get some perceived benefit because that's the way the placebo effect works, and then they go and trumpet this."
The term “MLM company” isn’t exactly accurate because the company is not necessarily defined by the fact that it uses a multi-level marketing structure. Instead, a good MLM will be a product-centric company, meaning that it will be, for example, a cosmetics company that uses an MLM structure. Test the product of the company you are interested in; the product must be something that you would willingly advertise even if you weren't working for the company.
Unlike marijuana, hemp is legal in all 50 states according to state laws. The federal government, on the other hand, still recognizes the Controlled Substance Act of 1970, which defines agriculture, production, sale, and use of any type of cannabis as illegal — but it’s also not bothering people who purchase and use hemp CBD products. What’s more, the federal legal status of hemp will likely soon be changing.
The benefits of CBD and other non-THC cannabinoids don’t stop there. Terpenes and the wide spectrum of other chemical compounds found in hemp flower-bud extracts provide potent anti-inflammatory and antioxidant properties. And like most other herbs, hemp flower-bud extracts have been associated with antimicrobial properties, though cannabis doesn’t appear to be as strong an antimicrobial as many other herbs.
When you look at our hypothetical MLM, it’s hard not to notice that it pretty much works like a pyramid scheme: you make money by recruiting people below you. Instead of the people below you giving you and the people above you money in order to be part of the MLM — as in a traditional pyramid scheme — you (and the people above you) get a commission off the product purchases the recruits below you are required to make from the MLM. Distributors make little to no money selling product to people outside the company.
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Many MLM companies do generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, the profits of the MLM company are accrued at the detriment to the majority of the company's constituent workforce (the MLM participants). Only some of said profit is then significantly shared with individual participants at the top of the MLM distributorship pyramid. The earnings of those top few participants is emphasized and championed at company seminars and conferences, thus creating an illusion of how one can potentially become financially successful if they become a participants in the MLM. This is then advertised by the MLM company to recruit more distributors to participate in the MLM with a false anticipation of earning margins which are in reality merely theoretical and statistically improbable.
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Then there’s the issue of vomiting and nausea after chemotherapy. Most people that underwent chemo know that there is proper medication for these side effects. However, these meds often don’t achieve the desired effect. It’s no wonder that people are looking for alternatives like CBD. During one study, 16 participants that had chemo treatment used a CBD-THC combination. This combo was administered through a spray. Nearly all participants agreed that this helped lower vomiting and nausea.
LuLaRoe’s messaging is filled with positive language: “I believe in you” is the company’s unofficial tag line, and body-positive imagery floods its website to showcase its large selection of flattering plus-size outfits. “It’s hard to find plus-size clothing that actually looks good—that makes you feel like you look good,” Sophie says. “That’s why there’s such a customer base for LuLaRoe.”
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