Many food and beverage companies are already taking advantage of the growing CBD trend and adding CBD to food and beverage products, though the practice is not approved by the FDA. They are mostly using purified CBD (CBD isolate) instead of CBD oil, because purified CBD has no significant taste and comes from poorer quality hemp, which is cheaper to produce. Whether it’s completely safe is totally unknown.
Still, many people like Brickey walk away with little or nothing after spending hundreds, if not thousands, of dollars working as network marketing distributors. Some let the overinflated earnings claims cloud their judgment. They invest what little cash they have, hoping to net a huge return—but hardly ever do. Others are simply fooled by illegal scams disguised to look like legitimate business opportunities and end up losing everything.
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And, if you do luck out and get a tincture truly containing CBD, you'll likely dish out $200 or so to take 10 to 40 milligrams daily. Since research participants take closer to 1,000 milligrams a day, it's hard to imagine a benefit without drinking the whole (expensive, calorie-dense) bottle, Tishler says. "Most people will adjust their doses based on what they're comfortable spending," Asquith says.
But many people can’t recruit enough folks and they end up spending a lot of their own money. As Laryea points out, “Recruits are often expected to purchase ‘starter kits’ or inventory to start selling products, which also earn the recruiters (and the recruiters’ recruiter) commission. Thus, multilevel marketing as a business strategy incentivizes participants to grow a sales network underneath them, also called a downline.”
One study found that placebos sometimes work even when the subject knows it’s a placebo. Another, using that same public speaking setup that CBD studies have used, found that anxiety treatments are particularly susceptible to the placebo effect, with 40 percent of placebo-treated patients showing a decrease in anxiety symptoms while tasked with speaking to a crowd.
But for most MLMs, the real money isn’t in selling wares: It’s in signing up consultants. Up until July 2017, LuLaRoe’s sellers who signed up new retailers got a 3-5% commission on the inventory their downline bought. But they only garnered that commission if they and everyone underneath them each bought 175 pieces a month, a rule that incentivized inventory buying.
For more information, John Oliver did a fantastic segment about the horrors of MLMs. The 2016 documentary, Betting on Zero, investigates the allegations that MLMs are nothing but legal pyramid schemes. This article also does a wonderful job of breaking down the reasons why MLMs are doomed to failure. I encourage anyone who is thinking about signing up for an MLM to watch these.
That brings up another difference between traditional franchises and MLMs: When you own a traditional franchise, you’re not pressured to recruit other people to become fellow franchisees. In fact, if you did that, it could ruin your chances at economic success because you’d be competing with multiple business owners for the same customers. Also, that would be an illegal franchise pyramid scheme.
Marketing programs emphasize courses in communication; marketing students will also practice and develop their communications and presentation skills in other classes. Communications courses teach students how to connect to audiences through a wide variety of media channels. You’ll also receive invaluable instructor feedback that will help you to further improve your skills and adapt your message.
Sarah Stern, a stay-at-home mom in southern Florida, signed up with LuLaRoe in March 2016 after receiving a glowing review from a friend. “She told me that they have a cult following, the clothes sell themselves, and it’s under 10,000 people now, so you want to get in while it’s on the ground floor,” she says. Stern joined her friend’s LuLaRoe Facebook page and saw women fighting in the comments to buy beautiful leggings and dresses. She showed her husband, a VP of sales for a consumer-products company, the profit margins, and he told her to go for it.
At the corporate level, multi-level marketing communicates a clear picture of the company and its products to consultants—and by extension, to its customers and potential future consultants. The goal of MLM is not only to excite consumers about a product, but to attract a percentage of people to the possibility of selling that products. Therefore, the art of persuasion is fundamental to MLM—an art honed in marketing programs across the country.
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."
Keep in mind, too, that CBD product companies use different CBD sources, extraction methods and production techniques – and not all resulting products are created equal. You'll have to do your own research to determine which companies you're willing to trust, Asquith says. Plus, how the products are packaged and consumed – be they in oils, creams or capsules – affect how they're absorbed in the body. Edibles, for example, are well-absorbed, while oils taken under the tongue are "baloney," Tishler says. And of course, salespeople at herb shops don't have the same mission, knowledge, training or oversight as physicians and pharmacists. "We have spent the last 100 years or so developing the pharmaceutical system because it works," Tishler says.
These dosages are pretty standard in the consumer CBD industry and, per the research available, nowhere near the doses proven to be effective in clinical trials. NuLeaf Naturals, a prominent online CBD seller, sells 240 mg of oil for $38.50. It does not specify dosage but measures its CBD concentration in single drops; there are 100 drops per bottle, each containing 2.4 mg. You would have to take the entire bottle, according to Blessing, to get close to the absolute minimum dose that studies show might be effective for reducing anxiety. A $3 squirt of CBD oil on your ice cream or coffee? Probably right around 10 mg. You’d need 30 times that amount to get to the levels at which researchers have found stress-relieving results.
Lorene Hochstetler, from Ohio, recommends keeping your current job while slowly making the transition into MLM. She’s been able to replace her full-time income but explains, “It didn’t happen overnight, and I still work every day. I am very disciplined with my business and wake up every day knowing what I have to do in order to succeed at this. You have to treat it like a business and be willing to follow advice from others who have made it.”
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