cbd pyramid scheme


The spotlight has been on CBD oil for quite some time now, and it’s popularity among many, young and old, is increasing.

The dietary supplement industry is expected to hit over 210 billion by 2026, and CBD oil is fast carving itself a giant chunk out of that market. Despite legal issues everywhere surrounding CBD, it seems like everyone and their dog want a piece of it.

Enter the multi-level marketing(MLM) CBD companies.

What Is MLM?

For those of you who are unfamiliar with the term, let’s break it down.

MLM stands for multi-level marketing. It may also be referred to as pyramid selling, network marketing, or referral marketing.

In these types of companies you have multiple levels of people who promote and sell a product that is being offered. There are the people at the top, the people underneath them, and the people underneath those people, and so on.

You generally have to pay to sign up for the “opportunity” to promote this product, and you earn money by sharing the product to other people using a referral link.

In the majority of these, you also have to pay a certain amount every month in order to earn bonuses, or recruit so many people before you can even begin to earn. They are incentivized in a way as to pressure people to continually attempt to recruit more people into the business.

When these people purchase something through your link, you earn a percentage of the amount sold, called a commission. If anyone decides to sign up under you and they sell through their link, they make a commission, and you also make a smaller commission. And on and on the wheel rolls. Sounds great right?

Wrong. And for more than a few reasons.

According to a report done on 350 MLM companies, 99% of people who enter in to these companies will lose money, not earn. That’s a ridiculous number to even consider.

So why do so many people continue to sign up? Well, the claims that you are going to make huge amounts of money are one. The ever popular idea that you are going into business for yourself is another.

Everyone wants the chance to be able to do something that will enable them to finally quit their full time jobs and work from home, and what better way to do so than spamming your friends and family and harassing them to buy from you?

In the age that we live in now, it’s not just your friends and family that are the targets anymore. With the number of people using social media and other online sources as the base for their “business”, these companies are popping up everywhere, and can be found on almost every social media platform, in every group, no matter how big or small.

Unfortunately for many, these reps will say anything and everything under the sun to convince you that their product is the best out there, because the only way they make a profit is if you buy. Of course, they are going to say whatever it takes. It’s a vicious cycle that is hard to break, and for some, morals go way down when money is at stake.

The mindset of MLM companies has been called cult-like, and the culture within them is strong. I’ve seen some absolutely absurd claims now regarding CBD oil, which I will go into depth on a little further down.

These companies target people who are struggling to make ends meet by promising something only a very small few ever get a taste of. Statements like “Join the hottest and fastest growing market out there today”, “Be your own boss”, “Tired of living paycheck to paycheck, sign up today”, “Unlimited earning potential”, etc, are just some of the common phrases you’ll see across the board on these sites.

Long Live The Pyramid Scheme…

If you’ve been around awhile, you’ll likely have heard the term “pyramid scheme” once or twice in your life.

The pyramid scheme worked by sucking you in and making you pay to join a program, whatever that might have been. You then earn money by recruiting others into paying for the program, which often has no actual product at the center of the business. All of the commissions you earn in a pyramid scheme come from recruiting new people, who then go on to sign others up.

You generally have to pay to stay active in the program, or stay at a certain level, which is how people end up losing so much money from them. Only the few at the top levels of the pyramid are the ones making any money off of it.

The money keeps being funneled up to the top, with more and more people joining the bottom of the pyramid, each level larger than the one before it.

Statistics and logic have proved time and time again that these types of businesses will ultimately collapse on themselves. After all, the world is only so big, and the number of people who are able to join is finite.

Here’s a graphic to show just how unsustainable a pyramid scheme really is:

The pyramid scheme as we used to know it has changed a bit, and is now illegal. In order for these types of businesses to run legally now, there has to be an actual product for sale. In some places in the world, this type of business is illegal no matter if they are selling a legit product or not.

It’s also not technically referred to a pyramid scheme anymore, rather we call it MLM. Regardless of the name, and the fact that there is now a product to be had from it, the fundamentals remain the same.

When it comes to MLM and CBD companies, it is particularly dangerous…

As CBD oil has gained popularity, the number of claims about it has grown far beyond what anyone has expected. A quick Google search on the subject brings up articles claiming that it can quite literally cure every ailment known to man.

It is, in fact, a fairly new development in the medical industry, and the alarming lack of actual research on the subject needs to be addressed. All around the globe right now there are studies being conducted, which is awesome, but what is happening right now is these MLM CBD companies are promoting misinformation that doesn’t have a lot of actual research to back it up.

Some claims that I have heard from CBD reps, and these are just the ones I’ve come across personally.

  • CBD will cure every medical issue you have – So not true. CBD has a lot of different uses because of the way it works within our Endocannabinoid System. CBD and THC bind to receptors that are located all throughout us, and is why it works on several issues, but by no means does this make it a cure all for everything.
  • CBD won’t cause a fail on a drug test – So legally in a lot of places around the world, CBD can only contain 0.3% THC. This is an extremely low amount, and won’t cause a “high”, but it could very well cause you to lose your job. THC builds up in your system in your fat stores, and Full Spectrum oil CAN cause a fail on a test, don’t listen to anyone who tries to tell you differently. If you are tested, you need to go with Broad Spectrum or CBD Isolate, both of which contain zero THC.
  • Human grade CBD can be used on your pets – WRONG! There are a lot of products out there made for humans that can be seriously harmful to your pets, and many of the essential oils in them can be highly toxic for them. If you choose to go this route for your furry friends, please do your research beforehand, and ONLY purchase pet safe products with extensive 3rd party testing done on them.
  • The company has the absolute best product on the market, and all others are inferior – There is no one best CBD oil, and whenever I see this claim from CBD reps it really irks me. There are a lot of really awesome companies out there right now, with more being established every day. Over the past year I’ve had the opportunity to try out many different products, and I’m still hard-pressed to pick a favorite, because there have been so many effective ones. When they tell you their CBD is the only one to consider, back away!
  • Hemp oil is better than CBD – One persistent rep is going around trying to tell everyone that hemp oil is better than CBD oil. Here is the difference between the two, and despite multiple attempts to try to educate, they are sticking with it.
  • Breast milk contains more THC then hemp – Ugh. So this is from the same rep that is trying to claim hemp oil is better than CBD oil. I shouldn’t have to explain this one, but the ONLY way that THC is getting into breast milk is if the mother consumes it. The industrial hemp plant, which most of the world’s CBD comes from, does contain THC, just in very low amounts.
  • CBD oil has no side effects – Yes, it does. Just like any other substance you put in your body, there are a few side effects to watch out for. Check out this post for more information on the subject.
  • CBD oil won’t interact with any medications you are on – This one especially people need to pay attention to. CBD works in much the same way as grapefruit does when it comes to your medications, and can have serious consequences if taken with certain ones. is a great place to go to check for any interactions, and ALWAYS check with a doctor before starting CBD if you are on any medications currently.
  • Full Spectrum is the only way to go – While the “Entourage Effect” is real, and shows that whole plant extracts can be more effective, Full Spectrum contains THC, and can not be taken by everyone, especially those who are drug tested.
  • CBD must contain only 2-3 ingredients, anything else is “junk” or “fillers” – This claim is everywhere. And it absolutely false. There are different products out there that contain ingredients specifically targeting energy levels, some that are designed for better sleep, some with added ingredients to help with pain, etc. There are also claims that hemp seed oil is the ONLY carrier oil to be used in order for it to be effective, but there are plenty of other suitable carrier oils used for CBD, including MCT or coconut oil. As long as the company is providing up to date, accurate 3rd party testing on their products, it is going to contain CBD, and might just have some extra added benefits in there as well.

These are just a few. There are a lot of other outlandish claims that I’ve seen floating around, but we would be here all day if I tried to list them all.

The people who join these companies rarely take the time to do their own research, and instead choose to share information that they have been spoon-fed by their up lines. I see it time and time again from the reps, all sharing the same bogus information.

Take the time to do your research on anything that you are going to be putting into your body, especially with something that contains a substance that is still highly illegal in many parts of the world. Here is a list of guidelines that you absolutely need to be following when you are looking to buy CBD oil, and having accurate 3rd party testing is a MUST!

So how do I know if a CBD company is an MLM or not?

MLM CBD companies can be hard to spot sometimes. Some dead giveaways include:

  • Any phrasing along the lines of – Side gig, opportunity, join our team, financial freedom, work for yourself/be your own boss, get paid to promote, etc. will likely be an MLM.
  • PM me for more info – Anyone who asks you to PM(private message) them in a group about a product and won’t directly share it with the rest of the group is likely part of an MLM company and trying to sell to you. This is rampant in almost every Facebook group that I am a part of, and is becoming more and more frustrating, especially when it comes to CBD products.
  • Referral required – You shouldn’t need a referral to sign up for any company in order to purchase their products. This information and access should be readily available on the site.

You can also Google the company name and MLM, the information will pop up right away on whether or not it is one.

Here is a list of SOME of the MLM CBD companies operating right now:

  • Hempworx
  • Kannaway
  • Hemp Herbals
  • Dose of Nature
  • Bocannaco
  • Zilis
  • Prime My Body
  • Isodiol
  • First Fitness Nutrition
  • CTFO
  • Nutritional High
  • Biocare
  • Hemplavate
  • Young Living

All of the products in companies like these are generally overpriced, and can be found elsewhere for much, much cheaper. They are priced this way to reflect affiliate payouts.

Many of the legit CBD companies who don’t follow the MLM business model regularly run promotions and deals that can save you some serious cash, and there are a number who offer assistance programs for veterans, first responders, people on long term disability, and low income households. These discounts can go up to 60% off, so make sure to shop around and see if you are eligible!

There are all sorts of different price points to CBD oil, and there are products available for every budget.

Ready to check out some awesome non-MLM CBD companies?

All of the companies on our recommended list are 100% MLM free, organic, 3rd party tested, and come backed by thousands upon thousands of positive reviews. They have been chosen for their quality, their commitment to the community and providing only the safest products, they have the interest of the consumer at heart, and they don’t mess around when it comes to CBD.

MLM and CBD. Two things that don’t go together, no matter what the reps tell you.

How to stop the CBD industry becoming a pyramid scheme

Multi Level Marketing (MLM), also known as pyramid selling, is a CBD marketing strategy for the sale of products in which a company uses a non-salaried workforce to generate its revenue by offering a commission-based compensation system for the work selling its products. To ‘work’ for an MLM company, the ‘worker’ generally must first purchase the products that they intend to sell from the company or a seller who already works for the company. So, generally by joining an MLM, you instantly end up out of pocket.

Now laden with products, this person must then convince other people to purchase products directly from themselves in a retail scenario or convince others to also go on to sell the products for the company and become part of their ‘downline’. The recruiters become incentivised by making commission off of the new recruits inventory. These new recruits are then incentivised by recruiting more people, and on the cycle continues. Basic economics would say that for this business model to work, the products have to eventually be sold at an over-inflated price for people who are far enough ‘down the line’ to make any money.

MLM’s are a predatory business model

The majority of people who enter this level of business very rarely manage to break even, let alone making a living wage. Estimates have it that only 10% of people involved within an MLM make 90% of the money and most of those who enter generally describe themselves as being ‘duped’ or ‘fooled’ into being part of the business and advise that joining the MLM has ruined their life. Some UK wholesale cbd isolate suppliers are legitimate with great products other are not.

What’s worse is that the products that these companies sell generally target stay-at-home mums or unemployed people as a way to make extra revenue by ‘being their own boss’. These people feel desperate to make their money back and end up bombarding family and friends to purchase the product, ruining relationships in the process. Some people even stick at working for the MLM for several stressful years due to companies holding conventions showcasing people who have made millions from selling the product. Some of these claims of people making millions have since been proven to have been falsified.

MLM companies could prove bad for CBD

Unfortunately, the recent boom of the world CBD industry showing promising growth hasn’t gone unnoticed by those companies who wish to make money through shady MLM business practices. Consequently, this could have very serious ramifications by having the potential to ruin the good name and nature of the CBD industry by association alone.

Products sold by MLMs are generally regarded as being of sub-par quality to counterparts sold through standard retails outlets. MLMs have already entered the UK CBD whitelabel market and in some cases the CBD products have little-to-no CBD in them. The knock-on effect this could have is for people to just believe that CBD is just another MLM snake oil sold with no scientific basis, even though there are a wealth of clinical studies backed CBD scientifically.

Putting a stop to CBD MLMs

There are very simple steps that can be taken by consumers and those within the CBD industry to ensure that these false products don’t increase in popularity.

  1. Do your research – The onus is on the consumer to purchase CBD oil products from legitimate UK companies. Research into what the product you are looking at should contain and effects it should cause should be researched. If unsure, any legitimate company should be able to answer your questions. So, ask the vendors any questions you may have. If they are worth their salt they will provide you with comprehensive information.
  2. Only buy lab-tested products chemical free – Any company selling CBD products should be able to provide full lab test results for their products. These should be conducted by a legitimate third party company and will provide you with cannabinoid content, heavy metal content as well as any residual solvents or unwanted particles and compounds. These are provided by legitimate companies as a way to provide you with all the information you need to trust the products.
  3. Don’t buy from untrusted sources – CBD sold by the local gas station or by a family friend on the internet doesn’t quite cut it as a legitimate source of CBD. It doesn’t legitimise a CBD product just because it is sold in a popular health food store or supermarket either – as testing on CBD content in products showed. Some of the safest sources of CBD products seem to be from designated CBD vendors online, because they ensure they fully understand their product and feel the need to legitimise their product with full lab tests in order to ensure the survival of their company.
  4. Avoid ‘hemp oil’ from Amazon – Thinking that Amazon would be a safe source for purchasing CBD would be very incorrect. Notice how none of the oils sold on the website reference CBD in any way, it’s because they don’t contain any as per Amazon’s policy. The vendors on Amazon are selling regular hemp oil at an overinflated price.

Hempworx are the perfect example of a company to avoid. They are an MLM who started out called My Daily Choice before opting for the Hempworx name following the CBD boom. The company has been cited making over 100 illegitimate health claims as well as incredibly overinflating the income made by people invested in the brand. Claims of average earnings of $5,000 a month when in fact most earned nowhere near this. Hempworx stresses to people that they will make money from the product if they recruit others to sell it, called “the power of recruiting”. The emphasis is taken away from selling the actual product and this is the biggest indication of a pyramid scheme.

Other brands to look out for are Kannaway, Hemp Herbals, Dose of Nature and First Fitness Nutrition. All of them are MLM schemes which will have you recruiting others rather than selling a product. poko cbd known as the best skincare cbd beauty product is one new product we recommend.

Final Thoughts

Although it’s unfortunate that predatory industries such as MLMs and pyramid schemes exist, with careful research into the source of your products, you need not be stung by them. Hopefully, this will provide the basis for taking that little bit of extra care into research before purchasing any new products, regardless of the source.

Hempworx, an MLM to avoid, have been cited making over 100 illegitimate health claims and overinflating the income made by people invested in the brand. Read on.