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.”
The extract known as CBD oil sold in the U.S. falls into one of two categories. Crystalline isolate exclusively contains CBD, as other cannabinoids have been removed; full spectrum oil, on the other hand, retains THC and other cannabinoids, and is only sold in states where marijuana use has been legalized. CBD oil can be consumed several different ways, including ingested capsules and food products, vaporizing, tinctures, and topical creams. The soporific effects of CBD oil are linked to its concentration; low-concentration oils will produce minimal effects, while high-concentration oils will produce strong effects.
The body produces its own chemicals called endocannabinoids that modulate biological processes throughout the entire body. As such, these endocannabinoids have wide-ranging effects on everything from fertility to pain. Phytocannabinoids are compounds found in nature that influence and support the ECS. They are the compounds responsible for the health benefits of Thorne’s Hemp Oil +.
Andrew Sherman has reported (in his book Franchising & Licensing) that six states explicitly regulate MLM: Georgia, Maryland, New York, New Mexico, Wyoming, and Louisiana. So does Puerto Rico. Laws regulating MLM typically 1) require that MLM companies explicitly permit their agents to cancel their agreements and to agree to repurchase inventories at not less than 90 percent of the original transfer price; 2) prohibit inducements under which the agent is told that he or she will earn a specific amount of money; 3) prohibit the purchase of a minimum inventory; and 4) prohibit operations under which agents are only paid for recruiting others. Many states without MLM regulation nevertheless have laws prohibiting pyramid schemes under which they attempt to police MLM companies that overstep the line.
What you want to watch out for are "fast track" programs or pressure to have inventory that requires additional investment. Due to this practice, the law now requires MLM companies to buy back inventory, but that doesn't mean you want to be saddled with debt before you start and truly understand the business. Having a few popular products on hand can be nice, but don't fill your garage with products unless you know for sure, based on your experience in the business, that you can sell them.
Company payout (in commissions & bonuses) per sale for the total of all upline participants equals or exceeds that for the person selling the product – resulting in inadequate incentive to retail and excessive incentive to recruit. Jim can make more money getting commissions off the product that distributors beneath him are required to buy from the company than he could from selling the shakes at retail to customers outside of the business.
The raw and heated cannabinoids in this product come from agricultural hemp. They are combined with hemp terpenes that are steam distilled. We have specially formulated this blend to combine a variety of different terpene-rich hemp extracts. This product contains equal amounts of both CBD (a decarboxylated form of cannabinoid) and CBD-A (the raw, or non-decarboxylated form of cannabinoid) — 125 mg of each, to be exact.
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.
Robert Fitzpatrick is the foremost expert in the analysis of MLM’s, both from an economic perspective and from a moral perspective and this slim work is a perfect distillation of his years of research in the industry. I spent a quarter of a century working at the corporate headquarters of a nearly 50 year old MLM and I can attest that Mr. Fitzpatrick’s take on the business model is spot on. MLM, direct sales, whatever you want to call it, it’s all a recruitment-based pyramid scheme where less than 1% even make a profit, let alone a living. And all the arguments that most people only sign up to do it part-time or to get discounts on products is in direct contradiction to how MLM’s market to prospective recruits. They promote a life-changing opportunity, a chance to win a car, buy a new dream house on an island somewhere, to build an organization of salespeople below you so that you can sit back and live off “passive income” while the people below you do all the work. I think that on some level, we all feel that there is something inherently wrong with MLM, this book puts words to those feelings. For anyone interested in being in a MLM, or who is already in one, ask them to send you an income disclosure showing what the typical salesperson earns in that business. If they stonewall your attempts to get the information, that is a dead giveaway and you need to get out. On the other hand, if they give you the info but ask you, “but you don’t want to just be average, do you? You want to do better than that, right?” be aware of this because you are dealing with someone who wants you to deny simple math. What they are asking you to do is to ignore the day-to-day reality that 99% of the industry fails and the only reason to ignore it is because they want to make sure that you give them your money in order to pad their commission check. Before you take part in any direct sales opportunity, look into Mr. Fitzpatrick work, this book and on his website. False Profits should be required reading for anyone interested in signing up in a MLM because it will arm you with the knowledge you need to be able to make an informed decision.
A fundamental reason that such networks fail is that they depend upon recruiting people to compete with you. If you own a shoe store, and you pitch every customer on opening their own shoe store instead of being your customer, very soon you're going to have a neighborhood full of shoe stores, with everybody trying to sell and nobody left to buy. It doesn't take an MBA to see that this is pretty much the polar opposite of a sound business strategy.