Is Kannaway a Scam?

Is Kannaway a Scam?

Kannaway claims to offer the world’s leading hemp CBD oil products and a business opportunity that can help you grow your wealth. A closer look reveals a different story.

Company Name: Kannaway
Products: Hemp Oil supplements and beauty products, plus an MLM Business Opportunity
Owner: Medical Marijuana, Inc, CEO Blake Schroeder
Opinion: Not Recommended.

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Is Kannaway a Scam?

Kannaway is a subsidiary of Medical Marijuana, Inc. based in an office park in San Diego, CA. The address for Kannaway links to the office of an accounting firm in San Diego. Kannaway does not have an office of its own.

Is Kannaway a Scam?Like other companies in the CBD oil market, Kannaway is exploiting a common misunderstanding about cannabis and CBD oil. Early research indicates that cannabis, not CBD oil, may have some healing benefits.

However, cannabis has over 400 compounds in it. CBD oil is just one of those 400 compounds.  Very little research has been done to determine which compounds are beneficial. There is no conclusive evidence that CBD oil is good for anything other than treating a rare form of epilepsy in children.

Marketers like Kannaway want us to believe that the CBD oil has the same healing qualities of cannabis. Science does not support this assumption.

There is no reason to suggest that CBD oil offers any health benefit at all for most people beyond simple nutrition.

There is nothing magical about CBD oil. As far as we know, it’s nothing more than vegetable oil made from the stems of hemp.

A Product-Based Pyramid.

On the surface, Kannaway appears to be a multi-level marketing company that sells expensive Hemp CBD oil products. However, in my opinion, Kannaway is a product-based pyramid scheme. In a moment, I’ll show you why I came to this conclusion.

Read Why Affiliate Marketing is Better Than MLM

Snake Oil.

First, I want to show you that there is very little research into CBD oil. The common belief that it might be helpful is unfounded. CBD is not magic. It’s not a cure-all. At best, hemp oil is a source of omega 3 fats and antioxidants. Good things for sure, but not magic.

Also, there is no way of knowing how much CBD oil is in the Kannaway products, if any. Many of the Kannaway products are oil blends.

Bottom line, you can’t know if you are getting what you paid for or if it will do anything for you. The entire CBD oil industry is unregulated.

Expensive Products.

Is Kannaway a Scam?The Kannaway products are insanely expensive, ranging from about $50 to over $400.

Gold Premium Oil Oral Applicator, which is said to be pure CBD oil costs $440.99 for ½ ounce!

Before you buy Kannaway’s over-priced hemp oil products, you owe it to your self to first learn the market value of hemp oil. What is it worth, per ounce?

Amazon sells 24 ounces of Nutriva pure Organic Cold-Pressed Unrefined Hemp Oil, that is certified by the Hemp Industries Association and a dozen other regulatory organizations, for $12.40. That’s about 52 cents an ounce. If you want to try hemp oil, that would be the place to start.

The market value of high-quality, organic hemp oil is 52 cents an ounce. Kannaway is charging $880 an ounce!

A Closer Look.

For sake of comparison, I’ll focus on two products. Kannaway Premium Full Spectrum Liquid promoted as a blend of CBD oil and coconut oil. It sells for $175.99 for 4 ounces.

The other product I’ll focus on is the Kannaway Premium Humulus Oil made from hops, not hemp. It sells for $187.99 for 4 ounces.

Outrageously expensive products is a big clue that Kannaway is a product-based pyramid scheme.

No Independent Lab Tests.

On the Kannaway website, there is a page about “Third Party Lab Tests.” However, nowhere do they mention which lab did the testing.

Real lab tests are certified by an independent lab, often by NSF and the test results are marked with a seal to prove the results are genuine. Also, anyone can contact the lab to check that the results are indeed genuine. Nothing like that appears on the Kannaway website.

What is the benefit of CBD Oil?

You won’t find a specific benefit of CBD oil mentioned anywhere on the Kannaway website. While the website does mention that Kannaway is “science-based,” there is very little science to substantiate the claim that CBD is good for anything.

According to WebMD, there is only one approved use for CBD oil and that is for a very specific, prescription formulation of the oil designed to treat a rare form of epilepsy in children. (Source)

Some of the Kannaway products claim to promote homeostasis. Homeostasis means all the systems in the body are balanced. You don’t need CBD oil for that. Food and water will do that just fine.

Kannaway Premium Humulus Oil.

Kannaway Hemp Oil made from hops
It’s Just Hops!

Supposedly, through a proprietary method, Kannaway was able to extract CBD from hops. This method ensures a CBD oil that does not contain THC, that fun-loving compound that shows up in drug tests.

Kannaway markets Premium Humulus Oil to people who want the “benefits” of CBD oil but can’t risk failing a drug screening test. We still don’t know what the “benefits” of CBD oil are, but we do know that hops does not contain CBD, not even a little bit.

Dr. Ethan Russo, formerly the president of the International Cannabinoid Research Society and currently a senior medical advisor for GW Pharmaceuticals, said hops does not contain CBD. (Source)

Also, Jonathan Page, adjunct professor at University of British Columbia’s Botany Dept said there has been no reported case of CBD being isolated from the hop plant in scientific literature. (Source)

When you combine the statement of two notable scientists with the lack of a certified lab test about the contents of the Kannaway products, you must wonder if Kannaway is selling snake oil.

Understanding a Product-Based Pyramid Scheme.

To understand a product-based pyramid scheme it’s important to understand a pure pyramid scheme. A pure pyramid scheme promotes only a so-called business opportunity, a chance to make money. There are no products.

Most countries outlaw pyramid schemes for a reason. They create nothing of value and they destroy people’s finances.

How a Pure Pyramid Scheme Works.

Imagine a friend or a family member tells you about a great business opportunity you can join for a $100 up front and $100 a month.

What’s the opportunity? It’s the chance to charge people $100 to join a business and $100 a month to stay in the business. When you join, you can then charge people $100 to join and $100 a month to stay.

Each time your recruit a new person into the business, you keep some of the cash they pay and pass the rest up the organization to the top.

A pure pyramid scheme is like a huge vacuum cleaner sucking the money out of the pockets of the people at the bottom and sending it up the organization to the few at the top.

Eventually, a pure pyramid will collapse when there is nobody left to recruit. By then, the people at the top have run off with the money.

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The Product-Based Pyramid Scheme.

It won’t surprise you to discover the difference between a pyramid scheme and a product-based pyramid scheme is a product, a very expensive product.

To make a pure pyramid scheme look legal, the schemers add a very expensive product. For example, charging $100 for magical oil that costs pennies.

While the pure pyramid has no product and takes people’s money to participate in a business opportunity, a product-based pyramid scheme offers a cheap product for a lot of money.

There is very little difference between making people pay $100 for a dubious business opportunity or paying $100 for a dubious business opportunity and magical oil that costs pennies.

The result is the same for both the pure pyramid and the product-based pyramid scheme, vast sums of money flow from the bottom to the top.

A Dubious Business Opportunity.

The Kannaway business opportunity is part of the scheme. It’s wrong on so many levels.

Industry-wide, very few people succeed with Multi-Level Marketing.

Jon M. Taylor, MBA, Ph.D., writing for the Consumer Awareness Institute and who’s research is posted on the Federal Trade Commission’s website, states that less than 1% of people who try MLM make money. According to Taylor’s research 99% lose money.

Kannaway Brand Ambassadors.

Kannaway refers to their independent distributors as Brand Ambassadors. Brand Ambassadors are encouraged to build their own business as an entrepreneur and to build wealth as they help others build health and wealth by promoting Kannaway products.

That’s a nice sales pitch, however, as a Brand Ambassador, you won’t be building a business and you won’t be an entrepreneur.

You’ll a contracted, commission sales rep building the Kannaway sales force if you build anything at all.

Reality Check.

In reality, what will probably happen if you join Kannaway as a Brand Ambassador, is you will buy a ton of expensive Kannaway products and then quit.

You aren’t really in business when you join Kannaway as a Brand Ambassador, you’re a customer.

The whole business opportunity pitch was to convince you that you could make a lot of money with Kannaway. Otherwise, you probably would not pay $880 an ounce for oil you can get on Amazon for 50 cents an ounce.

You’ll Only Lose Money.

I respect your desire to improve your finances and perhaps one day be wealthy, or at least financially secure. That’s an honorable goal and one I feel is achievable for most people.

However, it is my heartfelt opinion that Kannaway will only cause you to lose money and may cause you to go into debt.

The MLM industry chews people up in massive numbers and spits them out. Don’t be one of them. To learn more about MLMs, read The Heartbreak of MLM and Is MLM a Scam?

Click to Discover a Proven Path to Financial Independence!

If You Want to Make Money.

If you want to improve your finances, I strongly urge you to avoid Multi-level marketing. Statistically, it just doesn’t work for most people. Also, it can damage personal relationships.

A Better Option for You

A business I’ve had success with and one I’ve seen many others succeed with is affiliate marketing.

It’s an easy and affordable business to launch.

However, for a newbie it can take a few months before you earn your first dollar.

Don’t expect overnight success, but if you stick with it, you can create a full-time income and enjoy more free time. Financial independence in 3 to 5 years is also a realistic goal.

You can get started with affiliate marketing for free when you sign-up for the FREE Starter Level of the Online Entrepreneur Certification Course.

As a free member, you’ll get a week’s worth of training in the fundamentals of affiliate marketing. And, you’ll meet an online community of friendly marketers ready to help you build a profitable affiliate marketing business that can change your life.

Beyond the free training, you’ll discover how to build an affiliate marketing business on a shoestring. To learn more about the FREE Training, Go Here.

Related Articles:

Why Affiliate Marketing is Better than MLM

The Heartbreak of MLM

How to Evaluate an MLM Company

If you found this article helpful or have experience with Kannaway, please leave a comment below.

16 thoughts on “Is Kannaway a Scam?

  1. I got mixed up with Kannaway and thank goodness I stopped before they took me to the cleaners. I should have done better research. They are definately scammers.

  2. Say what you will, and I know nothing about this particular company, but CBD oil has definitely made a difference in my old dog’s health.

  3. Great article. Before reading this I had a lot of misconceptions about CBD oil so this was really helpful. I think because the cannabis industry is so new that there is very little hard facts about it out there and a lot of myths and urban legend type info instead. Hopefully, anyone considering investing in this type of business will get the facts first. Thanks for taking the time to do some research and educate the rest of us. 

  4. Thanks a lot for the helpful review! Kannaway isn’t one I’ve heard of but others manufacturers of CBD oil all certainly sell it as a health beneficial product. Am I right in deducing that it is still healthy, just that these companies hype it up and charge a bomb for it (unnecessarily)?

    Thanks again for the great info, I’ll definitely bookmark your site.

    1. Hi, Stephan!

      Some sources report that CBD oil has some helpful nutrients like Omega-3 fats. However, reliable sources specifically state that it is not a miracle cure for anything. The market value for CBD oil is in the range of 50 to 75 cents per ounce. Some health and lifestyle sources recommend CBD oil as a base for salad dressing.

      That said, the largest nutritional study in history, The China Study by Dr. Colin Campbell, recommends that ALL processed fats and oils should avoided. Campbell’s research demonstrated that fats and oils in excess of 10% of daily calories leads to heart disease. 

      With The China Study in mind, then CBD should be avoided.

      Thanks for stopping by,


  5. Hi Gary,

    Thanks for provided info. I was just looking for CBD oils and I have found this company. And I was like wow! What kind of plants they are using so they charge so much. Now it makes much more sense, just a business with no added value.

    Do have any tips on useful CBD oil businesses by the way? If so, can you share some, please!



    1. Hi, Eugen!

      I don’t think CBD oil has any magical powers. It might be a useful source of Omega-3 fats, but the top nutritionists tell us we should avoid all processed fats because they lead to heart disease.

      If you wanted to sell CBD oil, I think the easiest route would be to sell it as an affiliate. An online search will reveal several companies that sell CBD oil that have an affiliate program. However, don’t get involved with an MLM that is selling CBD oil. There are several out there and they all are set up like Kannaway.

      Thanks for stopping by,


  6. Hi. Thanks for the information. There was a lot here I didn’t know. I had been led to believe differently about CBD oils. Thanks for setting some things straight in my mind about that. I had thought they were just like cannabis, but the oil form.

    I have been part of MLM schemes before and been taken advantage of for hundreds of $$. Trust me, I don’t have hundreds to spend on those things, so thank you so much for exposing this Kannaway company…

    Do you know of a legitimate place to do business for this type of MLM industry? Are there any?

    Thank you and I look forward to your reply.

    1. Hi, Karin!

      Most people are led to believe that the CBD oil is something special, even magical, but the industry only promotes it as a healthy fat. There is no reason in the world for people to pay more than about 50  to 75 cents an ounce for it. The prices Kannaway charges are predatory.

      I’m convinced any MLM you join, even the big names that have been around for a long time, will only cause you to lose money. That business also demands a lot of your time and energy. 

      Jon Taylor who writes critically of the MLM industry was in the top 1% of a large, well-known, MLM and did not make money. It was this realization that moved him to write a detail analysis of the MLM industry. The full pdf of his research is on the FTC’s website. You can find it here.

      For his research,  Taylor analyzed over 300 MLMs and determined that 99% of the people who try MLM lose money and that many of them go into debt.

      Thanks for stopping by,


  7. I have to say, I have learnt a lot today from reading your article. One of them being the the real face of MLM structures. I have fallen victim on several occasions and after reading, I feel I have a lot of insight already. I have to ask though, how long have you been doing this? 

    1. Hi, Ikechukwu Ogbonna!

      I’m glad you found something useful in my article about Kannaway. I just finished reading a financial analysis on their parent company Medical Marijuana, Inc which claims they are falsifying their accounting records to show they are making more money than they truly are. Just another insight into the integrity or lack of integrity of the company.

      I tried MLM back in the day and bought the dream they sell of making a lot of money. It rarely happens. As Jon Taylor’s research shows, only 1% make money. 

      When you ask how long have I been doing this, do you mean blogging? This website is 3 years old. Before that I had small niche sites for several years.

      Thanks for stopping by,


  8. Wow that’s some startling figures about MLM’s – only 1% actually make any money! I have to say I am not a fan of the whole MLM system, I am not interested in being a sales rep and especially not for a product that is of dubious value. 

    I have seen so many websites in the CBD Oil space and so being entrepreneurial I thought I should check it out, hence why I am here reading your blog. I have been wondering how they actually make any money, and one assumes this is one way they are doing it.

    I have friends who are in a MLM scheme and to be brutally honest their constant sales speak makes me avoid them like the plague. Thanks for your honesty, great blog and at least I can cross Kannaway off my list of possible business opportunities.  


  9. Thanks for an informative article about cbd oil. I’d rather get ‘prescription’ medical weed in liquid form, much more potent, minus the thc, of course. I agree, the whole cbd thing is so overblown about it’s healing powers, i think something like black cumin seed oil is far more potent when it comes to healing and boosting the immune system. and reasonably priced. i hate pyramid schemes, too, i’ve had to cut off family members who tried to ‘recruit’ me a couple of times lol.I had not heard of Kannaway but will certainly avoid them in the future!

    1. Hi,

      MLM’s are popping up all over the internet. They all sell the dream of making a lot of money, but none of them deliver. There’s a reason MLM distributors chase after recruits. No one go out looking to join an MLM, they have to be talked into it. It’s a dismal business model.

      Thanks for stopping by,


  10. Thank you so much for this eye opening article. I first of all never knew anything clearly about Kannaway. Well at least now I won’t make any mistake of buying Kannway’s product in future. 

    It is really generous of you to let everyone else know about Kannaway. Thank you so much for sharing this with all of us.

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