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