Hempworx is a fairly new MLM company that was just founded in May 2017. Even though it is less than three years old, it has experienced tremendous growth during its short lifetime. Hempworx has tried to capitalize on the recent boom in the CBD oil market. With the company being so new and being privately held, there is limited information available about their financials. However, this is absolutely a real company that sells real products.
Company Overview
History of Hempworx
According to the Hempworx website, founders Josh and Jenna Zwagil “are the ultimate power couple.” Each of them had been involved in the MLM industry for years before meeting each other and ultimately founding Hempworx. At the age of 18, Josh sold his drum kit for $600 in order to raise the startup capital he needed to join his first multi-level marketing company.
Josh’s investment paid off big time. Through his hard work and dedication, Josh had created a team of 60,000 and reached sales of $100 million within 6 years. He became the #1 income earner within his company. However, there were some things about the MLM world that he did not like.
Josh quickly saw how frequent compensation plan changes, product changes, and other turmoil within the industry affected people and sales. He decided that he could do something about it, and he set out to launch his own MLM company. He met Jenna in the summer of 2014, and he launched his company MyDailyChoice (MDC) in November 2014. Impressed with Jenna’s networking skills, he asked her to become his first affiliate.
Though the original product line only contained three nutrition sprays, Jenna was able to quickly jumpstart sales. The couple ended up marrying, and then Jenna began to experience some health problems. These health problems led to her utilizing medical marijuana and CBD oil for treatment.
Because of her own health journey, Jenna and Josh co-founded Hempworx in May 2017, which merged into Josh’s existing company MyDailyChoice at the same time. The brand quickly grew and did $9 million in sales in 2017 and $100 million in 2018. In fact, it was one of the fastest growing MLM brands in the world in 2018.
Company Investigations
So far, it seems that Hempworx has not been the target of any major investigations or scandals. Although, there are a few minor items that the company has had to watch over the past couple of years. First, many of their distributors have made improper health claims in the marketing of their products.
Some of their affiliates have marketed the product as being able to cure a number of diseases such as Parkinsons, MS, Chrons, seizures, and other health issues. The FDA has made it very clear that marketing supplements as being able to cure diseases is illegal. The company has frequently communicated with its distributors about the need to stop this activity, but it seems that it does continue in small pockets.
The other things that have come up surrounding the company are typical of most any MLM company. Those are allegations of the company being a pyramid scheme and making false promises about income potential. These claims do not seem to have much real basis as the company does publish an earnings disclosure statement so that potential distributors can see exactly what the company has recently paid to its affiliates.
Current Company Structure
Hempworx is headquartered in Las Vegas, and it has approximately 70 full time employees. Josh Zwagil serves as the CEO, and the company has a strong leadership team of executives serving alongside him. Its affiliate network has grown to around 60,000 distributors. The company is still privately held did over $100 million in sales in 2018. No data for 2019 could be found.
Hempworx still sits under the MyDailyChoice business umbrella. MyDailyChoice is the parent company and network marketing business. Hempworx is a product brand inside the MDC company. Affiliates who sign up with MDC can market and sell the Hempworx products.
Hempworx Product Lines
Obviously, the company’s product lines all revolve around CBD oil and CBD oil-infused products. The company sells several different types of products in this space. Some of their more popular items are their CBD tinctures and CBC topicals. These are the more traditional oil products.
In addition to oils, the company also sells a variety of CBD-infused products. They make CBD bath bombs, CBD coffee, and even CBD coffee creamer. They sell several hemp-based hair products such as shampoo and hair masks. Finally, they sell CBD oil for dogs and CBD dog treats.
Company Marketing Practices
Co-founder Jenna Zwagil’s social media influence has been a big key to her success through the years. It is no different with Hempworx, and social media has been a big marketing area for the company. Through social media marketing and testimonials, the company has been able to grow both sales and affiliate numbers.
Marketing for the company in general can be a little tricky as some countries and states are still trying to determine the legality of these products. It does appear, however, that the company will currently ship to any state in the United States.
Making Money with Hempworx
With the CBD oil industry currently booming, what are the earnings expectations for a new MDC affiliate selling the Hempworx products? Hempworx has released an income disclosure statement covering the time period from May 2018 to May 2019 that can help answer that question.
The average annual income for all affiliates (both active and inactive) during the time period was $580.08. When looking strictly at active affiliates, 43% of that group were at the lowest level of “Builder,” and they averaged an annual income of $91.20. To put things further into perspective, only 54 of the company’s approximately 60,000 affiliates averaged an annual income of $52,752 or greater. Over 70% of affiliates who sign up with the company do not renew their membership in year 2.
How to Enroll
Enrollment is simple through the company’s website. There is a one-time $20 affiliate fee, and you can order a range of products from $39 to $599 as your starter kit. Starter product is not required to become an affiliate, although it is highly recommended so that you can begin to market the products. If you decide not to renew your membership, the company will even buy back your unused products and refund your affiliate fee.
Compensation Plan
Affiliates earn money only through sales and never earn money from recruiting others into the business. This is slightly misleading as affiliates do earn money from the sales of people that they recruit into the business, so there is still a large incentive to recruit others to your downline. Affiliates purchase the products at a discounted rate, and then they keep the different between their selling price and purchase price.
In addition, there are many opportunities for bonuses and even car allowances based on the sales volume of your downline. In fact, you can earn commissions on the sales of your downline up to 10 levels deep. This is one of the most generous commission structures in the MLM industry.
Sales and Marketing Techniques
It sounds like a broken record, but social media influencers have seen the most success selling this product. Those with a large social media following are able to pitch the products to their audience and generate interest through testimonials and product demonstrations on social media. This is what kickstarted the sales for the whole company, and it is what affiliates are continuing to see success with.
Comparison to Other MLMs
Hempworx has experienced huge growth over its short lifetime, yet it has a much smaller affiliate network than many of the popular MLM’s today. This could signal a good opportunity to get in on the ground floor of the company and start building your network. The company has a robust compensation plan which allows for high earning potential for its top performers.
One of the downsides of this company is the fact that many people are leery of trying CBD-based products. This is especially true for people who work for companies that perform drug-testing. In fact, Hempworx notes that you should NOT use these products if you are subject to drug-screening by your employer. So, this could greatly limit the potential customer base for the products.
Conclusion
Hempworx is a legitimate multi-level marketing company with cutting edge, hemp-based CBD products. They have an excellent compensation model and have grown tremendously in the last couple of years. Their top performers earn over $600,000 per year. However, their financial data shows that the majority of their affiliates still make little to no money. If you have a large social media following who may have interest in CBD products, then you may want to become an affiliate and take advantage of this opportunity.
