Founded in May 2017, Hempworx represents a relatively new entrant to the MLM landscape that has achieved remarkable expansion despite being less than three years old. The company has strategically positioned itself to capitalize on the explosive growth within the CBD oil market. While limited financial information is publicly available due to its private status and recent establishment, Hempworx operates as a legitimate business with genuine product offerings.
Company Overview
History of Hempworx
The Hempworx website describes founders Josh and Jenna Zwagil as “the ultimate power couple.” Both brought extensive MLM industry experience before their partnership led to Hempworx’s creation. Josh’s entrepreneurial journey began at 18 when he sold his drum kit for $600 to secure startup capital for his first multi-level marketing venture.
This initial investment proved extraordinarily profitable. Josh’s dedication and strategic approach enabled him to build a 60,000-person team generating $100 million in sales within six years, establishing him as his company’s top income earner. Despite this success, he grew dissatisfied with certain aspects of the MLM industry.
Josh recognized how constant compensation plan modifications, product line changes, and general industry instability negatively impacted both distributors and sales performance. Determined to address these issues, he decided to launch his own MLM venture. After meeting Jenna in summer 2014, he established MyDailyChoice (MDC) in November 2014. Recognizing Jenna’s exceptional networking abilities, he invited her to become his inaugural affiliate.
Despite the original product line featuring only three nutrition sprays, Jenna successfully accelerated sales growth. The couple eventually married, but Jenna later faced health challenges that led her to explore medical marijuana and CBD oil as treatment options.
Jenna’s personal health experience inspired the couple to co-found Hempworx in May 2017, which simultaneously merged with Josh’s existing MyDailyChoice company. The brand experienced explosive growth, generating $9 million in sales during 2017 and reaching $100 million in 2018. This performance positioned it among the world’s fastest-growing MLM brands in 2018.
Company Investigations
Hempworx has largely avoided major investigations or scandals, though several minor issues have required attention over recent years. The primary concern involves distributors making unauthorized health claims when marketing products.
Some affiliates have promoted products as potential cures for various conditions including Parkinson’s, MS, Crohn’s disease, seizures, and other health issues. The FDA strictly prohibits marketing supplements as disease cures. While the company regularly educates distributors about avoiding such practices, isolated instances continue to occur.
Other concerns surrounding the company mirror those facing most MLM organizations: allegations of operating as a pyramid scheme and making unrealistic income promises. These claims appear largely unfounded, particularly since the company publishes an earnings disclosure statement allowing potential distributors to review actual affiliate compensation data.
Current Company Structure
Operating from its Las Vegas headquarters with approximately 70 full-time employees, Hempworx maintains Josh Zwagil as CEO supported by a robust executive leadership team. The company’s affiliate network has expanded to approximately 60,000 distributors. As a privately-held company, it achieved over $100 million in sales during 2018, though 2019 data remains unavailable.
Hempworx operates as a brand within the MyDailyChoice business structure. MyDailyChoice functions as the parent company and network marketing platform, while Hempworx represents a product brand within the MDC ecosystem. MDC affiliates can market and sell Hempworx products as part of their business portfolio.
Hempworx Product Lines
The company’s entire product portfolio centers around CBD oil and CBD-infused items. Their offerings span multiple product categories, with CBD tinctures and topical applications ranking among their most popular items in the traditional oil product segment.
Beyond traditional oils, the company offers an extensive range of CBD-infused lifestyle products. Their catalog includes CBD bath bombs, CBD coffee, and CBD coffee creamer. The product line extends to hemp-based hair care items like shampoo and hair masks, plus CBD oil and treats specifically formulated for dogs.
Company Marketing Practices
Co-founder Jenna Zwagil’s social media expertise has proven instrumental to the company’s success. Social media remains a primary marketing channel for Hempworx, with the platform using social media campaigns and customer testimonials to drive both sales growth and affiliate recruitment.
Marketing these products presents unique challenges, as various countries and states continue evaluating the legal status of CBD products. Despite these regulatory complexities, the company currently ships to all United States locations.
Making Money with Hempworx
Given the current CBD oil industry boom, what income potential can new MDC affiliates expect when selling Hempworx products? The company’s income disclosure statement covering May 2018 to May 2019 provides valuable insight into earnings expectations.
All affiliates (including both active and inactive members) averaged $580.08 in annual income during this period. Among active affiliates specifically, 43% maintained “Builder” status at the entry level, earning an average of $91.20 annually. For additional perspective, only 54 of the company’s approximately 60,000 affiliates achieved average annual earnings of $52,752 or higher. More than 70% of new affiliates fail to renew their membership for a second year.
How to Enroll
Enrollment through the company website is straightforward. New affiliates pay a one-time $20 fee and can purchase starter kits ranging from $39 to $599. While starter products aren’t mandatory for affiliate status, the company strongly recommends purchasing inventory to effectively market the products. The company offers a buyback guarantee for unused products and will refund the affiliate fee for non-renewing members.
Compensation Plan
Affiliates generate income exclusively through sales rather than recruitment activities. However, this description is somewhat misleading since affiliates do earn commissions from sales made by their recruited team members, creating significant recruitment incentives. Affiliates purchase products at discounted rates and retain the profit margin between their cost and selling price.
The compensation structure includes numerous bonus opportunities and car allowances based on downline sales volume. Affiliates can earn commissions from sales occurring up to 10 levels deep within their organization. This represents one of the MLM industry’s most generous commission structures.
Sales and Marketing Techniques
Social media influencers consistently achieve the strongest sales performance with these products. Affiliates with substantial social media followings successfully promote products to their audiences through testimonials and live product demonstrations on social platforms. This approach originally launched the company’s growth and continues driving affiliate success.
Comparison to Other MLMs
Despite Hempworx’s impressive growth trajectory, its affiliate network remains considerably smaller than established MLM companies. This size difference could represent a ground-floor opportunity for building networks within a growing organization. The company’s comprehensive compensation plan offers substantial earning potential for high-performing affiliates.
A significant drawback involves consumer hesitancy regarding CBD-based products, particularly among individuals subject to workplace drug testing. Hempworx explicitly advises against product use for anyone facing employer drug screening requirements. This restriction could substantially limit the potential customer base.
Conclusion
Hempworx operates as a legitimate multi-level marketing company offering innovative, hemp-based CBD products. The company features an excellent compensation model and has demonstrated remarkable growth over recent years, with top performers earning over $600,000 annually. However, financial data reveals that most affiliates generate minimal income. Those with substantial social media followings and audiences interested in CBD products may find affiliate opportunities particularly attractive.
