Is Hempworx a Scam? Is This MLM A Pyramid Scheme in Disguise?

Welcome to our Hempworx Review!

I’m guessing someone has spoken to you about an “amazing” opportunity with Hempworx, where you can work from home and make some good money.

But you’re still not convinced that Hempworx is legit?  Is Hempworx a scam or is it potentially a pyramid scheme in disguise?

First off, it’s great to see that you’re doing your research before buying into any “seemingly good” product.

That is how you avoid scams and find only legitimate ways to make money online!

To be completely transparent with you, we’re not associated with Hempworx in any form.  We’re not here to pitch or sell you anything.

Instead, we want to ensure you get all of the important facts and information about Hempworx, so that you’re in a position to make an informed decision about whether this business opportunity is really all it seems and the right move for you…

Hempworx Review Summary

Product Name: Hempworx

Founder: Josh & Jenna Zwagil in 2014

Product Type: CBD Health & Wellness MLM company

Price: $20 + $39-$500 for products + $70/month

Best For: Experienced Network Marketers 

Is Hempworx a scam - Company Image

Pros

  • Low Startup Costs
  • Positive Product Reviews
  • Marketing Materials

Cons

  • Expensive Products
  • Hidden Monthly Expenses
  • Pyramid Scheme in Disguise?
  • Low Income Potential
  • No Training on Getting Traffic

Summary: Hempworx is an MLM company that sells a range of expensive CBD-infused products.  There is a chance for distributors to make money from selling their products or through recruiting a downline team.

They also claim to provide a “done for you” internet marketing platform, but it won’t actually help you get leads.  The only way it will work is if you spend hundreds of dollars a month on paid ads. (Which typically won’t work, unless you have a background in marketing).

Like with most MLM opportunities, this only really leaves you recruiting as the option to make good money, which could make Hempworx a pyramid scheme in disguise.

Rating: 32/100

Recommended? No

Table of Contents

What is Hempworx About?

Hempworx is an MLM or Multi-Level Marketing company that sells a range of CBD-infused products.

It was founded in 2014, but has since merged with My Daily Choice, which happened in 2017.

Hempworx has taken advantage of the legalisation of Cannabinol products (in some states) and it offers a range of hemp-based supplements and oils claimed to help with anxiety, and other such benefits.

It also offers an opportunity for everyday people to make money from selling these products, or from recruiting a downline team.  Hence the MLM structure.

You can learn a little more about the company with this 2-minute video that explains what the company does…

That video makes it sound really exciting, right?

But you know that this is just a sales video designed to make you think it’s the best opportunity out there…

So, you’re probably still wondering whether Hempworx could be a pyramid scheme…

Is Hempworx a Pyramid Scheme?

No, Hempworx isn’t a pyramid scheme.

It is possible for their MLM members to make money from selling their CBD products without having to recruit anyone.

But a better question would be to ask whether Hempworx could be a pyramid scheme in disguise…

What’s A Pyramid Scheme?

A pyramid scheme is a company where it promises to pay its members for recruiting people into the company rather than selling any products or services.

They do not have any products or services to speak or, or have them as a smokescreen to try to appear legit.

But pyramid schemes are illegal in most countries around the world.  The reason for this, is that it is actually impossible for everyone to make money within a pyramid scheme.

This diagram from Wikipedia shows you why…

pyramid scheme

Most MLM companies do happen to sell legitimate products or services.

However, some MLM companies use these products to mask the fact they are really just a pyramid scheme.  This is when the only way to earn a decent income and not lose money is through recruiting more and more people.

The easiest way to spot these MLM’s operating like this is to see if they have overpriced products and a monthly sales quota to achieve.

We’ll share with you what we found out about Hempworx later, but for now you might find this 5-minute video useful, as it helps you spot a pyramid scheme in disguise…

But what is the success rate like at Hempworx?  Let’s discuss that now…

Success is Rare at Hempworx

It isn’t just rare at Hempworx, but it is really hard to find success at any MLM company.

There are reports that show between 72.5% and 99% of all MLM representatives are losing money

The biggest reason for this is because many MLM’s have a monthly sales quota that they have to achieve to stay active and eligible for commissions.

But if you are unable to sell enough products to meet this quota, you have to buy enough products to meet the shortfall yourself.

This means that most members end up spending hundreds or even thousands just to remain active.

Most MLM companies do not want you to know that their biggest customer base is their own members, and not customers.

Later in the review, we’ll share what we found out when we reviewed their income disclosure statement

How Does Hempworx Work?

Hempworx produces a range of CBD related products.  In turn, they offer everyday people the opportunity to work from home by selling these products in return for a commission.

It sounds like a win-win situation.

Hempworx saves a fortune in marketing campaigns, and their members can earn an income.

But before we see if that is true, let’s take a look at their product line…

Hempworx Product Line

It’s always a good idea to take a look at the products that an MLM offers.  These are the products you will be selling, so you need to understand if they are actually any good.

Hempworx offers a range of CBD related products within the following categories…

  • CBD Tinctures
  • CBD Topicals
  • Hempworx for Pets
  • CBD Bath Bombs
  • CBD Coffee
  • CBD Keto Creamers
  • CBD Gummies
  • Haircare
Is Hempworx a scam - product line

Hempworx does offer a wide range of products, but you should know that the CBD health and wellness market is already saturated.  There are many different MLM companies that all offer a very similar product line…

This will make it considerably harder for you to sell these products, as many other companies are offering the same products.  The added difficulty is that there are much cheaper (and often better) alternatives online.

But what’s the product that makes Hempworx stand out?

Hempworx Flagship Product

The product that is their flagship product is their CBD oil…

The claim they make to differentiate themselves from all of the other companies is that they own their own farmland in the USA.  This means they know exactly what goes into their products

There have been studies that show CBD oil has some benefits for certain illnesses and diseases, such as:

  • Relieving pain
  • Reduce anxiety and depression
  • Alleviate cancer symptoms
  • Reduce acne
  • Ease Parkinson’s and epilepsy symptoms
  • Reduce blood pressure
  • Reduce diabetes

Although, there is very little benefit for everyday people to take these on a regular basis.  Plus, the evidence does suggest that there needs to be more research to be done to prove any of these benefits.

The video below is the same as the one above, another cost saving they have made, but it will start at the part about their products if you want to learn more about them…

Now, let’s get into why you’re probably here… how do you make money at Hempworx?

How to Make Money at Hempworx

Hempworx is an MLM company, so there are the usual two ways for you to make money from their compensation plan…

  1. Sell the products to earn a commission
  2. Recruit more people into the company and earn bonuses from the sales they make

To avoid being labelled an outright pyramid scheme, what you’ll find is that you will not earn commissions for actually recruiting someone, but from any sales that recruit is able to make.

But you should know that the real money is with the recruitment side, which will be revealed in their compensation plan.  First, let’s talk about how much it’s going to cost you to get started…

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How Much Does It Cost To Join Hempworx?

There is a one-time fee to become an “affiliate” (often referred to as a distributor, ambassador, consultant, etc.) with Hempworx, this is a $20 fee.

Is Hempworx a scam - enrolment fee

Whilst this sounds like a good and low price, you have to consider that if you want to sell these products.  You need some to be able to try them yourself and to show your friends and family.

This will naturally lead into you buying a product pack.  This will cost you between $39 and $599.

And the costs do not stop there…

Hempworx Monthly Costs

When you first take a look at their compensation plan, you can be fogiven for thinking that there is no monthly sales quota at Hempworx…

It’s usually a good sign that points to an MLM NOT being a pyramid scheme in disguise…

Just take a look at their compensation plan

is hempworx a scam - rank requirements

However, when you take a look at the small print (always worth a read), you’ll then learn there is a minimum monthly requirement…

is hempworx a scam - minimum monthly requirement

The reality is that you have to actually achieve either 40BV or 90BV depending on your rank to remain active and therefore eligible for commissions.

But if you are unable to achieve those levels, you will need to buy the products yourself.

What’s even more insulting, is that even if you are able to achieve those sales, you are still required to make a purchase every 60 days or risk losing your team.

So, the short of it is, you need to keep on buying products

The total cost for your first year as an Hempworx affiliate is…

  • $20
  • $39 – $599
  • $69 x 12

Total potential expenditure for your first year is: $887 – $1,447

Whilst this is lower than you would expect to spend with a bricks and mortar business, it’s a lot more than just the initial $20 you thought it might be.

I also found something interesting in their income disclosure statement.  Check out the paragraph in red…

is hempworx a scam - income disclosure statement costs

So, this shows that their members are actually spending more than we estimated, with affiliates incurring average costs of $1,608.

Hempworx Compensation Plan

For one reason or another, MLM companies love to make their compensation plans as difficult as possible.

And that’s the same for Hempworx…  We’ll try to keep it simple…

There are 8 ways that you can get paid with the Hempworx compensation plan:

  1. Retail Commissions (25%)
  2. Jump Start Bonus
  3. Binary Commissions (Check out the diagram below)
  4. Leadership Check Matching
  5. Global Bonus Pool
  6. Rank Bonuses (We’ll show the ranks below too)
  7. VIP Auto Club
  8. Elite Expenses Account

Here’s the diagram showing you how the binary commissions works…

Is Hempworx a scam - binary commissions

And here’s the details of the affiliate ranks…

is hempworx a scam - affiliate ranks

Don’t worry if you’re still confused.  I think that is the general idea…

But the main thing you need to know is that you don’t actually need to understand it fully to get started. All you need to know is what you need to do to actually get paid, which is:

  1. Sell Hempworx Products
  2. Recruit People into your Downline

BUt when you do actually work out what their compensation plan is really all about, you will notice that there is a real heavy emphasis on recruitment.  Which naturally points towards it possibly being a pyramid scheme in disguise.

If you want to learn a little more about their compensation plan, you can watch the video below…

Find the full 16-page compensation plan here…

Is Hempworx A Scam?

No, Hempworx isn’t a scam.

They sell a range of legitimate CBD products and pay their distributors just as they say they do.

So, why do so many people label MLM’s as a scam?  Well, that is usually because people are misled into joining the opportunity.  They don’t get all the facts by their sponsor or aren’t made aware of the monthly sales quota, and so they lose money.  End up leaving and calling it a scam.

So, whilst Hempworx isn’t a scam, whether it’s the right opportunity for you is another matter.

Only you can really make that decision.  MLM isn’t for everyone, as you need to be good at sales and recruitment all in a competitive and saturated market.

What the rest of our review will do is provide you with all of the other information you need to know, so that you can make an informed decision.

Just to be completely transparent with you, I’m not a distributor of Hempworx, nor do I endorse Hempworx in any way.  I have researched the website, testimonials, and information available on the internet to get the details about what this program genuinely does.    I do this, as I have been caught out by a scam in the past, and am trying to help others avoid a similar fate…

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What We Liked About Hempworx

Here’s what we liked about Hempworx:

#1 Low Startup Cost

Compared to many MLM’s, Hempworx is a smaller startup cost.  It will cost you $20 and a product pack to get started, and their cheapest product pack is $39.  So, you can technically get started for $59.

You do still need to remember that you need to sell at least $69 a month to remain active, or buy $69 worth of product if you’re unable to do this.

So, you do need to keep this in mind.

#2 Positive Product Reviews

It is hard to differentiate between fake reviews put on sites by distributors against real product reviews put by real customers.

But when you see the number of reviews online, I think it is safe to say that their products do get a good score from consumers.

The examples above make it clear they have come from genuine users of the products.

This is a good sign that shows that Hempworx isn’t a scam.

#3 Marketing Materials

This bit does help Hempworx stand out from other MLMs.  There is an online marketing platform that is provided by My Daily Choice.  You can learn more in this video…

I think there are a couple of things you should know about this marketing platform.

The first is that there will be some sort of monthly or annual fee for this service.  But we cannot find any information about it.  It might be free, but I wouldn’t be able to confirm that.

Secondly, these “done for you” systems still require you to get people (traffic) to the website they provide you.

These ready made websites will not rank organically in Google, so that means you will be relying on either paid advertising or social media marketing.

Bottom line, you’ll be required to put aside a budget towards marketing your website to make it work for you.

You can learn these skills, but not from Hempworx… Most MLM’s leave it up to you to learn all you need.

What We Didn't Like About Hempworx

Here’s what we didn’t like about Hempworx:

#1 Expensive Products

This is the first thing to check when checking out an MLM.  Expensive products coupled with a monthly sales quota is a huge red flag and concern.  It shows that they could be operating like a pyramid scheme in disguise.

We’ll explain more on that shortly, but for now take a look at this…

Is hempworx a scam - price comparison

So, if you were to buy hemp oil from Hempworx, it will set you back $69 per oz.

But if you were to buy hemp oil from Amazon, you are looking at paying between $5 and $20 per oz.

That shows that there is a 200% to 1,000% markup on Hempworx products.

And clearly from the reviews on the Amazon alternatives, they are getting some good ratings.  So, they are not particularly second rate to Hempworx products.

Why would anyone want to pay the prices you are quoting them?  When they can log onto Amazon, not have to deal with a sales person and get a better deal? 

that’s why MLM is so difficult.

#2 Hidden Monthly Expenses

We described this earlier, but Hempworx are being really deceptive here…

At first glance, I though there wasn’t a monthly sales quota like with most MLMs.  Their income statement actually states that affiliates can earn even when generating less that the 40 Personal Volume…

But when you start digging deeper into their compensation plan, you find this…

is hempworx a scam - disclaimer

But reading this, you do think that maybe they just earn bonuses from their downline and they can also earn commissions from their sales.  That isn’t too bad, right?

But then reading these comments on the Better Business Bureau (BBB) made me think again…

So, it looks like you do have to ensure you do reach that 40 PV a month or else you risk losing any commissions from your downline.

This means you have to sell or buy $69 per month, every month.

#3 Hempworx is a Pyramid Scheme in Disguise

Think about it… When you are required to keep spending $69 per month just to remain active, there is only one way you can be sure of not needing to do this every month.  And that is by recruiting.

Recruit people underneath you, so that in turn makes them need to spend $69 a month to release that burden on you…  It’s not a good thing, but it’s how these things work.

is hempworx a scam - pyramid features

You might still not be convinced that Hempworx is operating like a pyramid scheme, but here are some of the hidden truths that shows you how it is…

  • 7 out of the 8 ways you can earn money all require you to recruit people
  • The only way to climb the ranks is to recruit people
  • Every sales video and their compensation plan has a chart or image similar to the one above (pyramid shaped)

To be clear, they are not an outright pyramid scheme… but hopefully you agree, it does look very similar to a pyramid scheme in disguise…

#4 Low Income Potential

Well, when you take 0.38% of their distributors earn more than $15,891 per year.  Another way to say that is 1 in 300 members make over $15K.

Those are the elite, and it also shows that the the other 99.9% are not achieving that figure.  We also showed you a screenshot earlier that showed how many people didn’t earn any income…

is hempworx a scam - no income

That shows that 72,118 of all affiliates for that time period received no income at all…

And the rest of their income disclosure doesn’t show for good reading…

Is hempworx a scam - income disclosure

It shows that a high percentage of their members are not even earning more than $81.58 a month.

Another consideration is that these figures do not include anyone who isn’t able to hit that $69 a month mark.

That makes these figures even worse reading…

You can check out their full income disclosure statement here…

#5 No Training on Traffic Generation

Hempworx has a unique element, which is that marketing platform they are offering you.  It sounds like a fantastic feature.

But it is also a feature that comes up short.  As they don’t provide you any training on how to make use of it effectively.

The whole point of a funnel is to get traffic to your sales or landing page.  If you don’t know how to do this, then there is very little point having it.

As they are giving you a replicated website, you’ll have to resort to paid advertising or social media marketing.  Both require training and a method to achieving it.

The problem is that you don’t get provided any training to help with this.

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My Hempworx Review - Final Conclusion

In conclusion, Hempworx is a legit MLM company offering a range of CBD related products. As to whether it’s a good business opportunity, that isn’t looking good.

Selling overpriced products in a saturated market is a tough ask, especially as you’ll have to pay up $69 a month just to remain active.

They do give you a website that you can use to take your business online, but fall short of providing you effective training.  Done the right way, you can get people to your website and find people who are interested in buying your products or your business opportunity.

But there are much better ways of promoting products online, without the shackles that come with an MLM.

Affiliate marketing for example, you can promote those products we showed you earlier on Amazon for free…with the right training

How We Make Money Online

We are not fans of MLM, the business model is legit, but the success rate is extremely low (only 1%).

We prefer affiliate marketing, the reasons are simple:

  • No need to sell face to face
  • No need to recruit other people into your downline
  • You are not tied down to one MLM company
  • There are endless possibilities
  • Affiliate programs are usually free to join
  • No monthly quotas

We prefer to help people with their purchasing decisions and not push for sales or go face-to-face, we have found a way of making a passive income online and we would like to help you achieve the same thing.

You can still go with CBD or Hemp Oil as your niche, but with our list of 23 affiliate programs you can join, you can promote products for free and still make money.

If you don’t want to promote CBD, then you can still make money.  Why not choose something that you are passionate about, why not find out how you could turn a hobby into a money-making business opportunity.

If you want to make money online or from home, without all the MLM stuff, then we highly recommend you read our Wealthy Affiliate review.  Find out how with the right training, you can turn your hobby into a profitable online business.

If you want to learn more, click the button below and read how we did it…

Thanks for checking out our Hempworx review!  If you have any questions or comments to add, then please write them in the comments below. 😉

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Hempworx

$20 + $39-$599 + $70/month
3.2

Overall Rating

3.2/10

Pros

  • Low Startup Costs
  • Positive Product Reviews
  • Marketing Materials

Cons

  • Expensive Products
  • Hidden Monthly Expenses
  • Pyramid Schemes in Disguise
  • Low Income Potential
  • No Training on Getting Traffic

2 thoughts on “Is Hempworx a Scam? Is This MLM A Pyramid Scheme in Disguise?”

  1. I always find these compensation scales confusing. One reason I have never looked at becoming involved with MLM. I had a lady friend who used to jump on the latest best thing band wagon when ever one of her friends had signed up for some product or other. 

    So far as I know she never made much money, some, but no where near enough to justify the effort plus my garage was full of boxes of stuff that took ages to move. 

    This Hempworx looks like another of the latest best thing. It will draw in the gullible and no doubt leave many with a sour taste in their mouth.

    Reply
    • Hey Michael,

      thanks for checking out our review!  Yeh, I know people who have got stuck with garages full of stock that they are never going to use personally, or evert get rid of.  It’s a tough business model and not everyone is a born sales person.  

      But they launch these fascinating sales video that make it sound so easy.  The select few who do make it, are usually those people who are silver tongued and are able to sell anything.  They don’t always care about who they recruit…

      MLM is one of the hardest things to do, and yet they are so easy to start up with…

      All the best

      John

      Reply

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