MLM: Why is it bad for CBD marketing
Have you ever thought about becoming your own boss and making millions of dollars from the comfort of your home? Or maybe your friends or relatives tried to lure you into their legally distinct from a pyramid scheme multi-level marketing (MLM) organisation promising you quick buck with no effort at all? Chances are, you have encountered several MLM organisations in your lifetime, maybe without even knowing what’s it all about.
If you think this all sounds too good to be true, it does. According to this study, a staggering 99% of participants in MLM “business” won’t see any profit from their MLM endeavour. According to another study, 47% report losses.
So what exactly is the CBD MLM and should you try joining one if you still consider it after reading these statistics? Let’s find out.
What is a CBD MLM
MLM, or multi-level marketing in general, is a business model, where participants are expected to distribute a product, created by a company they join (anything from cosmetics and diet supplements to educational materials and self-help courses). Also these independent distributors, as they are dubbed, are expected to recruit new distributors to join the “team”. Once a distributor gets a new recruit, they receive a % of the sales made by this recruit. Better yet, when the recruit gets to recruit their own «downline», the % of the sales from these distributors gets funnelled up to the original distributor.
Seems eerily familiar, right? You might ask what makes it different from the good old pyramid scheme? Well, according to the MLM companies themselves, they are not pyramid schemes at all. The difference is, their main goal is to sell the product, not to recruit the members. They claim that playing by the rules won’t get you financially drained and you can successfully turn profit without even recruiting.
Studies and participants’ accounts show, however, otherwise. The only people who can boast nice MLM incomes are at the tip of the “reverse funnel” (we get it, it’s not a pyramid).
Is CBD industry profiting from MLM companies?
Every popular product that is popular among the customers will attract the attention of shady businesses. CBD is not an exception and there are several MLM companies whose product of choice is CBD. While legitimate CBD producers and distributors are transparent and careful with their claims, MLM companies are often lousy in communicating the true scope of CBD benefits. Independent contractors are forced to make false medical claims to turn profits and they are rarely held responsible for that.
This creates hundreds or even thousands of disappointed customers, who were duped by MLM representatives. They begin to associate CBD as a whole to a snake oil sold by dishonest people to make a quick buck and disappear.
So the answer is no, CBD producers and marketers don’t get anything good from being associated with MLMs. On the contrary, the overall reputation of the CBD industry might be at risk because of them. MLMs on the other hand are profiting heavily from the buzz CBD creates in the media. It makes people more likely to fall for their false promises. Instead of getting benefits from using CBD and earning income selling and promoting CBD products they are likely to be burned.
What are the pros of joining a CBD MLM?
The short answer is: there are none. By participating in an MLM you don’t get any perks. If you’d like to become a part of CBD business, this won’t even be a nice line on your CV. There is no valuable experience you can gather in an MLM, other than the notion not to do it again.
Let’s start with enrolling as an individual distributor with an MLM. Most likely, you will be asked to chip in right away: to “start your own business” you will be asked to buy a starter kit. You will be convinced that the more you buy the better bargain you get. After all, the magic product sells itself, all you need to do is cash in your checks. So this first investment will look like nothing compared to your future profits.
But for some reason, after you have convinced your grandmother to buy from you, your market has dried out and your ad posts on facebook don’t get any hits. You don’t sell remotely enough to consider your new occupation a decent replacement for a job. In MLM books this means it’s time to build your team! You go and recruit even more people to the scheme hoping that magically they will sell what you couldn’t.
But the reality is that the product itself is really overpriced compared to non-MLM alternatives. Hight prices ensure all the layers of the “pyramid” get their commission on the sales. It’s really hard to sell this kind of product when there are literally hundreds of better priced alternatives just a click away. Moreover, these alternatives don’t make a customer feel guilty for not buying from an aunty who has big dreams and sales goals.
Are there any alternatives to CBD MLMs?
We’ve said enough about what not to do if you want to become a part of the CBD selling business. But what should you do if you really want to turn profit? We suggest you to become a CBD affiliate! Unlike an MLM, in many cases it doesn’t require any initial investments. You don’t have to buy anything to then resell it, so you definitely won’t end up with tons of unsold products even if you won’t succeed. Moreover, you don’t have to promote one brand only. You are free to test different CBD campaigns to choose the best selling products and best terms for you as an affiliate.
As with any business venture, there are risks and difficulties, but there’s no sugarcoating the truths of being an affiliate marketer. But anyway, the game isn’t rigged against you from the very start and your success mostly depends on how you work, not on the amount of people you manage to dupe.
By joining a CBD Affiliate Network you get access to multiple campaigns from the best companies there are on the market with no strings attached. As a CBD affiliate you’re definitely in control of your own work time and methods. Sure, you can build your own team but it’s not required to turn profits.
Also, there is a dedicated support team that is ready to help you run successful campaigns. So if you are interested in getting into CBD business with no initial costs and high probability of getting a steady income, join CBD Partners Affiliate Network! We are here to help you make legitimate business in the CBD industry.