Buy CBD from the farm not a MLM.
Multi Level Marketing (MLM), also known as pyramid selling, is a marketing strategy for the sale of products in which a company uses a non-salaried workforce to generate its revenue by offering a commission-based compensation system for the work selling its products. To ‘work’ for an MLM company, the ‘worker’ generally must first purchase the products that they intend to sell from the company or a seller who already works for the company. Now laden with products, this person must then convince other people to purchase products directly from themselves in a retail scenario or convince others to also go on to sell the products for the company and become part of their ‘downline’. The recruiters become incentivised by making commission off of the new recruits inventory. These new recruits are then incentivised by recruiting more people, and on the cycle continues. Basic economics would say that for this business model to work, the products have to eventually be sold at an over-inflated price for people who are far enough ‘down the line’ to make any money.
MLM’s are a predatory business model
The majority of people who enter this level of business very rarely manage to break even, let alone making a living wage. Estimates have it that only 10% of people involved within an MLM make 90% of the money and most of those who enter generally describe themselves as being ‘duped’ or ‘fooled’ into being part of the business and advise that joining the MLM has ruined their life.
What’s worse is that the products that these companies sell generally target stay-at-home mums or unemployed people as a way to make extra revenue by ‘being their own boss’. These people feel desperate to make their money back and end up bombarding family and friends to purchase the product, ruining relationships in the process. Some people even stick at working for the MLM for several stressful years due to companies holding conventions showcasing people who have made millions from selling the product. Some of these claims of people making millions have since been proven to have been falsified.
Buy The Farm Not The MLM
A new study from UC Davis took a look at the way buying directly from farmers affects the economy in the Sacramento, California, area – which is only 4 percent of Sacramento’s total agricultural business. It’s a complicated question, but the conclusion is decisive: Buying directly from farmers has a disproportionately large impact on the local economy.
At its core, the study found that a dollar spent buying directly from a farmer has about twice the impact on the local economy as spending a dollar on food that goes through a middleman – a supermarket, for example. There are all kinds of reasons for that: Farmers who sell directly to consumers tend to buy more supplies locally, which can benefit seed and equipment sellers in the area; and they also tend to hire more local labor, which in turn benefits in the community.
There are a lot of statistics and numbers in the study, some of which are kind of theoretical and/or hard to wrap your brain around. But some are clearer. From the study:
"This means, that for every $1 million of output they produce, the direct marketers are generating a total of 31.8 jobs within the Sacramento Region, while producers not engaged in direct marketing only generate 10.5 jobs."
Think about this hypothetical: What would happen if grocery stores in your area switched their purchasing habits a little, buying more from farmers who also sell directly to consumers and less from those who only wholesale? The study showed in Sacramento it would create a number of jobs and infuse $1.2 million into the localized economy.
Putting a stop to CBD MLMs
There are very simple steps that can be taken by consumers and those within the CBD industry to ensure that these false products don’t increase in popularity.
- Do your research – The onus is on the consumer to purchase products from legitimate companies. Research into what the product you are looking at should contain and effects it should cause should be researched. If unsure, any legitimate company should be able to answer your questions. So, ask the vendors any questions you may have. If they are worth their salt they will provide you with comprehensive information.
- Only buy lab-tested products – Any company selling CBD products should be able to provide full lab test results for their products. These should be conducted by a legitimate third party company and will provide you with cannabinoid content, heavy metal content as well as any residual solvents or unwanted particles and compounds. These are provided by legitimate companies as a way to provide you with all the information you need to trust the products.
- Don’t buy from untrusted sources – CBD sold by the local gas station or by a family friend on the internet doesn’t quite cut it as a legitimate source of CBD. It doesn’t legitimise a CBD product just because it is sold in a popular health food store or supermarket either – as testing on CBD content in products showed. Some of the safest sources of CBD products seem to be from designated CBD vendors online, because they ensure they fully understand their product and feel the need to legitimise their product with full lab tests in order to ensure the survival of their company.
- Avoid ‘hemp oil’ from Amazon – Thinking that Amazon would be a safe source for purchasing CBD would be very incorrect. Notice how none of the oils sold on the website reference CBD in any way, it’s because they don’t contain any as per Amazon’s policy. The vendors on Amazon are selling regular hemp oil at an overinflated price.
Although it’s unfortunate that predatory industries such as MLMs and pyramid schemes exist, with careful research into the source of your products, you need not be stung by them. Hopefully, this will provide the basis for taking that little bit of extra care into research before purchasing any new products, regardless of the source. Trust the farm and ask questions.