Medical Marijuana Inc (MJNA)

[GDorn]

You are correct

There is no massive product purchase required to become a Kannaway "brand ambassador." That just costs $15/month. You are not "required" to participate in the "8 weeks to success" bonus promotion either. However if you want to "treat Kannaway like a business" you are encouraged (brow beaten) into trying to max out the 8 weeks bonuses and what the very first step in doing that? You become "premier qualified" by plunking down the better part of a cool grand on Kannaway product packs.

Listen to their calls and group events, for every mention of trying to sell products to actual customers you'll hear ten mentions of recruiting new affiliates and getting them "premier qualified."

Dude, this is straight up MLM front loading:

http://thompsonburton.com/mlmattorney/2012/10/15/front-loading-excessive-orders-upon-enrollment/

Regulators try to analyze the motivation driving people to purchase the product or service. If the motivation is pure and distributors are purchasing product due to a sincere want or need, the program is in great shape. If, on the other hand, distributors are purchasing product primarily to qualify for additional bonuses, it’s a problem. This is known as “Opportunity Driven Demand.”

Since that article was written FHTM was closed down by regulators and BurnLounge lost it's appeal and both cases focus in part on affiliate's motives for buying product within a comp plan.

But legal technicalities aren't the real problem with KWay, sustainable growth is. If history is any judge the vast majority of people who plunk down $1K in "first order" product purchases are never going to make that money back. It doesn't take long for those daily online pep rallies to start ringing hollow when looking at a big hole in your wallet.

KWay ~could~ have tried to price their products competitively and had their affiliates focus on retail sales to real customers. If they had they might have turned into a stable, long term product distribution channel. But they aren't doing that.

Are they?