Medical Marijuana Inc (MJNA)

[GDorn]

The MLM per se isn't the problem

The network marketing business model could have worked well here. Instead of the time and expense of a more traditional advertizing/consumer education effort to raise awareness and understanding of CBD related products, educating and incentivizing affiliates to get that word out for you could been a win-win situation.

But Kannaway fell into the trap of trying to pay out so much in hard to qualify for affiliate bonuses that there was no way they could bring their products to the consumer at anywhere near a fair price.

This has two primary effects. First, anyone learning about CBD from a Kannaway rep and who bothers to comparison shop will find products with a higher CBD content at lower prices if they don't purchase from Kannaway/HempMeds/MJNA. So Kannaway is indirectly advertizing for MJNA's competitors.

Second, because Kannaway is a losing proposition from a consumer purchase standpoint it is also inherently a losing proposition for the overwhelming majority of it's own affiliates. Doc K will quickly point out that Kannaway does not require it's affiliates to purchase expensive product packs but anyone examining their bonus structures, comp plan and social media will clearly see that they most strongly encourage their affiliates to do so. So with very little actual consumer retail purchasing you have a group of affiliates "investing in their business" in the form of upfront purchases discovering that unless they can recruit enough people to do likewise they will never recover that investment. This explains why if there are not already more Ex-Kannaway affiliates than currently active ones, there will be soon.

Kannaway's Google Trends line showing how frequently the word "Kannaway" is used as a search term in Google:

http://www.google.com/trends/explore#q=kannaway&date=today%2012-m&cmpt=q