Medical Marijuana Inc (MJNA)

[GDorn]

Kannaway is Limping at Best

They've spent the last month+ in self hype overdrive but when there is any way to quantify their results they come up very short.

Check out the view numbers on the company YouTube page. A MLM company with an efficient social media strategy would have their affiliates spamming out links to their videos to use as recruiting tools but the "November to Remember" announcement has 146 views (and one of those was from me).

Ted Nuyten runs the Business for Home blog and it is not without influence in the MLM world. One of his features is the annual MLM popularity contest which while nothing like a scientific poll does have one interesting control aspect, you can only cast one vote per facebook account you control. October 5th was the first date I saw a "Vote for KWay" post on one of the FB groups but such requests have been made several times in several groups and one of the "State of the Nation" videos ran the link and request ticker fashion. Yet a full month later Kannaway is in 119th place with a total of 115 votes.

The "Bulk Order" program is kinda fascinating to me in so far as this sort of thing never helps a MLM company. Products sold at retail through traditional stores are almost invariably less costly than products sold through MLM so MLM'ers always have to claim that their products are simply better. The last thing they want to deal with is the exact same products in the exact same packages sitting on a shelf cheaper than the affiliates can buy wholesale direct from the company but that's starting to look like a very real possibility.

I haven't done the legwork on this one yet but based off a few comments on a recent call it looks like "accredited retailers" might be given the option of buying Kannakick taffy for 40% bellow listed wholesale. The intimation is that they would turn around and sell the stuff at Kannaway's listed retail price (close to $12 for a box of four taffy squares) but the more dust that accumulates on the display case the more the price will drop.

I can almost promise the bulk purchase program was not the idea of the MLM people at Kannaway, this is HempMeds telling them they aren't selling nearly enough product. The Cannabis Beauty Defined product line (pending the outcome of the trademark suit) might have some level of commercial viability if sold through a salon but how much repeat sales will the HempVape get in a smoke shop when both the eCig "pen" and the oil refills are sitting side to side with much cheaper competing products?

No, this is why they started a MLM in the first place, to sell niche products at an insane markup. A small handful of upper level Kannaway promoters are making money but are doing so off the scheme and inflated margins which is killing actual product sales. So now they risk killing their markup to spur retail. This company has not stopped shooting themselves in the foot so much as have merely paused to reload.