FitzPatrick will get no quarrel from the industry’s biggest fans. “We think that with the new administration you can forget any aggressive action vs. MLMs,” industry analyst and Herbalife shareholder Tim Ramey wrote in a note to clients in January. “When Betsy DeVos was named to the Trump Cabinet we took that as a very strong signal that the Trump administration had no real issue with the MLM world. … You don’t put Betsy DeVos in your cabinet and then go out and try to put [Herbalife] out of business. We are in a post-regulatory world.”
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The products produced by the California Vitamin Company were in such high demand that founder Carl Rehnborg began recruiting independent distributors to increase the number of salespeople. These independent distributors were instructed to find new distributors in their circles of friends, acquaintances, and customers. The representatives were paid on the sales of the distributors they personally recruited.
Cannabis sales have been illegal since the 1970 Controlled Substances Act was passed, with the only exceptions being the products made from the "mature stalk" and "sterilized seed" of the hemp plant, which could still be sold since they contained little to no psychoactive components. Even today, federal law has not changed its stance on cannabis. On the state level, however, things have changed dramatically. As of this writing, there are 30 states that have legalized the sale of cannabis in some form, whether that be medicinally or recreationally. Because federal law continues to outlaw the production and sales of cannabis aside from the CBD oil and hemp seed oil from hemp plants, it is illegal for states that have legalized cannabis to sell products across state borders.
Another common practice is "channel stuffing" - requiring distributors to buy large minimums of company product, ostensibly for retail sale or for "personal use," which serves to inflate sales numbers to give the appearance that an MLM is more sales-driven than it really is. However, the only support materials usually provided by their recruiter(s) are ones that promote the signing on of more new distributors. As a result, many a person out there has a closet full of Mary Kay cosmetics that they don't need, and can't sell. Type the name of any well-known MLM into eBay or Craigslist and you'll see evidence of what becomes of that "investment" of "just a few hundred dollars" made in order to achieve new wealth and prosperity in ten hours a week from home.

Think back to when you were recruited and consider if it was primarily as a customer, with just a mention of "income opportunity," or if the primary pitch was for the business opportunity. The ethical way to build a downline is to sign up people as customers first, and then if they like the product, they'll be drawn to becoming a rep. A hard sell on signing up as a rep right at the outset should send up a red flag for you.


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During the Mary Kay heyday in post-war America, consultants would invite their friends to in-home parties (think Tupperware) or go door-knocking to sell their products in their neighborhood (think Girl Scouts). However, in the digital age, the game has changed. Consultants who had previously run out of doors to knock on or neighbors to invite over had to put their goods in a car and drive to the next town for fresh clientele. Now they just form a group on Facebook, fire up a Live video stream, and sell to eager customers across the country, like their own miniature Home Shopping Network.
As a means of moving capital from the bottom of the pyramid to the top, MLMs are very effective; their chief promoters and high-level members aren't lying when they boast of the money they've made from the scheme. However, as a business model (i.e., a means of creating and capturing capital), MLMs are hilariously ineffective - like a toddler imagining what it's like to start a business. Here are just a few of the reasons why.

Inhibited liver function: The liver regulates the way different drugs are metabolized within the body; this process is known as hepatic drug metabolism. Higher-than-average doses of CBD oil can slow the hepatic drug metabolism process. As a result, users may not be able to process other drugs as quickly. This is particularly concerning for CBD oil users who also take prescription medications.


Cannabinoids are a class of compounds that interact with receptors throughout your body. CBD is just one of dozens of cannabinoids found in cannabis, including tetrahydrocannabinol (THC), which is the one responsible for marijuana’s famous high. Medical cannabis is technically any cannabis product used for medicinal purposes, and these can contain THC or CBD or both, said Nick Jikomes, a neuroscientist at Leafly, a website that provides information about legal cannabis. “A common mistake people make is to think that CBD is ‘the medical cannabinoid’ and THC is ‘the recreational cannabinoid.’” That’s inaccurate, he said, because THC is a potent anti-inflammatory and can be helpful for pain.
The way pyramid schemes are structured requires them to constantly recruit new people into the scheme. But this is unsustainable because at a certain point you run out of new recruits either because 1) you can no longer find anyone interested in joining, or 2) everyone on earth has become a member of the pyramid scheme. When you run out of new recruits, the pyramid collapses, leaving those at the bottom with a loss.
“The average direct seller makes about $13,000 a year,” says Amy Robinson, director of communications and media relations for the DSA. “The median income is about $2,400 a year. Now that’s an important distinction, because the average is skewed by the people who are making a lot of money compared to the people who are in it as a hobby. So when you look at the median—which of course means 50% make more, 50% make less—you’re only looking at about $2,400 a year.”
And now, onto the thorny issue of legality. The simple answer to the question is yes – if it is extracted from hemp. The 2014 Farm Bill established guidelines for growing hemp in the U.S. legally. This so-called  “industrial hemp” refers to both hemp and hemp products which come from cannabis plants with less than 0.3 percent THC and are grown by a state-licensed farmer.
Network marketing can be lucrative, but only a small percentage of people make serious money. Often referred to as multilevel marketing (MLM) or direct marketing, the idea of making money without any special skills or major investment with immediacy is appealing. And the promise of residual income fuels the desire to never wind up in your current financial position again if you've found yourself in a somewhat tough spot.
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