THE FIRST DIRECT SALES AND NETWORK MARKETING COMPANIES TO OFFER CANNABIS PRODUCTS. Through The Hemp Network and then Kannaway™, Medical Marijuana, Inc. was the first company to sell Direct selling companies will sell $300 million worth of cannabidiol-related products in 2018. The CBD market has exploded over the past year. Products can now be found on shelves of many different distribution channels, but one particular channel has been gaining significant traction.
THE FIRST DIRECT SALES AND NETWORK MARKETING COMPANIES TO OFFER CANNABIS PRODUCTS.
Through The Hemp Network and then Kannaway™, Medical Marijuana, Inc. was the first company to sell cannabis-based products through both direct sales and network marketing companies. Medical Marijuana, Inc. made the choice to invest in network marketing and direct sales through Kannaway™ and the Hemp Network to take advantage of the network effects of sharing products and information, including the benefits of hemp-based cannabinoids.
In 2010, the Hemp Network became the first network marketing company to provide customers with hemp textile products under a direct sales platform. Tapping into an existing network of hemp advocates and business associates to promote hemp as a wellness product, the Hemp Network spread awareness of CBD hemp oil products among potential customers.
WE ARE PROUD TO GIVE PEOPLE IN THE U.S. AND AROUND THE GLOBE AN OPPORTUNITY TO GROW THEIR OWN HEALTH FOCUSED HEMP BUSINESSES.
The Hemp Network provided the first marketing vehicle for global distribution of hemp products, helping Medical Marijuana, Inc. expand its market share for CBD hemp oil. Then in 2014, Kannaway™ was launched as a network marketing company to educate thousands about the benefits of cannabinoids. The company has successfully distributed cannabis product lines including CBD vaporizers from HempVAP®, a skincare line from Cannabis Beauty Defined®, and Rev!ve® products, through an experienced team of network representatives.
Kannaway’s CBD hemp oil products were also the first cannabis based products introduced to Puerto Rico when the company launched on the island. Through a series of education and press events, Kannaway™ was able to excite a dialog across the island on the benefits of CBD hemp oil and cannabis. Just 233 days after Kannaway™’s launch, the governor of Puerto Rico announced his intentions to legalize medical marijuana in the territory. The effort put into Puerto Rico, the U.S., and nations around the world earned Kannaway™ a nod as Start-up of the year in 2014 from the Academy of Multi-level Marketing.
Under the leadership of new CEO Blake Schroeder, Kannaway™ is looking to pursue an expanded presence of their business model both domestically and internationally. Medical Marijuana, Inc. has made it our mission for hemp-based cannabinoids to become a staple in modern diets. With so much potential within this growing industry, we are proud to give people in the U.S. and around the globe an opportunity to grow their own health-focused canna-businesses under the Kannaway™ model.
Shop Kannaway™’s brands in our store, or visit the Kannaway™ website to learn how to become a brand ambassador.
Direct Selling Companies Lead Global Market in Sales of Cannabidiol (CBD) Products
PLANO, Texas–( BUSINESS WIRE )–Direct selling companies will sell $300 million worth of cannabidiol-related products in 2018, making direct selling the largest channel of distribution for the rapidly growing CBD product sector.
“Interest in cannabidiol, or CBD, is rapidly transforming the consumer product landscape,” says Todd Eliason, publisher and editor in chief of Direct Selling News (DSN), which conducted the research. “The trends also indicate that global direct selling sales of CBD products could exceed $1 billion by 2020. Established companies as well as a growing number of startups have begun announcing their entry into the market.”
CBD is one of the hundreds of cannabinoids found in the Cannabis sativa plant. The ingredient is being credited with a growing list of health benefits and, as a result, companies from virtually every consumable category, including beverages, dietary supplements, skin care and pet products, are actively exploring business in the market.
In its most recent study, Direct Selling News has identified at least 25 direct selling companies that already have entered the CBD space. These companies, sometimes referred to as network marketing companies, all opt to use a network of independent salespeople to sell their products, often on a person-to-person basis, rather than a more traditional retail channel of distribution. They include, but are not limited to: Kannaway, the direct selling arm of California-based Medical Marijuana Inc. (OTC: MJNA); and California-based Youngevity International (NASDAQ: YGYI), which is currently ranked at No. 89 on the DSN Global 100 list of the world’s largest direct selling companies.
“With an ingredient that is as easily misunderstood as CBD, the direct selling channel may prove to be the perfect fit for companies seeking channels of distribution,” says Eliason. “Direct sellers and network marketers are known for their one-on-one training and education methods that can meet the consumer on a personal level even if it’s the first time they’ve heard of CBD oil. That personal connection and ability to address specific misconceptions has the potential to create a loyal customer base.”
Direct Selling News will be exploring the many factors related to direct selling companies’ leading role in the CBD market in an upcoming edition of the magazine as well as at a Nov. 6 CBD Symposium it is co-hosting with parent company SUCCESS Partners at its Plano, Texas headquarters.
About Direct Selling News
Direct Selling News (DSN) is the oldest and most respected trade publication devoted exclusively to serving executives of companies that distribute their products and services through the direct selling channel. Its annual research projects include the Global 100 list of the world’s largest direct selling companies and the Best Places to Work in Direct Selling.
CBD, Direct Sales, & Multi-Level-Marketing
The ongoing COVID-19 pandemic has caused extra stress for consumers, and despite the expense, many did not give up their CBD use! However, with retail outlets closing and new deals online to attract consumers, the CBD industry experienced shifts in purchasing channels.
One purchasing channel that continues to see sales while flying under the radar is direct selling. In 2020, 13% of CBD consumers reported purchasing from direct sellers. This channel is also referred to as “multi-level-marketing,” MLMs, or network marketing.
Growth Drivers for CBD Direct Sales
Direct selling CBD companies effectively harness the power of word-of-mouth marketing. It can be a powerful tool in an industry limited in its formal and social media advertising. Brands contract “affiliates” or “brand ambassadors” to distribute or advertise products and earn their own commissions.
The CBD phenomenon started almost exclusively due to word-of-mouth marketing, making this channel an excellent fit for direct selling. In 2020, 38% of CBD consumers report they first learned about CBD through friends or family. By contracting an army of “brand ambassadors” to promote and distribute, this is one of the most effective advertising methods available to this regulated industry.
Examples of CBD Direct Sellers
One example of a successful CBD MLM is Medical Marijuana Inc. The company is one of today’s largest hemp CBD manufacturers. It receives most of its revenues through its MLM arm, Kannaway . The company has also spread to Latin America. In this region, direct sales is a very strong channel and shows strong potential in the longer term.
Other companies, such as Hempworx , Koi CBD , and Prime My Body have experienced vast growth using the MLM model as well.
These companies offer a wide range of products. We see traditional tinctures that first dominated the CBD market, as well as beauty products with added functional ingredients like collagen. The successes of these companies should be noted by mainstream direct selling beauty companies – like Mary Kay and Avon. Once the US Food and Drug Administration makes its final ruling on hemp, these larger direct sellers could jump in CBD as a functional ingredient.
However, direct selling may lose steam as CBD products become more accessible, convenient, and competitively priced. The influx of digital marketing campaigns from big CBD brands has changed the dynamic of buying CBD online, making the future of direct selling unclear.