There are other, unexpected, costs. Green Roads lost four banks when their risk-management teams decided that Green Roads wasn't a business they wanted to be supporting. The company's Instagram account has likewise been shut down four times, because of legal restrictions on marketing CBD products. Instead of paying standard credit card processing fees of less than 3 percent, Green Roads pays closer to 6 percent.
What is clear, though, is the DEA’s classification of all cannabis extracts as Schedule 1 controlled substances. Even as more states “legalize it,” all forms of cannabis are still illegal under federal law. And that’s a problem for HempWorx distributors who have to move product. As the DEA spokeswoman told the Port City Daily news site in North Carolina, where marijuana is illegal but decriminalized: “The plant, for human consumption, is illegal, bottom line. If you ship it — then that’s interstate commerce, that’s trafficking, and so that’s a problem.”
As one might imagine, this kind of commission plan can lead some Hempworx affiliates to engage in unscrupulous behavior to make sales and earn greater rewards. If you’re on Facebook, you may have seen some of this bad behavior yourself. Examples of bad behavior range from aggressive, pushy sales tactics to making outright untrue statements. We have documented examples of affiliates telling people that Hempworx doesn’t contain THC so can’t lead to a positive drug test and that Hempworx can be legally shipped to Canada. Those claims are not true. There are also reports of Hempworx affiliates pushing people into enrolling in the auto-ship option. With auto-ship, products are automatically shipped out each month to the consumer – something that earns affiliates even greater rewards.
Many people rightly ask, “Is the HempWorx Affiliate Program Legit?” Fair question because there are so many scams out there when it comes to business opportunities. But who can give you an honest review you can trust? I saw a post in a reddit forum stating, “HempWorx is a scam because it is MLM.” This person automatically called it a scam solely because it’s an MLM program. Is that a fair judgement?
Josh Zwagil appears to cross both these lines when he claims in an “opportunity” video that those “looking to go all in and build a full-time income” can do so with his MLM, without disclosing what the company’s Policies and Procedures make abundantly clear — which is that most distributors spend more on products than they earn in the compensation plan (See next section). Top HempWorx distributor Judy Stallings, who has been introduced at conventions as the “first-ever 250K affiliate,” has also used inappropriate income claims to bring people into the MLM, writing on her Facebook page last December:
Although the HempWorx ‘About Us’ page is filled with excellent information on the history of CBD, there is unfortunately little data about the actual organization itself. We did learn, however, that they use “special” supercritical technology that extracts over 400 phytonutrients from the raw hemp material, and that they don’t use any harmful solvents or heat, which is of course a good thing.