My Daily Choice – Executive Summary

Below I go into detail regarding the analysis of My Daily Choice/Hempworx, a quick note:  In my reviews, I will lead with a general summary of findings. I want to make sure that people that click on the review see the key points. I will follow up with a 1 page summary of key details which will be posted in a new section of the website.

In the below chart, active affiliates are those that earned income during the reporting period.  There were 57,588 active affiliates. There were 72,118 affiliates with no earnings.

• The Median income of all Affiliates is $0
• 74.2% of Affiliates do not continue after their first year.
• A minimum of 90 PV (about $150) is required per month to maintain Director status and above.
• A minimum of 40 PV is required to maintain Builder status. Affiliates are encouraged to place auto ship orders to meet the volume requirements.
  

About My Daily Choice

My Daily Choice is a Multi-Level Marketing Company based in Las Vegas Nevada. MDC was founded in November of 2014. They primarily sell Hemp based products.

In November of 2014, Josh launched MyDailyChoice and, impressed with her networking skills, asked Jenna if she’d be willing to join as one of his first Affiliates. Jenna was on a mission and had a lot to prove so she dove in, head first, to build momentum the only way she knew how – through social media. She put her talents to work on the first product line, just three nutritional sprays at that time. Even before MyDailyChoice’s most popular products and sophisticated marketing tools were in place, Jenna earned 3600.00 in her first week.

Annual Revenue (source: Businessforhome.org)

2015 Revenue $1 Million
2016 Revenue $5 Million
2017 Revenue $9 Million
2018 Revenue $100 Million
2019 Revenue $170 Million

Marketing/Recruiting

 I originally landed on My Daily Choice through a twitter link from an affiliate. This particular user is a prolific tweeter. Nearly all their tweets direct to his website which invites you to join his MLM opportunity. I clicked on that, and it took me to MyDailyChoice.com where there are a series of 4 videos intended for potential recruits.The first video starts out as one might expect.

 

Shortly after clicking on the link, the automated emails started coming, I’ve received approximately 20 emails in 9 days.

 

• Promoters play on your emotions or use high-pressure sales tactics, maybe saying you’ll lose the opportunity if you don’t act now and discouraging you from taking time to study the company. Leave by the nearest exit. Any company that tries to pressure you to join is one to avoid. – FTC

The clear emphasis is on recruiting others. The below clip is just one example.

 

 

This is just with four getting four getting four. As you build a bigger organization, these weekly jumpstarts add up very, very quickly.

In addition to emphasizing recruiting over selling, the examples are not reasonably obtainable to a new recruit. Josh’s  example showed a weekly Jump Start Bonus of almost $3500.  Only about .02% of Affiliates earn total income in that range. This is only one aspect of the compensation. The example Josh shows is not realistic.

Affiliate Requirements

• Distributors buy more products than they want to use or can resell, just to stay active in the company or to qualify for bonuses or other rewards. If you see this happening, keep your money. – FTC

To maintain Executive level, affiliates have to purchase or sell 90 Personal Volume. To maintain at the other commission eligible levels, affiliates have to purchase (or sell).

Josh suggests that everyone purchase the director pack and put it on auto ship. The Hempworx Director packs cost between $100 and $199.

We do not know how much volume is sold to non affiliates, but we can estimate that it is a large percentage of total sales. From the Income Disclosure Statement, we do know that during the last reporting period, 72000 affiliates earned zero income.  The implication of this is that while they had to make personal purchases in order to maintain their status.

The company simplicity is encouraging making purchases to maintain status.

 

Income Disclosure Statement Review (Jan 1 2018 through Dec 1 2019)

Both the MLM Income Disclosure and Compensation Plans are available  on MyDailyChoice.com and on MLM Investigator,

 

Key Takeaways from The MDC Income Disclosure

• The median annual income for all Affiliates in the reporting period was $0
• 56,550 out of 57,588 (98.2%) active affiliates earned revenues averaging $43.54 per month. The company reports that the average affiliate’s expenses are $1608 annually, or $134 per month.
  1.8% of active affiliates earned 68.8% of the income paid out by My Daily Choice.
  Out of approximately 84,613 Affiliates that signed up as U.S. Affiliates during the time period, approximately 21,866 were still active at the end of the year.

Based on their own numbers, it can reasonably be estimated that over 98% of  active affiliates are losing money. Accounting for inactive affiliates, the percentage that are losing money is even higher. If people are not earning commissions and bonuses, they are paying for product out of their pocket to maintain their status.

Affiliate Trends

Within MDC (and multi-level marketing as a whole) there is very high attrition. In the prior IDS MDC reported that 70.3% of affiliates do not continue after their first year. In the current IDS, they report that 74.2% of Affiliates do not continue after their first year.

• 	18 Months	23 Months	Variance
  My Daily Choice Affiliates	Jan 2017 – Jun 2018	Jan 2018 – Nov 2019
  Active Affiliates	95985	57588	(38397)
  Total Affiliates with No Income	24941	72118	47177
  Total	120926	129706	8780

There were 38,000 less active Affiliates reported during the most recent period, but 47,000 more affiliates with no income.  Significantly more affiliates earned nothing in the most recent reporting period than in the prior report.

FTC.gov

I am not claiming that MDC is operating as a pyramid scheme. I will be placing the FTC warning signs at the bottom of each review so that a potential recruit and others can make their own determinations as to whether the warning signs apply. My sole purpose is to look at each company individually and present the facts relating to their business. I recommend that the reader download the documents provided on the MLM Documents page of this site or on MyDailyChoice.com and evaluate the business in more detail.

https://www.consumer.ftc.gov/articles/0065-multi-level-marketing-businesses-and-pyramid-schemes

Here are some warning signs of a pyramid scheme:

• Promoters make extravagant promises about your earning potential. Stop. Such promises are false.
•  Promoters emphasize recruiting new distributors for your sales network as the real way to make money. Walk away. In a legitimate MLM program, you should be able to make money just by selling the product.
• Promoters play on your emotions or use high-pressure sales tactics, maybe saying you’ll lose the opportunity if you don’t act now and discouraging you from taking time to study the company. Leave by the nearest exit. Any company that tries to pressure you to join is one to avoid.
• Distributors buy more products than they want to use or can resell, just to stay active in the company or to qualify for bonuses or other rewards. If you see this happening, keep your money.

Despite the objections of many – a pyramid scheme can offer actual products. Those products are usually overpriced and selling products is secondary to recruiting your ‘downline’

I will not make claims that any specific MLM is operating as a pyramid scheme. I will be placing the FTC warning signs below each review so that a would be recruit and others can make their own determinations. My goal is to look at each company individual and present the facts relating to those companies. An MLM does not have to have been found to be a pyramid scheme in order to be a poor opportunity.

 

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About MLM Investigation

I decided to start MLM Investigation to help shine a critical light on the industry. There are many others that are doing a fantastic job telling their stories and speaking out against MLMs. I will feature others’ work as well and point readers to their content.

I plan to use this space to further the cause and to educate people about the true nature and the true numbers behind The MLM Industry.

I am collecting updated Income disclosures, commission structures, and recruiting materials, and will have these available on the site.

I plan to create single page executive summaries of all major MLMs to serve as a guide to share with those considering joining an MLM organization.