Income disclosure statements can help you to evaluate the Hempworx business opportunity. An income disclosure analysis is just one piece of a big puzzle.
Costs and Expenses
The My Daily Choice (aka Hempworx) disclosure statement gives a list of expected expenses and the results of a survey. This is useful in looking at what participants look at in terms of profit/loss.
The expenses an Affiliate can be several hundred or thousand dollars annually. You should factor in estimated expenses when projecting potential profits. Such operating expenses could include advertising and promotional expenses, product samples, training, travel, telephone and Internet costs, business equipment, and miscellaneous expenses. Based on a survey conducted by the company in 2018, the average annual expenses an affiliate incurred were $1,608.My Daily Choice 2018 Income Disclosure
By the company’s own disclosures this leaves a big difference between the average income and the average expenses. Average annual income for all Affiliates was $580.08 and the medium income was $0. Even using the averages, this results in a loss of $1,028.92
What does average mean?
The table in the income disclosure shows the maximum, minimum, and average monthly and annual income. However, for each rank, the difference between minimum and maximum is big. Builders earn from $0.40 to more than $3k monthly, with an average of $10.22. There is no information like percentiles, and how many affiliates this data represents. It is impossible to know how many affiliates receive the ‘average’ amount.
To better understand what these numbers mean, let’s look at one possibility. For example, if there are only 2 distributors and one is making the maximum ($3k) and one is making the minimum ($0.40) the “average” would be about $1.5k. In order to get to the average (about $10) with only 1 person making $3k there would need to be ~310 people earning $0.40. This means a lot of people are earning less than average commissions.
The wide ranges make the averages pretty misleading. However, these ranges also help us understand most people are making a lot less than the average.
Who is making money?
98.5% of affiliates are ranks which make on average less than $100 per month. This means these affiliates have average annual earnings significantly less than the average expenses MyDailyChoice (aka Hempworx) reported in the disclosures ($1608). As a result, these affiliates are spending more than they are making. Finally, most affiliates get a lot less. Buidlers and Directors earn less than $30 per month on average. .
A significant group of affiliates get no income at all and that’s not an average. MyDailyChoice reports that more than 24 thousand affiliates made “no income at all” during the year the report covers.
These disclosures include a lot of information about the number of affiliates but the statistics do not include affiliates not eligible to earn downline commissions. This means the statistics are reported for affiliates who have achieved a business volume requirement. It doesn’t say how many people don’t reach this level of success.
Annual versus monthly averages
We discovered that all of the annual averages are 12x the monthly averages. The annual number should not be the monthly number times twelve. People will change ranks throughout the year, leave, and join the program. You can even see this in the “time to each rank” row. This means either the annual average earnings or the monthly average earnings is calculated incorrectly and is not accurate. As a result, it’s not possible to determine which is inaccurate with the data given.
It’s helpful that MyDailyChoice includes information about survey information about average expenses. More accurate information would be based on actual expenses rather than affiliates estimating and saying their expenses in a survey. However, this information helps us to understand that even with these estimates it is very difficult to sell enough with MyDailyChoice (aka Hempworx) to pay off expenses and earn a profit. On average, very few affiliates are able to earn profits. The disclosures also indicate it takes months or even years to reach the ranks where profit is more likely. Because of this, there may be many unprofitable months or even years for even the most successful affiliates.
Due to the expenses and small percentage of affiliates who make significant earnings, it seems that MyDailyChoice or Hempworx is not a great business opportunity for most people.
OnTheLevel is not affiliated with MyDailyChoice. Please contact us with feedback or corrections any time! We’d love to hear from you.
Sources: https://www.mydailychoice.com/htdocs/MDC_IDS_2018.pdf https://mydailychoice.com/htdocs/CompensationPlan.pdf https://www.mydailychoice.com/corp/opportunity