Company Name: Nikken
Costs: Around $50
What Is It
The company is yet another health and wellness MLM, although in this case it also has a focus on its own ‘unique’ technology, including the use of magnets. Oh boy. Sounds like fun.
I’ve very unimpressed by the products that Nikken has to offer. Some of them are downright suspicious and there is a lot of mixed reviews about the products online. This makes it a concerning MLM to get involved in. The company also isn’t very clear about its compensation plan, but the information that was available suggests that the plan is just as complex as most other MLMs.
Nikken offers an interesting range of products. Most of these are based around the themes of Rest & Relaxation, Environment and Nutrition & Skincare. Many of the products focus on the idea of magnets and their potential benefits for health. For example, one product is a necklace with magnetic inserts that sells off the site for $135.
The idea that magnets offer health benefits is certainly not new, but it still seems to be doing the rounds. With this company, they never say specifically say that the magnets contribute to health, but it is certainly implied. I mean the company even lists the necklace under the Rest & Relaxation category, which makes no sense for a simple necklace.
It isn’t too surprising that the company chooses not to come out and make the claim, given there have been many lawsuits against companies promoting magnets for health.
Magnet therapy is a suspicious approach. It’s one of those things that people often want to work so much that they convince themselves that it works. For example, this is a review from a customer of the company (although she could well be a distributor too).
Here’s my problem. How would you know? How would you know that the magnets improved circulation or that the immunity capsules actually kept you healthy? As humans, we have a very strong tendency to see exactly what we want to see and that’s especially true for things like magnets that are overhyped.
Likewise, here is another review:
In this case, half of her point is that she’s never had problems. Well… how many problems can you have with magnet products or that sort of thing? Most of the products that Nikken sells probably wouldn’t cause any problems at all – but they also probably wouldn’t do anything.
Even the non-magnetic products don’t offer a lot in the way of evidence about their effectiveness. For example, products in the range below boast ‘Far-Infrared Technology’, but don’t offer much information about what this is (beyond playing a role in temperature regulation) or whether the approach is any better than normal wraps.
Reviews for their products are mixed. For example, on Amazon the company’s PiMag Waterfall water system scored an average of 3.2 out of 5 stars, across 22 different reviews.
What’s even more interesting is the distribution. This distribution of reviews is very common for MLM products. Often you will see a significant amount of 5-star reviews. These tend to come from distributors or from people absolutely sold on the idea of the company. At the same time, you see a decent number of 1-star reviews. These tend to come from the average consumer and people who are less biased about the company.
As multiple reviewers for the product point out, there is no real evidence that the filter actually works and the company doesn’t even offer much information about what the product filters out. Additionally, there are many different companies that offer similar products, with most of the non-MLM companies offering far more information about what their product is and how it works.
The Products Overall
I’ve only looked in depth at a few of Nikken’s products here, and I’m sure that some of them are better than others. Nevertheless, the majority of the products appear over-hyped and over-priced, with little real evidence that they deliver on their promises.
As with any MLM, I’d recommend being very careful about any product reviews you read as well as anything that distributors from the company claim. Distributors make money from selling so they will often hype up the claims. Other times, they might genuinely believe that the company and its products are fantastic, but that still doesn’t mean they actually are.
The basic concept of the opportunity is that you can earn money promoting the products from the company and recruiting others to do the same. Nikken doesn’t actually provide a whole lot of information about the opportunity on the site.
It does offer the standard hype about what you can earn, but little information beyond that. Even signing up for the company is supposed to be done through a sponsor, rather than through the site itself.
Nevertheless, some information about the compensation plan can be found online with a bit of digging. First of all, the company lets members earn money through selling products and through recruitment. However, as is commonly the case, the bulk of the bonuses come from recruiting others.
In particular, most of the ranks that the company offers require you to recruit others. As you go up these ranks, the amount you can earn in bonuses can increase dramatically. At the same time, the requirements also increase.
You can see this in the white text that gets progressively longer as you go up the ranks. In general, progressing through the ranks involves making a certain number of sales within your business (which consists of you, the people you recruit and so on down the line).
In the higher ranks, you also have to get people you recruit up to a certain level. For example, to hit the Silver rank, you have to have recruited three people who are at the Senior level. To get to the Gold rank, you have to have three people at the Silver rank.
You can see how complicated this can get from this diagram, which is attempting to explain what is needed to hit the Royal Diamond rank.
Certainly, there is potential to make money. If you really did have a business with lots of high rank people who were making a lot of sales, then yes, you would probably be making a lot of money. And sure, there are some people who manage this.
The problem is that most don’t.
It is complicated and challenging to rise that far in a MLM. Just for starters, you have to find and recruit people who can be successful at the business and then you have to support them to make sure that they actually are successful.
This is also a business model that you always have to work at. There is always the risk that members of your group might drop in rank or drop out of the program altogether. Likewise, you don’t really have control of how much you earn, because it depends on how well the people you recruited do.
Overall, this results in a type of business that is hard to succeed at and even harder to remain successful at.
Direct Marketing And Success
One of the key aspects of this type of company is direct marketing, where you are promoting products in person. Often this involves hosting parties and promoting the products at every opportunity, regardless of whether the people you are talking to are actually interested in what you are promoting.
This approach to marketing made a lot of sense when the only other options were buying things in stores or in mail order catalogues. Nowadays, that’s not the case at all. Instead, people have so many different ways of finding products and figuring out what products are actually worth their time and money.
More than ever before, people are turning to the internet and to websites to figure out what to buy and where to buy it from. This puts companies like Nikken at a disadvantage, because they don’t teach members how to sell online. In fact, they don’t even give members much training in direct sales at all.
So, you end up going into the market as a distributor for the company, with no idea about how to actually get sales beyond the basic concept of constantly pushing for sales. In an environment with so much competition having that little training puts distributors at a pretty major disadvantage.
These issues are part of the reason that it is so challenging to make money with the company. Most people end up pushing products at friends, family and acquaintances. Some of these people will end up buying, but others won’t. To be successful, you have to work on finding new people to promote to and work on helping those you recruit to be successful. It quickly starts being a lot of legwork.
Even if you have a fantastic social network, selling products from a MLM is never easy. In the case of Nikken it is even trickier because many of the products are over-priced and hyped.
MLM VS Affiliate Marketing
MLMs are well-known for their complexity. In most cases, the focus is almost entirely on recruitment, which certainly sounds easier than it actually is. While MLMs may have worked well back in the day, as the internet has expanded they simply aren’t an effective approach for making money.
Why jump through hoops and pay money to try and earn money through a company like Nikken where you are always at the disadvantage?
Instead, why not use the internet as a tool to make money online by building your own business. Through affiliate marketing you really can do this and you end up with a business that you have complete control over. It is a more effective solution, and one that can be expanded over time.
Whatever type of product you decide to promote, it's VITAL that you generate leads to grow your business.
But let's face it, "parties" are boring, and no one likes the annoying Facebook friend who's always promoting a biz-op.
That's why I use this lead generation system. Learn how to generate leads outside of your circle of friends and family and discover what it means to truly own your own business, rather than just be a cheerleader for one network marketing company.