Is Nikken a Scam or Can You Make a Fortune? MUST READ
Is Nikken a scam MLM or a legit business opportunity? I’ve seen a lot of online chatter about this long running network marketing company, so I was wondering what it’s like. It’s another one that operates in the saturated health and wellness niche, but are the products any good, and does the business opportunity offer anything special?
Read on to find out the truth about the Nikken MLM scheme….
Company Name: Nikken
Founder: Isamu Masuda
Price To Join: $99 To Start
My Rating: 4/10
~ Nikken Reviews ~
Intro
No matter where you look these days there seems to be a network marketing company peddling its products and recruiting, especially in the mega popular health and wellness niche.
For those people looking for network marketing opportunities, you really are spoilt for choice, but the obvious downside is there is loads of competition as well; particularly in this niche.
Nikken came to my attention because of all the online chatter I saw about it. No one approached me about joining or anything, but I thought I’d take a good look at it and write a review detailing what I discovered.
I write a lot of reviews on this website about make money schemes and training platforms. I do this so we can all make good decisions about what to join and what to avoid.
I love the internet because of all the opportunities it’s opened up for making money, especially online from home. With global access we can all potentially make money day and night, every day of the year.
But because so many people are going online looking for ways to make some cash, con artists are targeting these people with dodgy schemes to make themselves rich, so we always have to stay alert.
It’s awesome that you found your way to my review. It means you’re one of the smart ones, and you do your homework before making the decision to join anything.
Let’s now see how Nikken measures up and whether it’s worth jumping on board with or not.
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What Is Nikken About?
This network marketing company has been going strong since way back in 1975, when it was founded in Japan by Isamu Masuda. The MLM company moved offshore in 1988 and established a new home in California, USA. Since then Nikken has spread across the globe and is available in some 40 countries these days.
Essentially this company operates in the mega saturated market of health and wellness products, and sells and distributes these products via the multi level marketing (MLM) method.
The founder of the company based the company’s mission and product line on what he called “the 5 pillars of health”, which are:
- Body
- Finances
- Family
- Society
- Mind
Combining their products with the business opportunity, Masuda and his company have been helping people across the globe live better lives by following these 5 pillars of health.
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Nikken Products
As this review is more about whether you can make money with the Nikken business deal, we’ll just have a brief look at the products.
A big focus of Nikken is using magnetic technology and therapy in their products to promote better health and improved sleep.
Magnetic technology has been used in one form or another for many years and has often been said to help with joint and muscle pain, as well as balancing electromagnetic pulses within the body to hasten healing and even improve a person’s mood.
Let’s see what’s in the product line up.
Their flagship products all contain magnets, and these are:
- Nikken Magnetic Insoles – Designed to help with sore feet as well as promote better overall health
- Milana Set – Necklace and earrings made out of crystals and also incorporating magnetic technology
- Kalki Watch – This isn’t just an ordinary watch. Yep, it does tell you the time, but it also contains those all important Nikken magnets as well
- KenkoTouch – This is a magnetic massage machine
There are also loads of other magnetic jewellery products to choose from.
Now while the company started out focused on magnets, they’ve since expanded their product range to include all sorts of health supplements, clothing and various other products as well.
There are far too many to list here, so take a look at the full range on the Nikken website.
Does Magnetic Technology Really Work?
As I said earlier, magnetic technology being used for improved health in a number of forms has been around for a long, long time. However, there really is no hard and fast data that proves or disproves whether magnets really do have any health benefits or not.
In the past I’ve tried magnetic pillow cases and mattress protector to help with neck and back pain when sleeping, but I can’t say I noticed any obvious improvement from using them.
It’s a form of therapy that’s highly debateable. Some people swear by magnets and their health benefits while others, myself included, have used them with no obvious benefits noted.
Why Are MLM Products Usually So Expensive?
As is the case with most MLM deals, the Nikken products are priced quite high for what they are, and there’s a very good reason why MLM companies almost always have much higher prices than their competitors.
It’s because of the way they compensate their workforce, despite their denials about this.
MLM is always about recruiting, building sales teams and earning commissions from all those recruits through your downline. Because of this structure, when a sale is made down the line, there are all these commissions to pay out all the way up to the very top, which includes the company itself.
In order to cover all these commissions and for the company to still make some money, products have to be priced at a point where the company is still profitable.
No one’s going to tell you this though, because it just sounds like customers are getting ripped off on price so a whole bunch of people can get paid, which is basically the truth of the matter.
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The Nikken Compensation Plan
MLM is always based on two main things when it comes to being able to earn some money, and they are:
- Direct sales of the company’s products
- Recruiting new members into the company and building downlines
Most people start out trying to sell the products to everyone they know. Now while this is okay, and Nikken pay a reasonable 20% commission on retail sales, that’s not really where the money is made.
That comes with recruiting.
Recruiting consistently and building big sales teams is the only true way to get ahead in any MLM scheme. To reach the bigger money levels, you first have to climb the company ranks, and the only way that can be achieved is through recruitment.
Ranks are achieved through the size of your team, as well as the team sales volume. It’s the only way to do it.
There is a total of 7 ranks you can shoot for with Nikken and they are:
- Direct
- Executive
- Silver
- Gold
- Platinum
- Diamond
- Royal Diamond
Apart from buying a starter kit to become a part of the business, you also need to purchase a minimum of 100 PV in product every month, which equals anywhere between $100-$150. Otherwise you forfeit your right to commissions and bonuses.
You can view the compensation plan in the screenshot below.
It’s never easy to understand and explain how some of these MLM compensation structures work, so to make things easier I’ve embedded the official Nikken explainer video below.
Nikken Income Disclosure Statement
By law all MLM companies are supposed to include access to their latest income disclosure statement on their website. I couldn’t find one on the Nikken site, which is unfortunate.
I usually like to include some details from these statements so you have an idea of how much money people are already earning on average.
Generally, though, the average yearly earnings for a distributor in most MLM scheme is usually less than $500, and that’s before expenses are taken into account. It’s usually the top 1% of members or less who even earn what would be considered a liveable income.
The MLM Business Opportunity and Why I Don’t Like It
Although I’ve gotten involved in a few MLM schemes in the past, I’d never bother these days. I think they’re a really poor deal for the distributor and I explain why in this section.
The whole reason why so many businesses choose the network marketing method is because of all the advantages it gives the company. But for every advantage the company gets, that’s one benefit taken away from the distributors.
This is how the network marketing scheme works.
Instead of going the retail route where the company has to fork out oodles of cash to pay wages and rent and so on, they amass these great armies of workers who are basically all fired up to work for free. No wages, no retainer, not even expenses covered. These unpaid workers all run around madly trying to sell products and recruit, all for the promise of commissions and sometimes bonuses.
The company doesn’t even have to devote too much of a budget towards advertising, because again it’s the unpaid distributors who are promoting the company and its products. The distributors buy and sell, do marketing and pay for all their own expenses incurred in the process.
In fact, distributors usually have to pay the company for the privilege of working for them for free!
Distributors are unpaid sales reps, despite what MLM companies tell you.
The deal the distributors receive totally sucks big time in my opinion.
The way MLM is structured, distributors are forced to become more than just sellers. They also have to be master recruiters as well, otherwise they can’t climb the ranks and even get a sniff of making decent money. Therefore, the distributors, at their own expense, also expand and grow the company through this dire need to recruit new members.
The company also makes even more money out of this, because each new member has to pay a joining fee.
MLM companies like Nikken are getting a fantastic deal, but it’s the complete opposite for the distributors. With so many obvious advantages though, it’s little wonder the world is now flooded with network marketing schemes.
When you go along to one of their official recruitment meetings, they’ll really hype up the kind of lifestyle you can lead if you join their business opportunity. They’ll dazzle you with success stories and imagery of wealth and opulence.
There’s nothing wrong with all of this and wanting to achieve this, but the problem is, it’s virtually impossible to obtain this kind of life by being a MLM distributor. Only about one half of one percent of all people involved in all MLM schemes all around the world ever make it to this level.
They will also tell you that you’ll have your own business. No you won’t. The company owns everything except the products you buy, and you can never sell your MLM distributorship.
I think they only tell people it’ll be their own business to justify making the distributors pay all their own work expenses, which is what distributors really are doing. Distributors just work for the company, but don’t get paid and don’t get any expenses covered.
To really top things off, most network marketing companies will force their workers to buy a certain amount of product every month to remain eligible to earn commissions and bonuses occasionally. In this way the distributors also become the company’s main customers.
Nikken do it. You need to purchase a minimum of 100 PV per month, which is over $100 worth. If you fail in this you forfeit your earnings.
See what I mean about these schemes forcing their sellers to also be their most regular buyers?
Again, this all totally sucks and is seriously one of the worst deals going around if you want to make real money.
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Is Nikken An Illegal Pyramid Scheme?
The MLM payment structure does work on a pyramid basis, and because of this these companies are often accused of being illegal operations.
This is actually not so and not a fair appraisal.
Illegal pyramid schemes are naked pyramid operations, meaning they have no products to sell and all the income is derived from recruiting new members into the system. It’s the investment from new members that pays the company’s profits, as well as the promised commissions for current members.
Nikken has many products that are sold at a retail level, so there’s no way they can be a naked pyramid scheme or an illegal operation, despite still relying heavily on recruiting.
Target Market
I think MLM is really aimed at people looking to start a business, but don’t know what to do, or have a product or service to offer. MLM has all this set up and ready to go, and I think that’s what the real appeal is. New members can just buy a starter kit or whatever and get going.
Unfortunately, the premise of owning a business with MLM is all really a farce, because you don’t own or control a thing. Hell, most part-time jobs will earn you more money and with a lot less stress and work.
The hardest and most intensive part of MLM is the recruiting, and most people don’t realise just how difficult recruiting is.
What I Like
- The company has been around since 1975
- The price for getting started is more reasonable than some other MLM companies
- The company has a large selection of products
What I Don’t Like and Red Flags
- There is no income disclosure statement
- You have to order a minimum amount of product every month to remain eligible to earn
- There’s no scientific proof that magnet technology has any real health benefits
- You have to be a recruiting maniac to be successful with network marketing
- From my research, only about half a percent of all members make a sustainable income working with Nikken
- The MLM compensation deal is an atrocious one for the distributors
- The distributors do all the work for commissions only and also buy most of the company’s products
How Much Does Nikken Cost To Join?
It doesn’t cost as much to buy into Nikken as it does some of the other MLM schemes I’ve reviewed, but there is still an upfront cost of $99 (a one time fee), which enrols you and gets you the Business Success Suite, which is a starter kit.
You get a website included in this kit, which is just a Nikken replica website, but it gives you something to point people to for product sales and recruiting.
Nikken does enforce a monthly auto ship of products every month though, to remain eligible to earn with them. This shipment will cost you at least $100 or so each month.
Is Nikken a Scam Or Legit?
No, Nikken is not a scam whatsoever. The company has been going since 1975, so more than 4 decades. That in itself is actually pretty impressive.
As far as MLM businesses go it’s not bad, although the effectiveness of the magnetic products is very questionable.
The compensation plan is typical MLM, with all advantages going to the company, and retail commissions are modest at 20%.
Health and wellness is the most saturated niche there is, but at least Nikken have quite a variety of products, and the magnet technology thing is at least different to all the others and kind of interesting.
As far as an option for making decent money goes, I can’t really recommend it for the various reasons I’ve stated throughout this review.
This Is How I Make My Living Online!
I won’t even think of doing MLM these days, because the simple affiliate marketing business I have online is just so much better on every level. You don’t even really need any money to do affiliate marketing, unlike MLM.
In fact, the fastest way to find success with it is through some decent training, which you can also join for free.
With affiliate marketing there’s no selling products, or buying monthly product quotas. You don’t pay joining fees to be an affiliate. You also don’t have to recruit anyone, and you don’t even have to leave your house if you don’t want to.
You don’t have to deal with any of that MLM stuff.
Whether you want to do it on the side, replace your fulltime income with it, or even aim for something way beyond that, it’s all possible because there are no restrictions on how much you can earn.
You also naturally create a number of income streams, with much of that income being passive, the best kind.
This gives you both more financial security, as well as giving you lifestyle freedom that you don’t get when working a regular job.
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