| Nikken MLM is based in Irvine, California, and offers various health-related products such as air filters, aromatherapy, cooking supplies, make-up/cosmetics, magnetic jewelry, nutritional supplements, personal and skincare, water treatment systems, weight loss systems, and a variety of other products. The company was founded in 1975 by Isamu Masuda who claims to have built his business on the topics of healthy body, healthy mind, healthy family, healthy society, and healthy finances. The business started small to fill a need for relaxation and energizing. It started out on a mission to cure sore feet, and the fatigue which impacts the whole body. He works with a group of MLM experts such as Tom Watanabe, Kurt Fulle, Douglas Braun and Larry Proffit.
Many MLM companies have suffered the effects of being deemed scams or frauds, due to their similarity to pyramid or Ponzi schemes which are illegal. And Nikken is one of them. While, contrary to Ponzi or pyramid schemes, MLM companies are legitimate business models that do create wealth for some, most who join them (sometimes as much as 97% make no money at all). This also contributes to a generally negative reputation.
But there is nothing illegal about MLM companies, or, in this case, the Nikken MLM. The reason that most people fail in these types of businesses are that they aren't skilled enough in marketing or lead generating, and whoever recruits them into the business does not tell them that they need to have these skills. While it may be easy to start out selling and recruiting family, friends, and other people that are close to you, it becomes a lot harder to get new customers and prospects for your business and this is necessary to keep it going.
The Nikken compensation plan is on the more complicated side, and called a stair-step-breakaway comp plan. Because this plan is confusing, it is, of course, also hard to explain to new representatives. But, in general, it means that when a distributor achieves a specified level, he or she then breaks away from his or her personal sponsor. From here on out, the original personal sponsor gets only a small percentage of what the sponsored distributor's group is selling. When compared with the rest of the industry, the comp plan is not bad, but it is more advantageous to recruiters than to product sellers. This makes it different from MLM companies that offer more commission on sales than on members.
The Nikken MLM has a very well-rounded product line, and a compensation plan that, while confusing and complicated to explain, is geared towards the member profiting. As with most MLMs, you'll need to get anywhere from 100 to 200 people on your team in order to earn a substantial check each month. This can occur quickly or build up gradually over months or even years. |