Is Enagic a pyramid scheme or an MLM?

Is Enagic's business model a pyramid scheme or an MLM?

PYRAMID SCHEME:

A pyramid scheme is an illegal investment scam where members recruit new members, who pay upfront costs to those who enrolled them. The new members then recruit newer members, with a portion of the enrolment fees going to their higher-ups. Participants only make money by recruiting other people. There is no service or product being sold.

WHY ENAGIC’S BUSINESS MODEL IS NOT A PYRAMID SCHEME:

When you become a distributor for Enagic, you are distributing Enagic machines. There is a physical, health product attached to it. You do not have to recruit anyone at all. This is direct sales, where you get a commission from each sale. When you’re first starting out, your uplines will also receive commission from your sales, but once you reach a certain rank, your uplines get cut off and you receive full commission. When you sell a machine, your buyer can decide whether or not he/she wants to become a distributor, as well, or just a consumer. You do not have to recruit a single person to join your team in order to advance in rank. You can sell machines solely to consumers who do not distribute.

MLM:

MLM (aka. Multi-Level Marketing) is a business model where distributors earn commission from their own sales, as well as a percentage from the sales of their downlines. Downlines can either be solely customers (just buy products for themselves), or they can be distributors and sell to others, as well. Most traditional MLM’s require you to hit certain sales targets each month to maintain your rank, as well as monthly spending requirements to be a distributor. In an MLM, you greatly rely on your downlines to make these monthly sales targets, and if you don’t reach them, you de-rank.

WHY ENAGIC’S BUSINESS MODEL IS NOT A TRADITIONAL MLM:

While Enagic is an MLM, it’s not a traditional MLM. With Enagic’s business model, once you purchase a product as a distributor, you are a distributor for life. There are no monthly fees, no monthly spending requirements, and no monthly sales targets. You can pause or quit your business whenever you want; at the same time, you can also come back to it whenever you want. There is no de-ranking ever. Enagic is part of the Direct Sales Association and you can rank up all by yourself, potentially exceeding your upline’s rank.

Please leave me a note below if you have any questions or if you’d like me to send over a 20 mins video explaining Enagic’s commission plan and how we get paid:

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Learn about Enagic’s flapship product here.

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