Is Enagic Kangen Water Business An MLM or A Pyramid Scheme?

MLM (Multi-Level Marketing) is a business model wherein distributors earn commission from their own sales, as well as a percentage from the sales of their downlines. Downlines can either be solely customers or they can be distributors & sell the products to others, as well. 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 have to rely on your downlines to make these monthly sales targets, and if you don’t reach them, you de-rank.

With Enagic’s business model, once you purchase a product as a distributor, you are a distributor for life time. 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 do not need to rely on anyone else. You can rank up all by yourself, potentially exceeding your upline’s rank.

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.

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.

This concludes that Enagic’s business model is neither an MLM nor a pyramid scheme; its a direct sales business model offering benefits of network marketing without any rules & bondage's. 

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