Is DXN A Scam? One Of The Better MLM’s Reviewed
Are you thinking about joining DXN and wondering if this company is a scam or not.
If so, this post is for you.
This is one of the bigger and older MLM's out there and there's a lot to unpack here. In this post you'll find everything you need to know about DXN including background information, price to join, compensation plan overview, product breakdown and more.
By the time you're done reading you'll know if this opportunity is right for you.
Let's get into it!
Price to join: $20
Do I recommend? Sort of (read below)
Summary: DXN is a HUGE Multi-Level Marketing company and is one of the most profitable in the world (they are a billion dollar company).
It's pretty rare for me to recommend a MLM but in this case I would if you're really interested. DXN is one of the better run MLM's out there and there really isn't any shady practices like other MLM's have.
Additionally, they have a strong retail lineup and their products are well liked/well reviewed.
MLM's are hard to succeed with and my guess is more people will fail than succeed here, however.
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1) What Is DXN? DXN is a Multi-Level Marketing company that launched in Malaysia in 1993. In 2002 DXN launched in the USA and in 2003 launched in Canada and Mexico.
The founder is Dr. Lim Siow Jin and he's an expert in alternative medicines (herbal medicines).
They're mostly known for their coffee products but also sell supplements, skin care products, cosmetics, appliances and more.
The ingredient they're most known for is Ganoderma which is a reishi mushroom.
2) How do you make money here? Like I said DXN is a MLM and this means you sign up for a fee for the ability to sell products to customers on your own for a commission.
Additionally, you get rewarded for recruiting people to sell under you and building your downline. You earn commissions off the sales of the people under you.
Lastly, there's smaller bonuses where you can earn money from and this is usually based off personal sales and your downline's sales.
3) Are there any red flags here? Despite being a multinational, billion dollar company, there really aren't any red flags about this company.
Is DXN A Pyramid Scheme?
Pyramid schemes are illegal in basically every part of the world.
Some MLM's turn out to be an illegal pyramid scheme and others are perfectly legitimate.
DXN is the second and is perfectly legitimate.
To understand the difference, look at the picture below:
The above picture is what an illegal pyramid scheme looks like and this happens when recruitment is the only way to make money.
Usually there wouldn't be a real product or the product was a scam for a pyramid scheme to happen.
At DXN there's definitely real products and you can sell them without recruiting. In fact, I'm pretty sure DXN has very strong retail sales and their products are quite popular.
So DXN is definitely not a pyramid scheme.
MLM's Are Hard To Succeed With
I think DXN is one of the better MLM's out there but that still isn't going to change one fact..
Most people will fail here and the people that do make money tend to make only a couple hundred a month.
In fact, some studies show that up to 99% of people that join a MLM lose money.
Maybe DXN will have a few more success stories because they're so well run but it's not going to be that much higher.
In order to be successful at DXN you'll need a lot of people to sell to and you'll need hundreds of people in your downline.
Most people don't consider this before joining a MLM and is why so many tend to fail.
Some get desperate and turn to family and friends to sell and recruit but that's not going to be enough.
You're going to have to take courses on recruitment and lead generation if you want to be successful with DXN.
Below is some eye opening MLM stats:
As you can see MLM's are a tough way to make money.
How Much To Join DXN
The great news here is DXN doesn't cost a lot to join and all you have to do is pay a one time $20 fee.
However, there's more costs that you need to factor in if you're going to run a successful direct selling business.
For example, you'll be spending money on gas to recruit/make sales, you should be buying products to test out, buying products to sell and taking courses to improve your recruiting/sales ability.
I personally feel like setting aside $2000 to $5000 is always smart if you want to be successful.
DXN Compensation Plan Explained
DXN's compensation plan is pretty long and will be complicated for anyone that doesn't understand MLM jargon.
If you want to watch a video on the entire plan, watch the video below:
I'm going to summarize the main parts so it's easy for you to understand.
At DXN there's 23 different affiliate ranks you can achieve and you go from one rank to another based on your recruiting abilities.
Here's the ranks you can obtain:
- Star Agent
- Star Ruby
- Star Diamond
- Executive Star Diamond
- Senior Star Diamond
- Executive Senior Star Diamond
- Double Diamond
- Executive Double Diamond
- Triple Diamond
- Executive Triple Diamond
- Gold Diamond executive Gold Diamond
- Crown Diamond
- Executive Crown Diamond
- Senior Crown Diamond
- Executive Senior Crown Diamond
- Double Crown Diamond
- Executive Double Crown Diamond
- Triple Crown Diamond
- Executive Triple Crown Diamond
- Gold Crown Diamond
- Executive Gold Crown Diamond
- Crown Ambassador
Basically you go up in rank when your recruits start going up in rank as well. For instance, to reach the last rank you'd have to personally recruit 20 Star Diamond affiliates.
You get various bonuses for ranking up as well.
Retail commissions is the money you make selling directly to customers and you earn the difference between the distributor price that you buy products for and the retail price you sell for.
According to DXN this comes out to 5% to 15%.
Group Bonus is the money you make from your personally recruited affiliates.
You earn a percentage of all the sales these affiliates make and how much you make depends on the volume your downline sells.
Here's the percentage you make based on volume sold:
- 100 PV earns you 6%
- 300 PV earns you 9%
- 1000 PV earns you 12%
- 2000 PV earns you 15%
- 3250 PV earns you 18%
- 4500+ PV earns you 21%
Star Group Bonus:
Star Group Bonus allows you to earn past 21% on personally recruited affiliates. You can earn anywhere from 27% to 37% and the higher your recruits get in rank, the higher percentage you earn.
This bonus allows you to earn further down your downline. In order to qualify for this you need to be a Star Diamond rank or higher and maintain a monthly minimum of 100 PV (Personal Volume Sales) and 300 GV (Group Volume Sales).
Here's what it looks like:
You can earn the following from different levels:
- Level 1 - 5%
- Level 2 - 4%
- Level 3 - 3%
- Level 4 - 2%
- Level 5 - 1%
Retail sales, Star Group Bonus and Development Bonus is going to be where you make the majority of your money.
There's smaller bonuses you can earn with as well including the Leadership Bonus, International Profit Sharing and Travel Seminar Incentive.
If you want to learn more about these smaller bonuses watch the video up top.
DXN's retail selection is actually pretty strong for a MLM and their products are very popular.
One thing I really like here is is DXN grows their ingredients for their products. Below is a picture of onr their farms where they grown Ganoderma:
In fact, DXN claims their farms are some of the biggest in South East Asia and DXN is the world's largest Ganoderma company.
This is a very good sign and shows that their ingredients are real and there's not sketchy third party companies involved.
You can be sure you'll get the full benefit of Ganoderma because of all of this.
Ganoderma isn't the only ingredient or type of product they sell. Below is the kind of products they sell:
- Coffee and teas
- Personal care products
- Skin care products
- Household products
- Home appliances
There's too many products to list but their most popular is their coffees. Below is the reviews these products get on Amazon:
As you can see the price is pretty reasonable and the reviews are very good.
I think the biggest problem you'll run into is people not being familiar with Chinese herbal medicine and the health benefits of Ganoderma.
This is especially true if you'll be selling in America. The average American's knowledge of herbal medicine is not good and this may lead to skepticism.
As long as you can get past that and can accurately show the benefits of the coffee, you might find selling to be easier than with other MLM's.
What I Like About DXN
Overall there's a lot to like here and the main things I like are:
- Inexpensive to join: $20 is about as cheap as you'll find for a MLM. You'll have to buy products to sell and this can add up but still this is about as cheap as you'll find for a MLM.
- Home grown ingredients: Not many MLM's grow their own ingredients like DXN does. This ensures you're getting safe and reliable ingredients.
- Been around for nearly 30 years: MLM's come and go and most don't last more than a couple of years. However, DXN has been around for a long time which shows good products and good leadership.
- Popular products: The products offered by this company is also well reviewed and well liked. This will come in handy when it comes time to sell.
What I Don't Like About DXN
There's a couple things I don't like about DXN which includes:
- Low success rate: MLM's are tough to succeed with and it doesn't matter which MLM you join - more will fail and lose money than make money.
- Bothering friends and family: Unless you know how to recruit outside your friends and family you'll have to bother friends and family. This can get very awkward and strain relationships.
Is DXN A Scam?
I definitely don't think DXN is a scam and in fact I think it's one of the best MLM's you can join.
They have very well made and popular products, a wide selection of products to sell and it's inexpensive to join.
DXN doesn't engage in shady MLM products like autoshipment either.
The only problem here is the Multi-Level Marketing business is a tough business to succeed with.
You have to be willing to go out and actively try and recruit people into your downline and make retail sales.
This is going to take more than recruiting people close to you and advertising on your personal Facebook.
It's going to take a crazy amount of effort to make this work. But if you have the dedication and the stomach to succeed, DXN is one of the better MLM's you can join.
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