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Is Nikken A Scam? Another Health Pyramid Scheme? 

 January 14, 2020

By  Dylan

Have you been approached to join Nikken and want to know if it's a scam?

If so, this post is for you.

Below you'll find everything you need to know about this company including background information, price to join, compensation breakdown, product overview and more.

By the time you're done reading you'll be a Nikken expert.

Ready? 

Nikken Summary

Company: Nikken

Price to join: $49 to start + monthly autoship

Rating: 20/100

Do I recommend? No!

Summary: Nikken is a Multi-Level Marketing company that has been around for a long time (over 30 years). This is different than most MLM's (most don't last more than a couple of years).

Despite the longevity of this company I still wouldn't recommend that you join. At the end of the day most people will lose money instead of make money.

Additionally, there's autopshipment here which requires you to buy products every month and this just means your losses will be even bigger.

Better opportunity: If you're looking for a way to make money online and from home (without any special skills or experience), click the button below. There you'll see the training that taught me how to make 6 figures online:

Nikken FAQ'S

1) What is Nikken? Nikken is a MLM that started in 1975 by Isamu Masuda. Originally this company was based out of Japan and moved their headquarters to California. 

Today they're operating in over 40 countries.

Most of the products here are health based and you can sell supplements, lotions, air purifiers, products to help you sleep and more.

2) How do you make money here? Like I said this is a Multi-Level Marketing company and this means you sign up for a fee to sell their products.

Additionally, you earn money by recruiting and building a downline. This may sound like a good way to make money on paper but it's really flawed. 

3) Any red flags? The biggest red flag about Nikken is various health claims they make about their products. They claim pretty much without proof their products can help with cancer, Alzheimer's, autism and more.

Some of these claims come directly from Nikken themself and others come from distributors.

Autoshipment is another red flag which I will talk about in the next section.

Any similar products? There's many health MLM's out there (literally thousands) like Amare Global, Tranont, Neolife, Heal Worldwide, etc. 

Is Nikken A Pyramid Scheme?

Some MLM's are pyramid schemes (which are illegal) and others are completely legitimate.

I'd say Nikken is in a grey area.

Look at the picture below to understand what I mean:

The picture above is what an illegal pyramid scheme looks like and this happens when:

  1. There's no real product and recruitment is the only way to make money.
  2. Most of a MLM's revenue comes from distributors buying products and not retail customers (this is known as a product based pyramid scheme).

There's real products at Nikken and you can sell them without recruiting so Nikken isn't the first version of a pyramid scheme.

However, they require autoshipment which means distributors have to buy products every month. 

This is a horrible practice and could make Nikken a pyramid scheme.

To know for sure you'd have to ask the person recruiting you how much of their revenue is retail and how much is from recruiting/distributors buying products.

If retail sales is less than half you're in a pyramid scheme. 

Making Money Will Be Difficult

MLM's are a very tough way to make money and overall the majority of people that join one lose money instead of make money.

In fact, there's plenty of studies that show up to 99% of people that join a MLM lose money which is absolutely horrible.

Nikken has an income disclosure where they show how much people are making depending on their rank.

You can look at it below:

As you can see .57% make more than $100,000 a year. 

85% of people make less than $552 for the year which is about $46 per month. Keep in mind these people have over 100 months at Nikken on average too. 

Imagine working for 10 years at Nikken only to make less than $46 per month. People in third world countries make more than that!

The people who make more than $100,000 a year have been with the company on average for 22 years!

This is such a horrible opportunity and it's really, really not worth your time.

Below is some even more eye opening stats:

As you can see ALL MLM's just aren't worth it.

How Much To Join Nikken?

Joining Nikken involves buying a Starter Pack for $49. This comes with products and marketing materials.

There's also other costs you need to factor in when starting a direct selling business. You're more than likely going to have to throw a party or drive around to make sales.

This all costs money and should be added into your expenses.

Also, there's autoshipment requirements which means you have to buy products every month.

This typically costs $100 per month.

I always think it's a good idea to set aside between $3000 to $5000 if you plan on starting a direct selling business. 

That should cover all your expenses for a year.

Nikken Compensation Plan

Nikken's compensation plan is over 20 pages long and will probably be too confusing for someone who's not familiar with MLM's to understand. 

I'm going to summarize the main parts so you can easily understand it.

Affiliate Ranks

At Nikken there's 9 different affiliate ranks you can achieve and they are:

  • Direct 
  • Senior 
  • Executive
  • Bronze
  • Silver
  • Gold
  • Platinum
  • Diamond
  • Diamond Royal Diamond

You go from one rank to another by hitting certain goals and you get different rewards for going from one rank to another.

Retail Profits 

You get 25% commissions when you sell Nikken products to customers.

Residual Commissions

Residual commissions is what you make off the sales activity from your downline. How much you make depends on how much you downline sells and your own rank.

The picture below represents this:

You can't earn residual commissions until you hit the Silver rank. Every rank after Silver you earn another 6% on a level further down.

Smaller Bonuses

There's other smaller bonuses as well like the Leadership Bonus, Paragon Award, Lifestyle Bonuses and more.

These bonuses only make up a small part of the compensation plan and aren't that important. 

Nikken Products

Nikken has 4 main types of products and they are:

  • Nutrition
  • Personal Care
  • Rest and Relaxation 
  • Environmental

There's way too many products to list and if you want to look at them all, click here. It seems the bulk of the products are supplements. 

The supplements are pretty pricey with many of them costing over $60 for a month's supply. 

The problem with supplements this expensive is there's always going to be competitor products that do the same thing for less.

So even if you find customers that are interested in them, you'll have to compete with these other brands.

Also, there's some whackier products like health magnets. These make up a minority of the products at Nikken, though.

What I Like About Nikken

Overall I don't like Nikken but there's a couple things to like including:

  • Been around for awhile: Most MLM's come and go but Nikken has stood the test of time. This shows good leadership and you won't have to worry about this company going anywhere or having to start over because they shut down. 
  • A lot of different products: Some of the products are weird but there is a wide selection. This will give you more of an opportunity to sell.

What I Don't Like About Nikken

There's just more not to like and the main things I dislike are:

  • Extremely low success rate: Most people that join this company make less than $45 a month if they make any money and even more people lose money. 
  • Dubious health claims: Nikken has made some pretty bold health claims about their products and some of their distributors have said they can cure cancer. This is dangerous and very unethical. 
  • Autoshipement: MLM's have a low success rate so it's bad when you see autoshipment. This means you'll be forced to buy Nikken products every month whether you want to or not. If too much of Nikken's profits comes from distributors buying products you are in a pyramid scheme. 

Is Nikken A Scam?

I wouldn't say Nikken is a scam but it is a bad business opportunity.

There's somethings to like here like how long they've been in business and the variety of products they offer but that's about it.

At the end of the day it's a MLM and these kinds of companies are very hard to succeed with.

It requires selling overpriced products in a very competitive market and having to recruit people to sell under you.

Most people won't like being recruited and may resent you for trying. Is losing the respect of a friend or family member worth it? 

I'd hope you'd say it wasn't. 

Here's A Better Opportunity

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Dylan


Creator of The Affiliate Doctor. I earn a full time income online and love teaching people to do the same!

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