The world of coffee has also seen a rise in MLM business models in its industry. If it can be done in the energy field, this plan can also be done in the coffee industry. One of the more well known businesses in this area of life is DXN Global.
But it may surprise you that it is not an American or European company even though it does have outlets in both parts of the world. The main ingredient that help launch the company was the Ganoderma mushroom. It is a mushroom used throughout China and Asia for a variety of ailments. But more on that later.
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Some Background Information On DXN Global
The company was founded in 1993 by Dr. Lim Siow Jin. He is an actual doctor, in alternate medicines, and he holds two doctorates certified by the Indian Board of Alternative Medicines. His first came in 1997 and his second 2002 and each doctorate was related to alternative medicine.
The reason for those degrees was the underlying passion Dr. Jin had for the health benefits of the Ganoderma mushroom. Starting in Malaysia, the company and Dr. Jin started the long road to success. It wasn’t until 1998 that they expanded into Thailand.
2 years later the company bought its first farm so that it could control the quality of the mushroom and make sure its products were of top quality. Dr. Jin also merged DCN Network Sdn. Bhd with his company, the former having 18 years of direct sales experience, and then expanded into India, Australia, Laos, and New Zealand.
The company seems to have experienced great growth as its continued expansion came to North America, not the US in 2003. It also entered Bahrain, Saudi Arabia and Oman at the same time. The next year saw the company open up in Jordan, Nepal and Peurto Rico.
Each year seemed to bring a new market opening while winning awards along the way. While we read that there is a DXN USA office, the company’s history did not record an office being open in that country. Along with America, Africa does not seem to have any DXN offices.
From its humble 1997 beginnings, DXN Global now has about 8 million customer representatives selling a variety of its products and making about 1.25 billion annually as a result.
The Ganoderma Mushroom
Also known as the Reishi mushroom and it is part of the red mushroom family. Its 200 documented years of use tells us that it is the most revered mushroom in Chinese medicine.
With over 400 nutrients inside, it is no wonder people like eating it in some form. Plus it comes with about 20 health benefits including heart, liver, kidney health properties.
To get the full list of health benefits just click this link.
The DXN Product Line
The company sells a lot of different products through its independent distributors. Along with skin care, and they have a separate Korean series line, they also sell personal care, cosmetics, health foods and beverages.
Not to mention their appliance and their water treatment lines. The main ingredient in their edible lines is the Ganoderma mushroom. With over 40 individual products in their food and beverage line.
Unfortunately we could not find a price on their products on their online website. When you hit the shop now button you are sent to a very crowded web page that may ultimately hook you up with an independent distributor. We were able to find out that a simple box of Ganoderma black coffee would cost about $30.
A small bar of soap can cost you about $20 and both products include a one time $16 registration fee. The company does claim that it only uses 100% natural ingredients in its products although that may be hard to do with certain kitchen appliances and water treatment products.
Other ingredients include DXN Reishilium Powder, Reishi Gano (RG), RG Powder & GL Powder, Ganocelium (GL) and DXN MycoVita. The company does own its own plantation so it can control the quality of mushrooms it uses in its edible products.
One of the unique things about the DXN product line is each set of edible foods and beverages come with their own list of natural ingredients. You would have to go to the company’s website to see the full list of items they put in their food, beverage and health lines.
The company is certified by the Australian Code of Good Manufacturing Practice for Therapeutic Goods and has been since 1991. This tells everyone that they do strive to manufacture, grow and produce top quality ingredients for their products.
Their farming techniques is done the organic way using sawdust and rice chaff. This makes sure that harmful fertilizers and chemicals are not needed. While you may be concerned about the MLM aspect of DXN, it seems that their care for the quality of their ingredients is above suspicion.
Signing Up With DXN
While the process may be a bit easy to do, you can only join through a sponsor. If you are not sure how to find a sponsor there are several company websites out there that can help you find one near you.
After you and your new sponsor complete the application form, you have to buy a starter kit. The price depends on which one you want to purchase. The cost is either $43 or 270. The latter allows you to enter the bonuses and commission compensation plans right away while the former does not.
Oh and there is an approx. $20 registration fee you need to pay. These are not the only fees you need to pay to stay active and qualified with the company and sell their products.
Once you have paid these fees, you need to maintain a 30 personal points value each month or a 100 personal group points value each month to remain active. In order to reach those mandatory goals, you have to buy product every month.
DXN is what is called a pay to play business opportunity. If you do not pay, you cannot play and you do not earn money. Failure to maintain your active and qualified status means that you do not get any commissions even if you sold some products that month. You also do not get any bonuses either.
Like any other MLM corporation out there, signing up is the easiest part of the process. The hard part comes after you signed up and need to recruit in order to start meeting your mandatory goals and quotas.
Making Money With DXN
Now we get to where the rubber meets the road. As you can see signing up is not that difficult and it may be fun as you have high hopes of making extra money. Of course, you are not told that there may be a lot of people out there who may not want or are interested in mushroom based coffee and other products.
With that fact aside, there are only two ways to make money selling DXN products. The first way is through your own direct retail sales. You can do this in two ways as well. You can purchase the products at a discounted price or send your customers to a replicated website so you get the credit for their purchases.
The other way to make money is the standard MLM way which makes DXN an MLM company. You need to recruit. The more you recruit the higher your earnings potential. The problem is, you need to recruit outside of your territory or you will be creating your own competition.
There is another problem as well. The products you are marketing may wholesale, and the cheapest coffee is this price, for $20 but it is possible that that price may be undercut to $15 because no one wants to spend $30 on a bag of coffee.
You won't make money losing $5 on every purchase. Then there is still another problem. If you sell yourself you may get 15% commission but to make any money off your recruits, you need about 3,250 top make an additional 3% in commissions.
To get any bonuses, and there are 6 levels of group ones, you still need to maintain 30 PPV points each and every month. And to get the top group bonus you still need to have that 100 PGPV each month.
There are other bonuses available but the requirements to meet to receive those bonuses are quite difficult. To read their compensation plan, just click here. Be prepared to earn nothing each month because of the complicated and difficult compensation plan you are working under.
While you can earn money, you have to go up about 23 levels to do so. To progress you have to out do about 8,000,000 other independent distributors selling the products in about 180 countries of the world.
Another thing to keep in mind is that the products you are selling will range from about $750 to about $500. How many people will be interested in paying high prices when they can get other similar products cheaper.
Problems With The Company
We are not talking about legal problems here. There are just overall red flags that should have you thinking twice about singing up. These problems also do not refer to the cost of registration, the starter kits and the mandatory monthly purchases.
Here is a short list of those red flags that should have you concerned about membership in DXN:
- The company does not publish income disclosure statements on its independent distributor’s income. The company may be hiding the fact that their sales people do not make money.
- The have a strange assortment of product lines that do not seem related to each other.
- There is no price disclosure so you do not know what you are getting into until you have signed up and paid your fees.
- The company is not accredited with the BBB.
- Products may not do as they claim.
- Too much competition.
- There are not a lot of negative reviews about the company. Those comments and reviews come from Facebook, Amazon and other places.
- You have to obey and follow all DXN rules and guidelines to stay in business. You have no control over what products you can sell or how you sell their products.
- Their compensation plan turns independent distributors into customers, not business owners.
- As usual, you have to do a lot of recruiting to scale the compensation ladder in order to make a real living selling these products.
- It is not a scam, but it is close to one and it is a pyramid scheme if you ever saw one.
There Is A Better Alternative
No matter what people say or the few similarities with MLM marketing, affiliate marketing is a better way to make money than enduring the humiliation of DXN and its policies and compensation plan.
Affiliate marketing uses websites, has commissions, and it has a products you can sell. But that is about where the similarities end with MLM style business plans. You do need a website because to sell well, you need to produce good content. For people to see that content you need a website.
Also, you need to have something to sell to make money. There are hundreds of thousands of niches and products you can represent in affiliate marketing. The good news about this is, you do not have to buy product to sell nor do you have to recruit.
The commission you make is all yours and there are no levels to ascend to make real money.
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