Is Kyani a Pyramid Scheme? A Look Into This Business Opportunity
When looking at Kyani’s compensation plan, the question arises… is Kyani a pyramid scheme? At first I was thinking.. there is no way, but after digging a little deeper it does seem a bit on the shady side and leans fairly close to being one.
If you are looking to become a distributor for Kyani there are a few important things you should know that most people won’t tell you. In this review I hope to provide you with some valuable information on the legitimacy of this business and opportunity that they offer.
Kyani was founded in 2005 by a man named Jim Hansen Sr. They are a MLM company that is in the business of selling health products.
Their direct sales business model is what probably got you to read this page. They offer a business opportunity that anyone can join in on. Anyone can sell Kyani products for them directly to consumers and make money doing so.
In addition, the MLM side of this business is what has people questioning whether or not its a pyramid scheme. This is because you can recruit other members into the business and make money doing so. I do not consider this to be a pyramid scheme, yet there are some signs of one and I will go over a scenario where it could possibly be one.
A pyramid scheme in its purest form has no products and relies solely on recruiting new members in and charging a membership or buy-in fee. But there is still something called a product-based pyramid scheme, and this is when pyramid schemes have products to sort of as a cover-up to disguise themselves as legitimate MLM’s.
Kyani has 4 main products that distributors can sell.
They have what they call “the triangle of health”, which includes Kyäni Sunrise, Kyäni Sunset, Kyäni Nitro FX and Kyäni Nitro Extreme.
And then they have Fleuresse Skin Care System which consists of skin creams, cleansers, and serums.
I will say that these products are very good quality. They don’t skimp out here. If you would actually buy any of these products you would probably be impressed.
The MLM Side Of It
In mlm’s like this one, its all about recruiting, recruiting, and more recruiting. Why? Well because you can make money off of your recruits efforts.
This recruitment structure has a pyramid shape to it. You are at the top, your recruits are below you, and so on. As you work your way down the pyramid it branches out and gets larger and larger.
Income generated from your “team”, aka the recruits beneath you, will trickle up the pyramid and into your pocket.
I don’t want to get too much into all the ways you can make money from your recruits with the MLM structure because I could write an entire post on it. But just to give you an idea of how this all works take a look at the PayGate Accumulator and Generation Check Match below…
The PayGate Accumulator is all about recruiting new members, getting your team bigger, and increasing your Group Volume (GV), which is the amount of Kyani products your team orders at wholesale prices in order to sell to consumers. The larger your GV and the larger your team, the more PayGates you open up and the more money you make to put it simply.
With the Generation Check Match you can earn a 15% check match from income generated from your team at the first level. You also can earn from the other levels and the higher your rank the more levels beneath you that you can earn these check matches from.
The Ranks Inside The Multi-Levels
There are 15 ranks and I don’t know if you can see the picture above, but in order to move up the ranks its all about increasing your Group Volume and recruiting more members. The Personal Customer volume doesn’t have to increase.
In other words, it doesn’t matter how many customers you get, to move up the ranks you need to be recruiting like a mad man.
Isn’t This a Pyramid Scheme?
The only way that Kyani could be a pyramid scheme is if it were a product based pyramid scheme, obviously because they do have products for sale.
And in order for it to be considered a product based pyramid scheme it would have to rely on member recruitment for revenue overwhelmingly instead of actual product sales to the general public.
So does Kyani rely too much on member recruitment and not enough on actual product sales to the general public? This is real question.
Why They Might Be a Pyramid Scheme
Kyani relies on product sales for pretty much all of their revenue. Which seems good an all. But the problem is that much of these sales come from new members being forced to buy products.
You see in order to start out as a distributor you must purchase a Business Builder Pack and a Product Pack.
The Business Builder pack costs $40 and is designed to teach you how to get up and running as well as provide you with some tools to help you sell. The Product Pack ranges in price from $299-$999 and these are the wholesale products you will be buying in order to sell to consumers.
Its a Hard Business to Make It In
Most MLM’s are extremely difficult to make good money in and Kyani is no different.
The statistics prove it. On their website they list an earnings disclaimer for the 2014-2015 year. I know its old but for some reason it is the newest one that they have listed.
As you can see from the screenshot I took below, there are not all that many people making money.
Distributors ranked as Ruby, Emerald, Diamond, Blue Diamond, Green Diamond, and Purple Diamond account for less than 1% of all distributors.
And if you add up the percentages you will see that this chart only accounts for about 26% of all distributors. Where are the other 74% at? Well they aren’t listed here because this list starts off with the Garnet rank who average $74/month and the other 74% of distributors DON’T EVEN MAKE THAT MUCH!
Final Thoughts & What I Recommend
Kyani’s products are very good. If I could, I would be drinking their drinks and taking their supplements everyday.
The problem with this business is that they reward members too much for recruiting new members. The MLM structure leads to many members recruiting new people in by deceptive means, all in order to make some money off of them.
Much of the sales pitches you hear are very misleading. The truth is that it is very hard to be successful in this business. You have to be a recruitment machine to make good money.
If you are like me and are just not the salesperson type and don’t think a recruitment style business like this is right for you.. and you want another option for making money with your own business, you should read my post on how I make a living working online (link below). I work for myself online and its a pretty awesome career. In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂