DXN Review: Chinese medicine based products

DXN are based out of Malaysia and operate in the coffee niche of the MLM industry.

The company was founded in 1993 by Lim Siow Jin. The DXN website states that Lim ‘started the business in quest of the benefits of mushroom on human health‘.

In his DXN corporate bio, Lim is credited with being ‘a graduate from the prestigious Indian Institute of Technology’ and having ‘a deep interest in utilizing the fullest potential of Ganoderma‘.

I wasn’t able to find any prior involvement in the MLM industry by Lim so DXN would appear to be his first MLM venture.

Read on for a full review of the DXN MLM business opportunity.

The DXN Product Line

DXN primarily market a series of health food supplements that are largely based on the principles and ingredients of Chinese medicine.

• Reishi Gano – “mushroom essence” nutrient supplement
• Ganocelium – ‘Ganocelium is produced from a 18-day old mycelium of Ganoderma lucidum (and is) effective in improving the general health of our body‘
• Andro-G – Andrographis paniculata capsules that are used as ‘a natural remedy for upper respiratory infections, fever, sore throat and flu‘
• RG and GL Powder – taken to ‘speed up the healing process‘
• Roselle Tablet – Hibiscus sabdariffa based product that contains vitamins C, D, B1 and B2
• MycoVeggie – high-fibre food supplement
• Spirulina Tablets and Capsules – a “blue-green algae” based product that contains ‘protein, beta carotene, chlorophyll, vitamin B complex, minerals, essential fatty acids and other important nutrients that our body needs’
• Mane Mushroom Tablet – Contains bioactive substances such as polysaccharides, adenosine, hericenones and erinacines that ‘improves indigestion‘ and ‘helps to maintain a healthy nervous system‘
• Cordyceps Tablets- a Chinese herb that contains various nutrients and active ingredients, which include cordycepic acid, cordycepin, amino acids, glutamic acid, polysaccharides and vitamin B12
• Bee Pollen Tablets – ‘an excellent source of Vitamin B complex, protein, minerals, amino acids and enzymes‘
• Potenzhi – Eurycoma longifolia and Butea superba based tonic supplement for male potency
• Monascus – Red yeast rice capsules that ‘helps in regulating our health‘
• Mycovita – Ganoderma and Mycelium mushroom shake mix that ‘has an excellent effect in assisting the body to achieve the state of general well being‘
• Black Cumin Plus – Black cumin based supplement which ‘consistent consumption (of) helps to regulate and defend our body optimally‘
• Reishilium Powder – ‘a balanced mixture of mycelium and fruit body of Ganocelium lucidum helps to enhance the general well being of our body‘

The above are just the food supplement products marketed by DNX, the company also has an extensive range of food and beverage, household, personal care and water treatment products.

See the DXN website (“dxn2u.com”) for more information.

The DXN Compensation Plan

The DXN compensation plan revolves around the sale of DXN products, with commissions and bonuses mostly tied into personal sales volume and that generated by an affiliate’s downline.

DXN Affiliate Membership Ranks

There are twenty three affiliate membership ranks within the DXN compensation plan and along with their respective qualification criteria, they are as follows:

• Distributor – join DXN and pay the affiliate membership fee
• Star Agent – generate group volume (GV) sales of 4,500 points
• Star Ruby – recruit 3 Star Agent ranked affiliates
• Star Diamond – recruit 6 Star Agent ranked affiliates
• Executive Star Diamond – have one personally recruited Star Diamond affiliate in your downline
• Senior Star Diamond – have two personally recruited Star Diamond affiliates in your downline
• Executive Senior Star Diamond – have three personally recruited Star Diamond affiliates in your downline
• Double Diamond – have four personally recruited Star Diamond affiliate in your downline
• Executive Double Diamond – have five personally recruited Star Diamond affiliates in your downline
• Triple Diamond – have six personally recruited Star Diamond affiliates in your downline
• Executive Triple Diamond – have seven personally recruited Star Diamond affiliates in your downline
• Gold Diamond – have eight personally recruited Star Diamond affiliates in your downline
• Executive Gold Diamond – have nine personally recruited Star Diamond affiliates in your downline
• Crown Diamond – have ten personally recruited Star Diamond affiliates in your downline
• Executive Crown Diamond – have eleven personally recruited Star Diamond affiliates in your downline
• Senior Crown Diamond – have twelve personally recruited Star Diamond affiliates in your downline
• Executive Senior Crown Diamond – have thirteen personally recruited Star Diamond affiliates in your downline
• Double Crown Diamond – have fourteen personally recruited Star Diamond affiliates in your downline
• Executive Double Crown Diamond – have fifteen personally recruited Star Diamond affiliates in your downline
• Triple Crown Diamond – have sixteen personally recruited Star Diamond affiliates in your downline
• Executive Triple Crown Diamond – have seventeen personally recruited Star Diamond affiliates in your downline
• Gold Crown Diamond – have eighteen personally recruited Star Diamond affiliates in your downline
• Executive Gold Crown Diamond – have nineteen personally recruited Star Diamond affiliates in your downline
• Crown Ambassador – have twenty personally recruited Star Diamond affiliates in your downline

Retail Commissions

DXN define retail commissions as sales of DXN products to customers not participating in the income opportunity.

Retail commissions are paid out as a 5-15% percentage and equates to ‘the difference between distributor price and retail price’.

Group Bonus

DXN’s Group Bonus pays out a monthly residual commission as a percentage of the group volume your recruited affiliates generate.

The percentage paid out is directly tied to an affiliates Personal Volume (their own product purchases and those of their customers and recruited affiliates):

• 100 PV – 6%
• 300 PV – 9%
• 1000 PV – 12%
• 2000 PV – 15%
• 3250 PV – 18%
• 4500+ PV – 21%

Star Group Bonus

The Star Group Bonus builds on the Group Bonus beyond 21% for Star Agent ranked affiliates. In order to qualify for the Star Group Bonus an affiliate must have 100 PV and have personally recruited affiliates generating at least 300 PV each month.

If the above qualification criteria is met, the Star Group Bonus pays out as follows:

• have one personally recruited and qualified Star Agent affiliates in your downline – 27%
• have two personally recruited and qualified Star Agent affiliates in your downline – 29%
• have three personally recruited and qualified Star Agent affiliates in your downline – 31%
• have four personally recruited and qualified Star Agent affiliates in your downline – 33%
• have five personally recruited and qualified Star Agent affiliates in your downline with all your personally recruited affiliates generating a minimum of 2000 GV -35%
• have six personally recruited and qualified Star Agent affiliates in your downline with all your personally recruited affiliates generating a minimum of 2500 GV – 37%

Note that at the five and sixth level qualifications the qualified requirement can be substituted for an increase in the required GV (3000 GV and 5000 GV respectively at the fifth and sixth levels).

Development Bonus

All Star Diamond ranked affiliates who maintain a monthly minimum of 100 PV and a downline total volume of 300 GV qualify for DXN’s Development Bonus.

The Development Bonus is a paid out as a commission on the earnings of an affiliates downline, paid down on five levels of recruitment:

• Level 1 – 5%
• Level 2 – 4%
• Level 3 – 3%
• Level 4 – 2%
• Level 5 – 1%

Leadership Bonus

The Leadership Bonus is a commission paid out to Star Diamond affiliates who maintain a minimum of 100 PV a month and a downline total volume of at least 300 GV.

It is paid out as a percentage of the earnings of personally recruited affiliates (level 1) and their personally recruited affiliates (level 2). Each level of recruitment lineage is treated independently of the others, with the commission being paid out down past level 2 until another qualified Star Diamond affiliate is found in that particular recruitment lineage.

If no qualified Star Diamond affiliate is found, the Leadership Bonus pays out on every affiliate in that particular recruitment lineage.

The Leadership Bonus is a percentage commission, subject to how many personally recruited Star Diamonds an affiliate has in their downline. It is paid out as follows:

• 1 personally recruited Star Diamond ranked affiliate – 5% on level 1
• 2 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 3% on level 2 and below
• 3 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 4.8% on level 2 and below
• 4 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 5.8% on level 2 and below
• 5 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 6.5% on level 2 and below
• 6 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 7.1% on level 2 and below
• 7 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 7.6% on level 2 and below
• 8 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 8% on level 2 and below
• 9 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 8.3% on level 2 and below
• 10 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 8.5% on level 2 and below
• 11 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 8.7% on level 2 and below
• 12 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 8.9% on level 2 and below
• 13 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 9.1% on level 2 and below
• 14 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 9.3% on level 2 and below
• 15 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 9.5% on level 2 and below
• 16 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 9.6% on level 2 and below
• 17 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 9.7% on level 2 and below
• 18 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 9.8% on level 2 and below
• 19 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 9.9% on level 2 and below
• 20 personally recruited Star Diamond ranked affiliates – 5% on level 1 and 10% on level 2 and below

International Profit Sharing

Qualified Star Diamond ranked affiliates (100 PV and 300 GV from their personal recruits) can earn share of 2% of DXN’s global profit.

At a base level this 2% is shared out equally between all qualified Star Diamond or above ranked affiliates, however affiliates can also earn a cut of the International Profit Sharing payout their downlines earn.

• Personally recruited qualified Star Diamond ranked affiliates – 50%
• 2nd level – 40%
• 3rd level – 30%
• 4th level – 20%
• 5th level – 10%

Travel Seminar Incentive

Made up of 2% of DXN’s global volume and distributed in a similar manner as the International Profit Sharing above, the Travel Seminar Incentive is used to offset the costs of Star Diamond affiliates when they attend DXN’s annual convention.

Unlike the International Profit Sharing bonus, the Travel Seminar Incentive must be used towards travel expenses and cannot be exchanged for cash.

Joining DXN

Affiliate membership to DXN is about $20 USD and appears to be a onetime fee.

Conclusion

At the heart of the DXN opportunity is a robust product range that is largely inspired by Chinese medicine.

Ganoderma mushroom based products have seen an increase in competition within the MLM industry over  the past few years, most particularly in the coffee sector. Expanding their product range well past coffee however DXN have a lot more for their affiliates to market.

That said it’s still going to be a targeted niche DXN affiliates are going to find themselves marketing to. This is reflected in the affiliate demographics DXN display on their website, which appear to be largely concentrated in Asia and markets receptive to Chinese medicine.

Compensation plan wise DXN offer a solid product volume based commission system. Increasing commission qualification is first done by increasing one’s own sales volume and then that of the affiliates you recruit.

Self qualification via purchases is possible but with the commission offered being percentage based, it’d be much easier to actually sell the products to retail customers. The affiliate numbers required to generate commissions to offset self-purchases pretty much rule it out as a viable income generating option, especially in the long-term.

I will say that the compensation plan presentation does need an overhaul as it’s not presented very clearly. I had to go over it a few times before what they were trying to explain sunk in (DXN love to use confusing terms with no explanation).

Also the affiliate membership ranks could also probably be cut in half. You don’t need twenty three affiliate ranks to adequately reward your affiliates, it’s unnecessarily excessive and only adds to the confusion in presenting the DXN business model and compensation plan.

If you can find a market for DXN’s products then business wise I don’t see any red flags in the model that would hold you back. The company is well-established though so competition from existing affiliates might be something to consider. I’d also recommend trying the products (at least a few of them) as a customer so that you’ve got a feel for them.

These kind of products aren’t going to be on most people’s regular purchase lists so as an affiliate it’s going to be your mission to introduce customers to the DXN product range. Best to do that when you’ve got a solid feel for the products yourself.

Good luck!