enagic-logoEnagic operate in the water purification MLM niche and are based out of the US state of California.

On their website Enagic trace their origins back to June 1974, which is when they claim

Sony’s specialty trading operation, the precursor of Enagic, began operations in Okinawa, Japan.

January 2003 appears to be the year Enagic went full-scale MLM, with the company opening its first office in the US.

hironari-oshiro-founder-ceo-president-enagicHeading up Enagic in the US Hironari Oshiro (right), who serves as President and CEO.

Details on Oshiro are sketchy, with Enagic using his corporate bio to instead market the company itself.

As per an Enagic marketing document I found,

In 1974, Mr. Hironari Oshiro owned an exclusive Sony Dealership.  In 1988 he changed the name of his company to Enagic Co., Ltd.

In 2001 he acquired 30‐year‐old Toyo Aitex, recognized as Japan’s highest quality and most reliable water ionizer manufacturer, manufacturing the unit in Japan as Sanastic.

Why this information isn’t presented on the Enagic website is unclear.

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

The Enagic Product Line

kangen-sd-501-alkaline-water-ionizer-enagicEnagic market Kangen Water machines.

Kangen Water is delicious water created from Enagic’s innovative water technology.

Not only do these devices filter your tap water, but they also produce ionized alkaline and acidic waters through electrolysis.

These waters can be used for various purposes, including drinking, cooking, beauty, and cleaning.

The first Kangen water model, the Leveluk DX, went on sale in January 2000.

In total Enagic market seven Kangen water machine models:

  • Sun US – $1280
  • Leveluk Jr. II – $2380
  • Anespa – $2390
  • Leveluk DX – $2980
  • Leveluk DX II – $3280
  • SD 501 – $3980
  • Super SD 501 – $5980

I did look but couldn’t find any specific information about the above models on the Enagic website.

The company does claim however that

with a pH of 8.5-9.5, this type of water is perfect for drinking and healthy cooking. It works to restore your body to a more alkaline state, which optimizes health.

The Enagic Compensation Plan

The Enagic compensation plan sees affiliate paid to sell Kangen water machines to recruited affiliates and retail customers.

Commissions are paid out directly and residually through a unilevel compensation structure, with additional performance-based bonuses on offer.

Enagic Affiliate Ranks

There are six affiliate ranks within the Enagic compensation plan.

Along with their respective qualification criteria, they are as follows:

  • 1A – purchase or sell a Kangen water machine and sell at least one machine to either a retail customer or recruited affiliate
  • 2A – sell an additional three machines after qualifying as 1A
  • 3A – generate at least 10 Kangen water machine sales (can be personal or downline sales), then personally sell one more machine to qualify
  • 4A – generate at least 20 Kangen water machine sales (can be personal or downline sales), then personally sell one more machine to qualify
  • 5A – generate at least 50 Kangen water machine sales (can be personal or downline sales), then personally sell one more machine to qualify
  • 6A – generate at least 100 Kangen water machine sales (can be personal or downline sales), then personally sell one more machine to qualify
  • 6A2 – have at least one 6A ranked affiliate in your downline
  • 6A2-2 – have at least two 6A ranked affiliates in your downline
  • 6A2-3 – have at least three 6A ranked affiliates in your downline
  • 6A2-4 – have at least four 6A ranked affiliates in your downline

Commission Point Structure

The Enagic compensation plan revolves around points, generated when an affiliate sells a Kangen water machine.

Each water machine sale generates a total of eight points, with 1 point across the Kangen range equal to the following:

  • Sun US ($1280) – $80
  • Leveluk Jr. II ($2380) – $160
  • Anespa ($2390) – $180
  • Leveluk DX ($2980) – $225
  • Leveluk DX II ($3280) – $235
  • SD 501 ($3980) = $285
  • Super SD 501 ($5980) – $400

How many points an Enagic affiliate can earn on is capped at six, with specifically how much determined by their Enagic affiliate rank:

  • 1A = 1 point per sale
  • 2A = 2 points per sale
  • 3A = 3 points per sale
  • 4A = 4 points per sale
  • 5A = 5 points per sale
  • 6A = 6 points per sale

Direct Commissions

When a Kangen affiliate makes a direct sale (either to a recruit affiliate or retail customer), they are paid at their respective rank point rate.

Using the Anespa machine as an example ($180 commission per point), this would mean a 2A ranked affiliate would earn $360 ($180 x 2). Comparatively, on the same sale a 4A ranked affiliate would earn $720 ($180 x 4).

Residual Commissions

Residual commissions in Enagic are paid out via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

unilevel-commission-structure

If a level 1 affiliate goes on to recruit a new affiliate, they are then placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

Enagic cap payable unilevel levels at eight, with commissions (based on points), paid out as follows:

  • 1A – able to earn 1 point on a sale made within seven levels of the unilevel team
  • 2A – able to earn 2 points on a sale made within seven levels of a unilevel team and 1 point on the eighth level
  • 3A – able to earn 3 points on a sale made within six levels of a unilevel team, 2 points on the seventh level and 1 point on the eighth level
  • 4A – able to earn 4 points on a sale made within five levels of a unilevel team, 3 points on the sixth level, 2 points on the seventh level and 1 point on the 8th level
  • 5A – able to earn 5 points on a sale made within four levels of a unilevel team, 4 points on the fifth level, 3 points on the sixth level, 2 points on the seventh level and 1 point on the eighth level
  • 6A – able to earn 6 points on a sale made within three levels of a unilevel team, 5 points on the fourth level, 4 points on the fifth level, 3 points on the sixth level, 2 points on the seventh level and 1 point on the eighth level

Note that these points are maximum values, with the amount of points remaining on a sale determining whether or not an affiliate is actually paid a residual commission.

Eg. Let’s say you are a 4A ranked affiliate, that means you can earn up to 4 points within five levels of a unilevel team, 2 points on the seventh level and 1 point on the eighth level.

If an 2A affiliate on the fourth level of your unilevel team made a sale, they’d get their 2 points, leaving 6 to pay out (each sale generates a total 8 points).

The next affiliate up is a 3A, so they get 3 points, leaving 3 points to pay out.

The next affiliate up is a 1A, so they get 1 point, leaving 2 points to pay out.

If the next affiliate up was a 1A, they’d get paid 1 point and you’d get the remaining 1 point.

If the affiliate was a 2A or higher though, they’d collect the remaining two points and you wouldn’t get any (there’s none left to pay out).

In this manner commissions are paid in Enagic through the unilevel compensation structure.

Educational Allowance

Despite the name, the Educational Allowance has nothing to do with education.

Rather, it’s a bonus paid out to 6A ranked affiliates, on top of the 8 points of commissions paid out.

Once all eight points on a sale have been paid out, the next 6A ranked affiliate found in the upline is paid the Educational Bonus.

Note that the bonus is only paid on certain Kangen water machine models as follows:

  • Anespa – $125
  • Leveluk DX – $150
  • SD 501 – $175
  • Super SD 501 – $220

Leadership Bonus

The Leadership Bonus is a $40 bonus available to 6A2-2 ranked affiliates, paid out whenever a sale is made by an affiliate unilevel team.

There are no specific unilevel level restrictions for the Leadership Bonus, however the bonus does only pay out until another 6A2-2 ranked affiliate is found in that particular unilevel leg (each leg is treated independently of the others).

Group Sales Incentive Bonus

The Group Sales Incentive Bonus is structured much like the Leadership Bonus, but instead pays a percentage commission out of sales made by an affiliate’s downline.

How much of a percentage is paid out is determined by an Enagic affiliate’s rank:

  • 6A2 and 6A2-2 – 1% bonus
  • 6A2-3 – 0.3%
  • 6A2-4 – 0.1% bonus

Note that as with the Leadership Bonus, the Group Sales Incentive Bonus is paid out on each individual unilevel leg until an affiliate of the same rank is found (eg. a 6A2-3 affiliate receives the Group Sales Incentive Bonus until another 6A2-3 affiliate is found in a unilevel leg).

International Bonus Pool

Enagic take 3% of company-wide sales volume and pay it out to 6A2 or higher ranked affiliates, based on the following qualification criteria:

  • 6A2 – total downline unit sales of 100, 30 of which were made within 8 unilevel levels
  • 6A2-2 – total downline unit sales of 300, 30 of which were made within 8 unilevel levels
  • 6A2-3 – total downline unit sales of 1000, 30 of which were made within 8 unilevel levels
  • 6A2-4 – total downline unit sales of 3000, 30 of which were made within 8 unilevel levels

The Enagic compensation plan does state shares in the International Bonus Pool are “distributed proportionately”, however no further information is provided.

Joining Enagic

Affiliate membership with Enagic is free.

Note however that an affiliate must sell or purchase one Kangen water machine unit in order to qualify for commissions.

If the self-purchase option is chosen, this pegs the defacto cost of Enagic affiliate membership at between $1280 to $5980 (depending on which Kangen unit is purchased).

Conclusion

I’m not going to pretend like I’m an expert in alkaline water ionizer machines, save to say that I’ve never felt I’ve needed one.

And at a starting price of $1280, this isn’t exactly chump-change we’re talking about either.

Multiple Enagic affiliate presentations cited the company’s flagship alkaline water ionizer as the SD 501, which has a price-tag of $3980.

That’s almost 4 grand for treated water.

According to a Kangen FAQ I read the electrolysis unit is good for fifteen years, but that’s still 4 grand for a water machine…

Now before Kangen affiliates jump down my throat about the health benefits of alkaline ionized water, take a step back and realize that to most people, they’re probably just going to see a $4000 water machine. Same as I do.

I mean if you lived in a rubbish country and 4Gs lying around, then maybe. Otherwise I suspect establishing a market of Kangen products is going to pose a serious challenge for a new Enagic affiliate.

That said, the company has been around for years… so obviously there’s a market for these machines.

On the compensation side of things, Enagic is actually pretty well structured.

One glaring issue however is that an affiliate can self-qualify for commissions by purchasing a Kangen unit and then recruiting one other who does the same.

They then duplicate this recruitment and without so much as a single retail sale taking place, commissions are paid out.

Given the cost of a Kangen unit and the inevitable “do you use the product?” question Enagic affiliates going to be asked, this leads itself to a focus on chain-recruitment.

Specific to this kind of product is also the fact that there’s no repeat business, meaning strictly from an opportunity perspective, it’s far more profitable to focus on affiliate recruitment than retail sales (affiliate’s can build downlines for you, retail customers can’t).

Retail sales qualifiers would alleviate this issue, but as it stands there are none throughout the Enagic compensation plan.

As a prospective affiliate you can check with your potential upline as to how many retail sales they’ve made in the last six months, versus that of sales to affiliates.

As an aside, it probably wouldn’t hurt to ask how they qualified on their first sale (whether it was a self-purchase or actual sale), as this is likely what you as a new Enagic affiliate will be doing too.

Other than that, if you think you can market alkaline water ionizer machines that cost thousands of dollars, good luck!