Kyani presents itself as a network marketing company offering a unique business opportunity for people to earn a supplemental income. In this Kyani review, we take a close look at the opportunity.
If you are considering Kyani as a possible business opportunity, this article will help you determine if it’s right for you and how much you can expect to earn as a Kyani distributor.
Is Kyani a good business opportunity? Kyani NOT a good business opportunity. According to the Kyani Earning Disclosure Statement, most Kyani distributors LOSE money.
In evaluating Kyani, I objectively analyzed five factors based on information found on the Kyäni website. You can use this information to determine if Kyani is right for you.
Kyani: Just Another MLM.
Kyani describes itself as a network marketing company. The terms Network Marketing, Multi-level Marketing, MLM and Consumer Direct Marketing are all labels describing the same business model. In this article I use the term Multi-level Marketing, or MLM, to describe Kyani.
Also, in some places on the Kyani website, Kyani refers to their distributors as Independent Business Partners. Calling their distributors Independent Business Partners is intentionally misleading. Remember, a Kyani distributor is not a business partner. They are a contractual commission salesperson and nothing more.
Throughout this article, I refer to the characteristics of a pyramid scheme. Pyramid schemes are said to be illegal. Unfortunately, as you will that see, authorities permit many MLMs to function like pyramid schemes.
Is Kyani a Legitimate Business Opportunity?
If you are thinking about joining Kyani to build a business, you might be excited about the potential for earning money. Perhaps you have fantasies of making a lot of money.
Most people join businesses like Kyani because they need more revenue coming in each month. Unfortunately, the vast majority of Kyani distributors spend more on products than they earn with the business.
For most distributors, their Kyani business is a liability that creates unnecessary expenses each month. In this article, I show you why this happens and what it takes to succeed as a Kyani distributor.
As you read this article, it is essential that you curb your enthusiasm and consider the facts as objectively as you can.
If you make the wrong decision about Kyani, you may lose more money than you earn, waste your time and possibly damage personal relationships.
Before you invest a dime in Kyani, consult with a friend or family member who can offer an objective opinion. Invite them to read this article. It is always wise to take as much time as you possibly can to decide. Hasty decisions often lead to regret.
Remember, Kyani is selling you a dream that you can have your own business and make money. Unfortunately, as you will see in a moment, most Kyani distributors lose money.
To determine if Kyani is a genuine business opportunity, I used information from the Kyani website to answer five questions.
Jon Taylor created these questions as a means of determining if an MLM is a pyramid scheme or scam. Taylor’s research into MLMs is available on the Federal Trade Commission’s website.
Unfortunately, the laws governing MLMs have become so lax that most MLMs now have more in common with scams than they do with legitimate direct selling opportunities.
Here are the five questions I asked to determine if Kyani is a legitimate business opportunity;
- Is success with Kyani dependent on recruiting?
- Does Kyani permit unlimited recruiting in a specific area?
- Are Kyani distributors required to spend a lot of money to get started and continue to spend money to qualify for commissions or bonuses?
- When a sale is made, does the Kyani distributor making the sale earn about the same as someone upline who had nothing to do with the sale?
- Does Kyani pay overrides or commissions on more than four levels above the distributor making the sale or purchase?
In this article, I focus on these questions one at a time and show you why the answers are essential. Ultimately, by answering these questions, you can determine how much money you might earn with Kyani and your prospects for success.
Is Success with Kyani dependent on Recruiting?
Success with Kyani is dependent on recruiting. Look at the Kyani compensation plan, and you’ll see that the most money is earned by distributors who have recruited the largest downline.
And, at every level above “Qualified Distributor,” a distributor is required to recruit.
Incidentally, Kyani hides their compensation plan. To find it, go to the bottom of the Kyani website, click on “Compliance,” then click on “Compensation Plan Information.”
Like a pyramid scheme, if Kyani stopped recruiting, the company would collapse.
Kyani Compensation Plan has 15 levels. One level earns money only through retail sales. Fourteen levels require recruiting.
Direct selling scams focus on chain recruiting instead of selling products to the public. Chain recruiting is when a company pays the greatest rewards for recruiting new distributors who are then rewarded for recruiting more distributors, etc. and on it goes in an endless chain.
Kyani emphasis on recruiting is abundantly clear.
Chain recruiting, as seen in the Kyani Compensation Plan, combined with other unethical policies, leverage the wealth of a sales force. It channels money up through the organization into the pockets of the founder and top-level distributors.
Because success as a Kyani distributor is dependent on recruiting, Kyani is probably a product-based pyramid scheme.
Does Kyani Permit Unlimited Recruiting in Any Given Area?
Kyani does permit unlimited recruiting. As a Kyani distributor, you will be competing against all other Kyani distributors, including the ones you recruit.
As soon as you sign up as a distributor, you’ll discover how difficult it is to recruit new distributors. Prospects have already heard the Kyani sales pitch. Or worse, they tried Kyani and lost money.
With a legitimate sales opportunity, your territory is protected. For example, you might have a territory of 12,000 people or a five-mile radius around your home. By controlling territories, a legitimate marketing opportunity offers realistic income potential.
Kyani does not protect territories. It promotes unlimited recruiting wherever Kyani is legal. Unlimited recruiting creates the misleading perception that you have an opportunity to recruit more people. However, it doesn’t work that way.
Unlimited recruiting is a telltale sign of a pyramid scheme. A pyramid scheme cannot survive where territories are protected because such a restriction would limit recruiting.
Are Kyani distributors required to spend money to get started and continue to spend money to qualify for commissions or bonuses?
Kyani distributors are required to buy bulk products to launch or boost their business and then continue to buy products each month to qualify for commissions and bonuses.
These bulk product packs include; Starter Pack ($40), Product Pack ($299), Builder Pack ($569), and Premium Business Builder ($999).
Also, each month a Kyani distributor must either purchase or sell a minimum of 100QV (Qualifying Volume) before they are paid commissions and bonuses. 100QV is assumed to equal $100. To advance in rank, a distributor must meet increasingly higher QV levels up to 1000QV per month which they can qualify for through personal purchases.
Also, at every level of the Kyani Compensation Plan, a distributor is required to buy a minimum amount of product.
Pay to Play.
Requiring Kyani distributors to buy a minimum amount of product is “Pay to Play.” “Pay to Play” is typical of pyramid schemes.
Kyäni distributors can boost their monthly QV by buying more product. “Pay to Play” encourages Kyani distributors to create dummy distributor accounts to create the illusion of success.
It is essential that you understand this next point because it succinctly exposes the true nature of the Kyani beast. When you join Kyani, you must pay the company for the privilege of selling their products. Plus, you must continue to pay for that privilege each month by buying more product.
Thousands of companies will pay YOU to sell their products. Only companies like Kyani expect you to pay them for the chance to make them money. It’s crazy. Please give this fact some thought. Why would you pay a company so you can sell their product and make money for them? They should be paying you.
Kyani pushes the expenses of running their company down on the shoulders of distributors who can least afford it. They expect you to pay them and then work for free.
A genuine direct selling company does not make you pay for the privilege of earning money for the company.
When you add the cost of buying products to the costs of doing business as a Kyani distributor, you’ll discover you’re losing money. Once you see the Kyani deception, it won’t surprise to learn that most Kyani distributors lose money.
The cost of buying products can add up to thousands of dollars. If you had been required to invest thousands when you joined Kyani, the nature of the scheme would be easy to see. However, Kyani milks you a little each month and soothes your suspicions with assurances that you have a business and one day you’ll be successful. Until then, keep buying products.
Does Kyani pay overrides or commissions on more than four levels above the distributor making the sale or purchase?
Kyani pays overrides on at least twelve levels. The Kyani Compensation Plan shows seventeen ranks!
More than four levels are unnecessary. A pay structure with more than four levels of overrides is an aggressive and exploitative funnel moving money from the bottom of the organization to the top. Such organization is typical of a pyramid scheme.
Legitimate direct selling companies have no more levels than is necessary to manage the sales force. In most cases only four are required; Local, State, Regional and National.
The more levels in an MLM, the more leverage is created to take money from thousands of distributors by forcing them to buy products and channeling that money to the founder and a few of the highest-ranking distributors.
Leverage is residual income. Please understand that the residual income is the result of forcing distributors in the downline to buy products. The wealth at the top of Kyani comes out of the pockets of their distributors.
Imagine a Kyani distributor recruits five distributors. And assuming those five distributors recruit five, and so one down the line. And, assume a $5 commission is earned on each sale. These meager assumptions reveal a pyramid’s exponential growth.
The example below is for only six levels. Kyani has 12 levels! The more levels a MLM has, the more wealth is concentrated at the top.
The questions I used to evaluate Kyani are based on research conducted by Dr. Jon Taylor. Taylor’s research can be found on the Federal Trade Commission’s website.
According to Taylor, if the first four questions or all five are answered with a ‘yes’ the distributors are probably being exploited and may come to harm.
Kyani distributors are more like customers than distributors. The probability that a Kyäni distributor will ever earn a positive cash flow is near zero.
Read the Kyani Earning Disclosure Statement!
The Kyani Earning Disclosure Statement will tell you everything you need to know about your chances of success with Kyani. Read it carefully. It’s intentionally misleading, but the facts are in there.
To find the Kyani Earning Disclosure Statement, scroll to the bottom of the Kyani website, click on “Compliance,” then click on “Disclaimers, Disclosures, and Important Information.”
Look at the left column under the “Ranks.” You’ll see that the Kyani Earning Disclosure Statement starts with the Garnet Rank. There are three ranks under Garnet that Kyani is not reporting. Why would they do that? Because those ranks didn’t earn anything.
Now, add up all the percentages in the second column. All the percentages they reported add up to 24%. The Kyani Earning Disclosure Statement is only showing the earnings for the top 24%.
Look across the top of the table to see how much a Garnet distributor made, and you’ll see they averaged $74 a month!
Remember, a Garnet distributor is required to purchase or sell at least $100 of product a month before they are qualified to earn commissions. Actually, it’s worse than that.
Now that we’ve learned what a Garnet distributor earns let’s take a look at what they had to do to earn it.
To earn an average of $74 a month, a Garnet level Kyani distributor must either personally purchase or sell 100 Member Qualifying Volume of product, plus have a downline that earns 1,000 Member Qualifying Volume, plus 400 Qualifying Volume outside their largest downline leg. Plus, a Garnet level has purchased a minimum $299 Starter Pack.
If 1 Qualifying Volume point is equal to $1 US, a Garnet distributor must move $1500 worth of product a month to make $74. That’s a return of less than 1% BEFORE deductions are made for operating expenses and products purchased!
Business expenses and mandatory product purchases can easily push a Garnet distributor into losing money each month. Can you see how it is nearly impossible to have positive cash flow?
Incidentally, it takes about 18 months of work to achieve the rank of Garnet and earn that whopping $74.
Since Kyani only reports income of the top 24% of distributors, and since 9.48% of these are Garnet distributors earning an average $74 a month, we can determine that 85% of Kyani earn $74 a month or LESS!
There are a lot of businesses you can do to make more than $74 a month.
Kyani is NOT an Opportunity.
When you factor in the required purchases a distributor must make when they join Kyani and the monthly purchases they must continue to make, you can see that Kyäni is NOT an opportunity. It’s a liability.
Let’s keep digging. Reading the Kyani Earning Disclosure Statement is like watching a slow-motion train wreck. It’s fun as long as you’re not on the train.
How Many Kyani Distributors Earn Enough to Live On?
The Sapphire distributor earns an average of $1,561 a month. That would be tough to live on. A third of that would be paid in income tax, knocking the actual revenue down to about $1000. Then if you subtract business expenses and product costs, it’s much less than a $1000.
A Ruby distributor earns an average of $3,569 a month. That’s the first level that might pay enough to live on. In other words, only the Kyani distributor ranks of Ruby and above earn enough to live on.
Less than 1%!
If we add up the percentage of distributors in the Ruby rank and above, we can determine the percentage of Kyani distributors who might earn enough to live on. And the number is! Less than 1%.
If your chances were any lower, you’d have 0% chance, as in zero, as in it ain’t going to happen.
It doesn’t matter how hard you work or how smart you are, the odds that you will make enough to live on as a Kyani distributor is just a bump above zero.
The only opportunity Kyani offers is to the founder and the handful of distributors who were there when the company was new; everyone else is exploited by the Kyani scheme.
What it Takes to Succeed with Kyani .
In this Kyani review, we’ve established that less than 1% of Kyani distributors earn enough to live on.
The vast majority of Kyani distributors will spend hundreds, if not thousands of dollars, waste weeks and months of their life, lose money and quit.
The more money a distributor spends on product, the more money her upline will make.
If you want to succeed with Kyani, you must be able to gain someone’s trust and then tell them a straight face lie. And, you must be able to do that over and over again, day after day, month after month, regardless of how many lives you harm.
The lie you must tell them is that they can succeed with Kyani when in fact they will probably only lose money.
The Kyäni Compensation Plan.
The Kyani compensation plan is one of the most complex compensation plans I’ve ever seen.
Please remember the purpose of the compensation plan is to create the illusion that you can make a lot of money with Kyani.
The complex nature of the compensation plan numbs your rational mind so you cannot make a rational decision. That’s the point. If you could evaluate the Kyani rationally, you would quickly see that it is not an opportunity. It’s a liability.
Is Kyani a Pyramid Scheme? According to information published on the Federal Trade Commission’s website, Kyani meets the definition of a product-based pyramid scheme as defined by Dr. Jon Taylor.
Is Kyani legit? Kyani is a legitimate MLM company. However, according to the Kyani Income Disclosure Statement found on the Kyani website, the vast majority of Kyani distributors lose money.
If you found this article helpful or have experience with Kyani to share, please leave a comment below. Thank you!