Is Enagic a pyramid scheme? Truth About Their True Nature Exposed!

Welcome to my Enagic review!

I’ve heard about Enagic one day when I visited my mom.

She’s telling about this amazing product that would improve your health and reduce the risk of diseases.

I was excited at first but was dumbfounded to find out that what she’s talking about was a thousand dollar water ionizing machine.

So, okay, but I politely discouraged her from spending or investing anything on such items.

The chances are you’ve also heard of them too, that’s why you here. You may be wondering—is Enagic a pyramid scheme? Or is a thousand dollar investment worth it?

If so, then you’ve come to the right place.

In this review, we’ll take a look at this thousand dollar investment, whether they’re worth your time and money, or they just another MLM company that you should stay away from.

Once again, is Enagic a pyramid scheme? Or are they a legitimate source income?

Let’s find out…


Enagic Review

  • Name: Enagic
  • Website: enagic.com
  • Founder: Hironari Oshiro
  • Price: No membership fee but you have to purchase product worth of $4,980
  • Recommended?: Nope.
is enagic a pyramid scheme

What is Enagic?

Enagic is an MLM (Multi-Level Marketing) company that sells machines that ionized water.

The device is supposed to make people healthier.   

It was founded in 1974 by Hironari Oshiro. The company did not immediately start as an MLM company, but only converted into one in 2003. 

They are also the current leading producers of alkaline machines in the world.

They refer to their products as Kangan, which means “return to origin.”

Their water filtration machine is supposed to help reduce the body’s acidity level, which in turn improves our health.

 They have several Kangan machine products, and I won’t discuss them here since our focus is on their business model. Besides, they all do the same—filtrate and ionized water.
is enagic a pyramid scheme

The Enagic business opportunity and its income streams

The hallmark of any MLMs is its highly complicated compensation plans. And Enagic is no exception.

It seems that they’re intentionally doing so to mislead potential new members. This would somehow prevent them from asking further questions.

As I watched one of Enagics’ promotional videos (you can watch it here), I found some questionable statements.

For one, they insistently mentioned that they are not an MLM or pyramid scheme. But as they showed their business model, it still has the downline structure.

You still have to create a lower network to earn significant income and breakeven from your initial investment of $5,000.

And sure enough, after a few minutes in the video, they say that you don’t have to make the sales directly. And your lower network can do it for you (one characteristic of an MLM). This is misleading since they are a direct sales business.

For the income stream, Enagic says that they offer several ways on how you can earn.

  • Direct Sales Commissions
  • Override Commissions
  • Educational Allowance
  • Monthly Incentives
  • Quarterly Incentives
  • Title Incentive
  • Group Sale
  • Ukon DD Commission
  • Step-up Award

Also, you have to take note that you have to rank for you to access their high paying features

Let’s go over their compensation plan briefly.

Direct Sales Commission

This feature is pretty much self-explanatory. You earn income from retail sales.

 The retail sale goes up as your rank increases. And you get promoted by making retail sales.
is enagic a pyramid scheme

There are no monthly quotas, but you have to bear in mind how expensive the item is. You need to be a hell of a salesman to sell a type of water-ionizing equipment.

Override Commissions

 These are commissions you earn from your lower network.
is enagic a pyramid scheme
is enagic a pyramid scheme

It may look enticing at first sight, but you have to remember that it may take a long time before you can even breakeven from the $5,000 purchase you’d made.

They say no membership fees or monthly charges, but they make you purchase their products. Well, it’s not really free membership.

Educational Allowance

It’s a feature that qualifies distributors in the levels of 6A and higher. It’s mentioned that the distributor shall earn $200 per retail sales.

6A 8 Level Group Incentive (Monthly)

It’s compensation that pays per 8 level groups.

They explained that when you managed to make one or more monthly eight-point sales. Your expected income should equal to $20 per unit or $22 if the distributor is 6A2.

6A Title Incentive

It is a sort of reward given to distributors that reached 6A and above:

  • 6A - $3,000
  • 6A2 - $6,000
  • 6A2-2 - $12,000
  • 6A2-3 - $25,000
  • 6A2-4 - $50,000
  • 6A2-5 - $100,000

However, you need to sell ten water-ionizing machines within the qualifying period. So that’s ten $5,000 machines in a short period.

6A 8 Level Group Incentive (Quarterly)

It’s also compensation that pays per 8 level groups.

You’d earn $14 per unit if your quarterly is three or more eight-point sales.

The potential rank earnings are also as follows—6A2 ($1,000) and 6A2-2 ($2,000).

6A Step-up Award

To make it simple—it’s a bonus given to 6A distributors if their downline also promoted to 6A.

6A Group Sale Award

They mentioned that there’s no monthly sales quota. But for this bonus, you and your lower network apparently have to reach a certain volume to qualify for this bonus.

It was not mentioned how much the team would earn.

Ukon DD Commission

Enagic provides 8 point bonus when the distributor makes a sale for its Ukon DD products.

Each point yields $40, but they will only pay this out when the distributor accumulates a total of $200.

For more of their business opportunity, click here.

If you want a more reliable source of income, and that’s less risky, then you have to check out my number one work-at-home recommendation.

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How can I join Enagic?

They mention—no membership fees and no monthly charges, but you have to experience their product, which would cost you around $4,980.

In my opinion, it’s a bit misleading. Even their compensation plan is misleading. They said they’re not a pyramid scheme or MLM when it’s clear that you still have to build a lower line.

But if you still want to try their business opportunity, click here.

is enagic a pyramid scheme

Can you make a reliable income from Enagic?

I find selling a $5,000 machine a hard sell.

Personally, I don’t think that it is worth spending that much on an alkaline water machine.

With this being said—recruiting and making a retail sale would be difficult.

Another point I want to make is that they are indeed in an MLM.

Although they insistently mention that they are a direct sales company, their compensation structure suggests otherwise.

In general, making money with MLMs (especially with an expensive product like Enagic) is extremely rare.

According to Jon Taylor’s book, “Multi-Level Marketing Unmasked,” people who join MLMs lose money than gain any profits.

It was further explained that this is so because of two main reasons—capitalization and recruitment.

Capitalization is where the MLM agent buys the products of the company to improve sales volume.

Although Enagic doesn’t encourage capitalization, you have to personally experience their $5,000 product.

As you may have observed in their compensation plan, it would take longer periods to even breakeven.

Also, you have to build a large lower network to earn a significant income.

The products are very expensive, and some may even find the machine irrelevant. Thus, you have to be a really good salesman to sell these products.


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Is Enagic a pyramid scheme?

I don’t think Enagic is a scam or a pyramid scheme. However, it’s a bit sketchy that they try to disguise themselves as a purely direct selling business.

They may tell potential recruits that they are neither an MLM or pyramid scheme, but even for an untrained observer, you may notice the need to build a lower network to earn a higher income.

They pride themselves as a member of the DSA (Direct Sales Association) but remember the Advocare was also a member.

 Advocare was charged with a pyramiding scheme and fined last year.

What I Don't Like About Enagic

Success is based on your lower network

As mentioned earlier, the distributors’ chance of earning higher-income is dependent via its lower network.

No membership fee, but…

I think it’s kind of misleading when they mentioned no membership and monthly fees, but you have to buy their products first.

Their products cost $4,980.

In this case—is Enagic a pyramid scheme?

Well, I don’t believe so. But I recommend that you search for other options.

Health claims are scientifically inconclusive

It’s a common practice among MLMs, especially those in the Health and Wellness niche, to provide any sort of health benefits. This is even though some don’t have any conclusive scientific basis.

Health claims for ionized water are not approved by the FDA (Food and Drug Administration).

One order per customer

One reason why most MLMs in the industry of health and wellness are profiting is because of repeat orders.

This means that they have the ability to improve sales volume, which would, in turn, increase the income.

For Enagic, it is unlikely that one customer would purchase again after a retail sales, considering the price of the machine and its five years warranty.

This means that you have to continue searching for new customers.

What I Like About Enagic

In existence for 40 years

They are in business for 40 years.

Enagic actually only adopted the MLM business model in 2003.

Accreditations and Awards

They received various awards and accreditation from several institutions like the DSA, ISO certified, and a Gold Seal from the Water Quality Association.

Outstanding Support

They provide great support to new members.

Members have access to tools like Business Stats, Prospecting Tools, Advertising Campaigns, Email Templates, etc.

A+ BBB rating, but…

The Better Business Bureau or the BBB is one way most people check the credibility of a company.

However, we shouldn’t entirely rely on them because there are fraudulent companies that obtained a positive overall rating in the BBB.

This was extensively discussed in an article written by CNN—“Slammed by the Government, A-rated by the Better Business Bureau.”

Final thoughts

If you ask me whether I would invest in a water processing MLM, I’d rather not.

I like my water fresh and unprocessed. That’s good water for me!

But that’s just me. If you believe in their cost, then you could try if you want.

In any case, I don’t recommend Enagic or any MLMs for that matter.

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Thank you for taking the time off and reading my Enagic review.

Until then…

 Peace!

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