There is a lot of talk about Kyani being a pyramid scheme scam. This Kyani review was written to clear the air on this company.
Kyani in a nutshell
Did a Kyani distributor walk up to you to tell you how this company could help you increase your income quickly?
If your answer was yes, I would like to say Congratulations to you. Most people would hop into the opportunity without thinking twice but you were smart enough to read up information on the company first.
This review is intended to provide in-depth information on Kyani – including the bits distributors would not tell you – and then you can make an informed decision on whether to join the company or not.
I completely understand that some people might not want to sit through this long detailed review due to a lack of time or patience. If you are one of such people, please stick around for a minute and read through the following bullet-form summary of some important things to know about the company:
- Kyani is a real company that sells health and wellness supplements
- To become a distributor of the company, you need to pay $40 for a starter kit
- Next up, distributors purchase a business pack which ranges between $299 and $999
- In order to remain active, distributors must maintain a 100QV monthly volume
- The company operates using a Multi-Level Marketing (MLM) business model
- It is not nearly as easy to succeed as the company lets on. Only 37% of active distributors got paid $10 or more between Sept 2014 and Aug 2015.
- This is certainly not a work-from-home opportunity.
- If you would love to earn money from the comfort of your home, click on the link below.
What is Kyani?
Kyani is an MLM-based company that sells nutritional and health supplements. The company was founded in 2005 by two families, the Hansen family and the Taylor family.
Kyani actually has 4 products but a bundle of any 3 of those products would make the Kyani Triangle of Health.
Here are the products and their prices:
- Distributor Price – $35.95
- Preferred Customer Price – $39.95
- Retail Price – $43.95
- Distributor Price – $35.95
- Preferred Customer Price – $39.95
- Retail Price – $43.95
Kyani Nitro FX
- Distributor Price – $59.95
- Preferred Customer Price – $62.95
- Retail Price – $65.95
Kyani Nitro Xtreme
- Distributor Price – $69.95
- Preferred Customer Price – $74.95
- Retail Price – $79.95
If you purchase these products individually, your profit margin would be between $3 and $10 per sale.
Instead of purchasing the products individually, you could choose to purchase a business pack and get a combo price ranging from $299 to $999. This way, your profit margin of selling an entire pack should be so much higher.
It is actually not mandatory for distributors to purchase products in order to sell them. You could give your sponsor ID to customers and have them purchase directly from the Kyani website. This method might be more convenient, but isn’t more profitable, than purchasing the products yourself, as the profit margin would remain the same.
**To remain an active distributor, you must maintain at least 100QV (Personal Sales Volume) every month.
To be fair, I think the products are marketable. The one problem you might have is getting regular leads to promote the products to and Kyani does not offer proper training in this area.
Other than your friends and family who might be willing to purchase products from you just to help you kickstart your business, you are going to need a proper strategy for targeting people who are interested in getting these supplements.
The “warm market” technique might seem like the most convenient option at first, but it is certainly not the way to go if you want to have any real success with this opportunity.
If you want to learn how to get targeted leads for your business right away, you can skip to the end of the review.
The Business Opportunity
The profit margin for each product is low and it is going to be extremely difficult to make a killing by promoting the products alone.
Like most MLMs, the business opportunity lies in how many people you are able to recruit to become distributors with the company. This is how you earn the big bucks in MLM and Kyani is no different.
Kyani does not even have a lot of products for you to promote. Promoting the products alone would keep you limited to a small audience of people looking for those particular products.
While you might be limited with the products, it’s usually not that hard to find people who are looking for an opportunity to make money.
There is a good chance that a distributor pitched this idea to you and that is why you are reading this review right now.
The cycle is the same as other MLMs. Since you are not given in-depth training on how to get leads, you start by recruiting your friends and family. Then you keep your fingers crossed and hope these people are able to recruit more people. These people now recruit more people and so on.
This continuous cycle is how your group/downline grows and the more people you have in your downline, the more sales they make, the more money you make and the higher rank you achieve within the company.
The whole process is super easy to describe on paper but it is nowhere near as easy to accomplish in real life. In fact, only 24.4% of active Kyani distributors were able to achieve any part of this between September 2014 and August 2015.
Like I said before, family and friends will never lead you to any form of long-term success in any business. You can only have so many friends and family members and at some point, these people will run out.
To be profitable with this company, you will need to find a system that gets you consistent leads. Having a constant flow of leads is really essential to having a successful business anywhere.
Unfortunately, Kyani does not teach you a concrete method to get consistent leads. If you want to learn how to leverage the internet to get leads, check out this review.
On a brighter note, you could get away with just paying the $40 for a starter kit. If you do not purchase the products, you will only need a couple of sales to break even and even if you fail to break even, the loss is not as devastating as most MLMs.
I’m not a big fan of putting the complexities of MLM compensation plans into words. One thing they all have in common is how to highlight how much you could possibly earn while managing to suppress how difficult and unlikely it is to achieve those results.
Instead of reading the compensation plan from me, I will let a distributor of the company explain it to you in the video below.
**I do NOT endorse this video. I do NOT endorse Kyani. I am sharing this video solely for educational purposes.
Let’s skip past the semantics and learn some hard truths:
- Your earnings and rank are dependent on the sales volume of your downline
- The attitude and participation of members in your downline is what determines your success or failure in this business
- Recruiting is necessary but not sufficient to make a killing in this business. To remain successful, you have to follow up on your downline and make sure they remain active distributors
- While you might know your own direct recruits, you might not know their own direct recruits personally. Therefore, your fate largely depends on people you might not know personally
Here is the Kyani Official Income Disclosure Statement for September 2014 through August 2015…
Here are a few things to note:
- Only 37.8% of all active distributors received checks of $10 or more
- Before the Garnet rank, there is actually another rank that was conveniently omitted from this statement.
- This omitted rank is the Qualified Distributor rank and 75.6% of all active distributors fall within this rank
- Based on projections from the chart above, the average monthly gross earnings of Qualified Distributors (75.6% of all active distributors) is less than $74
- Based on the average earnings, 97.2% of all active distributors earn less than $600 per month
- These figures are all gross figures and they do not include any expenses incurred by distributors like product purchases
What I liked
- If you choose not to purchase products, this is a relatively cheap MLM opportunity to join
- Consultants do not have to keep inventory
- The company gives distributors a duplicate website
What I didn’t like
- If you do choose to purchase the products, they are expensive
- In their own words, “Distributors can build income quickly with cash flow growing in size and stability”. This statement is misleading and false
- They do not offer in-depth training on how to get leads
- Low average earnings
- Limited number of products to promote
- The fact that these are health products that might work for some and hurt others
- Low profit margins on selling products alone
Is Kyani a Pyramid Scheme?
Technically, the answer is no. Kyani is not a pyramid scheme. Simple reason is they are a real company that sells real products.
With that said, one could still make a compelling argument that this company is a pyramid scheme. The compensation plan sure makes the company look like a pyramid scheme and I’m not so sure how the company would do if recruiting ended today.
Analyze the company in your own way and come to your own conclusion but I’m willing to give the strength of their products the benefit of the doubt.
I think the products are marketable but if you follow the traditional methods you are taught and bug your family and friends or walk up to strangers, you will find yourself extremely limited in the number of people you can promote the products to.
From the business opportunity angle, there is a high chance of failure for reasons that may not necessarily be down to you. The commitment of the people in your downline, most of whom you might not know, is what determines your success or failure in this business.
If you are not comfortable with the idea of going out to talk to random people about a product or opportunity, you probably should not be considering network marketing at all.
If you would love to build your own successful online business or get consistent leads to any business without recruiting, cold-calling or hard-selling, check out the program that taught me.
Product Name: Kyani
Price: $40 for Starter Kit + $299-$999 on Product Packs (optional)
Overall Ranking: 40/100