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| dxn scam or not? |
One of the top and popular company in the MLM realm is DXN. It was founded in Malaysia in 1993 by Mr. Siow Jin Lim. This company is not only marketing food supplements using Ganoderma or Lingzhi, but they also are cultivating and manufacturing their own products. Aside from that they also are in categories like household products, water treatment systems, personal care, skin care, food and beverages and cosmetic products. DXN is well known from its motto: "One Dragon One World One Market and One Mind". In 2010 they have over 4 million distributors from from 153 countries worldwide. (see: http://en.wikipedia.org/wiki/DXN_%28Brand%29)
This company has already passed the 10 years mark. The usual basis for a MLM company stability. Majority of MLMs have very short life span. Those who pass this 10 year mark will more likely last long.
Why DXN survived
The major reason I see why DXN have lasted for more than ten years is that they manufacture their own product. They do not rely on suppliers and they have their own farm and factory. In this way they save a lots of money. Another reason for DXN's longevity is that they do not use the controversial binary system in their compensation plan. Although binary is more lucrative,this system has a huge tendency of the members to concentrate and earn mainly by recruitment. Everybody who is knowledgeable in MLM knows the more lucrative the pay plan is, the more chance the MLM company shortens its life span.Additional pros about the company is their strict users policy and procedures that members are obliged to follow. This lowers DXN's reputation degradation due to minimal bad business practice and ugly experiences of people (see: http://www.dxnusa.com/forms/USEnPolicyProcedure.pdf).
Possible gray areas
DXN has been around for a long time now and distributors are rampant everywhere. Innate to MLM, they do not have area rights and in DXN, it is clearly stated in number 10 of their users policy and procedures.10. Restriction / Right to Area
All distributors are not allowed to have any restriction or right to a particular geographic
area. Distributors are not permitted to declare that they have any specific right on a
particular area.
This now pose area saturation problems, unlike franchise business they have area contracts. They are protected from loss of sales and costumers due to competition from their own branch in the same area. But this protection is not naturally existing in MLMs. One of the great killers of MLM is market saturation and in DXN, like many MLMs this problem has not been addressed.
DXN have a wide range of products but mainly they are into food supplements and health beverages making use of Ganoderma or Lingzhi, which they culture and process themselves. Even with an own farm and factory, their prices are still no match to their competitions that are distributed via normal business model. A good example of this brand is Jimm's 7 in 1 coffee, It is not distributed via MLM so it is much cheaper and are easily available to everybody on retail stores. It has lots of healthy herbs in it namely Agaricus blazei Murll, Korean ginseng, Spirulina and Ganoderma. It is a popular brand here in the Philippines so I can not help but consider it as a heavy contender of DXN.
Disclaimer
The article above is my personal views and opinions that is the product of my own research, critical thinking and common sense. I am no expert in journalism or in any field. I am just an ordinary person expressing my own thoughts.If you wish to add suggestions, agree or disagree with me your valuable comments below are very welcome
:)
Is DXN Scam or not?
