When talking to people about getting started with a Nikken business of their own, I often get the “I don’t have any money” excuse. While it is easier if you have at least the sign-up fee to start with, I believe you can build a Nikken business without any money from your own pocket.
There are two things that you need to accomplish to start your business and begin making money.
- Sign up and start your distributorship
- Move up to the Executive rank
I’ll explain how to do that here.
How to Get Started
Getting started with no money is tricky because you don’t have any product to show anyone and you have to cover a $100 fee to open your distributorship with Nikken. What you need to do is pre-sell enough product at retail for cash or check made out to you to cover the wholesale price of the product plus the sign-up fee.
Let’s use the large mSteps magnetic insoles as an example. The retail price is $68 and the wholesale price is $54.40 which gives you $13.60 in profit on each pair.
Don’t forget sales tax and shipping on the insoles you sell. Add $1 to each pair you sell to cover shipping then calculate sales tax at your local rate on the total.
If you sell 8 pairs of the insoles you will have $108.80 in profit, which should be enough to cover the sign-up fee plus any additional tax.
While you’re at it, sell another pair or two so that you can keep a little bit of profit for your efforts.
Now you have enough money in hand to register, get your distributor id and login, and place the order for your customers. You will place one large wholesale order for all of the insoles that you sold and you will personally deliver them when they arrive.
Congratulations! You’re now a new Independent Nikken Wellness Consultant with your first retail orders taken care of. You’ve probably already done more than most other distributors ever do and you haven’t paid one cent out of your own pocket.
Technically speaking, we could stop here. You are signed up and able to make money. But you won’t make as much money as you could on each of your future orders unless we go farther.
How to Reach Your First Rank Advancement
Your current rank is a brand new Direct Distributor and the retail profit on all of your orders is yours. But you don’t make any commissions yet. You have to move up in rank to unlock those.
So you want to reach the Executive rank as quickly as you can.
First, A Note of Caution
Some people think that they need to start recruiting people onto their team right away. You don’t, and it isn’t worth putting any time into at this point.
Anyone you sign up will keep their own retail profits and you don’t earn any commissions yet. As I already said, you have to move up in rank to unlock that benefit.
The sales volume they generate will help you, as I will explain shortly, but you won’t make any money from them.
I’ll be honest. If you join my team and immediately recruit someone, I will earn all the commissions on what both of you sell. That’s great for me at first, but you will get frustrated and quit, then none of us make money. Instead, if I help you build this right so that you make money from the start then you’ll stay with it and we will both make a lot more money over the longterm.
Let me explain a couple of terms that I will use from here on out.
The first one is Personal Point Volume, or PPV. Each product in the Nikken catalog has a volume number, usually equal to the US wholesale price. Your PPV is your accumulated volume for everything you personally buy or sell in a single calendar month. It used to be called just personal volume, or PV, so forgive me if I slip up and just call this PV later on.
The second term is Personal Group Point Volume, or PGPV. This is the total combined PPV of everyone you have recruited onto your team including your own. This used to be called PGV, so again, if I slip up later on you know what I mean.
Let’s say you sold 8 pair of insoles like I suggested in the first section of this article. The large mSteps insoles’ volume is 54, just under the wholesale price. So your 8 pairs have earned you 432 PV. Your PGPV is also 432 because it includes your PPV and there isn’t anyone else on your team yet.
Move Up In Rank
Now we can get back to moving you up in rank.
There are two requirements to advance from Direct to Executive, but one of them contributes toward the other.
The first requirement is to earn 100 PPV every month. This is an on-going monthly requirement for everyone Executive and above to get paid the commissions they earn. The requirement doesn’t apply to Directs because they don’t get any commissions.
And there are two ways to get PPV. One is to buy product for yourself, perhaps an autoship order. Autoships are nice because you get a 10% discount on qualifying products, like nutritional supplements. The other is what you’ve already done to get to this point – sell product at retail to customers.
The second requirement is to earn 1,500 PGPV in up to 3 consecutive months. When I did it you had to do it all in one month, but now you have three. That’s only 500 PGPV per month of which you should already have 100 PPV from the first requirement. You only have to come up with another 400 PGPV each month.
If you’ve been following this plan so far, the 8 pairs of insoles you have already sold netted you 432 PPV. That covers the 100 PPV requirement and gets your really close to the minimum 500 PGPV that you want contribute toward the 1500 PGPV requirement in your first month.
Just to be clear, the second requirement is 1500 PGPV. Nikken gives you 3 months to build it up, but you can do it in just 1 or 2 months if you want to.
As I said before, I really don’t recommend recruiting people onto your team at this point because you won’t make any money on them. But if you do, their volume will contribute to that additional 400 PGPV goal each month. So if you meet someone and they are eager to join your team, then by all means, sign them up. I just don’t recommend that you make team building your focus at this point.
You Did It!
Once you satisfy both requirements you get promoted to an Executive Distributor. Yay!
So, what does that mean?
You still get your retail profits. That will always be the best part. There will always be more money in selling product at retail to customers than in recruiting people into your downline.
The Executive rank unlocks a 10% commission.
Along with the PPV, wholesale price and retail price, each product in the Nikken catalog also has a CV amount. It is usually somewhere between 50% and 100% of the PPV depending on the product.
Your commission as an Executive equals 10% of whatever that number is.
Also, when you add new Direct distributors on your team you will earn the 10% commission on their combined CV until they move up to Executive. Now it makes sense to start adding good people to your team.
Well, 10% commission is only half of what it can be, so reaching the Silver rank is next. But we’ll talk about that later. You can’t reach Silver until you achieve Executive first.
Keep selling the product to customers at retail. Like I already said, retail profit is the biggest part of any product sale that we as distributors get to keep. Retail sales also quickly covers the monthly 100 PPV requirement.
Recruit new people onto your team, show them how to retail the product and move up to Executive, then help them recruit people onto their teams.
Another note of caution. Only sign up people who are serious about building a solid business. It might be easy to get people excited and sign them up but it’s too much work to keep them motivated unless they want it for themselves.
So, there you have it. How to build a Nikken business without spending a cent from your own pocket. If you do have money to invest in your business at the start then you can go faster. It’s easier when you can have product to show people and let them experience before buying. You will also be able to move up the ranks more quickly because your own purchases count toward your volume.
Are you ready to get started? If you want to do it the way I described above then contact me and we’ll set up a time to talk. My phone number and email address are at the top of this page.
If you want to go the more “traditional” method then either contact me, find out more here, or just go ahead and sign up and I’ll contact you. I also want to be clear that this is not the way that I have been building my business. I made the upfront investment and made the additional small investment to build this all online.
We’ll figure out what works bests for you.