December 13, 2024 • 28 mins
What do a $6,500 water machine, misleading promises of financial freedom, and a whole lot of pseudoscience have in common? This week, Victoria dives deep into one of the most predatory MLM schemes yet—unpacking how high-pressure sales tactics and debt traps leave people drowning, not thriving. From bogus health claims to a compensation plan so confusing it’s practically a trap, this episode pulls back the curtain on how these schemes exploit vulnerability and sell dreams that often turn into financial nightmares.
Whether you’ve been curious about the “magic” of Kangen water or just love a good MLM takedown, this episode will fire you up with facts, expose the truth, and empower you to spot the red flags before they reel you in. Don’t miss this deep dive into the dark side of "too good to be true." Tune in now!
Acknowledgement of Country By Natarsha Bamblett aka Queen Acknowledgements.
The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.
See omnystudio.com/listener for privacy information.
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Episode Transcript
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Speaker 1 (00:00):
Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
the Order Kerni Whaltbury and a waddery woman. And before
we get started on She's on the Money podcast, I
would like to acknowledge the traditional custodians of the land
of which this podcast is recorded on a wondery country,
acknowledging the elders, the ancestors and the next generation coming through.
(00:23):
As this podcast is about connecting, empowering, knowledge sharing and
the storytelling of you to make a difference for today
and lasting impact for tomorrow.
Speaker 2 (00:33):
Let's get into it.
Speaker 3 (00:34):
She's on the Money, She's on the Money.
Speaker 2 (00:57):
Hello, and welcome to She's on the Money, the podcast
that helps you make savvy financial decisions while dodging financial
traps disguised as golden opportunities. My friends, I am your host,
Victoria Devine, and today we're going to dive into the
murky world of promises, pyramids, and water. Yeah you heard
me write water, specifically the six and a half thousand
(01:20):
dollar water machine that claims to transform your life, your health,
and maybe even your finances. If you've been with us
for our past episodes on multi level marketing, you probably
already know how these schemes work, and if you haven't,
check out our deep dive on why ninety nine percent
of people lose money in MLMs and why they are
(01:42):
so hard to leave. Trust me, you're going to want
that context because today we're going to focus on one
particular MLM that's energic and it's cage and water machines.
It's a scheme that is so slick it even markets
itself as a movement and as a brother. But here's
the twist. This isn't your average multi level marketing business
(02:05):
pedaling makeup or candles. N Ergic is in a league
of its own as a high ticket opportunity with sky
high costs to join and even bigger risks when they
go wrong. And that's exactly what I get to unpack today.
Because I have done all of the snooping for you.
We're going to be talking about how they steep by
(02:25):
in set and energic apart, and why it might be
even more damaging than the MLMs we've already covered before.
Stick around because this one is a doozy, So grab
a coffee or maybe just a cup of plane tapwater
and we can get into it. If you've listened to
me talk about multi level marketing businesses before, you will
know that the key difference between a multi level marketing
(02:46):
business and a pyramid scheme is that a legitimate multi
level marketing business has a product. So let's take a
closer look at the product that sets kang and Water
apart from all those other dubious ventures. Spoiler alert, it's water,
but not just any water. This is Kangan water, which
(03:07):
we're told means return to origins in Japanese. It sounds
almost spiritual, doesn't It Like it's going to whisk your
way to some primordial, utopian version of yourself. Except it's
still just water. Enalgic claims that their machines have been
transforming lives in Japan for over five decades. What's their
(03:29):
pitch Kanga water quote restores your body to its original
alkaline state. Now I don't know about you, but I
didn't realize my body had wandered off from its alkaline origins. Apparently,
regular old tap water just isn't going to cut the
mustard anymore. Clearly, I have been missing out on the
life changing power of expensive H two. Their top of
(03:52):
the range machine is going to set you back six
seven hundred dollars, and Nalgic makes sure that no matter
you'll find financial situation, you still have the brilliant opportunity
to buy into this scheme. If you don't have six
and a half grand lying around for a Cangam water machine,
don't worry, though. They are so happy to help offer
(04:13):
you financing options to make the purchase completely accessible. They say.
These payment plans often come with interest rates that start
get this at just ten percent, but will jump to
a staggering twenty five percent if you miss a payment.
That's not convenient, my friend. That is a financial trap,
(04:34):
and it doesn't stop there. In some cases, distributors go
as far as encouraging recruits to turn to payday loans
or other really high interest financing options to buy their
way into this scheme. According to an ABC investigation, one
ex distributor get this, this was wild to me was
even directed to a payday lender owned by another and
(04:56):
Nergic distributor. Talk about a conflict of interest, and it
got worse from there. This same person, who couldn't even
afford one machine, was pressured into buying multiple machines to
quote skip the queue in a Nargic's Labyrinth commission structure
and Nalgic's own policies explicitly prohibit distributors from on selling
(05:18):
machines that they purchase for themselves. The hypocrisy is completely astounding.
It's a system that seems designed to push people into
financial ruin. You can't even sell it if you buy it,
and it doesn't suit your lifestyle. But the message here
is very clear, whatever it takes, you just need to
get that machine. These predatory payment practices don't just lock
(05:39):
people into debt, they actually prey on financial vulnerability. They
leave participants in a worse off position than the day
that they started. For a company that quotes sells freedom,
it seems like the only people that are getting free
are the ones who are cashing in at the very top.
It's driving me insane. The more research I do into this,
(06:00):
the more angry I get, which should come as no
surprise because it's me. But then get this, we're not
just talking about the machine. We're not just talking about
financial ruin, because obviously that's what makes me angry in
the first place. Then let's get into the science behind
Kanga water. Because if there's one thing I can not stand,
it's pseudoscience being sold as facts. According to the investigating
(06:24):
the Health claims and regulatory considerations of kanga water study
a legit study. Imagine your business having a study done
on it. Anyway, the magic of kanga water comes from
a process called electrolysis, which makes the water alkaline and
supposedly filled with antioxidants thanks to dissolving hydrogen gas. Sounds
(06:45):
kind of impressive, right, magic maybe, But here's the kicker.
The actual scientific backing is as thin as a discount
supermarket piece of toilet paper. The study does go on
to point out that while molecular hydrogen might show antioxidant
effects in controlled lab settings, there is zero concrete evidence
(07:05):
proving kanga water delivers anything meaningful to your health and hydration. Sure,
alkaline water hydrates you just like every other kind of water.
The study outright says that there is no significant advantage
over regular tap water or filtered water, and according to
the University of Texas, the pH of the body is
tightly regulated. If you change your diet, you might actually
(07:28):
see some changes in the pH of your saliva or
your urine, because these are waste products, but that is it.
In fact, if you were able to physiologically change the
pH of your entire body, you would die. Your body
fights to maintain its regular pH. So what are you
really paying for with that six and a half thousand
(07:49):
dollar machine. Well, it's a whole lot of marketing buzzwords
and honestly false hope. It doesn't stop there, though it's
driving me insane. The regulatory oversight for their outlandish claim
is practically nonexistent. They market this as the holy grail
of health, while the science barely scratches the surface of plausibility.
The study rightly calls this out as misleading, and honestly,
(08:13):
from my perspective, it's predatory. People are forking out thousands
of dollars, thousands of dollars that they arguably don't even have,
believing that they're investing in their health and getting wealthy,
when all they're really doing is lining somebody else's pockets.
If you've tuned into our past multi level marketing episodes,
you're going to know that one of the most predatory
(08:35):
tactics these schemes use is selling the idea of community.
It's not just about the product or even the money. Honestly,
it's about creating a sense of belonging for people who
currently don't have it. These schemes thrive on targeting people
who feel stuck, stuck in maybe their jobs, or their finances,
or maybe just their lives in general. And what do
(08:56):
they offer this company. It offers transformation, it offers freedom,
it offers an escape from the so called rat race.
It's not just a sales pitch. It's a lifeline for
people who are desperate for change. But here's the twist
with Energic. The product, the six and a half thousand
(09:17):
dollar water machine, it's not the main attraction. They're six
and a half thousand dollar product. Isn't even the thing
that they talk about that often. The big players in
this game, they barely even talk about the machine. What
they're really selling is a lifestyle. It's a fantasy of
financial freedom, of self improvement, and living your best life,
(09:40):
all while getting to work from home, or from your
traveling caravan, or more accurately, from your phone. And this
makes me so mad. They know exactly who to target.
We're going to take the rural financial Movement as a
really good example. This group. They prey on regional and
rural women, promising them a chance to break free from
(10:04):
the limitations of geography and circumstance. Literally, that's what they say.
Then there's the Legacy Brotherhood, which is just another one
which takes a different angle, offering men a brotherhood to
improve their health, their wealth, and their purpose through a
very supportive community. It's not just about selling water machines.
It's about creating a sense of identity for those who
(10:28):
might have felt like they're lost on their way and
if you're wondering how far they'll go to reel you in.
The Legacy Brotherhood doesn't just sell a sense of identity.
They're going to charge you five hundred and ninety nine
dollars for the privilege of even starting the journey. Their
Men's Legacy Mastermind promises to help men take control of
their health, their wealth, and their purpose in just a
(10:50):
few days. Honestly, it sounds transformational. When you start reading
into it, you're like, this is pretty good, Like this
makes sense to me. People need this, Like genuinely, men's
mental health is important. So when I started to read
into it, even I started to slip down the slope
of going, yeah, you're right, men's health is important, Like
men need to talk more about money and like I
would love to have more purpose. They had me as
(11:12):
a female thinking that a brotherhood was definitely something I
should be thinking about. But what you're paying for really
is a very vague motivational talk and a lot and
I mean a lot of buzzwords. The only guaranteed transformation
that's going to happen here is the six hundred dollars
that is going to transform into not being in your
bank account. It's not just about creating a sense of belonging,
(11:34):
it's about monetizing it from the very first step. And
let's not forget the top tier sellers in Australia who
run the Freedom Era. This is a ninety nine dollars
a month subscription based coaching platform, right, so that's how
they get you in. They're not going to be saying, hey,
the welcome we have this six and a half thousand
(11:55):
dollar water machine and I'd be like, well, I don't
want to buy that. They sell a lifestyle. They don't
even post about this damn water machine anywhere. They post
about their Freedom Era. It's all over social media. You
can go and look at it. I'm probably going to
be blocked from them after this episode drops, So you
go Ham, please have fun. But this Freedom Era, right,
you sign up to them because you see them on
(12:15):
socials and you think this is great. I would love
to live a life exactly like they do. It's a
ninety nine dollars a month subscription based coaching platform and
it's less about teaching you to sell water and more
about selling yourself. They kind of teach you how to
craft the illusion of success on social media so that
you can pull others into the same web the machine.
(12:37):
It's absolutely secondary from everything I have looked into what
they're really selling. It's a dream, a dream at that
for most that turns into a nightmare of debt and
complete disappointment. So while doing some research, I discovered one
chat script that was given to the subscribers of This
Freedom Era, and according to the ABC, it included quote
(13:00):
an invented boyfriend that you've been able to retire because
of your multi level marketing success. It's a legitimate script
that they give you so you can make up a boyfriend,
so that you can convince people that you have a
life you do not have. Obviously, I'm going to share
that with you, so let's go. Here is the script.
I totally relate having retired justin last year. From the minds,
(13:23):
I understand how hard it feels when you are sacrificing
your time for money. I would love to share more
info with you on how I've been able to change
my life. When do you think you'll have some time
to watch a quick video? I'm so excited to be
able to connect with you and guide you to create
the life you deserve on your own terms. No wonder.
(13:44):
People often refer to these multi level marketing companies as cults.
They don't just sell a product or even a business opportunity.
They're selling an entire way of life. They isolate you
from outside perspectives. They draw you into this tight knit
community where questioning the system it's taboot. Don't do that,
and they make you feel like failure is your fault,
definitely not theirs. They prey on your vulnerabilities. They convince
(14:08):
you that their way is the only way that you
are ever going to achieve success, happiness, and freedom. It's
not just manipulative, it is down right predatory. And that's
exactly why I am here to shine a light on it.
I'm going to take a quick break because I'm getting
way too heated, but when we come back, I'm going
to share a story that stopped me in my DM tracks.
(14:29):
One of our community members reached out about her underage brother.
It's shocking, it's predatory, and it perfectly exposes just how
far these tactics are going to go. So don't go anywhere.
I'll be right back. Welcome back, my friends. Before the break,
I mentioned a story that perfectly illustrates how predatory these
(14:51):
schemes can be, and honestly, this one flawed me. It's
about a young boy, he was seventeen, who was drawn
into the web of an MLM under the guise of
helping his family. The details, they are outrageous and they
are going to show you just how far these recruiters go.
This community member shared a Facebook post that one of
(15:11):
the recruiters had written about her brother and shared publicly.
So here's what it said. Moments like these make me
realize how much of an impact I'm actually making. This
person traveled two and a half hours on the trains
from Northern Brisbane to come down to the Gold Coast
to meet me about kang and water and find out
how it can help him and his mother. The knowledge
(15:33):
I have is valuable don't take it for granted. I
have a voice and I'm going to use it to
improve this world we live in, not to harmit like
a lot of people out there. Oh did I mention
he's seventeen, finish high school last week? This kid has
his priorities straight, health and wealth hashtag year of growth. Now,
(15:56):
the community member, this young boy's sister told us more
about what was really happening behind the scenes. She said,
my brother was seventeen, but all I can compare it
to is grimming because the conversations were going on for
months prior to this meeting, going back to when he
was sixteen. He was hearing nothing of what I was saying,
(16:16):
basically me begging him to not get involved because he
was essentially being brainwashed. My mum was struggling hard financially,
and they really held on to that to make him
think he was going to be able to save her
from this. Now you might be thinking, surely this is illegal,
and you know what, my friend, you would be absolutely correct.
It is absolutely even against their own terms and conditions,
(16:39):
and Magic explicitly states in their terms and conditions all
individuals who are distributors must be at least eighteen years
of age and must not be a student, so recruiting
a seventeen year old fresh outer high school boy completely
against the rules. But here's the thing. When you've got
thousands of dollars to payback for your so called miracle
(17:02):
water machine, it seems the moral or the legality line
starts to really blur. This particular distributor tried to convince
a seventeen year old to sign up under his mum's name,
and luckily he didn't. These schemes thrive on desperation, and
recruiters will often resort to literally any measure, even targeting
(17:23):
underage kids, it seems to keep their own financial heads
above water. It's unethical, it's exploitative, and it shows just
how little accountability these multi level marketing structures enforce when
money is on the line. And speaking of exploitation, let's
dive in to a Nargic's baffling compensation plan. I've mentioned
(17:44):
before that MLMs loved to bamboozle recruits by overly complexifying
commission structures, right, but let me tell you this, A
Nargic's plan is one of the most confusing I have
ever seen, and trust me, I'm a legitimate finance expert,
and it gave me a headache trying to decipher it.
You can imagine what it would be like for the
average person who can't read a spreadsheet, doesn't understand it,
(18:07):
and doesn't have the capacity to do so, what it
would be like if you are being pitched this quote opportunity.
So here's a little peek into this chaos that I've
been able to decipher. Nagic uses something called an eight
point commission structure, which it has a warning itself to
not be confused with an eight level structure, because, of course,
(18:28):
why would you make it simple. Each product, like their
six and a half thousand dollars Caangam water machine, generates
commission points based on the seller's rank. But wait, there's
of course more. Your commission also depends on the model
of the water machine that you sell, the number of
units you've sold historically, and even the payment method. For example,
a one A distributor might earn like two hundred and
(18:51):
ninety dollars per point on a Caangum water machine sale,
whereas somebody who is a six A distributor, they're going
to earn seventeen hundred and forty dollar per point for
the same sale, exactly the same sale. Are you still
with me?
Speaker 1 (19:04):
Good?
Speaker 2 (19:04):
Because here's where it gets worse. If you want to
keep your higher commissions so you want to stay at
your six A level, you're going to need to sell
regularly within really strict time frames. If you don't meet
those quotas, your earning shrink faster than your bank account
after buying one of those machines, and if you haven't
made a sale in two years, you actually get kicked out.
(19:26):
You lose your ability to earn entirely. These layers of
complexity are designed to confuse recruits, making them feel like
the potential earnings are just around the corner if they
work hard enough and sell another machine. It's like a
financial obstacle. Course, only the people at the top of
the pyramid, I mean structure derito really stand a chance
(19:48):
of winning. The rest. They're left running in circles. They're
trying to decode the fine print while sinking deeper and
deeper into debt. It's no wonder so many people quit
before they even see a single dollar. I have tens
I would say nearly one hundred messages in my Instagram
dms when I asked about kanga water of people saying
they had bought the six and a half thousand dollars
(20:08):
machine and seen not one dollar in a return. Let's
dig a little bit more into Nalgic's own earnings disclosures,
because if their compensation plan wasn't enough to scare you off,
the reality of what people actually earn might So starting
at the bottom of the pyramid, sixty percent of Nalgic
distributors sit at the lowest rank. They earn a median
(20:32):
yearly income of two hundred and eighty five dollars. That's
less than twenty four dollars a month, barely enough for
a coffee subscription, let alone a side hustle. Next we
move to the second rank, so we step up a
little bit. We're only fourteen percent of distributors actually quote
make it already, we're seeing a massive drop off of
people advancing in their structure. The median income here five
(20:54):
hundred and eighty dollars per year. And then in the
third rank, where only five points three percent of distributors
get to sit, the medium income jumps to a whopping
one thousand and thirty two dollars every single year. Let's
put that into perspective, though eighty percent of participants are
earning a median of less than one thousand, one hundred
(21:18):
dollars a year. That's less than one hundred dollars a month.
And I don't think that we are forgetting this, but
the kang and water machine alone costs six and a
half thousand dollars, not to mention the training subscriptions, the
marketing materials, and potentially financing interest if you didn't have
the cash up front and went for a buy now,
pay later or some type of payday loan. Let's not
(21:39):
even get started on the time invested that is needed
to keep up with the sales quota and the recruiting
that you'll have to do. And now let's go all
the way to the top of the pyramid, where the
real money supposedly is at the very top tier, where
only zero point zero two percent of distributors sit. There
are exactly in the whole country get this, seven people, yep, seven,
(22:03):
according to the earnings disclosure, they're the ones who have
cracked that elusive million dollar mark that gets touted as
a realistic possibility. That's seven people out of more than
thirty thousand people that are currently signed up. So when
you hear claims of limitless earning potential, just remember the
(22:23):
actual numbers. The odds of success are staggeringly low, and
the cost of trying well they're painfully high. The reality is,
for most people, this isn't a business opportunity. It is
a financial trap. And let's not forget about the buzz
around legacy payments that they talk about. Oh my god,
(22:45):
Instagram post after Instagram post, I've seen so many tiktoks
about people saying I do this because I'm setting my
children up for a financially secure future with the naji's
legacy payments. Because if there's one thing multi level business
says love, it's sprinkling vague promises of generational wealth to
real people in legacy payments are touted as one of
(23:08):
the ultimate rewards for hitting the top ranks in an ergic,
with the promise that these payments can even be passed
down to your children after you die. Sounds amazing, right.
I love the idea of intergenerational wealth. Right, So let's
peel back the layers here, because if there's one thing
I want, it's a clear story. When it comes to
multi level marketing, businesses like if I'm going to do something,
(23:30):
I'm going to do it right. So you know what
I did. I picked up the phone and I called them,
and they hit me with the classic multi level marketing
run around. First a really vague line about it having
to do with your rank and then your sales, and
then I was told that if I joined as a distributor,
their quote sponsor would explain it all that I had
to join first. And then when I pressed further, because
(23:51):
you know it's a massive financial commitment, I was told
to send an email. Request the email obviously, they never replied.
Transer parrency apparently isn't part of this package. So what's
the real story here? From the research that is available online,
these legacy payments aren't as simple as a nargic makes
them sound. In fact, when I call them, they can't
(24:12):
even explain them. Sure, if you reach and maintain a
certain rank through continued sales, you're going to become eligible
for these payments. But here's the catch. They aren't just
free and clear passive income streams like you'd get if
you invested money. It's not money that your money makes.
Making money to keep these payments going. Your kids or
whoever is going to inherit your core legacy. They actually
(24:33):
have to take over your distributor spot and maintain sales
to remain eligible, so they're pipelining their business. That means
that these aren't true inheritance payments. There's nothing legacy about that.
They're just another way to keep people locked into the system,
and then a way to keep their kids locked into
the same system. Your legacy isn't wealth, it's ongoing pressure
(24:55):
to sell overpriced water machines. Misleading, absolutely, because while the
the idea of leaving something for your children is very powerful,
the reality is much closer to passing down a liability
than a financial windfall. Plus, these so called legacy payments
aren't even guaranteed. They reportedly happen at a najic's discretion,
(25:16):
meaning even if you managed to hit the elusive rank
and then you meet all of the lofty sales targets,
you might not actually see a sent and that's completely legal.
All right, I'm done here. I will probably talk about
these guys again, because you best believe I have a
lot of fun diving into the who, what, why, when,
where and how. I've seen every single Instagram, every single TikTok,
(25:37):
on these people. I have called them, I have stalked them.
In fact, when I did call them and said, oh,
I'm going to need some more information, they very easily
handed over a password to their password protected website, thinking
that that was a way to get me in. Sorry, guys,
if you're listening to this, I did use that information
to make this podcast, maybe talking about you wrap it up.
(26:00):
What makes a Nergic stand out from other multi level
marketing companies is its position as what they call a
high ticket opportunity. The kang and water machines cost a
draw dropping six and a half grand, meaning recruits are
stepping into significant debt before they even get to sell one.
They can't even sell it on or put it on
Facebook Marketplace if they decide it's not for them. This
(26:22):
isn't the usual buy some inventory and get started up,
set up. This is a really high stakes game from
the get go, and that price tag creates a cascade
of problems, from predatory financing schemes to really relentless pressure
to recruit and sell just to stay afloat. And at
the end of the day, a Nargic and its Kang
Water Empire thrive on big promises and little accountability. They
(26:44):
don't just sell water, guys, They're selling dreams, and for
most people, those dreams come at a devastating costs. So
what do I want you to take away from this?
If something sounds too good to be true, my friend,
it probably is. I'm going to stick to Tap. You
should too. It's cheaper, just as effective, and it's not
going to lock you into a lifetime of debt. Remember,
(27:07):
you deserve better than overpriced pseudoscience wrapped in false hope
and water. If today's episode fired you up just as
much as it did me, and you want to join
me on my cruseaide against multi level marketing businesses, make
sure you follow my personal Instagram because the girls that
she's on the money aren't letting me have the rants
that I have. Over there, It's Victoria Underscore Divigne and
(27:27):
I'm always sharing updates in sence, gossip and the occasional
sassy takedown of schemes just like this. And while you're
at it, I'd love it if you hit follow or
subscribe on the podcast so that you never miss an episode.
It's a really helpful way of supporting us to continue
to create content. Together, we can keep shining a light
on these really shady practices to help more people make informed,
(27:49):
savvy financial decisions. So I guess let's stick it to
the multi level marketing companies, one glass of water at
a time. The advice shared on She's on the Money
is general in nature and does not consider your individual circumstances.
She's on the Money exists purely for educational purposes and
(28:11):
should not be relied upon to make an investment or
financial decision. If you do choose to buy a financial product,
read the PDS TMD and obtain appropriate financial advice tailored
towards your needs. Victoria Divine and She's on the Money
are authorized representatives of money. Sheper pty Ltd ABN three
two one six four nine two seven seven zero eight
(28:34):
AFSL four five one two eight nine
Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
the Order Kerni Whaltbury and a waddery woman. And before
we get started on She's on the Money podcast, I
would like to acknowledge the traditional custodians of the land
of which this podcast is recorded on a wondery country,
acknowledging the elders, the ancestors and the next generation coming through.
(00:23):
As this podcast is about connecting, empowering, knowledge sharing and
the storytelling of you to make a difference for today
and lasting impact for tomorrow.
Speaker 2 (00:33):
Let's get into it.
Speaker 3 (00:34):
She's on the Money, She's on the Money.
Speaker 2 (00:57):
Hello, and welcome to She's on the Money, the podcast
that helps you make savvy financial decisions while dodging financial
traps disguised as golden opportunities. My friends, I am your host,
Victoria Devine, and today we're going to dive into the
murky world of promises, pyramids, and water. Yeah you heard
me write water, specifically the six and a half thousand
(01:20):
dollar water machine that claims to transform your life, your health,
and maybe even your finances. If you've been with us
for our past episodes on multi level marketing, you probably
already know how these schemes work, and if you haven't,
check out our deep dive on why ninety nine percent
of people lose money in MLMs and why they are
(01:42):
so hard to leave. Trust me, you're going to want
that context because today we're going to focus on one
particular MLM that's energic and it's cage and water machines.
It's a scheme that is so slick it even markets
itself as a movement and as a brother. But here's
the twist. This isn't your average multi level marketing business
(02:05):
pedaling makeup or candles. N Ergic is in a league
of its own as a high ticket opportunity with sky
high costs to join and even bigger risks when they
go wrong. And that's exactly what I get to unpack today.
Because I have done all of the snooping for you.
We're going to be talking about how they steep by
(02:25):
in set and energic apart, and why it might be
even more damaging than the MLMs we've already covered before.
Stick around because this one is a doozy, So grab
a coffee or maybe just a cup of plane tapwater
and we can get into it. If you've listened to
me talk about multi level marketing businesses before, you will
know that the key difference between a multi level marketing
(02:46):
business and a pyramid scheme is that a legitimate multi
level marketing business has a product. So let's take a
closer look at the product that sets kang and Water
apart from all those other dubious ventures. Spoiler alert, it's water,
but not just any water. This is Kangan water, which
(03:07):
we're told means return to origins in Japanese. It sounds
almost spiritual, doesn't It Like it's going to whisk your
way to some primordial, utopian version of yourself. Except it's
still just water. Enalgic claims that their machines have been
transforming lives in Japan for over five decades. What's their
(03:29):
pitch Kanga water quote restores your body to its original
alkaline state. Now I don't know about you, but I
didn't realize my body had wandered off from its alkaline origins. Apparently,
regular old tap water just isn't going to cut the
mustard anymore. Clearly, I have been missing out on the
life changing power of expensive H two. Their top of
(03:52):
the range machine is going to set you back six
seven hundred dollars, and Nalgic makes sure that no matter
you'll find financial situation, you still have the brilliant opportunity
to buy into this scheme. If you don't have six
and a half grand lying around for a Cangam water machine,
don't worry, though. They are so happy to help offer
(04:13):
you financing options to make the purchase completely accessible. They say.
These payment plans often come with interest rates that start
get this at just ten percent, but will jump to
a staggering twenty five percent if you miss a payment.
That's not convenient, my friend. That is a financial trap,
(04:34):
and it doesn't stop there. In some cases, distributors go
as far as encouraging recruits to turn to payday loans
or other really high interest financing options to buy their
way into this scheme. According to an ABC investigation, one
ex distributor get this, this was wild to me was
even directed to a payday lender owned by another and
(04:56):
Nergic distributor. Talk about a conflict of interest, and it
got worse from there. This same person, who couldn't even
afford one machine, was pressured into buying multiple machines to
quote skip the queue in a Nargic's Labyrinth commission structure
and Nalgic's own policies explicitly prohibit distributors from on selling
(05:18):
machines that they purchase for themselves. The hypocrisy is completely astounding.
It's a system that seems designed to push people into
financial ruin. You can't even sell it if you buy it,
and it doesn't suit your lifestyle. But the message here
is very clear, whatever it takes, you just need to
get that machine. These predatory payment practices don't just lock
(05:39):
people into debt, they actually prey on financial vulnerability. They
leave participants in a worse off position than the day
that they started. For a company that quotes sells freedom,
it seems like the only people that are getting free
are the ones who are cashing in at the very top.
It's driving me insane. The more research I do into this,
(06:00):
the more angry I get, which should come as no
surprise because it's me. But then get this, we're not
just talking about the machine. We're not just talking about
financial ruin, because obviously that's what makes me angry in
the first place. Then let's get into the science behind
Kanga water. Because if there's one thing I can not stand,
it's pseudoscience being sold as facts. According to the investigating
(06:24):
the Health claims and regulatory considerations of kanga water study
a legit study. Imagine your business having a study done
on it. Anyway, the magic of kanga water comes from
a process called electrolysis, which makes the water alkaline and
supposedly filled with antioxidants thanks to dissolving hydrogen gas. Sounds
(06:45):
kind of impressive, right, magic maybe, But here's the kicker.
The actual scientific backing is as thin as a discount
supermarket piece of toilet paper. The study does go on
to point out that while molecular hydrogen might show antioxidant
effects in controlled lab settings, there is zero concrete evidence
(07:05):
proving kanga water delivers anything meaningful to your health and hydration. Sure,
alkaline water hydrates you just like every other kind of water.
The study outright says that there is no significant advantage
over regular tap water or filtered water, and according to
the University of Texas, the pH of the body is
tightly regulated. If you change your diet, you might actually
(07:28):
see some changes in the pH of your saliva or
your urine, because these are waste products, but that is it.
In fact, if you were able to physiologically change the
pH of your entire body, you would die. Your body
fights to maintain its regular pH. So what are you
really paying for with that six and a half thousand
(07:49):
dollar machine. Well, it's a whole lot of marketing buzzwords
and honestly false hope. It doesn't stop there, though it's
driving me insane. The regulatory oversight for their outlandish claim
is practically nonexistent. They market this as the holy grail
of health, while the science barely scratches the surface of plausibility.
The study rightly calls this out as misleading, and honestly,
(08:13):
from my perspective, it's predatory. People are forking out thousands
of dollars, thousands of dollars that they arguably don't even have,
believing that they're investing in their health and getting wealthy,
when all they're really doing is lining somebody else's pockets.
If you've tuned into our past multi level marketing episodes,
you're going to know that one of the most predatory
(08:35):
tactics these schemes use is selling the idea of community.
It's not just about the product or even the money. Honestly,
it's about creating a sense of belonging for people who
currently don't have it. These schemes thrive on targeting people
who feel stuck, stuck in maybe their jobs, or their finances,
or maybe just their lives in general. And what do
(08:56):
they offer this company. It offers transformation, it offers freedom,
it offers an escape from the so called rat race.
It's not just a sales pitch. It's a lifeline for
people who are desperate for change. But here's the twist
with Energic. The product, the six and a half thousand
(09:17):
dollar water machine, it's not the main attraction. They're six
and a half thousand dollar product. Isn't even the thing
that they talk about that often. The big players in
this game, they barely even talk about the machine. What
they're really selling is a lifestyle. It's a fantasy of
financial freedom, of self improvement, and living your best life,
(09:40):
all while getting to work from home, or from your
traveling caravan, or more accurately, from your phone. And this
makes me so mad. They know exactly who to target.
We're going to take the rural financial Movement as a
really good example. This group. They prey on regional and
rural women, promising them a chance to break free from
(10:04):
the limitations of geography and circumstance. Literally, that's what they say.
Then there's the Legacy Brotherhood, which is just another one
which takes a different angle, offering men a brotherhood to
improve their health, their wealth, and their purpose through a
very supportive community. It's not just about selling water machines.
It's about creating a sense of identity for those who
(10:28):
might have felt like they're lost on their way and
if you're wondering how far they'll go to reel you in.
The Legacy Brotherhood doesn't just sell a sense of identity.
They're going to charge you five hundred and ninety nine
dollars for the privilege of even starting the journey. Their
Men's Legacy Mastermind promises to help men take control of
their health, their wealth, and their purpose in just a
(10:50):
few days. Honestly, it sounds transformational. When you start reading
into it, you're like, this is pretty good, Like this
makes sense to me. People need this, Like genuinely, men's
mental health is important. So when I started to read
into it, even I started to slip down the slope
of going, yeah, you're right, men's health is important, Like
men need to talk more about money and like I
would love to have more purpose. They had me as
(11:12):
a female thinking that a brotherhood was definitely something I
should be thinking about. But what you're paying for really
is a very vague motivational talk and a lot and
I mean a lot of buzzwords. The only guaranteed transformation
that's going to happen here is the six hundred dollars
that is going to transform into not being in your
bank account. It's not just about creating a sense of belonging,
(11:34):
it's about monetizing it from the very first step. And
let's not forget the top tier sellers in Australia who
run the Freedom Era. This is a ninety nine dollars
a month subscription based coaching platform, right, so that's how
they get you in. They're not going to be saying, hey,
the welcome we have this six and a half thousand
(11:55):
dollar water machine and I'd be like, well, I don't
want to buy that. They sell a lifestyle. They don't
even post about this damn water machine anywhere. They post
about their Freedom Era. It's all over social media. You
can go and look at it. I'm probably going to
be blocked from them after this episode drops, So you
go Ham, please have fun. But this Freedom Era, right,
you sign up to them because you see them on
(12:15):
socials and you think this is great. I would love
to live a life exactly like they do. It's a
ninety nine dollars a month subscription based coaching platform and
it's less about teaching you to sell water and more
about selling yourself. They kind of teach you how to
craft the illusion of success on social media so that
you can pull others into the same web the machine.
(12:37):
It's absolutely secondary from everything I have looked into what
they're really selling. It's a dream, a dream at that
for most that turns into a nightmare of debt and
complete disappointment. So while doing some research, I discovered one
chat script that was given to the subscribers of This
Freedom Era, and according to the ABC, it included quote
(13:00):
an invented boyfriend that you've been able to retire because
of your multi level marketing success. It's a legitimate script
that they give you so you can make up a boyfriend,
so that you can convince people that you have a
life you do not have. Obviously, I'm going to share
that with you, so let's go. Here is the script.
I totally relate having retired justin last year. From the minds,
(13:23):
I understand how hard it feels when you are sacrificing
your time for money. I would love to share more
info with you on how I've been able to change
my life. When do you think you'll have some time
to watch a quick video? I'm so excited to be
able to connect with you and guide you to create
the life you deserve on your own terms. No wonder.
(13:44):
People often refer to these multi level marketing companies as cults.
They don't just sell a product or even a business opportunity.
They're selling an entire way of life. They isolate you
from outside perspectives. They draw you into this tight knit
community where questioning the system it's taboot. Don't do that,
and they make you feel like failure is your fault,
definitely not theirs. They prey on your vulnerabilities. They convince
(14:08):
you that their way is the only way that you
are ever going to achieve success, happiness, and freedom. It's
not just manipulative, it is down right predatory. And that's
exactly why I am here to shine a light on it.
I'm going to take a quick break because I'm getting
way too heated, but when we come back, I'm going
to share a story that stopped me in my DM tracks.
(14:29):
One of our community members reached out about her underage brother.
It's shocking, it's predatory, and it perfectly exposes just how
far these tactics are going to go. So don't go anywhere.
I'll be right back. Welcome back, my friends. Before the break,
I mentioned a story that perfectly illustrates how predatory these
(14:51):
schemes can be, and honestly, this one flawed me. It's
about a young boy, he was seventeen, who was drawn
into the web of an MLM under the guise of
helping his family. The details, they are outrageous and they
are going to show you just how far these recruiters go.
This community member shared a Facebook post that one of
(15:11):
the recruiters had written about her brother and shared publicly.
So here's what it said. Moments like these make me
realize how much of an impact I'm actually making. This
person traveled two and a half hours on the trains
from Northern Brisbane to come down to the Gold Coast
to meet me about kang and water and find out
how it can help him and his mother. The knowledge
(15:33):
I have is valuable don't take it for granted. I
have a voice and I'm going to use it to
improve this world we live in, not to harmit like
a lot of people out there. Oh did I mention
he's seventeen, finish high school last week? This kid has
his priorities straight, health and wealth hashtag year of growth. Now,
(15:56):
the community member, this young boy's sister told us more
about what was really happening behind the scenes. She said,
my brother was seventeen, but all I can compare it
to is grimming because the conversations were going on for
months prior to this meeting, going back to when he
was sixteen. He was hearing nothing of what I was saying,
(16:16):
basically me begging him to not get involved because he
was essentially being brainwashed. My mum was struggling hard financially,
and they really held on to that to make him
think he was going to be able to save her
from this. Now you might be thinking, surely this is illegal,
and you know what, my friend, you would be absolutely correct.
It is absolutely even against their own terms and conditions,
(16:39):
and Magic explicitly states in their terms and conditions all
individuals who are distributors must be at least eighteen years
of age and must not be a student, so recruiting
a seventeen year old fresh outer high school boy completely
against the rules. But here's the thing. When you've got
thousands of dollars to payback for your so called miracle
(17:02):
water machine, it seems the moral or the legality line
starts to really blur. This particular distributor tried to convince
a seventeen year old to sign up under his mum's name,
and luckily he didn't. These schemes thrive on desperation, and
recruiters will often resort to literally any measure, even targeting
(17:23):
underage kids, it seems to keep their own financial heads
above water. It's unethical, it's exploitative, and it shows just
how little accountability these multi level marketing structures enforce when
money is on the line. And speaking of exploitation, let's
dive in to a Nargic's baffling compensation plan. I've mentioned
(17:44):
before that MLMs loved to bamboozle recruits by overly complexifying
commission structures, right, but let me tell you this, A
Nargic's plan is one of the most confusing I have
ever seen, and trust me, I'm a legitimate finance expert,
and it gave me a headache trying to decipher it.
You can imagine what it would be like for the
average person who can't read a spreadsheet, doesn't understand it,
(18:07):
and doesn't have the capacity to do so, what it
would be like if you are being pitched this quote opportunity.
So here's a little peek into this chaos that I've
been able to decipher. Nagic uses something called an eight
point commission structure, which it has a warning itself to
not be confused with an eight level structure, because, of course,
(18:28):
why would you make it simple. Each product, like their
six and a half thousand dollars Caangam water machine, generates
commission points based on the seller's rank. But wait, there's
of course more. Your commission also depends on the model
of the water machine that you sell, the number of
units you've sold historically, and even the payment method. For example,
a one A distributor might earn like two hundred and
(18:51):
ninety dollars per point on a Caangum water machine sale,
whereas somebody who is a six A distributor, they're going
to earn seventeen hundred and forty dollar per point for
the same sale, exactly the same sale. Are you still
with me?
Speaker 1 (19:04):
Good?
Speaker 2 (19:04):
Because here's where it gets worse. If you want to
keep your higher commissions so you want to stay at
your six A level, you're going to need to sell
regularly within really strict time frames. If you don't meet
those quotas, your earning shrink faster than your bank account
after buying one of those machines, and if you haven't
made a sale in two years, you actually get kicked out.
(19:26):
You lose your ability to earn entirely. These layers of
complexity are designed to confuse recruits, making them feel like
the potential earnings are just around the corner if they
work hard enough and sell another machine. It's like a
financial obstacle. Course, only the people at the top of
the pyramid, I mean structure derito really stand a chance
(19:48):
of winning. The rest. They're left running in circles. They're
trying to decode the fine print while sinking deeper and
deeper into debt. It's no wonder so many people quit
before they even see a single dollar. I have tens
I would say nearly one hundred messages in my Instagram
dms when I asked about kanga water of people saying
they had bought the six and a half thousand dollars
(20:08):
machine and seen not one dollar in a return. Let's
dig a little bit more into Nalgic's own earnings disclosures,
because if their compensation plan wasn't enough to scare you off,
the reality of what people actually earn might So starting
at the bottom of the pyramid, sixty percent of Nalgic
distributors sit at the lowest rank. They earn a median
(20:32):
yearly income of two hundred and eighty five dollars. That's
less than twenty four dollars a month, barely enough for
a coffee subscription, let alone a side hustle. Next we
move to the second rank, so we step up a
little bit. We're only fourteen percent of distributors actually quote
make it already, we're seeing a massive drop off of
people advancing in their structure. The median income here five
(20:54):
hundred and eighty dollars per year. And then in the
third rank, where only five points three percent of distributors
get to sit, the medium income jumps to a whopping
one thousand and thirty two dollars every single year. Let's
put that into perspective, though eighty percent of participants are
earning a median of less than one thousand, one hundred
(21:18):
dollars a year. That's less than one hundred dollars a month.
And I don't think that we are forgetting this, but
the kang and water machine alone costs six and a
half thousand dollars, not to mention the training subscriptions, the
marketing materials, and potentially financing interest if you didn't have
the cash up front and went for a buy now,
pay later or some type of payday loan. Let's not
(21:39):
even get started on the time invested that is needed
to keep up with the sales quota and the recruiting
that you'll have to do. And now let's go all
the way to the top of the pyramid, where the
real money supposedly is at the very top tier, where
only zero point zero two percent of distributors sit. There
are exactly in the whole country get this, seven people, yep, seven,
(22:03):
according to the earnings disclosure, they're the ones who have
cracked that elusive million dollar mark that gets touted as
a realistic possibility. That's seven people out of more than
thirty thousand people that are currently signed up. So when
you hear claims of limitless earning potential, just remember the
(22:23):
actual numbers. The odds of success are staggeringly low, and
the cost of trying well they're painfully high. The reality is,
for most people, this isn't a business opportunity. It is
a financial trap. And let's not forget about the buzz
around legacy payments that they talk about. Oh my god,
(22:45):
Instagram post after Instagram post, I've seen so many tiktoks
about people saying I do this because I'm setting my
children up for a financially secure future with the naji's
legacy payments. Because if there's one thing multi level business
says love, it's sprinkling vague promises of generational wealth to
real people in legacy payments are touted as one of
(23:08):
the ultimate rewards for hitting the top ranks in an ergic,
with the promise that these payments can even be passed
down to your children after you die. Sounds amazing, right.
I love the idea of intergenerational wealth. Right, So let's
peel back the layers here, because if there's one thing
I want, it's a clear story. When it comes to
multi level marketing, businesses like if I'm going to do something,
(23:30):
I'm going to do it right. So you know what
I did. I picked up the phone and I called them,
and they hit me with the classic multi level marketing
run around. First a really vague line about it having
to do with your rank and then your sales, and
then I was told that if I joined as a distributor,
their quote sponsor would explain it all that I had
to join first. And then when I pressed further, because
(23:51):
you know it's a massive financial commitment, I was told
to send an email. Request the email obviously, they never replied.
Transer parrency apparently isn't part of this package. So what's
the real story here? From the research that is available online,
these legacy payments aren't as simple as a nargic makes
them sound. In fact, when I call them, they can't
(24:12):
even explain them. Sure, if you reach and maintain a
certain rank through continued sales, you're going to become eligible
for these payments. But here's the catch. They aren't just
free and clear passive income streams like you'd get if
you invested money. It's not money that your money makes.
Making money to keep these payments going. Your kids or
whoever is going to inherit your core legacy. They actually
(24:33):
have to take over your distributor spot and maintain sales
to remain eligible, so they're pipelining their business. That means
that these aren't true inheritance payments. There's nothing legacy about that.
They're just another way to keep people locked into the system,
and then a way to keep their kids locked into
the same system. Your legacy isn't wealth, it's ongoing pressure
(24:55):
to sell overpriced water machines. Misleading, absolutely, because while the
the idea of leaving something for your children is very powerful,
the reality is much closer to passing down a liability
than a financial windfall. Plus, these so called legacy payments
aren't even guaranteed. They reportedly happen at a najic's discretion,
(25:16):
meaning even if you managed to hit the elusive rank
and then you meet all of the lofty sales targets,
you might not actually see a sent and that's completely legal.
All right, I'm done here. I will probably talk about
these guys again, because you best believe I have a
lot of fun diving into the who, what, why, when,
where and how. I've seen every single Instagram, every single TikTok,
(25:37):
on these people. I have called them, I have stalked them.
In fact, when I did call them and said, oh,
I'm going to need some more information, they very easily
handed over a password to their password protected website, thinking
that that was a way to get me in. Sorry, guys,
if you're listening to this, I did use that information
to make this podcast, maybe talking about you wrap it up.
(26:00):
What makes a Nergic stand out from other multi level
marketing companies is its position as what they call a
high ticket opportunity. The kang and water machines cost a
draw dropping six and a half grand, meaning recruits are
stepping into significant debt before they even get to sell one.
They can't even sell it on or put it on
Facebook Marketplace if they decide it's not for them. This
(26:22):
isn't the usual buy some inventory and get started up,
set up. This is a really high stakes game from
the get go, and that price tag creates a cascade
of problems, from predatory financing schemes to really relentless pressure
to recruit and sell just to stay afloat. And at
the end of the day, a Nargic and its Kang
Water Empire thrive on big promises and little accountability. They
(26:44):
don't just sell water, guys, They're selling dreams, and for
most people, those dreams come at a devastating costs. So
what do I want you to take away from this?
If something sounds too good to be true, my friend,
it probably is. I'm going to stick to Tap. You
should too. It's cheaper, just as effective, and it's not
going to lock you into a lifetime of debt. Remember,
(27:07):
you deserve better than overpriced pseudoscience wrapped in false hope
and water. If today's episode fired you up just as
much as it did me, and you want to join
me on my cruseaide against multi level marketing businesses, make
sure you follow my personal Instagram because the girls that
she's on the money aren't letting me have the rants
that I have. Over there, It's Victoria Underscore Divigne and
(27:27):
I'm always sharing updates in sence, gossip and the occasional
sassy takedown of schemes just like this. And while you're
at it, I'd love it if you hit follow or
subscribe on the podcast so that you never miss an episode.
It's a really helpful way of supporting us to continue
to create content. Together, we can keep shining a light
on these really shady practices to help more people make informed,
(27:49):
savvy financial decisions. So I guess let's stick it to
the multi level marketing companies, one glass of water at
a time. The advice shared on She's on the Money
is general in nature and does not consider your individual circumstances.
She's on the Money exists purely for educational purposes and
(28:11):
should not be relied upon to make an investment or
financial decision. If you do choose to buy a financial product,
read the PDS TMD and obtain appropriate financial advice tailored
towards your needs. Victoria Divine and She's on the Money
are authorized representatives of money. Sheper pty Ltd ABN three
two one six four nine two seven seven zero eight
(28:34):
AFSL four five one two eight nine
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