Sunday, December 22, 2024

Thousands of women are being funnelled into an MLM promising ‘financial freedom’, but what’s the real cost?

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Women in regional Ausrtalia are signing up to a multi-level marketing scheme selling water ionisers, looking for financial ‘freedom’.()

People across regional Australia are selling a curious Japanese machine that “electrolyses” tap water and promises “triple health” for the drinker.    

Proponents of the multi-level marketing scheme promise six-figure salaries but most recruits never make a profit. Many more are ending up in serious debt.

It’s late at night when Kate*, a single mum from outback Queensland, sees a post pop up in her social feed. 

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There’s a young woman in a cowboy hat, claiming to live a lavish life with money made from a new scheme, that’s “a little bit different”

Eager to find out more, Kate joins the private Facebook group tied to the scheme.

Twelve thousand members strong, it’s called the Rural Freedom Movement – and is described as a “community of rural people who are seeking to learn how to create an online income and build a legacy for their future.”

Pinned to the top of the page is a video of the same woman. The group’s founder, Kylie Stevenson.

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“If you’re looking for an opportunity to break free from the traditional 9-5 grind and create a life of financial freedom,” the post said, “then you’re in the right place”. 

“I think that was what got me,” Kate says.

A graphic of a layers of triangular symbols.
This motif is common in The Freedom Era resources.()

“I was always trying to find a way to make money as a mum. I’d tried every MLM (multi-level marketing) known to man.

“I’m like, right, so I need to look bigger than Tupperware.”

She scrolled through the stream of positive content.

Everyday rural women, promised “personal growth” and an avenue to “follow your dreams” in short video sermons.

Kylie was talking about making serious money. 

Ten thousand dollars a month. A hundred thousand dollars a month.  

A screen shot of a Tik Tok feed featuring an Enagic sellers.
Leading Enagic sellers all promote how anyone can earn as much money as they do.()

“You’ve got a young sheila, living her best life, floating around, camp drafting, flash car, flash horses, just working for herself at a young age,” Kate remembers thinking.

“Who wouldn’t want to do what she’s doing?

“I was pretty much sucked into it.”

Multi-level marketing schemes involve individuals directly selling products, usually by leveraging social networks. People earn commissions from both the sales they make and the sales made by others they recruit. Think Amway and Tupperware.

In Kate’s case, she’d signed up to sell water.

More specifically, a Kangen alkaline water ionizer and filtration machine.

The devices are distributed by a 50-year-old Japanese direct-sales company called Enagic, which describes it as an “antioxidant machine”. 

“Our passion is to transform the tap water in your home into pure healthy electrolyzed-reduced and hydrogen-rich drinking water,” the company states on its website.

A photo and description of Enagic's  Kangen water ioniser.
Enagic markets its water ionisers as able to create “water with more antioxidants”.()
A photo of Enagic's founder Hironari Oshiro and his wife, and a message about water changing lives.
Enagic is a Japanese company founded by Hironari Oshiro 50 years ago.()

So far, there is little scientific evidence that the machine’s alkaline water has any health benefits. 

Kate was quickly funnelled into the Enagic universe and encouraged to sign up.

For roughly $6,500 she bought a Kangen 8 water ioniser, and a box of wild turmeric capsules, known as Ukon.  

In regular live “masterclasses” inside the Rural Freedom Movement group, members are encouraged to buy more than one machine, so they ‘skip the queue’ in a complex commission structure designed by the company.

A presentation slide showing the Kangen water ioniser, the ANESPA and Ukon.
New “leads” are encouraged to buy a package of Enagic products which can cost up to $16,500.()

Kate didn’t have spare money, and was worried about her credit rating, but she says supporters of the Rural Freedom Movement told her about a payment plan she could access directly through Enagic, who offer finance to buy their products. 

Publicly available information online reveals if individuals fail to make payments in the time frame, the 10 per cent per annum interest rate jumps to 25 per cent.

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