You must have heard of Nu Skin if you have been contemplating about joining an MLM business platform. Well, the company may not be as popular as Mary Kay but it has been around for some time. In this review, I will tell you what is Nu Skin MLM and if it is legit or a scam.
After signing up with the company sometime last year and understanding their modus operandi, I have decided to make an honest review of the Nu Skin MLM program. I will be sharing all the information you need to make the right choice. Read on to get the full details.
What is Nu Skin MLM? An Overview
Nu Skin is a big multi-level marketing company in the business of producing health and beauty products. Established in 1984, the company is based in Provo, Utah, United States of America. It started its very first foreign operation in Canada in 1990 and extended to Hong Kong in 1991.
Nu Skin has more than 200 products in both nutritional supplements and personal products. The company boasts of more than 800,000 Independent Distributors and almost 5,000 employees spread across more than 52 countries. In 2018, it raked in over $2.6 billion in revenue. Nu Skin is quoted on the New York Stock Exchange (NYSE).
How to join the Nu Skin MLM
You can either join the business as an individual or a business unit. A minimum of $100 order is required as an individual and $1,495 as a business concern. To join as a distributor, you have to visit the website at https://www.nuskin.com/en_US/home.html and register with your details. To register successfully, you must have a distributor’s ID. That means you need the ID of a distributor that is already in the business. If you don’t have that, then, you can order the products and sell them to make profits.
About the Nu Skin products
The company trades in two different names – Nu Skin and Pharmanex. The categories of products traded under Nu Skin are moisturizers, facial spas, anti-aging creams, and essential oils.
For nutritional supplement products, they are traded under Pharmanex. The categories of products branded with Pharmanex include weight loss powders, vitamins, energy boosters, and capsules that help improve the functions of the heart, digestive system, and brain.
One of their notable products is the AgeLOC Youth. These are creams and pills designed for the reversal of aging.
Nu Skin Compensation plan
There are two ways to earn if you join the Nu Skin MLM program. You can buy products directly from the website and sell the products to make a profit margin. There is also a 30% commission on all products purchased directly from the company.
Additionally, commissions can also be earned from your downlines if they are all doing fine. The higher the sales volume, the more commission earned.
Lawsuits against Nu Skin
Nu Skin has been a subject of litigation. The company was investigated by the Federal Trade Commission (FTC) in the 1990s for making false claims. About four states in the United States also accused the company of cooking the books by overstating the amount earned by their distributors. The matter was settled in 1992.
The company paid a fine of $1million to the regulatory body for misleading the public. Again, in 1997, another $1.5 million was paid to the FTC for exaggerating its promotional statements.
In 2014, the Chinese government sued the company at a court in Utah and Nu Skin agreed to the payment of $47 million for operating as an unauthorized pyramid scheme.
At a point, Nu Skin was also fined $750,000 for bribing a Chinese official during an investigation carried out by the Securities and Exchange Commission.
Despite all these troubles, the company entered the Forbes list as one of the most trusted companies in the year 2010.
Why is it difficult to make money with Nu Skin?
To make some money from any MLM business model is very challenging. Nu Skin won’t be an exception.
Below are some of the reasons why people find it hard to make money with the Nu Skin MLM program:
- Recruitment issues – To succeed as a distributor, you must recruit people to be a part of your team. These persons have to be well trained and motivated. If after you have done all the necessary things for your team to succeed and they fail, that may be the end of the business.
- Stress – Nu Skin MLM is generally stressful. If you cannot endure the stress, then, you cannot make money.
- Expensive products – Nu Skin products are not cheap. This can cause some setbacks to a sales goal.
Frequently Asked Questions (FAQS)
1. Can money be made selling Nu Skin products?
Answer: Yes, some people have made some cash by selling Nu Skin products. But the chunk of the money is made by the established distributors who have large downlines.
2. Can Nu Skin be categorized as a pyramid scheme?
Answer: Though Nu Skin cannot legally be regarded as a pyramid scheme, its modus operandi suggests it is. This is because profits are made from the payments made by others and people are forced to buy products to get started.
3. What are the benefits of becoming a Nu Skin distributor?
Answer: The benefits include buying products at wholesale price. You can also earn some commissions from the products you have sold and from your downlines.
4. Does Nu Skin pay their distributors for recruiting downlines?
Answer: No, Nu Skin doesn’t pay distributors for recruiting and training downlines.
5. How much can one make selling Nu Skin products?
Answer: It all depends on your sales. If you don’t sell, you don’t earn.
Who is it for?
Nu Skin MLM is designed for people who understand the concept of direct selling. It is also for people who don’t like a 9 to 5 regular job. This makes it right for people who want to work based on their schedules.
- Stable company – The fact that Nu Skin has operated for close to 40 years makes it a stable and viable company.
- Quality products – Nu Skin products are of high-quality. The products have been tested and trusted by many of its customers.
- Great incentives – Nu Skin has got some of the best incentives for its Independent Distributors. Their commission is one of the highest in the MLM industry
- Exceptional leverage – Joining Nu Skin means you can leverage on an already known brand. The company needs no introduction and it means you don’t have to spend money on advertising.
- Flexible work hours – This is one of the advantages of the MLM business model. There is no regimented work hour. You are at liberty to choose your work hour. At the end of the day, what matters is your result.
- Expensive products – The products are expensive. This will discourage potential buyers from patronizing the products though, they are of great quality.
- Minimal sales requirement – Although, the company says people are not forced to sell a particular amount of products. But the reality is that there is a minimum sales requirement before qualifying for bonuses and commissions.
- False claims – In a desperate bid to sell the products, some of the distributors make false claims.
Legit or scam
Nu Skin is a 100% legit company with over 800,000 Independent Distributors. This shows it is not a scam though the company has passed through some challenges in the past.
Conclusion: Is Nu Skin MLM recommended?
No, the Nu Skin MLM program is not recommended because of the litigations in the past. This is a kind of dent in the reputation of the company. Also, the products are usually overhyped by the distributors.