Is Nu Skin a Scam? – Review Reveals a Pyramid Scheme

Nu Skin is a legitimate company that sells genuine products, and members of the Nu Skin MLM program receive the promised compensation. Their products are safe and approved.

However, the commissions offered by this MLM are relatively low, which may not make it a favourable business opportunity.

As a Product Advocate, you would need to recruit a significant number of active customers to achieve a decent part-time or full-time income. This requires reaching out beyond your inner circle of family and friends.

Alternatively, building a sales force by recruiting other sellers in your downline may help you reach a full-time income faster, though it is a challenging path.

It’s important to note that just because the opportunity to make money with Nu Skin is not a scam, it does not necessarily mean that I endorse it.

In fact, in my review, I don’t particularly recommend Nu Skin. Read the rest of the review to gain more insights before you make your decision,

What Is Nu Skin?

Nu Skin Enterprises was founded in 1984 by Blake Roney, Sandie Tillotson, and Steve Lund in Provo, Utah. The company originated in the U.S. and later expanded its operations internationally, starting with Canada. Currently, Nu Skin has agents in 53 markets worldwide.

The founders of Nu Skin aimed to create a business that combined innovative personal care products with high-quality ingredients, adhering to the philosophy of “all of the good, none of the poor”.

With almost 40 years of existence, it certainly seems like they have been successful in achieving their goals.

Nu Skin offers a wide range of products, including:

• beauty devices
• body care products
• face care products
• nutritional products

Is Nu Skin an MLM Company?

Based on my review thus far, it is evident that Nu Skin operates as a multi-level marketing (MLM) company. By recruiting individuals into your sales force, you have the opportunity to earn income.

Now, let’s delve into how MLMs function…

What Is MLM?

In multi-level or network marketing, individuals sell products to the public, often through word of mouth and direct sales, according to the Federal Trade Commission (FTC).

Typically, distributors earn commissions from their sales and from the sales made by the people they recruit to work beneath them.

The business model is essentially similar to pyramid schemes, with the distinction that they incorporate products. Its resemblance to a pyramid scheme lies in the emphasis on member recruitment rather than actual sales.

This statement raises another question…

Is Nu Skin a Pyramid Scheme?

The ongoing debate revolves around Nu Skin and whether it can be categorized as a pyramid scheme or not. Many argue that all MLM companies are disguised pyramid schemes.

However, it is important to note that Nu Skin operates within a completely legitimate business model. Therefore, it is incorrect to label Nu Skin as a scam or a pyramid scheme.

What Is a Pyramid Scheme?

The FTC defines a pyramid scheme as a company whose primary income generation method is by recruiting and enrolling others into the program and charging them participation fees, rather than by offering products to the public.

Based on the fact that Nu Skin participants earn income through both selling services and recruiting new members, it is safe to say that Nu Skin is not a pyramid scheme.

Here is a short educational video on pyramid schemes as well…

Is Nu Skin a Pyramid Scheme In Disguise?

Many people label Nu Skin as a product-based pyramid scheme in disguise.

This means that participants at the bottom of the pyramid are compelled to buy excessive amounts of products so that those at the top can earn substantial compensation.

Consequently, most individuals in the Nu Skin MLM lose money and become disgruntled. They express their anger by denouncing the company and accusing it of being a scam or pyramid scheme.

However, is it fair to make such assertions? I believe that if a business sells products and offers you an opportunity to start your own business by selling those products, there is nothing inherently wrong with it.

Therefore, in response to the question, “Is Nu Skin a pyramid scheme?”, the answer is no.

Related Review: Is Herbalife a Pyramid Scheme

Is Nu Skin Legit MLM?

With the Nu Skin MLM design, you earn revenue from your sales as well as from the individuals you recruit to become representatives, also known as your team.

Many Nu Skinners are actively seeking skilled entrepreneurs who can build large organizations. This provides increased income to the upline with minimal effort.

For instance, if you recruit individuals with strong business acumen and sales skills, you can generate passive income without much involvement.

In this case, your earnings do not solely come from selling products, but rather from recruiting and building your organization.

Therefore, the more individuals you can recruit to your downline, the higher your potential earnings.

What Are Nu Skin Products?

Nu Skin offers a range of beauty products designed to enhance your appearance.

Its skincare line includes top-notch items such as anti-ageing products, UV protection, Skin Haze, Cell Revival, AHA Facial Peel, and Neutralizer.

This company has expanded its offerings to include over 200 personal treatment products worldwide. These products range from cleansers and toners to anti-ageing skincare items.

Notably, the ageLOC Future Product and ageLOC Edition Galvanic Spa System have made significant contributions to the skincare line.

Additionally, Nu Skin sells a wide range of cosmetics, fragrances, hair care products, mouthwash, as well as essential oils and diffusers.

These products are effectively marketed and distributed through a global network of independent distributors, sales associates, and loyal customers.

Are These Products Any Good?

In my Nu Skin review, I mentioned the key concept behind their products: “All of the great.” This means they prioritize using the best possible components while avoiding harmful fillers.

Undoubtedly, Nu Skin products combine all-natural ingredients with cutting-edge modern technology.

Most Common Nu Skin Positive Product Reviews

While conducting my own Nu Skin review, I came across interesting testimonials on the Consumer Affairs website. There, 100 people gave this company a rating of 3.4/5, which I found intriguing.

Nu Skin takes pride in the exceptional quality of its skin treatment products. Moreover, these products are supported by Nu Skin’s professional Anti-Aging Scientific Board of Advisors, consisting of esteemed dermatologists and leading scientists specializing in various areas.

Their research collaborations further reinforce the credibility of Nu Skin’s offerings.

Most Common Nu Skin Negative Product Reviews

Although Nu Skin has received negative reviews, here are a few of them to consider:

How Much Do Their Products Cost?

Nu Skin items are often considered pricey and overpriced. However, you can find these products at more cost-effective prices on Amazon compared to purchasing them from the official website.

Related Review: Is Amway a Scam or Legit

How To Make Money With Nu Skin MLM?

There are two methods to make money with NU Skin:

Retail markups

Brand associates can purchase items from the organization at reduced costs. As a result, you can acquire your items directly from the business’s warehouse and then resell them to your customers.

The retail markup is the difference between the participant’s rate and the retail price. Feel free to set your market price as you please. The business does not provide price quotes for resale items.

Sales payment

Brand associates have the opportunity to earn money through product sales in 53 markets, excluding Landmass China.

The amount earned by affiliates can vary depending on factors such as ambition, time, commitment, skills, and goals.

It’s important to note that commissions are earned solely from product sales and not from recruiting members into NU Skin. Generating income as an associate requires time and dedication.

How Much Can You Earn With Nu Skin?

In 2020, brand name associates residing in the United States earned a total of $161,333,653 in sales settlement. On average, a brand name associate in the United States sold $160.05 per month.

Below is the official compensation plan…

In 2020, NU Skin paid out sales compensation to a portion of its brand associates in the United States. Of the active brand associates, 19.04% received compensation, which represented 43.56% of all brand affiliates.

Among the energetic brand affiliates, 11% made an average of $384 annually. Meanwhile, the Brand Reps, making up 3% of brand affiliates, earned $7,392 per year. The diamond directors, comprising only 0.12% of representatives, took home an average of $112,932 annually.

Furthermore, the top 0.2% of the company earned an impressive average of $449,688 in 2020.

Can You Make Money With Nu Skin MLM?

Please keep in mind that when starting at this firm, you may begin at an entry-level position. Taking into account that the business has been established for three decades, it is important to consider the time it may take to progress within the company.

It is worth noting that you will face tough competition from employees in higher positions. Even if it’s difficult to admit, they possess more extensive networks, knowledge, and understanding of the Nu Skin MLM business operations.

Additionally, please remember that the earlier information represents only active members of Nu Skin. By doing the math, you will notice that only 17.86% of all members appear to be active.

This suggests that the majority of participants who joined did not generate sufficient sales to qualify for payments. Can you believe how outrageous this sounds? Approximately 82.14% of participants seem unaccounted for!

The black-and-white numbers never lie. That’s why the most reliable source of data on Online Marketing is their income disclosure statements.

However, if you still believe that Nu Skin MLM is the right fit for you, here’s how to get started…

How To Join Nu Skin MLM?

Joining is a simple, two-step process. To begin, you’ll need a sponsor, which is quite easy to find. You can either ask a close friend who sells NU Skin products to enrol you or search online.

Here’s a breakdown of the process:

Nu Skin does not require a joining fee, as stated in the Nu Skin payment report. This is an appealing feature for recruits. However, you won’t receive any products to sell initially.

After joining the Nu Skin MLM, you will need product packaging supplies. These packaging costs range from $475 to $1,519.

They encourage you to enroll in the Automatic Distribution Reward (ADR) program. This means you will continuously receive products of a certain amount to maintain your status as an active distributor. The ADR program requires a $100 standing order.

Additionally, to remain active, you need to generate monthly earnings of $200 to $350. It is important to have this understanding before fully committing to Nu Skin MLM.

In summary, joining Nu Skin is free, but to become a qualified representative, you will need to invest a few hundred dollars.

Nu Skin MLM Pros:

• NU Skin is a reputable company with a longstanding presence in the health and beauty industry.
• Their products are known for their relatively high quality.
• Joining the NU Skin brand affiliate team doesn’t require a minimum purchase or inventory, and there are no sign-up fees or mandatory starter kits.
• In addition, you have the flexibility to terminate your account at any time with a written notice.

Nu Skin MLM Cons:

• 85% of distributors earn no income with Nu Skin.
• To be successful, you must approach friends, family, and everyone in your network to recruit them.
• Consequently, you may be seen as someone trying to deceive others with a Nu Skin “pyramid scheme.”
• The real money lies in recruiting people, not in selling the actual products.
• To be eligible for any commission, you need to spend over $100 per month and sell or use 80% of your inventory.
• Additionally, you must earn 2500 points to become a qualified independent distributor.
• However, selling the products can be challenging due to their high price.

Why I Don’t Recommend MLM…

• According to the FTC, nearly 99% of individuals in all multi-level advertising and marketing firms lose money.
• You now have 38% more opportunities to earn money from your own work.
• The chances of winning a $10k lottery among 10,000 people are 300 times higher than making money from MLM.
• According to the AARP Foundation, nearly half (47%) of distributors involved in MLMs end up losing their money.
• Out of the remaining 26% who actually earn money, 53% of them make less than $5000 per year.
• 39% of those who earn $5000/year stopped due to recruiting and offering lousy products to their loved ones, which posed a threat to their relationships. Of that 53%, specifically.
• Building a long-term organization with MLM is challenging due to the high participant attrition rate. In fact, 50% of all participants quit within one year.
• Out of the individuals who have joined MLM, 75% express their firm decision to never engage in any form of multi-level marketing again.
• In a 2018 poll conducted among 1050 online marketing distributors, it was concluded that the majority of them earned around 70 cents per hour. Additionally, 20% of these distributors reported not making any sales. Furthermore, 60% of them generated less than $500 in sales over the past 5 years, while 32% incurred credit card debt to finance their network marketing participations.

Related Review: Coway MLM Exposed

Nu Skin Review – Conclusion

Is Nu Skin a scam? No, I wouldn’t say that. Despite some questionable service methods, this company is not a scam. However, it does have a recruiting scheme that resembles a pyramid scheme—not to say it is one though.

Nu Skin MLM has been around for some time, and some people are making decent revenue from it. That being said, I don’t recommend it.

Here’s why: Nu Skin doesn’t offer anything new. Their products aren’t unique, and there are already better companies and brands out there.

On top of that, their products are expensive and require you to become a customer before you can sell them.

In reality, this business model mostly benefits those at the top of the “pyramid.” As a sales representative, you’ll have to work hard before you can make good money with MLM.

Thank you for reading the “Is Nu Skin a Scam?” review. If you have any questions, feel free to drop them in the comment box below!

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