Uncovering Nu Skin: A Deep Dive into the Pyramid Scheme Allegations
Uncovering Nu Skin A Deep Dive into the Pyramid Scheme Allegations

Welcome to our comprehensive review of Nu Skin, a company that has sparked considerable debate and curiosity in the health and beauty industry. With a history spanning nearly four decades, Nu Skin has built a reputation for its wide range of personal care products and its unique business model. However, along with its growth and success, questions and concerns about its MLM structure and resemblance to pyramid schemes have emerged.

In this review, we’ll take an in-depth look at Nu Skin’s business practices, product offerings, and the legitimacy of its MLM model. We’ll explore whether Nu Skin truly offers a viable business opportunity or if it’s merely a well-disguised pyramid scheme. By examining the facts, testimonials, and financial data, we aim to provide you with a clear and unbiased understanding of what Nu Skin is all about.

Whether you’re considering joining Nu Skin as a brand affiliate or you’re simply curious about the company, this review will give you the insights you need to make an informed decision. Let’s dive in and uncover the truth behind the Nu Skin controversy.

Disclaimer: This Nu Skin MLM review has been thoroughly researched with information and testimonials that are available online to anyone in the public.  Any conclusions drawn from that information are my own opinions.

Nu Skin MLM Review Overview

Product Name: Nu Skin

Owner: Blake Roney, Sandie Tillotson, and Steve Lund

Product Type: Beauty products/MLM company

Price: Free to join, but various starter packs ranking from $475 to $1,519

Best For: Beauty Enthusiasts

nu-skin-website-image

Pros

  • Reputable Company
  • High-Quality Products
  • Flexible Joining Terms
  • Easy Account Termination

Cons

  • Low Income for the Majority
  • Pressure to Recruit
  • Income Tied to Recruitment
  • Money Expenses and Inventory Requirements
  • Challenging Sales Environment

Quick Summary

Nu Skin, a long-established player in the health and beauty industry, has garnered attention not only for its extensive range of personal care products but also for its multi-level marketing (MLM) business model. Founded in 1984, the company offers high-quality products, including skincare, cosmetics, and nutritional supplements. While their product quality is generally well-regarded, the pricing can be quite steep, making it challenging for new distributors to make sales.

The MLM structure of Nu Skin allows brand affiliates to earn money through both direct sales and recruitment. However, the emphasis on recruitment over product sales has drawn criticism and comparisons to pyramid schemes. Despite these concerns, Nu Skin operates within legal bounds, and some affiliates do achieve significant income. Nevertheless, the majority of participants earn little to no income, highlighting the competitive and often difficult nature of succeeding in this business.

In conclusion, while Nu Skin is not a scam and offers legitimate products, it may not be the best choice for everyone. The high costs and heavy reliance on recruitment can be significant barriers. For those considering joining, it is crucial to weigh these factors and consider whether the potential rewards justify the investment and effort required.

Rating
2.5/5

Recommended? Nu Skin is a well-regarded and profitable MLM opportunity, ideal for fans and users of their products or beauty enthusiasts in the niche

Table of Contents

Is Nu Skin MLM a Scam?

Nu Skin is a legitimate company that sells genuine products, and members of the Nu Skin MLM program do receive the promised compensation. Their products are safe and approved by relevant authorities, which speaks to the company’s credibility.

However, the commissions offered by Nu Skin’s MLM program are relatively low, which might not make it the most favorable business opportunity for everyone. 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 goes beyond just reaching out to your inner circle of family and friends.

Alternatively, you could build a sales force by recruiting other sellers into your downline. This approach might help you reach a full-time income faster, but it’s a challenging path that requires significant effort and persistence.

It’s important to note that just because the opportunity to make money with Nu Skin isn’t a scam, it doesn’t necessarily mean that I endorse it. In fact, I don’t particularly recommend Nu Skin as a business opportunity. Read the rest of the review to gain more insights before you make your decision.

Related Post: Forever Living MLM Review

What Is Nu Skin?

Nu Skin Enterprises was founded in 1984 by Blake Roney, Sandie Tillotson, and Steve Lund in Provo, Utah. Starting in the U.S., the company quickly expanded its operations internationally, beginning with Canada. Today, Nu Skin has agents in 53 markets worldwide.

nu-skin-website-image

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 bad.” With nearly 40 years in the industry, it certainly seems like they have achieved their goals.

Nu Skin offers a wide range of products, including:

  • Beauty devices
  • Body care products
  • Face care products
  • Nutritional products

This extensive product line reflects their commitment to providing diverse and high-quality options for their customers.

Related Post: DoTerra MLM Review

Is Nu Skin an MLM Company?

Based on my review thus far, it’s clear 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 An MLM?

According to the Federal Trade Commission (FTC), multi-level or network marketing involves individuals selling products to the public, often through word of mouth and direct sales. Distributors typically earn commissions from their sales and from the sales made by the people they recruit to work beneath them.

The business model is somewhat similar to pyramid schemes, but with a key distinction: MLMs incorporate products. The resemblance to a pyramid scheme lies in the emphasis on member recruitment rather than actual sales. This statement raises another question…

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Is Nu Skin a Pyramid Scheme?

The ongoing debate revolves around whether Nu Skin can be categorized as a pyramid scheme. Many argue that all MLM companies are disguised pyramid schemes. However, it’s important to note that Nu Skin operates within a completely legitimate business model. Therefore, it’s 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. Since Nu Skin participants earn income through both selling products and recruiting new members, it’s 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, expressing 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.

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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 actively seek skilled entrepreneurs who can build large organisations, providing 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 scenario, your earnings do not solely come from selling products but also from recruiting and building your organisation.

Therefore, the more individuals you can recruit to your downline, the higher your potential earnings. This structure highlights the importance of recruitment in maximising income within the Nu Skin MLM model.

Related Post: Young Living MLM Review

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What Are Nu Skin Products?

Nu Skin offers a diverse range of beauty products designed to enhance your appearance. Their skincare line includes top-notch items such as anti-ageing products, UV protection, Skin Haze, Cell Revival, AHA Facial Peel, and Neutralizer.

nu-skin-nutrition-product-examples

The company has expanded its offerings to include over 200 personal care products worldwide, ranging from cleansers and toners to anti-aging skincare items. Notably, the ageLOC Future Product and ageLOC Edition Galvanic Spa System have made significant contributions to their 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 prioritise using the best possible components while avoiding harmful fillers. 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 the 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 positive reviews, there are also negative reviews to consider.

nu-skin-negative-product-reviews

Some customers feel the products are not as effective as advertised, while others express concerns about the high prices and the pressure to recruit others.

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 Post: Rodan and Fields MLM Review

How To Make Money With Nu Skin MLM?

There are two main methods to make money with Nu Skin:

Retail Markups

Brand associates can purchase items from the company at reduced costs. You can acquire your products directly from Nu Skin’s warehouse and then resell them to your customers.

nu-skin-how-works

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

Sales Commission

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

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How Much Can You Earn With Nu Skin?

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

Below is the official compensation plan:

  • 19.04% of active brand associates received compensation, representing 43.56% of all brand affiliates.
  • Among the active brand affiliates, 11% made an average of $384 annually.
  • Brand Reps (3% of brand affiliates) earned $7,392 per year.
  • Diamond Directors (0.12% of representatives) took home an average of $112,932 annually.
  • The top 0.2% of the company earned an impressive average of $449,688 in 2020.

This data highlights the potential earnings within Nu Skin, emphasising that while significant income is possible, it requires dedication, skills, and time to achieve higher earnings.

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Can You Make Money With Nu Skin MLM?

When starting with Nu Skin, you may begin at an entry-level position. Given that the company has been established for three decades, it’s important to consider the time it may take to progress within the company. You will face tough competition from employees in higher positions who 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…

Related Post: Shaklee MLM Review

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 enroll 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 understand this 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.

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Nu Skin MLM: What I Liked

Let’s talk about what I liked about Nu Skin…

#1 Reputable Company with Longevity

Nu Skin is a reputable company with a longstanding presence in the health and beauty industry. Founded in 1984, it has built a solid reputation over the decades, which provides a sense of stability and trust for those considering joining as brand affiliates.

#2 High-Quality Products

Their products are known for their relatively high quality. Nu Skin’s commitment to using top-notch ingredients and advanced technologies in their beauty and health products makes them appealing to consumers looking for effective solutions.

#3 Flexible Joining Terms

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. This flexibility lowers the barrier to entry, making it easier for new members to start their journey without significant upfront costs.

#4 Easy Account Termination

You have the flexibility to terminate your account at any time with a written notice. This means if you decide that Nu Skin isn’t the right fit for you, there are no lengthy commitments or penalties for leaving.

Nu Skin MLM: What I Didn't Like

Now, for the things that concerned me about Nu Skin…

#1 Low Income for Majority

85% of distributors earn no income with Nu Skin. This stark statistic highlights the challenges many face in generating significant earnings, emphasising the importance of understanding the business model and realistic income expectations before joining.

#2 Pressure to Recruit

To be successful, you must approach friends, family, and everyone in your network to recruit them. This can lead to uncomfortable situations and strain relationships, as you may be seen as someone trying to deceive others with a Nu Skin “pyramid scheme.”

#3 Income Tied to Recruitment

The real money lies in recruiting people, not in selling the actual products. This emphasis on recruitment over product sales can be a drawback for those who prefer traditional sales methods or who are uncomfortable with the recruitment aspect of MLMs.

#4 Monthly Expenses and Inventory Requirements

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. These requirements can add up quickly, making it costly to maintain active status and eligibility for commissions.

#5 Challenging Sales Environment

Selling the products can be challenging due to their high price. While Nu Skin products are of high quality, their premium pricing can make them difficult to sell, particularly in a competitive market where consumers may be seeking more affordable options.

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 “Uncovering Nu Skin: A Deep Dive into the Pyramid Scheme Allegations” review. If you have any questions, feel free to drop them in the comment box below!

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Thanks for reading my Nu Skin MLM Review!  If you have any questions, or any experiences to share then please write them in the comments below. ;). 

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