Are you thinking about joining the Nu Skin MLM Program? Or are you already a distributor? Read on to find out, “Is Nu Skin A Pyramid Scheme?”
I have researched Nu Skin and would like to share my analysis with you. This overriding question will be answered. Be prepared, because the answer may surprise you.
Nu Skin Business Summary
Here is a summary of Nu Skin Enterprise:
- Founded: 1984
- Founders: Blake Roney, Steven J. Lund, Sandy Tillotson, Nedra Roney:
- HQ: Provo, UTAH
- Type of Company: MLM Personal Care & Dietary Supplements – Publicly traded company on the NYSE under NUS
- Operations: Worldwide
- Revenue: $2.58B in 2020
Nu Skin is a legitimate corporation and operates profitably. As a Multilevel Marketing business, it achieves its sales through an army of distributors.
The Nu Skin products fall under two categories:
- Personal Care
- Dietary Supplements
I’d like to summarize each of these products below and highlight their unique selling proposition.
Personal Care – Nu Skin Brand Name
These products are designed to ensure users look and feel their best. Nu Skin accomplishes these through skin cleansers, moisturizers, essential oils, facial creams, and anti-aging serums
Since 1984, Nu Skin has developed a solid reputation in this industry and has won several awards since they have been in business. Still being in business, and profitably so, you can conclude that their products do indeed work.
Are they worth the price? You won’t know until you use the products and feel you’re happy with the results.
For product brand names and details, visit the Nu Skin website.
Dietary Supplements – Pharmanex Brand
The main focus of the Pharmanex range of dietary supplements is to maintain optimum health. Specific areas include cardiovascular health, weight loss, anti-aging, cellular rejuvenation, and proprietary green tea-based foods.
Once again, are they worth the price? Only you can tell by trying them out for yourself and experiencing the results. For more information, visit the Nu Skin website.
How To Purchase The Products
The best way is through a Nu Skin distributor. You can find a distributor near you through the Nu Skin website. Or you could go to Amazon using my affiliate link for Nu Skin Personal Care Products, and Pharmanex Dietary Supplements.
Nu Skin policy prohibits its products from being sold on third-party websites. However, the reviews of the products sold on Amazon state that they are in the original Nu Skin sealed packaging and that they work. Someone said that a marketing pipeline has evolved where distributors who have purchased excessive products offload their stock.
The seller of Nu Skin products on Amazon is located in North Carolina in the US. The reviews of the products are extremely positive. Also, Amazon has strict policies about selling counterfeit products that are strictly enforced. Hence, I have no reason to believe that they are fake. I suggest you do your research and come to your own conclusion.
How Do You Get Paid
Like all MLM programs, you can get paid by retailing the products directly to customers and collecting the profit between the retail and wholesale price. It would take you forever to sell sufficient products all by yourself to earn a living wage. There is a way you can do this online, and I will share those secrets with you later.
MLM programs are set up to leverage your sales efforts through building a sales team. And then train your team members to make sales of their own and recruit them to build their own sales teams. Your income is based on a combination of your sales, the sales of your team, and earning bonuses for meeting benchmark requirements set by Nu Skin throughout the year.
It takes a lot of training, hard work, and working with your company leaders to succeed. This is not for everyone since so many give up too early. No matter what your business venture is, you cannot achieve success alone. It takes creating a vibrant team to make the dream work.
Every MLM company has its own version of the compensation plan that is based on the above marketing principle. They can all be quite complicated to comprehend. When you are a new distributor, I recommend not getting bogged down in the details and focus on three things.
- Promoting the productas to make sales
- Recruiting a few good team members to work with
There is a fallacy that you need to recruit hundreds of people into the business to make it. Let me ask you this question. Would you rather have 100 people who do nothing and drain you with endless questions and act dumb? Or would you prefer to have three members who are proactive and work the business as hard as you do?
The main reason why distributors are told to focus on recruiting is disingenuous. Recruits end up buying the products that add to the bottom line of the company. In many MLM companies, most of the products are sold to their distributors.
You are told that to find those three perfect team members, you have to recruit a lot. Wouldn’t you rather be more selective in who you add to your team and treat those others who say they want to join the business as customers only? Most MLM companies want it both ways.
Check Our This Compensation Plan Video
Rather than explaining the Nu Skin compensation pan myself, here is a short video by Nick who does it better than I could. Let me know what you think.
I got to be honest with you. I have tried MLM several times. Even though I had some success, I didn’t care much for the methods to build my business the company and its leaders advocated.
There is a better way for those who feel like me to build an MLM business that I will share later. It doesn’t involve attending meetings, recruiting your family and friends, and buying a ton of products to sell retail. Stay tuned till the end.
Nu Skin Pros and Cons
Every company has features and benefits that were really good. As well as having aspects of the business that can be a problem. Here are just a few of the pros and cons of Nu Skin that resonated with me.
- Nu Skin has been successful in its business since 1984. It has a proven track record.
- Clear mission to imnprove the lives of others through looking and feeling their best.
- Innoivative product evolution over time to meet the needs of its cutomers and distributors
- Products are not exclusively sold by distributors. You can buy them on Amazon for less!
- Very competitive field. Hard to define the Nu Skin unique selling propositon.
- Typical MLM pattern – Very few make money. HIgh distributor attrition rate. Constant need to recruit.
Please share the pros and cons of your own in the comments section below.
Is Nu Skin A Pyramid Scheme?
It boils down to how you define Pyramid Scheme. The method the MLM model uses to generate sales depends on each new distributor recruiting others. The revenue generated is indeed through the sale of products. And that keeps it legal.
In illegal pyramid schemes, profit is made only through the exchange of money. A scheme is set up where recruits pay money that goes to their upline. Often, this is made to appear legal by selling products that are grossly overpriced to achieve the same ends.
The one fact that is common to MLM and illegal pyramid schemes is recruiting is constantly needed for the business model to survive and grow. MLM companies can do this by gradually expanding to markets in different countries.
In the early days of MLM, new distributors had to pay a fee to join. This was disguised as funds to pay for business supplies. The FCC clamped down on this practice as the flow of these funds went upwards to mingled as commissions for upline active distributors.
Today, we see a modification of this approach. Instead of paying these entry fees, distributors must qualify for commissions by guaranteeing a minimum amount of sales each month. These sales can be achieved either through personal purchases or through sales to retail customers.
Hence, to me, an MLM can be considered a legal Pyramid Scheme. What do you think?
Can You Succeed In MLM Differently?
The evolution of technology today enables entrepreneurs to reach thousands of customers through Internet Marketing. There is a business model called Affiliate Marketing. Simply stated, most companies enlist the efforts of individuals called “affiliates” who they authorize to direct customers to their online stores using affiliate links. The most common methods are to share product reviews and comparisons with those searching for information with the intention of buying.
Affiliate marketers learn skills to use the Internet to find these customers and channel them to the companies they are affiliates of. When a sale is made, the company will pay the affiliate a commission. This is usually a percentage of the product price.
I wrote an article explaining in detail how this works that you can access via this link: MLM Online Secrets – Your Upline Doesn’t Want You To Know! In this article, I share with you my recommendation to create an online business where you will not have to bug your family and friends to generate an income, 24/7.
To learn more about how to use the Internet to build your MLM business click this link: MLM Online
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Please share any comments or questions in the comments section below.
I wish you much success in whatever you do to create a better life for yourself or your family.