As a multilevel marketing (MLM) or network marketing company, NU Skin has had its share of success, challenges and even failure in certain places and at certain times.
It has a big market share from the Americas to Asia, Europe to Africa. Many people who have participated in these NU Skin marketing programs out there have different views.
Some think that the whole idea is nothing but a pyramid scheme meant to swindle money out of a poor man’s pocket. To others, the experience couldn’t be further from that and claim that you can actually make some good income by just being a product distributor.
So, what is what? Where should we draw the line? Well, let’s take a look.
NU Skin Enterprises is a US based MLM organization first formed in 1984 by Blake Rooney, Sandie Tillotson, and Steve Lund. Their position at the time is not known so it is somehow hard to tell who was what then.
During its time in operation, the company has done relatively well for an MLM organization. It has been listed on the NYSE and even undertaken some charitable courses.
These include the Utah Jazz Dancers and athletic activities at Brigham Young University sponsorships among others. But how has it fared so far in the business world?
First NU Skin has a fairly large market. It has distributors in the entire Pacific, Mainland Asia, the Americas, Europe, and Africa. In 2016 alone, it was estimated the company generated $2.21 billion in revenue.
And with thousands of distributors worldwide, including in the US, NU Skin fixed and liquid assets seem to have multiplied over by several factors.
That said, it has had its share of challenges too. And we mean serious legal challenges that nearly wiped it out of the entire business landscape.
This is attributed to partly bad press and partly uncouth business practices. In the US alone, nearly all states either fined NU Skin or censored its products.
A similar occurrence has also been reported in China. Even worse, some of these legal culminated into huge fines which, by all means, must have made huge dents into the company’s financial capital.
Brand and Products
NU Skin Enterprise sells over 200 personal skin care and medical products. These products are meant to rejuvenate the skin and make it look younger. Maybe I need that:)
By 1996, the company acquired Pharmanex, which was then a dietary-supplement producer. That is how the controversial Biophotonic scanner’, designed for measuring the level of carotenoid in people’s skin, was developed.
In fact, it is one of the NU Skin products, apart from its questionable business practices and ethics, that have pitted the company in legal battles with several state US Attorneys and Chinese Authorities.
As for branding, the organization has branded and rebranded itself to cope with the economic winds taking the business world by storm.
It began with a premium quality concept to showcase its products. This earned it some good customer base for the start.
However, when it was time to venture abroad, the company adopted a supply chain of Internet-based distributors. So far, one can say that fortune has tossed a lot on the laps of the executives at NU Skin.
To sign up with NU Skin is actually pretty straightforward. You don’t need any business pre-qualification skills. But, you have to pay up some initial charges, and that is where the process gets complicated.
It is probably why understanding how this company’s compensation plan really works is of urgent importance. For a $10 one-time fee, you get the opportunity to join NU Skin global chain of distributors.
This is actually meant for not-for-profit starter-kit and the individual distributor agreement.
Contained in this distributor agreement are various documents about the business such as distributor policies, compensation plan, and sales procedures among others.
After all that, you can now proceed to retail any NU Skin product of your choice from home and generate about $175. a month with an annual sale close to $2,000
But The Big question is, do you get compensated at the end of it all? NU Skin compensation plan is complicated. As a matter of fact, here is where your headache as a distributor begins.
Having sold products worth hundreds of dollars, it is good that you get some reasonable remuneration. Nonetheless, it doesn’t happen that way for many people.
What you actually earn is that which you charge your new recruits who then must sign-up under you. The amount is quite negligible. It is normally 5% of the one-time recruitment fee.
In the end, these individual distributors make no money at all given the fact that it is not easy to get potential recruits to sign-up under you.
Therefore, one can conclude that the compensation is meager if none at all. Of course, this is with the exception of company executives who take home hefty pay. The big problem is reaching that stage where you become one of the ‘big cats’.
I will just let a rep explain it to you in detail.
Training and Support
The NU Skin team actually helps in training and business orientation of their new distributors in various parts of the world.
And to implement such plans, they rely on their distributor agents who then inform and train people on the company’s business plan and modes of operation.
Mostly these bits of training are offered at no cost but the trainees must cater for their own expenses. In terms of support to the distributors, there is no specific company policy that deals with that.
Once you have registered and become a distributor, you will be mostly on your own looking for new recruits and marketing NU Skin products.
Let’s take look at the good and bad of the Nu Skin business program.
Advantages of NU Skin Program
- The company has a fairly good range of high-quality products.
- There is an opportunity of making good money once you qualify as a member of the executive board.
Disadvantages NU Skin Program
Unlike the few advantages, the disadvantages of participating in this program are shockingly many. Let’s have a look.
- Legal risk: NU Skin has suffered serious law suits in many countries due to its unreliable products. This means that, as a distributor, these law suits can easily be extended to you for participating in a questionable business activity.
- Little compensation: People hardly make real gains through this program. So, if you want some gainful income activity, then NU Skin MLM program is not good for you.
- Bad press: The Company has suffered relatively bad press. So it is with its distributors worldwide.
- Less Effectiveness: As compared to other MLM organizations out there, NU Skin is actually doing poorly. This means that the opportunity of making money through its platform is even slimmer.
Is Nu Skin a scam? In my humble opinion, I would say no but with a big BUT!
Unlike other health and beauty MLM companies that I have reviewed, Nu Skin falls way short. I’ve reviewed many MLMs but this one really hit an all time low.
The way I look at scams is anything that sells you hot air. If you have a product to sell, albeit overpriced or over-glorified, then you are not really a scammer. Willing buyer, willing seller! Right?
Having said that, Nu Skin is one of those MLMs that have had a fair share of dramas and I would be very careful dealing with them.
According to Consumer Affairs, many new affiliates seem to claim that once you order the free sample which costs $4.99 and $4.95 as the cost of shipment, they end up billing you $94.07 and $104.97 from the same company after a week.
No explanation is given as to why so maybe they have morphed into a full blown scam!
The company’s global sales ( similar to many other MLM companies) have been on a downward spiral.
Let’s look closely at the business model.
As it is with all cases with MLMs, the products usually tend to take a back seat and recruiting becomes the central focus of your business.
If you are good at approaching people out of the blue and presenting them with an opportunity like this, this could work well for you. I can tell you here and now most people are not.
The fact is most people fail in this business because it is by no means as easy as they are led to believe. In fact, less than 1% of all people who join MLMs succeed.
I don’t mean to discourage you but the very nature of MLMs is also shrouded in a lot of misconceptions and controversy. How about you check out how I make money online without having to recruit or attend meetings
I will leave you with Dave Ramsay’s take on it.
Many thanks for reading my review. If you have a question or a comment regarding Nu Skin, please leave it below. I would love to hear from you.
My name is Leonard.
Hi folks. Thanks for dropping by. I am a graphic designer and also build websites for local businesses. I am also a member of Wealthy Affiliate. WA is a community-based training platform that truly delivers. It offers a variety of tools, training, and support, and best of all, it’s FREE to get started with. Check it out and see if it’s a good fit for you.