Nu Skin Review
Nu Skin Summary
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 began its first foreign operation in Canada, the year 1990. Nu Skin is based on a Multi-Level Marketing (MLM) business model, where you have to recruit other people and build an organization below you in order to profit from your downline’s sales.
Are you looking for the answer to the question: Is Nu Skin a scam?
Then, you have come to the right place.
If you ended up here, my guess is that you were introduced to Nu Skin by a friend or a friend’s friend who will not stop asking you to join them to one of Nu Skin’s presentation meetings.
And they probably said something like: “It will change your life forever.”
Well, prepare for a change for the worse!
But is Nu Skin a scam?
Let me answer this by presenting the Company and my own experience of being a Nu Skin distributor.
“Achieve financial freedom and live your dream life”.
Yes, this is how it sounds when attending one of Nu Skin’s “hype” company presentations. The event is meant to inspire and get your hopes up of living the dream.
Who would not want to become a successful business owner and create a residential income, not having to lift a finger (IF reaching Team Elite level so to speak)? The Team Elite level is the highest of levels as a Nu Skin distributor.
Well, let me tell you how it really is based on my personal experience trying to become an independent distributor with Nu Skin.
Let us first take a look into the Company Nu Skin and its business model.
Join Our List And Learn How To Make 6 Figures Online For FREE!
What Is Nu Skin?
First of all, I want to start by saying GOOD that you are researching the Nu Skin business model before making any decision on whether to join or not.
After all, every business opportunity that requires your commitment in the form of time and money should be well-researched before jumping on the bandwagon.
With that said, let us take a look at what Nu Skin is.
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 began its first foreign operation in Canada, in the year 1990, and now has representatives in 53 markets Worldwide.
The founders of Nu Skin decided to build a company that would combine innovative personal care products with ingredients that subscribed to the philosophy of “all of the good, none of the bad”.
I can no longer count the times I have heard this sales pitch. I used it numerous times myself like you were encouraged to.
I am not trying to go against Nu Skin and its statement because the skincare products are pretty good, actually. I used them for about a year and was happy with the results.
However, the products are over-priced and there are many products on the market that TOP the Nu Skin product line for a MUCH LOWER cost.
What Is Multi-Level Marketing?
In multi-level or network marketing, individuals sell products to the public, often by word of mouth and direct sales.
Typically, distributors earn commissions not only from their own sales but also from sales made by the people they recruit to work beneath them (source: FTC – Federal Trade Commission).
Nu Skin Products
The most recognized Nu Skin product is the ageLOC skin care line. An anti-aging series with everything from skin creams and serums to home spa equipment.
Moreover, they also offer Nu Skin 180 body care, hair products, and cosmetics. I purchased a spa system for cellulite removal, but I never saw any results, and I have to admit I did not have the patience to use it every day for 20 minutes like you were supposed to.
Additionally, Nu Skin sells home spas for face rejuvenation, Pharmanex vitamins, nutrition supplements, and weight management products in the form of shakes and tablets.
The ageLOC skincare series and the Pharmanex nutrition supplement brands are currently bought and marketed by 950,000 distributors. As a result, the ageLOC line was responsible for 43% of the total profit in 2012.
The representatives of the Company do not like to call Nu Skin a multi-level marketing company. They know it does not sound good to people, so instead, they are using the somewhat less provocative wording of a network marketing company.
With that said, many people associate the MLM business model with pyramid schemes.
This takes me to the next question: is Nu Skin a pyramid scheme?
Is Nu Skin A Pyramid Scheme?
With Nu Skin’s business model, you earn an income from the sales you make, as well as from the people you have recruited to become distributors, also known as your downline.
For this reason, the more people you can recruit to your organization – your downline – the more money you will make.
Most Nu Skin’ers are hoping to recruit remarkably good entrepreneurs who will build big organizations. This, in turn, gives the upline residential income without hardly any effort.
If you recruit several people with a strong entrepreneurial mindset who are also good in sales, you can make passive income without lifting a finger.
Your actual earnings are not the result of selling products, but from recruiting people to do the actual business. Needless to mention, the more people you recruit, the bigger your organization or downline will become, and the more money you will make.
⇒ Is Nu Skin A Scam? You Decide For Yourself! But This Is A Warning From The Federal Trade Commission Which Regulates Multi-Level Marketers:
“Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s not. It’s a pyramid scheme. Pyramid schemes are illegal and the vast majority of participants lose money”.
Robert Fitzpatrick who operates the website Pyramid Scheme Alert insists that more than 99% lose their money with the turnover rate at some companies exceeding 90% every year.
Fitzpatrick is explaining it like this:
“If you have to recruit and then the ones you recruit have to recruit. Now you’re in a chain letter. And in a chain letter, most people are going to lose. Most, being 90% to 99%.”
With that said, it is difficult to get any concrete evidence if Nu Skin – like many other multi-level marketing companies – is based on a pyramid scheme because often they make their reports too complicated and just too long for investigators to go through.
I would claim they certainly are since the upline makes more when the downline grows its organization.
But is Nu Skin a scam? I will give you my honest answer in a bit.
How Nu Skin Defends Its Pyramid Scheme
The Nu Skin representatives always protect themselves on the recruiting events by saying it could not be considered a pyramid scheme because the downline only goes 6 levels deep.
This Is What Nu Skin Tells Their Distributors
This sounds like a cover-up to me!
Nu Skin is very well aware of the fact that it is operating as a pyramid scheme when having to write a disclosure like this. No matter levels or pyramid schemes, the vast majority of distributors end up losing thousands of dollars joining Nu Skin, including me.
To hear my story, continue reading.
6 Things To Consider Before Joining An MLM Company
The Federal Trade Commission Recommends You To Ask These 6 Questions Before Joining Any Of The MLMs:
|#1. Can you make a sustainable profit from just selling products without having to recruit a single person?|
|#2. How many products are sold to pure retail customers (customers who are not also distributors in the network)?|
|#3. Does the company’s compensation plan recommend you to buy large amounts of products to qualify for a more senior position in the network and bonus checks?|
|#4. How long does it take to start earning an income and how many distributors do you need to recruit to make money?|
|#5. What are the failure rate and average compensation for both a part-time and full-time commitment?|
|#6. Are the expenses of promoting and running the business higher than the average distributor compensation?|
First of all, I can answer question #3 from my own experience. Yes, they do encourage that you invest in a large number of products so that you can get started building your own organization.
Second of all, to make any money whatsoever with Nu Skin, you have to be part of their monthly automatic delivery rewards (ADR) program. You have to continuously order products for a certain amount. As a result, Nu Skin is forcing you to purchase from them, while also getting free marketing from new and “old” recruits!
How could I fall for this voracity?
To defend this, they say: “Hey, you have to buy products from somewhere anyway, right?!”
Eh….true! But I would not choose a shower gel for $35 when I can buy it for $5 at the local grocery store, or for $1 at the Dollar Store if I am lucky.
You Should Not Have To Pay For A Business You Are Heavily Marketing
The honest truth is that when you are attending one of their “hype” meetings, and are eager to fulfill your dream of becoming financially free, you want to believe it all makes sense.
How My Nu Skin Experience Started
This is me visiting Tucci Nail Spa during my Nu Skin days. The owner, Anthony Martucci, is a friend of mine.
My Nu Skin story started after I surprisingly bumped into a friend from back home, Sweden, who I worked with at a local fitness center in Stockholm.
To clarify, I met her here in Miami, Florida. She had also left Sweden for sunny Miami, so that was quite a coincidence.
She introduced me to Nu Skin and took me to one of their meetings. Needless to say, they made it sound like an amazing business opportunity and that it was easy to make the “big bucks” in no time.
Financial Freedom Next
Financial freedom is just around the corner, wihooo!
So they said, at least!
I left the meeting convinced that Nu Skin would be my thing. I was also happy to work with my friend again.
She recommended that I should go BIG if I was going to invest efforts into the business. For this reason, she convinced me to start buying the large inventory package, which I did.
Remember now…this is where she also got her cut since I became her downline.
Of course, she recommended investing in all these products. The truth was that she was making more money the more I bought!
To defend this, you can say that I (at least) got products for the money, but I did not really need them, so for me, the money was wasted. Even today, 3 years later, I still have products left.
Why Buy Products At All You May Think?
To start with, you have to earn 2500 points in order to qualify for starting your own organization as an independent distributor. As a result, every dollar is translated into points – so $1 is 1 point.
My friend told me I would earn 1000 points when buying the big package, and that it would give me a head start on collecting the remaining 1500 points, which she promised would not take long.
That was not the case!
But I trusted her and went for it. I bought products for $1,000 while sweating a bit. It is not every day you buy skin care products for $1,000.
I tried hard to reach the 2500 points but never did!
For instance, we were running around to business after business that was active in the skincare industry and tried to book meetings with the store manager in order to sell products or convince them to do the business.
It did not go well!
In fact, NOBODY wanted to pay for Nu Skin’s over-priced products.
I Was So Frustrated From Having Invested Full-Time In The Nu Skin Business For 3 Months, Plus Lots Of Capital, And I Only Got One Sale! Are You Kidding Me?!
Three months seems like a LONG time when trying to promote a business with the same sales pitches over and over and you are not getting through to anyone.
The typical answer: “Let me think about it”, or “No, I do not want to get involved in those pyramid schemes”, and so it went on.
Finally, after months of regular meetings that took time away from loved ones (they were always at night when people had finished their regular jobs), I threw in the towel and gave up.
Is Nu Skin A Scam? – The Lie And Rule I Never Approved Of
Back to the question: Is Nu Skin a scam?
Well, you are the judge. I am just giving you my story.
With that said, I can tell you that another way of “fishing people in” is how they tell you to start small on the side of your regular work. This is exactly how they are cashing in money by the monthly ADR subscriptions from people trying to do the business as a side hustle.
In reality, Nu Skin knows that you do not stand a chance to build an actual organization on the side of a full-time job.
After all, it takes 100% commitment and a portion of good luck to succeed. I think Nu Skin is fooling people when they make them believe they can build a business by just buying a few products each month.
A little “scammy” if you ask me.
To tell you the truth, no matter where you were at the time, you were told to apply this rule. I tried it a couple of times but was never comfortable with it.
Instead, I tried to book real meetings with spa salons, hairdressers, and nail salons to try selling Nu Skin’s products, and possibly also convince them to do the business.
Nu Skin’s Commission Plan
Now, let us take a look at Nu Skin’s commission plan:
“To qualify for commissions and as an active distributor, you have to generate 100 PSV (personal sales volume), and have to purchase or sell a minimum of $100 in products every month.
$2,000 in monthly sales must be made by their team, accounting for the majority of Nu Skin’s sales. Most of them will lose thousands of dollars in this scheme and have unsold products in their basements” (source: Fortune).
The commission data below are taken from Nu Skin’s 2013 report:
- 14.19% was the average of U.S. active distributes who earned a commission check on a monthly basis
- Observe that 85% of active distributors did not earn a cent
- 5.38% earned a monthly average commission of $30
- $176 was the average commission paid to U.S. Active Distributors each month – a yearly income of $2,112 according to the statistics
Needless to mention, these are NOT the numbers they show you at the meetings!
How Nu Skin Lurks You In
No, no…. at the meetings, they make sure to bring lots of success stories to wow you. For instance, they bring people from high up the chain who are making millions.
To be honest, there are actually a FEW people who are making millions with Nu Skin but to get there, you will need a big portion of good luck, know how to recruit people, and be good at bending the truth when suitable.
I say “be good at bending the truth” because the business model offers such a low success rate, and still, you are trying to convince your friends to invest time and money into the business.
Moreover, Nu Skin claims it is so easy, and that their business model is your ticket to financial freedom. In fact, they are as bold as stating that anyone can do the business, just by being a user of their products.
I certainly could not, and I ended up spending way too much on buying their products!
The few people that do make a decent income are doing it by first fooling their downline to invest in the big inventory package.
This, so they can have a 0.05% chance to start their own organization. And before they know it, they are stuck in the monthly ADR program, which forces them to buy even more products every month.
Not morally right to me. But hey.. you have probably heard of ’em people walking over corps to get what they want.
What Will It Cost To Join Nu Skin?
Product Package Cost
Like mentioned in the summary of my Nu Skin experience, you first have to purchase a product package. The product packages start from $475 and go up to $1,519.
However, I did not purchase any prepared package. I hand-picked the products that I wanted to purchase for a total of $1,000.
Automatic Delivery Rewards (ADR) Program
Let us move on to the Automatic Delivery Rewards Program:
You will also have to sign up for a monthly automatic delivery rewards (ADR) program.
No packages are less than $100 so it will cost you, at least, $100 per month to do the business. Money that will add up pretty quickly.
This is what it says in Nu Skin’s compensation plan:
< style=”text-align: left;”>ACTIVE REQUIREMENT: In order to qualify for any bonus under the Sales Compensation Plan, obtain 100 PSV and make five retail sales per month † LOI and above also need to have a monthly ADR order (ADR not required in Canada).
Besides, then they make it even more difficult to get your commissions by saying:
“Commissions and sales bonuses are paid only to Active Distributors. See Glossary for an explanation of Active Requirements, including retail sales requirements. You must have sold or consumed 80% of your inventory before your next order” – Source: NuSkin.com.
This is very odd. Why do they care about this? As long as you are continuing your monthly orders it should be okay right?!
Ways To Make Money With Nu Skin
To start with, it used to be 6 different levels you could earn money with Nu Skin, but they seem to have increased it to 10 levels.
To top it, they all come with lots of different rules and regulations, and it is very difficult to understand the actual compensation plan.
In addition, from the commission plan, only 1.59% actually make more than $500 per month.
If Nu Skin would skip all success stories in their meetings and only focus on “real” numbers, you would soon realize that NO ONE would invest any time or effort into this business.
Nu Skin knows this and the Company is smart enough to invite the same two couples as speakers, an American couple and a Japanese couple that has been incredibly successful with Nu Skin.
After trying this business model, I cannot understand HOW they did it?? But I do take my hat off to them and their success.
Now, let us move on to more serious matters.
Nu Skin Has been In Legal Hot-Waters More Than Once
Another issue that raises the question: is Nu Skin a scam?, is the fact that Nu Skin has been in legal hot waters numerous times. For example, in 1997, Nu Skin had to pay $1.5 million to resolve FTC charges over fat loss claims for supplements – Source: FTC.
What is more, in 2016, Nu Skin settled $47 million for operating a pyramid scheme after being sued by China in a Utah federal court. The Company was also forced to pay another $750,000 for bribing a top Chinese official with funds from Nu Skin’s charitable division after a U.S. Securities and Exchange Commission probe – Source: Wikipedia.
This is something to consider before jumping in headfirst.
With this in mind, let me present the pros and cons of Nu Skin.
Nu Skin Pros & Cons
Why don’t we start with this incident:
One of the co-founders of Nu Skin, Nedra Roney, was deleted from the website in an attempt to hide she is a co-founder because she has been involved in several lawsuits. She also pleaded guilty to prescription-drug fraud in 1996 – Source: Fortune.
This is only one of several outrageous stories with Nu Skin founders involved.
With that said, let us dig deeper into who Nu Skin is for.
Who Is Nu Skin For?
- Nu Skin is for the person who is comfortable with recruiting (mostly bothering) family and friends to get them to join, so they can grow their downline, and make an income
- Nu Skin is for the person who has tremendous sales skills and can convince people to join a pyramid scheme
- Nu Skin is for the person who does not really care about selling products but wants to focus more on the “business opportunity”
- Nu Skin is for the person who wants to keep paying the monthly ADR program to have a 14.9% chance to make a full-time residential income
Well, how does this sound?
Not too good right!?
Verdict – Is Nu Skin A Scam?
Going back to my question: is Nu Skin a scam?
No, I would not say that Nu Skin as a company is a scam, even though it thrives on unethical business practices.
Nu Skin has been around for a while, and some (a few) people are making a decent income from the business model.
It is up to each person to make their own judgment if investing in Nu Skin and its MML business model is worth it.
But I do think the MLM business model is based on a pyramid scheme that only rewards the people at the top.
For this reason, I now realize I was blindfolded when joining Nu Skin but did because I believed in my friend and her success story.
After all, she claimed she had made such a good residential income (from doing the Nu Skin business back in Sweden) that she was able to buy a spa and live off the money she made from it.
When I asked her why she stopped doing the business (she had taken a break from Nu Skin when we met), she answered she got tired of it and wanted to do something else.
This sounds odd to me.
Why get tired of passive income? You never get tired of money in this consumer society. Something was fishy about her story but I wanted to believe her.
Additionally, because she recruited me, she automatically became my coach (upline). When experiencing the tough reality of constantly getting turned down and only making one tiny sale, I was tempted to ask her for proof of income from when she did so well.
She never showed me anything that proved she had made an income from Nu Skin. I did not want to disrespect her and our short friendship and make it seem like I did not believe what she was telling me.
I am saying “short friendship” because this situation strained our relationship. I could not help feeling a bit fooled by her since I had invested in all the Nu Skin products for nothing.
Not to mention, the time I spent that I could have invested in other money-making endeavors.
Remember that she made a commission from my initial $1,000 investment, and also from me being in the ADR program for three months. I was her downline. That is how the business model works.
On a side note, another MLM giant I have been a victim of is Amway:
My Final Advice:
If someone approaches you and is trying to recruit you to Nu Skin or any MLM company – run!
Because you will end up investing more money and time than you will earn. There is such a small percentage that actually makes a good profit from MLMs.
With that said, I believe you have to have a huge network of business contacts or a comprehensive email list to be able to succeed. You can’t just turn to family and friends, or people crossing your path to make money with MLMs.
In addition, you may also have to pay for marketing efforts such as Google Adwords, Facebook Ads, etc., to spread the word and get people to buy products from you.
You will not sell enough products to benefit financially without help expanding your network.
Take my word for it.
A Proven Strategy To Make Money Online
There is a proven strategy to make legit money online, which is called Affiliate Marketing.
You can basically promote and make money on ANY product or service.
For instance, this is a recent commission I made:
But to make commissions like this, you first have to learn the ropes of affiliate marketing.
So, let us take a look at how to start as an affiliate marketer.
How To Start As An Affiliate?
It is easy as 1-2-3!
To start out, you need to choose a niche you have a passion for and start creating quality content that you post regularly for that niche. The more effort you put into writing relevant content, the more money you will make.
You can also market and sell other companies products or services and make a commission from the sales – all from your blog, website, and/or social media.
For this reason, you do not have to invent the wheel yourself.
Instead, you can jump on it and sell products that are already selling.
Learn From The Best!
If you want to get started fast and learn from the best, I highly recommend the Super Affiliate System 3.0.
I personally wanted to learn from the person who could show proof of REAL earnings. And I was amazed by John Crestani, the founder of Super Affiliate System 3.0, who actually lives up to making affiliate commissions of more than a million-dollar per year in net profits.
Yes, it is hard to believe, but see for yourself!
Better yet, the course is easy to follow and offers 50 hours of fundamental marketing training on how to make money with advertising networks.
Do Not Let Fear Stop You!
Do not let fear stop you, anyone can do this!
You do not have to be Einstein, or have technical skills, or experience to become a successful affiliate marketer.
In fact, this is one of the few businesses that ANYONE can do, no matter school degree, or prior experience.
And do not worry if you never built a website before. You can operate this business model without a website.
Before I go, I do have to let you know that affiliate marketing/blogging is NOT a get-rich-quick solution. It can take months until you can make a living on it.
This is a long-term business. A REAL business.
However, it can be as profitable as you make it. And there are no limitations to how much you can make.
As soon as your blog/website is gaining authority online, you will make commissions, and more and more companies will contact you about advertising, link insertions, etc.
It is snowballing from there, which is really great.
On a final note, I gladly accept feedback and comments on this article. You may have a different perspective or have another experience from being a Nu Skin distributor.
Remember this: The Future Is Your Creation!
About The Author
Stina Pettersson is an aspiring entrepreneur who is working on achieving her goals as an Internet Marketer.
Stina was tired of her corporate job as a Marketing Specialist and wanted to stand on her own two feet.
“My main goal is to maintain a flexible lifestyle, where I set my own schedule. Even though I work hard, I love what I do every day, and I also have the opportunity to help other people which is a huge gift.”
|I aim to provide the best and most accurate information to my readers on this website. Some of the links in this post are from sponsors. Read my Advertising Disclosure.|