Is Nu Skin a pyramid scheme or not? Many people are quick to label any MLM company an illegal pyramid venture, but is that really true? Is Nu Skin worth joining or not?
Let’s take a look and find out….
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Company Name: Nu Skin
Founder: Blake M. Roney
Price To Join: $25
My Rating: 5/10
~ The Nu Skin Review ~
What Is Nu Skin?
Nu Skin is an American-based MLM company that specialises in skincare and anti-aging products. The company has offices and distributors right across the globe. It was started back in 1984 by Blake M. Roney, with its headquarters in Utah.
The company has faced controversy and legal issues on a number of occasions over the years. Nu Skin has been accused of being nothing more than an illegal pyramid scam, as well as finding itself in hot water for lying about the annual income levels of its distributors and various other misleading marketing tactics.
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Nu Skin Products
The Nu Skin company has quite a few products in their range, and I won’t get into them deeply here. This review is more about whether people can make decent money with the Nu Skin business opportunity. But as the products are a major part of the deal, I’ll list the main categories.
- Weight Management
- Health and Wellness
- Essential Oils
- Peels and Masks
- Body Care
- Hair Care
- Oral Care
- Vitamins and Minerals
- And more…
There are really too many categories and way too many products to mention in this review. For more details it’s just easier to go to their website and browse their vast selection.
Overall the products seem to mostly have positive reviews, and I don’t just mean reviews written by people promoting Nu Skin. Many are for sale on Amazon, and the customer reviews there seem quite positive for the most part.
As is the case with just about all products provided by MLM companies, the prices are certainly up there. As an example, a bottle of Vitality dietary supplement pills costs $73 for 180 capsules.
The Nu Skin Compensation Plan
There are always basically two main ways you can earn with MLM:
- Direct sales to customers
- Recruiting a downline
Direct sales will only make you so much money in any MLM venture. The real way to find success is through recruitment, and lots of it.
When you recruit and grow your downline, then you become eligible to earn residual commissions from your recruits’ efforts, qualify for bonuses, and the ability to move up the company ranks and earn more.
Distributors earn 25% commission on retail sales, plus a further 5% on the efforts of those they directly recruit.
The MLM Business Opportunity
MLM is a tough way to make money. The benefits all go to the company and those at the very top, that’s why MLM is such a popular distribution method with businesses these days.
Basically companies like Nu Skin get a massive free workforce, only paying out money when people have earned commissions and bonuses. They don’t pay wages or retainers, the distributors do most of the buying, selling and recruiting.
It’s an awesome deal for Nu Skin, but a very ordinary one for distributors.
They also claim you will be starting your own business if you join their opportunity, but you never own your own business with MLM. It’s all a ruse.
Is Nu Skin An Illegal Pyramid Scheme?
Although Nu Skin and countless other MLM companies have been accused of being nothing but empty pyramid schemes, Nu Skin actually cannot be classified as an illegal pyramid scheme despite it’s pyramid compensation structure.
Because they have products, and products that can be sold directly to customers. An illegal pyramid scheme has no products and relies entirely on new investor money to keep going.
What I Like
- The company has been around since 1984, so they are no fly by night outfit
- They have a lot of different products that seem to be well received and reviewed
- The company, its products and business opportunity is global
What I Don’t Like
- All MLM ventures are an extremely tough way to make money
- If you can’t recruit, you won’t make much money with Nu Skin
- All the benefits go to the company while distributors work on the promise of commissions and bonuses
- Distributors do all the hard yards to make the company rich and not themselves
- The average annual income is less than $500 before expenses
- The products are expensive
- If you don’t meet the minimum sales criteria by the end of a given month, you won’t be paid any commissions and bonuses that are technically owed to you for your efforts
- The MLM compensation structure of Nu Skin is all a bit of a rort for distributors
How Much Does Nu Skin Cost To Join?
There is a $25 fee to join as a distributor, then you need to either purchase or sell at least about $100 worth of products every single month to remain active as a distributor.
Is Nu Skin a Scam?
Despite being embroiled in a few legal wrangles over the years, Nu Skin is not a scam. It’s just a typical MLM opportunity. While it’s not impossible to make money in this venture, it’s going to be a real uphill battle for most people to earn any sort of useful income. Only about the top 1% of distributors make enough money to classify it as a fulltime, liveable income. The vast majority don’t even make enough to cover their “business” expenses. The company has been around for well over 30 years, so the market has already been saturated with its name.
If you are serious about starting a venture that can make you a really good income without driving yourself crazy in the process, then I’d give Nu Skin and anything MLM a really wide berth. There are easier and far better ways to make money.
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