One of the biggest MLM Businesses around that has been operating is many years is the Nu Skin. But is it really a good business opportunity? Or just a scam or a pyramid scheme? 

Welcome to today’s MLM business review: “Nu Skin Is A Scam: True Or False?” 

Hello, I’m glad you’re here reading this post as this is made for you if you’re looking for a legit and sure way to make money from home. 

Doing research before diving into any opportunity is the best way to gear up ourselves against online scams. So, I promise you to deliver every information that you need about Nu Skin to help you decide whether this business is the right one for you. 

I’m not associated with Nu Skin, so you can rest assure that this review will be unbiased and honest. 

Ready? 

So, let’s get started… 

Table of Content

Nu Skin Reviews: Summary 

Company Name: Nu Skin

Joining Price: $100 up to $1,291.50

Rating: 50/100

Recommended: No 

Summary: Nu Skin is a multilevel marketing (MLM) business with high quality beauty products and it’s definitely not a Scam BUT you should NOT join if you really want a profitable home-based business. 

Here’s why.

Multilevel Marketing (MLM) businesses have a very low success rate of 1%. This basically means that more 99% of all who join an MLM business lose money. 

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What Is Nu Skin?

RNu Skin is an international MLM business that develops and sells cosmetics, nutritional, dietary and personal care products. It has been operation since 1984. 

The company has around 200 products circulating in Europe, North America, South America, China, Middle East, Africa And Asia Pacific – totaling more than 50 countries. 

Nu Skin Entreprises Most Popular Brands are the Pharmanex and the Nu Skin – including the AgeLOC, Nutritional Products, Vitamin Supplements and Weight Management products. 

Nu Skin’s Annual Revenues:

Revenue 2015: $2,247 million

Revenue 2016: $2,207 million

Revenue 2017: $2,279 million

Revenue 2018: $2,680 million

Behind these numbers are the hardworking affiliates and marketers associated with Nu Skin. Whether these associates are earning money or not, is another story. I’ll get back to that later. 

Nu Skin Reviews: Legal Problems

 There have been several issues about the Nu Skin that make people think that it is a scam. Some of the legal problems that Nu Skin had faced previously were: 

1990 – the Federal Trade Commission (FTC) investigated Nu Skin due to complaints of its multilevel marketing practices.

1992 – Nu Skin settled with five U.S. states that had accused the company of deceptive advertising and overstating the income earned by distributors.

1994 –  due to FTC investigation, Nu Skin paid $1 million and signed a consent decree prohibiting it from making deceptive or unsupported claims about its products. 

1997 – Nu Skin paid another $1.5 million to the FTC to settle ongoing allegations of unsubstantiated promotional claims.

2014 – the Chinese government announced that Nu Skin will be investigated due to a People’s Daily newspaper report calling it a “suspected illegal pyramid scheme.”

2016 – Nu Skin paid a $47 million settlement for operating a pyramid scheme after being sued by China in a Utah federal court. More so, Nu Skin was also obliged 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.

Nu Skin Reviews: How To Join?

To join the Nu Skin Team and become a Brand Affiliate, you need to buy an introductory package. The price can range from a little bit over than $100 up to $1,291.50 according to the product package you want to. 

The steps are very easy.

  1. You just go to their website. nuskin.com (this domain will automatically redirect you to the regional website according to your current location). 
  2. Click “Join The Team” and you will see the “Join Nu Skin Now” Button, where it will lead you to the Brand Affiliate Sign Up Form.
  3. Fill up the form – name, last name, email address, phone number etc.
  4. You can open either an individual or business affiliate account.
  5. Before you proceed, you’ll be advised to read their compensation plan. 
  6. Lastly and the most important thing is purchasing the Introductory package.

Contents:

1-Curl & Lash Mascara
1-ageLOC Elements
1-Epoch Polishing Bar
1-Liquid Body Lufra
1-AP 24 Whitening Toothpaste
1-NS Renu Hair Mask
1-Epoch Sole Solution Foot Treatment
1-Polishing Peel
1-Face Lift Powder Original
1-Face Lift Activator Original
1-Epoch Glacial Marine Mud
1-Lip Plumping Balm
1-Liquid Body Bar
1-Brush Fan Lift 3pk

Contents:

1-Jumpstart
3-Fit
3-Control
12-TR90® GreenShakes

Nu Skin Reviews: Success Rate

Just like any other MLMs, generating a full-time income with Nu skin is quite complex and far to be easy. 

There are 2 fundamental ways of earning money with Nu Skin: By reselling products purchased from the company to consumers; and Through sales compensation. 

If you have seen their compensation plan, it’s actually an income disclosure for 2018 and it serves as a disclaimer as well since Nu Skin have had issues for misleading compensation of their Affiliates in the earlier years. 

As mentioned earlier, the company is earning millions of revenue every year because of their hardworking brand affiliates and marketers. Unfortunately, majority of their  what their affiliates and marketers are actually not even earning a decent “full-time income” which can support a family and its needs. 

Take a look closer…

A monthly income of $151.34? Poor Brand Affiliates. That’s only around $5 a day? and considering the investment of up almost $1,300? No way! 

More facts to chew in: 

  • The earnings were before expenses.
  • Out of  69,871 Active Brand Affiliates during 2018, there were only 0.53% (0.20% Emerald, 0.12% Diamond + 0.21% Blue Diamond) who are earning about $50,000 a year. 
  • Active Brand Affiliates are only 27.30% of all Brand Affiliates, which means the real success rate is much much lower than 0.53%! 
  • Active Affiliates are those who work their butts off, have skills, deliver consistent work, and dedication – of course!

Computation of the real success rate: 

Total Brand Affiliates (69,871 /27.30%) = 255,937 

Total Brand Affiliates earning $50K/year (69,871 X 0.53% ) = 370

Real Success Rate: 370/255,937 = 0.14%  

This is much lower than the average of 1% success rate of all MLM Businesses.

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Nu Skin Reviews: Compensation Plan

Why is it hard to earn a full-time income with an MLM business?

The Above video is just one of the complicated compensation plan that the Nu Skin has to offer.

So, let say your desired full-time income is equivalent to a decent $5,000 a month. If you are a Member or a Brand Affiliate (in case of Nu Skin) that earns 5-20% of your personal sales, then you need to sell $25,000 worth of products every single month (considering you’ll get the 20% commission). 

The main challenge in selling the MLM products is that they are relatively expensive compared to the products outside MLMs retail market – and people who buy these products are mostly those who patronage the products itself. And you bet they’re not that many. To sell $25,000 a month with direct selling is nearly impossible.

Another thing is, they’re a lot of affiliates or members of the same MLM company everywhere. Yes, even in your own town. So, the competition is high because the other distributors are basically on your team (your crossline) when you just got started.

What’s your last option? You need to RECRUIT new members/affiliates who will pay that high introductory package,  face the same problems and then quit after a couple of weeks or months max.

What will happen to your business then? D.E.A.D.

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Is Nu Skin A Pyramid Scheme Or Scam?

This is one of the biggest questions that people have when they hear about Nu Skin and it’s business practice. In fact, Nu Skin has faced this problem and paid a high price in the previous years.

So, the good news – after all the allegations and legal issues, Nu Skin is still considered as a non-pyramid scheme. In short, it’s a legit MLM business after the settlement with the FTC and with the court in Utah with had cost Nu Skin for more than $50Million so far. 

The bad news is – a lot of people still think it is a pyramid scheme and scam. And that makes it more difficult for new brand affiliates to achieve success in the Nu skin business.

Take a look at this illustration: Unfortunately, this is exactly how Nu Skin and all MLM Business Models Look like.

Therefore, the people who join Nu Skin or any other MLM business end up focusing on RECRUITING because that’s where the money is in the end (which is the main element of a pyramid scheme).

And those who do the direct selling stop because they realize soon enough that it’s just a waste of time since their goal was to earn a consistent full-time income.

That’s almost impossible with the direct selling alone because there are a lot of distributors in the same area and the retail price of the products are too expensive for the non-members.

How To Spot A Pyramid Scheme?

People get often confused about whether a company is a pyramid scheme or a legit MLM. Unfortunately, it’s not easy to distinguish one from the other.

Let’s take a look at the short video below explaining about pyramid schemes.

Personal Experience With MLM Businesses

If you’ve read my bio, you’d probably remember that I tried at least 3 MLM businesses for many years. 

Probably I thought that it was as easy as they presented it to me and maybe because I thought it’s a quick fix business. 

I thought – all I had to do was to recruit 2 people – one on my right and one on my left side – and the business would take care of itself. I thought it was that passive! And that’s far from the reality.

My last journey with an MLM business was actually the “nicest one” (among the others)- great products and a good company. But no matter how great the products were and how active I was – I didn’t make a fortune.

I was recruited by my brother and a lot of my family members became members too. I recruited my friends too – some of them joined and some of them became aloof.

But you know what was the BIG problem then?! As the team became bigger, the communication became more difficult. The further the downlines were, the more difficult it was to be connected.  Which means, the recruits of my recruits’ recruits were no longer connected to me. So, once they stopped working, the business died.

Why? it’s because it was actually easier (although very difficult) to convince people to join an MLM business than to convince them to stand up and talk about the business.

Most of the people who join MLM do actually expect their uplines to do all the sales work. Little they realize that this mindset is actually the one killing the team – the idle members.

MLMs are not a quick rich scheme – it’s a real business that requires an enormous effort of selling tasks and team building, just to name the few.

BUT honestly, you’d be better off if you build your OWN business. 

Only 1% Make Money With MLM Business 

So, why are there only a few people who make real money with MLM? Because it’s designed that way – Only people on the top get rewarded and the people at the bottom lose money.

Here’s another static to digest on: Of all the people that do make money, the average YEARLY salary is only $2400. That’s only $200 a month or around $17 a day. And Nu Skin is not exempted at all – this is proven to be true through their income summary.

That success rate is even lower than 1%. Nu Skin has a success rate of only 0.14%. Which means more than 99% will never reach a higher level in the ladder. 

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Pros And Cons Of Nu Skin

PROS:

  • Long history of existence
  • Consistent Profitable Years
  • A wide selection of products
  • High-quality products
  • Open in many countries worldwide

 CONS:

  • So many legal allegations and litigation about its business operation.
  • Saturated market
  • Herbalife has a very low success rate of only 0.14 %. This is much lower among the other MLMs
  • MLMs are commonly and mistakenly thought as pyramid schemes and scams
  • Needs a lot of time and effort in selling and team building
  • Focus on recruitment – including families and friends

Here’s A Better Way To Make Money

I honestly hope that by now I’ve talked you out of joining Nu Skin. Nu Skin and its products are good. Unfortunately, MLM is such a broken money-making system and extremely hard to succeed with.

Talking about my experience with at least 3 different MLM businesses over the years, I know it’s not an easy business model, especially if you don’t like product demonstration tasks, direct selling, business presentation and bothering your families and friends over and over again.

If you’re a person like me who prefers a more silent work atmosphere and can work anywhere and anytime, then you should check out Wealthy Affiliate if you still want to have an home-based and online business. 

Wealthy Affiliate is the best place to learn how money-making online works and it has taught me how to earn up to $1174.09 a day. 

It’s completely free to try too! If you want to learn more, click below:

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If you have the right training, supportive community & mentor, making money online is easy. Click below and get all the three: