Is Nu Skin a scam? Anti-aging is an enormous industry and appears to grow over time. If you like to help people look and feel so much younger, it might be a fun hobby or business for you to sell anti-aging skin products.
The Nu Skin products do not seem out of place in a market that can cost a tiny glass of cream for $50 or more even when it’s shockingly costly. The outcomes can vary from person to person, but I assume that this is a product capable of surviving in the free market without a business model of multiple levels.
You may have learned of Nu Skin if you’ve recently looked at any skincare and vitamin supplement MLM. This company offers its independent contractors, called distributors, a direct sales MLM sales model. Through putting an online application on the Nu Skin website, anyone can enroll and become a distributor.
The question of some of us is, are they a legit MLM company? Are the products effective? Do you really earn extra cash for joining their company? Let’s find out with this eye-opening review.
What is Nu Skin?
Nu Skin was founded in 1984 and is a Utah-based direct sales MLM company. It offers various lines of skin lotions, spa products, supplements, and even foods. The 200 + products of Nu Skin rely heavily on the assumption that their use will delay and/or mitigate aging. In the ageLOC lines of skin care and nutritional supplement products, this statement is highly supported.
Nu Skin has worked overtime to extend its product line and acquired scientific and healthcare companies.
In 1996, the Nu Skin product portfolio was transferred to Pharmanex, a supplementary nutritional agency. With this addition, the Pharmanex BioPhotonic Scanders, an appliance that is meant to measure and report carotenoid levels on the skin via a Skin Carotenoid Score, was launched. In 2011, Nu Skin acquired a genomics company based in Madison, Wisconsin, from LifeGen Technologies. Nu Skin was thus able to start its ageLOC product line.
How Does Nu Skin Work?
Nu Skin has no product selling in shops. You can buy products on the website of Nu Skin online if you already know the customer’s ID of your distributor. Additionally, by applying for a dealer, you can purchase and sell Nu Skin products. To do so, a distributor ID must also be known.
At just $25 the registration price is low. Additionally, a new distributor is not required to sell a minimum consumer size. However, he will have to buy inventory at a wholesale price and sell it to new clients in order to start earning commissions and bonuses. He also needs to hire existing customers and non-customers to become distributors of Nu Skin.
How Much Can You Make With Nu Skin?
To enter, a starter kit of $30 must be purchased. You are eligible for 25% wholesale discounts from there, and immediately you can start earning a commission from distributors and customers.
At just $25 the registration price is low. Furthermore, a new distributor is not required to sell a minimum product volume. Nevertheless, he must buy skincare products at a retail price and sell them to new customers in order to continue collecting commissions and bonuses. In order to become a successful distributor of Nu Skin and earn a lot of extra cash, he will also have to recruit existing clients and non-customers to be part of the Nu Skin company. Just like the usual MLM companies.
The compensation plan is quite straightforward in this sense. There are different levels of bonuses and points, but the core structure remains the same it is by selling products at retail prices and reaping wholesale profits and earning a 5% commission on distributor and customer purchases.
The stock of retail is decreased by 25%. For example, you need to spend $492.75 on wholesale order if you want to buy and sell the 3 units ageLOC Future Serum. Then, once the customer has purchased your products, you can pocket $164.25 for yourself.
Products from Nu Skin are not inexpensive. Fortunately, a 100% cash back guarantee for returns is now available for 30 days. It also provides 90% monetary compensation for products over 30 days old returned.
Nu Skin distributors also earn extra commissions from their downline, so long as the downline meets a certain sales volume. You, therefore, must ensure that your downline makes 200 dollars in sales as a new distributor with a few recruits before you get this $10 fee.
What I Don’t Like About Nu Skin
Like the usual MLM company, there are things that I don’t like about them or things that can make me think if it is worth it to join the company and earn money.
Products of Nu Skin are costly. County products require extensive proof that these products are good and actually work as claimed, both for the potential and even current customers of Nu Skin. This is a shorter production period. Finally, some customers are simply out of reach because the budget for such expensive purchases is not available to them.
There are some false product advertisements.
Five countries have sued Nu Skin for over-recovering the income of its distributors and the General Public Prosecutor for Connecticut called it an illegal pyramid. He also encountered difficulties with the FTC and had to pay $1 million in 1994 and $1.5 million more in 1997. The Chinese State Industry & Commerce Administration recently fined $540,000 for illicit consumer sales and dissatisfaction in 2014.
What Do I like About Nu Skin?
Frankly, despite the history of FTC trouble and several other places about misleading claims, their products receive some pretty good reviews. I am constantly concerned about distributors writing fake reviews, but it’s generally quite clear whether a product is bad in Amazon reviews.
As a customer, I believe that it is ridiculous to pay $500 for a couple of products that are supposed to make you look younger, but people are paying for crazier things every day. And to be honest, it is insane.
Is Nu Skin A Scam? Final Thoughts.
In view of its history, the relatively small product category and the extraordinarily high costs of some of its products, this MLM scheme is going to be hard to sell for you.
Their income statement is sober, even according to MLM standards: just 36 percent of all distributors have been described as “active” and only 19 percent of these active distributors have earned any money in a given month. That’s pretty bad, therefore. If you think that you can overcome the system, at least do your homework and know what to do.
I can not recommend this company as a business opportunity, given the continuing legal problems with Nu Skin and its products. Furthermore, since both its managers and distributors have overloaded the products of the company, it is hard to believe the product benefits of the company and its reported collateral. You’re better off passing Nu Skin with so many other business opportunities.
The goods are so pricey, and the business has a sketchy past of false claims. It’s a real bummer. Although I think it would be exciting for me to get involved in the anti-aging and beauty cream sector, this company is not something I would like to do or spend time with personally.
I prefer affiliate marketing over MLM’s. If you are looking for a legit way to make money online with affiliate marketing, make sure to read my wealthy affiliate review, a place where you can learn how to turn your hobby into a profitable online business.
Essentially, there’s a better way to kill your day’s work if you’re doing it for money. It is yourself who can really answer the question “is Nu Skin a scam”, is it something you can do to earn extra cash? For me, this is not the thing that I can do since I told you the reason earlier. However, I believe that Nu Skin is a company wherein it can still be your option to earn money, especially if you are into skincare products and recruiting people.
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