Today we will talk about Nu Skin Distributors and see if they are making money by being a Nu Skin distributor.
When looking at multi-level marketing companies we thought we would look at a Nu Skin distributor opportunity and in doing so we were looking for several things.
We want to make sure they have a good product that they stand behind that is reasonably priced, a good compensation plan that offers a good commission and opportunities for advancement, and what kind of reviews are available from people who have been involved with the company. With this in mind, we researched this company and our findings are as follows.
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Nu Skin Enterprises
Nu Skin Enterprises is a company based out of Provo, Utah and was created in 1984 by Steve Lund, Blake Roney, and Sandi Tillotson and they have built the business into a 2.28 billion dollar a year entity.
This company develops and markets skincare products under the Nu Skin label and also through their Pharmanex label, they develop and distribute dietary supplements and boasts over 200 personal care products.
Nu skin has over 1.2 million distributors and does business in 54 markets worldwide.
Nu Skin has over 200 personal care products that have scientifically developed and marketed as products that make people feel and look younger and more vibrant.
They label them under different categories including Nutritionals, Body Care, Face Care, Epoch, and Age Loc.
Popular products include Herbal Mineral Bath, Liquid Body Lufra, Liquid Body Bar, Body Care Essentials Package, and many others.
They also have a large line of supplements for everything from weight loss to immune system boosters.
Their main moneymaker is its anti-aging products.
Nu Skin has also developed what is called the BioPhotonic Scanner which measures and scores carotenoid skin levels that the customer can monitor themselves.
There are scores of reviews, well over two million alone at consumer affairs on the internet about how these products actually do make you look younger and almost instantly at that and many beauty therapists actually use these products in their businesses.
The products are not cheap but they are very popular and the company stands behind its products with a 100 percent money-back guarantee and if a customer does ask for a refund after 30 days Nu Skin will allow the distributor a 90 percent commission, which is pretty amazing.
Nu Skins Compensation Plan
This company has a very advanced compensation plan that has many levels and at first glance is very confusing.
They call the program Velocity and it is stocked full of so many different ways of making money it is easy to get lost trying to get a handle on it.
They break it down to categories of share, build and lead and they have mountains of material on their website to help their distributors make money.
There are many different levels within the network and they all involve recruiting fellow distributors and building a solid downline.
To qualify seems to be easy and you can qualify as a distributor for as little as $25.00 and then you must reach certain sales goals to advance. You must be sponsored by another distributor and then start building your customer base as in order to start earning commissions requires buying products wholesale and selling them to your customer base and you also must recruit other distributors to be put in your downline.
You get a 25 percent discount on all products purchased wholesale and you keep the difference of the retail sales starting out until you have reached certain sales goals and your distributors under you reach their sales goals.
Nu Skin has had a series of legal issues throughout the years and has been sued by several states claiming false sales reports for its distributors and has even been labeled a pyramid scheme by one state.
Nu Skin has settled several lawsuits by paying out millions of dollars from trouble with false claims by the FTC and has a bad reputation in the skincare niche.
The Pros and Cons of this program
As in any MLM program, you will have pros and cons to consider when thinking about investing in both time and money into building your own business.
The pros of working in this program would be:
- The products are sold only through distributors
- They have a good customer base that believes in their products
- There are many different ways to make money
- A solid based company with a proven track record of backing up their products.
After digging deeper into the company’s history we found considerable red flags and these are hard to look past.
The cons would be:
- Too many legal problems
- Difficult to understand sales goals and downline requirements
- Products that are very high priced
- Bad reviews by former distributors
Our Take on Nu Skin
Considering the high cost of the products and the complicated sales goals and its legal problems this program has a lot of red flags.
They have been sued many times for making false claims and have had a rocky track record of distributor results as many former distributors claim working for them was a waste of time as they never really made much money compared to the amount of work they put in building their customer base and selling requirements by their downlines.
We have to give this multi-level program a thumbs down and can not recommend working this program.
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