As costs continue to increase and salaries remain stagnant, more and more people are looking for opportunities for a side business to earn extra income to support their main income.
One of the most common and intriguing side businesses you can find is multilevel marketing (MLM) opportunities.
I say intriguing because the potential to earn big money and even replace your day job is very real. But, only a few people are able to reach this potential as the vast majority usually fall short or don’t end up earning anything at all.
There are a lot of factors that will contribute to your success in MLM and one of them is the company that offers this opportunity.
In this review, we’ll be looking at an MLM company called Nu Skin. It’s a company that sells a variety of products in the field of skin care, personal care, cosmetics, and more.
It is also one of the biggest and well-known companies in the field of MLM. As a distributor, you can profit from selling the products and commissions from achieving certain individual and team sales quota.
The amount of money you can make here will depend on a lot of factors, so it’s hard to determine how much you can really make. But is Nu Skin really a legit opportunity to make money or a scam?
You can also check out the step-by-step training that helps me earn over $10,000+ per month working from home.
Contents
Nu Skin is a Legit MLM Company That Pays
Nu Skin is an international MLM company that offers a wide range of products. It has skin care products, personal care products, cosmetics, and even dietary supplements.
It was established in 1984, so this MLM company has been operating for 35 years.
As an MLM company, it offers an opportunity for people to make money. You can make money buying products at wholesale prices and selling them at the standard retail price to earn profits.
You can also earn commissions for achieving individual and team sales quotas. From what I’ve seen about the company, I can say that it is a legit MLM opportunity.
The compensation plan the company has focuses on rewarding distributors whenever they sell the product and not when they recruit people to be members.
The product itself is loved by the majority of people who use them, so you know what they are selling is of high quality.
There are, however, some issues with this MLM company. One of the issues that I found is that the majority of their distributors don’t really make any money with this opportunity.
Another issue I found is that there have been a lot of complaints about the company’s shady practices, particularly, when it comes to recruiting people to become a distributor.
There are also a lot of complaints about Nu Skin not being truthful about the realities of this business and making false claims about how much you can really make with this opportunity.
I’ll discuss these issues in more detail as we progress in this review.
Who Uses Nu Skin?
Nu Skin is designed for two types of people with one type being people who are looking for skin and personal care products, supplements, and cosmetics that they can use to improve their physical appearances.
The other type are those who are looking for a side business in order to make money. For people looking to purchase skin and personal care products, Nu Skin offers a variety of high-quality products.
The company has a wide range of products in skin care, personal care, cosmetics, dietary supplements, and more. As for how effective they are, the majority of the people who tried them are generally happy with them.
If you are looking for an opportunity to make some money, Nu Skin has you covered there as well through their MLM opportunity.
As a distributor, you can make money through the profits of selling the products and through the commissions you earn for reaching certain sales quota.
To become a Distributor, you need to invest in an introductory package to be able to start the business. I’ll discuss in more detail the registration process, as well as how you make money with Nu Skin in the next section.
How Do You Make Money with Nu Skin?
As an MLM company, Nu Skin offers two main ways for you to make money. You can earn profits from personally selling the different products the company offers.
You can also earn commissions and bonuses when you and your team achieve certain sales targets within a certain time period.
To be a Distributor, you first need to fill out an application form, which you can find on their website. After filling out the required information, the next step is to choose the Introductory Package.
The available packages range from $50 to $1,299. The packages will include several products that you can sell and some other materials you might need to start the business.
You can join as an individual or business entity. As an individual, you need an initial order of at least $100, while as a business entity, you need at least $1,495 worth of products.
The company said that there is no need for you to pay anything to become a Distributor, but it is a bit weird that you are taken to the Introductory Package page after filling out the application form.
It is also important to note that you can’t really promote anything or sell anything if you don’t have products, so you will still be purchasing some products to make a profit.
As for the compensation plan, Nu Skin focuses on 3 important aspects, Share, Build, and Lead. The Share aspect is basically you earning a retail profit when you buy the products at member price and sell them at retail price.
You earn a profit of 25% from selling the products at retail price. You can also earn a 5% – 20% bonus whenever your registered customer purchases Nu Skin products.
The Build aspect is basically you accumulating blocks to earn bonuses. To earn a block, you will need 500 worth of sales points. There are two blocks you need to accumulate, the Building Block and the Sharing Block.
The Building Block is basically the sales volume that comes from people who are recruited by your downlines. The Sharing Block is the sales volume that comes from Distributors or Customers you have personally recruited.
Blocks reset each month and your goal is to qualify as a Brand Representative to earn Building Bonus. To do this you will need 12 Building Blocks, 4 of which are Sharing Blocks within 6 consecutive months.
Once you achieve this, you can earn Building Bonus, starting at 5% on your 1st and 2nd Block. It can go as high as 40% once your team reaches 16 Blocks. Building Bonuses are given weekly.
The last one is Lead, where you can earn Leading Bonus whenever someone from your downline becomes a Brand Representative. You can earn 2.5% to 10% on the commissionable sales of your team.
There’s a lot more about Nu Skin’s compensation plan, but that is the gist of what you need to understand. If you are interested in learning more about the compensation plan, click this link.
It is important to note, though, that you need to at least achieve 100 personal sales points per month to be able to qualify for commissions and bonuses.
At a glance, you might think that Nu Skin’s compensation plan provides a lot of commissions and bonuses to help you make more money.
In reality, though, only a few people make money from this opportunity. In fact, their 2017 Compensation Summary showed that only 15.42% of Distributors earned commissions.
The remaining 84.58% of Nu Skin Distributors didn’t qualify for commissions or bonuses, thus they probably earned only from the retail markup.
Another issue with Nu Skin is that some of its Distributors engage in shady practices to try and recruit people or get them to buy products.
There have been complaints that Distributors were not honest about the realities of the business and how hard it really is to actually make money.
There is even a complaint where a Distributor convinced her to buy certain products and presented a certain price but when it was time to pay up, the prices were suddenly doubled.
The company itself is actually engaging in these shady practices. In 2012, Nu Skin was exposed for double-listing distributors in the United States Million Dollar Circle to make it appear they have more successful distributors.
In 2014, China fined the company for misleading local consumers and illegal product sales. The fine amounted to more than $500,000. These are just some of the most recent brush ups the company had with regulators.
Now, these issues are not really new or unusual in the MLM industry. This is actually the reality of the MLM business, as not everyone succeeds or makes money at all.
More often than not, it is only those at the top or the owners of the company itself who really make a good profit with this kind of business model.
What I Like about Nu Skin
Now that we know what Nu Skin is and what it offers, it’s time to discuss what I like about this MLM opportunity.
- One of the good things about Nu Skin is that they have an option for you to be a Preferred Customer, where you can purchase the products at Distributor prices. This is good because not everyone who joins an MLM opportunity does so because they want to make money. They only join because of the discount that members get for the products. So it’s good that the company has this option.
- Another thing that I like about Nu Skin is that their products are generally liked by a lot of people. Sure, there have been some complaints about them, but the majority of the people who use them are generally happy. This will make it easier for you to promote and market them.
- I also like that the compensation plan of Nu Skin focuses more on product movement than on recruitment. Yes, there are some requirements where you will need to recruit new Distributors or Preferred Customers. But in general, the rewards they have are geared more towards the sale of products.
What I Didn’t Like about Nu Skin
Of course, there are also a lot of things that I didn’t really like about Nu Skin, which I’ll be discussing in this section.
- The first thing that I didn’t like about Nu Skin is that there are a lot of complaints about shady practices, not only from Distributors but from the company itself. The company has actually been involved in some lawsuits and settlements.
- I also didn’t like that a lot of Nu Skin’s products are a bit overpriced. Yes, people like them generally, but it still doesn’t change the fact that some of the products are overpriced, especially the dietary supplements.
- I also didn’t like that the 2017 Compensation Summary of Nu Skin showed that only less than 16% of Distributors qualified for commissions and bonuses. This means that more than 84% of members in the U.S. didn’t earn any commission or bonus from the company in 2017. This is a big number and really says a lot about the reality of this business and how hard it is to succeed.
Do I Recommend Nu Skin?
After learning more about Nu Skin and what they offer, I can say that this is an opportunity that I don’t really recommend if you are looking to make money.
Yes, they do have an appealing compensation plan and the products they sell are high quality. But the reality of the business is a bit bleak.
It’s not really encouraging to know that close to 85% of Distributors in the U.S. did not qualify for the commission or bonuses.
This tells you that you are more likely to lose money with this opportunity than earn from it. The figures for those who earned, are not really encouraging either.
It shows that only 3 out of the 10 levels the company has, earned a decent income that year. And those 3 levels are the top 3 levels you can achieve.
Only the Diamond Executive and Blue Diamond Executive achieved 6 figures in the average annualized commission with $111,024 for Diamond Executive and $519,576 for Blue Diamond Executive.
If you are looking to just be a customer of their products then you can just be a Preferred Customer. But if you are looking to make money, then you are better off looking at a different opportunity.
Frank
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