Is Nu Skin a Pyramid Scheme

Is Nu Skin a Pyramid Scheme? No, But Read This First!

We all want to find ways to make money online since it would be a great income addition especially when we already have full time jobs. However, we should be wary especially when the opportunities we find are too good to be true.

One of the opportunities we all have encountered are pyramid schemes. Pyramid schemes are illegal.

Today, we will be looking at Nu Skin. Is Nu Skin a Pyramid Scheme? You will know as you read on.

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What is Nu Skin?


Nu Skin Enterprises is a multi-level marketing company founded by Blake Roney in 1984. It has two brands in its name called Nu Skin and Pharmanex.

The company's philosophy is "all of the good, none of the bad". The company strives to live up to it through their innovative products, which attracts high-caliber salespeople.

Nu Skin sells personal care products. The product selection include:

  • spa products
  • hair products
  • anti-aging products
  • cosmetics
  • whitening products
  • skin care products
  • peels, masks, and scrubs
  • moisturizers
  • nail products
  • body care products
  • oral care products
  • sun protection products

The company is currently based in Provo, Utah, United States.


How to become a Nu Skin distributor


To join Nu Skin, go to this link.

These are the steps you need to follow to ensure a smoother application process:

  1. Select your account type. Choose whether you want to apply as an Individual Brand Affiliate or a Business Entity Brand AffiliateIndividual Brand Affiliates are those who want a personal account. Business Entity Brand Affiliate are those who want to apply as their existing business entity.
  2. Fill in your sponsor's Brand Affiliate ID.
  3. Fill in your personal information.
  4. Read and agree to the Terms and Conditions.
  5. Add your bank information (optional).
  6. Choose your starter kit.
  7. Fill in your payment details.
  8. Just wait for your package to arrive. Congratulations! You are now on your way to becoming a Nu Skin distributor.

Nu Skin Enrollment Kits


Nu Skin has the following enrollment kits to choose from:

  • ageLOC LumiSpa Accent Kit Normal/Combo - $348.00
  • Best of Nu Skin Kit - $190.00
  • ageLOC LumiSpa Demo Kit - $359.00
  • New Nu Skin Facial Spa - $349.00
  • Beauty Devices Kit - $718.00
  • Pharmanex Anti-Aging Package - $384.35
  • Lumicentials Kit - $719.00
  • Nutricentials System Normal/Dry - $150.00
  • Nutricentials System Combo/Oily - $150.00
  • ageLOC Transformation Package - $400.90
  • Nu Skin 180° Anti-Aging Skin Therapy System - $255.30
  • Nu Skin Clear Action Acne Medication System - $119.05
  • TR90 30-Day Chocolate & Vanilla Kit - $512.80
  • TR90 30-Day Vanilla Kit - $512.80
  • TR90 30-Day Chocolate Kit - $512.80
  • TR90 30-Day Greenshake Kit - $512.80
  • TR90 90-Day Chocolate & Vanilla Kit - $1,291.50
  • TR90 90-Day Vanilla Kit - $1,291.50
  • TR90 90-Day Chocolate Kit - $1,291.50
  • TR90 90-Day Greenshake Kit - $1,291.50
  • TR90 90-Day Greenshake, R2 Kit - $1,249.00
  • ageLOC Me Starter Set - $512.80
  • Wellness Premium Kit - $349.00
  • ageLOC Dermatic Effects 17-Piece Kit - $687.50
  • Ultimate Waterfull Mask 45pk - $687.50



What are Nu Skin distributor levels?


There are 9 total ranks in Nu Skin. Each rank requires the member to reach a certain sales quota on a monthly basis.

  1. Brand Affiliate
  2. Qualifying Brand Representative
  3. Brand Representative
  4. Gold Partner
  5. Lapis Partner
  6. Ruby Partner
  7. Emerald Director
  8. Diamond Director
  9. Blue Diamond Director
Nu Skin ranks

Nu Skin Compensation Plan


Nu Skin's compensation plan can be accessed and viewed through this link.

The Nu Skin compensation plan has three stages:

  1. Getting started. Enroll new customers and distributors to begin earning Fast-Start Payments, retail profits and volume commissions.
  2. Leadership Development. Build your organization to become an executive leader and see your earnings multiply.
  3. Nu Skin's Revolutionary Wealth Maximizer. Increase your earning potential as Nu Skin pays you the maximum commission possible.

I found a video on YouTube that could explain the compensation plan better. You can watch it below.


Nu Skin Pros and Cons


PROS

  • Company has been around for a long time
  • Worldwide community of members
  • Good quality products

CONS

  • Expensive startup cost
  • Expensive products compared to competitors
  • High quota required to climb ranks

Do Nu Skin distributors make money?


According to Nu Skin's 2019 Sales Compensation Summary, 11.92% of active Brand Affiliates earned $33 a month. However, it should be noted that active Brand Affiliates represent 33.93% of total Brand Affiliates.

This data alone shows us that a large portion of those in the lowest rank are inactive, meaning that they did not make any sales at all. However, this figure is still smaller than the other MLMs we looked at, making this MLM more profitable than the other ones.

The earnings are still quite sad, however. $33 for all the effort you made as a distributor; from ordering products, packing and shipping them, marketing, and hosting sales parties. You did not even earn back the money you spent on your starter kit.

This is usually the case with these MLMs. I truly believe that there are better ways to make money online than joining MLM companies such as Nu Life and Valentus.



Nu Skin lawsuits


Nu Skin has its own fair share of lawsuits and controversies.

In 1997, Nu Skin was ordered to pay a $1.5 million penalty to resolve the Federal Trade Commission's charges over their false fat-loss claims on their products.

In 2014, a lawsuit was filed against Nu Skin for allegedly failing to disclose to investors the multi-marketing violations being made by its Chinese subsidiary. The lawsuit was settled for $47 million.

On the same year, Nu Skin was fined $540,000 by Chinese regulators for being accused of selling products illegally and making false product claims. Six of Nu Skin's employees in China were also fined $241,000 for "unauthorized promotional activities".

In 2015, Barrack, Rodos & Bacine filed a class action lawsuit against Nu Skin. The complaints alleged that between July 10, 2013 and January 14, 2014, Nu Skin made false and misleading statements about the company's business, operational and compliance policies.


Is Nu Skin legit?


Yes, Nu Skin is a legit company that has been in business for many years now.

However, we know that MLMs always get bashed for the following reasons:

  • Team leaders do not give their members proper training, making them recruit instead
  • Members, who have no proper sales and marketing training, fail to earn money

Since the first step in joining an MLM is being part of a team, it is very crucial that you find the right team for you. If you surround yourself with the right people, then you will have a proper support system.

Being part of a team who strives for success is a good thing. Supporting each other is a guaranteed way to succeed in your individual and group goals.


Is Nu Skin a Pyramid Scheme?


First of all, let's look at what a Pyramid Scheme is:


"A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products." Wikipedia

how-a-pyramid-scheme-works

As Nu Skin distributors make money both by recruiting other team members AND by selling products to customers, it is safe to say that Nu Skin is not a Pyramid Scheme!



How to succeed with Nu Skin and any other online business


MLMs tend to get bashed since the majority of people who sign up for them do not make money at all.

This is mostly because of team leaders who push members to recruit instead of sell products, since earning commissions is way easier.

Here is the thing... You cannot force the people you know to join your MLM if they are not interested with the company and products. You will just end up pushing them away from you.

The best way to sustain your business is by finding your target market. These are the people who want your products and are willing to make subsequent purchases from you. You need to reach them if you want to succeed.

There are two popular ways to do this:

  1. Set up paid adverts that target a specific audience within your niche
  2. Find a way to generate free organic traffic that can be turned into sales

The first option is very expensive and if you are just starting out, then I recommend you scrap that for now.

The second one is completely doable and inexpensive, in fact, you can even get the right tools and information for FREE.

In this FREE Make Money Online Course, you can learn a number of things that can help you succeed with Nu Skin and any other similar businesses.

By the end of the course, you will have the following knowledge:

  • How to choose your niche or better leverage your existing one
  • How to build a website in just a few clicks and have your own branding
  • How to write content that can attract thousands of visitors who ACTUALLY want to buy your products

and more!

Click on the red button below to get started 🙂


I hope you enjoyed reading my "Is Nu Skin a Pyramid Scheme?" review!

Feel free to let me know your thoughts by leaving a comment below 🙂