Is Nu Skin A Pyramid Scheme? | Unbiased Review Of The Nu Skin MLM

Is Nu Skin a pyramid scheme?

Or is this a real business opportunity that you can take advantage of to actually make money?

If you’re reading this Nu Skin review, you’ve probably been approached by a Nu Skin distributor or consultant.

They probably introduced you to the Nu Skin business opportunity and they made it sound as though you are going to get rich very quickly, working from home in your underpants.

You’re thinking to yourself…

Man, this sounds too good to be true.

So you decided to do some research to figure out what the truth is about this opportunity.

In this article, we’re going to do a deep dive on the Nu Skin MLM…

And yes, it is MLM.

We will talk about what MLM is, whether or not this opportunity is a scam or pyramid scheme, and whether you should be taking advantage of this…

Or running fast and far away.

The truth is, Nu Skin is not actually a scam.

Nor is it a pyramid scheme.

But it is network marketing, and countless people all over the world really do believe that there is no difference between network marketing and pyramid schemes.

So before we dive into all that, let’s start with the basics.

What Is Nu Skin?

Nu Skin Enterprises is a health and wellness company based out of Utah.

They sell personal care products and dietary supplements in over 50 countries worldwide.

You may be racking your brain, wondering why you’ve never seen any Nu Skin products on store shelves.

That’s because this company sells their products by direct sales (MLM) and cannot be bought in any retail stores.

The only way to buy Nu Skin products is through independent distributors, which are called Nu Skin consultants.

Nu Skin Business History

The Nu Skin Enterprises MLM was founded in 1984 in Provo, Utah.

For the first 6 years they did business exclusively in the United States. In 1990, they expanded to Canada, and a year later started operations in Asia. 

In 1996, the company went public and was listed on the NYSE.

Fast forward to today, Nu Skin now operates in 54 countries worldwide via a network of well over a million independent distributors.

Nu Skin Enterprises is one of the largest direct selling companies in the world today.

Who Owns Nu Skin?

This is a common question, but Nu Skin is a publicly traded company, therefore it isn’t owned outright by any one individual.

But the company was originally founded by Blake Roney, Steven Lund and Sandra Tillotson.

Today, Lund serves as the Executive Chairman Of The Board while Tillotson serves as the Senior Vice President of the Nu Skin business.

This company has faced a number of lawsuits over the years but before we talk about those, let’s briefly cover the Nu Skin product line.

Nu Skin Products

Other Nu Skin reviews might go into more detail about the products than we will today.

This particular article is aimed more towards teaching you about the business opportunity that this company offers.

Nonetheless, let’s briefly talk about some of the most popular products that this company offers.

Nu Skin Tanner

This is a gel that you apply onto your skin.

Nu Skin claims that this compound will make your skin appear tanned while also providing moisturising benefits. It is apparently designed for your face and body and is completely fragrance free.

The Tanner appears to be Nu Skin’s most popular product.

180 System

The 180 System product line claims to have anti-ageing effects on your skin when used daily.

They used a proprietary combination of ingredients to help exfoliate your skin by dissolving the buildup of dead skin cells.

Reviews for this product line are actually quite good considering some of the controversy surrounding some of the other Nu Skin products.

S3 Scanner

In 1998, Nu Skin acquired dietary supplement company Pharmanex. This company holds a patent on a device that they claim accurately measures the carotenoid level in your skin.

“This device is a scam,” according to the Women’s Health Letter, “and is designed merely to help sell more supplements”.

In 2002, Nu Skin’s annual report stated “As customers track their skin carotenoid content, we believe they will be motivated to consistently consume LifePak for longer periods of time”.

LifePak

The LifePak vitamins are designed to help you receive all the nutrients that you lack from the typical Western diet.

Nu Skin claims that LifePak was specifically designed to help in the following areas:

• Optimal nutrient absorption
• Bone health
• Immune system support
• Blood glucose regulation
• Cardiovascular benefits
• Anti-ageing nutrients
• Antioxidant protection

In 2011, the LifePak multivitamins were tested by ConsumerLab.

They failed the overall review as a result of not clearly indicating the total Vitamin A content as required by the FDA (Food and Drug Administration).

Nu Skin sells hundreds of different products and if we were to cover each of them you would be reading all day long.

And you came here to read about the potential for making money, right?

One more thing to cover before we get to the good stuff…

Nu Skin Lawsuit

Nu Skin has been under some intense scrutiny from lawmakers and regulators over the years.

But the truth is, that’s quite normal for any direct sales company.

For example, other MLM giants like Usana, Amway, and Herbalife have been collectively mired in one lawsuit after another over the past few decades.

The direct selling industry seems to have a large target on its back so if you are considering joining the Nu Skin multi level marketing business, don’t let their legal history stand in your way.

Nu Skin Lawsuits In America

In 1990, Nu Skin was investigated by 6 separate states over allegations of misleading marketing practices.

In 1992, they settled with 5 of these states, agreeing to pay the states investigative costs, refund distributors, and revamp their business strategy.

Nu Skin admitted to no wrongdoing, however.

The Connecticut Attorney General did not agree to those terms and sued Nu Skin Enterprises.

They were charged with operating a pyramid scheme.

Ultimately, Nu Skin still did not admit to any wrongdoing.

But they did agree to pay the State of Connecticut $85,000 for consumer protection programs. 

In the late 1990s, Nu Skin invested in Big Planet, a multi level marketing company selling internet services.

In 1997, the State of Pennsylvania sued Nu Skin under allegations of operating a pyramid scheme selling technology services.

After settling, the president of Big Planet stated publicly that the pyramid scheme allegations stemmed from overzealous distributors behaving in an unprofessional way.

Chinese Nu Skin Lawsuit

In 2014, the Chinese government sued Nu Skin under allegations of operating an illegal pyramid scheme.

They were forced to pay over $47 million to the Chinese government in order to settle the lawsuit.

Despite all the controversy, Nu Skin was listed among the “Top 100 Most Trustworthy Companies” in Forbes Magazine in 2012.

Nu Skin is also listed on the Better Business Bureau.

Most customer Nu Skin reviews are quite poor on the BBB website, but it’s important to remember that people very rarely make the effort to leave a review if they’ve had a decent experience.

Bad news always travels at the speed of light while good news stays quiet.

Now, let’s get to the good stuff…

How much money can you make selling Nu Skin?

How The Nu Skin Business Works

As we discussed already, Nu Skin sells health and wellness products and are probably best known for their personal care products.

Instead of selling their products by traditional retail means, they choose instead to pass the profits on to their customers.

The business model they use is called network marketing, also referred to as direct sales, multi level marketing, or MLM. 

When you sign up for the Nu Skin network marketing business, you will be paid purely by commissions. You will not receive any type of salary; your pay is completely dependent on you performing and making sales.

But there are more ways to earn in network marketing than just generating product sales.

As a network marketer, you have the opportunity to build a sales team underneath you, so that you can earn commissions from your own sales, but also from the sales generated by your team members.

The practice of you signing up a sales rep in your organisation is called recruiting.

Recruiting

When you recruit someone into your team, your new team member also has the option of recruiting and building their own team.

Not only will you earn commissions from your sales and the sales of the people you recruit, but you can also earn from the people that your team members recruit.

This business model can create exponential growth if done right, and can allow you to earn passive income. 

When your team grows to a certain size, it can eventually become self perpetuating, meaning that it will continue to grow without your efforts.

At this point, your income would continue to grow bigger and bigger without you putting in any more time or work.

This is certainly an ideal scenario in network marketing but truthfully, few ever achieve this.

To build a successful business in network marketing, you will need to make a commitment to stick with the business long term, and to do whatever it takes.

It will not be easy.

Unlike other Nu Skin business reviews, I want to share with you exactly what it will take for you to succeed in the business. 

At this point, you might be thinking that network marketing is a sales or recruiting job.

But the truth is, it’s neither.

It’s actually a teaching job.

Before we map out a successful Nu Skin business plan and exactly how you can succeed, we need to address the elephant in the room.

Nu Skin: Is It A Pyramid Scheme?

So is Nu Skin legitimate?

Is this a company that can truly offer you an opportunity to build your own business and get you out of the 9 to 5 grind?

This is what they claim, right?

There are many misconceptions out there about network marketing. Many people do not know the difference between network marketing and pyramid schemes.

So they just assume that all network marketing companies are illegal pyramids.

But there is a fundamental difference between an illegal pyramid scheme and a legitimate network marketing business.

You see in an illegal pyramid, people are not actually buying products.

They are simply paying for a spot in a pyramid shaped organisation.

The higher up you are in the pyramid, the more money you make from other people joining the pyramid. The more people join, the more money the people make at the top of the pyramid.

But there are never any real products sold.

That is the major difference.

In a network marketing business like Nu Skin, all the revenue ultimately comes from product sales.

And there are many people who buy and use the products regardless of the potential business opportunity attached.

It’s not really that different from a traditional business model.

The main difference is the method by which products are distributed into the real economy.

Network marketing companies simply bypass traditional distribution methods, saving them millions of dollars.

They don’t have to pay for extravagant advertising campaigns or inflated retail fees.

They just pay their distributors commissions based on how many products are sold into the marketplace.

If you want to learn in more detail how network marketing works and some of the misconceptions about it, feel free to read this article where we will do a deep dive on this business model. 

Another Reason For Nu Skin Scam Allegations

Another reason that businesses like Nu Skin face such scrutiny is due to the behavior of some of the distributors.

When a new distributor gets started in the Nu Skin business, they tend to be extremely excited at the idea of building their own team and earning passive income in the future.

As a result of this, they tend to be rather over enthusiastic.

This can leave a bad taste in many peoples’ mouths and it can come across as a bit cult-like.

But it’s important to remember that this behavior typically comes from brand new inexperienced network marketers.

When an overzealous distributor makes unrealistic claims about her products or business opportunity, it’s because she’s desperate to make money very quickly.

But it makes red flags go off for anyone who’s listening…

And the Nu Skin scam rumors are born.

In order for you to become successful in this business, you will need to learn to not be attached to any single person that you talk to.

If you ask someone to take a look at your business presentation and they say “no”…

Then that’s OK.

You are not looking to force or coerce anyone into joining your business.

And if you try, you will simply ruin the reputation of your business and worse, maybe even your relationships.

So now you know the origin of the Nu Skin pyramid scheme and scam allegations.

So how does Nu Skin pay you?

Nu Skin Compensation Plan

The Nu Skin compensation plan is based on the breakaway pay plan. You can get a basic understanding of the breakaway pay plan in this network marketing deep dive article.

But let’s talk specifically about the Nu Skin plan and how to make money with it.

Before becoming an affiliate for Nu Skin, you will need to be a customer first.

This makes sense, because you will have real experience with the products. You will know whether or not you love using Nu Skin products.

And if you don’t love the products, you shouldn’t be selling them.

This is also one of the main distinctions between network marketing and pyramid schemes.

A pyramid scheme derives the majority of it’s income from recruitment, not product sales.

This does not apply to the Nu Skin business.

But if you are using the products and you enjoy them, you can begin sharing your experiences with your friends and family. 

If any of your friends or family become Nu Skin customers due to your recommendation, you will have become a Brand Affiliate.

You will then earn a 6% commission every time one of your customers buys a Nu Skin product.

But let’s say that some of your customers start sharing their experiences with their own personal contacts.

You can see your team growing underneath you, but you’re not getting paid any commissions on the customers that your customers are bringing in…

At this point, you will need to go into your customer back office and send a LOI (Letter of Intent) to Nu Skin.

If you are accepted into the program, you will become a Brand Representative and begin earning a 5% commission from any sales made by someone in your own downline.

Down to the 6th generation.

The real earning power comes in when you start helping your own team members become builders in the business. 

You will start to be eligible for all types of bonuses when your existing customers begin building their own organisations underneath you.

This is where the real power of this compensation plan comes in to effect.

How Much Do Nu Skin Distributors Make?

The truth is, there are a number of Nu Skin consultants that earn an outrageous amount of money in this business. 

I’m talking millions of dollars.

But as with anything else, those results are not typical.

Last year, only 19% of Nu Skin consultants in the United States earned even a single commission payment.

And of those 19%, the average consultant earned only $840 per month. That is not discounting any business expenses that they have incurred.

These figures are according to the income disclosure on Nu Skin’s own website.

I’m sure you’re wondering…

If the average earnings are so low, can you make money in Nu Skin?

Here’s the thing about network marketing…

Your income is tied directly to your results.

It’s brutally fair.

I believe it is possible for anyone to do well in network marketing, including you.

But there are several key principles that you will need to embrace in order to build wealth in the Nu Skin business.

How To Succeed In Nu Skin

As we discussed earlier, succeeding in the Nu Skin business is not really about selling or recruiting.

That’s only a part of it.

But if you want to succeed long term in this business and build a really large organisation that will provide passive income for you and your family, you will need to become a good leader.

Ultimately, this business is about teaching.

You need to create duplication in your organisation.

This way, your team will eventually start growing underneath you without your own efforts.

And your monthly commission checks will start to grow bigger and bigger regardless of what you do in any given month.

But you will need to be very intentional about how you build your business if this is the outcome that you want.

Let’s talk about the steps you will need to take to achieve this.

1. Have A Passion For Nu Skin

In order for you to build a sustainable business, you need to be passionate about the products that you’re selling.

The very first network marketing company I ever joined was another health and wellness company.

I earned a grand total of $500 in this business.

It’s not that the business didn’t work…

In fact, I personally know several people in that particular business who are earning full time incomes.

The problem was, I didn’t have a passion for health and wellness. 

I didn’t have a rock solid belief in the business I was building, so I was unable to be an effective leader in the business.

So if you don’t have a passion for health and wellness, it is unlikely that you will succeed long term.

2. Follow The System

When you become a Nu Skin distributor, you will be taught a system that others have used to build the business. 

I’ll be honest…

The system will probably make you uncomfortable. It will push you way outside of your comfort zone.

But you need to understand that there is a reason that the system is taught.

It’s because it works.

In a network marketing business, everyone above you in the organisation has a vested interest in you succeeding, because if you make money, so do the people above you.

So you can trust that you are being taught a system that has worked for many others who came before you.

3. Focus On Duplication

As you know by now, duplication is key when building a sustainable network marketing organisation.

Look, there are many methods that work to bring people into your business…

But what works for you is not that important.

It’s what duplicates that matters.

If you are using high pressure sales tactics to bring people into your business, you will probably recruit a lot of people.

But the people that you bring in will not be able to duplicate what you did.

And your business will become stagnant and stay that way.

You have to understand that when you bring someone into your business, that person will be watching you.

They will remember how you recruited them.

And they will attempt to duplicate you.

This is why it’s important to follow the system that you were taught when you joined, because that system is specifically designed for duplication.

How To Sell Nu Skin Products

As a Nu Skin consultant, you will be provided “tools” to help you sell the products.

These tools might include pamphlets, brochures, or informational websites.

When you share the positive experiences you’ve had with the products, you might find that people ask very specific questions.

If you don’t know all the answers, there’s really no need to worry.

Simply refer to the tools that are at your disposal.

In fact, I would argue that you should continue to use the tools even after you become an expert on the Nu Skin products.

When you speak with someone who may be interested in building the business one day, they might be intimidated by the fact that you know every little detail about the Nu Skin products.

They will think to themselves, “Well heck, I don’t know anything about the products. I could never do this business”.

But if you refer to the tools even when you do know the answers, your customers will see that there is no need to be an expert to succeed in this business.

Feel free to read this detailed article on exactly how to succeed in network marketing.

Building Nu Skin On The Internet

As your team grows, you will eventually find that you run out of people to talk to about your Nu Skin business.

Let’s face it, you only know so many people, right?

At this point, you could consider expanding your business by using internet marketing strategies.

We do live in a digital age after all, so it stands to reason that you should be taking advantage of the technology we have to build your business.

The internet can be really powerful for this type of business.

It can be a great way to position yourself as an authority figure…

A thought leader in your industry.

And people want to work with leaders.

Using the internet, you could have people coming to you, asking you how to join your Nu Skin business.

In order to position yourself to have success with this business online, there are a few basic concepts that you should understand.

1. Create Content

The internet allows you to build a platform that you can use to spread your knowledge and message.

The best way to build your authority online is by creating valuable content that truly answers people’s questions and provides value.

You could build a website or a YouTube channel to do this.

But it really doesn’t have to be that fancy.

You could use any number of social media platforms that already exist online. For example:

• Forums
• Reddit
• Facebook
• Twitter
• Instagram

Whichever platform you choose to build a large presence on, be sure to always focus on providing value.

Focus on truly helping people.

People can smell a sales pitch from miles away, so don’t even bother trying to pitch your Nu Skin business online.

It will not work.

Just focus on helping people.

2. Build A List

This list can come in the form of an email list or just a list of social media contacts.

Even after these people are on your list, I still wouldn’t recommend pitching your products or opportunity.

Just continue to provide value and help the people on your list succeed with their own business.

You will find that they will eventually start reaching out to you personally.

3. Sell and Recruit

This is where things start to become exciting. 

If you have truly focused on helping somebody succeed with their own business, regardless of whether they’ve joined your business…

They will start to lose faith in the leadership they’re getting in their own business.

The truth is, many people in network marketing don’t receive good leadership.

But if you provide that much needed leadership to somebody, they will eventually want to join your business. 

So that they can work personally with you and receive that much needed leadership.

And you will begin effortlessly recruiting people into your team.

Nu Skin MLM FAQ

Nu Skin Review | Summary

As I was doing some research for this article, I went through quite a few other Nu Skin reviews.

And I found that most of them did not approach this company with a balanced view.

There were some articles that were dead set against this company and insisted that it is a pyramid scheme.

There were others that were obviously written by Nu Skin consultants who were trying to drum up more business and did not acknowledge the negative aspects of this business model.

So my hope for you is that after reading this article…

You now have a balanced view of this business.

I hope that you can make an informed decision as to whether or not this business is a good fit for you.

You came to this website to have only one question answered:

Is Nu Skin a good company?

The answer is yes.

At the end of the day, you should know that Nu Skin is a legitimate business. It is not a pyramid scheme and there really are people making good money in this business.

But it might not be a good fit for you.

Especially if you don’t have a passion for health and wellness.

But if you do, and you love using Nu Skin products, then you could do very well.