Is Nu Skin a Scam Pyramid Scheme? Exposed!

Are you looking for a Nu Skin MLM review? Is Nu Skin a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about Nu Skin MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Nu Skin MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Nu Skin MLM.

To help you make a more informed decision, I have thoroughly researched the Nu Skin MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Nu Skin MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to Nu Skin MLM that has enabled me to make a full-time passive income online.

What is Nu Skin MLM?

Nu Skin Enterprises was founded in 1984 in Provo, Utah by Blake Roney, Sandie Tillotson, and Steve Lund. The company began in the United States and expanded internationally for the first time in Canada. It now has representatives in 53 countries.

The founders of Nu Skin were determined to build a company based on innovative personal care products that used only active ingredients that were “all good and none bad.” The company has been in operation for nearly 40 years based on this concept.

Nu Skin sells the following products:

  • beauty devices
  • body care products
  • face care products
  • nutritional products

Recommendation: Here’s The Best Alternative

What Products Does Nu Skin Offer?

Nu Skin products are designed to make you look good (beauty products). Its standard skincare line includes high-quality products such as anti-aging creams, UV protection, skin haze, cell rejuvenation, AHA facial peels, and neutralizer.

This company now sells over 200 personal care products, including cleansers, toners, and anti-aging skin care products, all over the world.

Two more products that have been proven to work are the ageLOC Future Product and the ageLOC Edition Galvanic Spa System.

Furthermore, Nu Skin sells perfumes, hair products, mouthwash, essential oils, and diffusers.

All of these products are successfully sold and marketed through its global network of independent distributors, sales associates, and carefully selected clients.

Nu Skin is also supported by Nu Skin’s Anti-Aging Scientific Board, which is comprised of industry experts. It is comprised of skin doctors and leading scientists from various fields, as well as their collaborative research studies.

However, the prices of Nu Skin products are exorbitant. If you go to Amazon, you can get these items for even less money than if you bought them directly from the company’s website.

Recommendation: Here’s The Best Alternative

What is MLM?

Before we get into Nu Skin MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like Nu Skin MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

How Does Nu Skin MLM Work?

With NU Skin, you can make money in two ways:

Retail markups

When brand associates buy products from the company, they receive discounts. As a result, you purchase your products directly from the company’s warehouse and sell them to your customers.

The difference between the participant’s rate and the retail price is the retail markup. Your market price can be whatever you want it to be. The company does not have a price list for the items it sells.

Sales payment

When they sell products, brand associates make money as well. People can sell alone or in groups in 53 markets, but not in Landmass China.

Affiliates (suppliers) earn varying sums of money. Goals, time, commitment, skills, and ambition are some of the factors that make a difference. To make money as an associate, you must put in time and effort.

Keep in mind that hiring people for the NU Skin does not entitle you to a commission. You are only paid when your products are sold.

Recommendation: Here’s The Best Alternative

Is Nu Skin A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is Nu Skin, then, a pyramid scheme?

No. Nu Skin does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

What is the Nu Skin MLM’s Compensation Plan?

In 2020, brand associates in the United States earned a total of $161,333,653 in sales settlement. Every month in the United States, a brand name associate sold an average of $160.05.

According to their 2020 settlement plan, sales compensation was paid to 19.04 percent of active brand associates in the United States, or 43.56 percent of brand affiliates.

Every year, 11 percent of active brand affiliates earned an average of $384. Brand Reps, who account for 3% of brand name affiliates, earned an average of $7,392 per year, while diamond directors, who account for 0.12% of representatives, earned an average of $112,932 per year.

The top 0.2 percent of the company earned an average of $449,688 in 2020.

Recommendation: Here’s The Best Alternative

10 Reasons Why I Don’t Recommend Nu Skin MLM

1. The Good Reviews are Written by Nu Skin MLM’s Affiliates

You probably have found some other reviews of Nu Skin MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join Nu Skin MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of Nu Skin MLM.

2. Very Few People Can Make Money With Nu Skin

Success is difficult to achieve with an MLM company like Nu Skin.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From Nu Skin MLM Are Reframed As Investments

Nu Skin MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. Nu Skin MLM is a Cult

Why do people continue to work for Nu Skin if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase Nu Skin Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Nu Skin. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Nu Skin Products are Overpriced

As with other MLMs, Nu Skin offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Nu Skin products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. Nu Skin’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like Nu Skin is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider Nu Skin to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Nu Skin, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Nu Skin.

Nu Skin’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to Nu Skin’s payouts to distributors, over 99 percent of Nu Skin distributors never make a profit.

9. Nu Skin Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

Nu Skin is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like Nu Skin put a lot of effort into recruiting. Eight out of ten ways to earn money with Nu Skin require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Nu Skin review.

Recommendation: Here’s The Best Alternative

How Much Does It Cost To Join Nu Skin MLM?

The joining process is simple, with only two steps. You’ll need a sponsor, but finding one will be simple. You can enroll a close friend who sells NU Skin products or find one online.

According to the Nu Skin payment report, there is no fee to sign up. This becomes a feature that draws people in. However, you do not receive any items to give away. Each of these starter packages must be purchased separately.

After you join the Nu Skin Multi-Level Marketing (MLM), you will require some packaging products. The packaging costs between $475 and $1,519 USD.

They want you to become a member of the Automatic Distribution Reward program (ADR). To remain an active distributor, you must continue to purchase a certain number of products. The ADR requires a $100 standing order.

You must also earn between $200 and $350 per month to remain active. You should be aware of this before diving headfirst into Nu Skin MLM.

So, the bottom line is that joining is free. However, becoming a qualified representative will cost you a few hundred dollars.

Nu Skin MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • NU Skin is a reputable company that has been in business for a long time.
  • Their product quality is also quite good.
  • They work in the health and beauty industry, which has been around for a long time.
  • You do not have to pay a fee or purchase a starter kit to join the NU Skin MLM.
  • You can close your account at any time by providing written notice.

Negative Feedbacks

  • Nu Skin distributors make no money in 85 percent of cases.
  • You must pester your friends, family, and everyone else in your network in order to persuade them to join.
  • To receive any commission, you must spend more than $100 per month and sell or use at least 80% of your stock.
  • You must earn 2500 points in order to become an independent distributor.
  • The products are difficult to sell because they are expensive.

Is Nu Skin MLM a Scam?

I cannot say Nu Skin MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling Nu Skin products? We already know that a majority of Nu Skin reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Nu Skin is by recruiting aggressively.

Also, Nu Skin blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Nu Skin MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

Recommendation: Here’s The Best Alternative

Final Verdict: Nu Skin MLM Review

Here comes the conclusion of my Nu Skin MLM review. Overall, I don’t recommend joining Nu Skin MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Nu Skin commission.

The worst part is that you practically have to ask your family and friends to join your Nu Skin business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

Recommendation: Here’s The Best Alternative

The Best Alternative of Nu Skin MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Nu Skin MLM.

My #1 recommended platform is called Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Nu Skin MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership. The premium membership only costs $49/month or $395/year.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.

You can enjoy all these values without paying a penny.

So I strongly recommend you to register a free account and see it yourself.

Recommendation: Here’s The Best Alternative

Leave a Comment