Nu Skin Review
Nu Skin USA is a multi-level marketing company that sells personal care products, most of which pertain to skin care. The company was founded in 1984 and went public on the New York Stock Exchange in 1996. To date, Nu Skin operates primarily in North America, Europe, and Asia with more than one million independent distributors worldwide.
Despite collecting billions in revenue, Nu Skin has faced quite a few serious problems during its more than 30 year history. In addition to some legal issues, the company’s growth appears to have leveled off, and so Nu Skin’s outlook may not be as bright as it once was many years ago.
As one might expect from a company that’s been in business for more than 30 years, Nu Skin a rather large collection of products. The company’s products fit into one of the following categories:
- Epoch Essential Oils
- Spa Systems
- Tru Face Targeted Treatments
- Nu Skin 180
- Tri-Phasic White
- Clear Action
- Peels, Masks & Scrubs
- Body Care
- Men’s Care
- Oral Care
- Sun Proection
Despite the wide array of categories, a vast majority of the company’s products are concerned with skin care.
Nu Skin Opportunity
Nu Skin invites anyone, regardless of whether they use the company’s products or not, to join the company as an independent distributor. Once they sign up, distributors are able to purchase the company’s products at wholesale cost, sell the products to new customers, and earn income in the following ways:
- Retail Sales – Up to 25% profit for all sales.
- L1 Bonus – A 5% commission for signing up new distributors and preferred customers.
- Executive and Leadership Bonus Pool – Bonus for continuing to grow a sales team and sign up preferred customers.
- Leadership Progression Bonus Pool – Bonus for helping others achieve executive status in the company.
Over the course of its 30-plus years in business, Nu Skin has developed a good reputation. The company is accredited by the Better Business Bureau, which has given Nu Skin an A+ rating, in large part because it has one of the lowest complaint rates in the multi-level marketing industry. In addition, the reviews from those who have worked for the company are almost universally positive, as most employees feel that Nu Skin has done well to take care of them. Such praise from both customers and employees is important for any MLM firm.
Sponsoring several well-known organizations has also enhanced nu Skin’s reputation. With the company’s headquarters in Provo, Utah, Nu Skin is a sponsor of the BYU Athletic Program. The company also sponsors the dance team for the NBA’s Utah Jazz.
Nu Skin also acts as a sponsor for the American Freedom Festival in Provo, which is one of the country’s biggest Independence Day celebrations. Granted, all of these sponsorships are local, but few MLM companies are involved in sponsoring this many organizations, which is a credit to Nu Skin.
In addition to distributors joining a company with a good reputation, they also join a company that has affordable products, which is always conducive to making sales. Most of Nu Skin’s products compare favorably with regard to price to similar products offered by competing MLM companies.
There are also plenty of positive product reviews to back up the quality of the Nu Skin’s products. The company also offers distributors a reasonable commission rate considering the price of its products, making high-volume sales and subsequent profit a reasonable possibility.
Unfortunately, Nu Skin has not been free of controversy during its long history. The trouble started in the early 90s when six states accused the company of misleading market practices.
Nu Skin ultimately settled with each of the six states without having to admit any wrongdoing, but it did pay a six-figure fine to the Federal Trade Commission and was forced to change some of its promotional practices, including not making certain claims about products or the earning potential of distributors, which was undoubtedly a setback for the company.
More recently, the Chinese government investigated Nu Skin for running a pyramid scheme. China is one of the most important markets in the multi-level marketing industry, and issues with that country’s government hurt Nu Skin’s stock price significantly.
Ultimately, the company was fined a six-figure sum by the Chinese government for making illegal sales and making false claims about products. This matter should not have a huge impact on domestic distributors, but once again, it’s a black eye on the company’s history that can’t be removed.
With regards to issues that may impact distributors directly, the company has strict monthly quotas that distributors must meet in order to remain active and eligible to receive commissions and bonuses.
If you don’t meet the requirements each month, you must pay additional fees in order to “re-qualify.” This can make it difficult for someone to be a distributor for Nu Skin on a part-time basis without first being able to build a substantial customer base.
On top of the monthly quotas, there should also be some concern about the market being saturated for Nu Skin distributors. The company has a global presence, which works in its favor, but with over one million distributors already on board, it can be difficult to find sales leads and develop a large customer base, which in turn makes it difficult to meet the company’s minimum sales requirements.
Whether or not Nu Skin is the right opportunity for you depends in large part on how you feel about their legal issues and the accusations made against them. What’s past is past and shouldn’t have a huge impact on the future success of any individual distributor, but the company’s stock has certainly taken a hit due to issues in both the distant and recent past. Each individual has to determine if the company’s strong reputation is worth more than a few legal mishaps.
Outside of the company’s legal issues, Nu Skin offers a good opportunity for someone who’s serious about an MLM venture. The company’s quotas make it difficult for someone who only a casual interest, but the large selection of products, the affordable price of those products, and Nu Skin’s compensation plan leave the door open for plenty of advancement and profit for someone with the right skills who’s willing to dedicate themselves to the business.
All things being equal, Nu Skin is a fine company for someone with an interest in multi-level marketing.