There a lots of ways to build your own business. Selling products through direct selling is a very old and effective concept. If you love skin products, chances are that you’ve heard of Nu Skin. They have a long history of selling skin care products and supplements. If you haven’t heard of them, I’ll bet someone you know has heard of them. But do you think you can make money selling these products? This Nu Skin MLM review will dive into the company, the policies, and the products. It won’t be hard for you to figure out whether this is a good opportunity for you or not.
What is Nu Skin MLM?
Nu Skin was founded in 1984 by Nedra and Blake Roney, Steve Lund and Sandie Tillotson. Their headquarters are in Utah. Nu Skin is a multi-level marketing company that produces dietary supplements and personal care products. The products are sold worldwide and their revenue for 2018 was $2.68 billion.
Unfortunately, Nu Skin has come under scrutiny over the years. There have been quite a few investigations into their business practices. Yet in 2010 it was listed in the top 100 most trustworthy companies according to Forbes.
Are Nu Skin Products Worth Their Price?
Nu Skin sell a variety of personal care products and supplements. Some of the personal care products include cosmetics, oral health care, sun protection lotions, makeup, body lotions, and lipsticks. The supplements include anti-aging, energy, cell protection, mood, immune system, heart health, men’s health, bone and joint health, and women’s health.
The product above is an average product. It’s called Nu Skin Nutricentials Creamy Hydrating Masque. The Nu Skin website and the Amazon website both sell this product for around the same price.
So the only question here is quality. Is this product worth the $22-$25 price tag? This is only 3.4 ounces. You can tell by the stars on the Amazon product that there are many people out there that love this product. I’m sure there are other similar products that are less or more expensive.
The Nu Skin MLM Opportunity
When you are considering any opportunity like this, it’s best to check out the value of the products, the company’s reputation and how easy or difficult it may be to earn money. In this case, you’ll be working as an independent contractor selling Nu Skin products.
It’s also important to read the fine print carefully. You want to make sure you know what you are responsible for, what you are expected to pay for and what you potential earnings will be.
With this company, you don’t need to buy a starter kit. But should you choose to buy one, it will set you back over $500. Then you have to try and figure out how many products you have to sell to make that money back.
The other issue with these products is that a lot of them can be purchased on sites like Amazon. So there’s not a huge incentive for people to buy from you.
How Much Does It Cost to Join Nu Skin?
According to my research, there’s no signup fee. And you don’t even have to buy a starter kit. Although, I can’t imagine how you can make sales without product samples.
There are two Business Start Up Kits you can buy. As you can see the prices here are pretty expensive.
Be sure to read the fine print of the agreement. It clearly states in the agreement that you will be responsible for paying your own license fees, insurance, travel expenses, office expenses, accounting and equipment expenses. These expenses are not reimbursable.
Can You Make Money with Nu Skin?
As a distributor you make money through selling products. You buy the products at wholesale price and sell them at the retail price.
You can also recruit others to join your team. There’s no bonus for adding members to your team but you will share in the profits of any sales made by your downline.
Customers can also order products online. By directing customers to the website, you can earn anywhere from 5% to 25% for any products they order.
Here’s where it gets a little more interesting. Nu Skin have a block system that allows distributors to earn money through the creation of building blocks. There are two types of blocks: sharing blocks and building blocks.
- Building Blocks: 500 points from your group
- Sharing Blocks: 500 points from only registered customers
You receive bonuses for completing building blocks. The bonuses are paid each week and range from 5% to 40%. The clock resets at the end of each month. You need to complete four new building blocks each month. This is how you work your way up the ladder to higher positions.
So there’s a few different ways to make money here.
- Sell products directly to customers. You earn the difference between the wholesale and retail price.
- Build up a team by getting other people to join you as distributors. You become their upline and participate in a share of all their sales.
- Create building blocks to further your advancement up the ladder.
But, here’s the problem. There are a few hidden costs here that will eat into your earnings. First of all, your time. You are not paid for bringing people into your team or training them. You also have to pay for shipping and sales tax which also eats into your earnings. So what are you really left with?
Optional Automatic Delivery Program
If you become very successful at selling Nu Skin products, you can enroll in the Optional Automatic Delivery Rewards Program. This means that you can set up a standing monthly order of products that is shipped to you. You can cancel the subscription anytime with written notification.
No minimum purchases or inventory requirements.
As a Brand Affiliate, you are not locked into a set time on your contract. You can cancel your contract anytime as long as you provide written notice.
Must Sell the Products You order
Before you place a new order, you must sell all the products you previously ordered. You have to prove that you have either sold or consumed 80% of your previous order.
90% Refund Policy
For any products your return, you will only be refunded 90% of the product price. You will not be reimbursed for any shipping costs.
Costs That Eat Into Your Commissions
It won’t surprise you to learn that you have to pay local sales tax on your orders. But what may surprise you is that you pay sales tax on the retail price–not the wholesale price. Add on the shipping charges and it can really eat into any commissions.
Is Nu Skin a Scam?
Nu Skin is another MLM company where the deck is stacked against you. The program is designed for maximum profit with little payout. It’s not a scam but when you factor in all the time you will put into this offer and then offset that with the amount of potential earnings, you’ll see that you won’t earn a decent living here.
It’s very easy to get sucked into a program like this especially if you really like the products. You can justify it in your head when you get products for wholesale and make a profit on the retail price. Unfortunately, it’s really not that simple.
These programs are not designed for you to make enough money to live on. They are designed so that you make just enough money to keep buying more products. Paying sales tax and shipping charges as well will see you losing money before you start making money.
If you really want to earn your own money there are other ways to get there. Check out my #1 recommend on how to start your own business. You’ll learn how to build a business from the ground up. The program includes excellent training, a website, hosting, 24/7 support and some pretty awesome tools.