Nu Skin Scam? Yes It Is In My Opinion!
The Nu Skin scam is one of the largest multi-level marketing companies in the world. Many of my subscribers have requested that I take a look into them. How do they make their billions of dollars each year? This is what I have found.
Nu Skin Scam Claims
Nu Skin. The Dream. The Belief. The Innovator.
When I hear the name Nu Skin I think of the word love.
Nu Skin’s scientific leadership in skin care & nutrition establishes Nu Skin as a premier anti-aging company, evidenced in its ageLOC products.
We believe ageLOC science is the answer to anti-aging. It’s a scientific breakthrough that goes beyond the signs to target the ultimate sources of aging.
Here is a video presentation for Nu Skin.
Nu Skin Scam Reality
Nu Skin was founded in 1984.
Nu Skin operates in 52 markets worldwide and has nearly 800,000 independent distributors.
The co-founders of Nu Skin are Blake Roney, Steve Lund, Sandie Tillotson, and Nedra Roney. Nu Skin has removed Nedra’s name from their website in an attempt to hide the fact that she is a co-founder.
Sandie Tillotson was a multi-millionaire when she co-founded NuSkin. She made her millions with the Cambridge Diet, another multi-level marketing company that started out of Southern California and went bankrupt. – Source Deseretnews.com
Comments From ex Nu Skin Distributors
“Everyone gets signed up as either a distributor or a preferred customer leaving no product mark-up opportunities. When I did the math there is not enough margin to validate a product business! Meaning that you can not mark up the product to sustain a product based business.”
Nu Skin’s Preferred Customer program allows you to purchase Nu Skin products at Distributor prices.
“The whole thing reeked of brainwashing and deceit. It is all about ‘getting people on the product’ and ‘signed up’ and then getting to their ‘warm market’; essentially just sucking them dry of their money, time, and friendships!”
“This is a sick business, lost nearly everything while Sandie, Nedra, Blake, Steve and the other head honchos raked in the millions. I didn’t get it until it was too late.”
Nu Skin’s History Of False Claims
In 1992, Nu Skin reached settlements with 5 states which had accused the company of deceptive advertising and overstating the income earned by distributors. – Source Deseretnews.com
In 1994, following an investigation by the Federal Trade Commission (FTC), the company paid $1 million and signed a consent decree prohibiting it from making deceptive or unsubstantiated claims about its products. – Source FTC
In 1997, the company paid an additional $1.5 million to the FTC to settle ongoing allegations of unsubstantiated promotional claims. – Source FTC
In 2012. Nu Skin was exposed for double-listing distributors in the United States Million Dollar Circle to make it appear there were more successful distributors then there actually was. – Source Diederikvannederveen.com
In 2014, China fined NU Skin Enterprises, Inc. more than $500,000 for illegal product sales and misleading local consumers. – Source Reuters
The FDA does not allow cosmetic companies to make claims that their products affect the structure or any function of the body. In my opinion, Nu Skin is clearly breaking this rule. Below are claims made today about Nu Skin’s ageLOC products.
“Nu Skin has learned how crucial gene expression is to retaining youth. In fact, in order to retain a youthful appearance, we understand how science can restore youthful activity patterns to our genes.”
“Nu Skin’s proprietary ageLOC science resets Youth Gene Clusters to create a youthful balance within each cluster—returning them to their youthful patterns of activity.” – Source Nuskin.com
Experts in the science of aging deride Nu Skin’s claims. “If someone tells you they know what the mechanism of aging is, they are trying to kid you,” says University of Michigan Medical School professor Richard Miller, who heads a team evaluating anti-aging drugs and nutritional supplements for the National Institute on Aging. Reversing age-related gene expression in mice is several steps removed from proving anything about humans, he says, much less evidence that a substance will work on people. “You can’t just point to some gene-expression stuff and say, ‘This is just as good as studying the effect of my drug.’” (Nu Skin was forced to remove references to a “collaboration” with a Stanford professor after he protested; he calls its ageLOC claims “science fiction.”) – Source Fortune.com
Nu Skin has a long history of using deceptive claims to sell their products and recruit new distributors. Is this the type of company you wish to be associated with?
Nu Skin Revenue Source
During the year ending December 31, 2012, approximately 89% of Nu Skin’s revenue came from its markets outside of the United States. – Source New York Times
Nearly 30% of Nu Skin’s total revenue over the last year came from China, up from 10% a year earlier. Without Mainland China growth, Nu Skin’s revenue growth would have been negative on a year-over-year basis. – Source Forbes
Nu Skin has a shrinking U.S. market.
80,613 Active Distributors during 2011.
67,740 Active Distributors during 2013.
The Active Distributor numbers above include Preferred Customers.
Why would you want to become a new U.S. distributor for Nu skin when their number of customers and distributors is shrinking?
Nu Skin’s products do not “remove” “reduce” or “eliminate” wrinkles, and the Galvanic Spa is not a “wrinkle iron”.
Nu Skin’s products can’t make a person younger or make them live longer.
Nu Skin’s products are not an alternative or substitute for cosmetic or medical procedures performed by a professional.
Nu Skin’s products are not approved by the FDA or any other government agency. – Source Nu Skin Distributor Guidelines
Categories of products offered:
Here are the Nu Skin products on Amazon. – Affiliate link
The Company will, after deducting an administrative fee equivalent to 10% of the price, refund ninety percent (90%) of the price, less applicable Bonuses (plus applicable tax if prepaid) to the Distributor on unopened and resalable Products (except Business Support Materials) sold by the Company to the Distributor that are returned within twelve (12) months from the date of purchase. – Source Nuskin.com
You are required to sell or use 80% of your personal sales volume each month. After 12 months of little or no retail sales, you will have lost a lot of money and have little product to return.
In order to qualify for commission bonuses, distributors generally must satisfy specific requirements including achieving at least 100 points, which is approximately $100 in personal sales volume per month. You have to sell or use this $100 worth of product each month. Nu Skin hides from new distributors the amount of retail sales that are made by distributors to customers. Any direct selling company that hides this information from you should be avoided.
The Nu Skin compensation plan pays up to 6 levels deep. They attempt to hide the levels of compensation they pay.
Illustrations that show a person’s downline organization as a pyramid are prohibited. Nu Skin will not allow illustrations that show the structure of an organization without including customers in that structure. The illustration itself should not extend more than two (2) levels deep. – Source Nu Skin Distributor Guidelines
Many levels of compensation only further enriches those at or near the top of the pyramid of distributors. Excessive levels in a downline is another sign participants are expected to sell primarily to their downline, rather than to the general public. This makes it an exploitive money transfer scheme, or product-based pyramid scheme. – Source Mlm-thetruth.com
Compensation Plan Video
On a monthly basis, an average of 14.19% of U.S. Active Distributors earned a commission check. Active Distributors represented an average of 39.17% of total distributors.
The average commission paid to U.S. Active Distributors each month was $176.00, or $2,112.05 per year.
An “Active Distributor” is a Distributor who placed an order for products, promotional materials or services during the most recent three-month period. In the United States, the Company had an average of 67,740 Active Distributors during 2013. – Source 2013 Nu Skin Income Disclosure
Nu Skin knows that almost everyone will fail when becoming a distributor. They have designed their compensation plan to profit from this by having you buy the products to qualify for commissions.
Nu Skin profits from their distributors charity!
Nourish the Children (NTC) is NOT a charity, it is a for profit initiative of Nu Skin, a for profit corporation.
Nu Skin sells a meal replacement product under the brand, “VitaMeal,” and encourage their distributors, customers and employees to purchase VitaMeal and donate their purchase to charitable organizations that specialize in distributing food to alleviate famine and poverty. Distributors earn commissions on sales of Vitameal to distributors in their downline and their customers. – Source Nu Skin Distributor Guidelines
Here is an additional report about Nu Skin from an ex Nu Skin distributor:
Nu Skin satisfies all 5 Red Flags of a “recruiting MLM” (product-based pyramid scheme) with a highly leveraged breakaway compensation plan, causing an extremely high loss rate.
Nu Skin Scam Conclusion
In my opinion, Nu Skin is a product-based pyramid scheme. Each person who profits in the Nu Skin business opportunity does so primarily from the payments of others who are themselves making payments in order to obtain their own profit. They have year after year used deceptive product claims and income claims to get people to join this scam. They hide retail sales information from new distributors. Over 85% of Active Distributors earn no commissions. Avoid this scam of a business opportunity.
Nu Skin. The Nightmare. The Lies. The Scam.