Can You Make Money in Nu Skin? – Or Can Anti-Aging Smooth Out the Wrinkles in Your Finances?

Can you make money in Nu Skin?  Does Nu Skin work on wrinkles?  Can Nu Skin’s anti-aging formulas really make you look younger?  These are all questions that people have asked since this company first came on the scene.  But the most important question to be asked is if this opportunity is the answer to your home business search.

The Company and Products

Nu Skin was formed in 1984 by three entrepreneurs who wanted to build a company that would combine high quality personal care products with a direct sales business opportunity that would attract high-caliber salespeople.  With their signature ageLOC line of anti-aging products along with other skin-care and nutritional offerings, they have propelled the company to $1.25 billion in sales in 2008.  Nu Skin’s line is generally considered to be high quality, but comes with a higher price tag than other similar products on the market.  Approximately 800,000 independent distributors sell their products in more than 40 countries.

The Program and Compensation

Nu Skin is operated as a traditional multi-level marketing or direct sales organization, where the distributors make money two ways: from the retail markup of the products that they buy wholesale and from commissions they earn on sales from their recruited down-line.  To become a distributor you purchase a Business Kit for a small fee and then you are able to purchase the products at wholesale prices, which in turn you can sell at a Nu Skin-recommended 30% markup.  There is a fairly complicated commission/bonus plan for the different levels as a distributor climbs the ranks in the company.

Analysis

By 2012, approximately 26% (80.6 million) of the US population will be aged 55 and over.  This aging US and world population means that there is a growing market of people desiring anti-aging products and able to pay the premium prices they command.  And the quality of the Nu Skin product line will keep this company around for years to come.  But the average distributor will face several challenges with this home business opportunity.  The first will be that even with the most expensive products in the Nu Skin line, the retail markups (what the distributor keeps as profit) will be small – meaning that they will need to sell major volume to make significant money.  This need for volume can be accomplished by recruiting many people into their down-line, but then they face the age-old MLM problem of recruiting family and friends in order to make their business profitable.  This is a difficult and uncomfortable proposition for most distributors, and once they work through their warm market list, most will have very few ideas for targeted leads to expand their business.  Hosting home and hotel presentations to recruit strangers is even less desirable for many.  And without a superior mentor in the business, most will fail within a few months.  In fact, the 2008 average monthly commission for US Active Distributors was $814.50 or $9,774 annualized.  Not a bad supplemental income, but hardly a full-time income for the effort that you will need to put into the business.  So if you are looking to earn a supplemental income by selling quality products from a solid company, Nu Skin is a nice choice for your home business.  But if you want to create financial freedom by earning a higher commission, avoid recruiting friends and family, and find a mentor that will teach you to have a global reach through the Internet, I would continue my home business search.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.