Why NuSkin is accused as a Scam?

Well, let’s see. Nu Skin was founded in 1984, operates in three continents in over 50 markets and currently has nearly 800,000 distributors.

Not only that, it is a publicly traded company in the New York Stock Exchange. In order to accomplish that, do realize that this company has passed more scrutiny, and checks and balances compared to when you walk through the body scanner at the airport. So to say it clearly, there is no Nu Skin scam, gimmick, fraud, pyramid or whatever else you may hear.

So who’s saying that it is?

Let’s talk about what this company is before we go into the scam allegations. Nu Skin was found by a brother and sister team, Blake & Nedra Roney. They have an extensive product line consisting of personal care products, with an emphasis on skin care.

One of their hot ticket items is the Nu Skin Galvanic Spa, which is touted as being cheaper than a professional facial. Now it sounds like a complicated contraption but it has revolutionized the beauty industry and many women rave about it.

Network marketing or multi-level marketing (MLM) has been the target of many for decades. Indeed many MLM companies fail because of low-quality, overpriced products, and lackluster management. As a result, the entire business model of MLM gets blamed and is often called a scam.

What you should know is that the scam allegation has already been discredited decades ago by numerous courts of other countries, even the U.S.A.. The business model of MLM is NOT a scam.

It simply means that people are paid for selling the company’s products while also earning commissions/bonuses from the sales generated by anyone they introduced to the company. So it creates a downline or levels of various compensation. Hence the term muli-level marketing.

It’s no different than when you had a great meal at a restaurant, told your friends of how excellent the food and service was, and because of your recommendation, your friends go eat at that same restaurant. Of course, the restaurant won’t pay you because they made money from your recommendation. But in MLM, the company will. Clearly, there is no reason to call the MLM system a scam, the same way as franchising was perceived to be a scam decades ago.