Nu Skin Review: How Much Do You Know About Its Products and How Reliable is the Company?

Nu Skin Review
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Nu Skin Review:

Utah, the 13-largest state of the United States, is famous for the Temple Square and its national parks but also headquarters one of the most trustworthy multi-level marketing (MLM) company, Nu Skin.

History of Nu Skin

Nu Skin Review

Nu Skin Review

Founded in 1984 in Provo, Utah by Blake Roney, Sandie Tillotson, and Steve Lund, Nu Skin Enterprises has seen many ups and downs since then. However, it remains the first choice for many of its loyal customers and is a multi-billion dollar company.

The company currently markets its products in around 54 countries and has approximately 1.2 million distributors, and the majority of these distributors (nearly 85%) are located outside the Americas. Out of these, 65% of all distributors are located in China and North Asia.

Nu Skin has adopted a very unique and performance-based sales compensation plan which pays nearly 43% of its product revenue to the sales distributors.

Brands and Sub-brands

  • The company’s revenue is shared in the 60-40 ratio between Nu Skin (60%) and Pharmanex (40%) brands. Most of its premium quality anti-ageing, nutritional supplements and personal care products are developed and distributed under these 2 brands.
  • Nu Skin’s believes in the philosophy -“all of the good, none of the bad” and that is how its products are marketed by the distributors.
  • The company produces many anti-ageing skin care products, Cell Renewal, UV Defense, AHA Facial Peel, Skin Mist and Neutralizers.
  • A few of its popular sub-brands are ageLOC, TR90, Tru Face, Epoch, Clear Action, Tri-Phasic and Tegreen.
  • Nu Skin also offers body care, hair care and oral care products. It also develops and markets nutritional products under the brand name VitaMeal.

Sales Distribution

One of the major marketing strategies made by Nu Skin is expanding its business in the Asian marketplace.  The Asia Pacific is the fastest-growing market with a rise in the level of education and purchasing power. Dynamic customers in the Asia Pacific are the primary targets of major western companies. These consumers today expect high quality and relevant products but are also eager to get products delivered in less time.

  • This is where Nu Skin takes advantage of its wide network of sales distributors and loyal customers. The distributors manage demand and supply and distribute its premium products swiftly throughout the Asia Pacific.
  • It has also signed up with UPS, a logistics and delivery channel, through which Nu Skin ships products in bulk directly from the U.S. to local market distribution centres. It has helped the company to reduce high costs for expedited shipments, high inventory holding costs, potential shortfalls of fast-selling products, and end-customers waiting time.

Business tie-up with UPS has allowed Nu Skin to achieve the flexibility of scaling up their operations to match with their business growth in the future.

Product Orders and Deliveries

Till 2008, Nu Skin noticed a constant drop in the purchases made through phone orders and the percentage of online orders started rising. There were 2 reasons for the increase in online purchase of products:

  1. When products were ordered via phone, the company incurred higher cost than online.
  2. Nu Skin didn’t have the resources to manage all orders that were made by phone, which caused long waiting times and dissatisfaction.

These reasons led to a large number of customers shifting towards online purchase which ultimately impacted the company’s overhead costs and a cut in its profits.

Since most of the customers were located outside the U.S., the company partnered with UPS for faster shipment and deliveries, which helped the company to rebuild its trust and more loyal customers, leading to make a profit in 2011.

Marketing of Premium Products: Nu Skin Review

Since the company relies on direct-selling rather than selling products on any other online and offline stores, their website is more focused on contents towards informing, encouraging and providing resources for its sales force.

It also provides product catalogs and price guides of its premium products to its distributors for sharing the same with other interested members. These catalogs contain details of a wide range of products and sub-brands offered by the company along with packages.

Compensation Plan: Nu Skin Review

Nu Skin’s offers a compelling business opportunity to the sales force who get a commission on the overall sales made in a given time period and also on the performance of the members recruited by the distributors. Company has openly stated that it pays almost 43% of its product revenue in the sales compensation.

The distributors receive compensation through sales of products purchased at wholesale prices and then sold to the customers. The commissions are paid on the direct product sales and the sales made by other distributors down the line in the sales network.

However, the compensation paid varies from one distributor to the other because not all members join as a distributor to do business. Some join to purchase and use premium products at wholesale price.

But those who join to learn new skills and manage their business by selling Nu Skin’s products need to generate more revenue through sales to make more money.

Nu Skin’s Efforts towards Gaining Trust Again: Nu Skin Review

  • Because of previous scams, accusations and allegations, the company has been recently investing a lot in its communication department to re-establish the trust and transparency among its customers.
  • Nu Skin has expressed financial and managerial transparency with proven business practices, and by displaying numerous awards. Most of the communication strategies online are to educate and encourage its distributors and sellers to build trust and confidence in the company.
  • The company is currently emphasising on creating credibility by sharing messages on success stories of distributors, customers and company leaders and also by displaying behind the scene of their product manufacturing and distribution system.

Nu Skin is a legit company which doesn’t have a pyramid scheme and it also manufactures, and distributes products across many countries. Although the company has a bad past record, mostly during the 90’s, however, it has recovered and re-entered the direct-selling market with new premium products. It has improved its logistics and distribution channels for faster product delivery. No doubt its hard work and efforts have paid big time by re-establish the company as one of the top 100 trustworthy U.S. companies.

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