... To the best of our understanding, Amway managed to word their documentation in a way that bypassed the pyramid scheme laws. Is Nu Skin a Pyramid Scheme? This opened the doors for other MLMs to do the same. Another red flag is an MLM company that has a hierarchy structure where people are promoted based on the volume of people they recruit and the resulting revenue. While the paperwork may make them legal, that doesn’t mean that Nu Skin and other MLMs are ethical. Nu Skin has the type of unlimited recruitment policy that is typical of a product-based pyramid scheme. A base of people is left out-of-pocket as money filters up through recruitment to a small number at the top. Eventually, you need to make this decision yourself but I can share my personal opinion. The Nu Skin Reality- It’s A Pyramid Scheme. Nu Skin was founded in 1984 in Provo Utah. When asked about Fiona’s experiences, an Arbonne spokesperson based in Northampton says via email that their sales plan is “not a pyramid scheme; it is a standard, legal sales strategy”. In 2016 Nu Skin was sued by China in a Utah federal court and Nu Skin agreed to pay a $47 million settlement for operating a pyramid scheme. But r ecent news stories indicate that a large hole may be blown in the MLM wall. Nu Skin is not a pyramid scheme because they have real products. Since Nu Skin members earn money both by selling services and recruiting new members, then it is safe to say that Nu Skin is not a pyramid scheme. Is Nu Skin a Pyramid Scheme? However, in any MLM-system, there is always a high emphasis on recruiting new members. Conclusion – Is Nu Skin Worth It? First of all, let's look at what a Pyramid Scheme is: "A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products." Nu Skin Secrets. The MLM company, Nu Skin, is having dirty laundry exposed as part of what began as a private dispute between one of the company’s founders, Sandra Tillotson, and one of her ex-husbands, a professional actor named Diederik van Nederveen. Independent salespeople have to pay a $25 sign-up fee to be able to buy at wholesale and sell them for a profit, but the only way they can succeed is by building a hefty downline and having them duplicate the process. Oh it gets better. However, even if the company has been here for quite a while, I do not suggest having confidence on them just by that fact alone. Thus, the vast majority of distributors end up losing thousands of dollars. Nu Skin may not legally be a pyramid scheme, but it has the same outcome. Nu Skin isn’t so much “substantially different” from a pyramid scheme as it is an homage to a pyramid scheme.

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