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  1. #1
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    MLM Millionaires

    I'll freely admit MLM has created a great deal of wealth for quite a few individuals.

    I'm sure folks like Bill & Peggy Britt, Lita & Brig Hart, Barry Chi & Holly Chen have a net worth of well over a $1 million dollars.

    So what do you think then when you hear statements like this from Nu Skin?

    "Nu Skin has created more millionaires than any other direct selling company in history."

    "Currently a new millionaire is being created every 5 days somewhere in the world through Nu Skin."


    Something clearly doesn't add up, especially when you consider it's been shown that Nu Skin has a 99.94% attrition (failure) rate for its distributors (meaning only approximately 1 in 4,000 new sign-ups will make any money on the business model).

    So what's going on here?

    Well, if you read the fine print on the company home site, they make clear what they're saying:

    Since 1984, Nu Skin Enterprises has paid over US$7 billion in commissions and generated 822 millionaires (in US$).

    Distributors who are members of the Million Dollar Circle and have earned over one million dollars in commissions over the life of their involvement with Nu Skin.
    Whoa!

    Now hold on there a moment.

    If a person had joined Nu Skin back in 1984 and finally earned one million dollars in commissions in 2012, that person is classified as a millionaire by Nu Skin's calculations?

    I don't think so!

    Talk about misleading, if not out and out fraudulent advertising.

    A new rep is told "a new millionaire is being created every 5 days somewhere in the world through Nu Skin", and what are they going to think?"

    "Wow! If I work hard I can probably be a millionaire too this time next year!"

    And what happens when the reality sets in? Another one of the 99.94% failures that buy into the Nu Skin BS.

    Wondering though, is it just me or does anyone here actually think that someone that earns one million dollars in commissions over the life of their involvement with their company is to be considered a true millionaire?

  2. #2
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    Re: MLM Millionaires

    Quote Originally Posted by Doc Bunkum View Post
    I'll freely admit MLM has created a great deal of wealth for quite a few individuals.

    I'm sure folks like Bill & Peggy Britt, Lita & Brig Hart, Barry Chi & Holly Chen have a net worth of well over a $1 million dollars.

    So what do you think then when you hear statements like this from Nu Skin?

    "Nu Skin has created more millionaires than any other direct selling company in history."

    "Currently a new millionaire is being created every 5 days somewhere in the world through Nu Skin."


    Something clearly doesn't add up, especially when you consider it's been shown that Nu Skin has a 99.94% attrition (failure) rate for its distributors (meaning only approximately 1 in 4,000 new sign-ups will make any money on the business model).

    So what's going on here?

    Well, if you read the fine print on the company home site, they make clear what they're saying:



    Whoa!

    Now hold on there a moment.

    If a person had joined Nu Skin back in 1984 and finally earned one million dollars in commissions in 2012, that person is classified as a millionaire by Nu Skin's calculations?

    I don't think so!

    Talk about misleading, if not out and out fraudulent advertising.

    A new rep is told "a new millionaire is being created every 5 days somewhere in the world through Nu Skin", and what are they going to think?"

    "Wow! If I work hard I can probably be a millionaire too this time next year!"

    And what happens when the reality sets in? Another one of the 99.94% failures that buy into the Nu Skin BS.

    Wondering though, is it just me or does anyone here actually think that someone that earns one million dollars in commissions over the life of their involvement with their company is to be considered a true millionaire?
    Obsessed...............:rotz:
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  3. #3
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    Re: MLM Millionaires

    Quote Originally Posted by Doc Bunkum View Post
    So what do you think then when you hear statements like this from Nu Skin?
    Doc, Have you got a source for NuSkin saying that? All I've been able to find is one guy who spammed it everywhere.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
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  4. #4
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    Re: MLM Millionaires

    Quote Originally Posted by IBOFightBack View Post
    Doc, Have you got a source for NuSkin saying that? All I've been able to find is one guy who spammed it everywhere.
    Try: Mission & Vision

    Number of Millionaires (in US$) Generated by Nu Skin Enterprises around the Globe

    • 34 x 20 Million Dollar Circle Members

    • 42 x 10 Million Dollar Circle Members

    • 108 x 5 Million Dollar Circle Members

    • 638 x 1 Million Dollar Circle Members

    Since 1984, Nu Skin Enterprises has paid over US$7 billion in commissions and generated 822 millionaires (in US$).
    Edited to add, I see their 5 day claim on an Asian event promo:

    http://www.nuskin.com/ns/sg/images/E...EventFlyer.pdf
    Last edited by Doc Bunkum; 08-18-2012 at 03:23 PM.

  5. #5
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    Re: MLM Millionaires

    Quote Originally Posted by iamwil View Post
    Looks to me their definition of millionaire is one who earns 1 million in commissions.
    Appears to be - goes under the heading of "Creative Accounting.

    Quote Originally Posted by iamwil View Post
    The typical definition I thought was when one had 1 million in net assets...
    Mine too.

    Quote Originally Posted by iamwil View Post
    In today's vernacular since a million dollars in net assets isn't that much...the new meaning is earning a million a year.
    A million dollars in net assets is a lot.

    But you're mixing up net assets and income. Two different things.

    If a person had a net income of a million dollars, not gross, then yes, they'd be doing fine.

    Quote Originally Posted by iamwil View Post
    Now my companies definition is when you earn $27,000 in commissions for 3 months in a row...as at that time they will offer you 1 million to sell your business back to the company....(nobody has accepted, no need to ask why as that is over 300k per year....)
    Believe me, I'd take the money and run. :yelcutelaughA:

    Quote Originally Posted by iamwil View Post
    Now let us consider Nuskins version.... if they are creating one every 5 days...Say those folks have been with them for 20 years...that would mean they've been averaging 50k per year for 20 years...but probably they weren't at the beginning so now they are doing somewhere between 75-125k per year....not to shabby, quit your day job money for many....and there is another one every 5 days??? 73 new folks added to the roll each year? not to shabby.
    Yes, but what about expenses, taxes, etc?

    Again, think net, not gross.

  6. #6
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    Re: MLM Millionaires

    Quote Originally Posted by Doc Bunkum View Post
    Try: Mission & Vision

    Edited to add, I see their 5 day claim on an Asian event promo:

    http://www.nuskin.com/ns/sg/images/E...EventFlyer.pdf
    But no company source for the "more millionaires than any other direct selling company in history" quote.

    That one seems unlikely given the size and longevity of Amway, especially given NuSkin's definition.

    Quote Originally Posted by iamwil View Post
    Looks to me their definition of millionaire is one who earns 1 million in commissions.

    The typical definition I thought was when one had 1 million in net assets...
    I believe 1 million in net assets excluding the family home was the standard definition.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


  7. 08-18-2012, 04:05 PM


  8. #7
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    Re: MLM Millionaires

    Quote Originally Posted by iamwil View Post
    ....where as your million in the bank would be spitting out 40k per year...before taxes...if you are lucky.
    I could live nicely in Ecuador or Panama on 40k per year. :king22:

  9. #8
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    Re: MLM Millionaires

    Quote Originally Posted by IBOFightBack View Post
    But no company source for the "more millionaires than any other direct selling company in history" quote.

    That one seems unlikely given the size and longevity of Amway, especially given NuSkin's definition.
    How about...

    We create millionaires!

    Over the last 20 years Nu Skin Enterprises has created more millionaires than any other company in the industry
    Do you take exception to that statement?

    Sounds like maybe somebody took literary licence with that statement and morphed it into "more millionaires than any other direct selling company in history".

  10. #9
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    Re: MLM Millionaires

    Quote Originally Posted by Doc Bunkum View Post
    How about...



    Do you take exception to that statement?

    Sounds like maybe somebody took literary licence with that statement and morphed it into "more millionaires than any other direct selling company in history".
    Thanks, either way, it doesn't past the smell test. That link also says -

    "At the present time we have paid more than 3.8 billion dollars in commissions"

    Amway paid out nearly that much last year alone and has paid out nearly $40 billion in total.

    NuSkin also reports around 177 distributors in the US earning at Diamond Executive of above (average of $127,500).

    Founders Emerald in Amway US has an average income of $135,000 and there were at least 600 IBOs in the US qualified at that level or higher.

    Euromonitor has also assessed that Amway paid out more than any other company in 2010 and 2011, and more total than any other company

    Nuskin's claim seems dubious at the best.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


  11. #10
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    Re: MLM Millionaires

    Quote Originally Posted by IBOFightBack View Post
    Nuskin's claim seems dubious at the best.
    Anyone wishing to look deeper into Nu Skin's claims, here's an interesting read:

    Nu Skin's Padded Numbers

  12. #11
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    Re: MLM Millionaires

    Quote Originally Posted by Doc Bunkum View Post
    Anyone wishing to look deeper into Nu Skin's claims, here's an interesting read:

    Nu Skin's Padded Numbers
    Coming from a bitter, angry divorcee, I'm sure it's completely accurate and non-biased...:yelcutelaughA:
    As long as it is acceptable for a person to beLIEve that he knows how god wants everyone on Earth to live, we will continue to murder one another on account of our myths. ~ Sam Harris, 'The End Of Faith'
    ~~~~~
    Christianity demands the crucifixion of the intellect.
    ~ Susan Kierkegaard

  13. #12
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    Re: MLM Millionaires

    Quote Originally Posted by Doc Bunkum View Post
    Anyone wishing to look deeper into Nu Skin's claims, here's an interesting read:

    Nu Skin's Padded Numbers
    My guess is it's simply a matter of the same people having multiple Nuskin distributorships. Nothing unusual about that.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


  14. #13
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    Re: MLM Millionaires

    Can't find the link at the moment, but I've seen a credible article that states that your asset value of your MLM distributorship is worth 200 times your monthly bonus cheque, making you an ''asset millionaire'' on $5000 a month income.
    Will, I like that your company offers it, I dont know any other companies that do, but they're short changing you! ;)
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  15. #14
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    Re: MLM Millionaires

    Quote Originally Posted by Doc Bunkum View Post
    Anyone wishing to look deeper into Nu Skin's claims, here's an interesting read:

    Nu Skin's Padded Numbers
    Quote Originally Posted by ChrisDoyle View Post
    Can't find the link at the moment, but I've seen a credible article that states that your asset value of your MLM distributorship is worth 200 times your monthly bonus cheque, making you an ''asset millionaire'' on $5000 a month income.
    Will, I like that your company offers it, I dont know any other companies that do, but they're short changing you! ;)
    That's a 16.67 multiple of earnings. No.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


  16. #15
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    Re: MLM Millionaires

    Quote Originally Posted by IBOFightBack View Post
    That's a 16.67 multiple of earnings. No.
    maybe maybe not but to look at it another way if you had a million invested at 5% (admitedly a high rate these days), you would be earning 50k a year, not too far off the figure above.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  17. #16
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    Re: MLM Millionaires

    Quote Originally Posted by ChrisDoyle View Post
    maybe maybe not but to look at it another way if you had a million invested at 5% (admitedly a high rate these days), you would be earning 50k a year, not too far off the figure above.
    I did calculations of that type on my blog a few years back -

    What is an Amway or Quixtar business worth?

    This is a useful exercise for comparing building a NWM business to other options, but it doesn't work when determining sale value of a business.

    2 to 7 times yearly earnings is more typical. I've sold several businesses (non MLM) in that range.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


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