I guess the big question many people have when taking a look at a MLM business like NuSkin is if the Nu Skin compensation plan is really that profitable, and can you actually make money with a company like NuSkin?
I mean let’s face it, NuSkin is not exactly a new deal, they have been around for over 25 years and there are so many variations of MLM compensation plans that have been developed over the last few years, can an old standard Unilevel compensation plan still get the job done?
OK so let’s discuss that, but first let’s gets some facts straight about MLM compensation plans. There are in today’s market so many different variations of network marketing compensation plans you could fill a pretty big book just analyzing them: Binary, Hybrid-Binary (MonaVie Review), Matrix, Forced Matrix, Top Tier MLM, Hybrid Top Tier MLM (Family IQ Review) and so many blends and variations of them its staggering.
But look, just think about it in general terms, does it really matter if it’s a Unilevel or a Binary, or a Binary with a Directors match or daily cash paying matrix? They all pay good money.
Every company you look at in the MLM industry has top earners and they all make the big money once they get an organization up and running and growing explosively.
NuSkin’s compensation plan has of course stood the test of time, and it is profitable. When you look at the compensation that the top reps with NuSkin have pulled over the years, the numbers are pretty staggering.
I have friends in NuSkin who have earned over $40 million dollars, and the ranks of their $20 million dollar club are pretty full also.
However that’s just one part of the picture. The NuSkin compensation plan has proved its ability to generate big dollars but it is not necessarily the easiest to build.
Building For Bucks – NuSkin Compensation Plan Optimization
I think the better question when you join a particular MLM is how do you maximize the compensation plan for that company?
Every type of compensation plan in MLM requires a slightly different building strategy to maximize it, so let’s discuss what you need to do with NuSkin to get to the big bucks.
Now just so you don’t think that I am talking out of school here, I will point out that NuSkin was my first MLM and I did become a 7 figure earner with them within my first 3 years. I also have no current affiliation with them so this is not a commercial for the company (see my recent NuSkin Review).
So how do you max out this baby?
Tapping The NuSkin Money Vault
Well with a “Unilevel” or “Stairstep Breakaway” system like NuSkin uses you are basically tapping a rectangle of production. You can only tap to a certain depth so greater income comes from having a larger front line which then spreads as it goes down kind of like a pyramid (I love that word) which in turn gives you a larger group to tap. The larger your front line the larger your base.
Now with their version of a “Unilevel” there is no limit to the number of people you can have in your dowline, but you can only tap to a certain depth in the structure. To tap the depth you have to build your front line (personally sponsored distributors) to a certain width and you must have a certain number of your front like distributors achieve certain production quotas and become NuSkin Executive Distributors.
NuSkin Executive Distributors
There are also two classes of distributors in the NuSkin comp plan, the regular run of the mill distributors and Executive distributors (or as the are sometimes called, breakaways).
Now when you sponsor someone you do get a commission based on what they do, but you cannot tap their dowline until you earn the right by becoming an Executive distributor (there are volume requirements).
Once you are an Executive you can now tap your entire NuSkin group of regular distributors with no limit in depth, this is called your “Circle Group”, however you are limited in being able to tap Executive distributors based on how many Executives you have on your front line.
Now if you sponsor someone and they really take off, and become an Executive and there are Executives below them, you can’t get paid on that extended downline of Executives until you generate more Executives on your front line.
And so begins the race
Now when you start this footrace you have to think strategically and move fast or you will leave money on the table.
You have to build width on your front line quickly so you can tap the depth of your group but at the same time you have to support and stimulate a certain amount of depth or there will be nothing there to tap.
Go Wide Fast!
Now I found the best building approach for comp plans like NuSkin, is to go wide fast and at the same time reach down one or two levels and support the depth.
One key point here, never ever stop personal recruiting to manage your group. That is the death of an MLM business.
The Sifting Process
So the first step in building this structure is to sift your prospects to find your distributors.
Now in a unilevel program, everyone you sponsor goes on your front line, and starts an additional leg of your business. So the more people you sponsor the wider the top of your structure is.
Next you have to sift your distributors to find the people who actually do something. Then you sift those reps to see who the 20% Percenters are. They are the ones who are actually serious about building an organization.
Now at this point if you are an Executive, you are tapping your entire organization as deep as it goes but this is not where the big money is since most of this group will be doing small volumes or just using the product.
NuSkin Executive Qualification & Breakaways
The 20% Percenters are the ones who will become the basis of your income stream and they will generally go into Executive qualification and become what is called a breakaway Executive.
Now when a distributor becomes a “break away”, the commission you were making on their NuSkin group can drop from as much 14% down to 5%.
This is a dramatic reduction of course and is just the way break away systems work, but the theory is that you are making 5% of the group production of someone who is a business builder so it should actually be more.
Now once you have one NuSkin Executive on your front line you can tap 5% on any Exectuvie and their groups on your first level only.
To tap 2 levels of Executive distributor commissions you have to have 2 breakaway Executives on your first level and so on.
With 1 executive on your front line you are a “NuSkin Gold Executive” and can tap a 5% commission on your front like executives entire group volume. There are different rank designations NuSkin depending on how many front line executives you have “Ruby”, Emerald, etc, with the top rank being achieved when you reach “Blue Diamond” one you have 12 Executive break-aways.
The maximum depth you can tap on the NuSkin comp plan is 6 levels of Executives and you have to be a “Blue Diamond” and be 12 Executives wide on your front line to do that.
Rollups & The Compression Factor – The Road To Big Bucks In NuSkin
Now of course there is a reason they call it a Breakaway, and that is because it does not matter where a distributor is in your group or on what level they are, when they become an Executive they will break away from their position in the dowline and roll up beneath the next qualified Executive in the structure.
So in effect if you snooze you lose. If you sponsor a hot distributor and you are not an Executive and they qualify before you do, you lose them as an Executive and they roll up the line.
That means bye-bye Executive bonus on that rep, and by the way, in NuSkin, once it’s gone its gone forever.
If you are a big player this compression actually works to your benefit since all the power in your downline will roll up and compress below you.
Where did you think the big NuSkin checks came from?
So the money is in the Executive groups, and you want a lot of them within your 6 level payout.
In the end it’s a 5% ballgame in NuSkin, but with a large enough group that can amount to big bucks.
NuSkin Group Building Tips
Once again build wide fast is the best approach here and as you will discover not everyone you bring in will be a mover so I recommend you set your goal on sponsoring 6 to 10 reps a month and then sift that group down to find your 20% Percenters.
Now the way I achieved the big bucks in NuSkin was to implement “The Law of Large Numbers”. I developed some innovative marketing approaches that generated 80 to 100 leads a week and then used leveraged sales funnels to sift that traffic down to the serious prospects and then of course to the 20% Percenters.
Then by using a specific duplication model I ended up generating over 21 front like Executive Distributors that settled down to about 16 over the long haul, and then the golden doors opened.
There were of course other NuSkin distributors who used more of the “Old School MLM Marketing” approaches, however their success in many cases took much longer and many of the Blue Diamonds hit their success through pure luck by surfacing one of those magical 1% Percenters.
The year I retired from active status in NuSkin and just decided to cash my checks and travel, there were over 260 top level reps, and the average income of that group was about $760,000 a year.
Not Bad eh?
However if you analyzed the income streams of those top NuSkin reps, the blue diamonds, you would find some interesting numbers. Over 70 percent of them by my analysis derived over 2/3rds of their income stream from 1 or 2 key distributors that came into their group.
Such is the nature of the “Standard MLM” compensation plan. In that MLM model, your search and success is predicated on finding the mythical 1% Percenters, those people who will come in and explode your group. However if you use traditional approaches, face to face, warm market, etc, you are doing one off presentations and it can take you a lifetime to surface one of them.
So using high volume strategies and automation and leverage gets you there quicker.
So the lesson here is that if you are courting success in any MLM business, you need to use a high volume lead generation approach to get a large enough flow of leads on a daily basis to power your business plan.
The best way to do that in today’s market is to use online marketing approach.
So in closing I guess that there has been very big money earned by aggressive Nu Skin distributors in the past and that being a well run, very creative company,I have no doubt that distributors will continue to profit in the future.
However maybe the better question to ask is whether or not this is the best way to the end result?
I mean we are here to make money right?
The truth is that old standard Unilevel compensation programs like NuSkin uses are powerful as a result of the compression or rollup factor which tends to concentrate your best most productive action and distributors near the top of your organization where you can actually tap it, but it takes time, sometimes a long time to get the real benefit of that type of compression since to reap the big rewards you have to apply that compression factor to a very large group to “squeeze” the “diamonds” and of course the “Blue Diamonds” (NuSkin Top Distributor ranking) out of the raw material.
And in today’s fast paced MLM marketplace where distributors and being bombarded with new distracting offers 20 minutes after you sponsor them, can building that size of a group and stabilizing it be done as easily as it was even 10 years ago?
Humm…. I guess that’s the real question
Success in NuSkin or any MLM business hinges on your ability to structure it as a real business and to have a high volume lead generation system in place so you can look beyond just your friends and family for your success.
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