Table of Contents
Multilevel marketing (MLM) is a strategy used by direct sales companies wherein members are encouraged to sell their products and services while also bringing in new recruits into the business. These new recruits become the distributor’s “downline” or network. In turn, they are also encouraged to make sales and recruit new members to earn money.
In this setup, distributors are paid a certain percentage of their recruits’ sales. Multilevel marketing gets a bad reputation because of illegal operations that run in a similar way, also known as pyramid schemes. But a lot of MLM schemes are legal and are operated legitimately, and that is what we are going to focus on as we discuss how you can grow your own MLM downline.
When it comes to MLM, there are two sides of the business: promoting the products and recruiting new people. You need to sharpen your skills at selling and recruiting if you want to succeed in this industry. Growing your downline involves a lot of hard work, and if you don’t get good at recruiting, you cannot grow.
Improving your MLM recruiting is all about establishing a system that works for you. Here we will talk about how you can grow your Nu Skin MLM downline.
What Do Nu Skin Reps Sell? About Nu Skin
Nu Skin Enterprises is an American multilevel marketing company that sells personal care products and dietary supplements. Founded in 1984, Nu Skin Enterprises now operates the brands Nu Skin and Pharmanex.
The US company expanded in 1990 when it began its first foreign operation in Canada. The next year, it started operating in Hong Kong. Nu Skin listed on the New York Stock Exchange in 1996.
Today, Nu Skin has more than 1.2 million independent distributors. The company is committed to helping their customers look and feel younger.
Nu Skin uses a multilevel marketing business model. This means on top of selling products, distributors are also encouraged to recruit people into the Nu Skin business. Distributors market products directly to potential customers, and are also able to recruit and train them to become distributors.
Jump Start Your Nu Skin MLM Business with These Industry Leading Strategies
If you want your Nu Skin business to grow, here are a few strategies and platforms you need to try.
Know where your target audience “hangs out” or spends time IRL and online. Finding out how people are looking for opportunities via a search function like Google or YouTube (where the user is looking to extract data from a database) or being pushed a message onto them via discovery via hashtags on your social media feed—knowing where your ideal prospects spend time online, and how they learn or educate themselves as well as entertain themselves is essential.
Instagram is a photo and video sharing platform with over 2 billion monthly active users. That is 17.6% of the world population.
Over 200 million businesses are actively using the platform to promote themselves. A significant portion of the Instagram user population is from the US, with 123 million users. Meanwhile, 87% of Instagram users are from outside the US.
51.6% of all Instagram users are male while 48.4% are female. It is more popular among younger demographics, with 31% of all Instagram users being 18 to 24 years old. In fact, 73% of US teens say that the best way for brands to reach them is through Instagram. 25% of US teens say it is their preferred social media platform.
In 2021, Instagram users spent an average of 30 minutes per day on the platform.
Needless to say, this is an incredibly popular social network that can help you grow your MLM downline if you can use it correctly. Instagram is all about influencer marketing and aesthetics. You need to understand your brand and identity so you can post relevant pictures that capture the attention of your leads.
It is especially useful for businesses that are in the fashion, beauty, health, fitness, and parenting industries. But you can succeed on Instagram no matter what you are selling as long as you maintain a solid and recognizable brand.
Keep in mind that Instagram users do not appreciate seeing product post after product post. You need to create a page that revolves around the lifestyle that you are selling. That’s what makes them want to follow a brand.
If you thought Instagram was popular, Facebook takes this to a whole other level, with 2.91 billion users as of 2022. It also has a high number of daily active users at 1.93 billion. Around 69% of US adults are on Facebook. However, almost 90% of all active Facebook users come from outside the US and Canada. India, Indonesia, and Brazil all have over 100 million Facebook users each.
56% of Facebook users are male while 44% are female. 1.7% of all Facebook users are on desktop while 1.59 billion use their mobile device. In terms of income, 75% of users with an income above $75k are on Facebook.
The largest demographic group on Facebook is between 25 and 35 years old, so you should use this social network if your target audience is within that age range. Facebook appeals to older users unlike Instagram. However, there is also a significant population of Facebook users who are between the ages 18 and 24, with 23.8% of the user population falling within that age range.
If you want to use Facebook for MLM, it’s all about content marketing. Attracting people to your brand and products is better than selling stuff directly on Facebook. Most people do not come to social media to buy things. Instead, you need to make them realize that what you are offering may be something that they need.
Do not push your leads away—pull them into your page using genuinely helpful content. This will also establish you as a thought leader in your industry, which makes it easier to gain people’s trust and recruit them into your downline later on. Bring value to your leads, optimize your profile to make the best first impression, and grow your downline authentically.
LinkedIn may not be as big as other social networking platforms, with only 810 million users around the world, but it is the biggest platform that concentrates on building professional and business relationships. It is the world’s largest networking event. There are over 690 million professionals on LinkedIn, meaning it is full of CEOs, entrepreneurs, professionals, and other decision makers in various industries.
LinkedIn has over 15 million open jobs—but it is not just for job hunters and recruiters anymore. It has evolved into an essential tool for B2B marketers and salespeople.
It goes without saying that this social networking platform is full of highly valuable leads for your MLM company. In fact, 50% of LinkedIn users say they are more likely to buy from someone they’ve engaged with on LinkedIn.
More than 74% of LinkedIn users are from outside the US. Speaking of US, 48.5% of LinkedIn users in the US are actively using the platform each month.
56.9% of LinkedIn users are male while 43.1% are female. As for the age demographics, 60.1% of LinkedIn users are between the ages of 25 and 34—which makes sense considering it is mostly used by the working population. However, it also has its fair share of millennials: with 19.2% of LinkedIn users being 18 to 24 years old.
LinkedIn is such a relevant platform in today’s professional landscape that 50% of all internet users with a college degree or higher are using it. We can say that LinkedIn is not only a social channel but a business channel.
If you want to grow your MLM downline on LinkedIn, you need to identify your target audience. LinkedIn works best when you focus on the best leads rather than casting a wide net. Identify the people who will benefit most from your products and services and then target that demographic.
Optimize your LinkedIn profile and start building your network. To make LinkedIn prospecting easier, you can use Kennected, which is an automation tool for LinkedIn that gives you a continuous stream of leads, connections, and appointments. With Kennected, you can send personalized messages and follow-ups automatically without spamming your target audience. Book a demo with Kennected today to learn more.
YouTube is the biggest video sharing platform out there, with over 2.6 billion users around the world. The number of active users on YouTube reaches 122 million per day. People spend an average of 18 minutes per day on the video platform.
The total daily hours of video watched on YouTube is 1 billion hours. This is no surprise considering that there are 500 hours’ worth of video uploaded per minute and over 1 billion videos watched per day.
53.9% of YouTube users are male while 46.1% are female. 81% of US adults use YouTube. In terms of age demographics, 95% of 18 to 29 year-olds in the US use YouTube. 91% of people in the US aged 30 to 49 use the platform. Up to 49% of people in the US over 65 years old are using YouTube.
US YouTube users are also very active on the platform. 62% of YouTube users in the US say they visit the site every day.
With all the content that is being published on YouTube, it’s hard to stand out unless you already have an established brand. So to succeed here, you need to start building your brand by publishing your own videos on a regular basis.
Edit your videos to make them look professional. Keep them short and to the point to maintain your audience’s interest. Most importantly, cover topics that are relevant to your niche to attract your ideal targets for your MLM business.
TikTok has proven that it is not just a passing trend and that it is here to stay. Like YouTube, TikTok is also a video sharing platform, but it is more focused on short form content. TikTok now has 1.2 billion users around the world as of 2022, and is now worth $50 billion.
There are 138 million monthly active TikTok users in the US. 57% of TikTok users are female while 43% are male.
This platform is mostly populated by younger users, with 43% of its global audience being 18 to 24 years old. 32% of TikTok users are aged between 25 and 34. In fact, only 3.4% of the TikTok user population is over the age of 55.
With its viral videos and popular trends, it’s easy to see why many people would spend so much time on the platform. The average TikTok user spends around 52 minutes on the app per day. 90% of TikTok users visit the app more than once a day.
The key to being successful on TikTok, whether you are a content creator or an MLM company is to get on the For You page. TikTok provides curated content based on what users like and engage with. So by making content that are relevant to your target audience’s interests, you will be able to show up on their For You page—the equivalent of the Facebook timeline—even if they are not following you.
TikTok makes it very easy for users to find and discover content that are interesting through the For You page. Even users who are casually scrolling through the app may find your brand’s videos. Hop on the latest trends and make your own version of popular videos. Don’t forget to inject some humor and insight so that viewers are more likely to follow you.
Typical Recruiting Strategies for Most Multi-Level Marketing Companies
There are plenty of strategies you can try to boost your multi-level marketing company’s downline. But you need to strike the perfect balance when recruiting so you don’t push your leads away. Here are a few of the most common recruitment strategies used by MLM companies that you can try for yourself.
Build a list of friends and family
Some people are lucky enough to have many friends and family members that they can convince to join their business. But remember that you can’t rely on this. For your MLM company to grow, you need to develop a recruiting mindset.
You need to make friends wherever you go. The key is being able to recruit even strangers and casual acquaintances.
With that in mind, building a list with your friends and family is a good way to jumpstart your downline. You can expand it from there by connecting with mutual friends, colleagues, neighbors, old school friends, regular service providers, mentors, teachers, and members of your community.
Building your downline takes a lot of work, but everyone starts somewhere.
Attend BNI meetings
BNI, also known as Business Networking International, is a business referral organization founded by Ivan Misner in 1985. BNI is a good way for small businesses to get together and obtain referrals.
A BNI meeting typically involves a breakfast meeting with a local BNI chapter where you pitch your business and then set up one-on-one meetings with individuals within the group. The group can then work on getting referrals for one another.
Do take note that BNI has an annual membership fee. You also have to pay for breakfast in the restaurant you are meeting at. This recruitment strategy works fine for some companies, but it works best if you have a physical business with a mainstream niche. BNI is mostly for traditional small businesses rather than internet-based businesses and those with an unusual niche.
Build a network of referral partners
Speaking of referrals, you can try to build your own network of referral partners. Start by listing a few businesses that may serve as a strategic partner for you. Include businesses that you have collaborated with in the past.
You can then develop a referral system that makes it easy for you and your partners to generate referrals for one another. You can have clients fill up a form and provide their contact details.
You can also use your existing CRM system to capture this information so you can further support your strategic partner.
Post content on social media
If you’re still not promoting yourself on social media, you are definitely missing out. Just based on the few demographics we’ve listed above, most people are spending a significant amount of time on social media.
Establishing an online presence is a great way to get ahead of the competition. It has several undeniable benefits that you shouldn’t miss out on. Posting content on social media builds brand familiarity, which then helps you gain the trust of your target audience. If you continue posting high quality content, they will see you as a thought leader—which is exactly what you need to influence them to join your MLM downline.
In this digital age, content marketing is more important than ever. You can get discovered by new leads, build a following, provide value, and cultivate customer loyalty.
Talk about your product or service at every opportunity
In order to grow your MLM downline, you need to be the number one ambassador for your company and your brand. This means promoting your products and services every chance you get. But since you don’t want to push away your leads, recognizing the appropriate times to bring it up is an important skill to develop. Once you’ve mastered the art of promoting your company organically, you will be able to grow your MLM company with ease.
What Most Direct Sales Business Owners Are Doing Wrong
Most MLM business owners do it wrong. They come on too strong and assume that every single person they come into contact with is a potential sale or customer and they treat them with such reckless abandon that they end up burning family and friendships. Most of this could be avoided by proper sales training executed from the top of the direct sales organization.
Let’s face it: most direct sales organizations do not recruit professional salespeople. Some do, but by and large these are regular people who have no sales experience, have never been coached on the consultative approach, or social selling, or looping. Most new reps are so excited about the opportunity to change their life and the life of their family that they get overly zealous and often get angry when people don’t see the same opportunity and say “no”.
If you need further proof look at all the MLM fail screenshots online. The industry needs to educate and train sales reps in a way that encourages them to learn how to deal with rejection and how to remain positive without rubbing their friends, family and perfect strangers the wrong way.
Frequently Asked Questions:
What is Network Marketing?
Network marketing is a business model that involves person-to-person sales by company representatives. This is often done with a work from home (WFH) setup. If you are in a network marketing business, you may have to build your own network of business partners or your own sales team that can help you generate and convert leads into sales.
While many networking marketing operations are perfectly legal and reliable, their reputation is somewhat affected by the existence of pyramid schemes. The latter is less concerned with giving value to customers through high quality products and more focused on the recruitment of salespeople who are required to pay for expensive starter kits or training materials upfront. It is important to note that not all multi-tier marketing businesses are pyramid schemes.
Network marketing appeals to people with strong sales skills who are able to create a profitable business even with just a modest investment.
What is a Downline Building Service?
Downline building services are gaining traction on the internet, similar to how MLM programs are becoming more and more popular. This is because the internet is an ideal medium for marketing. It’s free and it is used by everybody.
Downline builders have become a popular way to recruit people for MLM companies. Just as the name implies, MLM downline builders help you build your downline. It is a marketing plan in which prospects are placed after signing up. This marketing plan may have a different organizational structure from other marketing plans. But regardless of structure, most downline builders are free.
What is a Direct Sales Company?
A direct sales company is a company that engages in direct selling. Direct selling involves selling products directly to consumers in a non-retail environment. This means that the sale occurs elsewhere like at home, work, online, or any other non-store location.
With the direct selling approach, businesses can avoid the usual intermediaries in the supply chain, allowing them to provide direct value to their customers. Direct selling mostly relies on a salesperson’s ability to get in front of a customer and sell the products to them.
Multilevel marketing is actually one type of direct selling. Other types of direct selling include single-level direct sales, and party-plan sales.
Are MLM (Multilevel Marketing) & Direct Sales Organizations the Same?
There are many similarities between MLM and direct sales organizations. However, they are not exactly interchangeable because of certain nuances and differences between them. Direct selling is more of an umbrella term that includes all types of companies in the industry—and that includes MLM companies. As long as a business is selling directly to the consumers, it can be considered a direct selling company.
On the other hand, multilevel marketing is a business structure wherein the seller earns from direct sales and the sales of recruits. The MLM is a tiered structure consisting of independent sellers and recruits. This is what sets MLM apart from direct sales organizations. So while MLM companies are doing direct selling, it does not mean all direct selling companies are MLMs.
How Do I Improve My Downline?
When building a downline, you have to be the biggest ambassador for your brand. You need to be loyal to your company brand so you can lead by example. You can’t sell your products convincingly unless you’ve tried them yourself and seen their results. You should essentially be a walking billboard for your brand.
Next, you need to encourage your downline to attend group-wide meetings and conventions whenever possible. These events and venues where distributors can all get together are perfect for getting everyone motivated. It helps people stay focused on their goals. This ultimately leads to improved sales.
You also have to be there to mentor your downline. You can offer advice and give them some inspiration. Tell them all about the business tools you used to grow your own downline. Encourage them to seek more information from books and online guides.
This business is built upon trust. Building your network is not an easy task, but you will eventually reach your goals by nurturing your existing connections and attracting more people into your downline.
How Do I Grow My Nu Skin Team?
The best way to grow your Nu Skin team is by selling your products. Focus on selling rather than recruiting and you will naturally be able to identify those who have the potential to become distributors. This will help increase your sales and build your downline to earn commissions.
When it comes to selling your Nu Skin products, the best way to do so is through social selling. Identify your target audience and engage with them directly, either in-person or via social media. Social media is a powerful tool for businesses such as Nu Skin because it lets you reach a much larger audience, more effectively. Use Facebook, Twitter, LinkedIn YouTube, and TikTok to attract the attention of your target audience. Create a strong impression online by sharing your personal journey with Nu Skin. People love seeing results, so if you can show them how these products work, you will find it easier to sell them.
If you want to go the direct approach, start with your friends and family members. You can then branch out and build a larger network from there.
Whatever platform you are using to reach your audience, engaging with them is very important. Respond quickly to comments and inquiries about your Nu Skin products. Build a consistent online presence so that people will see you as a thought leader in your industry. This will help you sell and recruit more people later on.
How Can I Make My Nu Skin Business Faster?
Try using these Nu Skin products yourself so you understand their benefits. It will also allow you to create your own success story based on the products and the results you’ve experienced personally. This makes your journey more compelling to everyone who knows about your business.
Speaking of which, you need to make sure that everyone knows about your Nu Skin business. Post about it on Facebook, tweet about it, or make a video and upload it on YouTube. You can’t sell these products without letting everyone know about your business.
Don’t just sell the same things to everyone. You will see much better results if you listen to your customers individually and see what they need. Establish a strong relationship with your customers and prospects. Connect with them authentically. Only then will you be able to identify those with genuine passion for these products and have the potential to join your downline.
If you are using social media to promote your business, make sure you stay relevant by posting content regularly. Growing your Nu Skin business may be difficult, but it can also be a rewarding and exciting experience.
How do Nu Skin Reps Get Paid?
Nu Skin distributors are paid from the retail markup on products they are able to sell. They also get a performance bonus based on the sales made by the distributors they have recruited. According to Nu Skin, the company pays approximately 43% of its product revenue in sales compensation.
Nu Skin’s compensation plan revolves around three words: “share, build, lead”. To make money in this MLM business, you need to share their products and services, build your downline, and lead them to do the same thing. The idea is to keep the ball rolling so that everyone earns more.
There are two ways to earn money with Nu Skin. The first is by finding customers who are interested in Nu Skin products and willing to pay the full retail price for it.
Another is by building your team by adding people to your downline. This second option involves accumulating “blocks”. Every 500 worth of sales points gives you one Nu Skin block. If the sale comes directly from a customer or a member you have recruited, you get a “sharing block”. You also get a “building block” when a sale comes directly from people who were recruited by someone else in your downline.
Accumulate enough blocks over six months and you will qualify to be a “brand representative” for Nu Skin, a rank that gives you a building bonus.
Is Working for Nu Skin Worth it?
Working with Nu Skin as a distributor is a lot of hard work. You need to stay active in order to earn money from this MLM. Nu Skin wants you to set goals, take action, and work towards those goals. And once you have succeeded in reaching those goals, you can start leading others towards theirs.
While the idea is good, this business opportunity may not be for everyone. How much you earn entirely depends on how much work, time, and effort you put into the business. If you are passionate about Nu Skin products and their benefits, you may enjoy sharing these with other people. Otherwise, you may struggle to grow your business. You also need to sharpen your marketing, sales, and communication skills to get the best results.
In terms of earnings, Nu Skin’s active distributors earned an average annual commission of $1,806.36 in 2017. This means the average Nu Skin distributor earned less than $35 per week that year. Only 15.42% of Nu Skin distributors earned commission every month. It is possible to get no commission at all, depending on your performance.
In addition to this, Nu Skin also has a monthly sales requirement to stay active. It is easy to see how some distributors can lose money in the process.
Overall, this business opportunity can work, but it is hard to reach that point. For this reason, a lot of distributors use Nu Skin only as a way to supplement their main source of income rather than replace it altogether.
What Company Owns Nu Skin?
Nu Skin was founded in 1984 by Blake Roney, Steven J. Lund, Sandie Tillotson, and Nedra Roney. In 1988, the company acquired Generation Health, which is the parent company of Pharmanex, a dietary supplement company.
In 1990, Nu Skin expanded when it began its first foreign operation in Canada. It also started operating in Hong Kong one year later. Nu Skin listed on the New York Stock Exchange in 1996.
In 2009, Nu Skin also began working with LifeGen Technologies, a genomics company that is based in Madison, Wisconsin. They acquired LifeGen in December 2011. Now Nu Skin has more than 1.2 million independent distributors.
Can You Make Money in Nu Skin?
While it is possible to make money in Nu Skin, it is not exactly the easiest thing to accomplish. In 2019, only a few people earned any money from Nu Skin according to the company’s income disclosure statement.
According to Nu Skin: “On a monthly basis, an average of 17.85% of U.S. Active Brand Affiliates earned a sales compensation payment.” This means that a large number of distributors earned nothing during that year.
The average monthly payment among those who did earn money was $123.96. These figures also do not represent the expenses incurred by the distributor’s promotion of their business. Unless you know what you are doing, it is easy to lose money from this business opportunity.
How Much Does it Cost to Join Nu Skin?
According to the Nu Skin website, there is a one-time startup fee of $35 in addition to the annual membership fee.
You also have to provide your personal information and form a Group to join Nu Skin. A Group is a collection of qualified brand reps, members, registered customers, members, brand affiliates, and retail customers. The bigger your Group, the more likely it is that Nu Skin will accept your letter of intent. You can join ongoing Nu Skin Groups in your local region.
Can Nu Skin Be Trusted?
Just like other MLMs, Nu Skin is often compared to pyramid schemes. The difference is that pyramid schemes do not bother to sell products. They are all about recruiting people and nothing more. Nu Skin, on the other hand, is a legitimate MLM business that offers real products.
Their products are not available in stores. They can be purchased directly from a Nu Skin distributor. Nu Skin is also publicly traded in the stock market.
Despite its legitimacy, Nu Skin has had its fair share of controversies. For example, in the 1990s, the Federal Trade Commission (FTC) investigated Nu Skin over complaints of its multilevel marketing practices. The company reached settlements in 1992 with five states that had accused Nu Skin of deceptive advertising and overstating the income earned by distributors.
The company also paid $1 million in 1994 following an FTC investigation. They also signed a consent decree that prohibits them from making unsubstantiated claims about its products.
Can I Switch Teams in Nu Skin?
Nu Skin does not allow distributors to switch teams. Members have to comply with the Policies and Procedures of the company. Line switching is considered a violation and is strictly prohibited by Nu Skin.
Switching teams is uncommon in any MLM company. Most multilevel marketing companies discourage it. Changes in teams and sponsorship are rarely allowed and are highly discouraged.
How Do I Get Started with Nu Skin
Joining Nu Skin as a brand ambassador or distributor is simple. First you have to sign up as a brand affiliate, then send a formal letter of intent for becoming a sales representative. The website makes this very simple. You then have to give them your personal information and form a Group.
A Group is a collection of qualified brand reps, members, registered customers, members, brand affiliates, and retail customers. The bigger your Group, the more likely it is that Nu Skin will accept your letter of intent. You can join ongoing Nu Skin Groups in your local region.
There is also a one-time $35 startup fee and an annual membership fee. If Nu Skin accepts the letter of intent, you will then undergo a six-month training phase. This is called the qualification period. You have to meet each monthly goal during this time, and this includes earning building blocks and sharing blocks. Blocks reset each month. You have to complete 12 blocks in total over six consecutive months; four of which must be sharing blocks. You are disqualified if you fail to report the minimum sales volume for a month. Visit the Nu Skin website for more information.