Nu Skin Enterprises
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| Nu Skin Enterprises | |
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| Type | Public (NYSE: NUS) |
|---|---|
| Founded | 1984 |
| Headquarters | Provo, Utah |
| Key people | Blake M. Roney, Chairman M. Truman Hunt, President & CEO Sandra N. Tillotson, Senior VP Ritch N. Wood, CFO Joseph Y. Chang, CSO, Executive VP Product Development |
| Industry | List of network marketing companies |
| Products | Nu Skin Pharmanex Photomax Force for Good Foundation Nourish the Children |
| Revenue |  $1.18 billion USD (2005) [1] |
| Employees | 10,014 (July 2005) |
| Slogan | Look feel Live be |
| Website | www.nuskinenterprises.com |
Nu Skin Enterprises (also referred to as NSE) NYSE: NUS is an American multi-level marketing organization, which sells cosmetics, nutritional supplements, and Internet-based services. It was founded by Blake M. Roney in 1984 and officially listed in the NYSE in 1996.
The company was initially founded when Blake Roney and a small group of friends, including his sister Nedra, amassed $5,000 and ordered their first batch of products. There were initially only a dozen or so products, contract manufactured and delivered in gallon containers, which were then spooned into the first customers' own pots and jars at the founders' homes.
The company initially grew slowly, from 1984 to 1989, reaching a turnover of around $40 million in the USA. At this 'critical mass' point, things began to take-off, and by 1996 the corporation had global revenues of around $1 billion.
The decision was made to take the company public. Initially only the Nu Skin Asia Pacific company was floated, however, shortly afterwards all the remaining affiliates were sold to the new entity and the company was a fully-fledged public company.
The company has had challenges growing beyond the $1 billion mark, but has recently seen massive growth in its Pharmanex nutritional division, acquired in 1998 along with Big Planet Inc., due to the purchase of the global exclusive rights to a technology called the BioPhotonic Scanner, which measures skin carotenoid levels, thereby proving the efficacy of Pharmanex's supplement products.[verification needed]
In 2005, through its Big Planet division, the company launched a new internet based service called Photomax.[citation needed]
Founded in 1984, Nu Skin Enterprises 2005 sales reached approximately $1.2 billion in annual sales in 44 international markets. The Nu Skin brand has a line of more than 100 skin treatment and other personal care products. In 2005, approximately 82 percent of revenues were generated from markets in Asia.
Nu Skin Enterprises also runs a non-profit humanitarian organization called the Nu Skin Force for Good Foundation. The foundation's stated mission is to support indigenous cultures and to protect fragile environments.[1]
The Nu Skin distributor earns money in several ways. Firstly, they earn the retail profit when buying at wholesale and selling to retail customers, with an average mark-up of 43%. Secondly they can earn an override on the order volumes of those they personally recruit and train. Thirdly they earn a 'royalty' on the more successful of their teams through a potential 6 generations of Executive level independent distributors. The company's average distributor earnings are available from the corporate website.
As a leading member of the controversial Direct Selling Association, the company claims to operate extremely consumer-protective return and refund policies, exceeding the required levels.
Truman Hunt, CEO of NSE, is the current Chair of the World Federation of Direct Selling Associations. This organization, an umbrella group for individual countries' organizations, oversees the direct selling industry globally, with its member companies achieveing sales exceedign $100 billion for the first time in 2005.
