MLM has a simple structure. Each ‘ambassador’ sells a brand’s products and can recruit other sellers that they will support. These two hats, as a seller and a recruiter, create a human distribution channel without any intermediary. As it is based on individual motivation, this model makes it possible to rely on a widespread, agile sales force.
The Nu Skin model
The model is nothing new as such. Cosmetics giants, especially American, developed this way. The most iconic include Avon and Younique, as well as Nu Skin, one of the most resounding successes in this segment in recent decades. Founded in 1984, the American company banked on cosmetic products and food supplements created according to a scientific approach based on epigenetics. The brand developed a patented technology called AgeLOC: it is used in most formulas, which it combines with connected technologies like LumiSpa IO. An online diagnosis, through a dedicated app, also enables customers to identify the products that best-suit their skin. An online diagnosis, through a dedicated app, also enables customers to identify the products that best-suit their skin (to be tested here).
According to Euromonitor, Nu Skin has been the world leader of beauty and wellness skincare devices for six years. Now present in 50 countries, the listed brand generates two billion dollars in sales. And yet, the products are available only through the Nu Skin community, which counts 70,000 members around the world, covering over one million consumers.
“From the very beginning, Nu Skin aimed to outsource its sales force through self-employed workers, who are above all convinced consumers. This approach is inefficient if you are not convinced that the products are efficient,” explains Laure Sauvage Lefebvre, a freelance worker who joined the Nu Skin adventure eight years ago.
A former Marketing Director in the cosmetics industry, the Nu Skin member explains that through this economic model, she found “the way to create her own business without any risk, thanks to a reliable, robust partner in line with her values.” Year after year, she progressed through the network’s development phases, and now her main activity consists in recruiting and supporting other members towards success, as well as leading her network of distributors.
“The objective is to provide people who need an additional income with a turnkey solution. We all come from different sectors and trades, and I think that is what makes our collaborative approach so valuable. We are all willing to change our professional lives, or want to enjoy more freedom, more flexibility, and more meaningful experiences. Our job is aimed at developing distribution networks with self-employed workers or beauty and wellness professionals, either as an additional activity or a full-fledged career. There are several levels of commitment possible,” she says.
Nu Skin’s compensation plan is structured to reward both direct selling and the development of the distribution network. “Our income comes from the distribution network we set up. By definition, this network has no limit, so it is a real driver for pay. We have many tools at hand to support other members and make them discover the products and the project, including conferences and online workshops focused on the membership plan. For our customers, word-of-mouth mainly takes place on social media,” adds Sauvage Lefebvre.
Committed communities
Other than the power of digital word-of-mouth, Multi-Level Marketing has a key advantage for a brand: that of reducing distribution costs. This was one of the arguments that convinced Violette Soriano and Flavie Soldan, the co-founders of ecodesigned French skincare brand Belles Sœurs, launched through direct selling in 2022.
“When we got the idea of creating Belle Sœurs after the pandemic, physical distribution was reinventing itself and e-commerce fees had reached a peak online. We thought direct and social selling represented a third distribution path that might reconcile the two worlds, i.e. the physical aspect, through upgraded traditional door-to-door selling, and the power of social media,” says Soriano.
It was a winning choice, since two years after the brand was launched, it now boasts 300% growth through its network of over 400 advisors already set up in France, and it has just entered the Belgian market. The advisors are active women workers with various backgrounds for whom it is an additional activity, mainly through discovery master classes they host.
As a complement to these sessions, the ambassadors take advantage of the scope of social media through micro-influencing. They design and broadcast engaging content, and then they establish a one-to-one dialogue with their public.
Growth networks
Direct selling is based on the notion of value sharing. Choosing to pay a committed community rather than a distribution network contributes to developing the brand image.
“We have not spent any money on advertising, but rather on our network of advisors, who earn 30% commission on the product sales, on average. They work at their own pace, depending on their activities. Our growth relies on the growth of this network, so we keep recruiting new ambassadors, and we are hoping to reach 1,000 in a year. A dozen of them can now recruit their own teams, train and support them. They are paid according to the global turnover generated by their own team. Some of them can earn a full income with Belles Sœurs,” adds Soriano.
The brand has made ambassador support a key strategic priority, investing heavily in training, digital tools, and community management. Mobile application, training platform, management software, and team spirit events all contribute to building up an ecosystem designed to offer a turnkey business model that is accessible without any prerequisites.
“We are really happy to have made this choice for distribution, but it is key to master its very specific levers. It is all about supporting the network, knowing how to motivate them, challenge them, guide them in navigating social media, home meetings, etc. There are many things to be in line with, so we can appeal to both customers and distributors. This model is not easier than others, but it is deeply human,” concludes the entrepreneur.
The ambassador model has already attracted several cosmetics brands in France, including Sanoflore and Secrets de Miel, and around the world.