This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Amid Vietnam Gloom, US Company Promises Riches

The company says in the U.S. the average commission for an entry-level distributor is around $500 a month, and that the attrition rate is 63 percent. Nu Skin, which is predicting revenue of more than $2 billion this year, declined to give a breakdown of its commission figures in Asia.

MLM companies have mushroomed in Vietnam over the last 10 years. The industry is worth $200 million a year and employs over 1 million distributors, according to the government-sanctioned MLM association.

The businesses, local and foreign, have a bad reputation after hundreds lost money in well-publicized fraudulent schemes over the last year. The government has pledged to tightly regulate the sector.

The MLM business has a patchy reputation in other parts of Asia also.

Nawarat Rojpientham started selling Nu Skin products in her native Thailand in 2010 after being introduced to them by a friend. The 40-year old stopped after less than a year, with more than $200 worth of stock in her home unsold. She complained of high pressure from team leaders, unreasonable sales targets and an inability to make money regardless of how hard she worked.

"They would implant this idea inside your head that you have to find more clients and sell more products, and that's what I did every day for almost a year," the mother of two and former nurse said. "The only one who really benefited from the sales was the company, not me. I had to buy a lot of products each month to meet the quota. But it wasn't worth it, in the end."

The company's website warns that the business is not a "get rich quick program" and that "generating meaningful compensation as a distributor requires considerable time, effort, and commitment. Critics claim the profits earned by multilevel marketing companies are dependent on a constant churn of people like Rojpientham, who face stiff odds of ever making a decent living.

2 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,057.25 +78.12 0.46%
S&P 500 1,992.55 +6.04 0.30%
NASDAQ 4,528.0370 +1.5550 0.03%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs