For the record, I am not affiliated w/ Nu Skin. I have nothing against Nu Skin, and I haven’t formed an opinion yet. This post is about the common arguments people use to verify the legitimacy of the business model.
What is up with people saying that a company is legit because it is a publicly traded company and listed on the NYSE? It is really retarded to state this fact to support your argument. Par example the piker in the video above. Regardless of whether a company is listed on the New York Stock Exchange, isn’t a tell to the validity of its business model . Let’s not forget Enron or Lehman Brothers that were huge companies, listed on the NYSE and collapsed b/c they cooked their books. Equal measures of scrutiny should be placed on public and private companies. Second, he says to look back into history and you will see that it’s very rare for a scam to last for 25 years. So now he’s a historian! We know he’s put in the time to study every company and their business models that have ever traded on stock exchanges. Riiiiight. Extrapolating past historic event to predict future events is logical fallacy. Later, he states that NYSE stocks have to publicly declare their income and he starts talking w/ his hands. Shouldn’t it be on the wheel! Again… Enron and Lehman Brothers. Having to show your earnings and balance sheets doesn’t make you legit. Talking with your hands while driving do. Ha! NYSE stocks have to publish their earnings b/c they are traded on public exchanges and have outside investors. On the other hand we have private companies that aren’t listed on stock exchanges. They do NOT have to show their balance sheets. So does that mean their business model has a higher chance of being a scam? I don’t think so. Then, Mr. Talk With His Hands says, all of mass media is talking about it…. so it’s hot hot hot! Just like when Mass Media was talking about flipping houses b/c it hot hot hot! Then the market it dropped it like it was hot. Ha! Ok, I know that it was lame to use a line from a popular hip-hop track as a punch line. Anways, I couldn’t watch the entire video and at that point I just turned off my computer and went to 7-11 to down a mega size slurpee.
In the end, I’m not commenting on the company Nu Skin. I am commenting on the ding dong arguments that are being used. I might go into a more in depth analysis of Nu Skin the company later.