Thursday, November 26, 2009

Bouncy Balls or Nutritional Supplements, It Doesn't Matter - A Pyramid is a Pyramid

A discussion I am having on the forum explains how USANA works in a nutshell. You can enjoy this current discussion at the following link at

Originally Posted by bibleman 
Let's play with this for a minute...

You are saying that if a company sells bouncy balls that normally cost someone roughly $5 at their local sports store...but in order to participate, you are required to buy the $5 ball for $10 in order to have a commissionable payout split 5 levels...and further, that you are required to buy a new $10 bouncy ball every month in order to collect the commissions on your own sale of bouncy balls (mostly to other distributors who are recruiting their own distributors/customers) that it is a pyramid scheme.


1) USANA distributors would be required to purchase $100 worth of bouncy balls every four weeks in order to participate in the compensation plan. (There is no way for a distributor to make a single penny if they don't make these required purchases)

2) Normally these bouncy balls retail for $5, but USANA sells them to their own distributors for $10 and tells its distributors they could then resell it for $15 and make a profit margin. (Obviously the notion that a distributor could retail the bouncy ball for a profit is nothing but lip service and does not happen in the real world)

3) 40% of the price of each bouncy ball ($4) goes toward paying out commission to as many levels as it takes to max out the given leg. If you string together a line of distributors all on the left leg, and each distributor purchases their required amount of bouncy balls for the 28 day cycle, then the commission gets paid up 50 levels before maxing out. This is much higher than the 5 levels you mention.

4) Since commission payout is only calculated based on the lesser of your two legs (the balancing act), it ensures that USANA will never pay out too much (helping to ensure a 40% distributor incentive rate).

5) Since a perfectly balanced BINARY MLM structure yields a 87% guaranteed profitless rate (not including other business expenses than the required purchases), and since balancing your downline legs is virtually unheard of and near impossible, it sends the profitless rate up close to 99%.

6) So 99% of distributors who are out purchasing bouncy balls every 4 weeks enrich the pockets of the top distributors and company executives while those 99% of distributors lose money.

7) In fact, the recent $3 billion in sales milestone USANA reached was achieved by 99% of the USANA distributors who themselves LOST MONEY and never made a profit by forcing their distributors to purchase their expensive product.

Whether USANA distributes bouncy balls or nutritional supplements, the effect is the same. The compensation plan is designed to prevent 99% of distributors from ever making a profit. So what's the fair solution? Well, instead of shutting down thousands of MLM companies one by one, all that is required is to restrict MLMs from forcing their distributors to purchase personal product on a regular basis in order to participate and be commission qualified.

MLM companies should make their distributors direct SELLERS instead of direct BUYERS. Get rid of this stupid point system and the stupid balancing act. In other words, MLMs should stop playing games with their distributor's money. If a distributor brings in 100 preferred customers, then that distributor should be paid commission based on those preferred customer's purchases whether the distributor personally purchases USANA product for them self or not. Stop forcing distributors to purchase overpriced product.

Just so everyone knows, these forced purchases distributors must make do not pay out commission to the distributor who makes the purchase. So if a distributor RESELLS the product they were forced to purchase, and they resell it at their cost, well, they are paid ZERO commission for that sale. However, each and every upline member gets paid a commission on it whether you resell it, or flush the garbage down the toilet.

Monday, November 2, 2009

USANA Launches New Vitamin D Product - Get Ready To Pay Too Much

USANA launches their newest Vitamin D product. While there is nothing special about the ingredients used, it does share one of USANA's popular traits: It is way over priced!

USANA Distributors pay $19.95 for a bottle of 84 tablets, each containing 2000 IU of Vitamin D. Distributors are forced to purchase USANA's overpriced product in order to participate in the business opportunity and be "commission qualified". They are overpriced to fund the pyramid scheme. The majority of USANA's net revenues comes from the distributor's required purchases. The FTC has much to say about that.

The following graph shows a price comparison of USANA's Vitamin D product. A table of the graph is at the bottom.

PDF Document: USANAVitaminD.pdf

Price Per Bottle
Tablets Per Bottle
Vitamin D Per Tablet
Adjusted Price To Match USANA's Dosage
84 Tablets
2000 IU
Natures Bounty
100 Tablets
400 IU
Windmill Sunshine
60 Tablets
2000 IU
Natures Bounty
100 Tablets
2000 IU
Natures Made
100 Tablets
1000 IU
100 Tablets
1000 IU
Carlson Laboratories
100 Tablets
1000 IU
180 Tablets
2000 IU
Natural Factors
90 Tablets
1000 IU
100 Tablets
1000 IU
Source Naturals
200 Tablets
1000 IU
Life Extension
60 Tablets
5000 IU
Vitamin Shoppe
100 Tablets
2000 IU
Source Naturals
200 Tablets
1000 IU
300 Tablets
1000 IU
Good'n Natural
100 Tablets
1000 IU
Carlson Laboratories
120 Tablets
2000 IU
360 Tablets
4000 IU
Source Naturals
100 Tablets
2000 IU
120 Tablets
5000 IU

Thursday, October 15, 2009

USANA Leadership Ranking Table - Shocking Truth About Rank Advancements

I have taken some time and put together a wonderful PDF document that clearly shows how many distributors are in each leadership ranking. Included in this document is a shocking bit of information. Of those distributors who had been a member of USANA at this time last year, only 2% of them advanced in rank during the past year. Even more shocking is the fact that less that 0.3% of distributors had advanced from a level of builder or less to a level of Achiever or greater. This is evidence that hardly anyone advances in USANA, especially those at the bottom of the pyramid scheme. Chances of making a profit are less than 1%!

View PDF Document: USANALeadershipRankingOct2009_Table.pdf

Monday, October 12, 2009

New Chart shows that 810,000 USANA distributors are "Builders" or below

USANA doesn't publish a complete list of their business associates, and for good reason - the truth hurts.

810,000 USANA business associates rank as "Builders" or below, which makes up 97% of the company's sales force. According to USANA's last published associate earnings report from 2006, the average builder makes only $1195 for the year. However, it costs the associate close to $1480 in product inventory every year. This product inventory is a mandatory purchase (or else you don't get paid any commision) and the extremely high prices cause associates to get stuck with dead inventory.

Some of you may know that USANA reports to have 200,000 "active" associates, which are those who met their minimum inventory purchase within the last 3 months. So it should surprise you when USANA has 834,000 distributors in their database. Whether this figure includes those who have left the distributorship long ago or not, it still shows the devastating effect an MLM like USANA has on its participants. This is evidence toward the claim that 99% of distributors lose money while enriching the top 1%. Make sure you understand that point. Those distributors that lose money are the ones making the top 1% of distributors all their money. And of course those 99% who lose money also make USANA billions of dollars.

The following chart shows the findings in a graphical representation. I will add a numerical table soon. I will also include a link for anyone who wishes to download the entire distributor list containing the distributor ID # and the leadership ranking for that number. I will withhold the distributor names for those numbers.

Thursday, September 17, 2009

USANA's absurdly overpriced CoQuinone® 30 versus comparable products

USANA's CoQuinone® 30 product is quite popular among its distributors. Do their distributors know just how much they are paying for their CoQ-10 product? I thought I would compare USANA's product with other companies.

USANA's CoQuinone® 30 has 56 tablets, each contains 30 mg of CoQ-10 and 12.5 mg of Alpha Lipoic Acid. USANA Charges its distributors $37.95 for one bottle.

What I did is find other companies who sell both CoQ-10 and Alpha Lipoic Acid. I calculated the cost per mg per tablet for both products. Then I recalculate the cost to make an equivalent product as USANA's (56 pills each with 30 mg of CoQ-10 & 12.5 mg of Alpha Lipoic Acid). The resulting cost is astonishing!

GNC, Natrol, Source Naturals, and Nature's Bounty all fall under $10 for an equivalent product to USANA's. The graph below says it all. I recommend sharing the PDF document in the link below as it contains all the calculations so there is no refuting the numbers.

Again, USANA overcharges its distributors in order to fund its pyramid scheme. Contact your state's attorney general's office if you are or have been a victim of USANA's business opportunity scam.

Sunday, September 6, 2009

USANA over charges its distributors for their new Pure Rest™ melatonin sleep aid

USANA announced their new melatonin product called Pure Rest™ during their 2009 annual convention. Pure Rest™ costs distributors $14.95 and retails for $17.94. Each Bottle contains 56 tablets. Each tablet contains 2 mg of melatonin. So USANA charges its distributors 13.3 cents per mg per tablet.

Why so much?
USANA says their Pure Rest™ contains "Pharmaceutical Grade Synthetic Melatonin". I believe the high absurd price is to fund USANA's pyramid scheme.

Does anyone else have Pharmaceutical Grade Synthetic Melatonin?
A company 17 miles down the road from USANA's headquarters in Utah called WorldWide Labs. Their melatonin sleep aid costs 2.6 cents per mg per tablet, and that's the retail price!

So how does USANA's Pure Rest™ fair up with other popular brands of melatonin product? The following graph has the answers.

Monday, August 31, 2009

Sanoviv in danger of being shut down - 2009 USANA Convention Highlight kept quiet.

Sanoviv is in danger of shutting down according to the Sanoviv Dinner that was held at USANA's 2009 Annual Convention. Low attendance is the reason. The cause? Well, USANA, I mean Sanoviv is blaming it on three factors. The Swine Flu, The Drug Cartels, and The Economy.

I have another suggestion. How about the astronomically high prices for their phony treatments! All of their "alternative" treatments are banned in the United States because no evidence is out there that those treatments have any effect.

- Complete Diagnostic Program (CDP)----$8,500 –Six nights
- Comprehensive Medical Program--------$14,600 –base cost for Two weeks
- Medical Spa----------------------------------$7,550 – One week
- Rejuvenate-----------------------------------$13,200– Two weeks
- Holistic Oncotherapy----------------------$39,000- Four weeks at Sanoviv, two weeks at home
- Cardiovascular health---------------------$17,000- two weeks at Sanoviv, two weeks at home
- Neurological Repair------------------------$23,000 – Three weeks at Sanoviv, three weeks at home

Sunday, August 30, 2009

How much is a USANA distributor worth? Gross reality of USANA

Multilevel Marketing is serious business, especially when each recruit means more money in your pocket.

For the example below, assume that distributors only purchase the required amount to qualify for commission for a single business center for an entire year (1300 PSV).

In one year, a USANA distributor with 1 business center will have purchased around $1430 worth of inventory so they can qualify for commission (company required policy).

After doing some analysis with the exampled distributor above, I found that each distributor in one's downline makes them $130 per year. So in order to break even, a distributor must enroll 11 more distributors into their downline.

What does all this mean? 11 out of 12 distributors LOSE MONEY. And that is the best possible outcome because I am assuming everyone has a perfectly balanced downline. In reality, everyone's downline is so lopsided, that the loss rate goes up to 99% of distributors.

So if you have Seven Levels totaling 127 distributors, 112 of them lose money while only 15 make money.

This business structure is not sustainable and obviously not fair. It isn't fair because no matter how many people are recruited, the loss rate is mathematically FIXED. In the most perfect world, USANA will have at least 88% of their distributors fail. Mathematically designed to fail the majority of its distributors.

Another sick outcome of this design is the fact that those who lost money are the ones bringing in all the revenue for USANA! In the Seven level example, those 112 distributors who lose money paid a total of $160,160. The 15 who made money only paid a total of $21,450!

So USANA's net revenues including their $3,000,000,000 milestone, were funded primarily by their distributors whom themselves LOST MONEY!

Saturday, August 29, 2009

According to a FTC memo, USANA is a Pyramid Scheme.

The FTC states the following:
"Modern pyramid schemes generally do not blatantly base commissions on the outright payment of fees, but instead try to disguise these payments to appear as if they are based on the sale of goods or services. The most common means employed to achieve this goal is to require a certain level of monthly purchases to qualify for commissions." - Pyramid Scheme Analysis

USANA does exactly this. USANA makes most of its net revenue from the required 100/200 Personal Sales Volume that business associates are forced to purchase every four weeks if they want to "qualify for commissions". If USANA did not have this forced inventory purchase, then USANA would go out of business in less than three months.

If USANA claims that the business associates purchase the product because they want it for personal use, then prove it by eliminating the four week required personal purchases in order to qualify for commission.

Thursday, August 27, 2009

Does USANA violate SEC rules by announcing new products during private convention?

Question for the law savvy individuals in here. If USANA privately announces new products (Pure Rest) to their distributors during their 2009 annual convention instead of publicly announcing it through a press release so all 100% of shareholders could be notified, is that against SEC rules?

USANA distributors who are also USANA shareholders could have called their stock broker today and purchased USNA shares because they have insider information that the remaining shareholders don't have who didn't attend this private convention. If I am right about this, then USANA's method of announcing new products needs to be investigated by the SEC and fined if guilty.

USANA's Flawed "Product Advisor"

USANA has a "Product Advisor" service on their Product section at their corporate website. The service asks you a list of questions and depending on your answers, recommends which USANA products you need to take. The system is grossly flawed!

After answering the questions with the BEST possible answer allowed, the "Product Advisor" still recommends AT LEAST $96 (retail price) worth of product every month! This is messed up! That was the "Compact List" as well.

The "Optimal List" the Product Advisor service suggested adds up to $150 of supplements!

This is FALSE ADVERTISEMENT because USANA is basically claiming that no matter how perfect you treat your body, you are "DEFICIENT". So USANA suggests you purchase AT LEAST $1248 worth of their supplements each year.

Their product advisor program should be written to allow for the possibility that an individual does NOT need to supplement their diet.

Saturday, August 22, 2009

New Watch Dog site dedicated to the MLM company USANA

This blog will be designed to help prospective and current USANA business associates decide whether they are making the right decision by joining USANA. Stay tuned!