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
Monday, August 31, 2009
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!
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.
"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 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.
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!
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