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!

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