FALSE1. Low Start-Up Costs
To start your own home-based USANA business, there is very little upfront investment and no qualifying volume or inventory requirements. The only required purchase is USANA’s Business Development System. For as little as $30 US, you get a tried and tested system for creating an income-generating business that can last a lifetime.
- New associates are also required to activate their business center(s) before they are considered “Active” and be eligible to collect commission. To activate a 1-Business Center plan, associates need to personally purchase about $180 worth of product. To activate a 3-Business Center plan, associates need to personally purchase about $540 worth of product. These Personal Sales Volume (PSV) purchases do not pay out any commission to the new associate even if resold to a retail customer, however the associate's upline will get paid a commission from your purchase.
- While USANA claims there are no inventory requirements, there are mandatory PSV purchases that associates must make every 28 days depending on the number of business centers they have. For a single business center, this is about $120 every 28 days that the associate must personally purchase. If the associate fails to make this purchase, the associate loses their "Active" status, is stripped of any Group Sales Volume (GSV) that has accumulated up to that point, and is not eligible to collect any commission from their preferred customers or downline associate's purchases. So yes, there is an inventory requirement. This is why it pays to recruit new associates instead of retailing product.
2. Simple Compensation StructureFALSE
No previous experience is necessary for you to be successful with USANA—just bring a willingness to learn and a passion for helping others improve their lives. It only takes your efforts and two individuals to do the same for you to start building a profitable downline organization. And, depending on your ambition and efforts, you can start earning commissions in your first week simply by sharing the products with others and ordering some for yourself.
- USANA's compensation plan is extremely complex, contains vast amounts of requirements that are difficult to follow and understand, and is designed to fail over 90% of participants no matter how hard they try.
- USANA's claim that you can start earning commissions in your first week "simply by sharing the products with others and ordering some for yourself" is not true. Sharing the products with others implies the associate is giving away samples or even selling product from the associate's own inventory purchases. Don't be fooled however! Associates are not paid any commission from the PSV purchases that USANA requires them to make every 28 days. If a new associate joins, activates a single business center by personally purchasing $180 worth of product, and shares these products with others, that associate will not be paid a dime in commission. In order to be paid a commission like USANA claims, you would have to recruit at least 2 new associates in your downline who spend over $250 each, or find about 5 preferred customers who each purchase $100 worth of product during your first week (Both scenarios will pay you $40 in commission). BTW, there are 1 active preferred customer for every 3 active associates. Good luck on the preferred customers because they have been on a downward spiral!3. Incredible Earning PotentialFALSE
Unlike a traditional job that gives you only one way to earn income, USANA’s award-winning compensation plan offers an incredible six ways to earn income, providing a realistic opportunity to leverage your downline’s efforts to earn an above-average commission check every week. To help you succeed, unpaid volume carries over every week, there are no group sales requirements, and you are not limited to levels. In addition, you could potentially save thousands of dollars with home-based business tax deductions*.
- 99% of USANA associates never make a profit. This incredible earning potential only applies to those who inact boiler room recruiting tactics, unethical doctors peddling USANA products to patients, and those who have gotten in very early on. Of course someone can join today and make a fortune by recruiting their church's congregation into their downline by placing undue pressure on the church members (See Operation Promise Land).
4. Your Business Fits Your LifeFALSE
It’s your business. You work where, when, and how you want. Generally, if you put in a little bit of work, you’ll earn a little bit of income. If you put in more work, your earnings will increase. And, you’ll be free from the typical workweek irritations—no alarm clock, no schedule, no rush hour traffic, and no boss.
- It is not a business unless you are out retailing USANA's products. Unfortunately, very few associates do so. The real operation is to sell the business opportunity and recruit more and more associates into the scheme. You can be sure that all of USANA's big shot associates making hundreds of thousands of dollars are all doing so because they have a massive downline of associates in their business centers, not because they retail millions of dollars worth of product to customers. It's not about selling the product, it's about selling the dream of making money. You sell the dream of becoming rich and the products are purchased automatically because it is a requirement to purchase in order to participate!
5. You’re in Business for Yourself, Not by YourselfFALSE
USANA is behind you every step of the way. You will receive expert training and have access to a wealth of tools to make your life easier: a full Associate-only web site where you can get the latest news, training, free downloads, and business management services; frequent Web conferences; unforgettable events; eye-catching sales aids, professional multimedia productions; exciting publications; and much more. Our enthusiastic and experienced customer service team is available to help in six languages. And, with our Autoship program, you’ll never have to handle inventory—we’ll ship everything directly to you or your customers on a schedule that’s convenient for you.
- USANA is in front of you every step of the way. USANA associates must purchase overpriced product every 28 days in order to participate in the opportunity. Because the distributor's prices and the preferred customer's prices are the same, there is no profit margin that can be made on selling the product retail. Then USANA takes 45% of the money you just paid them and gives the vast majority of it to the 1% of associates that are at the top of the pyramid scheme. However, the bottom 99% of associates never make enough of see a profit. USANA's heading for this section would be more accurate if it read "You're in Business for Your Upline, Not for Yourself".
6. A World of Possibilities
If you’ve always wanted to travel the world, USANA is your ticket to a successful international business. USANA responsibly expands by choosing promising markets around the world in which to open for business. With our seamless compensation plan, you can build your organization in multiple countries without having to worry about different compensation plans or currency conversions. USANA takes care of everything while you work in exotic locations, discover exciting cultures, and make a world of new friends.
FALSE
- New associates don't stand a chance at doing business internationally. This is because the big shot associates (top 1%) already have their feet planted firmly in new territories just prior to the official openings. What USANA really means by their statement here is that there are no territorial boundaries in which you can recruit preferred customers or new associates. In other words, everyone in your neighborhood could become an associate just like you, and if they are not in your downline, then you are pretty much out of luck. But consider this, if 25 different McDonalds restaraunts existed on a single block, would any of them make a profit? No, of course not. In fact, they would all go out of business except one. That last remaining McDonalds would then be able to profit and stay in business. This dilemma is known as over saturation. USANA wants to pretend as though saturation does not apply to their recruitment operation.
7. Growing Health & Wellness IndustryFALSE
For many years, wellness-related businesses have been one of the fastest growing segments in direct selling. Renowned economist Paul Zane Pilzer identified wellness products and programs as the economy’s next trillion-dollar industry. As a large portion of the world population ages, they are looking for products that make them look and feel better, and younger generations are looking for ways to maintain their health and energy levels to meet the needs of their busy lives. USANA is poised to meet those needs.
- About 99% of the world cannot afford USANA's expensive products. If USANA did not force its associates to purchase over $100 worth of product every 28 days to participate in the compensation plan and be eligible for commission, then USANA would vanish because the people who would purchase the product would be those who actually want it. Associates who quit the business opportunity also quit purchasing USANA products. Over the past 18 years, USANA has had over one million associates. However, only 210,000 are considered "Active" as of July 2010. Most of these currently active associates joined within the past year. Thus, over 80% of USANA associates left the business opportunity and also stopped purchasing the product. This is indicative of the fact that the net sales for USANA change proportional to the number of currently active associates. USANA is NOT poised to meet the world's needs.
8. The Leader in Quality and InnovationFALSE
USANA’s quality products are formulated by a world-class scientific team based on cutting-edge, proven science and Dr. Myron Wentz’ expertise in keeping cells healthy through optimal nutrition. The company also collaborates closely on research with the Linus Pauling Institute and other notable institutions. Additionally, most products are manufactured and packaged in USANA’s own state-of-the art facility, allowing USANA to guarantee the quality and potency of every product.
- USANA spends less than 1% of net sales in Research and Development. Simply readjusting dosages in their products is not innovative. As far as quality goes, USANA claims to manufacure according to Pharmaceutical GMP. However, USANA refuses to allow any agency or organization to test USANA's facility according to Pharmaceutical GMP. Only the standard Food GMP has been tested at USANA's facility. Manufacturers like USANA can claim to manufacture according to drug standards, but never have to prove it because they are not required to. You cannot call yourself a leader in "Quality" when you refuse to allow testing of your products to the Pharmaceutical GMP quality like USANA claims. BTW, in order to be Pharmaceutical GMP like drugs have to be, USANA's ingredients would have to be exactly 100% to what they claim is in the pills. Not 10% over or 10% under. Can you imagine a prescription drug that calls for exactly 30 mg is slightly over or under the printed dosage
9. Worldwide CredibilityFALSE
A member of the Direct Selling Association, USANA is a solid, publicly traded company that has attracted people of all ages, genders, and education levels from across the globe. World-class athletes, best-selling authors, respected scientific institutions, leading health and wellness experts, and experienced business professionals across the globe have all recognized USANA’s commitment to excellence.
- The Direct Selling Association has no credibility. The DSA board members consist of executives from Multilevel Marketing companies, not Direct Selling companies. The hijacking of the association has destroyed the credibility of network marketing by promoting product-based pyramid schemes called Multilevel Marketing. And just because individuals from all walks of life join USANA does not mean anything. Some people will do anything for a buck. Credible people also recommended and stood behind Enron, Worldcom, and Bernie Madoff's scheme.
10. Experience You Can Count OnFALSE
Founded in 1992, USANA has years of experience in perfecting not only products that set the gold standard in the industry, but also a duplicable home-based business model that is stable in a good economic climate or bad. Under the direction of USANA’s solid and experienced management team, the company is positioned for a future of continued growth and success.
- Whether constantly changing dosages in their vitamins constitutes a perfecting of the product or whether it is done just so associates cannot return the product for a refund after 3 months (instead of 12 months as required), I guess USANA does have experience, but you don't want to count on it. The claim that USANA set the "Gold Standard" in the industry was given by Lyle Macwilliam's Comparative Guide to Nutritional Supplements. I have written much on this subject.
- Pyramid Schemes can sustain themselves as long as you can attract new participants. Pyramid Schemes are successful in both good and bad economical times. Probably more so in bad economical times because people are desperate and looking for ways to make some money. Currently, USANA is growing only in their Asian market, mainly their Hong Kong region. Over the past several years, USANA has NOT been able to grow in their United States Region, Canada Region, Mexico Region, New Zealand Region, Australian region, South Korea Region, Japan Region, Taiwan Region, or United Kingdom Region. So much for continued growth.
Do you get much traffic to this blog? You have some really good information here. I'm surprised there are no comments on this post. I would think if Usana reps read this article, they would attack it like crazy.
ReplyDeleteI have been through it all with several USANA distributors on other forums. When it got heated, spam all of the sudden flooded the forum with USANA advertisements, and I'm talking about hundreds of postings a day from thousands of newly created user names. I figured out who was participating in the mass spam and I reported it to USANA corporate and when USANA contacted them, they admitted it and said they would stop. Well, it continued for a couple years. When I contacted USANA again about it and pretended to be a distributor, they informed me not to participate in any online forums where people are negative toward USANA.
ReplyDeletePoint being, distributors are told to stay away from these types of blogs and forums. I know many ready it however. I also get a lot of victims telling me about their situation.
I welcome USANA distributors to post comments on this forum.
Hello all,
ReplyDeleteI'm a USANA distributor (just started) and I joined with the intent of building my business skills and not just earning money. Now, I'd like to respond to your first two responses.
1. Low Start Up Cost: I believe the context here is RELATIVE to other business opportunities. In building up your own business, you wouldn't get far with $500. And I don't think you won't be able to find a franchise at less than $500. It's about the CONTEXT of the statement, don't take it literally.
2. "90% of participants will fail". This is the same with ANY business. Less than 10% of start-up companies survive the first 3 years of operation. Less than 2% survive the succeeding 5 years. Again, the context here is that USANA is a HOME BUSINESS. So comparing it with OTHER businesses, it's just the same.
My other comments to your other responses is under the same note. The reason why you have an argument against all of these reasons is because you treat it as a 'get-rich-quick' scam. Not as a BUSINESS OPPORTUNITY. (That is why enrolling would earn you a BUSINESS CENTER). I know you're smart, but please get the context of what the ad is saying.
Thanks!
In response to "1. Low Start Up Cost: I believe the context here is RELATIVE to other business opportunities. In building up your own business, you wouldn't get far with $500. And I don't think you won't be able to find a franchise at less than $500. It's about the CONTEXT of the statement, don't take it literally."
ReplyDeleteMLMs do not abide by the "Franchise Rule" because their startup cost is less than $500, which is the cutoff amount in the rule. So obviously all "Franchises" have a start up cost greater than $500.
In response to "2. "90% of participants will fail". This is the same with ANY business. Less than 10% of start-up companies survive the first 3 years of operation. Less than 2% survive the succeeding 5 years. Again, the context here is that USANA is a HOME BUSINESS. So comparing it with OTHER businesses, it's just the same."
You are pulling those statistics out of your wazoo. According to an article that uses numbers from the Census Bureau, after 3 years 56% are still in business. After 5 years 45% are still in business. After 10 years, 29% are still in business. - http://smallbiztrends.com/2008/04/startup-failure-rates.html
In response to "My other comments to your other responses is under the same note. The reason why you have an argument against all of these reasons is because you treat it as a 'get-rich-quick' scam. Not as a BUSINESS OPPORTUNITY. (That is why enrolling would earn you a BUSINESS CENTER). I know you're smart, but please get the context of what the ad is saying."
Never have I referred to USANA as a "quick rich scheme". USANA certainly isn't a "Business Opportunity" either. USANA is a pyramid scheme that sells distributorships to people who are looking to make money. The job of the distributor is to go out and recruit more distributors. Commission is paid to these distributors only if the distributor purchases over $100 worth of product every four weeks. USANA sells most of their product to these distributors who are forced to purchase the product so they can maintain their group volume points and collect commission. What results in a pyramid scheme.
I don't know what this person's agenda is, but his statements are half-truths in many places and slanted. I tried 3 different MLM's before coming across USANA. I don't waste my time doing something that doesn't work! I've been with USANA now for 13 years, BUT WAIT, THERE'S MORE! I lost my USANA business through a divorce. If it is such a bad opportunity, why would I chose to start ALL OVER AGAIN? I wouldn't if it was, as the writer of this blog states, a scam. But, I love USANA, the products & the business, and ALL that it offers. If you want to find out about a business, ask someone that has made a success of it, not someone who has failed. Robert at successinternational.usana.com BTW: There are a lot more than 10 reasons to get excited about USANA!
DeleteRobert,
DeleteYou wrote "I don't know what this person's agenda is, but his statements are half-truths in many places and slanted."
Please quote my statements which you claim are half-truths and slanted.
You wrote "I've been with USANA now for 13 years, BUT WAIT, THERE'S MORE! I lost my USANA business through a divorce. If it is such a bad opportunity, why would I chose to start ALL OVER AGAIN?"
Umm, are you serious? You divorced one woman who was a USANA distributor just to turn around and marry a different woman who is also a USANA distributor. You then got yourself a new distributor ID while your spouse has her distributor ID. From what I can tell you have reached the rank of Silver Director in all three distributor IDs you have been in relationship to.
You wrote "I wouldn't if it was, as the writer of this blog states, a scam. But, I love USANA, the products & the business, and ALL that it offers."
99% of those who join USANA as a distributor don't make a profit. I don't think you really know USANA. Look at it from the perspective of someone from this universe and you would understand how and why it is a scam.
You wrote "If you want to find out about a business, ask someone that has made a success of it, not someone who has failed."
You've been in USANA for 13 years and still only a Silver Director. You only need to generate 1000 commission points four weeks in a row. How hard can that be? You just aren't stagerring your new recruits appropriately. Have you hit up on nonprofits such as churches? I know several who get the pastor to sign up and then have the whole church under him to sign up. Wham, you're a Gold in no time.
For the record, I have never joined any MLM. I have what's called a "career". One does not have to fail at something to know it's wrong.
I agree, Usana is a SCAM! What kind of company makes you buy $100 worth or their product every 28 days in order to make a profit? Aye ya yai, I feel sorry for all the people who got suckered into this pyramid scheme.
ReplyDeletedon't all buisness pay rent?
Deletewell in this case you consume the products so you really aren't paying anything
I use to own a large Salon, Barber Shop & Day Spa. I had to buy products to sell to help make income and payroll. How can a company that doesn't have products or services to sell stay in business? If a MLM doesn't have products or services, then it IS a Prymid scheme. ALSO, I had to pay $3,000 a month in rent just to keep the doors open on my Salon & Spa. So. I had employees that offered services and sold products to pay for the rent, lights, AC/HV, insurance, etc. THAT WAS A SCAM! LOL I didn't own it, it owned me!
DeleteSo the landlord is scamming you. hahahahaa
DeleteSo real estate is a scam and landlording is a scam! hahahahaha
get my point/sarcasm
What really annoys me about Usana is that they have so many conflict of interest issues. Which makes me distrust anything they claim. They are funding research at the Linus Pauling Institute. This institute is involved in researching the involvement of micronutrients ie vitamins and minerals in health. So if any of the research is negaive would Usana stop funding? This puts pressure on the researchers as their salaries are dependent on funding. This just not sit well with me.
ReplyDeleteUsana also is proud of is affiliation with medical doctors who promote the products to their patients. Again i see huge conflict of interest here. It is unethical because the doctor is gaining financially and therefore there is a greater chance of them not putting the needs of the patient first. If they were no distributors themselves then it would be a different story. But if my doctor is prescribing me supplements, then getting a yearly commission check from Usana i wouldn't be happy.
FYI, the drugs you use to help you get better.. tylenol and others.. ARE also making money..in fact big margins of profit. So from your logic, that is a big conflict of interest. I know because my relatives worked at merck and she told me if the product/drug doesn't make money, even if it cure cancer, it will not be on the market. How does that sound to you. It's all money. It's hypotheical situation obviously.. .. if it does cure cancer, you will have to pay a premium for it because it will make money.. and drugs companies will make tons of it.
DeleteMerck's net sales for 2014 were $42.2 billion. Their cost of goods sold was 16.7 billion (39.7% of sales). Their SG&A cost was $11.6 billion (27.5% of sales). Their Research and Development was $7.1 billion (17% of sales). Their Income before taxes from sales was $5.9 billion (14% of sales).
DeleteUSANA's net sales for 2014 was $790 million. Their cost of goods sold was $140 million (17.8% of sales). Their SG&A cost including distributor incentives was $528 million (66.8% of sales). Their Research and Development (MY FAVORITE) was a measly $5.1 million (only 0.7% of sales). Their income before taxes was $115 million (14.6% of sales)
You wrote “the drugs you use to help you get better.. tylenol and others.. ARE also making money..in fact big margins of profit.”
Big margins of profit????? Both Merck and USANA made the same margins of income from sales, which was 14%. These percentages are typical in the marketplace. What I do find insulting is USANA making the statement “scientific research is at the heart of every product we offer ”, yet only devote less than 1% of the sales to research and development.
You wrote “So from your logic, that is a big conflict of interest.”
No, you have it all wrong. My qualm with USANA is that they are a pyramid scheme where 99% of its distributors never make a profit and the product is extremely overpriced so USANA can fund the pyramid scheme. It's these distributors at the top of the pyramid scheme that make all the money. They as a whole make a lot more than USANA themselves do. They do so by having tens of thousands of distributors in their downline who are all forced to purchase product if they want to receive commission from their group sales volume or preferred customer's purchases. Gold Directors up to Star Diamond Directors did not get where they are by retailing product or even signing up preferred customers. They got their by selling a business opportunity. They got there by deceiving others by presenting misleading information and odds of success. Do you think a single one of them told the person they were recruiting that 99% of people who join do not make a profit, or that 80% of distributors drop out within their first year, or that most people who have ever purchased USANA product no longer do so?
So you need to first understand my logic. It isn't and has never been about USANA's profits. It has about the fact they are running a pyramid scheme. Merck is not running a pyramid scheme.
You wrote “I know because my relatives worked at Merck and she told me if the product/drug doesn't make money, even if it cure cancer, it will not be on the market. How does that sound to you. It's all money. It's hypotheical situation obviously.. .. if it does cure cancer, you will have to pay a premium for it because it will make money.. and drugs companies will make tons of it.”
That is an unrealistic hypothetical. A proven cure for cancer would be the greatest discovery in human history. I don't think a drug company would have to worry about whether or not they would be able to make money on it...
If a drug that cures cancer for one patient costs Merck $10 to produce, and Merck sells it for $25, are you going to complain if 14% of that sale went toward their profits?
What about if that same drug costs Merck $1000 to produce, and sells for $2500, is it somehow criminal of Merck to make a 14% profit on it?
If you don't like the price of the drugs, blame the insurance companies, lawyers, government, and hospitals because they are the ones jacking the price up unnecessarily.
So I work at this fast food restaurant, and the boss there is a Usana Distributor and he is ballin out of control. He has 2 nice cars and is looking into a 7 digit house. Thats how good Usana is at SCAMMING people . He said he only used 2 years to develop this whole thing he is now. I have to admit, he is smart and dedicated, just the whole programs a scam. Think about it, when Usana people present.. they don't present medicine, they present the whole idea of being easy rich by just recruiting 2 people. *SNIFF SNIFF* Pyramid Scheme alert.
ReplyDeleteI had 2 friends who were in this and tried to get me in it a year ago. They said it was the best plan and would work out and get rich. 1.5 years later, today, one works a club and the other working at clothing store in the mall.
Does it work? Yeah, if you're dedicated and can withstand the fact that its a scam, but still go scam ur friends and family.
Is it a scam? Legally, No. But use your ****ing common sense. Presenting to people about your opportunity to be rich easy, but have to take these vitamins with you?
Will you get rich? I saw my boss, and yes he is rich not because of his store, but because of Usana, his store makes peanuts compared to his chain of patients that got scammed.
Why it works? People are people, want to get out of 9-5 , the boring job, wants to chill and do jack shit. Here you go, recruit 2 people, as long as those 2 people down you recruit all day long, you'll be balling in no time. And THOSE people under the first 2 u recruit get some more "patients", easy millionarire dollar house earned. I'm serious, it works if you got the most 2 broadest network friends and outgoing and easily can call out 100 people to talk to, ... u prob got the biggest headstart.
Time until rich mode:
The game never stops, you gotta keep recruiting to be rich, but as long as your chain of people generate lots of new recruits, then you win.
This usana guy actually personally presented to me. My favourite line
"Treat it as a game, not a business"
My head goes, yea its a scam.
-Geechong
To Geechong:
ReplyDeleteToo bad your friends didn't seem to be meant to do MLM.
One thing is that your friends had misled you. If all they told you was how EASY it is to succeed in USANA, they're lying. They're brainwashing you.
To be honest, I wouldn't say USANA is easy. No MLM is easy to do, especially in the beginning.
A MLM can be easy or difficult depending on how the person does the job, and this includes USANA. To say outright that USANA can give easy money is midleading.
======================
To USANA Watch Dog:
About the comparative guide, you've done a good job in revealing the connection between its author and USANA.
I wouldn't doubt the information.
However, what you've proven are just these:
- The author has something to do with USANA.
- The book MIGHT be bias.
What you have NOT proven are these:
- The book IS bias.
- The data in the book ARE false.
They are two different groups of things. Revealing the connection between the author and USANA doesn't automatically mean that the book is definitely bias, false, and wrong. You'll need another independent group of scientists to test the products listed in it to see if the data are false.
I went to one of those conventions for Usana and got sucked into it 2 days ago. The whole company sounded very sketchy, but to be respectful to my friend who brought me there, I filled out an application. Lucky, I told them that I didn't have a credit card, but I gave them my social security number and signed that thing without reading it. I totally regret signing that thing.It was totally my bad. I knew about the pyramid scheme and I had a hunch that Usana was one of them, but I tried not to believe it. So, I'm stuck in this stupid situation. I want out of Usana, but I don't know how to get out of it, but looking at the circumstances, I don't have the will to do it. Since the person who is "mentoring" me started out poor and ended up supporting her family and herself with the money she earned with Usana in a matter of years, I'm afraid that when I say that I want out, she will put that to try to convince me. I, in the same circumstance, do not have the money to support my family and my family needs it.
ReplyDeleteI really want to get out of this company, but I want to do that by not communicating with people face to face. The people there are very nice and welcoming and they seem to be unaware of the scheme that they are in. I seriously do not want to be in it and I do not want to be part of it.
HELP ME?!!!
Would they try to bill me if I ignore them? They expect money and I certainly do not want my money to go to them. As you can see, I applied and I don't know what they will do if I try to ignore and avoid them. I'm scared as hell. My brothers know better than me and my parents don't approve of it and I should have known better. I'm so stupid. I've been searching around a lot in the internet on how to get out of Usana.
ReplyDeleteYou don't have to let your upline know if you'd like to quit. Just call the head office in your region that you would like to cancel your associate/preffered customer status.
Deletehttp://www.usana.com/dotCom/company/contact
Do it soon before they charged your hard earn money for autoship.
To the Anonymous person: You responded two years too late:)
DeleteI can't believe I missed this posting and feel bad about not responding sooner. I'm sure they are fine though. They won't charge her anything because she would first have to purchase the starter kit before she can purchase product as a distributor. However, their friend could potentially have signed her/him up as a preferred customer on autoship. But I doubt that.
She/He could also have had their identity stolen by giving out their social security number. Message for my readers: Don't ever give out your social security number unless you have already been accepted for a job position and is required for tax purposes. Don't ever give it out over the phone to anyone.
USANA is an opportunity, but it is not for everyone. USANA is a business, just like any other business. You have to work hard to make it work. When you fail in your business, please don't complaint others. Loosers always complaint that it all other people's fault. Success people always think and fix the problem and make it work and then move forward. Wish all of you to be the best.
ReplyDeleteOh gosh! I've heard the same script from every USANA's associate or upline that tries to recruit me and that's why I haven't been convinced to do that. On my opinion it's the most childish tought I've heard on my life. I've been educate to being responsible for my acts and that scripts only passes the guilty of failure to someone else. I guess that " business not for everyone " makes people get in because they don't want to be like the rest. I wanted to vitamin my kids and was reluctant to buy the kiddie pharmaton because they are expensive. Usana animals are cheaper so I buy it, my kids liked it and I become a consumer but when Usana associates saw me as a potential recruiter they don't stop until I become sarcastic, ironic and so. They never accepted a polite "NO, thank you. I just want to be consumer ( and not for all overpriced products)". People like you must be a very desperate person, even more that whom tries to praise their bosses to keep his job on crisis moments.
Delete"USANA is not for everyone. You have to work hard to make it work."
DeleteGuess what, this same old phrase is used to provoke recruiters in the same way as below:
Bully: So, you're gonna fight me?
Gullible person: No, it's going to put me into trouble.
Bully: Why, are you scared? Or maybe you're too weak?
Gullible person: *provoked* Why you... *fights the bully*
This was taught to me during those trainings in my USANA days. Provoke the person a.k.a. "Unleash their potential by challenging them". Gullible people would only believe in that, they suddenly believe that joining USANA would make them be one of the "few successful people."
True, it's not for everyone. But not for me; I do not want to trick people anymore.
Usana is more like a sales job than a business but you're right, successful people always fix the problem and move forward and that's why tons of Usana reps are leaving Usana to join Ariix. LOL.
ReplyDeleteWell you are entitled to your own opinion... but I guess you can't generalize all... like in our case, my husband and i joined Usana because we really believe in the products. We can attest for ourselves that it really improved our health. We are more active on retailing the products because we like to share how good they really are. We are not so concerned about the commission from recruiting downlines, because we are not comfortable doing that. We earn extra income on retail sales, and we love doing it! Our autoship products are even not enough to supply all our orders. We have to reorder often in a month because we have a lot of repeat customers. This alone shows how good the products are that people are willing to pay even if it cost higher than other supplements. If people want to earn extra income, only then we introduce the business to them. No hypes, we tell them straight what the business is and that it is not for everyone. If they need to earn extra, they can retail the products. If they want to earn commission then they can be active in recruiting, only if they want to do it. We joined Usana because instead of stretching our budget so tightly, why not find other means of earning extra income. We have to thank Usana for the great products they do. As long as we are doing ethical and legal business, I do not see any scam in it. :-)
ReplyDeleteFrom my personal experience, I have a family friend who hooked my mother into it. Her husband quit his job as a tour guide to also become a sales rep for USANA. At that point, i think you really stop caring about being friends, and really about how your going to pawn off USANA products in a timely fashion.
ReplyDeleteNow my best mate's girlfriend works for them. She is currently broke with all the time in the world.
Guess this usana excitement is the thing of dreams
Hi Watchdog
ReplyDeleteIt's very interesting to me that you are wanting people to participate in this.
How can anybody take you seriously when you state in your blog that you have never participated in an MLM? Are you for real - you are trying to tell Network Marketers all about their world when you have never been in Network Marketing?
Dang man you got dramas!!
I have no problem with Network Marketing when done legitimately. My issue is with Multilevel Marketing, which is a perverted form of network marketing. It is designed as a pyramid scheme to lure people in with the hopes of making money.
DeleteLet me ask you, do someone have to take cocaine to know there are problems with it? Does someone have to take heroin before they can tell others the dangers in it? Multilevel Marketing is not much different.
Several people had tried to recruit me several times. I've notice those people have the same face expressions like a forced smile when attempts to get a "yes, you are so right" when they ask you obvious things like do you want to have money to spent as you wish without work like a salve from someone else?. Jaja, if I join USANA of course I will work to someone else and the pity thing is that person would not do anything else that recruiting me and pass his responsibility to recruit to me, after that, he/she won't move a finger and will receive money from my work. If that is not modern slavery I don't know what it is and please don't come with speeches like " this business is not for everyone" or " you need to share with others". Of course I'm egoist, and that despicable attitude has maintained me away from USANA. In times like this, and people like that (usana's associates), I thank God for not being a weak mind.
ReplyDeleteAnd what about to idolize Robert Kiyosaki? At some point, may ideas are quite practical but I still thinking he is a person who become rich by selling books to people about how get rich. Like usana sells dreams about how to get rich in a short time.
Interesting blog. What if I approach this from a slightly different point of view?
ReplyDeleteI have a well-paying full time job, and I have no intention of quitting it any time soon. However, I am looking into USANA purely as a means of starting my own company with the accompanying tax incentives.
I understand I need to keep my business centre active in order to claim any tax advantages, and I will be on the look out for anyone looking for a nutritional supplement. What I won't be doing is aggressively marketing to my friends and family. So I'm looking at a minimum outlay of ~$2400NZ per year, with the tax advantages off setting a large portion of this (potentially coming close to matching it - best case scenario). In addition, I get a decent quality multi-vitamin. If the business grows, it grows more or less organically. If a make a few extra dollars, great, but I'm not looking to make it my sole source of income.
I'd be interested to hear your thoughts on this?
You can't claim any of the $2400 NZ you spend on keeping your business centers active as part of some tax advantage.. Sorry, but you don't break even. You are at a loss. If you want the vitamins that bad, they are available on Ebay at a much lower price..
DeleteGood Luck!
biggest reason why most associates don't succeed in usana is because they don't put time and effort into the buisness also they want to do this on their own and don't do a team effort if you don't have a strong foundation you won't succeed. also about the pyramid scheme that's a bunch of bullshit
Deletei've had people on the bottom win more then the guy on top and that's because they went and put the effort.
This is the biggest load of shit. Business is what you make it. There's negatives and positives to everything! The person that wrote all this probably just signed up to it. Gave it a run for 5 months and sat playing Call of Duty on the Playstaion. Not talking to anyone etc. Didn't believe in themselves to succeed. You get what you put into everything you twat!
ReplyDeleteThe person who wrote this never joined USANA or any other MLM in the first place. I did more due diligence of research. It was fishy from the moment I was asked to join. The stories about how this company has vitamins that can cure cancer and other diseases. About how the pharmaceutical industry as well as most doctors know about the secret powers of vitamins and don't want the public to know about it. About how big pharma wants people to be sick and only want to prolong their illness so they can profit from it. I listened to how thousands of people are making nice six figure incomes and do it from their home and work leisurely and have so much more time with their children and spouse(s) [Utah?].
DeleteYes, I've heard and read all the hype regarding USANA, their supposed business opportunity, and the vitamin industry, which is no different than the pharmaceutical industry's shenanigans. The two industries wear the same shoes.
Simply eat more fruits and vegetables. Don't waste your money of megadose vitamins sold by snake-oil salespeople. If you are deficient in a specific vitamin or mineral, talk to a real nutritionist that isn't more interested in their own checking account rather than your health. Don't buy vitamins or supplements from doctors, nutritionists, chiropractors, pediatricians, or pharmacists that peddler their own products like many USANA distributors.
So elaborate for the readers what you mean by "You get what you put into everything". I'm still waiting for a USANA distributor to explain on here what all of the Gold Directors or higher did in order to get to where they are. Be blunt about it.
For example: In order to become gold director, you need about 400 distributors purchasing product one week apart from one another. Most people drop out and you will have to keep replacing them. Best way to do this is to run a boiler room. Don't waste your time on preferred customers because they aren't obligated to purchase 100 sales volume points every 28 days. Instead, sell the dream of becoming rich. Show examples of star diamond people and their story about how they happy. Show them pictures of luxury lifestyles. Get them hooked and tell them their upline will help them achieve these goals. RECRUIT THEM. Sell them a professional pack and tell them to purchase THREE business centers because they will become rich faster! You know this is exactly how it is in USANA and only the EX-MEMBERS are brave enough to admit it.
Again, I didn't have to fail to know USANA is a scam. I'm sharing this information on a blog and sister website www.mlmpyramid.com so that others have the opportunity to learn about the dangers before they invest time and money into a pyramid scheme.
Great reading this blog , Now put the work into building your business or go BROKE its 2013 not 1813 ,Usana like many other networking company's are growing World wide , The way we earn money is changing fast , Employment has gone just look around you, self-employment is the way forward, You just got to get started and stop reading blogs from people who have never even tryed it let alone have any understanding of an industry and manily don't want to work , ASK yourself who's paying your house bills this week? NOW GET TO WORK
ReplyDeleteHello blogger,
ReplyDeleteI wanted to point out that your numbers are correct yet your perspective has some flaws. You quote a lot of numbers and statistics and percentages and whatnot, but you don't pay attention to the people who are in the business.
The reason why a lot of people either fail or succeed is determined by the quality of the people, not the quantity.
Sure, anyone can build this business using the scam-mentality, but that would go against the integrity of Usana's direction. If you give me names of those people who utilize Usana's business in an unethical way, I will personally report them to the compliance department. We take everything seriously.
When it comes to the quality of the products, please visit the actual facility and speak to the professional nutritionists. Please contact the doctors and the scientists who have researched the products on their own. Please talk to the professional athletes who consume the products. But most of all, please try the products yourself.
There are no false claims on any Usana product. We are not a pharmaceutical company and we make that clear. Our products are indeed in the PDR, however. We can only give testimonies of the products we take, and we can only use words such as "support, help" and etc. Anyone who makes false claims shouldn't be a Usana associate.
The whole idea that Usana uses a pyramid scheme is false. In fact, the actual idea of a pyramid scheme is to have a bunch of people under you working for you and against each other--the same idea that any 9-5 job has. The difference with Usana is you only need to duplicate your skills and knowledge with two people. Not just anyone, but people who you qualify on your own. Trusting, ethical, servant-minded, etc. The "business" is based on relationship-building. Providing what we have to people who desire something. We don't sell, we offer what is desired.
There is a lot of mentoring that goes on. A lot of teamwork that I haven't seen in other networking companies. Most "new recruits" become rivals with each other because of the "pyramid scheme". In Usana, person A (you) mentor person B and person C (your brother and your sister). Person B mentors person D and E(his girlfriend and his best friend). Person C mentors person F and G(her boyfriend and her best friend). This is entirely on the associate side of the business, disregarding everything else. In other business, it's person A (you) trying to mentor person B, C, D, E, F, G, H, I, etc. all at the same time. There is now conflict of interest, competition and rivalry. Not to mention, it's unreasonable to even attempt to mentor so many people. We can barely even carry two people on our backs.
Speaking on behalf of my team, we are only about helping and sharing. We don't force people, we don't "recruit" people. We share our passion for wellness, and if someone just wants to buy some shampoo, we're extremely happy.
I just want to say, money will always come and go. Attempting to override the laws of money by claiming that it shouldn't take money to make money is illogical. To claim that Usana is a scam is a scam in itself. There are good people within Usana who would sign their names to a binding contract of integrity and compliance, and I'm good friends with some of those people.
Show me a networking business that doesn't top Usana in terms of its business model, its product quality, its worldwide vision for health and wellness, and its quality of associates, and I'll gladly lay down my shield.
In Response to "I wanted to point out that your numbers are correct yet your perspective has some flaws. You quote a lot of numbers and statistics and percentages and whatnot, but you don't pay attention to the people who are in the business."
DeleteThank you for acknowledging that 99% of USANA associates do not make a profit. This means a lot coming from one of USANA's top associates.
In Response to "The reason why a lot of people either fail or succeed is determined by the quality of the people, not the quantity."
So if there are Burger Kings on every street corner in Salt Lake City, Utah and only 1 of them makes a profit, are you going to tell me the remaining Burger Kings failed because of their quality? They would fail because each store might only have a couple customers due to a lack of territorial restrictions that would prevent store locations opening on every street corner. However, USANA takes it several steps further. Their associates already pay a retail price for the product because preferred customers pay the same price. So there is zero profit margin.
BTW, who recruited these failures and who failed at training them? Every single associate USANA parades around on stage at conventions and their literature, that's who. That's of course assuming there was a fair playing field, which there isn't. The fix is in and 99% of distributors will make no profit. This percentage is designed into USANA's compensation plan.
In Response to "Sure, anyone can build this business using the scam-mentality, but that would go against the integrity of Usana's direction. If you give me names of those people who utilize Usana's business in an unethical way, I will personally report them to the compliance department. We take everything seriously."
Denis Waitley lied about receiving a Master's Degree in Organizational Development from the Naval Post Graduate School in Monterey, California. Denis also claims to have received a Ph.D. in Human Behavior from La Jolla University. Yet the University's documents do not show him as ever attending the school. Denis Waitley retired from USANA's board of directors after this revelation was disclosed. As punishment, USANA transitioned him into the role of Chairman of Athletic Advisory Council. Sure, USANA takes things seriously.
USANA's ex-CFO Gil Fuller claimed to be a CPA while working many years for USANA . However, he let his license lapse before ever joining USANA and was never a CPA while employed to USANA. USANA stood behind Gil Fuller and claimed it was simply a mis-speak. Sure, USANA takes things seriously.
It has been shown that thousands upon thousands of USANA distributors live in mainland China. This violates several laws and violates USANA's own policies. USANA has not taken action against this fraud and instead has done everything they can to help facilitate the illegal recruiting be allowing thousands of distributors to all share the same home address. Sure, USANA takes things seriously.
Now how big is USANA's compliance department because I don't think they could handle several hundred thousands distributors in their office all at the same time. When the average yearly income for USANA associates is little over $600 and selling business opportunities to people when you know that 99% of associates do not even make a profit, is very unethical.
In Response to "When it comes to the quality of the products, please visit the actual facility and speak to the professional nutritionists. Please contact the doctors and the scientists who have researched the products on their own. Please talk to the professional athletes who consume the products. But most of all, please try the products yourself."
DeleteSo what? I've seen production lines and know that you can go to almost any manufacturer in the world and be awed at the technological marvel that goes into producing/manufacturing/assembling their product. I wouldn't expect USANA to be any different.
Please provide me a list of professional nutritionists, scientists, doctors, chiropractors, and pharmacists that recommend USANA who are not distributors themselves (or their spouse). Provide me a list of athletes who are consuming USANA products who are not “sponsored” by USANA (free product in return for name recognition) or associates themselves.
In Response to "There are no false claims on any Usana product. We are not a pharmaceutical company and we make that clear. Our products are indeed in the PDR, however. We can only give testimonies of the products we take, and we can only use words such as "support, help" and etc. Anyone who makes false claims shouldn't be a Usana associate.
USANA has a team of lawyers that ensure USANA does not make any claims that would get them in trouble with the FDA. The false claims are made orally and parroted by the distributors.
So what if your products are in the PDR? USANA paid to have it listed in the PDR for Drugs rather than the PDR for Supplements and Herbs. The PDR offers no credibility toward any product listed in the book. Besides, why would a doctor look for a nutritional supplement in the PDR for drugs when drugs are used to “diagnose, treat, cure, or prevent” illnesses and diseases unless USANA is trying to portray their products as being used in such cases?
In Response to "The whole idea that Usana uses a pyramid scheme is false. In fact, the actual idea of a pyramid scheme is to have a bunch of people under you working for you and against each other--the same idea that any 9-5 job has. The difference with Usana is you only need to duplicate your skills and knowledge with two people. Not just anyone, but people who you qualify on your own. Trusting, ethical, servant-minded, etc. The "business" is based on relationship-building. Providing what we have to people who desire something. We don't sell, we offer what is desired.
USANA associates compete with each other every day as they hunt for more victims to recruit into their downlines. There is no “team building” in USANA. There is only “purchase pressure”. Associates are constantly pressured by their upline to buy more product in order for their business to be successful. New associates are told they must become “prosumers” (as opposed to CONsumers) and use the products yourself if you want to be serious about selling it to others. It is all a bunch of malarkey and a way to justify the required personal product purchases in order to qualify for commission.
You claim USANA's business opportunity is based on “relationship-building”. However, only 10 people out of every 1000 USANA associates makes a profit. Where did the money come from for those 10 USANA associates who made a profit? From the 990 remaining USANA associates who failed. You call that Team-Work. I call that a pyramid scheme.
In Response to "There is a lot of mentoring that goes on. A lot of teamwork that I haven't seen in other networking companies. Most "new recruits" become rivals with each other because of the "pyramid scheme". In Usana, person A (you) mentor person B and person C (your brother and your sister). Person B mentors person D and E(his girlfriend and his best friend). Person C mentors person F and G(her boyfriend and her best friend). This is entirely on the associate side of the business, disregarding everything else. In other business, it's person A (you) trying to mentor person B, C, D, E, F, G, H, I, etc. all at the same time. There is now conflict of interest, competition and rivalry. Not to mention, it's unreasonable to even attempt to mentor so many people. We can barely even carry two people on our backs."
DeleteYou have a very warped view of how businesses operate. Real businesses have structure where various roles are required for success. You might have a team of engineers, production, accounting, sales, etc... Heck, lets use USANA corporate for example. Do you think USANA employees have conflicts of interest, competition and rivalries?
So you speak of mentoring only two people in your downline. That's certainly going well isn't it. Remember, 99% of USANA associates make no profit. The entire organization is stretched too thin and most areas are saturated. USANA associates can't find any customers to sell their product to because the boiler rooms have already come and gone. Everyone in your neighborhood has already been hit up on.
I love it. You even use the example of recruiting your family members, and their friends, and their friend's friends. Why stop there. Recruit your minister, the congregation, some non-profit groups, charities, schools, etc... Don't forget your neighbors!
In Response to "Speaking on behalf of my team, we are only about helping and sharing. We don't force people, we don't "recruit" people. We share our passion for wellness, and if someone just wants to buy some shampoo, we're extremely happy."
If you sign someone up as an associate, then you “recruit” people.
In Response to "I just want to say, money will always come and go. Attempting to override the laws of money by claiming that it shouldn't take money to make money is illogical. To claim that Usana is a scam is a scam in itself. There are good people within Usana who would sign their names to a binding contract of integrity and compliance, and I'm good friends with some of those people."
DeleteMoney does not always come and go. In the case of 99% of USANA associates the money just “goes” because they never make a profit. Law of money requires you to spend money in order to make money? What kind of mumbo jumbo garbligook are you talking about?
USANA requires their associates to personally purchase over $1420 in product each year just to qualify for commission. USANA refuses to call this “inventory purchasing”, but that is exactly what it is. It's these required purchases to participate in the venture that fund the majority of USANA's net sales and distributor incentives, which the FTC has deemed indicative of an illegal pyramid scheme. In this case, USANA forces its distributors to spend money in order to make money.
Here's how it could be done without having to spend money to make money. Simply get rid of the required personal purchase to be commission qualified. This way, an associate can in theory only have to pay the $29.95 enrollment fee (starter kit) and be on their way to collecting commission from preferred customers they sign up. Imagine recruiting 20 preferred customers who each purchase 50 volume points worth of product every 4 weeks. That's 1000 points from your preferred customers which converts to $100 in commission, which you would receive 13 times in one year. Imagine getting $1300 in commission and only having to have spent the $29.95 enrollment fee.
Instead, USANA currently requires the associate to personally spend at least $1420 in product and $150 in shipping charges. So instead of making $1300 from your 20 preferred customers, you are instead $270 in the negative.
Welcome to the USANA Scam.
In Response to "Show me a networking business that doesn't top Usana in terms of its business model, its product quality, its worldwide vision for health and wellness, and its quality of associates, and I'll gladly lay down my shield.
DeleteTop USANA's business model?
Every Multilevel Marketing company runs the same type of scam. The companies make the majority of their net sales from the participation fees (required personal purchases in USANA's case). The majority of distributor incentives (commissions and bonuses) go to less than 1% of its distributors. The products are over priced in order to fund the commissions and bonuses that primarily goes to less than 1% of the participants. These top 1% of sales reps make their fortunes off the backs of the 99% of sales reps that never make a profit (the failures).
Top USANA's product quality?
Every manufacturer shows their highlights. They all have something that shows they are the top of their industry. They each have their marketing pitches. They each have their list of scientists and nutritionists that claim their products are number one. However, not a single supplement manufacturer has shown to have a product that does anything better than simply eating healthy. USANA supplements are not magic pills. They do not cure cancer or prevent heart attacks. They are food supplements. What do you think a “quality” vitamin is? You think having exactly 100% of the ingredients that the label states is “quality”? That's called a marketing gimmick for something that has no benefit. It's a tactic used to try and justify their outrageously high prices which are only high to fund the pyramid scheme. Over 40% of the price you pay for USANA vitamins goes toward distributor incentives. Less than 1% goes toward research and development.
Top USANA's World Wide Vision for Health and Wellness?
USANA's prices are so expensive that the majority of the world, especially areas that are vitamin deficient the most, cannot afford USANA's products. Luckily USANA associates donate millions of dollars worth of vitamins to these areas. BTW, doesn't every vitamin manufacturer have a worldwide vision for health and wellness? What should be asked is how many vitamin manufacturers use a pyramid scheme to sell the majority of their products through?
Top USANA's Quality of Associates?
Which associates are you talking about? The 99% that don't make a profit or the 1% that do make a profit? In regards to the 1% that profit. How can these associates be considered “quality”? They have failed at training and mentoring their downline since all they primarily recruit are failures. But to them it doesn't matter as long as their downline recruits activate their business center(s) by purchasing hundreds of dollars. In many cases they convince their recruit to purchase a professional enrollment package for $1200. I don't consider anyone in USANA who scams people into joining a pyramid scheme a quality person. I consider them a con artist.
For the record, I don't consider anyone who loses money in USANA a “failure”. Only USANA and their elite associates consider their downline associates as “failures”. I consider someone who loses money in USANA a “victim” and strongly encourage them to file a complaint with the FTC.
I actually made my business from recruiting product users only. Honestly, I wasn't feeling up for the challenge to build a team because I'm not sure how to lead people or train people. But no matter, I was still making small cheques each month.
ReplyDeleteDid it pay off the $120 per 28 days? nope but it did take off $50 each time so I'm pretty much using my products for half price.
I like how you're imposing a negative connotation each time with the word "FORCE" in how each USANA Associate is FORCED into buying $120 or $500 of products every 4 weeks to continue their business eligibility.....but what if I told you that they use the products because the products are helping them a lot that they want to keep taking it.
For me, it tremendously helped my immune system and allergies. I went from 1 pill of reactine a day (sometimes 2 pills) almost every day from February to August (because flowers are everywhere in Vancouver) to NONE in just 2 months. This is the 2nd year that I haven't touched any antihistamines, so I'd say USANA had a lot to do with that. Do I feel forced to buy the products? NO WAY!!! I love the products!
But I have to say....you're definitely right about the "FORCE" part. There are still a lot of Associates who just want to make the money and mindlessly sweet-talk others into joining USANA and suddenly bombards their clients with monthly commitments.....There are always bad eggs in every business. In those cases, yes I agree with you...they have been unrightly forced.
However, I assure you that there are a lot of Associates out there (if not most, at least in Vancouver) have their client-s best interest in mind: who want to help their clients' health first (Sharing Dr. Wentz's vision).
To be honest, if you don't like the produts, then there's no point for you to continue the business. For people who don't like the products, yes they'll definitely feel forced. For people who loved to use the products to improve their health and medical conditions, they are all willing to buy them like a household necessity! Let's chat more about this! I love to talk to you more! You can email me anytime!
Chow,
DeleteUSANA distributors are forced to personally purchase the product if they want to be commission qualified and not lose any group sales volume they have built up.
Even USANA's own language stated it. Back in 2011 and prior, USANA stated the following in their SEC 10K filings:
"To be eligible to earn commissions, an Associate must purchase a certain amount of product each month ("Qualifying Purchases"), which they may resell to consumers or use personally."
After I kept pointing this out, USANA changed their wording in SEC 10K filings after 2011. The newer language states:
"To be eligible to earn commissions, an Associate must sell a certain amount of product each month ("Qualifying Sales"). Qualifying Sales may include product that the Associates use personally or that they resell to consumers."
The newer statement doesn't say that the associates must purchase product any more, but changed it to must sell, and follows it up with "use personally" or "resell". The two SEC filing quotes mean the same thing because if you pay attention to the term "RESELL", that implies that the associate already personally purchased the product.
Therefore, USANA requires its associates who want to participate in the compensation plan and be eligible for commissions and bonues to personally “purchase" at least 100 volume points worth of product every 28 Days (13 times a year, not 12 as the SEC filings claims) which comes out to about $112 (not including shipping).
So you, Chow, are FORCED to purchase about $112 just so you can receive a $50 commission check from your preferred customer's purchases. (This is why 99% of associates do not make a profit)
Now 45% of the price you pay for the product goes to paying commissions, which only let less than 1% of associates profit from (Gold Directors and up). Now say we did away with the USANA pyramid scheme and made it actually achievable for all 100% of associates who join to actually make a profit. Get rid of the "MultiLevel" portion of the model.
If nobody made a commission and relied solely on product markup, then you would be able to get a $112 HealthPak for only $61.60, which you can then mark up 40%, retail it for $86.60, and collect a $25 profit margin. In this scenario you would only need to resell two HealthPaks to make $50. Not only that, but YOU as the distributor paying are paying only $61.60 for the same thing you were previously paying $112. In the end, rather than losing $62 every 28 days, you would only be out $11.60!
But let's not stop there! For you to currently receive about $50 every cycle from commission from Preferred Customers, you would have to have your preferred customers purchasing 500 volume points worth of product every 28 days. If we use the Healthpak in this example, this means you sold roughly 5 healthpaks (let's forget about the fact the left and right leg has to be balanced). Wow, you sold $560 worth of Healthpaks but only made $50 worth of commissions for it. That sucks!
Now let's see how this could have worked if USANA wasn't running a MLM pyramid scheme. You could have sold the five healthpaks to the same people for $86.60 each, and make $250 in profit margin! So now instead of losing $806 every year like you are currently doing, you could be making $2449.20 every year!
Instead, you like most other USANA associates were conned into a pyramid scheme where the money you should be making is going into the pockets of a couple thousand select individuals at the top of the pyramid scheme. This is why 99% will never be able to make a profit – the business model is designed to fail them. If USANA wasn't a pyramid scheme, then 100% of the associates would be able to make a profit.
And BTW, USANA themselves would be making the same amount of net sales using my model. The products cost as much as they do not due to any product quality, but due to running and funding a pyramid scheme.
I don't know of any MLM that does not have a minimum order requirement, Melaleuca, Advocare, etc. and some form of commission scheme. Not sure I would call it a scam though.
ReplyDelete