How is USANA a Pyramid Scheme?
In short, I believe USANA Health Sciences, Inc. is a pyramid scheme because associates can recruit an endless chain of new associates into a downline and are paid commission from the required product purchases made by each of the associates in the downline. Retailing USANA's products are unachievable due to the associates's exorbitant cost for the products. USANA associates resort to recruiting more sales representatives as their primary focus instead of retailing the product for a profit margin. The product is overpriced in order to fund the top recruiters in the pyramid scheme. As a result, 99% of USANA distributors never make a profit and lose a lot of their time and money.
Required Product Purchases
The following is a statement from USANA's SEC filings regarding the requirement for associates to purchase product:
"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. Associates do not earn commissions on these Qualifying Purchases. Associates only earn commissions on the purchase of products by Associates in their down-line organization and Preferred Customers." - USANA's 10-K SEC Filing
First of all, the SEC Filing states that a certain amount product must be purchased each month, which is false. A certain amount of product must be purchased every 4 weeks, which happens 13 times a year instead of 12. USANA calls the amount of products associates are required to purchase as the "Personal Sales Volume" (PSV). It is very interesting that USANA chose the term "Personal Sales Volume" when in fact it is a "Personal Purchase Volume". The upline associates receive commission from the associate that makes these required purchases even in the product is never retailed to a customer. However, if the associate chooses to retail the product, that associate is not paid commission on the sale. Because the product is over priced, retailing for a profit margin is practically unheard of. What is actually happening here is that every associate is required to purchase about $110 worth of inventory every four weeks (13 times a year) and those inventory purchases pay commission to the associates who joined earlier.
What was left out of the SEC filing are the consequences of failing to purchase a certain amount of product every 4 weeks.
"If, at any time, an Associate’s PSV falls below the minimum requirement to remain active, the Associate will no longer be eligible for commission checks or bonuses or to advance in rank. The Associate will also lose any Carryover Volume, and he or she will not carry over any volume until re-activating the BC(s). The Carryover Volume will start again at zero." - USANA's Ask Andy
This rule threatens associates to continue purchasing inventory. A real business would not have such ridiculous hoops to jump through. Put it this way, if an associate were to sign up 10,000 preferred customers who purchase product on a regular basis, this associate will not be paid a single penny for their work unless the associate purchases $110 worth of inventory every 28 days. Why should a USANA associate be forced to purchase their own product if they don't need to? USANA would collapse if they did not force their distributors to purchase product every four weeks.
Recruiting Associates Instead of Retailing Product
Associates can make far more money by selling the dream of becoming rich rather than selling USANA's vitamins or skincare products. In fact, as long as you sell the dream, the product sells itself!
Costs USANA associates $14.95 and retails for $17.94.
Each bottle Contains 56 tablets and each tablet contains 2 mg of melatonin.
So USANA's melatonin product costs associates 13.3 cents per milligram.
Most melatonin products retail for less than 3 cents per milligram - See for yourself!
All of USANA's products are overpriced like the above example!
However, when taking all of USANA's perks into consideration, USANA associates can potentially receive $20 in commission every 28 days from each associate in their downline simply from the required product purchases! Of course, what gets left out of their promotional material are the vast amounts of rules that prevent most all associates from making a dime. This is why is pays to recruit instead of retailing USANA's products.
Endless Recruiting is How it Works
USANA knows that most associates drop out soon after they join and has developed a means to extract most of the money from the associate before they drop out. They do this two different ways. 1) in order for new associates to initially activate their business center and be eligible to collect commission, the associate must personally purchase about $220 worth of product. 2) Alternatively, a new associate can purchase one of four special enrollment packages ranging from $300 to $1250, which contains product and recruiting material.
In 2004, the Federal Trade Commission wrote a letter in response to a question the Direct Selling Association's president Neil H. Offen asked. The letter is titled "Staff Advisory Opinion - Pyramid Scheme Analysis". Mr. Offen requested a staff advisory opinion regarding the FTC's analysis of pyramid schemes.The response does not bode well for Multilevel Marketing companies like USANA. I recommend reading the memo for yourself.
According to this quote, simply because USANA has a product to market does not mean render the company legitimate. It goes on to explain that Modern Pyramid Schemes require a certain level of monthly purchases to qualify for commission and these schemes call the required purchases a "sale of goods". The majority of USANA's commissions paid out comes primarily from the associate's required inventory purchases. If an MLM company makes the majority of their net revenues from the payments made by distributors to qualify for commissions, then the company is an Illegal Pyramid Scheme.
Conclusion
Based on the information I have provided above, I believe that USANA conducts an illegal pyramid scheme. 99% of USANA distributors lose money due to this scam. The FTC needs to investigate USANA and put an end to the fraud. USANA currently operates this pyramid scheme in Australia, New Zealand, Canada, the United Kingdom, the Netherlands, Hong Kong, Japan, Taiwan, Korea, Singapore, Mexico, Malaysia, Philippines, and the United States. I recommend any prospecting distributor from these countries to consider what I have written above and do your own research before making a decision whether to join or not.
What Does The FTC Say About MLM and Pyramid Schemes?
"A multi-level compensation system funded primarily by such non-incidental revenues does not depend on continual recruitment of new participants, and therefore, does not guarantee financial failure for the majority of participants. In contrast, a multi-level compensation system funded primarily by payments made for the right to participate in the venture is an illegal pyramid scheme." (My Emphasis in Bold) - FTC Memo
USANA makes most of their net revenues from the money distributors pay in order to participate in the business opportunity. According to FTC's statement, it is very likely USANA is conducting an illegal pyramid scheme. 89% of USANA’s net revenue comes from distributors who purchase product and services from USANA.
"The Commission’s recent cases, however, demonstrate that the sale of goods and service; alone does not necessarily render a multi-level system legitimate. Modem 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. While the sale of goods and services nominally generates all commissions in a system primarily funded by such purchases, in fact, those commissions are funded by purchases made to obtain the right to participate in the scheme. Each individual who profits, therefore, does so primarily from the payments of others who are themselves making payments in order to obtain their own profit. As discussed above, such a plan is little more than a transfer scheme, dooming the vast majority of participants to financial failure." (My Emphasis in Bold) - FTC Memo
According to this quote, simply because USANA has a product to market does not mean render the company legitimate. It goes on to explain that Modern Pyramid Schemes require a certain level of monthly purchases to qualify for commission and these schemes call the required purchases a "sale of goods". The majority of USANA's commissions paid out comes primarily from the associate's required inventory purchases. If an MLM company makes the majority of their net revenues from the payments made by distributors to qualify for commissions, then the company is an Illegal Pyramid Scheme.
Conclusion
Based on the information I have provided above, I believe that USANA conducts an illegal pyramid scheme. 99% of USANA distributors lose money due to this scam. The FTC needs to investigate USANA and put an end to the fraud. USANA currently operates this pyramid scheme in Australia, New Zealand, Canada, the United Kingdom, the Netherlands, Hong Kong, Japan, Taiwan, Korea, Singapore, Mexico, Malaysia, Philippines, and the United States. I recommend any prospecting distributor from these countries to consider what I have written above and do your own research before making a decision whether to join or not.
I don't believe the company itself is a scam. I believe it's a real, legit company. I don't know how good their products are or anything though. However, the real scam is the people who are in...the business people. I personally know people who are on top of usana (diamond, silver, gold, etc directors) and people who are on the bottom of usana (the people who are just starting out). I went to school with these people. I see them on FB. I see their photos and videos. I've asked them questions. I've talked to them. Honestly, it feels like a cult to me. They even tried to get me to join, but I refuse to be part. They told me that training is not about how to help us sell products, but to grow and be a better person. WTH! I thought I was in this to sale the products. They make their money off of people joining, not by selling their products. It feels like my friends are paying to have someone tell them to live a healthy life and be a good person and be positive. They tell you that you don't need schools and why work 40+ hours a week when you can just work parttime and make the same amount. My sister said that her "friends" who are in it are encouraged to only hangout with usana people. To those who are in it or thinking about joining, be prepared to be alienated by your friends and family and make sure you have money because it is not cheap to join. My friend told me, "they said if you buy the products, joining is free." WTF! The only reason why people are making money in this business is because they're screwing other people over. Do you honestly think they really care about you? Ha! They're just really good actors. I might not be a part of it, but I know a lot of people in it and from what I see and what they tell me, it's all a bunch of bullshit lies. You're the one making them rich by believing their lies. These people are shady. I've asked them specific questions and never once got an actual answer. Why would I fork over my hard earn money if you don't tell me anything? Be smart people! We live in the real world. If it's too good to be true, it probably is a scam. I just wish my friends are smart enough to not listen to their brainwashing lies. Sorry if I'm all over the place.
ReplyDeleteYou wrote pretty much how most people feel about MLM companies after seeing people they know get screwed by them. MLMs are culprits perpetrating the scheme because the product is guaranteed to be purchased by the distributors and they set the compensation plan up in such a way that it is mathematically impossible to succeed except for a very very small percentage of participants; about 1%!
ReplyDeleteThe way USANA distributors act is very cult-like. In fact, new distributors usually go to weekend long training seminars that spend the time brainwashing the new distributors. USANA is essentially a religious cult with Myron Wentz as the leader. They teach people to never listen to negativity and the "Believe" they will make money. They have their distributors and prospecting distributors watch "The Secret", which is cult material teaching about some "Law of Attraction". It is a very serious problem and can financially devastate someone. It will lead to depression as the individual blames themself for their failure. Upline members constantly tell new distributors that only quitters quit and as long as they work the system they will make money and the only way someone can fail is that they don't truly "Believe" they can do it.
I Hope your friends don't lose all their money.
"members constantly tell new distributors that only quitters quit and as long as they work the system they will make money and the only way someone can fail is that they don't truly "Believe" they can do it." - Any psychiatrist will tell you that if you do not have a belief in what you are doing, you will be bound to fail at it!DUH!
Delete"USANA is essentially a religious cult with Myron Wentz as the leader." What a load of codswallop! USANA has nothing to do with any religions, real or imagined! You have obviously never been to any training!
"They teach people to never listen to negativity" - and this is a BAD thing?!! What planet are you on? If you listen to negative people, you will become negative too - simple psychology!You must be a real hit at a party!
I very recently joined USANA as an extremely skeptical associate. The religious cult feeling is very real. So far they have not talked about the product. They say that's the easy part. They mostly talk about personal development and belief in the business. I might be going to their convention this next week. If you want, I can update you on how things go.
DeleteA lot of those meetings/training along with the convention is about belief building, aka, brainwashing. The more you expose yourself to their way of thinking, the more you will believe the "facts" that they give you even if it doesn't make logical sense.
DeleteThis is why most of the Usana reps who comment here give the same ridiculous arguments. What they say is just passed down from their uplines and not a result of their own thinking. To them, since everyone around them (in Usana) thinks the same, what they're saying must be right.
However, to those of us not stuck in that mode of thinking, we see the obvious truth and are sometimes baffled, at least I am, how illogical their statements are and wonder if they've even taken the time to think about what they are stating.
But I guess this is the same situation of trying to tell a cult member they're in a cult. They just won't believe you regardless of the evidence you give them. To them, most of the people they regularly associate with (other cult members) agrees with them so it has to be right. That many people can't possibly be wrong.
Anyway, have fun at the convention. I'm wondering if you'll come back to tell us that we haters have it all wrong and that Usana is the real deal, everyone is super nice, and that you'll show us by becoming the next millionaire. If you do, Usana convention mission, accomplished.
All my points from above and below are my own personal experience with these associates.
ReplyDeleteI seriously dislike these people. They only make money because they screw other people over. I was told that they tell people NOT to go to school because school is pointless. They said that if you just grow and take down this wall you have, then you'll be successful. They tell people that you don't have to work a 9-5 job to make money and you can retire in your 20s and help out your parents. While it's not a get rich quick scheme, it's still a clever scheme. They're slowly draining your money. Yeah, you make some, but how much did you fork out to get there?
There's training every weekend actually. Even for people who can't make it, they have the training filmed and posted on their portal or whatever. They have conference calls and they take these people out and they go to starbucks and have these little meetings in their business suit. They're continuously trying to brainwash them.
Seriously though, if you have to pay money or buy products than it's not a job. They claim that working for them is in place of a job or is a part-time job, but what legit job do you know that makes their employee pay them before they make money? Others claim it's not a job, but a way of life. Really people? I can be positive and live healthy and have a real job without investing all my time and money into it.
If they are legit, then why couldn't they answer my questions. All I got was, call me if you want to talk more. Why? Are you afraid of letting the general public know you're a scam?
I see so much shit that they do on facebook and it disgust me. No, I will not thank you taking my money so you can tell me to live a healthy life. I'm sorry, but if I have to pay you money to make money, I rather work 60+ hours a week and knowing that I'm actually going to make money.
One of my friend actually had the balls to ask me to join after I've told her how much I dislike them. She told me that I don't have to do anything and that she will "PAY FOR ME" to join. She only needs X # of people to join before she moves up. These people have found a way to make money...from stupid people like her!
Oh, and if you're in, you can't question them. Whatever they said, it's right. Because if you try to argue back, their "supporters" will gain up on you. There's no winning with them.
You should see how they have taken over facebook with their shit.
A quote from a diamond director, "Its not about making money...its about making history”. Sure it's not. If that's true then why do I see them show off their cars and saying that they retire at 22 and all these other craps.
Also, on scam.com, the only people who have anything good to say are the people who work for the company. I'm sure they get something for going on these sites to say positive things about this company.
ReplyDeleteIt's not a job, it's a business. If you want to run a Starbucks, you'll have to fork up the money to get the franchise.
ReplyDeleteIt's also true that working the 9-5 is a flawed plan in terms of working for someone else your whole life unless you don't mind.
What people need to realize is that a lot of these reps aren't intentionally scamming people. Meaning, in their mind, they think they're helping their friends and family. This is just how brainwashing works. Scamming people and knowing that you're scamming them is one thing, but to truly believe that you're helping other people even if that's not the reality, it's a whole new level of manipulation.
In my opinion, school is overrated, however, I would never advise someone to quit school. Everyone will have different experiences and should find out themselves whether or not spending years of your life going to school is worth it.
And of course it's all about the money. Who would stick around if no money was being made? However, if you want to get people to stick around since most aren't making much money, you need to disguise it as an opportunity to help change the world or to help other people.
The thing about alienating friends who aren't part of the "system" is quite clever. Eventually, you will have a bigger percentage of friends you actually hang out with in the system compared to the ones not in it. This sets you up to be trapped. If you quit, you lose your friends or at least their respect. If you don't, you waste your time or desperately spend it trying to recruit people just so you feel like you belong with the group.
A lot of psychological tactics are being used here and unless you study the science of manipulation and know the psychology of how cults work, it's hard to spot these things even when it's all around you.
At least for many people, the ride is fun until everything comes crashing down.
Whether they think that they're helping their friends and family or not, they still harrass them. If I said, "no", it means "no!" I might try the products, but don't tell me that I need to help my friends and family by joining. Don't con me into joining. And if I tell you I can afford something that's $100, it means I really can't. Don't push it. They're so desperate that they're annoying their friends and family.
ReplyDeleteAnd you're right, school is not for everyone, but it is a good backup plan. Not many people will hire someone without some kind of degree. But hey, if you can get a good job without going to school, more power to ya. I know people who don't go to school and is having a hard time right now. I also know people who went to school and is still having a hard time right now and vice versa. I believe it is all about luck in this economy.
They're so contradicting. One minute it's about helping people. The next, it's about being a millionaire. Then when I called them out on it, they claim that in order to help people, they need to have money. True. BUT you CAN help people without taking their money...if that is really your intention. Don't tell me you're going to help me and then tell me to pay to join and/or buy the products. If you really, truly want to help me, then don't ask for my money. Yeah, nothing is free in this world, but at the very least, don't tell me I can only help my love ones by doing Usana and keep on pushing me when I'd say no. And why do I have to pay to join or buy your products every month? Why can't I just join?
I know people who have been in it for years and quit because it was a waste of time. I know people who are making money, but how many people did they screw over to make money? I know people who are just starting out. I am surrounded by these people. My sister would get phone calls from people she barely knew...asking her for other people's numbers so they can ask them to join or buy something.
They tell you to only be friends with people in Usana because they say that other people who don't like Usana is making your life negative, so wouldn't it be better to hangout with positive people? Usana people welcome everyone with open arms, even the awkward, weird people are accepted. But how much of it is really true? No one can like everyone, that's not possible.
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ReplyDeleteWhenever I would see them out in public in their suits, I always have this eerie feeling. And after they try to talk you into joining, they take you to go see their nice cars and meet the people from above and tell you that this can be you if you're in Usana to help seal the deal. AND it is frown upon to miss a training session (a big no-no)...even if you have a potential candidate. I saw a member said to another member that every training is important and they will never get it back so never miss a session.
I can tell you almost everything about them...just by observing them and talking to them. It's stupid how many people fall into their trap. Usana is absolutely 100% NOT the way of life...unless you like screwing people over so you can be rich, then it can be your way of life, but it is definitely not mine.
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ReplyDeleteCult from Wiki:
1.People are put in physical or emotionally distressing situations;
- yes, by telling them they need x # of people to join in x # of days after they're joined. It is stressful. My friends were desperate and stressing out because of the deadline that they have.
2.Their problems are reduced to one simple explanation, which is repeatedly emphasized;
- Yup, continue to grow and be a better person. Be positive. Look forward, don't look back. Stuff like that. Which isn't a bad thing to do, but it feels off somehow.
3.They receive unconditional love, acceptance, and attention from a charismatic leader or group;
- Yup, they all have mentors. Everyone accepts everyone else. They receieve love and encouragement from their mentors. They all love each other. They all have leaders they look up to and want to see all the time. They have followers!!!!
4.They get a new identity based on the group;
- In a way...they start to call each other Mrs/Miss/Mr. Even people who went to school with each other call each other this Ms. blah, Ms. Blah. Oh, shut up! They told me when I've ask why, that it's a form of respect. Why do you call doctors, Dr. whatever? Well, it's because he went to school, got a degree, and therefore, in my opinion, have earn my respect. What do you do but take my money and harrass me when I say no! It's really not the same. Well, to me, it's not the same.
5.They are subject to entrapment (isolation from friends, relatives and the mainstream culture) and their access to information is severely controlled.[32]
- Not from mainstream culture and they don't control their information, but they are isolated from friends and family who don't believe in what they do. They hangout with only people in that group. They forget their real friendship. They call their friends only to ask them to join or buy. Everything is about Usana. I haven't had a normal conversation with my friends who are in it ever since they've joined. Somehow, somewhere, it call comes back to how great it is and how I am missing out. Blah blah blah!
I find the USANA-cult comments amusing. Isn't this just a culture issue? Its natural for ANY COMPANY to 'train' their employees on having an aligned mindset. To illustrate, working in Philip Morris (a cigarette company) you would have to be 'brainwashed' to think that selling cigarettes is OKAY. That you're really not giving people lung cancer, you're just helping them de-stress at a bad day. It's not about increasing their risk of lung failure, it's about empowering people to be cool and do what they want. I want to know how the sales trainings of Philip Morris is different from that of USANA - (in a macro-sense) of course.
ReplyDeleteMy next query is this: The reason why people consider it 'a new way of life' is because it is UNCONVENTIONAL. The concept of having passive income and working for passive income is life-changing.
I would like to know your opinions on these 2 ideas. Thanks!
WOW! i love this post !! As of the moment, I myself am being brainwashed and pressured into joining this USANA "business". They tell me over and over again on how it would be cool to be a college student while being financially independent and driving to school in a $100,000 dollar car. Well at first i was hooked, and thankfully during the first meeting i snapped out of it and realized, this is way too good to be true. The info they bullshit you with about their products are all biased and only show the bright side of USANA. to make it worse, you have to put your own money in to get started and its just a gamble if not then a SCAM. How stupid does someone have to be in order to give out $1,400 to a group of overly dressed strangers with fake smiles whom promise dreams too good to be true. If they were true, then why isn't everyone doing it?if you ever ask any of them a question, you will NOT get a straight answer. The sad part to me was that after the first meeting, they told me to keep it a SECRET and not to tell ANYONE about it, including my parents!! why is that? well its obvious... they want to sucker people in into this false dream and make them forget about reality.
ReplyDeleteIn response to "The sad part to me was that after the first meeting, they told me to keep it a SECRET and not to tell ANYONE about it, including my parents!! why is that? well its obvious... they want to sucker people in into this false dream and make them forget about reality."
ReplyDeleteYou have touched on a subject I haven't mentioned on here, but have on other forums. One of the tactics distributors are trained to use it to get people to sign the distributor contract before that person has the chance to tell anyone about it. USANA doesn't want you to find out the truth behind their scheme before you join. So they try to get people to sign up right after they hear the spiel.
There was a "business opportunity rule" being proposed by the FTC that would have required MLMs like USANA to have a 7 day waiting period between when the prospect first hears about USANA to the day that prospect can sign the contract. This 7 day period would allow prospects to learn more about the opportunity. Unfortunately, MLMs companies lobbied to have MLMs exempt from the Business Opportunity Rule and won. After several years, the rule has yet to be implemented. But you can see how MLMs greatly rely on "On The Spot" recruiting.
Hope this makes sense.
So there it is - this is the motivation for the "USANA WatchDog" - you failed as a distributor. Of course it must be the company or the direct sales model. It could never be your minimalist sphere of influence and poor communication skills.
DeleteTo the person who wants to know my opinions.
ReplyDeleteYou have to see them in action to know where most people got cult from. Seriously.
I like how you're comparing Usana to a cigarette company. lol! But not all company brainwash you to believe in what they believe in. I've had many jobs in my life and I've never been taught to think a certain way or if I did, it was never enforced. Unless it is like the cigarette company because they're trying to make something that can harm people into something good. I've worked for a marketing company before who fed me the same BS as Usana. The only difference is that I never had to pay for anything or buy anything.
It's a dream for many, many people to live a life that they want, but it's unreal and it's just giving these people false hope. Yeah, it can be accomplish, but it takes a lot of work and there are no shortcuts. The lies Usana tell these people are just a way to get them to buy their products, but mainly to recruit as many people as they can. What they don't tell you is that to be successful, you have to be "trained" to brainwash your friends and family and pretend to care for everyone. It's so fake!
Yup, you ask them a question about the company, they give you a vague answer, especially if you ask them online or in public. I've asked them a lot of questions as a way to find out what they're about before I judge them, but never once did they give me a straight answer. In fact, they thought I was already apart of Usana since I knew what to ask. lol Seriously though, what legit business give you vague answers and expect people to give them money. Only stupid people or people who can afford it will go for it. Also, all these videos they put up online are just the part where they're screaming and cheering, but never anything that's related to their training. What kind of training are they giving these people where it's a secret that you only know about it if you're a part of it. Especially since all they talk about is being a better person, being healthy, growing as a person, etc.
I can't believe they told you not to tell anyone. That alone is shady. I hope you said F*** it and got out of there.
In response to: "I find the USANA-cult comments amusing. Isn't this just a culture issue? Its natural for ANY COMPANY to 'train' their employees on having an aligned mindset. To illustrate, working in Philip Morris (a cigarette company) you would have to be 'brainwashed' to think that selling cigarettes is OKAY..."
ReplyDeletePhilip Morris is in business selling cigarettes. Selling cigarettes is legal. Philip Morris doesn't have to brainwash their employees into believing selling cigarettes is okay because anyone who applied for a job at Philip Morris would already be okay with it. Philip Morris makes most all of their money from selling to customers who choose to use their product.
In response to "I want to know how the sales trainings of Philip Morris is different from that of USANA - (in a macro-sense) of course."
USANA is in business selling distributorships. Recruiting people into a pyramid scheme is illegal. USANA makes most all their money from distributors being forced to purchase their product in order to participate in the pyramid scheme. USANA brainwashes new distributors by telling them not to associate with people who do not support their newly found business opportunity. USANA also brainwashes new distributors by telling them as long as they truly "Believe" they will become rich, then they will become rich. If you don't believe me, watch "The Secret" - href="http://www.myprotools.com/mm5/merchant.mvc?Screen=PROD&Store_Code=USANA&Product_Code=GDVD01010&Category_Code=DVD
In response to "The reason why people consider it 'a new way of life' is because it is UNCONVENTIONAL. The concept of having passive income and working for passive income is life-changing."
There is nothing new about it. However, it is unconventional. Conventional businesses actually sell a product or service to customers. USANA's unconventional business sells business opportunities to prospects who join in hopes to make money. Then, USANA forces these distributors to continually purchase product in order to participate and be eligible to collect commission. What results is a pyramid scheme because the commission paid out was funded primarily from the required purchases made by distributors downline. In the end, the product never gets retailed to customers and distributors are stuck with unsellable product.
USANA's concept of passive income is that as long as everyone participates by being on Autoship to meet their PSV requirements, then there will always be plenty of money to fund the commissions paid out to the distributors at the top of the pyramid scheme. Yes, USANA's passive income is life-changing for everyone. A few make a lot of money while the remaining 99% of people lose money. So life changing indeed...
Passive income? What percentage of people in Usana actually make just $500/month in passive income? Less than 1%? How many would see their income crumble once they stop?
ReplyDeletePassive income is indeed powerful and is the best type of income there is but the funny thing is that it's being promised by people who don't make any.
I kind of want to know. Have anyone in Usana made money from just selling products alone and not recruit people? Does such a people exist...?I'm just curious how much money these people would make if they just sell Usana products alone.
ReplyDeleteCan people come to their presentations/training, but not be apart of it? Like say if I want to come to all their sessions, but not pay for the products or recruit people, would they let me? I mean, they're inspiring people and their quotes are motivating. And if I don't want to call them Mr/Ms/Miss/Mrs, but their name, would they let me? Just curious. I mean, they're all about "helping people" and self-growth right? I want to go hear them train me be a better person. But I'm refusing to spend money. Do you think they would let me? Usana people? Please answer!
ReplyDeleteOf course you can. There are training sessions or presentations in every state and multiple countries every weekend. You are more than welcome. And I promise there is no cult. There are just committed people who believe in getting free from their 8-6 jobs, and building a lifestyle and net worth for their families that permits them to make their own decisions about their destiny.
DeleteHello again,
ReplyDeleteIf USANA is illegal, why does it operate in more than 5 countries? Don't you think they should have been shut down?
"Can people come to their presentations/training, but not be apart of it? Like say if I want to come to all their sessions, but not pay for the products or recruit people, would they let me?"
This would depend on the culture of the USANA office, best way to know is ask a distributor. These motivational speakers would of course give more priority in the following order: Productive distributors > potential distributors > civilians. In the Philippines, it is sometimes allowed, depending on the number of people going to participate. Again, distributors would have the priority.
I don't believe that Usana is illegal. I just think they're really shady and conduct cult-like businesses that brainwash people. And if they are doing something illegal, it doesn't mean that other countries care to waste money to investigate or they're just super smart at covering it up or the authority can't do anything about them. I don't know about that. Just because they do business in other countries doesn't mean that they can't do something illegal. There are plenty of illegal businesses around the world.
ReplyDeleteA company doesn't have to be illegal to be a waste of time and money. You can have a legit company where very few people make money from their "opportunity".
ReplyDeleteJust look at their products. Very few people can actually go out and sell these vitamins at those high prices. For this reason, the company needs to recruit people to buy the products in order to make money. Of course, the only reason why people would buy the high priced vitamins is because of the lure of financial freedom.
As for the question about attending meetings without being a member, you might be able to go to a few of them but after a while, they're going to get tired of your excuses as to why you aren't a member. They are in this business to make money. This is why the higher ups will pay more attention to the people who are actually recruiting.
Never mind. I read that those meetings are basically them trying to get you to recruit more people. I've always wondered why people I know post "I will run hard and faster" I thought it was them trying to sell products, but it's more like running to gather as much suckers as they can. lol!
ReplyDeleteSomeone should get a copy of their notes that they take at these meetings. I'm quite curious as to what they write down.
I've read most all the comments. Interesting! First of all, it's a business! You only pay 30 US dollars to start it. That's cheap. The 100 dollars a month is for your own use of those products. That's only two or three items, a month! If you own a McDonalds, are you going to still eat a hamburger? If you own a USANA business, why would you not buy your own vitamins. It's a health and wellness company. Don't start it if you don't intend on using the products. Second, do most fail, of course. But why is MLM looked at so negatively? Do people write blogs and articles about how unfair sports are? No! How many people play professional sports versus how many play little league and varsity level in high school? Do the numbers, you'll find that less than 99 percent of high school players ever go pro. Do you tell your son never to play because he's going to fail? NO! You play to have fun. You work a MLM business to have fun. Fun talking to people, having fun working from home. Are sports for everyone? No. Is MLM for everyone? NO Third point, is that the problem with MLM is the bad training. The number one rule of MLM is knowing that not everyone is a prospect. That is not pushed hard enough, but that education is out there! There' a smart way and a slow or stupid way to find recruits. Fourth point: USANA is like any other MLM or brick and mortar company out there. There are always people at the top making more money. Take McDonalds again. The CEO makes more than the vice president and so on down to the store owner. The store owner makes more than the manager. The guy taking your order makes less than the manager. Is that fair? Yes. So, why is MLM not fair? The difference is that MLM will allow someone at the bottom to surpass someone at the middle ranks. Will they ever catch up to the top 1 percent...maybe, with enough hard work. People do it, it just doesn't happen over night. It may take years. Will people over you benefit? Sure, and why is that not fair?
ReplyDeleteregarding your blanket statements about the people who "push" this stuff on you etc...the interesting thing about an MLM business is that everyone will have different experiences with the people selling the product, because the people working for USANA are just REGULAR PEOPLE.
ReplyDeletethis is a good and a bad thing - the bad being that some people just don't know how to sell, or are just pushy people, or will say anything to try to "recruit" you, or be shady... but thats not a reflection of the company or business itself, its a reflection of the individual. if you met a person who worked for a large corporation and they were really rude and trying to tell you that their product was the best and you should buy it and they were really annoying and just wouldn't let up... would you say that the whole company was a scam and tries to pressure people or would you say that the INDIVIDUAL was a really rude person and a bad salesman?
fact is, some people are better salespeople than others. some people aren't "salespeople" at all and will never be good at this type of business.
i am not a member of USANA, but i don't see anything wrong with it. if people like the product and it works for them and their lifestyle then so what? i find it kind of sad that you devote this amount of time to trying to deter people from something which may, or may not, be a good fit for them. there are many people who i assume this type of business wouldn't work for - people who are very young, who don't have any experience or a network in a related field of health, fitness, skincare, or general well-being. those people for whom the USANA product already fits into their lifestyle(or the people who choose to simply sell the USANA "business") are the ones who will do well.
if its not for you, your life, your personality (and your wallet), it doesn't mean its a "scam". this is such a shallow way of looking at things. the facts are that USANA has a product that from everything i've seen/read/heard is just as good, if not better, than many others that are out there on the shelves - many of which people easily fork over hundreds of dollars for every year.
the idea that USANA is a scam because it makes its associates buy the product doesn't seem at all crazy - in fact, it seems like it would weed out the people who don't like/enjoy/care about the product and "just want to sell" from the people who actually think that USANA is a good product. this is in fact, incredibly SMART, and is seen as a GOOD business practice.
ReplyDeletei, and most people, would MUCH rather buy a product from someone who is using and enjoying it themselves, as opposed to someone who is "selling" to you but doesn't believe what they're actually selling. who sounds more like they are "scamming" you in that scenario? but ironically, thats exactly what many of us do day after day - we work at companies where we don't actually "believe" in the product/company that we're selling. it's rare, and lucky, for people to actually "believe" in the work they are doing, which sounds like most people in USANA do. in my experience, many USANA associates simply love the product and therefore figure "hey, if i love it, why not promote what i love and make money at the same time?" Is this strange?
you mention numerous times the insane amounts of money associates have to spend every four weeks on product to keep their membership active. this relates to my earlier point that, if you actually like the product, this shouldn't be a big deal at all, especially because USANA carries such a variety of products. do you seriously think that if people use facewash, take vitamins, eat nutrition bars and drink energy drinks, that they aren't spending at least $100 every four weeks on these things ANYWAY?
again, the only issue comes when people try to join without actually believing in the product. it just seems ridiculous to me that you would sign up to promote USANA if you don't love, use, and WANT to use, their product yourself.
It is so sad reading most of your comments. You sound like a bunch of scaredy-cats! Usana and any other network marketing company is not for everyone. And many people through-out the world in all kinds of businesses are not always ethical. I would recommend the Usana business to people who love helping people, who are confident and who want to stay healthy for life. Not everyone wants that. And it sounds like most of you who have left comments here would not be ideal network marketers.
ReplyDeleteUsana products are no doubt among some of the best out there. However, getting rich at the expense of thousands who have been manipulated and duped into buying the overpriced products is evil at work not love. How can one claims to "love helping" others when greed is the motive. Hypocrites!
ReplyDeleteOkay, McDonald. If you work at McD and you like their food, but you don't eat a lot of or don't buy something for a month...for whatever reason, will you get fired/laid off/your boss bug you to eat their stuff? At McD, do you have to recruit people to join McD? At McD, do you have to pay a "fee" to work there? At McD, are you asked to bug your friends and family to buy/join a Big Mac? At McD, when you work, do you get paid for every hour worked and training you go to? Now compare to Usana and tell me if they're the same...since you used McD as your example. McD and Usana are both businesses? Yes. But what else? At the end of your shift at McD, your friends and family will not hate or avoid you.
ReplyDeleteTo the person above, you're comparing a traditional business with a MLM. That's like comparing an orange and a pen. (No relation.)
ReplyDeleteCan you earn while you sleep if you go McD? Can you still earn if you stop working at McD? Can you sell once and get many times more earnings? Can you keep your job if your McD boss is mad at you (for whatever reason)?
There is this issue of "timing" when you talk about joining MLM. Take Amway for example. More than 5 decades already. The agent force is already saturated. It would be bad timing to join Amway, because you can't earn much, now.
So of course people can't earn, if they join a MLM at the wrong time.
I'm only usually McD because a Usana-devil used it above. I can compare a different company if you want.
ReplyDelete- Can you earn while you sleep if you go McD?
Not everyone, but people who are on paid breaks, paid holiday, paid vacation...still gets paid if they're home sleep. It's called benefits.
- Can you still earn if you stop working at McD?
Unemployment pays, depending on why you're no longer working.
- Can you sell once and get many times more earnings?
No, but you can sell none that hour and get the same amount of earnings. Can you say the same for Usana?
- Can you keep your job if your McD boss is mad at you (for whatever reason)?
There has to be a legal reason for getting fired: attendents, illegal acts..etc
I understand that not all businesses are the same and I just wanted to answer your questions since Usana scammers NEVER ANSWER MY QUESTIONS TO THEM. Just saying.
Anyway, there are going to be differences before McD and Usana and other businesses because no two companies are completely alike. But the main point that I was trying to get across is how shady Usana's business practice is.
And I thought the whole point was to "help people" not how much money you can make. Obviously, in the end, it all comes down to money and how much you can make. The whole "helping people" was just a front. At least at McD, they don't try to sell you the dream of being rich and helping people. Just saying. No matter how you put it, Usana's main goal is money and scamming people. Forget the vitamins. Recruiting people is more important, right? So are your upline more mad if you sell more products, but not recruit anyone? Or will they be more mad if you recruit, but don't sell at all? Please, I would like to know.
I am a USANA Associate with no downline and earn anywhere from $120 to $240/month strictly sharing the phenomenal products with new people i meet everyday. I SELL product and make a commission by setting up new preferred customers (at no cost to them) who can purchase product at a discounted price. The product I personally love and consume myself then becomes paid for by what i earn in comissions.
ReplyDeleteIt's so sad to read and see how much time and energy you waste on being so negative. I wish you well in life and hope that someday you can learn to overcome the anger that consumes you.
Sincerely
A USANA Independent Associate
HI I'm a USANA associate and I can say that the people who work hard will be paid for that and those who didn't won't it's simple it's a law and that's for everything, ex, Celine Dion worked hard for years and make an album so each time someone buy one she will get money end that is for the rest of her live
ReplyDeleteIn response to the anonymous poster who wrote "I am a USANA Associate with no downline and earn anywhere from $120 to $240/month strictly sharing the phenomenal products with new people i meet everyday. I SELL product and make a commission by setting up new preferred customers (at no cost to them) who can purchase product at a discounted price. The product I personally love and consume myself then becomes paid for by what i earn in comissions."
ReplyDeleteYou claim you make $120 to $240 per month from commissions. This means you have to have signed people up as Preferred Customers since you cannot earn commission from the product you personally purchase and resell. As a reminder to readers, USANA requires their associates to personally purchase 100 to 200 "Sales Points" worth of product every 28 days, which on average costs the associate $117 to $234. If the associate resells that product to a customer, USANA does not pay any commission to the distributor making the sale. However, all the associates upline from that associate making the sale receives points which convert to commission.
So you signed up preferred customers. How many preferred customers does it take for you to make $120 per month? Well, according to USANA's latest 10-Q, there were 70,000 active preferred customers, which USANA states accounted for only 10% of net sales.
That means 70,000 active preferred customers accounted for a measly $14,356,600.
That is only $205.09 on average per active preferred customer for the first quarter of this year.
For you to earn $120 in commission, you had to accumulate at least 1200 sales points.
On average, a sales point costs about $1.17 based on the autoship price. In order to make 1200 sales points, your preferred customers would need to purchase about $1407 worth of USANA product.
Based on the average sales to active preferred customers, you would need to have about 20 preferred customers who each purchase around $68 worth of USANA product every month. For your claim making $240 in commission per month, you would need about 40 preferred customers purchasing for that month.
However, according to USANA there is only 1 active preferred customer for every 3 active associates!
If we work the same math for the sales points received from recruiting distributors into your downline, then in theory you would only need to recruit about 7 associates for $120 in commission, or 14 associates for the $240 in commission. Unfortunately, USANA has a binary compensation plan that requires you to "balance" your downline. Then on top of that, you don't receive any commission until you accumulate at least 500 points (250 on left, 250 on right - pays $40 commission). And to confuse things even more, since you claimed to make $240 during some month, that means you are at least at the "Believer" level, which means you no longer receive commissions until you accumulate 1000 points (500 left, 500 right - Pays $100 commission).
I'm sorry, but based on my calculations, as many preferred customers as it takes to simply “Break Even” doesn't justify being a USANA distributor. You can get the product 50% cheaper on Ebay from associates dumping their inventory. And if you think you can deduct from your taxes the FEE USANA requires from their distributors every 4 weeks (known as the 100/200 Personal Sales Volume or as I call it, the personal PURCHASE volume), which can be about $1525 for 100 PSV and $3050.29 for 200 PSV, then you better be careful because if you are personally consuming or using the product, that is tax fraud.
However, there are some USANA associates making a lot of money from preferred customers. Doctors, Pharmacists and Chiropractors, who are USANA distributors peddling the product to their patients by signing them up as preferred customers. This violates the medical code of ethics.
Would you care to disclose just how many preferred customers you currently have? Also, if you would like to correct any of my calculations please do so.
In response to the anonymous "USANA Watchdog" aka failed USANA distributor,
Deletere commnets about to the anonymous poster who wrote "I am a USANA Associate with no downline and earn anywhere from $120 to $240/month." What this means is that the assocate is receiving approximately $30-$60 dollars in commissions each week. This is very achievable with as few as 8-10 customers.
Here's the wonderful thing about reality: The math proves you wrong.
DeleteUsing USANA's own SEC filing:
- 2011 USANA had $581,000,000 in net sales.
- USANA ended the year with 64,000 active preferred customers.
- 10% of USANA's net sales came from preferred customers.
Therefore:
- $58,100,000 in net sales were from preferred customers
- $58,100,000 / 64,000 PC = $907.81 per preferred customer per year
- So each preferred customer averaged $75 in sales each month.
- The average cost of a sales point is $1.20
- One sales point is potentially worth $0.10
to make $120 each month in commission from preferred customers:
- The associate will need to sell 1200 sales points worth of product
- 1200 sales points * $1.20 (cost per sales point) = $1440
So the associate needs to sell $1440 worth of product to their preferred customers.
The average preferred customer only buys $75 each months.
Therefore, on average a USANA associate needs to have 19 preferred customers just to make $120 in commissions each month. That sucks!
If the associate wants to make $240 each month, that's 38 preferred customers. WOW, that sucks!
according to SEC filings, there are 7 associates for every 2 preferred customers.
Gee isn't math great!
Continuing with Watchdog's post to the no-downline anonymous poster, how long did it take you to get those preferred customers? You do realize that $240 a month is peanuts right? Hopefully you have a real job to pay your bills, at least until you get another 1000 preferred customers just to make a decent living.
ReplyDeleteThis is why there is so much more distributors than preferred customers. You simply make more by recruiting. Usana might not tell you to focus on recruiting but their compensation plan practically forces you to if you want to make real money in a reasonable amount of time.
after reading all d comments & analyzing usana's compensation plan, it seemed 2 me that it is really an illegitimate mlm operating in America? is there anyone of you there in America 2 file a case so that, once & 4 all these will be stopped or be allowed 2 continue,if proven otherwise in court as legitimate business just like Amway?
ReplyDeleteMore "lotions and potions" type business. Like Amway, you need to change the buying habits of people and convince them to buy your overpriced crap just so you can earn a measly commission. That is a hard sell folks. The only people walking away with a fat check and big smile on their face are the executive branch of the company, because they know full well people are coming and going, retention is only 1% of the sales people who know how to sell gas heaters in hell.
ReplyDeleteI have a family member that has been at this for ten years, with nothing to show for it (yet he constantly talks about how USANA will make him independently wealthy one day). He is ALWAYS trying to enroll family members, which puts an unfair strain on otherwise healthy relationships. Everyone in the family buys a monthly allotment of overpriced product from him to just to keep the peace. At times, he does seem borderline delusional, insisting that USANA is the answer to all of life's problems, and that one day USANA will make him (and potentially the rest of the family) very rich.
ReplyDeleteI read the monthly magazine that shows up in the mail, and chuckle at the fact that it is basically the print equivalent of a late-night infomercial. It's truly laughable to see the photos of these "associates" lounging on an exotic beach with their Lamborghini in the background juxtaposed next to the small, small, small print stating the actual earning facts.
So sad that good folks get duped into this under the guise of good health. That creepy "doctor" from Utah with his overly-tanned skin and overly-whitened teeth that poses in a lab coat in every picture next to his equally creepy son is nothing more than a modern-day snake oil salesman and should be thoroughly ashamed of himself.
This comment has been removed by a blog administrator.
ReplyDeleteAw why was my comment removed? Was what I said NOT as legitimate as what others have previously said? I basically gave fresh info on how semi-scary their whole operation is.
ReplyDeleteDylan,
ReplyDeleteCheck your facebook messages. I sent a message to you asking for you to repost your response but without the fowl language. I am trying to keep this blog clean as far as the language goes. Thanks.
Completely understandable.
DeleteSo I just came from one of those appointments that includes a large number of people listening to the speakers. I was never really familiar with USANA but I knew it was a total fluke like VECTOR. I saw past the bs the minute my friend asked me to come. All of the people I spoke to never gave me a straight answer whenever I asked a question about what they do to earn any type of income. I might have schooled about 9/10 people that I spoke to, to only receive a "... I believe that one day I will be a millionaire" or "I'm on my way to becoming a billionaire..." When the speaker is talking, the current employees or recruiters respond to the speaker by saying in unison, "YES", "UH HUH", "DAAAANG", "YOU KNOW IT!" I was honestly a bit uncomfortable to be around people who would join in. From that moment on I knew instantly that this was some type of cult like business where they recruit many young people into believing that they can be a millionaire and also retire before the age of 30. To be honest I would rather spend 5 dollars a week to try my luck in the Super Lotto.
One of the "Gold Directors" or whatever showed us a presentation that included an experiment to explain how good their products are. The experiment was to show how their products prevent an apple from browning sooner than other products such as centrum, another product that I cannot remember for the life of me, and lastly a bottle of water [-_-] This was all shown in PICTURES. First of all, I'm not an apple so I won't be browning in any area of my body over any amount of time. Second of all, the experiment itself did not fully show the affect of the product because like.. the nearly rotten apples could have been placed next to a freshly cut apple that's labeled "USANA". I would really love to make THOUSANDS OF DOLLARS a week but at the cost of screwing people over for over priced vitamins? I think I'd rather continue my honest living and find another way to fund the things I want to achieve/obtain.
I'm heading back to their office today for an appointment. I'm going to bring something of the things I have read from this review to their attention to see what they will say. Bottom line tho is that I'm going back to ask for my application back, which I have the right to do correct? They asked for my debit card and SSN so I absolutely do not want any of that floating around.
I hope, i was the one who made the USANA PYRAMID SCHEME so i would be able to earn money because of the "UTO_UTO" people... Dont you know that if you recruit people because you want to earn money from them or from the people they would be able to recruit is What we call scam? This Pyramid scam is so interesting...I will only recruit people to join the pyramid scheme to get a lot of money... May i know what spell should i tell them? should I hypnotize them? what outfit should i wear? Do i need to wear horns on my head? A dress with a tail? put scary make up? and a big fork? so i will look like a DEVIL trying to tempt other people? OMG people in this business are DEVIL... they only care about themselves not about you, they need you not because they want to help you... so don't give a damn listening to their lies... ^^ When i listened to them as if their words has a power... i don't know what i felt but i started to hate it... i hate them... and if you are one of them I hate you too...^^
ReplyDeleteI am a USANA associate. I have decided to become an associate after having tried their products. I took them because I had severe allergies and was looking for an alternative to medicine I was taking. USANA products help me a lot to deal with my allergies and I do not take medicine anymore. Products are the only reason I have associated myself with USANA. They are the best on the market today and I had tried a few. If you don't suffer from any disease, you won't necessarily feel how USANA is different.
ReplyDeleteUSANA products are only what we should talk about but not everybody understand.
Business.. oh well.. if we think about it there is worst all around us and for bad products.
Whats crazy is the USANA products actually are pretty decent. I've heard good things from a few friends of mine who have taken the products. The crazy thing is the associates. They are out of control. I just happened to stumble upon this blog and it is just dead on. There absolutely is brainwashing going on. My step-dad has always been a little off and has always been pursuing these schemes. A few years ago, he found USANA and it really took hold of him more than the others. I met my future wife and took her many states away to meet him and my mother and he tried to push USANA on her while she was alone for a few minutes. It almost broke us apart. I have since gotten on him about this and repeatedly asked him not to bring it up or try to sell me on it, but it never stops.
ReplyDeleteWhere the brainwashing comes in is that it seems to have consumed him. Every person he meets is a potential client. Its super creepy. He can no longer hold regular conversations. Everything has to do with money. Not an hour goes by without him mentioning one of the 1% of USANA people who have actually made it rich.
Oh, its so creepy and cult-like. I'm so glad this blog is out there. USANA has done terrible things to people and relationships.
Your story is very common amongst MLM family members. It is quite difficult to break someone from a cult mentality. Education is key. USANA has answers to counter everything I write. Like: "This company sells vitamins. In a pyramid scheme there's no product.". - USANA spokesman Joseph Poulos ... That's false information, but they don't care. As long as they can sound convincing USANA associates will believe them. Most everything USANA says and writes is deceptive and only contains half truths.
DeleteGood Luck!
I recently whent to the USANA interview and the guy said $400 is the least to pay for my package and i said 'I can try' and they said ''Come on say yes, we want to see you tomarrow so you can meet Mr.dinh'' and I said I can try about 5x and then the 2 guys took me in this big room and the guy said ''Come here'' I was hela freaked out but he said ''I usually dont do this but i will put half in''the other dude that worked there looked at him kinda weird and he made me pinky promise but I lied and said I would try to get the money but I got home and told the guy basically thanks but no thanks and hes like ''Dont you want to be succesful'' . when I met everyone at the company they were all smiles it felt so fake as if some were really sad but feel like they have to grin, i felt really depressed meeting everyone, it was a very bad vibe that made me feel that way=so weird but ya thats what happened and they also said to not tell my parents but I got them to understand that I am going to speak about it to my parents and they said ''We usually dont want people to tell their parents until they get a better understanding but go head'' and then he told the other dude to take me out to eat lol of course I said I dont feel like eating cuz seriously I felt a lil uncomfortable
ReplyDeleteToday i met a Usana representative and after 1 hour with her i thought to myself this HAS to be a pyramid. Now i come on this blog and its clear to me. She was bringing up USANA all along the conversation even if it had nothing to do with he subjectt. Her house was filled with Usana products, she lives alone.. it was way to much producst, she even gave me alot of her products ! She was clearly stressed about USANA the hole time and she was trying to recrut me non-stop. IT GOT ANNOYING. I know its just a gut-feeling but it has to be a pyramid.
ReplyDeleteI listened to this USANA representative because i think she's pretty cute. lol After hearing all of her ramblings about USANA, i got tired and eventually talked about other stuff. Too bad i cant date a cultist.
ReplyDeleteSCAM SCAM SCAM.... brainwashing SCAM
ReplyDeleteoh my god.... I'd rather strain myself and work 8 hours a day than to screw people and recruit them to this MLM scheme. I'm not like that, it's not who I am.
ReplyDeletecan you tell me what business has no scam? no lie? a business will always have 2 types of person: a knowledgeable person and a ignorant person. because business is primarily what you gain. second is what you can give.. it is the principle of business. you cannot earn money unless you use other people no matter what the act you've done. for me as long as it is their choice i think it is moral and mature.
ReplyDeleteHere in our office, we have a few office workers pushing for USANA. Funny thing is they are just selling it for the profit. They don't even take USANA, they haven't even tried consuming USANA, they don't even believe in the nutritional benefits of USANA. They are simply selling it, because of the "PROMISED" riches.
ReplyDeletefound this site, rather interesting, though i will take it with a pinch of salt, the same way that I treat everything.
ReplyDeletei got invited to join in on a meeting with the guys. Decided to check it out since I had nothing better to do. The slide show and presentation they had was quite good (I actually had no problem with the 'cult-like' behaviour, thought they were just motivating their sales guys). However, when it came to asking questions, it became horribly difficult to get answers to anything. they talked about recruiting other people and earning bonuses that way. i asked how the company made money and got the response that you recommend it to people you know who need the product and you try to recruit them. i asked how it would work if you recruited everyone and had no one to sell to. they then talked about it being not really for profit and more about spreading the idea. alarm bells went off for me then, i wondered how they had the fantastic rewards (that did tempt me) and yet somehow had no customers but their own employees. i asked whether they actually sold the products as i had believe and they said it was not encouraged. throughout the whole way, when i i asked questions, they sometimes told me i had to just attend training to find out, which would include the high membership fee, $30 to be an international distributor, then $450 for one 'internet store' and $1000 for three. this was explained as how many nodes you have in the system. asked for failure rate (they mention some people were skeptical like me and just quit), because i was beginning to suspect that maybe the failures were funding the guys who succeeded, and thought maybe i shouldnt gamble a high chance of failure despite the high gains, didnt get numbers, so not sure.
took a taxi home and the driver suggested i check the financial records to see how they made their money, which i did. found something else on it that convinced me to stay clear (i decided that before finding biased sites like this, i like to be objective). like one commenter said above, i think it could be a different between how the chapters and head office behave. head office say you only needed $30 to begin, no big investment of $450, of $1000 (i would hv gone for $30, but when they revealed buying the 'internet store', and said you had to take risk to make money without explaining, i became hesitant). head office say you are suppose to sell products and recruit people, but i had heard no mention of actually selling products, just letting people try them and then recruit them. i think they are just maximising the potential bonuses they might earn, but this thing cant keep increasing exponentially, the guys at the bottom (potentially me), would hv been screwed. giving the benefit of doubt, maybe head office might hv had the right idea, but i dont trust the local chapter i was introduced to.
hope sharing this might hv helped.
Here's an idea. See if you can sell the products at retail price, enough to make just $100 in profit. If you don't want to waste time doing that, just ask random Usana reps how many customers who aren't distributors they have.
DeleteAny legit business' aim is to find customers. Seems like you're seeing their aim is to find more distributors. The head office can say to focus on selling products but do some more research and you'll find there isn't enough demand to have any reasonable success rate from doing that. Look at the compensation plan and you'll find that recruiting is way more beneficial which is why most reps focus on recruiting and as you pointed out, this thing can't keep increasing exponentially.
they refuse to tell me much more, said you learn more at training, i only got that much out of them by asking many people the same question. nah, dont think i will go anywhere near them again. because of the start-up cost they are asking for, it's not something i can just 'give a go' for fun.
DeleteRecruiting is only a way to generate residual income. Fact is, if you don't want to recruit, you don't have to and can still be an associate. You can buy the products and sell them for slim margins (like most other products). Heck, even most cars are sold for only a 5% markup! Slim margins like this means you need to sell large volumes (to earn large income), large volumes are easier to achieve with more associates. It's like any GNC store, but without the store.
ReplyDeleteAt the end of the day, I don't see anyone here criticizing any of the products or saying that the products have not helped them, and that speaks volumes. MLM has a negative connotation that unfortunately will not go away, but at least these products are reputable. And for the associates who failed in the first year... check the stats on new businesses and see how many also fail in the first year. It's just life and like any entrepreneurship there is risk involved. The other problem is that people who join MLM companies and aren't committed, usually only got involved to "get rich quick" which is a failing mindset.
John - Making any comparisons between Usana and a real business tells me you don't understand business. Have you been able to sell much products at retail prices? Of course not. Real businesses have products with real demand, not inflated demand like what Usana has.
DeleteMaybe you haven't actually checked the stats of new businesses that fail and are only repeating what your upline told you but with actual businesses, the failure rate is lower than Usana's. Surprised?
Entrepreneurship? You really think what you have is a business? Tell me, who are Usana's biggest customers? I'll answer that for you: Their salespeople.
Give me a non MLM company that has more salespeople than customers. Sorry, but what you're involved in isn't a business, it's a scam. The products may be great but obviously, not many people are willing to buy Usana products at its current prices which explains why most Usana reps don't make a dime through retail.
Without their distributors buying their products, Usana would go bankrupt. You might not know this but Usana knows their products are overpriced which is why the monthly purchasing requirement exists, to sell overpriced products to people chasing financial freedom.
The founders of Usana are the real entrepreneurs here. Most businesses just have customers. Usana has loyal, brainwashed souls willing to defend their scam to the very end. Hats off to them.
With GNC, I have a choice. But have you been to USANA seminars? All they talk about is how to get rich, how to get a big house, how to have a nice car etc. It's not about health anymore, but PURE GREED.
DeleteGood for you John!! So know its people fault because they are not committed, I bet you told them when you recruit them!!! you MLM people are funny, its always someone else fault!!!
ReplyDeleteIt's obvious that people who comments here are mostly americans. I'm an asian and the one thing that differentiates americans to asians is that we asians are born businessmen. We love selling, we love buying stuffs that have something to do with our health, mostly chinese people. That's why the number 1 distributor from USANA is an asian and that's Rita Hui. Asians are exemplary good in this kind of MLM because believe we all know that most of all people are potential customers. People here in Asia are more prone to degenerative diseases than americans that the only problem they have is they get so much obese people. I know there's not such a thing as the perfect business but sad to say it's the most easiest thing for us to do, and that is to sell. We don't rely on facts, we sell the stories behind the rags to riches and the proven life changing experience from the supplements that we take. And hey I'm not being a racist here, I'm just stating the fact that why most of you fail and hate the MLM is because of this. Seriously speaking, are you taking good care of your health lately? Or you're just "whatever happens, let it be."? We don't have good government to support us here regarding if ever you've been hospitalized, that's why we rely much on products that will prevent us from being hospitalized that's why no wonder, it clicked and the industry of MLM boomed in the Asia-Pacific region and it is the stronghold of most of MLM companies.
ReplyDeleteThat's all. Just sharing.
And 99% of them will lose money in MLM. Why? Because pyramid schemes are designed that way. As for Rita Hui, she does not sell USANA product. She sells the USANA business opportunity by recruiting people into a pyramid scheme. And what about all the tens of thousands of Chinese Nationals illegally recruited into USANA's MLM through Hong Kong? That's not very legit now is it?
Deleteam also an Asian and I do know a lot of Asians being victims of Ponzi schemes and other pyramid scams. Am not being a racist, but I do agree that lots of Chinese and other Asians are hardworking traders. But why not accept that it is simply the GREED that motivates? It's not concern about health but simply GREED. Read the book ASIAN GODFATHERS and you will realize how GREEDY some people are. They manipulate government officials to get what they want, later destroying the whole society.
DeleteWhen I encountered Usana, I had no idea about MLM and my recruiter seemed like a normal everyday person. Unfortunately it took me a while to figure out that it wasn't a genuine business opportunity. I totally agree that it was cult-like. Any suggestions were treated as blasphemous, and there is a mini industry selling materials that supposedly help you reach the right mind set. I was amazed to find that product sales weren't our main focus. Members are supposed to be positive at all times and failure was always your own fault.
ReplyDeleteWhat annoys me most though is how secretive and litigious they appear to be. Sales of the product are tightly controlled so that product is only meant to be available through the organisation itself. When I quit I tried posting details of my experience with various sites and found that comments presumably as the result o pressure from usana.
An article on MLM to support your cause:
ReplyDeletehttp://www.tipskey.com/article/read_this_before_joining_mlm/
TO all the people here. We all have an opinion, we need to know the industry of mlm and learn from reality. Numbers do not lie
ReplyDelete