USANA released their First Quarter Earnings Statement and it shows that all over the world USANA's active associate numbers fell except China, which I believe cannot be trusted.
Year over year, USANA's active associate figures yield:
United States: from 56,000 to 49,000
Canada: from 25,000 to 24,000
Mexico: from 13,000 to 10,000
Southeast Asia/Pacific: from 44,000 to 40,000
North Asia: from 9000 to 8000
Greater China: from 57,000 to 82,000
USANA uses the excuse that the bad United States economy is responsible for the declining figures, but this decline is world wide. However, China is an exception. Hong Kong and mainland China numbers are sky rocketing, but as I have mentioned many times now, I belive this is because USANA is allowing illegal recruiting of mainland China persons into USANA's Hong Kong territory, which violates foreign laws. Not to mention mainland China is not a "USANA" territory. It is a Babycare territory. There is a difference.
I believe USANA stated last quarter that they expect the Hong Kong distributor numbers to start falling because a handful of USANA products are now sold through Babycare Ltd. This was due to the expectation that mainland Chinese distributors signed up as USANA associates in Hong Kong would leave USANA and sign up as a Babycare associate. Not only does this validate my claims that USANA has been recruiting mainland Chinese nationals as USANA associates in Hong Kong, but also raises a serious question: Those associates who left USANA's Hong Kong distributorship and signed up as Babycare associates, are they counted twice? The answer should be "NO", but it would not surprise me. Perhaps there are those that hold both a USANA distributorship as well as a Babycare distributorship; count them twice!
Of course this begs the question, where are the millions of retail customers that should come from having hundreds of thousands of USANA sales reps? Unfortunately, after distributors pay a premium price for the USANA inventory, why would anyone pay even more? Distributors pay $110 for a USANA Healthpak100 which only lasts 28 days which makes it a $3.93 per day multivitamin supplement. View the USANA Price List for yourself. Who in their right mind would fork out $1430 per year for vitamins, and that's the distributor's cost! And don't expect any ethical doctor or nutritionist to recommend such a product either. Since only USANA distributors can sell the product, the doctor or nutritionist would have to be a USANA distributor. In other words, some doctors peddle USANA product to the patient they would have to peddle the product to their patient, which violates their code of ethics.
Yet, USANA's Healthpak100 is one of their most commonly sold product. Why is that? Simple. USANA attaches sales points to each of their product. Most distributors have 1 business center and are required to personally purchase 100 sales volume points every 28 days. The Healthpak100 is 100 sales points, so only 1 product would have to be purchased. Plus, it is the best value for the number of sales points awarded. Purchasing other products and meeting the minimum 100 point requirement would usually put the order over 100 points, which further wastes the distributors money. So a 100 point product easy much easier to deal with. Sadly, USANA distributors also have to pay a pricey shipping and handling fee on top of it.
Knowing all this, it is obvious why there is a serious lack of retail customers. One can go down USANA's entire product line and see how over priced it is. More and more people in the United States are becoming aware of MultiLevel Marketing schemes like USANA and are distancing themselves from the cultish behavior. USANA has reached saturation in the United States and other areas, and without the shenanigans in the China region, USANA would have a single digit stock price.
These are my opinions and I welcome harsh criticism.
As an associate who had throughly researched teh company before signing on you must be smart.
ReplyDeleteFirst don't believe everything you read such as this report.
I ahve in writing, video's how the commission works. It is not hard to understand nor it is hard to make money. As in any business you must work it smart.
If you do not have a good mentor guiding you in your journey and you do not do your home work in any venture you will not succeed.
As a former business owner and former independent associate of many MLM companies USANA has been the best for me.
Their nutritional line is amazing for me. Maybe not for everyone but in the years of going to doctors to find out why I have this or that and the blood tests reveal nothing, I take this high quality, pharmiceutical suppliment and I am happy with my results.
As associate we are not required to have a stock or inventory at all. If you do it's your choice but I personelly would not buy a vitamin or food product from a stranger. Be smart and do what is right for you. I thinks some info here is taken out of contex, and I do know it's not true about the commission pack as I am earing commission and have not done huge amounts of sales or orders so this confuses me.
Reader beware. Read and decide for yourself not all we read is true. Signed NY Associate who feels amazing and is happy to finally find something to make me feel good. Bye Bye doctor copays.....Everyone take a good quality supplement for your health for goodness sakes!
It's nice to see you back and writing again Usana Watchdog!
ReplyDeleteWhat a load of crap! You have no idea of how effective USANA products are! They saved my life - that is why I take them regularly.
ReplyDeleteAs for the business, it is extremely simple (although that fact seems to have escaped you!) to understand and to follow. The problem with ALL marketing companies is that the distributors who fail, do so because they do NOT follow the guidelines. EG they rarely speak to new prospects, they never go to training events and NEVER try to learn how to plan their businesses effectively. I have made well in excess of a regular six figure income in network maketing simply because I follow the guidelines suggested by my successful upline people. However I have met many distributors (not just in USANA) who complain about not making any money, but when questioned for more details, are forced to reluctantly admit that they rarely go to training, never use the business tools available and have never spoken to more than 10 to 12 people! They are losers, every one. Probably they have an inbuilt belief that 'training' equates with an admittance of lack of knowledge and therefore is seen to be avoided at all costs in case people think they do not know anything. THEY DON'T KNOW ANYTHING!! That is EXACTLY why they need proper training. Would they open a computer store if they had no idea what a laptop was?
Stop knocking the system. You are like the person who gets a lousy meal once in a restaurant and therefore states that every restaurant cheats customers by giving them all lousy food.
Obviously your ego is bigger than your brain . . .
In response to the previous anonymous poster:
ReplyDeleteThe "Guidelines" and "Training" you refer to teach distributors how to run a pyramid scheme by recruiting an endless number of associates who are sold on the belief they too can become rich.
You claim that distributors who fail are losers who don't know anything. Well, that would be 99% of all the distributors in USANA then (About 1,000,000 distributors). And guess what! The top 1% who are making a profit do so off the backs of those 99% who fail. And guess who recruited those 99% of distributors who you claim are losers! The top 1% who are making the money.
So according to you then, if you want to be successful in USANA, all you need to do is recruit a bunch of losers who are too stupid to know that they can't ever make a dime because they were suckers who joined a pyramid scheme.
Since you claim the business is extremely simple to understand and follow, then why don't you explain it in your own words right here how it works and how to make money at it. Have at it.
hello :)
DeleteI just want to ask why are you only attacking USANA knowing that there are many MLM companies operating?
Thank you :)
Usana is a "love-hate" cult that captures more members by the promise of success and happiness. They will love you if you follow them and become a member of their downline, and they will absolutely hate you if you quit. Yup and then they will tell their friends that you were an absolute loser who didn't work hard and never went to the meetings when you really tried your ass off and spent every dollar and dime using money to get money.
ReplyDelete