*** UPDATE - 05/10/2011
Monday, May 9, 2011
USANA executives Fred Cooper, Jeff Yates, Mark Wilson, and Riley Timmer send in their resignations to USANA.
USANA has a little shake up taking place. Fred Cooper, Jeff Yates, Mark Wilson, and Riley Timmer have given USANA their resignations.
USANA sent out a memo YESTERDAY to all their their Gold Director distributors and up. These special individuals were privy to important information before USANA released a press announcement to their shareholders. The SEC should investigate to see if any Gold Directors and up sold their shares yesterday before the public announcement was made.
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Yeah, they are starting a new MLM company.
ReplyDeleteany reason why?
ReplyDeleteI'm not sure why they left. It may be that they are starting their own MLM, but that is speculation right now. This resignation was effective as of May 9, 2011. USANA has promoted the following members to fill their places:
ReplyDeleteKevin Guest, President of North America
Deborah Woo, President of Asia Pacific
Doug Hekking, Chief Financial Officer
Roy Truett, Chief Operating Officer
This could be good news if they were the bad apples?
ReplyDeleteThese guys were making millions a year from Usana stocks. For them to leave to supposedly start another MLM company shows just where the money really is, running an MLM company. This is precisely why Donald Trump got in this game.
ReplyDeleteIf you want to make a ton of money, either start a religion or start an MLM company.
Most likely, there were some disagreements. Otherwise, these 3 are either out of their minds or selfish and greedy. Certainly they knew leaving Usana would not only affect the company but all of its reps' success as well.
A company is only as good as its leaders. All about health? Don't make me laugh. It's obviously all about the money.
Dont you guys have anything better to do than try to stir up sh**. Get a life.
ReplyDeleteI read that these 4 execs might have found a better opportunity with a competing company. Judging on stock prices of public MLM nutritional companies, I'd say Herbalife looks quite appealing.
ReplyDeleteN-o-o-o-o-p-e.
ReplyDeleteThe executives who resigned had stock options that had significantly increased in value and were set to expire at the end of this month. Do a search and you will find out that stock analysts were expecting something to happen because of this situation. Search “USANA” and the terms “volatility”, “volatile”, “options” and “expiring soon”. The opportunity that cashing out their options represented to the executives is what drove them to make their decision to cash out and leave.
Their leaving actually hurts the stock less than if they had stayed and cashed out.
The heavy hand of government regulation in the form of SEC regulations that do not allow boards of directors to compensate executives in ways that make more sense is what you should be directing your venom toward – if spewing venom is something you need to do.
There is no indication that the executives had any serious disagreements or lack of faith in the company. There is likewise no indication that the executives had any offers that wooed them away.
If you want to find something wrong with the free market/capitalist system it is the artificially imposed restriction on publicly traded firms to compensate executives in ways that reward them for actual performance that do not force them to make difficult decisions such as cashing out or leaving millions on the table.
The terms “greedy” and “selfish” have nothing to do with what has happened at USANA.
The person who thinks USANA should be investigated is completely off base.
USANA’s officers did exactly what they are supposed to do upon the resignation of officers: they immediately informed stock holders not to do any trading and that if they did do any trading they would be violating insider trading regulations.
USANA DID NOT tell its employees, associates and stockholders WHY it was issuing a directive not do any trading. The stockholders found out that officers had resigned at the same time as the press release was issued
SEC rules were followed exactly.
What’s your beef with USANA?
They are as far from a pyramid scheme as you can get and still be called a direct marketing company. For crying out loud, you can order products directly from USANA without joining up or just walk in to their building and buy them from the cashiers at the product counter.
In response to the previous anonymous poster,
ReplyDeleteUSANA's top executives left. That is very bad news for USANA, especially when they have no answers why they left. I don't quite understand your position on the amount of money those four who resigned were making with USANA. Each one made more in profits than 99% of USANA's distributors combined!
I claimed USANA should be investigated because they notified their top 1% of distributors (Gold Directors and up) 1 day earlier than their announcement to shareholders. Many of these distributors at the top are also shareholders. So USANA in fact told a special class of shareholders the news a day before they told anyone else. You don't think that's illegal?
You claim USANA is far from being a pyramid scheme. I don't think you quite understand how USANA works. USANA allows distributors to recruit an unlimited number of levels. Each distributor is forced to personally purchase over $100 worth of product every 4 weeks. The distributor who makes this purchase and tries to resell it is not paid a commission for their work. However, every distributor upline from them collects commission from that forced purchase. Compound this amongst an unlimited number of levels and you bet you have a pyramid scheme.
What you failed to grasp is the fact that anyone can walk up and buy product from USANA or even become a preferred customer and obtain the product at the same price distributors pay. Because of this, distributors have a 0% profit margin. There is virtually no retailing of the product. The only way to be profitable in a scam like this is to recruit recruit recruit. Welcome to the Boiler Room...
All MLM's are constantly teetering with being Illegal. the reason for the mandated auto-ship of product to qualify for pay is to show that they sell product.
DeleteThe main goal of every MLM is to recruit other distributers(Business builders) It has always been that way. The product has always been the front for these businesses.
Also have you ever wondered all MLM companies have headquarters in either Utah or Nevada?
it is because the laws very relaxed in those two states.
The fact remains that only 2% make all of the money and there is always tons of people who lose out at the bottom.
This business model has never been about products ever. if it was they would be on the store shelves and they certainly wouldn't need you to over-hype the business opportunity to everyone at arms reach.
stop barking usana watch dog. don't behave like a dog!
ReplyDeleteDear USANA Watchdog,
ReplyDeleteThere are many ways to cut an apple. Likewise, there are many ways to do the USANA business.
It may be a lousy company as you claim, but please keep in mind about freedom from non communicating disease. It truly is a good cause and that's what I believe, with or without USANA.
Expensive they maybe but so are Starbucks, Nike and the Hummer!
I know. You're gonna tell me that these guys do not promise the "opportunity" to make money. Agreed.
My business is different. Everyone is a preferred customer on 1 product/ 8 weekly autoship.
Why? Because I want people to know that USANA is affordable. I even teach them how to delay their autoship in case they are not ready to buy the upcoming autoship.
Once they are confident with the billing and efficacy of the products, I urge them to help me recommend to their friends and families. I do not pay them commission. Neither are they expecting any.
Under me, I have a few leaders who are doing the same. Basically our USANA business is almost like buying your burger from McDonalds. If you want you buy. When you can buy, you buy. Tell your friends and they will buy. No forcing.
There are so many people who wanna spend their energy, time and money to be healthy. These people have enrolled in fitness centers, salad joints, yoga etc. Now they want vitamins. And I think USANA's vitamins are at worst not bad!
I'd say that this plan allows an individual to spend less time recruiting and more time on building a healthy society.
Agree with me? A dead watch tells the correct time twice in a day? Well, a really really bad USANA does have some gold lining when it comes to preventing disease. And that's the only thing I'm focusing on here!
We do not make crazy amounts of money. We all have our full time jobs. Our commissions allow us to "service" the autoship and some spare change weekly. But it sure is a hell of lot better than getting a 2nd job!
Finally, I have to thank you. Your website has taught me how to do USANA without making it like a pyramid. I arrange my downlines 2 below 1 on both sides. And I stick to it. Try projecting this on paper and tell me if anyone's gonna "lose" money this way?
To the ridiculous poster who claimed that the executives left because of stock options expiring and that Usana would be better off without the execs, you are then forced to say that Usana would be enormously better off if Myron and Dave Wentz left becuase they are by far the biggest beneficiaries of stock options.
ReplyDeleteYour entire comment was rubbish. The SEC does not restrict compensation to execs, it simply requires the amount of pay [stock or cash or benefits] to be disclosed. These execs have had a long standing policy of exercising all options that were in the money to them and then immediately selling the underlying stock.
They left to obviously start or join another MLM. When that gets up and running, watch their friends, the big distributors, leave to join them. Very possible Usana will have to sweeten the payouts further to keep them. It is in NO way good news for Usana to lose four of their management team [including Timmer] and a pro-Usana poster who claims that it was some magical good thing is willing to lie and lie and lie again.
Interesting how execs leave companies regularly to pursue other endeavours but the day the top rated network marketing company experiences it, there is all the sudden speculation and worry. The management team has no direct result on the size of organization we build. Have a nice day.
ReplyDeleteIn response to WaveRunner,
ReplyDeleteTrue, but FOUR of the top executives on the SAME DAY??? There is something fishy going on at USANA for something like that to happen.
So....four of the top execs left on the same day...yet nothing happened at USANA.....your propheting is a lot of crap, isn't it?
DeleteRumor is there were differences of opion between the founder and these guys. Founder is very focused on the products and may nix their plans if they impacted products. Other rumor is re stock buyback strategy. Founder would like to take USANA private again - their leaving may help that! Fortunately the ones who left didnt have any impact on the product and it is the product that sets USANA apart. Wilson was vp of sales but all sales are via the distributors so it isn't like sales lost a leader. Cooper also owns a couple of businesses, one is MLM software so they could go there. Time will tell.....
ReplyDeleteWhatever they decide to do, I'm sure they'll be successful. Usana will continue to be on the leading edge of cellular nutrition thanks for the foundation of the founder. Change is inevitable, growth is optional.
ReplyDeleteFor those who got in early, its a great thing. For those who want to get in now, go find something else, timing is everything, just ask the top money makers in Usana, and they'll tell you.
ReplyDeleteUsana is / was always over rated and over priced. maybe they found something better to start with out ripping people off? It may have got to the hearts.. naw just more greed?
ReplyDeleteIt seems to me that USANA does not take care of its reputation in terms of complying with business ethical code recognized by most people.
ReplyDeleteThis comment is in response to the person who said Fred Cooper owns an MLM software company.
ReplyDeleteUSANA published that Fred Cooper sold off his interest in Icentris at the request of the USANA. The company saw it was an obvious conflict of interest that USANA's President owned a software company that was selling software to USANA and other companies. USANA was risking SEC inquiries if they hadn't asked Fred Cooper to sell his interest in Icentris. I always thought the Icentris/USANA relationship was too close to be legal anyway.
I think the departing execs will start their own MLM. I'm not sure why. If I had 20 million in the bank I would enjoy the good life. I wouldn't start a new company and risk it all. Fred Cooper nearly put USANA into bankruptcy. USANA's loyal distributors are the reason USANA was successful, not Fred Cooper. USANA managed to double its sales in spite of Fred Cooper's ability to get in the way of everything all the time.
I think that by these exes leaving, USANA is weeding out the bad seeds in the company. These guys and the distributors that may follow are the weeds that make people think that USANA is a pyramid scam. I have spoken to some distributors that are thinking on leaving and they are sharks anyways and only have selfish agendas. The distributors that truly help and care about the success of others said that this news doesn't effect them or their teams at all. They will continue with the vision of the founder Dr Wentz and to continue to help others!
ReplyDeleteIn response to the previous poster,
ReplyDeleteIt isn't a few executives and a few distributors that make people think USANA is a pyramid scheme. It's USANA's "Binary Compensation Plan" that makes people believe USANA is a pyramid scheme.
people think its a pyramid scheme because the are ignorant to how network marketing works.
ReplyDeleteyou can create wealth in three ways
1. start your own business, product and marketing department, spend alot of your own money and time, probobly at least 500,000 to 2 million, depending on your product, if it even catches on
2. buy into a franchise, lets say for example subway. that will run you 200,000K, and lets say you are successful . but if in 20 years subway sees that its a great store, they can buy it back from you, because you never really owned it anyways.
or 3, start a network marketing company. is low overhead and risk, and you can make the same amount as the other two, only once you make it big, you can travel the world , and still get weekly checks.
Too the people who complain on spending 100 dollars a month on products that are healthy for you, If you cant handle that overhead, and how easy it is ,compared to a traditional business. then you will probobly never be able to run a business anyways, so have fun working for someone else, and making them rich. If you want to become a millionaire you should look further into usana, and what they have to offer, because herbalife doesnt even come close! haha
you can spend your life mining someone elses business, or you can mine your own.
thats why i choose usana, a product of value, a great leadership team , and a way the average person can reach financial freedom.
you didnt post my comment? why is that
ReplyDeleteAnonymous,
ReplyDeleteI didn't post your comment because I hadn't logged on today until just now...
As for your belief that MLM is the way for the average person to reach financial freedom, statistical data proves that the average person cannot even make any money in MLM. It takes someone capable of convincing hundreds of others that they too can reach financial freedom. I think it is sad that those making a profit do so on the backs of those distributors beneath them that have no chance...
All of our action is motivated by greed. We are all hypocrites if you will say that we don't need money or whatever. Those people have their own reason why they did such for as we know that this is the best time to do a MLM business as baby boomers are willing spent everything they have just to gain back their health. Fred might be selfish in his decision but on the other side he may be wanted to make money by himself rather than being employed for the rest of his life. For me, everything is a money game thing. MLM products is one thing but the money aspect is everything for the networkers like Fred and the rest of the players. The choice is yours whether you will pursue MLM business or do traditional business, after all, it is the traditional business the propel the economy of every country. Cheers!
ReplyDeleteFor USANA, you need to calibrate your business strategy to the Philippines. Yes, Pilipinos might be a good MLM player but your business package is a bit higher. Amway did a good approach in new strategy here in PH. Just an idea..
ReplyDeleteI agree. Am just wondering why is it that pricing of USANA product in the Philippines is a bit high compare with Korea and Hongkong counterparts.
ReplyDeletePyramid???? For Heavens sake,everyone who has a J.O.B.(just over broke)is in a Pyramid scheme.In other words only the CEO gets a huge salary and the sheeple get low wages and can never get to the top.ONLY one at the TOP.In Usana's Binary plan Each one joining is at the TOP of their own "Pyramid"then if they WISH to work the businesshave to help those below them to SUCCESS.Otherwise they will not be successful themselves.Once a certain level of points is reached Usana will give a free re entry to start again below the previous Associates who were below and in turn help them to grow too.Take the time to learn the comp plan.Sure beats a 40 year plan working for the boss's dream!!!If people don't succeed then it is not the Company's fault.The products are No1 in the world and WORK.And Boy do they WORK !!At 97.8%(out of 100% Comparitive Guide to Nutritional Supplements)some other Big "Nutritional" companies out there are dismally low in efficacy.Look up the Guide.With a little effort one gets their Nutritionals FREE,so where is the expense? People don't worry about paying for TV's and Big cars.They dont give one Health.Without Health ,old age is expensive rocking chair in a Nursing Home.Big car -no good there!!!
ReplyDeleteAs for Fred Cooper and Co.Well they lost Integrity by working behind the scene by setting up while employed by Usana.Not a company I would trust nor it's "Unknown " products being hyped up by well--HYPE----Dick.
in a traditional business those who are just starting to work gains enough salary to live their life not unlike in your pyramiding those who are just starting are suffering and not even sure if its going to work out not unlike in a traditional business where they are sure that they will get what they are working for and if they do good in job you get promoted
Deleteand please if you're going to mention the effectiveness of the product stop referring to that bias book give me another valid study that show youre product is good
yes it may be easy money in pyramiding but in expense of others suffering and it is not good no matter how you look at it
It is never easy to manage a big corporate.
ReplyDeleteEverything boils down to relationship or money or both.
In re: to the comments "I agree. Am just wondering why is it that pricing of USANA product in the Philippines is a bit high compare with Korea and Hongkong counterparts."
ReplyDeleteI beg to dis-agree, "it is not quite high compare with Korea and Hongkong counterparts" but "It is really high compare with Korea and Hongkong counterparts."
Why usana products are expensive in the phils compare to Korea and Hongkong market? USANA management, we need an answer to this.
Thank you.
From Business Line
ReplyDeleteKochi, Aug. 6:
The police on Friday carried out searches at nine Amway centres in three districts in Kerala as part of the ongoing drive against money chain activities and cheating through multi-level marketing campaigns.
The team under Mr J. Jayanath, Superintendent of Police, Wayanad, searched the head office of the Amway at Kochi and also its office at Kottayam. The raids were also conducted in Thiruvananthapuram, Kollam, Thrissur, Kozhikode and Palakkad.
The police said that cases had been registered against the company at Kannur, Wayanad, and Thrissur following complaints of cheating.
Meanwhile, Amway in a statement said the police action has come as ‘rude shock' and surprise. A fair investigation demands that the company be notified about the nature of complaint received for such a sweeping inquiry, it said.
The multi-level marketing and direct selling company stated that it had been receiving complaints from distributors over the past one month that they were being called to police stations and being ‘harassed' to give complaints against the company. This is another step in the direction of ‘high handedness' of some police officials, the statement said.
In determining how to compensate individuals (as opposed to companies) who sell products on behalf of manufacturing/brokerage companies, what practical or realistic options are there?
ReplyDelete1) pay each seller individually,
2) allow teams to be created horizontally,
3) allow teams to be created vertically, and
4) any others?
Have a look at http://www.scribd.com/doc/71395681/Multi-Level-Marketing-Direct-Selling-Pyramid-Money-Circulation-Schemes
ReplyDeleteWell, I know where these USANA execs went to! They started Ariix. This is an exciting adventure and draws in Tim Sales, who has a great reputation as a distributor. Watch this compny turn into something even larger than USANA aver the next few years. Then, of course, you could join me and be part of this.
ReplyDeleteJohn Gaydon
i would like to know what usana watch dog really wants and why, and who is he really.
ReplyDeleteYes, I would like to know too what Watchdog gets out of bashing MLM companies, usually with false information - like Hitler says in Mein Kampf, put a little piece of truth in the middle of a BIG lie and people will believe ALL of it!
ReplyDeleteA website is very expensive to maintain so WHO IS PAYING YOU TO MISINFORM THE PUBLIC?. HERE IS AN EXAMPLE; YOU STATE THAT USANA FORCES PEOPLE TO PAY $200 A MONTH FOR PRODUCTS BUT THEY GET NO COMMISSION ON THOSE PRODUCTS. Nonsense! To be eligible for downline commissions, an Associate has to have a monthly order of at least 100 points - about $105-$110 in the USA. If he is on Autoship (and he is a fool if he is not) his cost is less than the wholesale price, so the Associate when he sells those products to clients, makes at least around 20% or more retail commission right away - cash. TELL THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH!
Frankly, I do not know how you can sleep at night. You have been lying for years. You should be thoroughly ashamed of yourself for hoodwinking REAL people.
No one pays me anything. I don't make a penny from any of the information I write on this blog. I have no interest in making any money from this either. Not everyone has a financial motive to do something. Sometimes people do something because it's the right thing to do.
ReplyDeleteI have stated many times on this blog that USANA requires at least 100 PSV every 4 weeks (13 times a year). I have also pointed out that for multiple "Business Centers", the requirement is 200 PSV.
A distributor on autoship pays the same amount as a preferred customer on autoship. Therefore, there is ZERO profit margin because the distributor's customers get the product at the same cost as their salesman. USANA's products are already outrageously expensive even at the distributor's cost. Go to Ebay and you will find many USANA distributors selling thousands of dollars with of product at HALF their autoship cost. These are new are unexpired product that they are selling as well.
Besides, even one of USANA's top most distributors stated the following:
QUOTE
Our recommendation, unless you plan to make a lot of retail sales (which most Associates don’t, because of the USANA PC Program), would be to enroll as a non-Distributor Associate, since you would be charged sales tax on the lower, Wholesale, rather than Retail, prices of taxable items for your location.
UNQUOTE - Distributor or Non-Distributor Associate - by Pete and Dora Zdanis
So associates have the near impossible task of "retailing" product to people. So instead, they sign them up as preferred customers, making $0 in profit margin. However, for every $100 worth of product that PC purchases, that's potentially $10 worth in future commissions paid out by USANA. However, unless the associate purchases his or her required 100 PSV worth of product every 28 days, then that associate won't make a single penny. Too bad for you though, there's a 3 to 1 ratio of distributors to preferred customers.
You apparently don't understand the difference between "Commission" and retailing something for a "profit margin". Again, USANA does NOT pay any commissions to the associate for their 100/200 PSV (Personal Sales Volume). In fact, this required purchase MUST be done by the associate (cannot be from someone else's credit card). So call it what it really is: a PERSONAL PURCHASE VOLUME (PPV). And even if the associate manages to sell the product, USANA does NOT pay out any commission to that distributor. Instead, USANA pays commission to that associates UPLINE! Hence the incentive to recruit more distributors.
****** THAT'S A PYRAMID SCHEME *******
The anonymous who said, "A website is very expensive to maintain" has either never owned a website or makes so little income from Usana that $0 is expensive to them. FYI, this site is on a FREE blogger account.
ReplyDeleteI understand how Usana reps can sleep at night now: They don't know they're part of a pyramid scheme. Bravo to the owners of Usana.
When the top execs cash out their stocks, that is the first indication of problems. Maybe the SEC should investigate the insider trading? It would not be the first time insider traders set up for a pump and dump! Their track record in the last few months may indicate this type of behavior.
ReplyDeleteAlso, USANA is no longer selling exclusive products! When you can buy products cheaper online at ebay or amazon you lose the incentive of recruitment! Some have reported that the products bought online where shipped directly from USANA. This would be a direct conflict of interest with the associates agreement. This would create another class action lawsuit, which would probably end their business in North America!
I'm just saying!
Great products! Poor marketing! Be aware when products sell on the internet cheaper than a distributor can buy them! Why would anyone sign up when they can just buy them on the internet cheaper? These products have been on ebay for 12 years that I know of and now they are on amazon. USANA gives lip service as to why they can't stop the internet sales. The truth is they don't want to stop these sales. It's another outlet for distribution of products! Why do I need network marketing when I can buy them online? If you are planning on signing up as an associate, you will pay more for the product.
ReplyDelete