USANA states in their own words the following in many of their 10-K SEC filings:
My Emphasis in BOLD Red
Major Customers
Sales are made to independent Associates and Preferred Customers. No single customer has ever accounted for 10% or more of net sales in any fiscal year. Notwithstanding the foregoing, the nature of our business model results in a significant amount of sales to several different Associate leaders and their downline sales organizations. Although no single Associate has ever accounted for 10% or more of our net sales, the loss of a key Associate leader or that Associate’s downline sales organization would adversely affect our net sales and our overall operating results.
That is exactly what has and is happening!
Back on
May 9, 2011 I reported that four of USANA's top executives (Fred Cooper, Jeff Yates, Mark Wilson, and Riley Timmer ) resigned from their position. However, USANA released this information publicly on May 10, 2011. How did I know 1 day ahead of time? USANA sent out a private memo to all of their Gold director distributors and up. They were privy to insider information before shareholders. However, stock analysts completely dismissed this fact. So when USANA stated in a press release that these executives resigned May 10th, that is not the case according to the May 9th private memo.
Now I'm here to give shareholders heads up on the fact that USANA has lost many of their top distributors who quit their distributorship with USANA to join
ARIIX, the multilevel marketing company founded by Fred Cooper and operated by the other three ex-USANA executives who resigned in May. USANA is falling apart and stock analysts covering USANA don't seem to have the shareholders in their best interests.
After some research, I have compiled a list of USANA distributors that have decided to join ARIIX (bottom of this posting). The list is incomplete since neither company publishes who their distributors are (so secretive). Most of the USANA distributor ranking I show below are as of October of 2010. I do not have any recent information of their rankings and USANA has taken great strides at keeping the information a secret.
2 - 5 Star Diamond Director
1 – 4 Star Diamond Director
*1 - 3 Star Diamond Director
2 – Diamond Director
1 – Ruby Director
2 – Gold Director
7 – Silver Director
1 – Bronze Director
1 – Director
2 – Achiever
6 – Builder
4 – Believers
3 – Sharers
*(Revised October 25, 2011: I must at one more 3-Star Diamond Director, Robert & Daryl Allen)
Five Six Diamond Directors are what I would consider KEY ASSOCIATE LEADERS. Many of the others were part of one of these key associate's “sales organization” and left USANA to
follow their leader. These key leaders have been plastered all over USANA's website, sales material, training material and all over YouTube promoting USANA's business model and its product. However, these Diamond Directors left USANA even before ARIIX launched, which gaurantees these members key positions in the ARIIX compensation business model. This really says a lot about USANA's products and doesn't bode very well for the company. Also doesn't help that
Dr. Ray Strand left USANA to join ARIIX. Recently
Liz Strand (Ray's wide) had her USANA distributor page shut down as well.
That's not all. USANA terminated a couple of these key leaders (
Lynn Allen Johnson &
Duke Tubtim) when they were reported to USANA executives for being on a conference call with ARIIX and other interested individuals who wanted to find out more about ARIIX. Many should be very familiar with a recent 2008 arbitration that
awarded an ex-USANA distributor $7,000,000 for being wrongfully terminated back in 2003. Well, now we are talking about a couple star-diamond directors that USANA terminated just a few months ago. So where are stock analysts on this issue?
Now I want to make a little prediction, but first I have to make the following very clear. I have no financial position on USANA's stock or any competitor to USANA. I have never traded USANA stock and never plan to. No one is paying me to write anything about USANA. I am volunteering my time to educate people. I do not like to see people lose their hard earned money because they were deceived or misled.
With that said, I believe USANA's active associate numbers will decline across most of their territories, with
China being the exception. If USANA's own SEC filings state that “
the loss of a key Associate leader or that Associate’s downline sales organization would adversely affect our net sales and our overall operating results. ” Notice it doesn't use the term “might”,“maybe” or “possibly”. It states it “would” adversely affect their overall operating results
The following is a list I have compiled of USANA distributors who have joined ARIIX.
USANA Distributor #133412 - Lynn Allen Johnson -
5 Star Diamond Director
ARIIX Distributor #10146 - Lynn Allen Johnson - Vision is Power Inc.-
http://www.myariix.com/lynnallenjohnson
USANA Distributor #2119355 - Duke Tubtim -
5 Star Diamond Director - Millionaire Club
ARIIX Distributor #10198 - Duke Tubtim - Kaizen Support Group Inc. -
http://www.myariix.com/Kaizensupport
USANA Distributor #2111980 - Timothy Lewis -
4 Star Diamond Director - Millionaire Club
ARIIX Distributor #10138 - Timothy Lewis - 4DL Enterprises Inc. -
http://www.myariix.com/4dl
USANA Distributor #33009 - Robert & Daryl Allen -
3 Star Diamond Director -
http://robertallen.usana.com
ARIIX Distributor #213647 - Robert Allen -
http://www.myariix.com/robertallen
USANA Distributor #295671 - Steve and Myrna Swartz -
Diamond Director - Millionaire Club
ARIIX Distributor # 10168 - Steve Swartz - Have it All, Inc. -
http://www.myariix.com/steve
USANA Distributor #3053770 - Iris Lee - Team ASD –
Diamond Director -
http://teamasd.usana.com/
ARIIX Distributor #10228 - Iris Lee - IS Health Enterprises Ltd. -
http://myariix.com/teamasd
USANA Distributor # - Sandy LV -
Ruby Director -
ARIIX Distributor #19176 - Sandy LV -
http://www.myariix.com/sandy
USANA Distributor #2127139 - Tatyana Sutherland -
Gold Director -
http://www.usana.com/webhosting/tatyana
ARIIX Distributor #11188 - Tatyana Sutherland
USANA Distributor #2765838 - Tracee Gluhaich -
Gold Director -
http://truehealthintl.usana.com/
ARIIX Distributor #18696 - Tracee Gluhaich -
http://www.myariix.com/truehealthintl
USANA Distributor #3216982 - Phyllis Goodman -
Silver Director -
http://health4lifeinc.usana.com/
ARIIX Distributor #10847 - Phyllis Goodman -
http://www.myariix.com/phyllisgoodman
USANA Distributor #2137359 - Glenna and Richard Norris -
Silver Director
ARIIX Distributor #59886 - Glenna and Richard Norris, CHHC -
http://www.myariix.com/gnr
USANA Distributor #3704262 - Randy "Yosef" Katz -
Silver Director - Sabai Marketing Group
http://www.usana.com/webhosting/sabaiARIIX Distributor #10247 - Randy "Yosef" Katz - Sabai -
http://www.myariix.com/esuite/home/sabai
USANA Distributor #86832 - John & Carol Cliffe -
Silver Director -
http://riskfree.usana.com/
ARIIX Distributor #11327 - John Cliffe -
USANA Distributor#2811720 - David & Monica Rendon -
Silver Director -
http://www.achievinghealth.usana.com
ARIIX Distributor #42887 - David & Monica Rendon -
http://www.myariix.com/rendon
USANA Distributor #2554180 - Marlisa Hurt -
Silver Director -
http://www.usana.com/webhosting/marlisa
ARIIX Distributor #33636 - Marlisa Hurt
USANA Distributor #2320280 - Jean Amicarella -
Silver Director -
http://www.usana.com/webhosting/jeana
USANA Distributor #3669898 - Jean Amicarella -
Sharer -
http://www.usana.com/webhosting/jeanamic (Yes, two USANA IDs with separate websites for this unique distributor)
ARIIX Distributor #17766 - Jean Amicarella -
http://www.myariix.com/ariixinfo
USANA Distributor #128089 - Larry & Susie Sisson -
Bronze Director -
http://www.usana.com/distWeb/site/sisson
ARIIX Distributor #10547 - Larry & Susie Sisson -
http://www.myariix.com/myfreedom
USANA Distributor #244097 - Arlene Hutchinson -
Director -
http://www.usana.com/webhosting/bhealthy2
ARIIX Distributor #11578 - Ennis Hutchinson -
http://www.myariix.com/marketing
USANA Distributor #3940012 - Pollawat Pankam -
Achiever
ARIIX Distributor #11357 - Pollawat Pankam -
http://www.myariix.com/esuite/home/username/
USANA Distributor #2398784 - Maryann Cady -
Achiever -
http://www.usana.com/webhosting/maryanncady
ARIIX Distributor #38008 - Maryann Cady -
http://www.myariix.com/maryanncady
USANA Distributor #3936760 - Somboon Pongpruk -
Builder -
http://how2success.usana.com/
ARIIX Distributor #11376 - Somboon Pongpruk -
http://www.myariix.com/esuite/home/online
USANA Distributor #3909038, 4112764 & 4380414 (
Builder) - Anh Vongbandith -
http://www.dreamsmadeinc.usana.com/
ARIIX Distributor #12816 - Anh Vongbandith -
http://www.myariix.com/DreamsMadeInc
USANA Distributor #3250998 - Melissa Daniels -
Builder -
http://www.usana.com/webhosting/mdaniels
ARIIX Distributor #11496 - Healthy 4 Life, LCC - Melissa Daniels -
http://www.myariix.com/healthy4life
USANA Distributor #2479038 - Lucia Sanchez -
Builder -
http://www.usanamexico.usana.com
ARIIX Distributor #34596 - Lucia Sanchez -
http://www.myariix.com/ariixmexico
USANA Distributor #4202538 - Ed Walls -
Builder -
http://teamwalls.usana.com/
ARIIX Distributor #15538 - Edward Walls -
USANA Distributor #4086676 - John R. Parke -
Builder -
http://4086676.usana.com/
ARIIX Distributor #11507 - John R. Parke
USANA Distributor #4154550 - Rick & Cynthia Evans -
Believer -
http://cevans.usana.com/
ARIIX Distributor #10896 - Rick & Cynthia Evans -
http://www.myariix.com/rickevans
USANA Distributor #4446386 - Irv Segal -
Believer -
http://irvsegal.usana.com/
ARIIX Distributor #21328 - Irv Segal -
USANA Distributor #4353344 - Loredana Nuñez -
Believer -
http://healthytime.usana.com/
ARIIX Distributor # - Francisco & Loredana Moreno -
USANA Distributor #4387858 - Ric & Carmen Goodson -
Believer -
http://ricandcarmen.usana.com/
ARIIX Distributor #11387 - Ric & Carmen Goodson -
http://www.myariix.com/carmengoodson
USANA Distributor #3076606 - Angie Lee -
Sharer
ARIIX Distributor #17818 - Angelica Lee -
http://www.myariix.com/angielee
USANA Distributor #4202828 - Sou Fin Saechao -
Sharer -
http://4202828.usana.com/
ARIIX Distributor # - Sou Fin Saechao
USANA Distributor #3914138 - Jidbhong - Jayavasu -
Sharer -
ARIIX Distributor #56076 - Dr Jidbhong Jayavasu -
http://www.myariix.com/dr_jay
USANA Distributor #7662974 - Edward Williams -
http://m3ister.usana.com/
ARIIX Distributor #12996 - Edward Williams -
http://www.myariix.com/esuite/home/m3ister/
USANA Distributor #2926598 - Rick Billings -
http://www.usana.com/distWeb/site/rickbillings
ARIIX Distributor #10727 - Rick Billings -
http://www.myariix.com/RickBillings
USANA Distributor #2812402 - Mike Delevante -
http://www.usana.com/distWeb/site/miked
ARIIX Distributor #10817 - Mike Delevante -
http://www.myariix.com/mikedelevante
USANA Distributor #8297220 - Debbie Turner -
http://turner.usana.com/
ARIIX Distributor #20916 - Debbie Turner -
http://www.myariix.com/turner/
USANA Distributor #9638662 - Susan Hamilton -
http://www.usana.com/webhosting/susanhamilton
ARIIX Distributor #34007 - Susan Hamilton, CHHC -
http://www.myariix.com/SusanHamilton
USANA Distributor #9202660 - Chad zinda -
http://www.usana.com/webhosting/9202660
ARIIX Distributor # - Chad Zinda
USANA Distributor #9613734 - Lyn Clark -
ARIIX Distributor #37967 - Lyn Clark
USANA Distributor #7016988 - Emery Krahn -
http://www.usana.com/webhosting/emery
ARIIX Distributor #36707 - Emery Krahn -
http://www.myariix.com/emery