USANA Health Sciences, Inc. (USNA) appears to have misled shareholders during their fourth quarter 2012 earnings conference call on February 6, 2013 as well as several other calls in the past.
When USANA purchased BabyCare Ltd. in August 2010 (an already established direct selling (single level marketing) company in mainland China) it added 12,000 Active Associates and 7000 Active Preferred Customers to USANA's "Greater China" region. Over the last couple years USANA has attributed any of Hong Kong declining active associates to BabyCare, claiming that leaders would re-evaluate where to go (USANA Hong Kong, or China BabyCare).
Today (over two years later), BabyCare has about 17,000 Active Associates and about 2000 Active Preferred Customers. That's a net gain of ZERO customers since USANA purchased BabyCare! So all this talk about BabyCare being a hot market is simply untrue. All this talk about BabyCare siphoning off Hong Kong distributors was a farce. Truth be told, BabyCare is an utter failure and has virtually no growth.
I have datamined USANA's BabyCare distributor IDs and found there to be 38,000 issued ID numbers as of September 2012. If there are only 17,000 active associates in Babycare right now, then over half of all the associates recruited in BabyCare have quit since USANA purchased them.
As for Preferred Customers, what a utter failure. USANA doesn't explicitly state what the figure is this quarter, but since there are 4000 total preferred customers in Greater China, it seems like a safe bet that BabyCare accounts for 2000 active preferred customers. If this figure is accurate, then Babycare has lost 70% of their active preferred customers.
That's a huge problem if Active Associates in Babycare are required to have a certain number of customers to be qualified to earn a commission check.
What is hot right now is the growth in Hong Kong, which is largely attributed to Chinese Nationals from mainland China being illegally recruited into USANA's MLM Hong Kong market (instead of in BabyCare). They are recruited from mainland China and put in USANA under an address from someone living in Hong Kong. This way Auditors, shareholders, and federal regulators can be fooled. USANA allows this to happen and even has a policy set up that allows for over 15 distributors to share the same home address and the same credit card when signing up with USANA.
Stock analysts refuse to address these BabyCare issues with USANA and really don't seem to have a clue about what USANA is doing in China.
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So what do you suppose we do? You have shared very important information that clearly proves Usana is a scam and has massive illegal operation in China. Yet share holders and ftc don't seem to hold company accountable nor demand answers to some of their unethical business practices. It looks like everyone turns a blind eye and as long as share holders see profit on stock, that's all they care about.
ReplyDeleteHoping that one day company is held accountable and has to give money back to the thousands of distributors who spent so much money on the business yet failed.
Spread the word. Educate others. If you are out somewhere and someone actually mentions USANA, you can tell them you know all about USANA and their pyramid scheme designed to enrich 1% of participants off the backs of the remaining 99% who never make a profit.
DeleteStock Analysts are not going to ask any hard questions because they are cheerleaders for USANA. Stick me on the conference call and I'll ask plenty of questions USANA would refuse to answer. That alone would send a loud message. I doubt they would even let me on the line anyway.
Helping people, rather than affair with married man when wife knows, or instead of selling them something, can really help you in network marketing. Do not talk about how great your product is. Instead, explain how a person can benefit from it. This will greatly enhance the appeal of the product.
ReplyDeleteThis is a very odd blog. Hammering on a company that has helped millions of people many who were facing financial desperation seems somewhat misdirected. I'd suggest going after all of the corporations and small businesses where you have a CEO or a boss who makes a great deal more than all of the good little employees and always will. Believe me I know. I spent 22 years working for a small business and never ever had a chance to earn more than the boss. I filed my W-2 annually and after real estate taxes, personal property taxes, and income taxes nearly 50% of my income was gone. Corporate America is the scam.
ReplyDeleteUSANA has not helped millions of people. They have only helped a few thousand even make a profit over the course of 21 years that USANA has been in existence. The millions of people you mention never even made a profit. Instead, they lost money in order to enrich the few thousand did make a profit. This is how a pyramid scheme works. between 90% and 99% of the participants LOSE money while the top 1% make money off the fees made by the lower 90-99%.
DeleteAs far as your misunderstanding on how corporations and small businesses work, don't you realize that every single employee (that's right, 100%) all make a profit. If you somehow think the janitors should make as much if not more than the CEO of the company they work for, then you are on the wrong planet. I'm sorry, but if you spent 22 years working for a small business and never managed to work your way up to a higher position that paid a decent amount, that is your own fault. If you think you should earn more than the CEO or boss, then you should go find a job somewhere in China and complain.
Not sure why you are complaining about real estate taxes, personal property taxes, and income taxes because you would still have to pay that if you were a USANA distributor as well.
Explain how USANA has helped millions of people where many were facing financial desperation. Explain to me how millions of people are better off losing money rather than at least making minimum wage of $7.25.
The only people who lose money with USANA are those who are simply too lazy to take advantage of all of the benefits. I will make this very simple for you to understand. Product Savings: If you replace food, skin care products, etc that you are currently using with USANA products you will save money each month. We save on average $200 on those products.
ReplyDeleteTax Savings: the average person with a home based business will save $400 a month on their income taxes. (Read Sandy Botkin, former IRS agents and you will learn how)
Health Care Savings: If a family has any health issues and they begin using USANA they will see significant savings including a potential to reduce their insurance premiums like we did. All in all we save somewhere between $900-$1100 each and every month as a result of USANA's products and the business (and Yes this includes the cost of purchasing the products). So you see before you ever even earn a check you are well ahead of where you would be otherwise. Now there will always be a place for the person who wants to be an employee but many of us choose to live life on our own terms and no company on this planet has helped more people achieve that then USANA.
USANA Associate Claims: The only people who lose money with USANA are those who are simply too lazy to take advantage of all of the benefits.
DeleteI love when USANA associates claim the reason people lose money in USANA is because they are lazy. 99% of USANA associates have lost money in USANA. That's about 1,500,000 lazy (as you put it) USANA associates that have LOST money in USANA's pyramid scheme. And guess who recruited these "lazy" people?
USANA Associate Claims: Product Savings: If you replace food, skin care products, etc that you are currently using with USANA products you will save money each month. We save on average $200 on those products.
Not so. USANA products are much more expensive than similar products found in retail outlets. This is because about 45% of the cost is used to fund a pyramid scheme that enriches a 1% off the backs of the remaining 99%. If USANA sold their product in retail stores, the prices could be cut in half and widely available to everyone. And best of all, there would be no pyramid scheme to financially ruin millions of people. How do you save $200 by purchasing USANA products, by deducting it?
USANA Associate Claims: Tax Savings: the average person with a home based business will save $400 a month on their income taxes. (Read Sandy Botkin, former IRS agents and you will learn how)
The tax benefits are only a fraction of the expense. The tax deductions are only good if you have a source of income to deduct them from and the tax benefit is only equaled to the tax saved.
USANA Associate Claims: Health Care Savings: If a family has any health issues and they begin using USANA they will see significant savings including a potential to reduce their insurance premiums like we did.
This is not true. Explain how USANA will save a family money as well as how USANA will reduce their healthcare premiums. USANA makes no mention of this.
USANA Associate Claim: many of us choose to live life on our own terms and no company on this planet has helped more people achieve that then USANA.
Tell that to the 1.5 million USANA distributors who no longer purchase USANA products and lost money participating in USANA's pyramid scheme.
Reality is, you have about 20% chances to make a profit, or at least pay for what you consume. The rest of this post is just negative propaganda. And about paying half if it would be sold retail, clearly wrong. The move to a supply chain at retail adds extra costs and the retailer will add its own markup. Not to mention lower sales at retail. Retail is not about quality...it is about marketing and low costs. Just look at the big yellow price signs with 6.99 for 250 tablets.
DeleteAnyone who is upset about failing at direct sales clearly had no idea what's required/what are the chances to succeed, and went in for the wrong reasons: quick money and no consideration for the product. My advice, if you find that the product is not beneficial to you, or you do not have the means to afford the product, do not get into this business. Most of the negative feedback is given by the people who claim they were "brainwashed" or forced to join. This blog should clearly indicate the reality of the direct selling, in a clear unbiased way, and clearly not through a negative propaganda with half or bended thruths which only serve to mislead the majority of the people. I can fairly say that you are now "brainwashed" by this anti-Usana blog. Your opinion of Usana becomes irrelevant, you are being influenced by the biased opinion of watch dog. Not once, watch dog agreed, or made concessions to an opinion contradicting his. In other terms, this is the opposite of Usana cult, it is an anti-Usana cult.
This blog is about presenting facts.
DeleteDo you think USANA reps present facts when they try to recuit prospects? Do they talk of the failure rates and explain that USANA is really a product-based pyramid scheme where money is made by recruiting?
No? Well, this blog is about giving the general public the flip side of the coin.
Lies are told by associates to generate sales and recruit new distributors.
It is hardly about presenting facts. Read the comments in the recent messages posted by watch dog.
DeleteI agree with you on the point that some associates are using questionable tactics. They are just bad marketeers who end up creating bad public relations and frustation for the people who think they'll become rich and live happily ever after. Watch Dog is employing the same tactics that those bad marketeers employ: overblown facts and the use of whatever it takes to flip the coin in its favour.
Watchdog claim "....This is because about 45% of the cost is used to fund a pyramid scheme that enriches a 1% off the backs of the remaining 99%."
Deleteplease check from ebay, the most acceptable price on ebay, e.g. Essentials is over $40. if it's overprice, how come so many buyers still want to pay this price. looks these buyers are happy to accept this 45% overpricing price.
Also, as tax advantage, it will happen when you pay tax to IRS. because IRS is asking if you are running a business, it's not asking are you make money at the beginning. as long as you treat as business. the expense will against to your tax income and have the tax deduct. and there are a lot of expenses you can claim when you running a small business, like your home office, your car expense, phone bill, gas bill, electricity. even your TV, camera, even your holiday trip. as long as you can prove them it is related to your business. you can deduct from your income.
I think it's good that Watchdog has set up this blog so there are now 2 sides of the story.
ReplyDeleteAnd a forum for people to voice their concerns.
It is the way that this blog is set that I question.
DeleteThis blog is clearly biased. Considering that a recent US analysis of small business success rates reported on statisticbrain.com suggests that 25% of small businesses fail in the first year, 36% fail by year 2 and 44% fail by year 3. Furthermore 80% of retail outlets close within 5 years. I am sure you can see that happening around you today. Look at the investment they put into starting their business then see the losses.
ReplyDeleteThe direct selling industry (of which USANA is a part of) has progressed this year by 5.4% to see global sales of $166,864 million dollars. These document show the trends in each country world wide
http://www.wfdsa.org/files/pdf/global-stats/Sales_and_Community_2012.pdf.
http://www.wfdsa.org/files/pdf/global-stats/2012_Fact_Sheets.pdf
Notice that the most product sold in this manner is in the Cosmetics 35% and Wellness 25% industries. Why because people you try them suggest them on.
In the modern economic climate the 89.7 million individuals who represent Direct Selling companies around the world are: Career‐minded entrepreneurs who build their own businesses marketing the products/services of a Direct Selling company
with which they have an agreement or contract or part‐time micro‐entrepreneurs who earn extra income by doing so.
Those seeking new skills, who join for the training and retraining.
Those seeking new contacts, greater self‐esteem, and those who want to give back to the community through the many Direct Selling social responsibility initiatives.
Of this diverse group, many were customers of the products/services prior to becoming a company representative. All enjoy significant discounts on products and in fact, some choose only to enjoy and use the discounted products and decide
not to sell them at all.
So considering all of this USANA is an outstanding company with science based products and has been steadily expanding their markets into 19 countries.
When recruited, as in any business, there is a clear training and realistic goals identified. Each individual is given clear goals and expectations of earning based on full time or part-time involvement.
You can say that optimal growth occurs at the border of support and challenge.
USANA has a great support network and rewards those who take on the challenge to achieve their goals!
USANA has now experienced 10 consecutive years of record sales.
The world has seen a lot of change in the last 10 years. Bursting bubbles. Global recession. Fluctuating currencies. But one constant at USANA is that they keep getting better with age. Net sales for 2012 were $648.7 million—an increase of 11.5% over the previous year. In addition, net earnings increased 30.9% over 2011, for a total of $66.4 million.
I am proud to be a member of this fantastic company!
Of course this blog is biased. I never claimed not to be. I an biased toward the truth, which is something USANA tries to cover up.
DeleteUSANA member claims: Considering that a recent US analysis of small business success rates reported on statisticbrain.com suggests that 25% of small businesses fail in the first year, 36% fail by year 2 and 44% fail by year 3. Furthermore 80% of retail outlets close within 5 years. I am sure you can see that happening around you today. Look at the investment they put into starting their business then see the losses. The direct selling industry (of which USANA is a part of) has progressed this year by 5.4% to see global sales of $166,864 million dollars.
You've got to be kidding me, right? The issue is not USANA Corporate failure rates. The problem are distributor failure rates. 99% of USANA distributors make no profit. 80% drop out in their first year. About 95% of distributors drop out by their fifth year.
Watchdog, in case you haven't noticed, he's comparing business to business. And your numbers yet again don't make sense and are in contradiction with your other posts...but you still use them regardless. In another post, you just stated that in any given year 1% make thousand and hundreds of thousands of dollars and, based on your table posted, about 10% make a couple of thousands....this doesn't add up to 1% in any given year. Force of habit right?
DeleteOh and 80% drop out in any given year, this is just funny. Beware of the end of 2013! 80% will be eliminated! Oh, the company will still have growth somehow. 81% will join in 2014!
Cool stuff!
BTW, I love the products. I don't believe you have some numbers on this right? Such as, 1% is just an infatuation that will surely pass, or 1% is just love for placebo effect, or 99% of the people have been brainwashed into loving them.
As a disclaimer, and I always love writing this down, I am not an associate, I am just a user of the products which hasn't been brainwashed and who is not pissed of having failed a business. This blog wouldn't believe that such thing exists. I'm maybe into that other 1% that watchdog failed to disclose yet.
In response to "Watchdog, in case you haven't noticed, he's comparing business to business."
DeleteHe is not comparing "business to business". He attempted to compare business to a multilevel marketing pyramid scheme. He claims 25% of small businesses fail in the first year. However, 99% of USANA distributors fail in the first year. And 80% drop out in their first year.
In response to "In another post, you just stated that in any given year 1% make thousand and hundreds of thousands of dollars and, based on your table posted, about 10% make a couple of thousands....this doesn't add up to 1% in any given year. Force of habit right?"
The table posted falsely shows associates in every leadership level from Sharer to Star Diamond Directors making thousands of dollars per year. That is a false and misleading document that USANA releases.
USANA gives the "% of everyone" for each leadership ranking. Make a new column with the actual number of associates that USANA represents in that table. Then multiply each of those numbers by the corresponding "annual average" commission paid. You will find just how incredible USANA misleads the public. If you do what I told you, you will find that USANA would have to pay out about $300 MILLION in commissions for the North American region. However, we know that can't be the case because USANA said the average is $616.72 for the 135,590 associates counted in the report which comes out to a total of $83.6 million.
Don't you think that it is grossly misleading and deceptive to show that table to someone you are trying to recruit?
In response to "Oh and 80% drop out in any given year, this is just funny. Beware of the end of 2013! 80% will be eliminated! Oh, the company will still have growth somehow. 81% will join in 2014!"
Interesting that you mock this point. 80% of distributors drop out within one year of joining. If USANA increased the number of "active associates" year over year, then USANA must recruit enough new associates to replace those that leave and then some. This is how a pyramid scheme operates. It is an endless chain of recruiting. You think it's funny. I think it's a crime.
In response to "As a disclaimer, and I always love writing this down, I am not an associate, I am just a user of the products which hasn't been brainwashed and who is not pissed of having failed a business. This blog wouldn't believe that such thing exists. I'm maybe into that other 1% that watchdog failed to disclose yet."
Only 10% of USANA's sales are to preferred customers. So what? I talk about preferred customers in many of my postings. You haven't stated whether you are a preferred customer or not. You simply claim you use the products and not a distributor. So your spouse is the distributor? Perhaps your mom? Or perhaps you are a preferred customer? Who knows, you haven't said...
If not about the lazy. so could you name one company or business here is not scam? and what opportunity can really work for 99% people?
ReplyDelete