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.
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.
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