Dan Macuga just revealed that USANA has 175,000 associates in the Philippines since they opened there in early 2009. Would USANA care to disclose the current number of "active associates" for their Philippines market? We know it can't be more than the total East Asia Pacific region which they claim has 60,000 active associates as of the end of Q2-2013. I'll remind you that East Asia Pacific is made up of the following territories: Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand."We have an incredible USANA family of more than 175,000 strong in the Philippines," said Dan Macuga, USANA chief communications officer. "Their courage and goodness inspires our global team. That's why we feel it so important to help them and all those suffering in the aftermath of Super Typhoon Haiyan." - USANA Press Release
I believe USANA's Philippines active associate numbers for their latest quarter would be somewhere around 17,000. This would reveal that 90% of their associates stopped purchasing USANA product and quit the business opportunity. This should be a clear indication of the real effectiveness of USANA's products, the MLM business model, and how much their associates really love popping the pills. Most of USANA's markets are saturated and unable to recruit more associates than drop out.
Investors and stock analysts should demand that USANA disclose the active associate numbers for each territory rather than just 3 regions. USANA used to disclose that information but no longer feels their shareholders deserve to see the whole picture. Stock analysts have repeatedly asked USANA the number of active Babycare Associates during conference calls and every time USANA refuses to disclose the figures.
It seems USANA would rather operate their publicly traded company in an Enron sort of fashion. Only disclose what doesn't reveal the truth about the numbers.
Just to be exact...what guarantee do we have that you are not a disgruntled former Usana director who got kicked out for illegal activities and is now bent on vengence. I have a hard time with someone spending its hard earned cash for tarnishing a company image as a hobby, even if that hobby, as you eloquently put it, may save 1 person money.
ReplyDeleteYou have no guarantee. Only my word. You can call USANA and ask them and they will tell you whether or not I was ever a distributor.
DeleteSome people volunteer their time to help others. That is what I am doing here. If you think I'm tarnishing USANA's image, then tell me what I have written that isn't true.
A debate of interpretable facts/opinions where each of them may have their share of truth would be pointless to use as a decision factor between USANA is good or USANA is bad.
DeleteI suggest you set a simple survey: Did you take USANA vitamins ? Rate your experience (not your sale or money making experience, nor if the product is expensive or not)...just the product itself. And no comments to deviate the survey.
Afterall, the center of any company is the product, any market/sale/profit opportunity is just an added bonus, and if I may add, without any guarantee of success.
Internet surveys are flawed because the same individual can fill out the survey as many times as they want. USANA products are no better at filling ones deficiency as most other vitamin manufacturers because they use primarily the same raw ingredients. Besides, why bother with the survey. The product is garbage and the fact around 90% of all distributors that have ever joined USANA no longer purchase the product, which is a testimony of the product.
DeleteUSANA's pyramid scheme is the center of the company, NOT the product. The product is merely a disguise and purchased as tokens to participate in the pyramid scheme. USANA would not exist if it were not for the deceptive and misleading tactics used to recruit new distributors.
Well, you should grant the benefit of doubt. We are in a democracy after all, at least most of us.
DeleteA link to SurveyMonkey could be a good start.
If you live in the United States, then you live in a "republic", not a democracy. I wish the public school system here would do a better job with such basic things as this...
DeleteCheap shot on semantics.
Deletey popular usage, however, the word "democracy" come to mean a form of government in which the government derives its power from the people and is accountable to them for the use of that power. In this sense the United States might accurately be called a democracy.
And...you are further avoiding to put yourself in a vulnerable position where the results may go against your convictions.
Watch Dog you are really making yourself look like an uneducated, uninformed, bitter individual. USANA Does Not use the same materials as other companies. USANA is the only company known to test the raw materials before production. USANA is also the only company that offers a 100% Purity & Potency Guarantee as well as a $1 Million Dollar Athlete Guarantee. Every single batch of products is tested for Dissolvability, Absorbability, and Bioavailability. I have been to the Facility and I have watched this process. I'm betting you haven't. Now, if USANA's products are no better than any other then answer me why after using dozen's of different nutritional wellness products I still had all of my health issues but after just a few months of using USANA's products I was able to get rid of my asthma, allergies, tendonitis, and acid reflux. I wont even get into the more than 200 people that I personally have helped beat diseases and issues such as Fibromyalgia, Arthritis, Autism, ADHD, Diabetes, and many more. Was that just luck? 200 people? Really? OK my "Arguing with idiots" moment is over.
DeleteThis is just sick. You should never make such health benefit claims.
DeleteUsana's products, as stated by the company, are "not intended to diagnose, treat, cure, or prevent any disease."
Stop making these claims!!! It makes me so angry that you people would lie just to make a buck like this.
USANA associate claim: USANA Does Not use the same materials as other companies.
DeleteNot true. The raw ingredients are the same. USANA is not using some unique specialized form of vitamin D. Vitamin manufacturers get their raw ingredients generally from the same suppliers. My point here is, USANA is not adding in any "magic" that differentiates their products from others in the supplement industry.
USANA associate claim: USANA is the only company known to test the raw materials before production.
Not true. Who is telling you such nonsense? Almost every company tests their raw ingredients before using them. It's called incomming inspection. Do me a favor and name at least two vitamin manufacturers that don't test their raw materials before using them.
USANA associate claim: USANA is also the only company that offers a 100% Purity & Potency Guarantee.
Quoting from Wikipedia "Legally, the United States Food and Drug Administration allows a multivitamin to be called "high potency" if at least two-thirds of its nutrients have at least 100 percent of the DV." - http://en.wikipedia.org/wiki/Multivitamin
USANA's Essentials are not 100% potent. The following falls short of the daily Dietary Reference Intake in the USANA Essentials.
vitamin K is 90%
Magnesium is 70%
Calcium is 30%
Molybdenum is 70%
Therefore it is not accurate for USANA to claim "100% potency" unless USANA has a different definition of "potency".
USANA Associate claim: $1 Million Dollar Athlete Guarantee
So what? And are you aware that those part of the athlete program get a different type of USANA product than everybody else? USANA performs additional steps to screen for WADA banned substances before product gets shipped to those athletes that are part of the program. This means the product you and the rest of USANA distributors receive might actually contain these banned substances because they did not go through the additional screening.
USANA associates want everyone to believe that ALL the products USANA makes comes free of WADA banned substances when it comes off the manufacturing line and packaged up. That's not true. Only those products specifically sold to those individuals in the athlete guarantee program are guaranteed not to have the WADA banned substances.
I can just as easily make the argument that most vitamin manufacturers that sell product to professional athletes are confident enough that all their products being manufactured are free of WADA banned substances and therefore don't have to bother having some ridiculous guarantee that would pay two times the annual sports earnings up to a maximum of $1,000,000. Perhaps the fact that any negative publicity regarding an athlete failing to pass the banned substance test would be enough for most vitamin manufacturers to keep the banned substances out of their products.
Either way, it's good that USANA only sells NSF certified product free from WADA banned substances to the professional athletes part of the program. However, shouldn't USANA be doing that for all of their customers? Here is the list of WADA banned substances for everyone's reading.
USANA Associate Claim: Every single batch of products is tested for Dissolvability, Absorbability, and Bioavailability.
DeleteSo what? That's called quality control and most companies have such processes in place. Again this is nothing unique. Give me the names of two vitamin manufacturers that do not test every single batch for dissolvability, absorbability and bioavailability.
USANA Associate Illegal Health Claims: Now, if USANA's products are no better than any other then answer me why after using dozen's of different nutritional wellness products I still had all of my health issues but after just a few months of using USANA's products I was able to get rid of my asthma, allergies, tendonitis, and acid reflux. I wont even get into the more than 200 people that I personally have helped beat diseases and issues such as Fibromyalgia, Arthritis, Autism, ADHD, Diabetes, and many more.
WOW, so you are now claiming that you took over 24 different nutritional supplement products and none of them cured your health problems. But while taking USANA products you were cured of your asthma, allergies, tendonitis, and acid reflux. Problem is, you fail to abide by the law and even USANA's own policies. Why? It is against the law for someone who is selling vitamin supplements to make those health claims because they are unsubstantiated.
USANA's Policies and Procedures 3.4.1 states the following:
3.4.1
Product Claims
USANA Associates may not make claims that USANA products have therapeutic or curative properties except those contained in official USANA literature. In particular, no Associates may make any claim that USANA products are useful in the cure, treatment, diagnosis, mitigation, or prevention of any diseases. Such statements can be perceived as medical or drug claims. Not only are such claims violative of the Associate Agreement, but they also violate the laws and regulations of the United States, Canada, and other jurisdictions.
However, many USANA distributors such as yourself can't resist the urge to break the law in order to grow their business. When you find scientific proof, then you can legitimately make those claims. If you weren't a sales rep for USANA and was only a customer, then I would have no problem with your health claims because it wouldn't then be used to influence others to buy your product or sign up in your downline.
Autism? ADHD? Arthritis? Diabetes? Fibromyalgia? You better hurry up and apply for the nobel prize or tell the world you know how to cure these health issues so people can stop wasting billions trying to figure out how to cure them.
Wow. Blown out of proportion because 1 guy can't manage the message properly...associate or not, making thoses claims is bound to get a bunch of revolts. Now, as far as if you feel better after taking Usana products, you can test this yourself. Worst case scenario, you spent 60 dollars...and saved yourself the headache of all this negative postings.
DeleteLook, I have seen many friends suffer from MLMs whether they be Amway, Herbalife or USANA.
ReplyDeleteMy boyfriend got persuaded into USANA and after I started investigating all their claims I found that it was all rubbish. The products are not unique and making money in this pyramid scheme requires recruiting and selling the dream of getting rich.
99% of associates do not profit unfortunately. That is simply the compensation and business model if you do the maths.
Thank you Watchdog for this blog. No doubt you have saved people a lot of money of the years, and hopefully woken a few up who were under the USANA trance.
So...I take your investigation was blogs and your maths was well, blogs again.
Delete"you have saved people a lot of money"...and potentially denied them of an improved quality of life in the process. I think this point balances out if you do the math. ;)
Sarah, I am sorry you and your boyfriend were not successful helping others, but your claim that USANA's products are not unique couldn't be more incorrect. The fact that I am a health professional I have a great deal more expertise in this area than yourself. Our facility has helped hundreds of people over the past 3 years improve their health and beat whatever health issues they have had. We had previously tried over a dozen different companies with little to no success. USANA is far superior to anything else on the market and will change peoples' lives. Now as far as the business, I can't imagine anyone failing in a business where all you have to do is talk to people. The products sell themselves all you have to do is open your mouth. Again, I am sorry it didn't workout for you but if you ever find yourself with a health condition that your doctors are not able to help you with, I would highly encourage you to seek out a USANA distributor and get their help.
DeleteBro, you gotta be out of your mind...
DeleteAre you saying these synthetic vitamins are wonder pills?
USANA has had 1.5 million distributors (who are also users) in the past 20 years. There are like 60,000 preferred customers at the moment. What does that tell you? More than 95% of former users have stopped using the products completely after they've quit the "business".
Oh, and the comparative guide is a joke.
I do not want to debate the failures or riches. I am simply talking about rating the experience of the people with the product, through a very simple survey.
ReplyDeletego ahead and do a survey. I suggest including the 1.5 million ex-USANA associates in the survey as well.
DeleteAs I read this entire post I am shocked. First of all that a blogger (watch dog) would waste so much time talking about something he/she knows nothing about. As a pharmacist I can tell you that there is a night and day difference between USANA's products and most of the others. There are only a hand full of nutritional supplement companies out there that manufacture their products to the GMP of the pharmaceutical industry and USANA is one of them. All of these companies use the direct sales business model to get the highest quality product to the public at the lowest cost. I just hope that anyone who actually reads these post does some serious research before they go believing this garbage.
ReplyDeleteUSANA Associate Claims: As a pharmacist I can tell you that there is a night and day difference between USANA's products and most of the others.
DeleteI agree! The cost.
USANA Associate Claims: There are only a hand full of nutritional supplement companies out there that manufacture their products to the GMP of the pharmaceutical industry and USANA is one of them. All of these companies use the direct sales business model to get the highest quality product to the public at the lowest cost.
There is no benefit to the user that nutritional supplement products are manufactured according to Pharmaceutical Good Manufacturing Practices. This is only a sales gimmick and is why you only find MULTILEVEL marketing (not to be confused with direct selling) companies use. MLM companies try to use this manufacturing process to justify the exorbitantly high price for their products when in fact the only reason it is expensive is to pay fund the commissions used to enrich the top 1% of distributors in the pyramid scheme. If you think a nutritional supplement is "better" for people because they are manufactured using the same processes as a drug company, then you are not a very good pharmacist in my opinion.
USANA Associate Claims: I just hope that anyone who actually reads these post does some serious research before they go believing this garbage.
All they need to do is ask their doctor, not a snake-oil salesman peddling their own product line. Do you tell your clients that Vitamin C can cause Kidney Stones? Do you tell them that too much Vitamin E increases the risk of Prostate Cancer? Do you tell them that too much Beta-Carotene can increase the risk of Lung Cancer?
I recommend every USANA associate and preferred customer to take the products they are consuming to their doctor and ask them their opinion. Tell them how much you paid for it as well.
Watch Dog, you are yet again breaking down a post, frome someone which stated his opinion as is. You in turn, yet again, infer the following:
DeleteToo expensive - what are you exactly ? A scientist ? A supply chain specialist ? A supplier? Yet again inference on shaky grounds. Did you ever calculate the share of the product cost paid to associates? Clearly not! Well, please, get over the illusion that the price of the product has anything to do with the way the compensation works. I can infer that the product cost is a result of R&D, accounting for the fact that only about 35% is used to pay the binary structure, simplified to 1 center each associate...if you ever feel a need to calculate this.
GMP is a useless argument - please...any company will take this point as a marketing opportunity. Why haven't they? To keep the low cost of retail products in order to be able to compete at the bottom? Can't you see ? Retail is about a bottom price war, not about who has the best product! Yet again, stop infering!
The last point. On one of you posts, you did provide a cost analysis. If I remember correctly, the difference for Vitamin D was about 6$ from one of the other products that you compared with. Maybe the doctor would pay that 6$ just because he likes the fact that they are GMP! Or, for what it matters, he will try them and he will decide if he likes them or not....bu tyet again, stop infering that he will have a negative reaction. Athletes are taking them! And I've read your other posts as well where you state the screening is diferent for athletes...but not the supply chain!
Anyway, got fed up with groundless accusations, half baked opinions and a ton of inference from bits and pieces of information.
Are you a doctor watch dog to make the claims above? What about deficiency in vitamin c in smokers ? Or deficience of vitamin d in northern countries.
DeleteYou go against what you preach in your post! You attempt to advise against the use of vitamins through your comments, even if indirectly.
You are peddling an anti-usana blog.
USANA Associate Claims: Did you ever calculate the share of the product cost paid to associates? Clearly not! Well, please, get over the illusion that the price of the product has anything to do with the way the compensation works.
DeleteThe price of the product has to do with whether USANA associates are retailing the product to the general public. They are not because most USANA associates signed up as non-distributing associates and were not allowed to retail the product. Yet, these associates were still required to purchase at least 100 points worth of product in order to remain as an "active" associate, be eligible for commissions, and keep the volume points generated by the downline associates and preferred customers. Associates must pay to play. The overpriced products are hardly ever retailed which makes the required purchases "inventory loading".
USANA Associate Claims: I can infer that the product cost is a result of R&D, accounting for the fact that only about 35% is used to pay the binary structure, simplified to 1 center each associate...if you ever feel a need to calculate this.
The idea that the associate's price for USANA products is somehow justified by the manufacturing quality of the product is simply not true.
According to USANA's most recent SEC quarterly financial statement:
Cost of Goods Sold = 18.1%
Distributor Incentives = 44%
SG&A = 23.7% (R&D = 0.7%)
Earnings = 14.2%
So if we look at USANA's $107 HealthPak-100:
$50 goes toward paying commissions and bonuses to USANA associates
$27 goes toward USANA's profits
$21 goes toward actually manufacturing and packaging the Healthpak100
$16 goes toward SG&A
ONLY $0.80 goes to Research and Development
And you really want to try and justify USANA's high prices based on the quality and manufacturing to pharmaceutical GMP standards? Anyone with half a brain can see based on the numbers I just provided why the price of USANA products are so high. You even tried to claim that USANA's R&D expenses would justify the high price as well. You obviously don't know much about USANA and yet make ridiculous claims that can be easily refuted.
According to USANA's distirbutor earnings report from 2005 and 2006 (last time they actually disclosed the numbers) 80% of the distributor incentives is paid to the top 3% of USANA associates. 66% of the USANA associates received no distributor incentives. The remaining group from 66% to 97% don't receive enough to cover the cost of the mandatory 100 points worth of product they had to buy in order to receive the commission in the first place...
I'm using real numbers provided by USANA.
USANA Associate Claims: On one of you posts, you did provide a cost analysis. If I remember correctly, the difference for Vitamin D was about 6$ from one of the other products that you compared with. Maybe the doctor would pay that 6$ just because he likes the fact that they are GMP!
That was $6.59 difference when basing it on USANA's dosage. You make it seem like this amount is no big deal. However, that is 50% more expensive than the competitor you are referring to! It's this expensive primarily to fund the top of USANA's pyramid scheme. USANA's manufacturing process is based on pharmaceutical GMP which makes ZERO difference on the effectiveness of a nutritional supplement. It is only a marketing gimmick. Does it matter if you get 1000 mg of vitamin C versus 950 mg of vitamin C when the label states the product has 1000 mg? For a nutritional supplement it does not matter because you get vitamin C from many other sources throughout the day. Also, the difference is negligible. This manufacturing standard is only necessary for Drugs because the wrong dose CAN kill you and does make a difference.
WATCH DOG CLAIM: Anyone with half a brain can see based on the numbers I just provided why the prices of USANA products are so high.
Delete- is it me or watch dog is mixed up in what he provided? Or is he questioning the SG&A(cost of doing business) for a company that provides Americans with jobs and has a product MADE IN USA???????
WATCH DOG CLAIMS: 80% of the distributor incentives is paid to the top 3% of USANA associates. 66% of the USANA associates received no distributor incentives. The remaining group from 66% to 97% don't receive enough to cover the cost of the mandatory 100 points worth of product they had to buy in order to receive the commission in the first place.
- Let’s assume for a moment that this is exactly as he says- i.e. real numbers.
- %80 is paid to the top 3%. – As a reminder, all over the blog, Watch Dog claim that only 1% make a profit…This 3% is most likely making millions.
"66% of the USANA associates received no distributor incentives" - Watch Dog, this business is not a get rich scheme, nor a fixed salary employment and I tend to question this number. From my calculations there’s another 20% that should receive about half of their product cost. I’ll give you the benefit of the doubt, which I really shouldn’t given the next comment. (I hope you did not pick that number from another blog.)
This point will most likely be clarified in a subsequent post with the same kind of approach that I became so accustomed to - i.e loud bark but no bite.
"The remaining group from 66% to 97% don't receive enough to cover the cost of the mandatory 100 points worth of product they had to buy in order to receive the commission in the first place."
- Uh, just to make it clear. This is not a real number. This is Watch Dog inferring. To give some perspective into this: assuming 44% is the share of profit as stated above, 80% gives 35%. This means that nearly 10% of all the products sold (companywide), will go to 30% of the people. Given that net earnings of the company were $39M in 2005 and that represents 14% as per the numbers above - 10% should represent $27M. If the payout would be less or equal to $100 dollars as Watch Dog stated, this would translate into: 2.7M associates (which is only the 30% in the calculation above) or a whopping -----9 million associates ------ if you project the number to 100%!!!!!!! Enough said.
LAST POINT is just bla, bla, bla....no real essence so I won't bother.
Correction: error of a factor of 10 on the last point...It still makes 900,000 associates, when in fact USANA has 135,000. My bad.
DeleteIn all fairness to the readers, I've made another error in my calculation. I calculated a monthly projection instead of a yearly one. This is another factor of 12 which gets added in. This would make both numbers match to what Watch Dog is stating...on the last point where in average, the payout is less than the minimum consumption on a yearly basis. I do want to mention though, that we are still looking at an average. In that 30%, about 15% are still making more than the minimum consumption on a yearly basis assuming a normal distribution.
DeleteWatch dog, even though you got this point right, I am still of the opinion that you provide an exagerated negative image about Usana without having solid grounds.
Please note the intention of this post and the correction that I've made.
WATCH DO CLAIM: “The price of the product has to do with whether USANA associates are retailing the product to the general public.”
ReplyDelete- so you are inferring that the price goes up if the demand is low and goes down if the demand is up, yet USANA stock prices are 3 times higher than Cisco, comparable to Home Depot stock prices, and 2 times higher than Pfizer Inc. Yet, you are convinced that the stock holders would accept that variability and you are probably convinced that the prices are high now because of low demand.
WATCH DOG CLAIM: “..most USANA associates signed up as non-distributing associates and were not allowed to retail the product. “
- Completely false. Policies and Procedures, under section Associate Benefits, it is clearly stated: Associate benefit is "Retail USANA products." There's no such thing as non-distributing associates. You are misunderstanding the Gold Director policy.
WATCH DOG CLAIM: The overpriced products are hardly ever retailed which makes the required purchases "inventory loading".
- Clearly you do you not have any statistics to back this up. Let me lay this out for you: if I buy 3 products, sell 2 of them....the products bought will still show as associate bought products even though 2 were sold to retail.
WATCH DOG CLAIM: - previous post- "MLM companies try to use this manufacturing process to justify the exorbitantly high price for their products when in fact the only reason it is expensive is to pay fund the commissions used to enrich the top 1% of distributors in the pyramid scheme."
- WATCH DOG CONTRADICTS HIMSLEF AND HIS OWN POSTS AND WITH HIS OWN NUMBERS
Contradiction #1: - Just to start, all over the blog, Watch Dog claim that only 1% make a profit, yet he just states that 3% probably make millions (80% is a quite big amount). EPIC FAIL!
Contradiction #2: -- If you read this correctly, 44% of the cost of the product is to pay the "what WATCH DOG classifies as pyramid structure", and all the other incentives to all associates!
For comparison: "The markup of organic foods jumps to as much as 100 percent for items like organic milk and meats [source: Consumer Reports]. Organic foods"
- To be noted that a mark-up is the profit of the retailer, after the distributor expenses on supply chain, transport, advertising, R&D, etc., yet he claims that 44% of a product cost is way too much to pay the sales force (associates), unjustifiable and this is why the product is so expensive….EPIC FAIL!
- Please note that in my previous post I stated "that I can infer...about the R&D". I didn't make any claim such watch dog does.
- And since I'm at it...0.7% R&D amounts to an excess of $3,000,000 / year, just to put some perspective (I know that watch dog likes small figures such $0.80 to fool the masses).
The top 3% represents DISTRIBUTION and is not a profit/loss figure. 99% of people do not make a profit. You need to consider the unaccounted number of associates who have signed on and dropped out. For example, there are currently roughly 250,000 active associates (95% cannot recover their autoship), but 1.5 million former associates have ALSO attempted the business opportunity and left. And remember, business expenses have not been factored into the equation. Can you see the high failure rate now?
Delete44% is way too much to spend on a sales force. If the company was wholesaling products to supermarkets etc... You won't need the "distributor incentives" at all. USANA could operate stand alone without those costs. There are sales mangers and execs who are already employed by USANA in-house.
Watchdog is not trying to fool the masses. 0.7% of sales spent on R&D is very low indeed. $3M is nothing. Centrum (Pfizer) spent 13.3% of their sales on RnD which amounted to $7.9 billion from their 2012 annual report! USANA's products are not innovative at all I'm afraid.
You can't calculate like that. It's like I accumulate all people that were fired from a job in a 20 year period and I conclude that the retention rate of that company is 1%, just because the amount of people that got fired is greatly larger than the current number of employees.
DeleteSecond, 44% amounts to a markup equivalent of around 78%. Not overblown if you consider that going retail would need a retail oriented supply chain and would also include the markup of the retailer, not to mention the competitive disadvantage of the bottom price wars.
3M is a 2005 figure when the net of the company was 39M. The net of the company is now 639M and if the 0.7 figure is stil acurate, that would amount to roughly 60M. It is unfair to compare this amount with Pfizer for which a product needs multiple clinical trials and an average of roughly 10 years period before being commercialized. I wouldn't infer that the products are not innovative given our curent knowledge of the situation. As far as I can tell, using them myself, is that they are good products. Watch Dog likes its stuff overblown and uses calculations and logic that only fits its own propaganda. He is biased. This blog is not to educate, this blog is to eradicate.
One more thing Jerry, 95% do not recover their auto ship is not true and this is based on watch dog calculation where he states that in average 30% make money but do not recover their auto ship. Since it is an average, we can assume that 15% do and 15% don't. A true statement would be that 82% do not recover their auto ship fully (added the top 3%), 66% recover at least some money. I used watch dog numbers which are dated from 2006, when the profits of the company were 39M. I do not know what the numbers are now and it would most likely nice to have them. But, yet again, the disclosure policy of the company is not for me to debate, I have no illusions about the chances to make a profit. And, if you ask me about taking 1 chance in 100, if only that would be true, I'd say I have a very good chance considering the level of expertise of the people commenting on this blog. On a side note, I did appreciate your post, even if I'm in disagreement, it made this discussion civilized.
DeleteIf you signed up for the USANA business opportunity you will have very little chance of making any money. Hence 80% of distributors leave after 12 months, and more than 95% of those distributors will never use the products again.
DeleteIn response to Anon above at 7:57PM, yes you should consider the past failure rate, and not just the current number of associates, in evaluating the feasibility of the business. This is because the income of the people at the top are dependent on their downline.
DeleteIt's like everyone is trying to compete for a Diamond Director position, and as you know there can be only so many in a given demographic. Recruiters are saying YOLO!, go for it, don't give up, and new people join, waste time and money, then quit.
You can easily calculate that you need 12 people balance on either leg just to recover your autoship, and this is before all other costs.
So for one person to make it big, a lot of people are needed to be in their downline in a sustainable way. These downline positions experience massive churn, so in any given period a greater headcount number is the result, which is much higher than the snapshot headcount position.
USANA is running a product-based pyramid scheme. Do no participate in it. End of story.
DeleteGuys, my goal is not to contradict you with whatever it takes. If you switch 12 associates for 12 products you can build the argument that you need to sell 12 products a month, every month, to recover your minimum monthly purchase. This wouldn't be as bad as people tend to think it is, if there is a clear statement from the associates that in order to join the business, you need to determine, by yourself, that you have a need/want of the product. As such you won't be forced to buy 1 product and be forced to sell 12, you'll be using 1 product and won't have to force yourself to recover costs. Now if you do not have that monthly sales and do not want to use the product for that particular month, you can always decide not to. You are losing the points, but so what, you weren't making money on them anyways. People can make educated choices, if they choose to. So my take on this, until you find a customer base (not associates), you shouldn't break your head over meeting the minimal purchase. Afterall you joined because you found that the product is good and decided to use it, right ? And this would be a sustainable way to make business by selling Usana products and also use them at your own convenience. And if you are making money, you can always sell that minimum monthly purchase or just donate it, as you see fit, if you don't want to use it.
DeleteAs far as succes rates, I agree, they are not astronomical, they are about 1-3% (considering all the postings) to make considerable extra money and about a moderate 20% to recover your monthly purchases, and maybe another 10% to recover about half of your minimum monthly purchase, in any given year (and not over a cumulated 20 years period). However do not expect this to happen in 1 month, or without a certain effort (not extra cash, you do not have expenses, contrary to what other people think. Usana is providing marketing material and you are not forced to attend any presentations). I hope my post was fair, and feel free to debate it in a constructive way please.
I think you're confused....
DeleteOk. I agree. I do want to contradict you. Is this better?
Delete$32.95 for a box of nutrition bars????? Hahahahaha lmao!!!! People are so stupid!!
ReplyDeleteYa...they all cost the same. 37.95 for a brand like PureFit. I guess there's a market out there.
DeleteUSANA Go Nuts 'n' Berries Nutrition Bars
DeleteUSANA Associate Price = $26.06
USANA suggested retail price = $31.85 (from USANA.com)
Bars per box = 14
Grams per bar = 33g
Total grams = 462
PureFit Berry Almond Crunch Nutrition Bars
Purefit retail price = $37.35
Bars per box = 15
Grams per bar = 57g
Total grams = 855
PureFit nutrition bar above has 85% more grams than USANA's nutrition bar above. As a result:
USANA associate's auto-order cost for the nutrition bar is 29% more expensive than PureFit's retail price.
USANA's suggested retail price for their nutrition bar is 57% more expensive than PureFit's retail price.
Again, USANA's products are overpriced and is the result of USANA's pyramid scheme. 44% of the price goes toward funding the pyramid scheme in which the majority goes to the top few percent of USANA associates. What's left is not enough for anyone to make any profit.
A bit on the expensive side. I'm no expert in nutrition bars to go as far as claim that it is more expensive as a mean to fund the pyramid scheme (or the marketing network to be fair to Usana compensation structure).
DeleteHi watchdog, I can't live without supplements. What product do you recommend that we use?
ReplyDeleteTry USANA, I hear it's the best out there. It's rated 5-stars on the comparative guide.
DeleteJoe Chill, I think you are confused....or maybe not...it may be just your thought process which can't make up if you are pro or anti Usana.
DeleteI'm a pharmacist and a law student..
ReplyDeleteI dont wanna argue about the pyramid scam or efficacy of the products..
I just want to take essentials everyday so I can stay long all night and read my books.
I always get sick due to lack of sleep later on it spread to my nose and develop into sinusitis. More than 3 cups of coffee a day will cause acid reflux too and only essentials help me get through this. Even if I will never be a member..one thing for sure..USANA please be with til I pass the bar..
WatchDog is so possessed with his single-issue crusade! I suppose there is a biography here somewhere, but I'm betting he is either a former disgruntled USANA distributor or a distributor for a competing company. Whichever, his wild mix of fact and fiction with almost no objectivity doesn't stand the test of credibility. He'd be more effective if he tuned back the hate a little bit. Just an observation. I'll probably draw a personal attack in response on this one.
ReplyDeleteWho WatchDog is means absolutely nothing. But the important messages he presented here mean a lot - try to stop innocent people joining the sinister USANA business. The quality of their products should be discussed separately. I believe you have already initiated a personal attack to WatchDog. I actually despise those who initiate a personal attack first and then pretend to be innocent.
DeleteTo people who talk negative about USANA..let me tell u : A Negative Mind will never give you a Positive Life.
ReplyDeleteIm a taxi driver n I never join any network marketing before until last year the first time ever join in Usana business,why...its becoz of my dad after he got light stroke....and my dad try consume Usana product and after a month he went to see the doctor for check up and my dad was surprised ,high blood pressure,diabetes,cholestrol all normal,thats why now my daughter 6 years old n my family take Usana product to keep us healthy,
about the business in Usana...my church friend join usana in 2 month and she can become bronze director and pass all the people who join longer than her...and become top income,well do u call this a pyramid.scheme.
Praise the Lord....I join Usana for 1 year now and Im now Silver Director..
Well tips for being successful in Usana:
Great Team work,positive mind set,never give up,willing to learn,trust the process,have faith n pray to God !
I really despise you guys who do USANA business. Your stories are so original, I have heard these stories so many times, can you please make up some other more convincing stories?? Personally, I think USANA business is for those who are stupid, lazy, unsuccessful in their career and even scammers and criminals. Those young ladies dress attractively professional and try to get stupid guys to join. You USANA people are just pathetic.
DeleteTo People
ReplyDeleteYou are fleecing your friends and relatives.
I am sure your not a silver director.
Which Usana product cures high blood pressure?
Which Usana product cures diabetes?
You are making unsubstantiated medical claims.
You didn't read the disclaimer on the label.
Do you know who was put in your upline today?