Frequently Asked Questions

I have received many questions regarding USANA. Often the same questions are asked. I will add more to this list as time permits. If you believe a question should be answered here, email me and let me know.

Questions
1. How is USANA a pyramid scheme?
2. What MLM company would USANAWatchdog recommend?
3. Does USANAWatchdog make any money from expressing his views toward USANA?
4. Was USANAWatchdog a USANA distributor?
5. Why does USANAWatchdog continue to research USANA and have this blog?
(when I figure out how to use "tags" on blogger.com, the above questions will link to the below answers. Any blogger already figured this out, email me)

(Q) How is USANA a pyramid scheme?
(A) The FTC states the following about a product based pyramid scheme:
"a multi-level compensation system funded primarily by payments made for the right to participate in the venture is an illegal pyramid scheme.
...
Modem pyramid schemes generally do not blatantly base commissions on the outright payment of fees, but instead try to disguise these payments to appear as if they are based on the sale of goods or services. The most common means employed to achieve this goal is to require a certain level of monthly purchases to qualify for commissions. While the sale of goods and services nominally generates all commissions in a system primarily funded by such purchases, in fact, those commissions are funded by purchases made to obtain the right to participate in the scheme. Each individual who profits, therefore, does so primarily from the payments of others who are themselves making payments in order to obtain their own profit. As discussed above, such a plan is little more than a transfer scheme, dooming the vast majority of participants to financial failure."

In my opinion regarding USANA:
USANA forces their distributors to make $100+ personal product purchases every 28 days (13 times a year) in order to qualify for commissions as well as hold onto any accumulated Group Sales Points (GSV), which is primarily where all the money comes from to fund the commissions and bonuses, while fixing the price of products too high to ensure USANA corporate profits and 45% of the product cost gets paid out as commission to the distributor's upline which predominantly benefits only Gold Directors and up (less than 1% of the company) and causes 99% of USANA distributors to never see a profit because there is ZERO demand for the USANA products at their current high prices so nothing can ever get retailed to customers...

(Q) What MLM company would USANAWatchDog recommend?
(A) None.

(Q) Does USANAWatchdog make any money from expressing his views toward USANA?
(A) No. I don't have any monetary gain from my websites (www.mlmpyramid.com and www.usanawatchdog.blogspot.com). I've never held any position with USANA's stock either. I'm not doing any of this for any personal gain.

(Q) Was USANAWatchdog a USANA distributor?
(A) No. I was asked to join 6 years ago and when I looked into it, I concluded that USANA is a pyramid scheme. I have researched USANA ever since. I have never joined any MLM company and never will.

(Q) Why does USANAWatchdog continue to research USANA and have this blog?
(A) I don't like when people get scammed and lose their hard earned money. I want to educate the public about pyramid schemes and why they should look elsewhere if they want to make any money. From my USANA research I have also found many illegitimate business practices. From Sanoviv to the Comparative Guide to Nutritional Supplements to the illegal MLM recruiting in mainland China.