Wednesday, August 18, 2010

USANA Purchases BabyCare Ltd for its Direct Selling License in China for $62,716,000


USANA recently purchased a company based in Beijing China that has been unprofitable. However, this company had something USANA has not been able to obtain; a direct selling license in mainland China. USANA paid a whopping $62,716,000 for a company that only had $15,000,000 in annual net sales and $19,000,000 in total assets. The transaction took place in the Cayman Islands, so it is questionable whether or not either party had to pay any US or Chinese tax.

USANA Health Sciences, Inc. is successful for one reason, Multilevel Marketing (MLM). USANA distributors can recruit more distributors, and because any distributor who wants to participate must personally purchase over $100 worth of product every 28 days, there is no need to retail product. Commission is paid to upline distributors from those mandatory product purchases made by their downline. So in MLM, selling the dream of making money and recruiting new distributors is what makes 1% of distributors a lot of money and make USANA very profitable. However, mainland China does not allow MLM compensation plans!

Mainland China only allows single level marketing compensation plans. So the only means for a distributor to make any money would be to retail product to real customers, which is really what direct selling is suppose to be about. For USANA to bring their product into China, USANA must at least drop the price of their product line in half (or more). This would allow its distributors in mainland China to retail the product and make a “Profit Margin”. This profit margin in currently unheard of with USANA's products around the rest of the world because the distributors already pay a premium retail price for the product and cannot resell it for more than they paid. Also, USANA's preferred customers pay the same price as the distributors. USANA would also have to reward those Chinese Nationals that actually retail product unlike those around the rest of the world which are rewarded for recruiting more distributors instead of retailing product. In case this isn't clear, distributors in mainland China would not have a downline! These distributors would also only be recruited by USANA's corporate office (or BabyCare for now) and not by distributors inside or outside the country.

There are good reasons for USANA to make this move however. They will try to use it to encourage the rest of their markets to recruit like crazy. USANA can put in their promotional material that they are only 1 of 25 companies in the world that have a direct selling license in mainland China, which is now the second largest economy in the world. If USANA distributors thinks USANA will be able to grow a large distributor base in China and maintain those distributors, then those distributors are in for a surprise. Again, what incentive is there for Chinese Nationals to join a distributorship with BabyCare/USANA? Unlike MLM where distributors think they work as a team, single level marketing means that each distributor is a competitor to one another. So the more distributors in a single level marketing plan, the less each distributor has to potentially make. Because of this, the number of Chinese distributors not rise as much as some believe. If the numbers grow too big, Chinese distributors will not last very long and will drop out even quicker than MLM distributors do.

Goodluck to USANA though. If USANA brings their product line into mainland China, they'll be forced to drastically lower the price of their products. Then the Chinese National distributors will pay about $50 USD or less for a USANA HealthPak100 and resell it for about $70 USD and make a $20 profit from each box sold, unless USANA refuses to lower the price. Oh, and if you think the product sent to Chinese Nationals would only be resold in China, think again. USANA has been unable to police Ebay and other auction sites for USANA distributors who have been reselling massive amounts of product at half the price that it costs distributors to purchase; all for the sales volume points (MLM point game)! What would stop Chinese Nationals from using ebay to resell all their product world wide and do it for a real profit while still reselling it for a cheaper price than any other USANA distributor elsewhere in the world could even buy it for.

Bottom line, MLMs have not been successful in mainland China and that is because MLMs were never about retailing product. MLM's like USANA are in business to sell the opportunity to make money (the dream). China is smart because they know a pyramid scheme when they see one; MLM. Companies in mainland China with a direct selling license can only succeed if the product is very affordable and competitive against those on store shelves. With a LIMITED distributor base, the product line can make the company and its distributors a lot of money. But if the product is too expensive, customers will not buy, and distributors will leave.

76 comments:

  1. Good and interesting post. I'm guessing you are an ex-usana rep?

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  2. Actually, I'm not an ex-USANA rep. Someone I know got involved and lost a ton of money. They tried to get me involved and when I studied the business plan, there was no way to make any money unless you recruit tons of additional distributors. The product is too expensive and there is no proof that the quality of USANA products are what they claim it is. Besides, who in their right mind needs to pay 10 times more for supplements that claim to have 100% of the amount of ingredient that they claim is in the pill? Who cares if you get 500 mg of vitamin C versus 450 mg or 550 mg? It's a SUPPLEMENT. It's not a drug that needs to have the exact precise amount and could kill you if you have too much or too little.

    And the only way to sell the product is to recruit a distributor into your downline. That new distributor is forced to purchase over $100 worth every 28 days if they want to participate in the business opportunity!

    So it doesn't necessarily take an ex-distributor to speak out against companies like this. Take Care!

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    Replies
    1. I understand your sentiments, but if you are a medical professional or have proper knowledge, surely you will understand what clinical studies mean. I am a medical professional and a medical representative at the same time. If your product is included in PPD, MIMS AND PDR that means you have proven studies that your product is truly effective and SCIENCE-BASED PRODUCTS (if you understand what does it means). If a person does not have proper product knowledge it is expected you have lots of complain. Usana is a business, if you don't know how to manage your business definitely you will fail. Even though if your business is not USANA and still you don't have enough knowledge and skills to do business.... The story is the same.

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    2. I'm sorry, but I have to call you out on this one. If you were truly a "medical professional", you would certainly know and understand that the products listed in the PDR are PAID ADVERTISEMENTS and nothing more. How does having supplements (like USANA) incorrectly listed in the PDR for DRUGS instead of the PDR for SUPPLEMENTS mean their products "have proven studies" that are "truly effective and science-based products"??? That's an absolutely absurd statement...

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    3. Dear USANA Watch Dog,

      I find your argument is very interesting. You accept everything unconditionally with your opinions and reject totally unconditionally against your opinions.

      I have spoken to medical professional. I was informed that all medical professionals are using publications such as MIMS as their references to medicines. If a product is listed in these publications, it will be trusted by doctors, nurses and other medical professionals. Unless you believe that your superior to every other medical professionals, how can reject this fact lightly?

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    4. BTW, it seems you rejecting all responses that could be used to against your arguments.

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    5. It is not my opinion that the PDR is a paid advertisement for the drug companies listed in it. It is a fact. I have spoken to the authors of the publication myself. Have you spoken to the publishers of the PDR or MIMS? Perhaps you should.

      USANA simply paid a fee to be listed in the books. Nothing more, nothing less.

      BTW, I've never rejected anyone's response on here unless it was filled with inappropriate language.

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    6. Well said. Is it true that USANA is funding and supporting Nutrisearch that is why it receives Gold Medal achievement in the past how many years?

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  3. The reason Usana's products are so over priced is that 40% of the selling price is used to fund a pyramid scheme. Usana distributors purchase the product for 3 to 5 times what that product would normally sell for. Even if the selling price was reduced for the China distributors, I doubt that some would pay 3 to 5 times normal price for the product in a retail situation. Without the forced purchases of the down line Usana would have 80% less in sales and go out of business. The same will hold true in China.

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  4. Honestly, you are an idiot if you try to sell Usana's products...

    Why would a smart consumer buy a 28 day pack for 100+ dollars, when they can find the same product - new and sealed on ebay for 50?

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  5. Where do you get your information and facts? I don't mean to question your motives or anything, but I greatly appreciate it if you could perhaps cite some of your info, Usana does a pretty good job hiding this stuff.

    Some of my friends are USANA reps and they don't believe what is said on this blog because they think you are making it up. Thanks in advance.

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  6. Anonymous,

    You wrote "Where do you get your information and facts? I don't mean to question your motives or anything, but I greatly appreciate it if you could perhaps cite some of your info, Usana does a pretty good job hiding this stuff."

    Can you be more specific as to what I have written that you would like to know where I obtained the information for it? Thanks.

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  7. For example Usana Watchdog, this article - where did you get the info for it?

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  8. You guys are gay.. wasting & dedicating your time hating on a company, industry, and the people in it. You don't realize that while you're analyzing 1/10 why this couldn't possibly work, you're still broke as a joke. You claim to be a USANA Watch Dog.. uh.. go get a real fucking life!

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  9. OH and comments have to be approved? no wonder.. you only approve those who agree with you. You are so lame.

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  10. To the Anonymous person who complains about moderated comments:

    I only block those comments that resort to profanity and spam. I publish everything else. If you have an issue you would like to discuss, feel free. Do you have anything of substance to write about?

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  11. To the original anonymous poster who wants to know where I got the information for my latest blog posting:

    I'll have something before the end of the weekend to post here. So I'm not ignoring you.

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  12. From Anonymous "You guys are gay.. wasting & dedicating your time...."

    No you dolt, it is about protecting the tens of thousands of people this company is hurting. It is standing up against corporate greed and terrible business ethics. If a politician from a party put on higher taxes for the poor, is it wrong for the people to form and "hate on the party, the ideals, and the people in it"?

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  13. You say Usana is only successful only because of the MLM, how about the quality of the product. Why don't you try getting a little feedback from people who actually use the product instead of just naive distributors who thought they would become millionaires in no time! My mom struggled for years with diabetes, her blood sugar levels was between 16-18 (normal around 6), the Usana product helped her maintain a level between 5-7 for the last year and she managed to reduce some of her eye troubles do to cataracts. And No, she's not a distributor, just a client that uses the product because they are That Good! Try reading The Comparative Guide to Nutritional Supplement, that's what I read to make sure she was not taking anything fishy when she 1st talked to me about it.

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  14. Replying to:

    "You say Usana is only successful only because of the MLM, how about the quality of the product. Why don't you try getting a little feedback from people..."

    When brought to court, Usana failed to refute claims that said Usana's products were overpriced and were of no better quality than of other similar brands.

    The comparative Guide to Nutritional Supplements is not an independent third party as Usana claims... Lyle MacWilliam one of the authors of the book is on Usana's medical advisory board and his wife is a Usana distributor.

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  15. For the anonymous individual who wanted facts to this blog posting:

    Paragraph 1: From USANA's SEC filing

    Paragraph 2: If USANA was successful because of the product, then the majority of all USANA preferred customers and distributors that joined would not have stopped purchasing the product. Proof that distributors and preferred customers that leave USANA stop purchasing product stems from the fact net revenues remain proportional to the number of active distributors. Again, USANA's success comes from the constant recruiting of distributors (revolving door) who join with the hopes of making money; Multilevel Marketing. USANA's requirement to be commission eligible keeps distributors purchasing the product. A consequence of this pay to play scheme is a pyramid scheme with 99% of all participants losing money.

    Paragraph 3: China has strict laws that regulate direct selling in mainland China. Due to this law in China, USANA distributors there will not be out recruiting downlines. The only way they can make money is to actually retail the product, which is what "direct selling" is suppose to be about. Since distributors in mainland China must retail product to make any money, USANA must lower the prices of their product. No profit margin currently exists for USANA distributors because the USANA product is overpriced and preferred customers get the product at the same cost. 45% of the product price is used for commissions and bonuses to enrich a small percentage of distributors who have enormous downlines instead of to those who retail the product.

    Paragraph 4: Again, due to China's direct selling regulations, USANA will not be able to recruit Chinese Nationals into their downline.

    Paragraph 5: USANA has a problem with their distributors selling product on Ebay at half their cost.

    Paragraph 6: MLMs have not been successful in mainland China because MLM company's primary goal is to recruit more distributors and China has laws prohibiting such marketing plans. That is why China has outlawed MLM businesses. Direct selling companies in mainland China will have a limited distributor base because with a single level marketing system, the more distributors you have, the more competition each distributor will have against one another to retail product.

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  16. In response to "You say Usana is only successful only because of the MLM, how about the quality of the product. Why don't you try getting a little feedback from people who actually use the product instead of just naive distributors who thought they would become millionaires in no time!"

    The fact Active Preferred Customer figures have diminished over the years and the fact that the majority of USANA's active distributors drop out each year should speak volumes about the product.


    In response to "Try reading The Comparative Guide to Nutritional Supplement, that's what I read to make sure she was not taking anything fishy when she 1st talked to me about it."

    I've been through the Comparative Guide. I suggest you read what I have to say about it. Analysis of Lyle MacWilliam's Comparative Guide

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  17. Cool how you say things like that. funny though we dont even know you. how can we trust you?

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  18. In response to "Cool how you say things like that. funny though we dont even know you. how can we trust you?"

    Knowing who someone is doesn't automatically make them trustworthy. It's within everyone's right to do their own research and analysis. Differing results from mine are always welcome to discussion. Perhaps we will learn something new as a result.

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  19. USANA continues to recruit Chinese mainlanders through fake Hong Kong addresses, despite the fact that USANA declared in public during its 2010 annual convention that it will stop allowing Mainlanders to join USANA via Hong Kong.

    Now there are two distribution channels in China. One with Babycare, which USANA accquired not long ago, and the other: Mainlander USANA distributorship through Hong Kong, which is illegal.

    USANA has 100,000 fake distributorship in Hong Kong, which brings about 120 million USD in sales annually. Those products all ended up in Mainland China.

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  20. If general, if you look up any MLM company, there will always be articles saying that it is or is not a scam. There are three types of people: people who haven't tried it, people who have tried it and weren't successful, and people who have tried and are successful. It just depends on which one of those people you want to be.

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  21. If the show Leverage was real, I would ask them to go after Usana.

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  22. To the person who said, "You guys are gay.. wasting & dedicating your time hating on a company, industry, and the people in it." FYI, it's offensive to some people to use the word gay like that. Try saying, "You guys are stupid" instead. Thank you very much!

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  23. I'm wondering why you keep saying that the autoship purchases are mandatory. You can simply stop buying, USANA won't hunt you down for it.

    I want to know your opinion on USANA given that it has been the #1 Distributor's Choice for 11 straight years. As voted by the readers of Network Marketing Today.

    I'm putting a greater weight to the award since it was chosen by people who are actually involved in Network Marketing (giving them more expertise on the subject - the various networking companies out there).

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  24. You can choose to stop buying the products, but then you can't be a part of it so then to some poeple, what's the point? If you were just a regular customer, then yeah, buy or don't buy. But if you're an associated, you have to buy a certain amt to be active.

    Of course it would be a prefer by people in the industry. If you're a part of something, wouldn't you support it? Is Network Marketing Today a reputable place?

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  25. Funny! If you are smart enough, you won't say Usana products is expensive. How do you define expensive and very expensive? compare to $10 and $20 then $30. if $10 is normal, $20 as expensive then $30 is very expensive. Any one can find in the market with same amount and quantity ingredient as Usana Essentials (Main product) just $10?

    Therefore, the point here is not about expensive. Actually is they never believe nutrition supplement at all. Otherwise, they won't say Usana is expensive.

    If you think $100 is expensive from Usana. so just pay $50 to get it from ebay. the losser is not you.

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  26. What does being smart have to do with something being expensive? If it's expensive to one person, it doesn't mean it's expensive to another. Just because you can afford Usana products, doesn't mean other people can. It really depends on how much someone is willing to spend on certain things they buy. Just because I buy a BMW car, it doesn't mean that someone else can afford it. Therefore, it's expensive to them.

    And yeah, maybe they don't believe in supplements, is that wrong? Just because you believe in something, it doesn't mean that everyone else have to. There are people who can barely afford food, so why would they spend money on supplements that may or may not help them? But really, the point to some people is that it is expensive. You don't know their stories so don't just assume.

    Yes, why pay $100 worth of Usana product when you can just buy the $50 of the SAME Usana product on ebay. The loser is Usana and the associates selling them. They're wasting money, not the consumer.

    I think you're the dumb one who doesn't understand that not everyone is going to think alike. We're not all being brainwash by Usana to think a certain way. We do have our own opinions and our own thinking.

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  27. I have been in MLM marketing for quite a while. The promises of unlimited cashflow, residual income,and many other promises aren't really achievable, no matter what you do.

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  28. My family and I use the products. They work...no more asthma attacks or broncial pneumonia. I personally feel better and their REV energy drink is great, works and is a lot safer than the other ones out there that most teenagers pound down. We have also been using the products for over 3 years so my opinion has some weight. And..yes I am a distributor and do well. I would not try to sell anything unless I know it works for me. Otherwise you trick people. I also don't talk about income because people will think they can do the same (some times better)as I do. It is a simple marketing plan but does take work. What doesn't if it is worth anything?

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  29. In response to the previous post "They work...no more asthma attacks or broncial pneumonia."

    They Work??? How do they "Work"? What about USANA's vitamin supplements do you think prevents your asthma attacks or bronchial pneumonia?

    Also, are you aware that it is against the law for you as a USANA distributor to make such health claims that are unsubstantiated? Perhaps you should be careful making such health claims about USANA's products in public.


    In response to "I personally feel better and their REV energy drink is great, works and is a lot safer than the other ones out there that most teenagers pound down."

    From what I understand, energy drink manufacturers usually put warning labels on their cans recommending users only drink one can throughout the day. You are suggesting that teenagers "pound down" these energy drinks. Would you mind defining your statement "pound down" and explain how many cans of energy drinks teenagers are drinking per day according to your pound down statement? Once you make that definition, I want you to then tell me whether or not it is safe for a consumer to drink that same number of USANA REV3
    drinks in one day.


    In response to "We have also been using the products for over 3 years so my opinion has some weight. And..yes I am a distributor and do well. I would not try to sell anything unless I know it works for me. Otherwise you trick people."

    Thank God you aren't a pharmacist because I'd hate to see you sample everyone's prescriptions. This whole notion that USANA distributors should use the product in order to sell the product is hogwash. USANA forces its distributors to purchase over $100 worth of inventory every four weeks and tells them to personally use the product. They throw in the autoship BS and claim that distributors are saving money by purchasing from themselves. Most people do not have to be a user of the product they sell in order to sell it. Most people don't believe a salesman or saleswoman when they advocate using the product personally and give unproven testimony regarding the product. It takes a lot to convince someone to purchase overpriced vitamins and skincare products. USANA does it by selling a dream of making money. Sell the business opportunity and the product sells itself through the mandatory product purchases.


    In response to "I also don't talk about income because people will think they can do the same (some times better)as I do. It is a simple marketing plan but does take work. What doesn't if it is worth anything?"

    You don't talk about income because you would have to prove what you say. However, you cannot or will not. If you did, you would have to show how much you made from your downline distributor's required PSV purchases, your Preferred Customers (if any), and how much you personally purchased (100 PSV every 28 days) in order to participate in the compensation plan. In most all cases, any revenues you have accumulated come from your downline distributors, which shows that it pays to recruit and not to retail. Yeah, I would never tell anyone about the income either....

    You state that USANA's marketing plan is "simple"? That is far from the truth. In fact, it is a very complex marketing plan that requires a point system that has to be balanced on two legs and only pays out if you pay in and.......

    Good luck in your USANA venture!

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  30. Your opinion actually doesn't have any weight at all. I can use a product for years and years, but that doesn't mean that it's safe for me. There are products out there that the FDA approved...only to find out years later that they do have bad effects on you. So why should I listen to you when Usana products aren't even approved. And even if that do work, how do I know there's no long term effects? How do I know it's not slowly killing me? Is it even monitored like other completing products in the market?

    It's only simple if you're willing to do whatever it takes to sign people up. How many people did you scam into giving you their money? Do you make money off of selling Usana products or do you make more recruiting people?

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  31. Usana Watchdog - You might be interested in my findings from 15 years research related to the flawed business model used by MLM and at least 350 MLMs, based on analysis of their compensation plans. It is the most extensive research ever done on MLM by an independent research firm. The findings are a summary of literally thousands of pages of research and feedback from all over the world. The title is "The Case (for and) against Multi-level Marketing," and it can be downloaded for free chapter by chapter as a serialized e-book from mlm-thetruth.com. I mention this because Usana is one of the companies analyzed based on its comp plan and average income reports.

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  32. Thank you to all posters for their input and experiences of Usama. It makes my decision making alot easier, as in this age of information saturation and clever marketing and media /statistical manipulation, one must do alot of detective work to uncover a better view of "the truth". No doubt this MLM can work, but seemingly best for those in it from years back or those prepared to sell like a devil ( my opinion ). Good health to one and all.

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  33. From an investor's viewpoint, the most useful information in this article is in the second paragraph, where you state that USANA is a) "successful" and b) "very profitable".

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  34. Previous anonymous wrote "From an investor's viewpoint, the most useful information in this article is in the second paragraph, where you state that USANA is a) "successful" and b) "very profitable"."

    Except this is achievable by defrauding its salespeople by forcing them to purchase overpriced product that cannot be retailed. The overcharge is what is used to fund their pyramid scheme.

    So from an uneducated investor's viewpoint your statement is true. This same investor probably lost a lot of money because of Bernie Madoff's ponzi scheme as well...

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  35. so where do you work, when you are not blogging? not being a hater, just wondering what line of work you are in?

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  36. Hello Watchdog and ALL USANA Distributors:

    As a former USANA Distributor, I can testify that USANA is not a Pyramid Scam!!!

    But it could… if you as USANA Distributor will take advantages the weakness of your prospects… by not explaining them the truths about USANA compensation plan, USANA policy etc… (like what Mr. Rommel Balaguer and Mr. JM Merquita’s practices), (and a lot more) by not educating their prospects (first of all) on how to manage their very own USANA business, before collecting their money and activating them as New USANA Distributors!

    Indeed, USANA products are truly amazing and exceptional… but as an Independent Distributors if you will not explain truthfully how USANA business works, you are not just oppressing your downline’s but also, you are oppressing his/her entire clan! Make sense brothers and sisters, money is not just easy to look for, as what you are doing, so is not funny, and it is a similarly robbing your downlines or someone who trusted you and placed you where you are now! So do it correctly, while you guys are giving enough time to correct it, otherwise, it could be very dangerous for you, you know we are just moving in a very small world! If you cannot do it correctly, you better quit your USANA business for your safety!

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  37. I'm sure he works for the big pharma.

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  38. there is internet censorship in china. This post only shows how ignorant the blogger is about china having sites that are blocked within the country.

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  39. I doubt you aren't an ex-Usana rep or even a current one, undercover! Or you may have other people in the business, undercover. You have way too much information about conference calls (which is for "members" only) and random other facts and tidbits that an "outsider" would know. If my first two sentences are true, why are you just writing about USANA? (Sorry, if you probably answered this question somewhere before). Why not write about companies like Melaleuca, NuSkin, and countless others? Why the specific interest in USANA, which has SO much more accolades than any of the above mentioned combined? It's just very odd. And if there are people who "work" for you (sending you USANA letters, telling you about conference calls, telling you about insider stuff) in USANA right now...wow, that's just the epitome of human decay right there. I mean, am I right or am right?

    Even if you were writing about another company, it'd be the same thing. It's kind of disgusting, actually. I admit, I have been on your site and have been reading a few posts. I've read your replies to other people saying you aren't an ex-rep and that you had a friend do it who lost money. Well, it doesn't prove why you just know so much. Who are you, really? I think you'd have more credibility if you weren't hiding behind this name "USANAwatchdog," Right? People would most likely believe you more if you had said "ex-USANA executive" or "ex-USANA leader" or something along those lines. But you know way too much for the common man. You are lying. Your "facts" may be true in some form (such as nasdaq info, or general items), but internal going-ons was not meant for you--unless, you are not a current rep or some dog, no pun intended, is working with you from the inside. Why hide behind a name? How credible are you? Why are you lying and hiding who you are?

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  40. Wow I am a USANA rep. to be honest. Because I am honest and your post is not correct.
    Anyone can do a blog but you have no back up or references. I too have done my home work before getting into it and made a decision that was right for me.
    Your facts are made up so that makes them lies.
    My husbands company is also trashed by another site on blogspot. ANYONE can make a blog. There is no one regulating it.
    Just like anything else. Don't believe what you read use your own brain.

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  41. TO the previous Anonymous USANA rep,

    I have references for most everything on my blog. Would you care to be more specific and tell me what lies I have made up? It seems that many reps claim I am making stuff up, but never specify what that is. Now it is your turn.

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  42. i use usana. and when i don't i feel like shit. period. i make plenty of money with my 9-5, i'm not trying to make money with usana. my doctor 10 years ago suggested i take supplements. the reason being that the food we eat and that is available doesn't have enough of the nutrients our bodies need. i was skeptical, so i started with costco vitamins. i didn't really feel a difference. so i gave usana a try. i've never looked back since. my eye sight improved from -3.5 to -2, i have more energy and my mind is on fire! but... that just my experience.

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  43. You make it pretty clear you are just another pseudo intellectual whiner with too much time on your hand.You act all superior because you were too scared to give something a chance.You site rarity of success as proof of a scam.The sad fact is it was estimated in 2001 that roughly 63% of small business overall failed within four years.those figures have since gotten worse.You also claim that the maintenance cost for the business give commission to the upline.This is pretty inaccurate as well as they use a bilateral compensation plan where you have to have matching volume points on each side.So Bob signs you up,you pay your fees,unless Bob sells volume on the other side or signs someone else (see you actually have another option to make money,you know selling the product)Bob doesn't get commission yet.Furthermore Bob only needs you and one other person to get going,meaning it's in Bob's best interest to help you grow your business once he has that other person.Most of us,if we really try can find two people,but it may take time.That of course is for associates.Distributorship is different because you have to deal with inventory,have a store or warehouse and delivery method.That carries greater risk,but there are potentially greater rewards as well.As for your predictions for China,you seem to be underestimating the fact that they tend to opt for supplements over medication,as well as the fact that this deal will put it on shelves by itself,not next to mainstream competitors.As long as a distributor doesn't over purchase the product,reduces overhead by not renting a store space until they have a customer base,they CAN succeed there as well.On a related note,in the purchase they got more than just a license,they got the assets such as warehouses and factories so they can produce and distribute the products to distributor as associates faster than doing it from here.As for unsubstantiated claims,that is a much bigger issue here as the FDA seldom tests what they can't regulate easily.If they don't test it they can force companies to include the disclaimer *these statements have not been evaluated by the FDA.That,plus,as I mentioned earlier supplementation is far more mainstream there make it less risky than you make it sound.Try getting your research from something other than the blogs of other clueless whiners

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    Replies
    1. USANA is an FDA registered facility....fyi

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  44. Where'd you get the stats of the 63% failure rate for businesses? The true percentage should be much lower but even at 63%, that still beats 99% failure in MLM doesn't it? Math.

    You said "maintenance" cost doesn't give commission to the upline because the upline would have to match each side. You then give an example of Bob. Okay. How about if there are two Bob's, one on each side. Does the upline not make commission on the monthly purchase requirements now? Pow.

    You mentioned the other option of making money, you know, selling products. How much have you made in profit solely on selling products to actual customers? If you urgently needed money to feed your family, would you rely solely on your selling skills to sell Usana products or would you rather bank on a minimum wage job for the time being? Splash.

    ReplyDelete
  45. fool, US and Canada are sue countries. How come the companies listed in the nutrisearch comparative guide can't sue lyle mcwilliams or all the researchers involved? they can easilly sue them if they are involved in fraud right? Come on, use your brains some more. MLMs are legal and its just a marketing plan. answer this post. why is that not one company tries to sue those who are involved in nustrisearch?

    ReplyDelete
  46. Anyone can come up with their own "blended standard" or for that matter initially choose a baseline vitamin supplement which then gets compared to all other vitamin brands. There is nothing illegal about doing that. You can come up with your own formulation for a vitamin supplement and rank it #1 by any method or standard you so desire. Then you can proceed to list 1500 other vitamin brands by whatever judging method you so choose. What is there to sue over?

    Besides, the Comparative Guide to Nutritional Supplements is primarily sold to USANA distributors as a sales tool. Most bookstores will not even carry the Comparative Guides. I doubt the Comparative Guide has any impact on these other companies. The only people who have heard about the book are affiliated with USANA one way or another.

    ReplyDelete
    Replies
    1. I had a customer in USANA who was invited to a"presentation of sorts" by a trainer(not in USANA) was being prospected...he didn't realize it until he was halfway through the mtg...at the end of the mtg, he was asked to sign-up and if he was in...he blatantly said he was on USANA products and not interested...the trainer who again is not in USANA and was representing this other line of products, my customer said pulled out a copy of the Comparative Guide, which my customer had never seen before...looked up the USANA products & had to agree the products were good...my customer was stunned...the guide can be purchased at Amazon.com by anyone interested in how over 1500 products were analyzed & rated for over 12 different criteria...oh by the way 500 supplements were thrown out due to no nutritional value..left 1500 to be analyzed...maybe you need to read it yourself & get educated on supplementation...

      Delete
  47. the author of the comparative guide is not affiliated with usana. all supplements listed there were rated with the same judging method / criteria. FYI the comparative guide is sold in many bookstores WORLDWIDE. check it yourself. it is not just sold to usana distributors. its so obvious you havent checked it in a bookstore.

    ReplyDelete
  48. usana is like the ferrari or the mercedes benz or the bmw in the nutritional supplements industry! that's how great their products are!

    ReplyDelete
  49. in this linl, http://mlmpyramid.com/USANA_Comparative_Guide.html, you don't have any citations on where did you get these so-called facts. you just made this up. you should have references if all of these are true. what are their usana ID Numbers if you're saying those doctors are distributors? usana id numbers aren't private. show us some proofs! and where is your reference about lylle mcwilliam admitting usana isnt number one huh? where?

    ReplyDelete
  50. I response to "in this linl, http://mlmpyramid.com/USANA_Comparative_Guide.html, you don't have any citations on where did you get these so-called facts. you just made this up. you should have references if all of these are true. what are their usana ID Numbers if you're saying those doctors are distributors? usana id numbers aren't private. show us some proofs! and where is your reference about lylle mcwilliam admitting usana isnt number one huh? where?"

    The link you gave contains remarks regarding the Comparative Guide. With each remark, there is a link "IN BLUE" that contains all the referenced information, including the USANA distributor ID#s for each of the 5 so called doctors listed on the back of the 3rd edition of the Comparative Guide to Nutritional Supplements.

    I'm sorry you were duped.

    ReplyDelete
  51. Mister Watch Dog.

    You seem to be like one of those who thought the earth was flat, and killed if someone didn't think alike. You seem to be like Romans chasing Cristians.

    I know myself Real Successfull and healty people in USANA. It is Just another option in the market, my friend. And that's it. So far USANA is coherent with its compensantion plan. I see no lying and scams that you are dying to show up.

    USANA's produdcts were made as preventive suplements.

    I have lost 40 punds, my labs test index are balanced I am more healty. I thank to USANA products, they are giving me a healty life.

    Products (any) are not expensive, pleople cannot affort them.

    USANA in the maket, for your is exactly as a FORD or an AUDI. Which is the one you can afford?

    Your wealth depends on your actions. I hope you are earning enough money by condemning USANA trough this Blog.

    I encorage you to flip the coin and look at the bright side just to make sure that ineed there are good things happening.

    Listen to the whole story. Not only from those who didn't have luch on MLM but from the ones who did have luch and helped a lot of people.

    Other wise your will end to be a watch dog from your own life.


    Regards.

    Kal

    ReplyDelete
  52. Previous post, before you claim anything, learn some good grammar and learn some good or even simple english. plus learn to spell a little bit. just a thought.

    ReplyDelete
  53. I had to read several of Kal's sentences twice to understand what he/she was trying to say. One of the problem with people who are constantly surrounded by other MLMers is that the facts can be right there in front of them, staring them in the face, yet, they still can't see it.

    Even if you start to doubt the business based on logic, as long as you're surrounded by folks who keep reinforcing the idea that USANA or MLM is the best thing since sliced bread, your doubts will disappear as you fall deeper into the rabbit hole.

    It's just like being in a cult. It's hard to see what's really going on if you're still in it. Once you step outside of the realm though, it will all of the sudden become clear as day.

    ReplyDelete
    Replies
    1. Much better than sliced bread I assure you...I was diagnosed with an autoimmune disease 14 yrs ago...let's just say I'm unaware I have it...there a thousands & thousands of us running around...

      Delete
    2. So you're basically claiming, sort of, that Usana cured whatever you had. Awesome. Why not just come out and say it instead of just hinting at it. Please publicly state that Usana cured you. I'm sure plenty of people will believe you just like how they will believe that guy in those Subway commercials really lost all of that weight due to eating Subways.

      Delete
  54. USANA is so good. About the comments on grammar and spelling, some people are dyslexic and I am one of them. Spelling upsets you? bear with us. Some dyslexic people are just that, they can't spell. The claims that the upline makes all the money from the downline is not true. In USANA you can be an upline, but your downline can be 11 levels in ranking and earn more than you. Besides this, your upline cannot make more money if he does not use his re-entry. To re-enter, he has to go down the line. Thus, he re-enters as a downline. The upline has to work his butt off to help many more people to earn before he can earn more. Otherwise, his next weeks' volume is as good as the newbie who joined recently. If you think USANA is a scam, don't join. It is easier to join another MLM company that is much bigger in terms of paid up capital and branding than USANA. You need not have to worry about being rated poorly by Lyle McWilliams who is not an associate of USANA. You need not have to worry about paying for Vitamins that are only 0%, 1%, 2% 5%, 14%, 30% or 57% rated. You need not have to worry about being a food grade supplement made by a facility that is not in a clean room environment, and not FDA approved unlike that of USANA. If the sales of company's vitamins are affected by USANA because of their top rating by the Comparative Guide, you can trust your company to modify their labels and not have third party ConsumerLab testing to verify them. On top of this, you can have your company hire contract manufacturers of food quality standards, listen to your company's instructions and make a pill that looks like quality and sells like a magic bullet. That would sound great and you would have them pay a compensation plan better than the top rated binary system. And you would have to listen to whiners and losers who did not join or quit any MLM. This is liken to listen to and agreeing with whiners who dropout and quit any business, school, tennis, golf, basketball, job. Do people fail all the time? Of course they do. Do some go to great heights achieving what they do? Absolutely. Is USANA a scam? You be the judge.

    ReplyDelete
  55. Usana members are like gang members because:

    They follow a boss around
    They do shady business
    They like to show off
    They Represent using hand signs
    They make up stupid principles
    They are young
    They sell drugs

    ReplyDelete
  56. The Invite by the MLM distributor

    At long lines, where the jobless and the desperate apply. Or at hangouts where bored ones meet,

    You are approached by a friendly person who appears to be rich and enjoying life. You will be invited to a party and you will share his secrets how you can be like him.

    This is initial part of capturing a downline.

    The Confidence Building

    At the party/meeting of the MLM distributor you will be impressed by the display of the his expensive cars, furniture appliances, mobile phones, even pure breed dogs.

    TIP: the MLM distributor along with his anonymous accomplices(2 parties) observe who are the soft and easy candidates for the new downlines.

    The meeting will start with a musical performance by the talented MLM distributor and followed by jokes. Your interactive participation will indicate if you are easy target for a capture. Next, proceed to snacks.

    Then the short presentation where in minutes you will be dazed/amazed by the MLM distributor claims he became so rich by joining just a year ago. Naturally you will want to join too.

    Since it starts late after office hours, naturally you will be tired and you cannot think carefully. TIP: The MLM distributor wakes up late in the morning so that he is still alert and fresh by 12 midnight. So if you want to attend, please get enough sleep first.

    Rewarding the MLM distributor

    The MLM distributor will then propose that by investing, yes investing only a few thousand bucks, you will take the first step to making millions like him. How can you refuse the dream?

    The unknown accomplices will be among the first to accept the offer of the MLM distributor. If you refuse, by sheer peer pressure or by embarrassment of having eaten snacks, the MLM distributor will appear displeased and you will be asked repeatedly to join and payout a few thousand for the starter kit. Naturally because you are now very tired and want to go home, you will just give in. Suggestion: Tell him that you will decide the next day.


    ReplyDelete
  57. very entertaining ... all this. bottom line is, there are those who are successful and those who are not or have failed and or are skeptical....

    everyone has the ability to choose..

    so yay or nay.... some people just love to argue....


    ReplyDelete
    Replies
    1. More like, there are those with massive downlines and profit (1%) and those who do not (99%).

      Everyone has the ability to recruit, but only a few can do it in a boiler room.

      Delete
  58. Dear Mr Watchdog

    On first reading your blog I was furious that you would have the gore and hide to attack such a wonderful cause like Usana and what it stands for like the Children's Hunger Fund.

    Now I just laugh at your blog as your lack of FACTS and references make you look really bad and really a speaker from outside the Network Marketing circle.

    I now know what you look like and that alone tells the rest of the story that many would like to know about you personally. You don't know it Sunny but by allowing the comments that you have actually has allowed bloggers to destroy you/your intention.

    Yes you were destroyed over a year ago....it's a little tooo obvious.

    My now calm, content advice - close your blog down and stop causing people time out of their lives....time is something you can never get back...you have wasted a lot of it trying to pull down a company that could well help you when you get very very ill. Save yourself Mr Watchdog!!

    ReplyDelete
    Replies
    1. Give a specific example of something I have written on here that lacked "Facts and references".

      BTW, there are no photos of me on the internet so I know you don't know who I am.

      Delete
  59. An acquaintance claimed to me that Usana were working alongside the FDA to produce these supplements. Sorry but I don't care how good the rest of you goody two shoes distributors are you cannot have one of your people saying garbage like that.
    I also find it really disturbing that some of you are attempting to give medical advice to someone who was sick after taking these supplements. Unless you're a doctor you have no right to be doing such a thing. Leave people alone and just crawl back from where you came from

    ReplyDelete
  60. I'm really curious how someone "lost" a ton of money with USANA. I have been partnered with the company for 4 years and have never seen someone "lose" money. You would have to be really, well to put it politically correct, "slow" to lose money. I mean jeesh if you are to "slow" to not be able to even earn a check you would at least have an average of $500 in tax savings and very few people use $500/month in product. So to say you know someone who "lost" money, I'm guessing this person has never been successful at anything, Ever, in their life.
    Losers keep workin the 40hr/week gigs! ;-)

    ReplyDelete
    Replies
    1. Oh zammm, so you are saying everyone is a loser because they work 40hr/week gigs, including you, your mom. Your kids are loser too then..or they can be winners because they don't work. And btw MLMer works 40hr/week gigs too just that they break the time up to flexible times. So mlmers are losers too from your definition.

      See that is the problem with mlm distributors. They have to flaunt their winnings and put down others at other expense. Do you know psychologically what that means? It means the person is INSECURE. If you do that, that means you are insecure subconsciously. I never will want people like this on my team. You give us mlmers a bad name. Do you see bill gates flaunt his wealth? no. He knows he is wealthy. smh.

      Delete
  61. DON'T ENTERTAIN CLOSE MINDED PEOPLE.

    ReplyDelete
    Replies
    1. But you have to if you want to open their mind. It is close for a reason because no one entertained them.

      Delete

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