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For information about Usana we
turn again to Wikipedia for their entry:
USANA Health Sciences, Inc.
(NYSE: USNA),
or USANA, is a Utah-based multilevel marketing
company that produces various nutritional and skin-care products. USANA
products, most of which are manufactured at the company’s West Valley City, Utah facility,
are sold in sixteen international markets via a network of independent
distributors (referred to as "associates"). USANA is the 24th largest
direct selling company in the world.[2]
The company has sponsored and provided products to several athletic
organizations. In 2007, several of USANAs executives were discovered to
have made false statements in their resumes.[3]
Is Usana a pyramid scheme?
Again, from Wikipedia:
USANA, a multilevel marketing
company, sells its products primarily via non-employee distributors
known as sales "associates" as well as via the Internet. Associates may
be eligible to receive commissions based on their own product sales as
well as through sales made by any new distributors they recruit
(referred to in multilevel marketing parlance as a "downline").[4]
USANA's compensation plan awards commissionable 'points' for sales
volume. When the points reach a pre-determined number, the associate is
paid. If the points do not reach the payment threshold, they accumulate
towards the next week. The firm requires that associates purchase a
minimum of 100 volume of products (equivalent to approximately
$110–$130) every four weeks in order to remain eligible to receive
compensation. If this minimum is not maintained, the distributor loses
the points that have accumulated but not yet been paid.[40]
According to documentation from USANA corporate, 87% of associates fail
to make enough from commissions to recover the cost of their qualifying
purchases with 67% of all associates making no commission; 72.2% of the
company's commissions are earned by the top 2.31% of associates.[41]
According to a 2011 article published by the Salt Lake City
Tribune, the firm's FY09 income disclosure statement indicated that
the average yearly income of the company's 165,710 associates, which
includes those just starting out, was $617, while the
"top-of-the-pyramid distributors earn an average of $857,865 annually".[42]
New Zealand government statistician for the Commerce Commission, Dr. Murray H. Smith, who served as an expert witness in every pyramid scheme case brought by the Commission preceding 10 years, opined in 2008 that very few USANA distributors are likely to become wealthy, and stating "you can make a very strong argument that this could be a pyramid scheme." When asked by the National Business Review to review the firm's business structure and compensation plan, it was Smith’s opinion, from a statistical not legal standpoint, that the firm demonstrated a number of characteristics commonly occurring in pyramid schemes including that most members recoup less than what they pay to participate; that those at the top of the structure are more likely to make more than those on the bottom of the structure; and that as the company grows it will become harder to recruit others. Dr. Smith also noted the company’s significant turnover in distributors making it necessary to continually recruit.[41]
What you should know in order to succeed in Usana
It makes little sense for you to invest so much of your time - of
your life - in a company
which isn't going to give you the best of the home business
opportunities available these days.
The primary problem which Usana and other MLM organizations have
is
that once a new distributor runs out of "warm prospects" (people he
personally already knows), then he's dependent on those people who he
has already sponsored to get their friends and associates
sponsored.
Generating network marketing leads to become new prospects has
become a major issue for usana and other MLM home based businesses.
For
any home business opportunity, we highly recommend learning and
applying the "funded
proposal" system as developed by Mike Dillard in his "Magnetic Sponsoring" training. Additional to this
is Mark Hall's training site MLM Rock
Stars, which gives you free training and
necessary tools to generate your own MLM leads - which means, again, inviting them to come to you
instead of buying cold lists and chasing them
yourself.
What makes Usana a top MLM company?
These top MLM Companies were determined by the folks at Nexera.
The reasoning behind their research is outlined below:
2) The company must be in business for at least 10 years as of December 31, 2012.
3) The company must have a Google Page Rank - GPR. A scale of 1 to 10 with 10 being best.
4) The company must have an Alexa Rank - AR. Here the smaller the number the better.
5) The company must show up in Google Trends - GT. All Regions. Last 12 months.
Why 10 years? Because that amount of time really seems to matter. For example, according to research, since 1956 thousands of different MLM, Multi Level, or Network Marketing companies have opened their doors; and to date only +/- 50 MLM companies have found a way to celebrate their 10th anniversary and still remain in business today. Now, to be completely fair, we should also point out that each and every company on our list was at one time a start-up company too.
For purposes of comparing Internet search term interest using Google Trends (GT), all companies were compared to the term, MLM. A score of 1.00 would indicate the same level of Internet search interest; anything above 1.00 more interest, anything below 1.00 less interest.
Now that you know about Usana as a top MLM company, are you ready to learn and use the system
which makes the top-earners what they are?
Click here to find out what you need to know.
Regardless, we wish you the best of luck and progress as you
continue with your home business marketing training.
