The following article is my review of the USANA MLM opportunity. I am not affiliated with this company and my sole objective is to present you with an impartial USANA Business review and allow you to determine if USANA is a suitable company for you to join. USANA is similar to almost every multi-level marketing business, and needs to be evaluated by means of checking out several main components of the organization.
USANA Health Sciences was founded in the early 70s, by Dr. Myron Wentz, and is currently headquartered in Salt Lake City, Utah. The company produces various nutritional and skin-care products, most of which are manufactured in the United States and sold by independent distributors. The company brings in a very large revenue stream and has an arena named after them which hosts various concerts and events from many popular acts. Other than their price, the only negative feedback I have heard about is the success rate with the network marketing program.
There are four main brands in USANA’s product line; USANA Nutritionals (Essentials and Optimizers nutritional supplements), USANA Macro-Optimizer foods (drink mixes and nutritional bars), Sensé Basics and Enhancers (face, hair, and skin care products), and Rev3 Energy drinks. USANA’s products are pretty pricey and the company claims that is because they are made of such quality. A few industry nutritional supplement consulting firms have disputed that fact and claim that most mlm companies offering nutritional products show no evidence to justify the increase over major competitive brands.
There is little doubt that USANA products top notch products, but in order to make a lot of money, the place a very high focus on recruiting sales reps, or independent distributors. Those who got in early are the ones making most of the money and it is the new distributors who are struggling as a whole.
USANA Compensation Plan
USANA pays their distributors on retail sales and like most multi-level marketing companies, most of the residual income comes from building a downline organization. USANA uses a binary compensation plan, which gives distributors points based on sales volume. When the points reach a pre-determined level, the distributor is paid. If the points do not reach the level, they accumulate towards the next week. USANA requires that distributors purchase a minimum of 100 points of products every four weeks in order to remain eligible to receive compensation. 100 points is equal to about $110 – $130. If the minimum point level requirement is not maintained, the distributor will lose the points that have accumulated but not yet been paid on. USANA reported that 87% of associates fail to make enough off of commissions to recover the cost of their qualifying purchases with 67% of all associates making no commission. 72.2% of all companies commissions are earned by the top 2.31% of associates
Why Are So Few People Making Money?
The answer to that is quite simple. Most people in the network marketing industry are still stuck in the 70s when the general public was less skeptical and hard selling your friends and family was actually effective. But in today’s world of network marketing, what does it take to be successful? It’s really quite simple. The top producers in the network marketing industry practice attraction marketing. The core philosophy of attraction marketing, is that you brand yourself as a provider of solutions to other people’s problems. You do this in a way, so that while searching for answers they find you and seek you out, rather than the other way around. That’s right, forgot the traditional methods of making a list of everyone you know. This has led to many ruined family and friend relationships.
I once heard the secret formula explained as “teaching sells.” The internet provides the infrastructure to have greater exposure to those looking for answers to their problems which you can solve. The main difference between this system and traditional recruiting systems is that this brands you first, and then your company second.