|Usana health sciences, Scam or Not?|
USANA was founded in 1992 in Utah USA, Selling nutritional and skin care products. Their products are distributed via direct selling and is using the pyramid like Multi Level Marketing business model. Products are obtainable by their registered distributor called associates.
In 2010 they have expanded to Australia, Canada, New Zealand, Japan, UK, Netherlands, South Korea, Hong Kong, Taiwan, Malaysia, Singapore, Mexico and the Philippines. During this time 90% of their products are bought by their associates and only 10% was from their preferred costumer. They have more or less 222,000 associates and 68,000 customers. Usana's associates earn by the products they directly sell as well as commissions from the sales of distributors they recruit referred to as their downline. Usana also has this compensation plan that awards points for sales volume. These points when they reached a certain amount in a weeks time will be converted to cash commissions, if the points do not reached the required number it will be accumulated in the following week. However, to be eligible to this, the associate will have to maintain a purchase minimum of 100 volume of products (worth $110-$130) every four weeks. If they fail to do so their points will be lost.
Majority of the associates didn't get rich. Only those 2.31% top of the pyramid makes an average income of $857,865 annually. These facts are contradicting to the mission statement of usana ;
To develop and provide the highest quality, science-based health products, distributed internationally through network marketing, creating a rewarding financial opportunity for our Independent Associates, shareholders, and employees.
Is Usana health sciences, Scam or Not?