The Usana Scam
Usana is a nutritional company that sells vitamins and other health related products under a network marketing model. The term Usana Scam is something that many people have been searching for online in order to become better informed about this particular MLM company. So is Usana a scam? Well, under what the law states as a scam, Usana is not a scam. However, this doesn’t mean that you should jump aboard its ship. Let’s take a look at what is really going on behind the scene of this multi-level marketing company.
As with all make money opportunities, the best thing to do is to do your research before getting involved. This only makes sense. Just because your friend tells you an opportunity is sound and will make you money, it doesn’t mean that it will. The problem with going online and searching for terms like Usana fraud or scam is that you will inevitably run into websites or forum that are dominated by people who have failed in the business and never even gave it a real try. This isn’t just for Usana, it’s for all MLM companies. Now on the other hand you will find reviews that are written by Usana reps which can be quite bias especially if the title of their site led you to believe that you were going to read about how Usana is a scam.
Update: Numbers are showing that the Usana business is declining due to former execs leaving the company and starting a new one. This has caused many top distributors of Usana to jump ships and join the new company, Ariix.
So let’s make it clear: Usana Health Sciences, by definition, isn’t a scam. Unlike those ponzi schemes where the only product is money that is being passed around from new members to older members, Usana makes money by selling products. If you look at their stock prices over the past 10 years, you will see that prior to the economy taking a turn, they increased their earnings every single quarter. So how were they able to do this? By selling products. But who exactly do they sell these products to? That’s right, recruits. Obviously, they have customers as well but the majority of their products sold every month is to recruits who need to buy the products in order to make a commission. This is called the “pay to play” structure where in order to qualify for a commission, you need to buy a certain amount of products from the company each and every month.
If you think about it, this is a genius idea. What better way to ensure that your products get sold than to force your reps to buy it from you? Of course, like any other network marketing company, they will say their reason for having this requirement is that it doesn’t make sense for a rep to be selling something that they don’t use themselves. This may sound like a great answer but Usana also claims that their vitamins are superior to their competitors and that’s why they can charge so much for their products; it’s just that good.
At this point, this Usana scam article may be confusing you. Is Usana a scam or not? The answer is, no, but it depends. It depends on how the reps go about recruiting people. If you were told that this business doesn’t take a lot of work and that you can retire within a year, then you may want to investigate a bit more. Yes, it’s possible to retire within a year with MLM but it’s also possible to retire within 1 minute with a lottery ticket.
The fact is that to be successful at anything takes hard work and time. Are there ways to quick riches? Sure, but it doesn’t guarantee that the money you make is sustainable.
If you are reading this article, them most likely, you searched for Usana scam to find out if Usana is a scam or not. This means that you must of been approached by a friend or learned about this company online somewhere. If that’s the case, you are wondering if you should join Usana or not. Well, this may help you decide.
Different Usana Network Marketing Groups
There are several different groups in Usana or any other network marketing company. The first group consists of people who make money by selling the products to one customer at a time. They hope the customers will like the product enough to go on automatic shipment every month in order to make residual income. This way can make you money but it will take a long, long time; long enough to make most people quit.
The second group consists of people who put on presentations and have reps invite their friends to these presentations. The presentation itself can be ran in various ways. The most basic, and probably least effective way, is to just give information about the company. It’s just a quick 30 minute presentation that shows you the opportunity and if you want to sign up, good. If not, that’s it. Another type of presentation which is much more successful, uses psychological tactics.
Everything from how the reps dress to what type of music is played, to the length of the presentation, to how you are asked to join at the end is all planned out to strategically get you to sign up as a member. Does it work? Yes. Is it ethical? Depends on your definition of ethical. If the intention of the Usana reps is good but they designed the environment in a way to influence your decision, is it ethical? After all, once you’re in Usana MLM or any other MLM, you will believe that it’s your duty to help other “escape” the rat race called a job. In their minds, they are doing you a favor even if they lied to get you to the presentation.
The 3rd group consists of people who do all of the recruiting online. They set up websites and join forums and buy network marketing leads. Many people like this approach better because they don’t have to ever meet their downline or attend weekly presentations and trainings. Plus, they don’t have to bother their friends.
Here’s the bottom line of this so called “Usana Scam”:
How to Make Money with Usana – Recruit. Whether you do the recruiting or motivate your downline to do the recruiting, it doesn’t matter. Someone, somewhere needs to be recruiting.
The question you’re asking yourself is, “should I join Usana?” If you are okay with the fact that the company is making most of its money from getting its recruits to buy their products every month, then you should consider joining. You’ll make a lot of positive friends especially if you’re doing this the traditional way (i.e. not online).
If you are okay with the fact that most of the people/friends you recruit will fail to make much money with this business, then you should join. The reason most will fail is that most people won’t put in the work and time necessary. This may be caused by the illusion they were given when they joined that making money in Usana is going to be a walk in the park. The fact is that Usana is no different than being in sales but since the products are so good that they it sells itself, you don’t have to worry if you are bad at sales. Although, it’s funny how they require their reps to buy the products on a monthly basis. If the products were really worth the price, see prices here, wouldn’t reps buy the products anyway? Apparently not. Also, most reps aren’t able to sell these vitamins without attaching a business to it. Just go to Ebay and you’ll find a ton of people selling their Usana vitamins from the Healthpak 100 to the regular bottles for a deep discount to reduce their loss. Why buy it at wholesale prices when you can get it for “at loss” prices?
If you are okay with hiding what you really do to people who ask you what you do and instead come up with fancy titles like “director of marketing” even though you’re really just a sales rep, then you should join. Most recruits are told to be general when it comes to answering questions about what they do because most people wouldn’t understand until they come to a presentation.
If you are okay with people accusing you of being part of a scam, then you should join. Again, Usana Health Sciences is not a scam but because it does involve a business opportunity for people to make money, there will be those who will take advantage of others and give the company, and the MLM industry a bad name.
If this sounds like too much for you, then maybe it is. This Usana scam article is written only to give you a better understanding of what this business opportunity is about. Am I in Usana or any other MLM? No. I make my money through internet marketing. I like to do things where I can proudly tell people exactly what I do if they ask even if I don’t make a lot of money yet. I don’t look at people with dollar signs in my eyes and think of them as potential recruits. I am not forced to buy anything I don’t really want. If I really wanted something, I’d buy it regardless of a requirement.
Network marketing truly is a powerful way to make residual income. However, it’s not for everyone. If you’re not okay with any of the stuff I wrote about in this article, I suggest to look elsewhere. Never put money ahead of everything else in your life and you will find that you will make ethical decisions and have better peace of mind. Hopefully, this Usana scam article was helpful to you.
Since you are interested in making money, if Usana or MLM doesn’t seem like something you want to do, perhaps you should try internet marketing. This is what I do to build residual income. No recruiting involved, no selling to friends, and it’s truly my own business.