Every MLMs biggest nightmare came true with USANA. They were investigated by the SEC and the FBI, and took a HUGE hit because of it.
But, unlike most MLMs, they bounced back. While they’re not where they were 10 years ago, they seem to be on an upward swing. Does this mean I’m involved?
This video explains everything:
Make sense? Either way, here’s 15 critical truths you need to know about USANA.
#15. 200 associates have hit the million dollar mark
They’ve had 200 of their distributors earn $1 million or more, which is pretty impressive. Most established MLMs have closer to 100 in the 7-figure club, if they’re lucky. [1]
#14. $76,000 average yearly income for established, full-time associates
If you’ve ever looked at the income disclosures for MLM companies, you know that they aren’t pretty. Forget about six figures, most annual incomes sit at the three-figure level.
Usana’s is one of the most impressive I’ve seen. $76,000 average annual incomes are unheard of in MLM. However, that’s for their established, full-time associates. How they define established is unclear, but it probably excludes a majority of their distributors. Still…impressive. [2]
#13. $25,000 annual average income
This is for associates who have earned at least one commission check a month, so not across all distributors.
Decidedly less impressive than 76k, but believe it or not, this is actually fantastic for MLM.
This doesn’t include people who just started, people who haven’t built up a customer base, or people who sell here and there but can’t make consistent sales. It only includes people who earn at least SOME commission every month. Basically consistently active members. [3]
#12. Six ways to earn
Usana’s binary compensation plan offers six different streams of income as follows:
- Retail Sales
- Weekly Commissions
- Lifetime Matching Bonus
- Incentives
- Leadership Bonus
- Elite Bonus
The way the plan is structured allows their distributors to start earning pretty quickly, promotes teamwork, and allows for exponential growth.
#11. 10% commission on personal sales
Distributors earn commission on the difference between their Preferred Price and the retail price, which they have the ability to set as they like. While you could set the retail price super high and hope someone shells out unnecessary money for your product, most products are recommended to retail for 10% more than the preferred price.
10% commission is not impressive, at all. But they make up for it with other forms of income.
#10. 20% commission on group sales volume
This is more impressive. Associates earn up to 20% commission on their group sales volume, which is better than the typical 5-10%.
#9. Really good, renewable bonuses
Often MLMs provide a handful of small $50 or $100 bonuses in the beginning to juice their distributors up and then disappear.
Usana offers a variety of generous bonuses, including a lifetime bonus that matches of commission volume generated by your personal recruits who have achieved Premier and Premier Platinum status. This is an amazing deal, if you can train your recruits well enough to achieve.
Other bonuses are equally generous and really focused on leadership and teamwork. [4]
#8. Super cheap start-up cost
Newbies can become associates for as low as a $30 payment for their Business Development System, which includes all the training and materials they need to get started.
Of course, they’ll probably still need to purchase some product and additional maybe even additional training, but it’s still very cheap compared to other MLMs.
#7. Well established
They’ve been around for over 20 years, so they know what they’re doing.
Their profits aren’t going to tank in a month’s time, and you can probably rest assured that they’re a decently reliable company. It doesn’t guarantee that you’ll make money personally, but it does give some peace of mind.
#6. Proprietary InCelligence formula
Did you know that you can actually unlock the power within your cells to optimize your functions using cell-signaling technologies?
Does this sound a little sci-fi-esque? Wondering what on earth it even means?
Yeah, me too.
Usana’s products are based on InCelligence blends that not only nourish your cells, but they trigger powerful mechanisms within your cells that help them produce more antioxidants while supporting the body’s natural cellular renewal process. They make you more adaptable.
Sounds like some next-level, future species, mega-evolution stuff. Crazy. Does it actually mean anything?
#5. Not evaluated by the FDA
Well, none of their statements have been evaluated by the Food and Drug Administration.
Additional, their patent is actually still pending.
And they specifically state that the product “is not intended to diagnose, treat, cure, or prevent any disease”. This last part is actually refreshing given the number of health and wellness MLMs that have received warnings from the FDA for their false health claims.
But does the product do anything at all?
#4. Some scientific backing for health benefits
Although their InCelligence blend is still patent-pending, they do already hold five other patents.
They also have a qualified in-house research team that’s produced dozens of studies and have contracted third parties to research and ultimately back their products time and time again. [5]
#3. Products include the health and wellness trifecta
Like almost every other health and wellness MLM, they sell the following three types of products:
- Usana Nutritionals – supplements and multivitamins
- Usana Diet & Energy – meal replacement and energy drinks
- Sense Personal Care – skincare, hair, and body products (better than Nerium?)
Usana’s nutritional products were even tested by ConsumerLab.com in 2011 and they passed. In order to pass, they needed to follow pharmaceutical guidelines, FDA guidelines, and not contain toxic trace chemicals like lead. [6]
#2. Recovered from a huge hit in 2007 after FBI and SEC investigations
Usana was untouchable before 2007 when it came to profit and growth.
Then Barry Minkow, a former stock fraud felon, wrote and submitted a 500-page report basically alleging the company was a pyramid scheme and committed illegal practices to gain their outstanding profits.
Usana’s stocks plunged from over $60 to under $35 in a matter of months. The company was in big trouble. Minkow admitted to short-selling Usana stocks, so regardless of whether or not his claims were true, his motive was obvious. [7]
However, Usana survived all investigations and lawsuits, with investigations concluding that there were no incriminating practices taking place and no further action was necessary. [8]
In the end, this proved the quality of Usana as an MLM. And they’ve bounced back, which is very impressive.
#1. Huge and rapidly growing revenues
In 2012, Usana’s revenue hit $648 million.
They topped that in 2013 with $718 million, and again in 2015 with $790 million. Very promising. [9]
On top of all that, expenditures for each year were less than 1% of their revenue. These are HUGE profit margins.
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So while Usana is one of the biggest in the game, is it still worth your time? If you’re in it for the products, then sure.
But if it’s just the money you are chasing, you might not get a great return for your efforts.
If you like automated ways to build passive income, there are better ways.
(and you can trash those old MLM habits, too)
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