If you are a health-conscious person, then, you can consider Usana products. The products are not just for a healthy lifestyle but it is also an opportunity to make a living from it. In this post, I will tell you what is Usana MLM, its pros, cons, and how to earn with Usana MLM.
You will also find out if Usana MLM is a pyramid scheme and if it is legit or a scam.
What is Usana MLM? An Overview
Usana is an MLM company that sells health and nutritional products like vitamins and other supplements. The company is also into personal care, skincare, weight management, and energy products.
Usana was founded by Dr. Myron Wentz in 1992. He is a microbiologist and has won the Albert Einstein Award for different achievements in life sciences.
The company works with reputable scientists to formulate great health and supplement products that help to improve human health.
Usana has medical centers in Cambodia and Uganda.
Usana Category of Products
All the information that you need to make an informed decision about the Usana MLM is available in this section. The Usana products are mainly into four categories. They are:
- Nutrition: Usana’s nutritional products are scientifically researched nutrients to boost your everyday health needs. The products consist of high-quality vitamins, minerals, antioxidants, and supplements. These products are aimed at improving your metabolism, mental & physical health, and for child caring mothers.
- Food & Energy: Usana produces specialized energy drinks and shakes to meet your body’s energy demands. The products are packaged meals and drinks that balance the carbs, proteins, and fats for your body. They also help in providing high-quality supplements to energize your body throughout the day.
- Personal care: You can find nutrient-rich body care and skincare products under this category. Specially targeted for women’s beauty needs, the products include oils, creams, cleansers, gels, shampoos, conditioners, and much more to improve the health of women’s skin, body, and hair.
- Cleaning & Hygiene: Usana’s cleaning products are based on living an active and healthy lifestyle. The category includes toothpaste, handwash, and sanitizers to keep you protected from viral diseases and infections.
In addition, Usana has recently come out with its own brand of products under the USANA Gear category. The products consist of activewear and gear items related to gym activities, and casual wear for both men and women.
How Usana MLM works
Just like every company that operates an MLM business model, Usana makes use of direct selling to sell products to their customers.
It is not a new method of selling but it is very effective.
Since the advent of social media, Usana members now use different social media platforms to promote their products and make some sales.
This method no doubt saves Usana a lot of money that would have gone into advertising. Usana members are responsible for the promotion and sales of their products.
It sounds exploitative but the reality is that this is how MLM companies operate in general.
Usana MLM Compensation plans
There are six ways to make money from Usana. These are different compensation plans:
- Weekly commissions – This is where you can earn a commission from the effort of others you recruited into your team. The weekly commission of 20% is from all product sales that make up the Group Sales Volume. You will earn more if your friends invite their friends. All the people they recruited are still under your downline. You are to recruit just two members to get started.
- Lifetime matching bonus – The Lifetime Matching Bonus offers you between 2.5% and 15% commission. For you to earn this commission, you have to sponsor your recruited members to go for one of the Usana pacesetter programs. If you sponsor two friends and your friends order enough products and stay active for 8 weeks, you will earn a commission as a pacesetter. If you sponsor another four friends, and they stay active for 8 actives after buying some products, you will become a Platinum Pacesetter. This attracts a higher commission.
- Incentives – If your performance improves, you can qualify for travels and prizes.
- Leadership bonus – 3% commission of all the sales volume is distributed every week to associates. You must be at least a Gold Director to qualify for this commission.
- Elite bonus – 1% of all the sales volume is shared as commission every three weeks. The Elite Bonus is for 40 top earners.
- Retail sales – This is the most realistic way to make money with Usana. You can buy the Usana products at a particular price and sell them at your price. You can make a profit margin of between 12% and 15%.
How to make money with Usana MLM?
There are two ways of making money with Usana. They are:
- Selling of products
- Recruitment of members
- Selling of products – You can make a reasonable margin of profit when you sell Usana products. You can make between 12% and 15% profit. It will make a lot of financial sense if you sell more than one product.
- Recruitment of members – This is where the earning of the commission comes in. To earn great commissions, you have to recruit people into your team. This means you have to build a downline. The commissions you will earn from your downline will improve your finances over time since you are going to earn a commission from every product sold by your downline.
How to join Usana?
To join Usana, you need to pay a startup fee of $29.95. There is also an annual fee of $20. After these fees, you have to choose a business pack which contains products you will sell to people.
There are three business packs to choose from:
- Basic Business Pack – This pack costs $305
- Entrepreneur Pack – It goes for $625
- Professional Pack – The pack is for $1,250
If you don’t have the money to buy any of these business packs but you want to buy the products to sell, you would have to buy products worth $240. You also have to pay $120 monthly to keep you active.
Visit https://www.usana.com/ux/dotcom/#!/enu-US/home to know more about Usana.
Can Usana be seen as a pyramid scheme?
Usana members sell products and recruit new members. This means the company doesn’t operate a pyramid scheme.
Usana strictly operates an MLM business model. It focuses on massive recruitment to drive the sales of its products.
Lawsuits against Usana
In February 2007, Barry Minkow, founder of Fraud Discovery Institute filed a lawsuit against Usana for operating an illegal pyramid scheme. The US Securities and Exchange Commission found nothing in their investigation and dropped all the charges on Usana alleged by Barry Minkow.
In April 2007, a class-action lawsuit was filed against Usana for inflating prices artificially for their common stock. In January 2008, a shareholder lawsuit was filed against Usana for misleading the investors on its growth and business model sustainability.
An investigation was conducted by US Securities and Exchange Commission and both the lawsuits were dismissed clearing the allegations against Usana.
Frequently Asked Questions
1. What is Usana’s yearly revenue?
Answer: Usana makes more than $1 billion in a year.
2. Is Usana rated by BBB?
Answer: Usana is rated A+
3. How many distributors does Usana have?
Answer: Usana has more than 500,000 distributors.
4. Is Usana approved by FDA?
Answer: Yes, Usana is approved by FDA.
Who is it for?
Usana MLM is for anyone interested in making money within a flexible schedule. It is ideal for people who like direct selling.
- Established organization – Usana is an established company that has been in operation for 29 years. Many MLM companies have closed down within the first five years of their operation. So, it is not a mean feat to be in business for 29 years.
- Trustworthy – The fact that the company has operated for almost three decades makes it trustworthy, dependable, and reliable. Usana is also trusted by many professional athletes. Athletes use health supplements to boost their performance.
- Positive reviews – Usana has a lot of positive reviews about its products. The founder, Myron Wentz is also a renowned microbiologist who has won many awards for his scientific work. Usana products are scientifically formulated to enhance the health of the users.
- Low startup cost – The startup cost for Usana is one of the lowest in the MLM industry. It costs just $29.95 to join the platform.
- Costly products – It is no longer surprising that most MLM products are very costly. Honestly, Usana products are expensive. It is made for people who can afford them. The high cost of the products will surely affect sales since most people cannot afford them. For instance, Usana’s flagship product, the Usana CellSentials sells for $60 per bottle. There are 112 tablets in a bottle.
- You have to keep buying the products as a member – As a member; you have to keep buying the products just to make sure you are active. In the case of Usana, you have to sell products worth $200 to remain active. If you don’t sell the products; it means you have to buy them for yourself. If not, it is safe to say you are no longer in contention.
Legit or scam
Usana MLM is legit. It is not a scam. Many people think it is a pyramid scheme but it is not.
Conclusion: Is Usana MLM recommended?
Usana MLM is recommended if you can go through the stress of recruiting hundreds of committed people to be your downline. This is the only way you can make progress with the business.
It is not recommended if you cannot embark on a massive recruitment drive.