What You Need to Know About USANA and USANA Health Sciences?
Planning to buy USANA products or join the business opportunity? Well, better check this USANA MLM Review to help you make the right choice.
What Exactly is USANA?
USANA or Usana Health Sciences, Inc., is a multi-level marketing company based in Utah, U.S.A. that produces and sells nutritional products, dietary supplements and products for skincare. In 2015 it ranked as the world’s 24th biggest multi-level marketing company in terms of revenue. In 2004 to 2006, USANA made it to Forbes “200 Best Small Companies” list.
Authored in 1992 by Myron Wentz, a microbiologist and immunologist, USANA is composed of 3 major product lines:
#1 USANA Nutritionals
(Nutritional Supplements: Cellsentials, Optimizers and Digestion/Detox)
In 2011 Usana Essentials was tested by ConsumerLab.com in its Multivitamin and Multimineral Supplements Review of the leading multivitamin/multimineral products sold in the U.S. and Canada. The review included a test of some selected index elements of the products and their capacity to disintegrate in solution as per the guidelines of United States Pharmacopeia, and to determine the lead contamination threshold as set in California Proposition 65, and determine compliance of the labeling requirements of the U.S. Food and Drug Administration (FDA) . Usana Essentials passed the ConsumerLab’s test.
#2 USANA Diet & Energy
(Meal Replacements, Protein Shakes, Bars and Rev3 Energy Drinks)
#3 USANA Sense & Celavive
(Skin Care and Treatments, Hair and Body Care Products)
Per data effective 2019, USANA claims to have marketed their products in the United States, Canada, Australia, New Zealand, Hong Kong, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Netherlands, the United Kingdom, Caribbean, Puerto Rico, Philippines, France, China, Spain, Italy, Germany, Romania, Denmark, Colombia and Indonesia.
What is USANA MLM?
Dr. Myron Wentz, as an immunologist, specialized in the development of diagnoses for infectious disease and culture technology of the human cell . Starting with a diagnostic testing company named Gull Laboratories in Salt Lake City, Wentz, later moved to West Valley City, Utah and spun Usana Health Services or USANA, an MLM or multi-level marketing manufacturer of supplements and personal care products.
As an MLM or multi-level marketing company, USANA’s products are not sold in retail stores but can be bought only through its “associates” or independent distributors or direct purchase to the company. In 2014, the company claimed it had 349,000 active associates in its global distribution network and 81,000 active “Preferred Customers”. They said that more than 90% of product sales came from associates purchases.
Income is earned by associates through direct sales or percentage commissions from the sales of their network of recruits commonly called as “downlines”. This network of downlines are multi-level thus the name multi-level marketing because advertisement and sales are made through this network of downlines and not through conventional means.
USANA’s compensation package gives associates commissionable ‘points’ for total sales volume for a determined period. When these points reach a particular threshold, the commission is released to the associate. To get their commissions, an associate is required to purchase a minimum volume of the products for a particular period of time. Otherwise, the associates forfeits the commission.
Are There Profits In MLMs?
If not, is there a Better Alternative?
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Profits in multi-level marketing is largely dependent on your efforts and charisma in endorsing the products and closing sales. If you ask if there is money in MLMs? The most logical answer is Yes! But the question that should have been asked is how and what’s at stake for me when I decide to engage in MLMs like USANA? What should I look for an MLM company to know it’s going to give me profits? To answer this questions, let’s check this out:
What Factors Make MLMs Profitable?
There are basically two (2) factors to consider to know if an MLM company is profitable for its independent distributors.
#1 Product
To be profitable for independent distributors, the MLM must have a good product. It must contain effective ingredients to deliver its claims. Also it must be backed by science and must be a product of good scientific research.
#2 Good and Stable Company with Good Compensation Package
To assure distributor’s profits, especially in terms of commission pay outs, the MLM company must be stable and doing good business. Stability of the MLM company is important because you need to invest time and resources to build your network to give you residual income later. Doing good business does not necessarily mean the company is immune from controversy. See what are the nature of the controversies it is involved in and how did the company handle it.
Also the company must offer a good and profitable compensation package to distributors. This is important to have a satisfactory return for all your effort and hard work. Check also how the MLM company supports distributors, handle complaints and returns and the incentives offered.
Are Usana’s Products Worth Their Price?
USANA’s widely popular product and mostly sold is it’s CellSentials. More than an average multivitamin, Cellsentials claims to be a cellular nutrition system that includes 2 vital nutritional supplements: The Core Minerals and the Vita Antioxidant. Taken together, it is said that they can deliver a broad spectrum of antioxidants, vitamins, minerals, and nutrients for cell support and long-term health.
CellSentials is a 28-day supply multivitamin supplement that is recommended to be taken 2 tablets twice a day with food. It costs $59.35. The Preferred Customers can purchase this product at a discounted price of $53.35. The backpackage says that the vitamins contained in the tablets exceed the Recommended Daily Allowance (RDA). For example, Vitamin C (330%), Vitamin A (120%), Vitamin D3 (250%), Vitamin B1 (1,000%) and Vitamin K (340%)
Here you can easily see that the product has loaded up on essential vitamins and this accounts for the benefits it claims. It should not be surprising if USANA is a little bit more expensive than ordinary multivitamins. So if on a tight budget one can go for ordinary vitamins but if one desires to give one’s health a good boost, then USANA is a great product to help.
What is the Usana MLM Business Opportunity?
As a Multi-level Marketing Company, you join USANA as an independent business distributor. You are more like an independent business partner which means you run and do your business on your own regulated by USANA Business and Marketing policies, rules and guidelines.
As an associate or independent distributor you can work at your own flexible time and schedule. You can work full time or part time according to your own personal preferences and business goals. You work by building your “network” by gaining more recruits and helping your recruits get their own recruits to widen and enrich your own network.
If you are an independent distributor, selling the products may come easy as Usana products are only available for purchase through an associate. So there appears an exclusivity of the products which can work to an associate’s advantage. Also the company said that those sold in Web Stores or online like Amazon are counterfeits.
How Much Do I Need to Pay to Become an Associate?
Purchase a Welcome Kit at $29.95 and be registered as a USANA associate. The Welcome Kit contains documents to help you in your new business but does not contain any products at all. The Welcome Kit includes the Online Resource Guide, Get Started Checklist, Usana Policies and Procedures, Compensation Package Information, and other information you need to know to build your own network.
Who are the The Preferred Customers?
Preferred Customers are a new trend in MLMs businesses. They are customers who become preferred members and get discounts on purchases and usually in most cases, get free delivery of their product on a monthly basis. USANA Preferred Customers receive a 10% discount off the products.
Preferred Customer schemes are designed to give associates a regular and stable monthly purchases and income from these customers. These customers commit to buy the products and have it delivered to them for a fixed number of months after leaving checks in pre-payment before delivery.
The Pros and Cons:
Pros:
USANA is FDA Approved
Although there are not many MLM with FDA approval, USANA is a lucky one to get the nod of the U.S. Food and Drugs Administration. In 2011 it was granted an FDA drug-establishment registration
This doesn’t mean however that its products are FDA approved, rather it means that it is an FDA-approved facility. A drug-establishment registration from the Food and Drug Administration means it is authorized to manufacture over-the-counter drugs. This could mean that the company has maintained a considerable standard in its productions to have been granted this approval.
So Far USANA has No BBB Complaints
USANA has been listed on the BBB website. So far the Better Business Bureau website has not recorded any customer complaints. It is currently enjoying an A+ rating.
So Far No Product Complaints
So far USANA products have not had any significant customer complaints except a comment in Amazon that the product she received was a fake. This company answered that they do not sell their products in Amazon, and it is only available from its certified and registered associates.
So Far Good Customer Satisfaction Rating
So far, USANA products enjoy a high customer satisfaction rating most specially their CellSentials product. There are positive feedbacks of improved health. If there are dissatisfied customers, maybe their comments have not been published for the reason that none so far can be included in this review.
Cons:
Product Can be Expensive
USANA products can be a little expensive for the ordinary budget. Its vitamin and mineral supplement can differ in cost against ordinary supplement basically due to its exceeding the Recommended Daily Allowance (RDA).
Shortfalls In Its Business Practices and Product Endorsements
In 2007, some government officials and industry experts raised questions on the cost of USANA’s supplements and its business practices. Radio-Canada later aired a report finding that some associates violated company guidelines and distributor’s agreements and others even claimed the product to cure leukemia.
This contrasted the legal requirements that Canada is imposing for multi-level marketing companies to give clear and complete information about the possible income of a distributor or associate.
Also, John Cloud, who is a senior writer for Time Magazine, made a personal evaluation of the nutritional supplements of the company. And he concluded that the product only gave him minimal health benefits. Cloud also said that he experienced a placebo response when taking the supplements which made him feel more energetic despite having no physiological reasons to do so and which only led him to eat and gain weight, a phenomenon referred to as the “licensing effect”.
Misrepresentations
USANA in 2007, battled a few controversies over its executives who were discovered to have made misleading statements about their qualifications. Company executive Denis Waitley falsely claimed that he has a master’s degree from the Naval Postgraduate School. While Ladd McNamara quit the company’s medical advisory board after having been found that his license had been previously revoked.
Vice President of Research and Development, Timothy Wood, lied about his doctorate degree in biology and Executive Vice President and Chief Financial Officer, Gilbert Fuller, who continued to use his CPA title despite it having expired some 10 years prior.
Expert’s Opinion On Pyramiding Scheme
Although no conclusive verdict has been handed, yet a New Zealand government statistician Dr. Murray H. Smith, said in 2008 that he can make a strong argument that the company could be a pyramid scheme. Asked by the National Business Review to conduct a review of the firm’s business structure and compensation plan, Smith opined that, from a statistical not legal standpoint, the firm has a few characteristics that are commonly occurring in pyramid schemes. He said that members may have a hard time to recoup their investments and that those at the top are more likely to make more money than those on the bottom of the structure.
Final Thoughts:
My Real Diet Advice for you: Essential to make a good review is to mention the 2 aspects of USANA.
Firstly, its Products. So far, no significant customer complaints have been recorded. In contrast however, there are many good reports of improved health using its products especially the Nutritionals. Also, its FDA approval to manufacture over the counter products shows its high quality standards which can be fairly credited to the company.
Overall, as to its product, I can highly recommend it. Although a bit expensive since it’s contents are exceeding the Recommended Daily Requirement but if the benefits are worth it then purchasing the product even if it is a bit pricey should also be worth it.
However, if the budget is a bit tight or you’re just not completely sold out to the products, then by all means, try to find a less expensive vitamin and mineral supplement. Price should not be a hindrance to our goal of having a fit and healthy body. There are other alternatives and we can always supplement our diet with healthy, all natural foods.
Secondly, as to its company and business schemes. So far the company has been doing well financially although some of its executives were shamed by lies and misrepresentation on their licenses and qualifications. The company may have missed on its duty of checking on these vital representations and there should be no excuse for that.
As to its business schemes, an expert opined that it could be a pyramid scheme. It could, only that there is yet no conclusive decision or findings to officially label USANA as such. So we’ll just have to leave it at that.
Finally, becoming a USANA associate should be your personal choice. Just remember that if you do, you are an independent business distributor. You manage your business according to your best judgments provided you do not run counter with company policies, guidelines and rules. The best part is that you can do it at your own time and pace, part time or full time.
Another thing to consider is the initial payment you need to shell out for the Welcome Kit. It’s pure expense although you can recoup it later if business runs well. What you get after paying the amount are documents to study, so it means your giving money before even making your first sale. Also remember that income is from direct sale or commissioned based. If you don’t sell or recruit you will have no income.
Based on the expert’s opinion, there is a possibility that you can not really earn income as much as you think you can unless you’re one of those on top of the network structure. But it doesn’t also mean you will not earn income. Again income is based on your hard work until you are able to build your own network where you can earn residual income.
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Sources:
- “USANA Health Sciences Announces Plans to Expand Operations to Colombia”. PR Newswire. Retrieved 17 March 2014.
- Helen Malmgren (13 July 2007). “Most People Won’t Get Their Money Back”. National Business Review. Retrieved 11 August 2011.
- “Direct Selling News Global 100”. Direct Selling News. Retrieved 24 November 2015.
- “Vente à paliers multiples: légale, à de strictes conditions!”. La Facture (in French). 24 February 2009. Radio-Canada. Retrieved 11 August 2011
- 200 Best Small Companies”. Forbes. 12 October 2006. Retrieved 11 August 2011.
- Competition Bureau – Multi-level Marketing and Pyramid Selling”. Competition Bureau Canada. Retrieved 11 August 2011.
- John Cloud (12 September 2011). “Nutrition in a Pill?”. Time Magazine. Retrieved 9 August 2012