Usana Health Sciences has created a worldwide opportunity
Usana opened their doors for business in the United States back in 1992. The company was founded by Dr. Myron Wentz and has recently expanded to 12 different countries. The three main focuses are overall health and nutrition, weight loss and management, and finally skin care.
Now we will get into a more detailed description of the company, its products, opportunity and overall standing in the market.
Is the company stable?
Usana as a company is doing very well, with high profit margins and plenty of cash flow. They are a publicly traded company that has down very well in the stock market. If you are interested in the Usana opportunity, you will be glad to know that the business is solid.
Kinda wish I had invested back in the day!
How about the products?
Usana Health Sciences offers a solid product line with a good variety for their customers. In my opinion, the products are a bit overpriced compared to some other companies who target the higher quality nutritionals, but they are still within range to make it a good value for some customers.
To sum up, the products are good and fit the need of many consumers. Everything seems fine so far.
...Next?
Is the opportunity reasonable?
Unfortunately, we do have some issues with the actual opportunity, from the commission structure to the amount of product purchases required a month. From what I can tell, the business has a traditional MLM structure. Although, this can make some incredible success stories, it can also leave some out of the success and financial freedom that they had hoped.
I'll address each one below.
The Compensation Structure
The Usana Compensation Plan is a binary plan. What that means is that you can only have two distributors in your frontline, which essentially splits your business into two sides, let's call them Side A and Side B. Now, binary plans generally pay you only on the smallest of the two sides.
To maximize this pay plan, you have to build two identically even sides, which is usually easier said than done! The problem when you get a runaway side. Let's say that the first person you sign up on Side A is an absolute superstar. Let's say his or her group builds to the point of selling $3,000/month.
Now if your Side B hasn't had the same success (let's say you are only selling $500/month on that side), then you will only get paid on the $500/month. So you just lost all the commissions for all the sales above $500!! That's are issue with Binary Plans.
Retailing Product
Although retailing (as in buying wholesale from your company and then retailing it to your customers)used to be the only way to make money through customers it has recently lost its luster. The most effective and efficient companies focus more on automating the sales, so you don't have to go back to every customer every month to take the order. PLUS, you don't have to stock the product and then deliver it to your customers.
Our
Top Rated Business Opportunity
for instance automates the entire customer acquisition and retention process. The company acquires the customer for you and does all the back-end marketing to keep your customers ordering. This is very impressive!
Click Here To Learn More.
Unfortunately, Usana does not offer the same kind of Customer Acquisition System, which makes it harder for new representatives to get started.
High Monthly Auto-Ship Requirement
From their webpage, they state that you need an autoship of 100 points to be fully qualified. This amounts to probably $125-150/month of product purchases. That is VERY high. For example, our Top-Rated Company only requires a purchase of 5 CV, which would be equivalent to 5 points in Usana.
Again, that makes it very expensive for new reps.
Overall Opinion
Usana Health Sciences can be a very rewarding business opportunity if you do not mind wholesaling and retailing product and you believe in your opportunity. We are not a big fan of this, but some reps have earned very high incomes from Usana. So bottom-line, it is a recommended opportunity due to the company stability. However, we feel that people new to business building will find that there are other opportunities that are
better than Usana.
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