Wondering if USANA is a good opportunity or a pyramid scheme scam? This USANA review gives you deep insight into the company.
An Overview of USANA
Let me start by saying that even though we mention a little bit about some of its products, this is an in-depth review of the opportunity USANA presents rather than a review of its individual products.
Here is a bullet form overview of some of the stuff you might want to know before we drill deep into USANA:
- Yes, it is possible to make money. However, it is not probable.
- USANA sells nutrition and personal care products
- You will first have to invest $29.95 on their Business Development System
- You do not have to buy the products in order to sell them
- It operates a Multi-Level Marketing (MLM) business model
- The business opportunity ticks all the boxes of a pyramid scheme
- Their compensation plan is somewhat complicated
- This is not a part-time or work from home opportunity.
- If you would love to make money from the comfort of your home, click on the link below.
What is USANA?
This is an MLM based company that offers nutrition, diet/energy, personal care and other health supplements as its products. The company was founded by Dr. Myron Wentz in 1992.
This is important because the difference between a completely legit MLM company and your typical scam opportunity is the strength of the products. Notice how I said “strength” and not “quality“? More on this to come later on in the review…
USANA produces over 50 products across various categories ranging from dietary and nutritional supplements to personal care products.
I have not tested any of their products personally but they appear to have mostly positive product reviews on Amazon.
If you are reading this because you want to use the products, this could pass as a strong indicator that the products are good quality. However, if you are reading this review because of the business opportunity, you might want to hold off that excitement a little longer (or forever).
There is nothing to show that USANA’s products are better than others. Even worse is that these products are way more expensive than similar products made by other more reputable brands that are composed of the same things and have the same function.
From the business side of things, this brings your potential market to almost zero. Why would someone buy this product from you when they can buy an equal or better product cheaper elsewhere? I saw a few of their products listed on eBay for less than their actual price. It’s fair to assume these are desperate USANA distributors who have been forced to settle for less.
The Business Opportunity (Juicy Part!)
I did not use the term “juicy” to get you excited about this opportunity. To be frank with you, there is hardly any reason to be excited about this opportunity. “Juicy” in this case means the part you have been waiting for: The Business Opportunity.
Like with most multi-level marketing companies, there are products the company offers. But if we want to cut the crap and be honest with ourselves, the only way to make any form of reasonable money from this is by recruiting people to join the company. In order to take part in this, you need to purchase their Business Development System for $29.95. This gives you the basic information needed to get your USANA business started.
To be honest, it is easier to sell the concept of the opportunity than to sell the products anyway. You will find more people more open to the idea of being able to make money than people who are willing to overspend on personal care products they could easily get elsewhere.
Remember our earlier talk about “strength” and “quality”? The products might be of decent quality, but are they strong enough to solely sustain USANA without recruitment? I doubt it.
Plus, I would rather purchase supplements from a trusted pharmacy or store than get it from a random person. Just me though 🙂
The Compensation Plan
I dread writing about the compensation plan for a lot of these MLM companies. It is very easy for most people to look at the compensation plan and see a huge earning potential without putting into perspective how difficult and unlikely it is to achieve it.
USANA’s compensation plan is even more complicated than most MLMs. The idea of the business is that you fill out your left arm and your right arm with people you recruit into the business. Afterward, your job is to make sure your downline keeps getting filled with new members.
You know what? Hear the compensation structure from the horse’s mouth…
Let’s move past the semantics in the video and look at some hard realities:
- To stand a chance of long-term success, you need at least two functioning people (one for each arm) who are successful in the business
- Being successful right now is not enough for long-term success. They need to forever continue to be successful
- You can see your own work ethic and commitment plays a very tiny part of your potential success
- There is a cap on the number of people that fill out your arms. Maximum of 2 for each arm
- I could not help but notice he started building out his arms with your co-worker and neighbour
- He goes on to say people in your downline will recruit friends from other countries
- It is evident that the recruiting system they suggest is for you to target your friends and family, then your friends will target their own friends and family and so on.
There is just so much wrong with this opportunity that I simply cannot begin to cover because my fingers won’t let me.
A Little Stats Talk
Maybe I wouldn’t be so hard on this business model if you had a high chance of actually making any money from this company. For most MLMs that require you to purchase the products first before you can sell, I have always thought (and still think) only 5% of members make any profits. The figure should be slightly higher with USANA, considering you do not have to purchase the products in order to promote the products.
Forget the compensation plan hype and let’s look at what USANA has given us about income expectations…
A few things to note are:
- Business builders are people that actively recruit other members
- To lessen the blow, the company regard everyone that purchased at least one of their products as an associate. This includes people that came in for the products, rather than the opportunity
- Remember these are average earnings. Most people in each tier will be earning less than the average annual income
- We can still see from this table that over 72% of business builders earn less than $1000 a year.
Is USANA a Pyramid Scheme?
Let me give you a short quiz: If USANA were to stop recruiting right now, do you think the company will be able to survive the next 2 years based on the sale of their products alone?
My answer is NO! If your answer is yes, then it’s fair for you to think USANA is not a pyramid scheme.
USANA does not operate a limited tier system where distributors can only earn commissions from a certain number of levels into their downline. The system used by this company is designed so that the owner and people near to the top of the pyramid still earn commissions from the work done by the distributors at the foot of the pyramid.
USANA ticks all the boxes of a pyramid scheme to me.
The system at USANA is built to help the owner and his friends at the top make more money, and not to help you as a distributor make any money at all. The worst part is your success is largely dependent on a lot of people, most of whom you will not know personally.
If you want to make money, why not do it in a system where your success depends entirely on you?
Build your own successful online business and promote absolutely anything you want. No recruitment necessary, no downlines, no pyramid schemes. None of that BS.
PRODUCT NAME: USANA
Price: $29.95 for their Business Development System
Overall Ranking: 30/100
Owners: Dr. Myron Wentz
I hope you enjoyed this USANA review.
If you have any questions, thoughts or experiences with USANA, please leave them in the comments section below. I will love to hear and discuss with you. Thanks for reading 🙂