Since its foundation in 1992, USANA became a popular company that is facing issues for being a multi-level marketing company (MLM) pyramiding scheme. USANA is a company selling health supplement products that gives an opportunity for others to become its affiliate to earn an extra income. They do operate a decent business opportunity in the guise of selling legitimate health products, but I can’t help but take notice of many asking is Usana a scam? In order to get answer to many bewildered persons who want to try out becoming a USANA affiliate, here are some of the information I gathered to shed some light into the matter.
Is USANA a scam – A company overview
USANA is a legitimate company with the aim of providing people health supplement products to live life better. They offer their nutritional and health products to their customers through direct selling. Their site claims that they understand direct selling as much as it understands nutritionals. Hence, they are also offering business opportunity to those who want to become its affiliate. One is required to enroll to USANA’s affiliate program and then you start selling the products and recruit people in order to get a percentage of their earnings. This sounds as a legitimate business opportunity but beyond this enticing proposition for affiliates there seems to be some bothersome issues that can certainly make one think USANA is probably a scam.
How does USANA works
One can become a USANA affiliate by paying a startup fee of $29.95. Affiliates will then have to pay a yearly $20 renewal fee. As a non-distributing associate you will not be allowed to retail the products but must pay the taxes for the wholesale price of the product. You also need to sponsor 5 customers who must purchase any of USANA’s products within a 4-week period to become eligible for receiving a commission. If you are a distributing associate, you can retail the products while paying the tax for the retail price. One still needs to meet the 5 customer rule in order to be eligible earning a commission. USANA also offers starter packs for affiliates who want to open their business center priced at $305, $624.95 and $1,250 for the basic, entrepreneur and professional packages respectively.
Why USANA might be an MLM scam
There seems to be many good reviews about the products of USANA, no doubt about that. They do operate a legit business. What probably people take notice about USANA scam is how its affiliate program works. At the onset, affiliates will be required to pay a startup fee and a yearly renewal fee. Once you become an associate you will not earn a commission until you meet the 5 customer rule (meaning you need to recruit 5 more people to sign up for USANA). Becoming a business center also requires you to pay more to open your own store, but in my point of view you need to shell out more money just to get a spot to the pyramid and allow money to flow to your account from the people below you and not simply opening a store.
The more you need to spend in order to maintain your business center because you will be required to keep purchasing USANA’s products that are worth at least 100 points every 4 weeks. Take note that 1 USANA point is equivalent to $1.20 so you need basically $120 every 4 weeks in order to maintain a good standing to become eligible of earning a commission. For those who did not buy its product pack, there is a requirement to purchase 200 points of USANA products to start a business center (roughly $240). Overall, you need to pay $240 initially and maintain paying $120 every 4 weeks for USANA’s products.
There is no doubt that USANA operates a legitimate business. There are good reviews about their nutritional and health products as effective. Some consider the product price as unreasonably very high, however. But what is more interesting about USANA is how its affiliate program works. Their affiliates are required to shell out more money to become its affiliate who will be entitled to earning a commission. But prior to be entitled to the commission one has to go through the painstaking process of complying with the 5 customer rule and maintaining certain points to maintain good standing as an affiliate. Otherwise, one will no longer be eligible to earn commissions. Now, to answer your question is Usana a scam? I can say it probably is because it seems it makes it difficult for their affiliates to earn a commission who are required to spend more and recruit more to maintain a good standing. My verdict is USANA can be a good source of income for someone who is willing to spend more time and willing to work harder to meet the requirements imposed by its pyramid system. If you are not willing to give time, diligence and hard work as an affiliate you are likely to lose money from your investment but USANA gets a guaranteed income from its affiliate.