Usana’s Binary Compensation Plan

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Great blog. I agree with the previous 100%. Online prospecting is a difficult task. I shall refere this blog to my forum. Keep up the good work.

http://www.usana-network.com

You Write “Another powerful advantage of USANA’s program is that there are no monthly group volume requirements.”

While there are no monthly GROUP volume requirements, there are monthly PERSONAL volume requirements. These can exceed over $100 to $200+ depending on if you get the 1-BC or 3-BC plan, and also if you want Autoship discounts.

Goodluck with the program. The Average person who signed up as an USANA Associate never sees a profit. 99% of them fail. But who knows, you might be lucky.

10% autoship discount requires 100 personal sales points every 4-week cycle. A weighted average of the cost of one sales point with the 10% discount is $1.21. There are thirteen 4 week cycles in a year, so 1300 sales points must be purchased each year for the discounted prices. That is $1573.00 every year that you must spend for your own personal use. These 1300 sales points do not count toward your own commissions. If you sign up with the 3-business center plan, you are required an additional 100 sales points every 4 weeks. However, Those additional sales points do count toward your own commission.

USANA claims you can retail the product for a profit margin, but this hardly ever actually happens because the associates purchase the USANA products at an already inflated cost. So most associates sell the product (if they sell it at all) at the same price they purchased it for. So they are forced to rely solely on collecting sales points to pay out commissions. So the whole business becomes nothing more than a recruiting pyramid scheme. The only possible way to make any money is to swindle others into the pyramid scheme underneath you so you can collect their sales points and get commissions. Remember, the company forces you to make those 4 week cycle purchases. Those are required if you want to be eligible to collect commissions. Only those at the top of the pyramids make any profit. The majority of USANA associates will never make a profit, simply because of the way the binary pyramid scheme is designed.

In all the USANA business material for their associates focuses on recruiting. They teach you how to recruit. They teach you that building an “organization” is the only way to succeed. While almost nobody sells the product for more than they purchase it themselves, a 0% profit margin is hardly a business plan that could be considered profitable. Again, recruiting suckers underneath you so you can collect their sales points is the only way to succeed. If you are a good liar and don’t have any ethics, you could succeed in USANA. No honest person could make a profit because that would require to recruit hundreds of people in their organization, knowing that most of them will never recovered their expenses. GOOD LUCK!

http://www.geocities.com/mlmpyramid is a website that explains the mathematics of a binary compensation plan.

Hey ‘mlm pyramid scheme exposer’, were you in Usana? Companies using the binary plan all have their own version of it. The overall concept, however, is the same. Left-side, right-side, balance, commision paid weekly. The website you have posted seems to show the payplan for Usana specifically. It’s true that to make it in network marketing, you must recruit. Although companies claim it’s about selling products, which in a way it is, they never emphasize the fact that most of their sales (70%-90%)come from purchases by their reps.

You had a good analysis of the compensation plan and an overall view of what can eventually happen (market saturation, moving from city to city, few profit, many lose). One thing I’d like to comment on is that it’s very likely to make more money than the distributor on top of you, if you can recruit more and place your entries correctly under the right people who can help recruit at least one side of that BC for you. Saying that the top people make all of the money is a bit incorrect. A more accurate statement would be, the people who have the most BC’s and recruits under them make most of the money. (Which of course is usually the person on top) But that comes with time and persistence in recruiting and motivating others to do the same. Of course, the earlier you joined, the more people you should have under you. You can never have more recruits than the people on top of you, but you can make more money.

Network Marketing is a business of using other’s people’s time, resources, and money to make money. Sounds harsh, but it’s no different than a regular company hiring you. They use your time and resources to make them many times the amount that they pay you. Of course, you at least are gauranteed to make some money, but chances are, you’ll never become rich with a job. In MLM, you have a chance to get rich… even though the chances of you making little or no money is about 1000 times higher than becoming rich.

If you choose to do MLM, don’t quit your daytime job too quickly despite your sponsor’s claim of riches and retirement. You might need it to keep food on the table, at least until you recruit a few hundred people in your downline. If you are already in one, use it to learn about sales and personal development skills like setting goals, having a vision, taking action, thinking positive. Not everything about MLM is bad. The shifts in mental attitudes and one’s self esteem can be amazing when they surround themselves with positive people.

Rampagesr - I agree and disagree with you. It’s true that you need to consume 100 points a month to stay ‘active’ in the business — this can rack up to quite a bit of money. The trick is, though, to find customers before you even sign up. That’s what I did, and it’s working wonders for me. Before I became an associate, I ensured that I had 5-6 people who wanted orders, and then started. Now, a couple months into it, I’m already recovering my costs for my autoship. Basically, I’m breaking even every month before I even start selling anything else. Anything I then order for contributes to my volume points.

So yeah, It’s going good; I know that I’m GUARANTEED to break even, and then anything that happens after that is basically income.

Also, what about where USANA has just opened? Like in MALAYSIA. There’s great opportunity there, with so many people and being labelled in the Top 15 DIRECT SELLING countries; not associate building, but direct selling.

My 2 cents

Written by SBK - http://jutawan.usana.com

I think that John has something there thank you John for helping me see the light.

Speaking of all of this, anyone want to sell Usana?

Holly

Reps just mean to have a chance to do the business.

What type of business can be a business just input less than $2000 per year? And then to claim the commission can not cover the expense.

The truth is in today’s world, there is no business can make any money with a little investmen. 99.999999999% of people in the world can not. Even give them $1 million dollar, and let them to make another $1 million dollar is a joke.

So why in USANA, people join in must win by every one. If 13% is unreasonable, so how about 20%, 25%,30%. Is it impossible up to 50%?
Could you tell me 50% of Coco cola’s customer will cover all of their spend on Coco cola’s drinks? They are all customers, 100%, no one get money back. But USANA, at least 12%.

Every one must understand is when you first in USANA, you are a customer rather a businessman. But someone with a strong ability, may be develop their network faster. But do not mean every one can do like that way.
And be a customer, you have right and chance to understand whether USANA is overprice or not. If yes, why not you return the unused products to get the 90% refund and try to stick into USANA business.

If you are not happy with USANA, why you try to recruit other people do the same thing. Of course, those people don’t trust what you say to them, and then you are fail. Then you claim USANA a scam.

How funny is this!

I am not try to sell USANA.

But just ask a serious question to you. Are you care about your health?

If you do, please find out a way to do something on it.

do you have information about mega holdings binary plan and how lucrative it is…www.megaholdings.org

MegaHoldings is a very powerful company.
This company provides Jewelries and Iranian Hand Woven Carpets.
All of these products are high quality and certificated with reasonable price.
MegaHoldings have a simple and powerful compensation plan with very high flush out (45,000$ per month !)
You can even buy a product from this company using prepaid mode for 200$ that called Fast Start Plan.

As a mentor to mlmers around the world there are some things about mlm that most people don’t think about.

The average Amercian CEO earns in an hour, what the average person earns in a year. Fair? Maybe not, and the people working for them can NEVER earn more than them. MLM offers hard-working people a hand up if they really want it.

MacDonalds advertises it’s burghers, not it’s franchises. MLMers should learn from that and do the same. Advertise your great product, not your opportunity. Fastest and greatest way to build your business.

If anyone would like coaching on how to be successful in Usana or any other MLM feel free to contact me…

how should i register USANA while am here now in the island of pacific, the philippine island, the land of many networking foriegn companies…please give an idea if how should i start it in here….