USANA Health Sciences Business Review
Usana Health Sciences, Inc. (“Usana“) is a multi-level marketing company based out of Utah. The company produces various products in the nutritional, supplements, skincare and vitamins business industries, some of which have been provided to several athletic organizations that the company sponsors. Most of the company’s products are manufactured at their facility in West Valley City, Utah and are sold in markets around the world through their network of independent distributors that the company calls their “associates.” The company, which was founded by immunologist and microbiologist Myron Wentz, is the 24th largest direct-sale company on the planet.
The company distributes and sells its products in much the same way as other multi-level marketing companies. Distributors recruit and profit from other distributors’ sales. The products are only available through the direct-sale channel and are not available in a retail environment. The company has approximately 222,000 associates in its global network, which includes countries such as the United States, Canada, New Zealand, Australia, The Netherlands, United Kingdom, Hong Kong, Japan, South Korea, Taiwan, Mexico, The Philippines, Mainland China and Singapore. The company earned a place on Forbes’ “200 Best Small Companies” list from 2004 to 2006.
The line of Usana products is comprised of three product categories: Usana Nutritionals (including products like Essentials, Optimizers, and various nutritional supplements), Usana Diet & Energy (including protein bars, RESET meal replacement shakes and Rev3 energy drinks) and Sense personal care (skin care products, hair and body care products and skin treatment products) which contain a combination of botanicals, antioxidants and other ingredients. The company does not use parabens in its products.
Several of Usana’s products have been certified by NSF International in the Dietary Supplements category. This designation means that the products have the identity and quantity of their dietary ingredients depicted accurately on the label and that the products do not contain any ingredients that are not identified on the label. In addition, several Usana products are also certified under NSF’s “Certified for Sport” certification program, meaning that they contain no prohibited substances.
Usana’s Business model
USANA is a multilevel marketing company. That means it sells its products via sales associates and over the Internet. It is important to note that in this business model, the associates are not employees of the company; they are independent distributors. These associates receive commission based on the products they directly sell as well as earning commission on the products sold by the distributors they recruit, known as their “downlines”.
Usana uses what is known as a binary infinite compensation plan. Under this type of plan, sales associates are awarded points for each sale they make. Associates are required to reach a certain level of points before they will start to earn income. USANA requires each associate to purchase a minimum of 100 volume of products (equal to about $120) every four weeks in order to stay eligible to receive compensation. Failure to maintain this level of product will cause the distributor to lose any points he had accumulated that had not yet been paid on.
USANA’s sales associates are bound by distributor agreements. These agreements preclude distributors from making any misleading income claims to potential associates and from making health claims for their products.
USANA Company Claims
These are the claims that have earned USANA the honor of being voted Distributor Choice’s “Best Company” in Network Marketing Today and in The MLM Insider Magazine for a whopping 10 years!
Low Start Up
The Company claims to have low start-up costs. Associates are only required to purchase USANA’s Business Development System, which can be purchased for as little as $30 US.
Simple Compensation Structure
No previous sales experience is required to join the USANA team. The only requirements are a willingness to learn and a desire to help others improve their lives. The company recommends that each associate has two downline associates to start building their profitable business.
The Company focuses on the earning potential of its associates, comparing the earning potential of their MLM business model to the earning potential of a traditional salaried-plus-commission job. The company prides itself on its award-winning compensation plan, which offers associates six different ways to earn income. Under the USANA structure, unpaid volume carries over week to week and there are no sales quotas. The company views these as a way to make it possible for their associates to succeed.
Potential for schedule flexibility
Under the USANA business model, each associate is essentially the master of his own business. Associates set their own hours, can work from everywhere, and can set their own pace. In this model, the most motivated workers will earn the most income, but with the flexibility the model allows, the company’s hope is that all of the associates will be able to work the model to set themselves up for maximum success. People who can work independently with no supervision and no set schedule can flourish in this system.
Independence, not isolation
USANA wants its associates to know that they are in business for themselves, but not by themselves. To help associates achieve, the company provides its associates with thorough training and offers them access to a wide variety of helpful tools designed to promote success. Those tools include such things as a fully integrated Associate-only website, a website on which associates can stay up to date with the latest company news, receiving additional training, download free tools and take advantage of business management services offered by the company. Other tools offered to USANA associates are frequent web conferences, company events, sales aids, helpful publications and professional multimedia productions and many other things. The company also offers a helpful and experienced customer service team. That team can offer support to the company’s associate network in six languages.
The company’s Autoship program means that the associate will never have to actual handle (or store) inventory. Inventory will be shipped directly to the associate or the customer on a schedule determined by the associate in conjunction with his customer.
Part of a growing industry
Companies involved in manufacturing and promoting wellness products are part of one of the fastest-growing segments of the market. When it comes to direct selling, wellness-related products enjoy an even bigger piece of the pie. According to well-known economist Paul Zane Pilzer, wellness products and services are predicted to be the next trillion-dollar industry in the American economy. The global population is aging, and they are increasingly looking for products that will help them to look and feel their best. In addition, younger generations are seeking products that will help them to stay looking and feeling youthful as long as possible. Our lives are busier than ever, and more and more people are seeking products to help keep them in optimal health so that they can keep pace with the speed of modern life.
Finally, USANA hangs its hat on the worldwide reputation it has earned. The company is a member of the Direct Selling Association and is a solid, publicly traded company whose products appeal to a wide segment of the population. USANA customers are from a variety of age ranges, both genders and from all education levels. They reside around the world and include world-class athletes, best-selling authors, top-tier scientific institutions, leaders in the health and wellness industries and well-respected members of the business community.
USANA offers its associates the opportunity to take their financial futures into their own hands. They offer a thorough support network, flexibility in terms of schedule and earning potential and a lineup of products they truly believe in, products designed to meet the needs of a large segment of the global population. USANA has received, and continues to receive, many accolades from the business community for its business model, its products and for its widespread success.
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