Is USANA a Scam?
USANA is a company that is commonly considered an MLM, or multi-level marketing company, based out of Salt Lake City, Utah. Many people have posted complains about USANA, accusing the company of predatory activities, while others mistakenly believe that MLM companies in general are set up according to a pyramid scheme.
MLM Companies & Pyramid Schemes
In an MLM company, you recruit new sellers to work under you, and as a result you make a percentage of their sales as a commission. MLM companies offer affiliates the opportunity to work under the last person who joined, and pay their own start-up costs to sell products. In essence, these people work for themselves. For each person that joins under them, a percentage of sales are kept as commission that the company (USANA in this case) figures and distributes.
In pyramid schemes, you pay to get in under someone with the hopes of the company paying you back your money plus some, without any selling involved. These are sometimes called gifting schemes, where you gift money to someone under the premise that you will be gifted a larger amount later by those who join under you.
For example, if you pay $200 to get into a pyramid scheme and recruit eight people under you who pay you $200, you hope to turn in the $200 and keep a significant percentage of the $1,600 for yourself. This kind of pyramid scheme is considered a scam and is illegal in Canada.
USANA
USANA sells nutritional products, and it is a legitimate company registered with the Better Business Bureau in Utah, where they are headquartered. Although there is a heavy priority placed on recruiting other distributors, selling the product is a necessary component of the business.
There is a start up fee through USANA, and the company does not promise to make you rich. In Canada, the average pay ranges from $30,566 to $91,531 for full-time home business with USANA on the lowest product plan. This is based on an average of all associates in Canada making a total of $1,760 a week, but this will not apply to all full-time associates.
Some people sell more than others, and therefore the actual results of your income will vary. Part-time persons can expect to make, as a sharer, about $3,200 a year.
This job should be treated like any other job: You must put the time and effort into selling your product in order to make any money. The products are nutritional supplements, and the number sold will dictate your income. The more you sell, the more money you will make.
USANA is traded on the New York Stock Exchange, and can be viewed under the name USNA as common stock. More information can also be found on the stock from Dow Jones & Company.
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