Usana Review: What is Usana?
Type: Multi Level Marketing
Is Usana a scam or legit?
Usana is an MLM company that specializes in health products such as nutritionals and health care. The products seem legit enough and some of them look very good. My only problem with these type of companies is that most of them are MLM based.
I am not a big fan of multi level marketing because the business model itself is not very effective (There are better ways to build a passive income). At first it will look as if you can make a ton of money with it, but in reality, you won’t. With MLM you do not only make money from direct sales, but you also earn a commission from what your group is earning. So if your referrals are also selling products, then you get a small cut from what they make.
Some companies are on the borderline of being a scam because today it is very easy to quickly create a product to hide the pyramid scheme. So is Usana legit? I would say yes, but I would not recommend anything associated with MLM.
The compensation plan
The plan is actually very simple and not as complicated as most of the other MLM companies with all of their different levels and so forth. First of all you need to open your own business centre.
You can sell the products directly to customers if you wish which will earn you a commission rate of 10%. Some people only prefer this model which is fine, but most will go for the Binary leg plan.
With the binary legs you can only start by referring 2 associates to Usana. An associate can be a customer that also wants to make money by joining your team and open their own business centre. In simple terms you will have a left leg and a right leg which will result in 2 groups.
As these groups grow, you will earn more commission points and that is if your groups are making sales. The more expensive the product, the more points it will have. The points do not have an exact value because it represents all of the currencies in the world. The
For this to work, you need to work on both of your legs and keep in mind that you will always have a weaker leg which will be called your small side. Each week you will earn 10% of the matching volume of both sides. If your small side has earned 1100 points and your large side has earned 1500 points, you will earn 110 points on the small side and 110 points on the large side.
Remember that you will not lose the extra 400 points that your large side has generated, because it will be carried over in the next week. At the start of the next week you will have 0 points on the small side and 400 points on the large side. This will force you to continually improve your weaker side. It is also the same as earning 20% from your weaker side.
Once you have earned 5000 points on both your left and right leg, you will be eligible to open another store to increase your income.
In order to earn money from your store, you need to generate at least a personal sales volume of 100 points per month. This prerequisite is in place to force people to sell the products in order to keep the group alive.
Do I recommend Usana?
It is possible to make money with Usana, but most people will not make it. I was involved with mlm before and found that you need to constantly feed your team with a spoon in order for them to make money. Usana is one of the better mlm companies out there, because they have great products, but mlm in general does not have my interest.
If you are someone that already has experience in network marketing, then you might stand a chance. Usana does not actually teach you how to promote the products and only gives you the opportunity. What you do with it and also how you do it is up to you.
MLM vs Affiliate marketing
Affiliate marketing is where you direct sell the products from other companies such as Amazon or E-bay. You will earn a commission from each product you promote and there is no complicated compensation plan such as that of mlm.
With affiliate marketing you reap what you sow and only you will harvest the fruit of your own works. Most people go for mlm because they think that it is the only way to earn a passive income and boy are they wrong. Affiliate marketing also has the potential to earn you a passive income online and it does not even cost as much as mlm to start with.