Is it possible to buy your way to the top of the pyramid at Usana (NASDAQ:USNA)? Who would even want to? Well the answer is simple… those who are at the top of the pyramid have a much easier time recruiting new marks into the scheme. So buy your way to the top, and you’ll likely get more publicity and more opportunities to recruit new victims. More victims equals more commissions.
Here’s how it would work, and this is compliments of an anonymous writer who wanted to share the methodology with my readers:
USANA Distributors may try to do whatever it takes to rise in leadership ranks
I believe there may be several USANA distributors (if not many) who will do whatever it takes to rise in the leadership ranks. The purpose of this is that the higher your rank, the more likely a prospecting recruit will join your downline. Leadership rank is what it is all about. If you are only a “Sharer” (or not even) and you try to recruit someone into the pyramid, the odds that prospect joins your downline are slim to none. But if you are a Silver Director or higher, that prospect will believe you are making a lot of money and would more likely join your downline.
So how does a distributor manipulate the system in order to rise in ranks? They simply invest $10,000. It sounds like a lot, but it’s probably worth it.
I join USANA and buy a 3-business center deal. $20 for the E-BDS kit, and 5 Health Paks for $500 (“Convenience” Enrollment Package worth 500 sales points). Then each day, I create two or three fictitious recruits and put them in my downline while being sure to always keep everything perfectly balanced.
Each fictitious account I create will purchase the starter kit for $20, have “3-business centers,” and the “Convenience” enrollment package for $500. I do this until I make a total of 10,000 sales points for that given week. This would cost $10,400 for the first week: $10,000 in convenience packs and $400 in Starter Kits. Don’t forget, I also have 100 boxes of Health Paks as well.
Now how much money will I make back in commission for that first week? $3,800 in total commission.
So I’m actually in the hole only $6,600 at the end of the first week instead of the $10,400. But I can reduce this even further! Create an eBay account and sell your 100 Health Paks for $60 each (40% cheaper than what you paid for it) and do this within the first few weeks! You just sold 100 Health Paks for $6,000!!!
Now you are only in the hole $600!!!!
Ta-da! In one week, you made yourself a Silver Director, and by the end of the first few weeks you made back $9,800 of your initial investment of $10,400! I believe this tactic has been used and it certainly does explain how over $10,000 worth of USANA products can be sold on eBay by a single eBay seller.
What else happens here? You get a fictitious number of USANA distributors being counted as “Active Distributors” in the SEC Financial Statements. This creates an erroneous figure in the filings and most certainly cannot be trusted.
Whether it is happening is questionable, but it most certainly wouldn’t be hard to do. Especially since tens of thousands of Chinese Nationals were able to create fictitious addresses outside mainland China and become a USANA distributor while setting up accounts at the Merchant Bank of China.
Interesting theory. And very workable. It has been suggested that Rita Hui may have done this. She moved up extremely quickly in Usana, yet her commissions are low compared to other Diamond Directors. What would explain someone with lower commission at the same level? Fake distributors who aren’t purchasing regularly.