Buying Your Way to Director at Usana Health Sciences

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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.

9 thoughts on “Buying Your Way to Director at Usana Health Sciences

  1. Carlos De Albuquerque

    Well, on paper it seems fine. However, you will need about 10 fictious identities to make it work (names, DOB, SIN, Bank account / Credit cards details).

    I guess you can buy these (a serious felony in most jurisdictions) but I`d be surprised if your 10,000 budget will support it.

    As far as Ms Hui story, It’s qui possible to have Diamond directors with low commissions.

    If you do not explain your WHOLE downline that they must commit themselves to purchase regularly products, they will simply not do it.

    Regards

    Regards.

  2. Carlos,

    10 fictitious identities? Try more like 19 including yourself. That will equal 10,000 sales points like the author points out. Not only that, the author points out that it can very likely be done especially when underground Chinese Nationals were able to supposedly fool USANA by creating accounts at the Chinese Merchant Bank or whatever it was called. ALSO, This method of jumping in ranks is not just a break even deal. As the author points out, if the distributor sold all 100 healthpaks at a 40% discount under the autoship price, that distributor would break even. HOWEVER, if the distributor sold all the HealthPaks for 30% lower than autoship price ($70 each), they would have made a positive $400..

    If they undercut by 20%, the distributor would make $1400 profit. And if the distributor undercut by 10%, that person would make $2400…

    So while you try to poopoo this theory, it is actually profitable beyond what you try to portray. Not only that, it truly benefits the company more than what most people imagine. Rita Hui has been put on a pedestal for quite some time as USANA’s HIGHEST RANKING DISTRIBUTOR. She surpassed even Collete Larsen by several Star Rankings. However, Rita Hui is hardy paid as much as Collete Larsen gets each year.

    You reveal something sleazy however. Quote “If you do not explain your WHOLE downline that they must commit themselves to purchase regularly products, they will simply not do it.”

    What is this? Distributors “MUST COMMIT THEMSELVES TO PURCHASE REGULARLY”???? In otherwords, Purchase your token to participate in the pyramid scheme, and if everyone does this, The top 3% of current distributors will profit tremendously. But keep in mind, each distributor must bring in about 15 distributors into their downline who each purchase 100 sales points each month (like you say MUST BE DONE REGULARLY). This will allow that distributor to barely break even for their own purchases alone.

    They still aren’t profiting until they bring in about 20 distributors into their downline. Thus, it proves the point of the loss rate and the pyramid scheme. 95% are going to NEVER PROFIT right off the bat because the compensation plan FIXES THIS LOSS RATE…

    BTW, why should the distributor at the top “explain” to their downline that they must purchase the product regularly??? I thought that USANA’s products were so magically wonderful that the product spoke for itself. Since the drop out rate is so incredibly high, and so many preferred customers are dropping out as well, then the products really aren’t that great after all! If USANA was forced to reveal the rates at which distributors and preferred customers signed up and dropped out, then the company would go out of business because it proves nobody cares for the product, and it is all about purchasing tokens to participate in the pyramid scheme…..

  3. Tracy Coenen

    Actually, most (if not all) MLMs do not require a VALID social security number to sign up. You can use any old number, and so long as the fake person stays under the company’s reporting thresholds, no one will ever know it’s a fake. And MLMs don’t care whose credit card is used for the order… If the “recruiter” uses her own card with the explanation that the (fake) recruit doesn’t have one, THE COMPANY DOES NOT CARE as long as they get their money.

    Ask anyone in Mary Kay (long held up as one of the most ethical MLMs *gag*) – It is quite simple to make up recruits and it’s done each and every day and the company allows it because each fake recruit brings in anywhere from $300 to $700 for the company. Money talks!

  4. Tracy Coenen

    It is easy if someone makes up a social security number and the company doesn’t check it.

  5. Stanley

    TRACY COENEN

    Not ture. My company do check and new join MUST be present personally. And my company only accept cedit of the registered member to pay for it own. Can’t pay for other.

  6. Stanley

    TERMINATEDRAMP

    I’m not from usana so I can’t fully comments for them.

    But your point of the products are not so good as claims just because they are required to remind downline to purchase regularly is not correct as well.

    The main reason for company needs to remind regular repurchase is merely for “maintenance” requirements under their compensation plan structure. Not because of whether products are good or bad. Company with lousy products also do that. Company with excellence products also do that.

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