Why Products Offered by Multi-Level Marketing Companies Are So Expensive

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usana-health-sciences-chinaMulti-level marketing companies (MLMs) are nothing but legalized scams. Make no mistake… they are pyramid schemes, but the government allows them to operate. Why are these obvious Ponzi schemes (which, by the way, the MLMs will swear up and down they are not… thou doth protest too much) allowed to operate? Who knows why the government will not crack down on this massive consumer fraud. The best thing we can do is educate consumers about the evils of multi-level marketing so they can avoid these companies… that means NOT becoming a distributor and NOT buying any of their products.

MLMs use products to make their companies look legitimate. They can’t be a scam if they are selling an actual product, right? WRONG. They absolutely can be a scam, because the product is simply a “front” for the scheme they are running. The product is meant to make the company look legitimate and hide the fraud.

The products from nearly every MLM are overpriced. That is, they cost more than comparable products available through legitimate channels (i.e. real retailers). The distributors will tell you it is because the products are very high quality!!! The magic juice has vitamins that are more bio-available! The make-up has better ingredients! The clothes are made better! The pills have super secret magical powers that cure all illnesses! These are all lies. The products are not better. Continue reading

Is Usana Running an Illegal Pyramid Scheme?

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usana-health-sciences-chinaAll good multi-level marketing companies have one thing in common: They fail to disclose enough information to allow consumers and regulators to determine if they are in the business of recruiting or selling products. They disclose just enough facts and figures to make it appear that they are being transparent. But they hide enough information that no one could ever determine definitively if they are running pyramid schemes.

MLMs cleverly avoid the pyramid scheme issue by making it impossible to determine the level of retail sales of products to consumers.  The companies effectively use the technique of plausible deniability: They purposely do not track retail sales, so when the business model is challenged with the assertion that few retail sales occur (and therefore they are recruiting schemes), executives can claim that they know no such thing!

Usana Watchdog has released a report on Usana Health Sciences, challenging the company’s failure to reveal meaningful facts and figures that would allow consumers and law enforcement to determine whether the company is running an illegal pyramid scheme. Continue reading

USANA Multi-Level Marketing Activity in China and Hong Kong

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usana-health-sciences-chinaGuest Post by USANA Watch Dog

USANA has found a way to possibly expand its multilevel marketing opportunity into every country in the world, including unauthorized regions such as mainland China.

An internal USANA document shows virtually no limit to the number of distributors who can sign up using the same home address as well as the same credit card:

  • With project upgrade complete IT has been able to help this situation with two new enhancements.
  • First, as of January 26th the online enrollment system will not accept any address as a home address if that address has already been used by more than 15 other active associates. Continue reading

Usana Health Sciences Misrepresenting Distributor Earnings

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written by: terminatedramp

USANA publishes a distributor average earnings chart to be used to recruit new distributors into their business opportunity. See the following USANA website that provides their earnings chart: http://www.usana.com/dotCom/opportunity/payplan/index.

Quoted from their website is the following: Continue reading

Selling Your Soul to Usana Health Sciences for $27,000 a Year

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If you were going to join a multi-level marketing company like Usana Health Sciences (NASDAQ:USNA), what would your goal be? Would you aspire to be one of their million dollar earners? That sounds awfully prestigious, doesn’t it?

Well check out this excerpt from a recent press release by the company, and then catch my comments at the end. Continue reading

Len Clements: Usana Distributor With “Seasoned” Associate Number

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Len Clements UsanaWell, well, well. Leonard Clements, defender of Usana to his death, former “executive” of multi-level marketing company Zenza, failed business owner… is now a Usana distributor.

But he’s not just any distributor. No, any distributor number would not do for Len Clements. He’s got the number 47278, which is an old, old number. (We’re talking 15 years old.) Why would someone want an old number? Because it comes with an established downline.

This distributor number formerly belonged to Christine Cunningham, who was a Silver Director.

How do you new distributors feel about the ability of Len Clements to get his hands on an established downline? Continue reading

Fifteen Frightening Facts About Usana Health Sciences

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These 15 interesting (and yes, frightening) facts about Usana Health Sciences (NASDAQ:USNA) were posted on Yahoo message board. I thought they nicely summed up this multi-level marketing company, and wanted to share them here. Of course, I’m providing links to evidence which corroborates these facts about Usana. Continue reading

The Dismissal of the Usana Health Sciences Case Against Fraud Discovery Institute

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This week, it was announced that Usana Health Sciences (NASDAQ:USNA) and Fraud Discovery Institute had reached a settlement in their legal battle. Usana basically had most of its case thrown out by a federal judge, but still could have pursued allegations of illegal manipulation of the stock.

The most interesting thing about the whole case against Barry Minkow and FDI is that Usana repeatedly called the report issued by Barry “false and misleading.” Yet the company never addressed any of the substantive allegations in the report or proved that they were incorrect. And no one held their feet to the fire and demanded that they prove that what he said was false. Continue reading

A Commentary on Usana Health Sciences

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This was written by TerminatedRamp, of Usana (NASDAQ:USNA) stock message board infamy:

Understanding USANA’s Pyramid Scheme is Key To Financial Freedom

If you want financial freedom, then understanding how USANA is a pyramid scheme can help you avoid losing thousands of dollars.

All MLM companies admit that in a pyramid scheme, distributors are paid commission for signing new distributors up. The commission would come from the $20-$40 fee that new distributor pays to become a distributor. USANA avoids this and claims they are a legitimate business opportunity and not a pyramid scheme. Ok, so that must mean USANA is not a pyramid, right? Wrong. Continue reading