Monday, January 5, 2009

The USANA Cellular Compensation Plan

Here's an interesting article outlining some of the problems with USANA's comp plan.

The USANA Cellular Compensation Plan

To sum it up:

Distributors keep paying into the system in the hope that they'll eventually make enough money to cover their expenses, and those commission payments are always just around the corner. USANA uses the concept of deferred commissions as a carrot to keep their distributors involved.

...

There are several features of a network marketing company that should indicate that there are problems:


  • The company is more concerned with their structure than with the product they're selling.
  • The company's structure does not appear to provide any added value to the customer.
  • The company's structure has elaborate and complicated rules for no readily apparent purpose.
  • The company has numerous levels for supposedly independent distributors.
  • The company spends a lot of time insisting that it's not a pyramid scam.


USANA has all of these features, and then some. But the worst one is taking advantage of people's enthusiasm, hard work, and ambition, by promising a dream they have no intention of providing.