Salt Lake City Population

Usana is a huge company with its headquarters in Salt Lake City, UT. They specialize in hair care, health and fitness, personal hygiene and weight management. They are doing so well that they have made a huge amphitheater in Salt Lake City that host numerous concerts with well-known bands and artists. They have contributed much to the city with jobs and donations they make to many charities. They have been heralded in the community for their positive influence.

There is nothing to complain about their products other than their price. The products are great quality and have a wide variety of choices. The problem I see with Usana is their network-marketing plan.

Usana, while being a great company, places an extremely high priority on recruitment of distributors. The products are important, but the money is made in the recruitment. Usana represents itself as a great “income opportunity” with huge incomes for all that are in it. But what they don’t tell you is these types of MLM’s always lead to a certain loss for the new recruit. Those at the top are benefited while those at the bottom struggle a bit more.

Product based businesses like Usana, present themselves as a business where you can make a lot of money, even quit your job. They lean on the concept that you can set your own standard of earnings! That this is fair, the American way. MLM’s seem to cater to those that got in first and got to the top, the rest have to work a little harder.

They hold up their top earners as representation of what everyone can do. This can be a little deceiving and a bit unfair. Usana is based on a system called the “binary compensation plan”. This is not a bad plan, but what is difficult about this type of plan is it requires the distributor to always maintain two legs in its downline in order to earn any commissions.

If you, the distributor has sponsored one person and they have sponsored others, that is called a leg. That leg could be producing thousands in volume but you would not receive any commissions because you don’t have another leg producing volume. If you have a second leg that is producing a small volume, lets say a 1000, but your other leg is producing 30,000, your commission will be based on the smaller leg of 1000.

The difficult part is you are trying to keep your healthy leg going, but the other leg dissolves a bit. You have to work very hard to keep them both maintained and pretty even in its volume. But the company is making a lot of money off that 30,000 leg. So the company keeps the commission, the distributor works harder to get that smaller leg to match the other one, in the mean time, who loses and who wins?

So, do you want to work hard, have a few hundred people in your downline, spend a lot of money on product and sales materials and after all that to earn a $1000 a month in commission with Usana, or would you like to earn a great residual income that will continue to grow?