USANA and its Grand Pyramid Scheme - The Untold Truth
USANA's Income Disclaimer and The Truth Behind The Numbers

USANA makes the following income disclaimer on almost all their promotional advertisements:

$91,800 is the average yearly income for an established, full-time USANA Associate (Gold Director and above). $23,225 is the annual average of those who earned as little as one commission check each month. Surveys show that 83% of all Associates self-report they joined USANA to "improve their health." Of those remaining, 21% earned a check at least once a month even though 56% reported they were not joining to "replace their full-time income." Of those that were, 41% have been Associates for at least one year and 56% are considered full time with the title of Gold Director or above. These figures shown should not be considered as guarantees or projections of your actual earnings or profits. Success with USANA results only from successful sales efforts, which require hard work, diligence, and leadership. If you include all 126,146 with the title of Associate, which includes, Associates not actively building a business (acting as wholesale buyers), Associates who just joined (as little as one day), and those who are just beginning to build their customer base, the average yearly income is still $734.27, with more than one in three earning a check.

There are several misleading statements in this disclaimer.

1) $91,800 is the average yearly income for an established, full-time USANA Associate (Gold Director and above). For the remaining 99.7% of USANA business associates, the yearly average gross income is $368. This was deduced from USANA's 2006 Distributor Earnings statement. Prospective individuals don't have access to the distributor earnings statements until they sign a contract and become an associate.

2) $23,225 is the annual average of those who earned as little as one commission check each month. But, 66% of USANA's business associates received no commission check and made $0.00 gross income for the year.

3) All of the percentages in USANA's disclosure are quite difficult to understand and are irrelevant. It is very interesting that USANA manages to make it appear as if a large percentage of business associates are Gold Directors and above by tagging on the 56% figure. However, it can be deduced from USANA's 2006 Distributor Earnings statement that only one third of one percent (0.3%) of USANA business associates are considered full-time (Gold Director and above).

4) The average yearly income for all USANA business associates is $734.27. What USANA doesn't disclose is that the yearly income figure is GROSS income. If you take into consideration the required purchases every four weeks for a year ($1300 per year), then the true average yearly NET income is below zero! This does not even take into consideration all the other expenses that incur as a business associate. 99% of USANA associates lose money, but this is never disclosed to the prospective associate.

BTW, USANA claims in their online presentation that "Average People Are Succeeding". Not according to these numbers; more than half of new associates drop out each year and 99% are losing money.

Contact Author: USANAWatchDog@gmail.com
Copyright 2011 - MLM Pyramid