Tuesday, January 27, 2015

USANA Becomes Trusted Partner and Sponsor of the Dr. Oz Show - Gives Preferential Treatment To Gold Directors and Above

USANA's latest marketing campaign designed to get USANA products in the eyes of Dr. Mehmet Oz viewers may only benefit the top 1% of USANA associates Gold Directors and above as well as provide means to falsely satisfy associate's 5 customer rule and fool federal regulators.

According to USANA document Trusted Partner and Sponsor of The Dr. Oz Show - Partnership Guidelines

Allocation of Preferred Customers and Sales Volume
Preferred Customers, Sales Volume Points (SVP), and other leads that come in through www.USANAhealth.net - a shopping experience for viewers of The Dr. Oz Show - will be provided to recognition-eligible Gold Directors or above who reside in the United States and Canada.

We will allocate leads to each Associate meeting the above criteria, filtering first by pin level and then by application date. That means we will move down the tree of Associates residing in the United States or Canada, going from the longest tenured Star Diamonds to our new Golds. The process will restart each time every eligible Associate has been allocated a new lead.

This only applies for www.USANAhealth.net. We will follow existing protocol for anything that comes in through www.USANA.com.

So when someone watches the Dr. Oz show that features a USANA product and goes to USANAHealth.net to order the product or become a preferred customer, USANA gives the commission points and preferred customer to a preferential class of USANA distributors who are Gold Directors and above, which represents less than 1% of USANA associates!

This is a very clever trick by USANA that could be used to fool federal regulators such as the FTC by giving the top 1% of associates (who also happen to account for the majority of commissions paid out) customers as a way to automatically satisfy one of the Amway safeguards - USANA's Five Customer Rule, which was designed to protect associates from falling victim to a pyramid scheme. There are not enough preferred customers according to USANA's SEC filings to satisfy the 5 customer rule for most who received a commission check and I believe there are even fewer retail customers. I believe if the FTC were to investigate USANA, USANA would be unable to produce any proof that the majority of commissions paid out were legitimately paid to individuals satisfying the 5 customer rule.

It may also be against the law for USANA to assign customers generated from the Dr. Oz show exclusively to preferential group of distributors as well as paying them commissions for sales those distributors had nothing to do with.

After the 4th quarter earnings statement was released, president Kevin Guest made the following statement regarding the allocation of customers who purchase from the Dr. Oz show after asked about it from a stock analyst during a conference call:

So we’ve a referral system in place. usana.com has millions of people visit it on a yearly basis. So we do receive referrals that are unsolicited directly from someone. And so we’ve a referral system in place and it's basically the same system that they fall into from a referral system. And it’s computer functioning, it’s non-biased and we distribute those leads just as we would distribute anyone visiting usana.com- Kevin Guest - President
 Reference for this quote can be found on the Seeking Alpha transcript of the conference call.

That statement by the USANA president was very misleading when he claimed it was "non-biased". In fact, it couldn't be any more bias. Only Gold Directors and above will benefit, which accounts for less than 1% of USANA's associates.

Thursday, January 15, 2015

USANA Associate Trying To Sign You Up As A Distributor? Then You Need To Know What a Pyramid Scheme Is!

Anyone who has been approached by a USANA distributor trying to sign you up in a business opportunity needs to understand what they're about to get themselves into. The following video is probably the best video explaining what a pyramid scheme is. I believe USANA is a pyramid scheme where 99% of distributors lose money while funding the pyramid scheme that enriches less than 1% of distributors.

If you are a family member, friend, co-worker, or neighbor of someone you know who has been conned into one of these scams, I recommend sending them this video.