USANA Health Sciences, Inc. (NYSE:USNA)

CAPS Rating: 1 out of 5

The Company develops and manufactures high-quality, science-based nutritional and personal care products, with a commitment to continuous product innovation and sound scientific research.


Player Avatar imadethis (24.08) Submitted: 4/20/2008 12:16:58 AM : Underperform Start Price: $19.96 USNA Score: -357.67

The company uses what's called MLM techniques to sell its products which will eventually end up being the downfall of their company. Multi Level Marketing is a pyramid scheme. Simple as that. Remember Amway, Quixtar?

I've had friends get sucked into this company by pledging 700-1000 dollars to join in to "invest in their futures by having the opportunity to own a business" by selling Usana products, but in reality, the only money to be made is from getting others to pledge the $700-1000 dollar fee. Just like other MLM schemes, the only people who make money are those at the top and the bottom feeders never rise up in the pyramid to make money. Therefore, more focus is on getting other associates to join instead of selling the product.

Company weaknesses:
#1. Their products are priced 5-6 times as high as comparative products.
#2. The marketing plan is a pyramid scheme.
#3. Investors who own shares in the stock are part of the MLM scheme and will swear by anything to keep the company in a positive light

Report this Post 3 Replies
Member Avatar seahome (< 20) Submitted: 5/16/2008 1:48:32 PM
Recs: 1

The opinion is absolutely wrong. As a network marketer in real operation for a couple of years, you can make it big in the so-called MLM business when you learn how to operate hard and smart at the same time. Not just the people in the op make money. Just imagine how those successful people have reached the top level? From the bottom!!!Nobody can make money right in the beginning in most business, so does MLM. When you do MLM, you have to work on it like a real business in a serious manner, not the 9-5 mindset designed for working somebody else. One of the main reasons why most people have to trade their time for dollars all the time in life is they always look at MLM from the pointview of an employee, not an employer. My experience is a tell-tale. The negative people on MLM had better choose a good business like USANA to immerse youself into regular practice for a couple of years, see what will happen?

Member Avatar withoutlimits (83.14) Submitted: 7/14/2008 1:52:06 AM
Recs: 0

MLM is NOT the same as a 'pyramid scheme. The big differance being their is no product in a pyramid scheme, USANA has fine products and when people honestly build their business and sell the products they can do well. Question: What product(s) are priced 5-6 times as high as comparative products?

Member Avatar calripken (< 20) Submitted: 8/3/2008 6:52:51 PM
Recs: 0

Maybe you should research this company more in depth instead of listening to your friends who were disappointed because they didn't get rich over night like they thought they would. When to venture into something new where you are not an employee, it typically takes at least a few years to just develop the right mindset to become successful. By the way, income is mainly earned from product movement, not just from signing people up.You think $1000 is a rip off to start a business?? Maybe some people would operate a network marketing business more seriously if the investment was much higher like a traditional business. Many actually think the investment is too small, which is why many don't take the business seriously and end up just living paycheck to paycheck again.

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