Is USANA a Scam Pyramid Scheme? Exposed!

Are you looking for a USANA MLM review? Is USANA a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about USANA MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through USANA MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like USANA MLM.

To help you make a more informed decision, I have thoroughly researched the USANA MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with USANA MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to USANA MLM that has enabled me to make a full-time passive income online.

What is USANA MLM?

Usana Health Sciences was founded in 1992 by Immunologist and Microbiologist Myron W. Wentz. Usana is available in 24 countries, including New Zealand, Australia, Colombia, Mexico, China, Japan, and Canada.

They develop and manufacture high-quality dietary supplements, nutritious foods, and personal care products that they sell directly to Associates and Preferred Clients.

Approximately 67 percent of the products are manufactured in the United States. China accounts for the remaining 33%.

Usana has partnered with Dr. Oz, who frequently mentions Usana on his show, to raise brand awareness. Usana is also the sole supplier of supplements to over 1000 professional athletes worldwide.

They call themselves “Group Usana,” and they include Caroline Wozniacki and Austin Trout.

It’s a good thing that they’re well-known. However, because the company also provides opportunities to earn money through its MLM program, a common question is whether Usana is a pyramid scheme.

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What Products Does USANA Offer?

Among the Usana products are diet, personal care, and weight loss items. Usana differs from many other MLM companies in the health niche in that it sells nutritional supplements to children as young as two years old.

CellSentials and Celavive are the newest product lines. They are made with Usana’s InCelligence Modern technology, which she is attempting to patent.

The prices are comparable to those of other online marketing businesses that sell supplements, skin care products, and weight loss aids.

USANA currently sells 97 different items. USANA product prices range from $18.73 to $112.47, with an average of $43.9.

Here are a few of the most popular items:

  • Usana Essentials – 4-Week Supply of Total Body Health
  • USANA Hepasil DTX
  • USANA New Formula MagneCal D 112 Tablets
  • Usana Nutrimeal Shake Formulated Dutch Chocolate
  • USANA Healthpak: AM & PM Vitamin Packets
  • USANA CoQuinone 30

USANA Health Sciences manufactures the majority of USANA products. USANA receives a consistent supply of products from the manufacturer, and the two companies work well together.

USANA sells their products through their website. You can also purchase them from Amazon sellers. Because the store has a good reputation, you can buy with confidence.

Usana has been conducting research for over 25 years and has collaborated with well-known organizations such as The University of Utah, The College of Sydney, and Boston College.

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What is MLM?

Before we get into USANA MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like USANA MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

How Does USANA MLM Work?

Usana, like other multi-level marketing companies, has real products to sell and use. To make money, you can become a distributor and sell their products.

Still, the only way to make a lot of money with Usana MLM is to recruit new members.

People frequently refer to Usana as a pyramid scheme because it is structured as an MLM and because of what I just said.

To be honest, selling the concept of the Usana business opportunity is much easier than selling the products.

There will be more people interested in making money than in spending a lot of money on personal care items that can be purchased elsewhere.

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Is USANA A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is USANA, then, a pyramid scheme?

No. USANA does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

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What is the USANA MLM’s Compensation Plan?

Making money with Usana can be done in two main ways:

  1. Selling products
  2. Recruiting members

If you want to advance in your business and start earning money, you must first build your downline. You could also simply sell items. However, the second method is more effective.

The more people who join your company, the more money you will make. This is due to the fact that you will be compensated for what they sell.

To be successful in an MLM, you must recruit hundreds or even thousands of new members.

Usana’s products are distributed to customers through direct marketing. This is similar to the operation of multi-level marketing.

Usana members can now live stream their items on social media sites in order to sell them online. They no longer need to hold formal meetings as a result of this.

Because its members are in charge of spreading the word about themselves, Usana saves a lot of money on marketing and advertising.

Usana provides seven different ways to earn money:

  1. Retail Sales, the difference between preferred price and  retail price
  2. Weekly commissions on personal sales and team sales (up to 20%)
  3. Lifetime matching bonus
  4. Incentives like travels
  5. Elite bonus
  6. Leadership bonus
  7. Celavive product bonus

You will be paid 20% of retail sales and the amount of sales made by your team. 

Usana discusses organizational centers in its payment plan. A business center is mostly your team, with two people you hired directly on the left and right. Then, these two affiliates must find new affiliates and repeat the process.

You can open up to three business centers as a new partner. This means you can double your compensation payments right away.

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10 Reasons Why I Don’t Recommend USANA MLM

1. The Good Reviews are Written by USANA MLM’s Affiliates

You probably have found some other reviews of USANA MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join USANA MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of USANA MLM.

2. Very Few People Can Make Money With USANA

Success is difficult to achieve with an MLM company like USANA.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From USANA MLM Are Reframed As Investments

USANA MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. USANA MLM is a Cult

Why do people continue to work for USANA if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase USANA Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like USANA. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. USANA Products are Overpriced

As with other MLMs, USANA offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell USANA products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. USANA’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like USANA is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider USANA to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

USANA, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting USANA.

USANA’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to USANA’s payouts to distributors, over 99 percent of USANA distributors never make a profit.

9. USANA Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

USANA is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like USANA put a lot of effort into recruiting. Eight out of ten ways to earn money with USANA require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this USANA review.

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How Much Does It Cost To Join USANA MLM?

Joining the Usana MLM program costs only $29.95, which is a very low price.

The Starter Kit includes the following items:

  • a product guide
  • a workout and eating guide
  • a branded water bottle,
  • exercise band
  • pill box
  • business materials

Of course, you are encouraged to purchase the items so that you can see for yourself how well they work. This will cost you around $100 per month.

Costs of around $100 per month are significant, and you must make a large number of sales to cover the costs of the products.

USANA MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • Lots of Positive Product Reviews
  • Long-standing Company
  • Athletes have endorsed it.

Negative Feedbacks

  • Usana products are pricey.
  • There hasn’t been much success.
  • The Niche Market Is Filled

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Is USANA MLM a Scam?

I cannot say USANA MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling USANA products? We already know that a majority of USANA reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from USANA is by recruiting aggressively.

Also, USANA blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider USANA MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

Final Verdict: USANA MLM Review

Here comes the conclusion of my USANA MLM review. Overall, I don’t recommend joining USANA MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your USANA commission.

The worst part is that you practically have to ask your family and friends to join your USANA business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of USANA MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than USANA MLM.

My #1 recommended platform is called Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

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Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

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If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

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