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The USANA Business Model: Direct Selling Provides Opportunity for More Freedom Through Entrepreneurship

It should be safe to say that this year has not gone the way most of us expected it to go. With the novel coronavirus pandemic, subsequent lockdown, and present social distancing measures, we have been left anxious about the future of our families, our careers, and the world. The year 2020 has become an exercise in adaptability, and along with the uncertain times that we now face, many people are also feeling the winds of change driving them to re-evaluate how they are spending their time and energy. Maybe after a shaky adjustment period of working from the kitchen table, they have actually found that their productivity has increased considerably working from home. Maybe they have come to realize that they want a better work-life balance so they are able to spend time where they believe it matters most. Or maybe they have even found themselves a casualty of coronavirus layoffs, and are searching for what to pursue next.

In all of these scenarios, entrepreneurship can provide what each person desires. By working for yourself, you are able to decide where you work, what your working hours are and how many you are committing to in a week. However, starting a business on your own is not only terrifying, it can also be quite risky and require a huge commitment of not only money, but significant amounts of time and energy. For that reason, USANA Health Sciences made the decision to buck the traditional retail model of selling their nutritional supplements, healthy foods, and personal care products at grocery stores and pharmacies. Instead, they use a direct selling business model in which they sell their products directly to their independent distributors (known as Associates) and Preferred Customers. Through their Binary Compensation Plan that encourages symmetry and teamwork, USANA’s aim is to provide people who already love and believe in their products with another option for earning a little additional cash, along with the benefits of choosing where they want to work, setting their own hours, and maintaining a healthy work-life balance. *

The history of USANA

Dr. Myron Wentz -- the founder of USANA -- is an internationally recognized immunologist, microbiologist, and pioneer in the development of human cell culture technology and infectious disease diagnoses who has dedicated his life to improving the health and well-being of people all over the world. Born and raised in North Dakota, from an early age he was passionate about science and music and spent his time pursuing both equally. He was an accomplished trumpet player and even for a time considered pursuing music professionally. However, throughout his life he also witnessed many of his family members suffer from degenerative diseases, and the straw that broke the camel’s back was when at 17 he lost his father to heart disease. In combination with his passion for the life sciences, these traumatic events shaped his purpose in life and pushed him towards science. He went on to earn his bachelor’s degree in biology from North Central College in Naperville, Illinois, his master’s degree in microbiology from the University of North Dakota, and his doctoral degree in both microbiology and immunology from the University of Utah.

In 1974, Dr. Wentz founded Gull Laboratories, where he spent twenty years developing medical diagnostic test kits designed to detect infections and certain autoimmune disorders, with many of the laboratory arrays he developed for viral diseases being some of the first of their kind to be approved by the FDA. Over the course of those two decades, he grew to have a deep understanding of the importance of optimal nutrition in maintaining the health of human cells, and also realized that there was a huge lack of advanced nutritional support on the market at the time. As a result, in 1992 he made the decision to sell Gull Laboratories and found USANA Health Sciences in order to bring such products to life.

Dr. Wentz had the highest standards for the quality of the products he wished to create, and for that reason decided the best choice for manufacturing was to have the company do so in-house. Therefore, in 1996 USANA’s corporate facilities and headquarters were built, nestled just west of the Oquirrh Mountains in West Valley City, Utah. The facility boasts 80,000-square feet and employs over 800 individuals today. Also in 1996, USANA made the decision to become a publicly traded company, listing on the NASDAQ to instill confidence and establish transparency with all constituents. The company has experienced exponential growth, reaching $100 million in sales in just six short years and in 2002 was the third best performing stock on Marketwatch.com. For three straight years from 2004 to 2006, USANA was in the top 20 companies on Forbes “200 Best Small Companies” list, and by 2015 had been voted one of OUTSIDE Magazine’s “50 Best Places to Work” for seven years in a row. In 2017, USANA surpassed $1 billion in sales, and as of 2014 had paid out $2.5 billion in commissions to its Associates and Preferred Customers. It sells to over twenty countries worldwide, and has won more than 750 local, national, and international awards.

What is USANA’s business model?

In the simplest of terms, when a person successfully shares USANA’s products with others, they get paid for their efforts. Avoiding many of the pitfalls that plague traditional direct-selling plans, USANA provides six ways to earn income: retail sales, weekly commissions, lifetime matching bonuses, incentives, leadership bonuses, and elite bonuses.

When someone becomes an Associate for USANA, they are able to purchase their products at a discounted rate, known as a “Preferred Price.” Only Associates and Preferred Customers are able to purchase USANA products at this price, and when they sell the products to their customers at full retail price, they are able to earn a profit in the price difference. This is the easiest way to earn an immediate income through USANA, while also building a long-term customer base and flexing their selling muscles. This can be a great entry point for those who are interested in the health and wellness industry but have no previous sales or direct-to-consumer experience. Instead of a bulky résumé, all that is needed are people skills and a willingness to learn in order to start.

A new Associate’s first job is to develop a customer base of product users. From this base of loyal customers an Associate may enroll new Associates who are committed to the products and would also like to earn commissions based on their sales. Each USANA product has been assigned a point value, and a weekly commission is based on the number of points that have been accumulated. The saying “there’s strength in numbers” rings true for the USANA business model, as an Associate earns the weekly commissions based not only on their own sales, but also those of the teams they have created below them, known as the Group Sales Volume. They further encourage teamwork through their Binary Compensation Plan: the structure of the team an Associate creates that involves having a “left” and “right” side of their business. An Associate is incentivized to make sure that everybody on both sides of their business are working their hardest, as the Group Sales Volume and subsequent weekly commissions factor in the balance of volume for each side.

In addition to the retail sales income and weekly commissions, Associates have the ability to earn additional income through bonuses. Whether it be the Matching Bonus, Leadership Bonus, or Elite Bonus, each is based on the volume of sales an Associate’s business is able to generate over a specific period of time, so prioritizing selling is a surefire way to up chances for a bonus. USANA also has an incentives program that distributes luxury travel, prizes, and monetary prizes to any and all Associates. **

During these unprecedented times, we’re all looking for a way to have a little more control over our life. The USANA business model of direct selling provides the opportunity to work from home and set your own pace while still having the security of a structured business opportunity and a company with over 30 years history and countless awards and recognition.

*Income Disclaimer:

The earnings/lifestyle portrayed are not typical. Earnings are calculated on sales to consumers; no sales or commissions are guaranteed. Success results only from your diligent efforts. For typical earnings, see the Average Annual Earnings Chart: www.usanaincome.com

**Incentive Trip Disclaimer:

Of the 39,500+ active Associates in the United States, less than 1% earned an incentive trip in 2019.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes

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