A Few Interesting Theories On How To Succeed In The Usana Business Model
October 25, 2011 in USANA
A Few Interesting Theories On How To Succeed In The Usana Business Model
Article by David M. Wood
Usana Health Sciences, Inc. is an International manufacturer and purveyor of a wide range of nutritional and skin-care products. Sales are based on a multi-level marketing model or MLM. In an MLM structure, sales pertain to both products and distributorships. Compensation is paid on a commission basis for both sale types. One of the best tips on how to succeed in the Usana business model is to fully understand the construction of their compensation plan prior to signing on.
The Associates are responsible for purchasing and selling the product line, as well as enlisting other Associates to build their own sales network, this line enlists their own line and so on. As is common within a network marketing strategy, the network of associates is expanded to ensure the greatest amount of income opportunities.
The Usana model is not difficult in its concept, but may prove laborious for an Associate who does not have a burning desire to succeed. It is strongly suggested that this plan requires knowledge of how to both develop and run an at-home online business. This knowledge should be augmented by the acumen to work the model for the best possible financial advantage.
Usana reported net sales in the hundreds of millions in 2009. What is most important to consider however, is how the sales were distributed. Almost 90% of purchases were made by the Sales Associates, with the remaining percentage ascribed to preferred customers of the company. A free membership is available online in return for discounts on the product line. These members are called preferred customers.
The preponderance of sales to the Associates is attributable to the structure of the payment plan. The plan relies heavily on an accumulation of points in conjunction with meeting preset quotas. Actual payouts are not made until all qualifying factors are satisfied. It is extremely likely that a non-compliant Associate could work the model and not yield any commissions.
As another qualifying factor, the distributor must purchase a monthly quota of product to sell. If the quota is not met, points earned during that month can be lost. This is the primary reason why the preponderance of sales is made by the distributors.
The company states that only a little more than 2% of their Sales Associates earn the majority of their paid compensation. Knowing that success depends on being in the top 2% should frame the plan for success. Although the Usana business model is structured to support the sales of the company, it also provides the stimulus for being a top producer.
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Looking for more info on Usana Business models? Get the low down now in our guide to Usana MLM Business success .
