FDI Vs. Usana Health Sciences - The REAL problem!
August 8, 2007 – 3:11 pm | by Burke Jones - The Internet MLM Pro
I admit it I am somewhat of a MLM news junkie. If you read any of the forums you have may have heard about the uproar between Barry Minkow of Fraud Discovery Institute and Usana Health Sciences. I won’t get into all the legal filings, of which there are plenty, but I thought this was an interesting story to discuss for a bit.
You see, Barry likes to go after Network Marketing companies. This time he has chosen Usana Health Sciences as his target. Of course Usana has fired back, and the court battle is ensuing.
Barry has made at least 7 videos as of this time and posted them on Youtube. What he did was go out and find disgruntled Usana reps and interview them. They are real tear jerker’s - people have spent tons of money on their businesses, and not made a dime. Of course Usana can point to people that have done well.
However, the facts speak for themselves, over 95% who get started with a network marketing business fail - this includes Usana and all the other top rated companies out there. Barry would like you to believe that this problem is exclusive to Usana - it is NOT!
The real problem lies in how people in any Network Marketing business are trained to build their companies. You see most MLM companies use the same tired tactics - make a names list, go to hotel meetings, bug your friends, hack off your family, purchase leads, yadah, yadah, yadah!
It simply takes to long for most associates to build a team big enough to actually enjoy the residual income that network marketing can create. While they are waiting for this to happen, they are spending hundreds of dollars a month on products, training cd’s, etc. Most new distributors quickly run out of money and quit.
The solution to this problem is build a business around you. So your business is “You Inc.” and you just happen to be a distributor of XYZ company, but you also have many other profit streams that bring in the big cash while you are slowly building your MLM business.
This is the solution - listen closely - generate your own leads, build relationships with those leads over time, sponsor some of the leads into your primary business AND profit from all those leads that never join your primary opportunity.
If this sounds like a better way to build your business, pick up your copy if Internet MLM Pro Secrets today!
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6 Responses to “FDI Vs. Usana Health Sciences - The REAL problem!”
By anonymous on Aug 8, 2007 | Reply
1. Auditor, Grant Thornton resigned
2. FBI and SEC investigation
3. Numerous resume blunders by management and medical advisory board
Just to mention 3 issues out of several dozen. This is what can be expected from all network marketing companies? Barry Minkow is the messenger, not the problem here
By Burke Jones - The Internet MLM Pro on Aug 8, 2007 | Reply
Wow, someone must have some of these keywords being watched! About 3 minutes after I made this post I get the above comment posted to the blog. I always love it when people post anonymously, heck if you have something to say and believe in it, at least take credit for it!
Just to clarify, I never said that there might not be problems at Usana, I never said that Barry was a problem! I just was looking at the entire situation from a business point of view, and how the system I teach can help overcome many of the problems that struggling Usana associates will face.
Thanks for the comment!
By Rodger Brunk on Aug 8, 2007 | Reply
I think unfortunately many people who recruit people to join their team don’t clearly make the risks and high failure rates well known to their potential recruits and may wildly exaggerate the potential. For example a high level USANA dist. has a posting saying that a Mac Donalds franchise will cost you $2 million to open (just one store) and 3 Usana business centers less than $1 thousand. Then states “remember, not all McDonald’s restraunts are successful, and many USANA Associates earn as much, or more, as some of the most successful McDonalds store owners.” Wow lets hope that McDonalds doesn’t let that get out and come on now not even the average store owner, the most successful store owners. As for the rest the Forbes article - Swallow Hard covers the other issues pretty well.
By Burke Jones - The Internet MLM Pro on Aug 8, 2007 | Reply
Thanks for the well thought out response Rodger. I agree with what your saying. In any MLM business, people are making wild claims. I am sure there are some Usana associates making as much as the most successful McDonalds franchisees, but the number will be very few.
I will go check out the Forbes article, thanks for the info!
By Klaus on Sep 27, 2007 | Reply
I can see that Barry has hypnotized the press again! Just like he did with the press when he was a crook (see LA Times Archives on Barry Minkow ZZZZBest). He fooled the press many times & will manipulate again, to suit his ego and greed.
USANA is not perfect, but what company is? Overall I would have to say it’s a good company. They have a 250,000 square foot manufacturing facility that voluntarily manufactures its products to pharmaceutical standards. They do use a legitimate network marketing (NWM) go to market strategy of direct sales. NWM is an accepted trade practice in the US and 60 other countries around the world
If USANA Health Sciences just wanted to build a fake/farce product pyramid scheme, why spend so many resources on land, manufacturing equipment, labs, warehousing, IT systems, employees (1000 people work for USANA) and the list goes on.
If you look at past companies brought down that “posed as legitimate NWM businesses”, you’ll see that most of their so-called products were manufactured by a third party, services were contracted out and the product was inferior. No high-end third party endorsement would be there even if you paid them.
I see external stock manipulation here. Barry and his “unknown” paying client knew that USANA was a strong company with a 15-year track record. Give the press the perception of fraud and rake in the windfall! Lets get real here! It is flagrant external stock manipulation. Mr. Minkow twists the truth about the company and people of USANA, scares the investors and stakeholders and voila! The big stock tumble! Make money on put options and the big stock rebound. USNA was at a low of $28 not too long ago, and its now around $43.
How about what Minkow did with the people associated with USANA:
Dennis Waitley is a best selling author, mentor and trainer for Olympic athletes, astronauts fortune 500 companies. His work and record speaks for itself. Regardless of weather he has a nice piece of paper with a frame. Minkow prefers to look at the credentials not the performance of Waitley. You see it’s the perception thing.
Dr. Ladd MacNamara did receive his medical degree and was a practicing doctor. He gave up his license to pursue other ways of improving both his own and others lives through USANA. If he wanted to, He could get his license to practice medicine again in Georgia, if he re-applied (see his blog). Bottom line is MacNamara has vast knowledge about healthcare and you can’t erase that from his brain. Just to make Minkow happy and other authorities, he has removed MD from his name. But he still has his nice paper and frame from his University!
Dr. Tim Wood has done a great job of running the R&D and product development for USANA. He is a PhD and his team of scientists respects him. Respect and honor is earned by hard work, not by a piece of paper and a frame. He has focused on biology and earned his distinction from his work and management skills.
How about Mr. Gill Fuller. So what! He hasn’t paid his dues to his association so he can put CPA after his name. He probably knows more, due to his experience, compared to the home based CPA that does your taxes. He’s a CFO for a company that will have almost a half billion dollars in sales. He’s worked for other large companies as well. It’s Minkow’s twisted truths that scare the novice investors away.
I’m a chef; I can put CCC (Certified Chef de Cuisine) after my name. Did you know there are many great chefs that did not attend a day of formal training in culinary arts at an educational institution? Chefs are judged by the last meal we created, not by our pretty little papers and frames on the wall. As Trump would say “What have you done for me lately?” or “Your Fired!”
You see, USANA does have real products that are best in class. They manufacture and distribute from their 250K sq. ft. facility in Salt Lake City. They have a loyal consumer base of 80 thousand preferred customers, 160 thousand associates and it’s growing! They have endorsements from Dr. Christine Northrup MD, US and CDN Olympic Speedskating Teams, Women’s Professional Tennis Circuit and the list goes on and on. It’s a real company with real products and real consumers.
Thanks for the dialogue and debate.
Klaus
By Vivek on Mar 6, 2008 | Reply
Klaus has made a strong case about his NWM business. But as in all MLM business the last layer of network associates are the real loosers. They are sold a dream to make money like someone who started earlier. But I agree a business built on a foundation of physical assets and a large team of employee should be given its due.