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.
As a multi-level marketing company, the Usana Health Sciences products are sold exclusively through a network of Affiliates. The business model also provides for direct sales on the company website. Website buyers are referred to as preferred customers. Inherent within an MLM strategy is the development of a team of sales affiliates. The theory behind this concept supports the old adage that many hands make light work.
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 breakdown of the overall sales figures is understandable with an explanation of the distributor compensation plan. The plan has two parts based on a commission qualifying point system. Points are earned through sales volume and distributor recruitment. Payment is not made until a predetermined number of points are earned.
Beyond the ability to sell product and provide exceptional customer service in the process, is a proclivity for selling the opportunity in order to create an expansive Affiliate network. Success will be found in securing members of the network who also possess the competencies and skills required. It is akin to building an army, whereby the whole force is only as strong as the individuals within it.
The primary theory behind the Usana model is the creation of network of highly performing and skilled Affiliates. Those who excel are rewarded, those who fall behind are punished. Having to purchase product gives an Affiliate ownership of their own success. This is expected to be duplicated throughout the entire network.
Looking for more info on Usana Business models? Get the low down now in our guide to Usana MLM Business success .