CASE STUDY .

USANA looks even worse now...

In this short interview Barry Minkow did with two USANA reps, the recruiters look like predators. A few changes and that image would change immediately. (Thanks, Ty.)

The interesting story is what Jane and her husband have to say.

Check out the five things Jane's sponsor told her (and withheld from her) that are getting everyone's attention. Are you saying any of these things?

When Jane's neighbor signed her up she told her (according to Jane here):

1. Buy not one, but three business centers. Else you're not serious about making big money. Three gets you to 20% commission instead of 10%. (Get the BIG package.)

2. That the way to make the money was to recruit others, not get customers. Jane herself says the products were too expensive to get customers.

3. That it's her fault if she doesn't succeed.

Jane's sponsor didn't tell her that it's not easy...She

4. Didn't tell Jane that most people don't earn commissions (87%, according to USANA's documentation, very common in other companies). Most reps who signed up are just wholesale customers now (according to USANA's own VP here.) We all know how hard it is to make money first hand, don't we?

5. Didn't tell Jane that very few people make the big money. Most of the money - 76% commisions paid to USANA distributors- goes to 2.6% of them, according to their SEC filings reviewed by Minkow.

(Mr. Minkow is an uncomfortable interviewer. He did time for fraud in the 1980s. He has, however, like many people, changed his ways in recent years and is today helping the government undercover fraud.)

Here's the video:









Jane's story plays out in way too many companies. Here's how to make sure you don't encourage this.

Let people start small and build up.
Tell them the truth - that it's not easy.

Yes, doing that will reduce the numbers of (unqualified) people coming in - and those recruiting commissions you and the company receive - but it will also increase our retention rates and our reputation.

Think?

Thank you to Kim Klaver for bringing this info public.

http://kimklaverblogs.blogspot.com/2007/04/usana-looks-even-worse-now.html



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