Monday, August 30, 2010

Why Stick With USANA?

USANA was started in 1992 and is publicly traded on NASDAQ (symbol USNA).  All of their financial statements are published online at  I want to be part of a company that is an "open book" company.

USANA is financially 'rock solid' and has a 50-year business plan in place.  My business is willable to my children and their children, or anyone I choose.

FHTM (Fortune Hi-Tech Marketing) is a hot network marketing company in Central Texas right now.  I have been approached by several of their associates this year.  The #1 thing they claim is that FHTM pays out over 90% of their sales revenue to the associates.  Folks, do the math!  A major Corporation can't survive on less than 10% of their sales revenues, if that is their only source of income.

FHTM associates have told me that publicly-held corporations are bad.  The Enrons, Arthur Andersens, and other corrupt corporations were all bad because they were publicly traded.  How stupid does that sound!  FHTM is a privately-held company, meaning that they do not have to disclose any of their financials to the public and therefore, they can make all kinds of claims about payout percentages, but will never provide any solid evidence to back their claims.  Are publicly traded companies all bad?  Absolutely not!  Isn't it interesting that the companies that FHTM represents are publicly-held corporations, i.e., Dish Network, AT&T, Sprint, GE, etc.?  They broker the services of these companies. 

USANA states on the front page of their website, "Highest Payout Percentage for Profitable, Reporting Companies in the Industry."  USANA is very conservative in their computations and will only state this if they can prove it.  And, the USANA payout is greater than 50 percent.  The network marketing industry is full of claims, but there are few companies that publish their complete financials on the web like USANA Health Sciences.

People get sucked into these claims (over 90% payout, etc.) and trust the marketing hype published by their company.  Here is a quote from KENS5.COM, "At least two attorneys general got wise to it all: South Dakota and Montana's top law officials have filed suit against the company for its deceptive practices."  You can watch a video and read the story by clicking on the KENS5 link above.

So, if an FHTM associate attempts to recruit you, ask them these 3 questions.
  1. Where is the documentation that FHTM pays out over 90% revenues to their associates?
  2. If publicly-held corporations are so bad, why do you market the products of some many publicly-traded companies?
  3. If I quit recruiting people, can I live on my residual?
Then, consider 'residual income' potential.  With USANA, you can start with a 20% commission rate with 3-business centers.  Your residual in USANA is based on the number of autoships in your organization.  FHTM raised their commission rate to 1.5% this year, so they are not about residual income.  Their main income comes from recruiting people.  A person pays $300 for their business system binder.  That $300 is largely distributed to the sponsor and their managers.  If it is deemed to be a legit company and you want a company that will allow you to walk away in a few years, yet maintain a huge residual income, then FHTM is not the company for you.  You can only make big money as long as people are signing recruits.

One of the statements that was used when I heard the presentation was, "It only makes sense that you would signup with FHTM.  You already use a cell phone and cable or dish TV, so why not get paid for the services you use."  The problem with that logic is that at 1.5% commission, on a $300 monthly bill, you make $4.50.  You would have to have $100,000 per month of services to make $1,500 per month residual income.

Hopefully this information will better arm you to discuss FHTM in the future!

Stick with USANA and share it with everyone!  You too can have a large residual income that is willable!

Dream Big and Live Your Dreams!

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