USANA Revival
Sequence Inc. Forensic Accounting - FRAUDfiles Blog by Tracy Coenen "An illustration of Usana's pyramid. This video is cool. First it demonstrates for you how Usana Health Sciences is a pyramid scheme. Then it goes on the falsely claim that in order to succeed with Usana, "You just need to be teachable." And then the video claims that there's no harm to associates by stating, "Worst case scenario, you get healthy."
Interesting, what do you think? Should the FTC be looking at this? (Thanks to Tracy, for the tip.)


Comments
How in the world does this video prove Usana to be a pyramid scheme? Do you have any understanding what a pyramid scheme actually is? And then you stoop to the level of thanking the likes of Tracy Coenen for bringing it to your attention. Allow me to bring something else to your attention. You need a lot more education on the reality of pyramid schemes. Refering to this video as proof that Usana is a pyramid scheme removes you, by default from any intelligent conversation regarding the current issues surrounding Usana.
Posted by: Steve | June 9, 2007 6:37 PM
Steve, one of the hallmarks of a pyramid scheme is the method by which individuals are recruited.
The standard revival pitch, which includes unverifiabile testimonials, is a dead give away.
There are few if any serious distributors which would recruit individual sales staff with this sort of pitch.
Posted by: michael webster
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June 9, 2007 8:42 PM
This isn't a sales pitch, it's a flashy promotional video. And when you're building an organization, concentrating on "The Power Of Two" is important. The definitive evidence of a true pyramid scheme is all recruitment and no product. And speaking as honestly as I can, Tracy Coenen is a very poor source for any legitimate or insightful information regarding MLM organization building. Read her blog, analyze her postings. I don't believe that if seriously asked, Tracy Coenen couldn't explain what an actual pyramid scheme is if she didn't have Robert Fitzpatrick or John Taylor whispering in her ear. But what she does do very well is post unsubstantiated and perhaps pretexted confidential Usana financial data on her blog. Postings that Yahoo seems to pull down as soon as they go up. Tracy Coenen is not a source to add credibility to any serious "get to the facts" blog.
Posted by: Steve | June 10, 2007 1:24 AM
Steve, unfortunately you are just wrong about what a modern day pyramid scheme is. Many of the modern pyramids had products to sell - but abscent the incentive to sign up and get paid for recruiting, the none of these products would have been sold. The hallmark of a modern pyramid is the test: if there were no payment for recruitment, would you purchase the product?
Unfortunately, a number of pyramid schemes have used the very type of sales pitch/promotion that you have defended -this would be a huge red flag if the proposed FTC Rule was in effect.
Tracy Coenen is an excellent source of facts about the Mary Kay opportunity.
I don't understand what you mean when you say she has used pretexting to obtain confidential USANA information - someone is posting information on the Yahoo board, which is simply repeated by Tracy. Do you have any evidence that pretexting is involved?
Posted by: michael webster
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June 10, 2007 1:55 PM
I didn't say she was engaged in pretexting. I said she's posting data that may have been obtained by pretexting.
Posted by: Steve | June 10, 2007 8:14 PM
Steve, do you have any evidence that pretexting was involved in obtaining the data that Tracy re-posted?
Posted by: michael webster
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June 10, 2007 9:26 PM
I believe that if it was a true insider, a person who works at Usana, a person with access to that kind of data, the company would have been able to track that person down quickly.
Posted by: Steve | June 11, 2007 10:00 AM
So you think that the insider posts are accurate, then
Posted by: michael webster
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June 11, 2007 7:48 PM
"The hallmark of a modern pyramid is the test: if there were no payment for recruitment, would you purchase the product? "
And that is a good point. How many MLM companies out there offer a product a person would purchase or consume IF you remove the opportunity for recruitment income? That happens to be one of my top criteria. I have the scars from my MLM experiences to be able to say that. It the products are not viable and have real value, I'm not interested.
USANA happens to be one of those unique companies with a great product. I became an associate initially to acquire the products for myself and my family. Now after using them and seeing the great results we are spreading the word. This is resulting in us building an organization. I don't get paid for recruiting people. I get paid for people consuming the products.
Posted by: Dennis Begley | July 17, 2007 3:28 PM
Dennis;
Your family may derive benefit from this products.
But the unalloyed facts are that a) few individuals make money as Usana Distributors, but b) the pitch universally made by Usana is for "true health and wealth". I would have no problems if Usana primarily pitched their superiority of their products. But they don't -they pitch a silly idea of a "wealth" life style. Which doesn't exist.
Sell the product, and not the non-existent business opportunity.
Posted by: michael webster
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July 17, 2007 8:50 PM
Here is a comment I received by email:
Dear Mr. Webster
I�ve been reading the �BIZHOP News� articles about USANA Health Sciences, watched Barry Mankow�s youtube videos, and read several articles about his class-action lawsuit against USANA.
I signed up as a Preferred Customer with USANA last year because USANA�s vitamins came with a 30-day money back guarantee and other vitamins I�d tried through the years made me sick. My bones, teeth, hair, etc. were letting me know I needed more nutrition than I was getting from food.
Anyway, these supplements not only did not make me sick, I�ve felt better since I started taking them. Plus USANA�S self-preserving shampoo and conditioner are the only ones that I�ve ever used that haven�t made my head itch.
The vitamins are $39.95 plus tax & shipping, and the shampoo & conditioner are $12.50 each, plus tax & shipping. They are not overpriced, and I trust and have benefited from the science behind these products.
I later signed up to be an Associate and now have a number of Preferred Customers who are also very pleased.
I have not made a profit yet, but most new business ventures take three to five years before turning a profit, something that Mankow and others have failed to mention. I do have checks coming in from USANA fairly regularly, and my USANA income is higher this year than last year.
From watching the videos, I feel sorry for the folks who thought they�d �get rich quick� in this business. No USANA Associate I�ve met has said that this would be the case. In fact, I was told that this is not a �get rich quick� scheme, and that to make this business work, I�d have to work at it.
This company is about teamwork, it�s about integrity, and it�s about science.
I think that you should try USANA�s products and talk with the associates who are doing well, some of whom are quite young, and all of whom are motivated and hard working.
Thank you,
Gwen Hunter, Associate
USANA Health Sciences
360.734.8415
"Love begins at home, and it is not how much we do... but how much love we put in that action. "
"We can do no great things, only small things with great love. " Mother Teresa
Posted by: Michael Webster | October 17, 2007 5:27 PM