subject: A Few Ideas On How To Succeed In The Usana Business Model [print this page] A Few Ideas On How To Succeed In The Usana Business Model
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. The Associates are responsible for purchasing and selling the product line, as well as enlisting other Associates to build their own sales network, this line enlists their own line and so on. As is common within a network marketing strategy, the network of associates is expanded to ensure the greatest amount of income opportunities. In the case of Usana, it is extremely important for a prospective Affiliate to understand both the theory and requisite practices behind their compensatory model. Research into the company financials can prove to be very beneficial. An appreciation for both the simplicity and complexity of the Usana plan can also prove propitious. 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 Usana business model ensures steady sales of company products to the distributors, as well as serving as an impetus for distributors to sell the product and build their line. This plan is well-suited to anyone with a strong work ethic and major sales and marketing skills. The fact that 70% of all commissions go to only the top 2.31% of distributors supports this claim.
