Friday, February 3, 2012

Compensation: Usana versus WFG

Usana: Top Commission Pay for a home-based business.They sell high quality nutritional supplements taken by athletes, various celebrities, and people who have severe health conditions. Their stock is sold on the New York Stock Exchange and their products have been recommended by Oprah and recently Dr. Oz.

If you want to recruit someone who has been in or is currently in a nutritionals-based network marketing company DO NOT INSULT THEIR BUSINESS OR DISMISS IT. You will only alienate them. Instead provide clear factual evidence for why their compensation plan isn’t as good and the current state of the economy is not conducive to success in that kind of company.


Usana Ranks
WFG Ranks
Believer
Associate
Builder/Achiever/Director
Senior Associate
Silver Director
Marketing Director
Gold Director
Senior Marketing Director
Ruby Director
Executive Marketing Director
Emerald Director
CEO
Diamond Director
FVC
2+ Star Diamond Director
EVC


With this alone you can at least show that the names we give people in higher positions are more credible and don’t sound like a progression of new Pokémon Game Titles based on colors and gems.

Next there’s pay…


Usana Title
% Com.
WFG Title
% Com.
Believer
16%
Associate
35%
Director
20%
Senior Associate
45%
Silver Director
20%
Marketing Director
65%
Gold Director
20% + 1 Share
Senior Marketing Director
81%
Ruby Director
20% + 2 Shares
Executive Marketing Director
81% + Stock
Emerald Director
20% + 6 Shares
CEO
++Stocks
Diamond Director
20% +10 Shares
FVC
+++Stocks


In Usana shares typically amount to $200-$500 a week.
In essence, with Usana:


Usana Title
Weekly pay in Com.
+ Shares Total
Weekly Total
Gold Director
$1000 and up
+ $200-$500
$1500 +
Ruby Director
$2000 and up
+ $200-$500 x 2
$3000 +
Emerald Director
$3000 and up
+ $200-$500 x 6
$6000 +
2 Star Diamond (Mr. Dinh)
$6000 and up
+$200-$500 x 21
$16,500+


You can’t exactly say they aren’t getting paid well. But you also have to take into consideration the fact that they are making money based on selling supplements and health-related products. The average person will only buy about $40-$100 worth of product. In order to make decent compensation you have to sell to at least 10 people a week. That’s why they place emphasis on “building a team” and recruiting new associates in. With new associates come new clients.

On top of this there is a fee to join. With WFG the fee is $100 to become registered as an associate, $300 to take you license test, and $100 in extra related costs. Total = $500.

In Usana you have to buy a “Business Center”. 1 Business center will cost you $500. They recommend you get 3. If you get their “Pro-pack” you are buying 3 business centers and a huge box full of all of their products to sample and pass out to people. This costs $1400. In order to continue getting paid commission in the company you also have to buy 100 pts of product each month. That rounds up to $150 a month. It’s kind of expensive…

In WFG they have 3 separate categories they usually put people in that reflect compensation.


A Person Who Gives Referrals
Part-Time
Full-Time
$100 per referral
$100-$2500
$3000 and up


Part-time = Associate to MD
Full-time = SMD and up

As with Usana, WFG compensation is dependant on number of sales as well as residual payment accumulated. Part-time people usually have 4 appointments per week and will usually sell a $250 life insurance policy on average for each client. Each life insurance sale is multiplied by 12 (for 12 future months of payment from the client) and then paid out based on the compensation percentage each position is entitled to.

$250 x 12 = 3000 pts
Associate (35%) = $1050
Senior Associate (45%) = $1350
MD (65%) = $1950
SMD (81%) = $2430

It usually takes a month for the full payment to reach the WFG member, but ultimately they can gain more money with fewer clients than Usana.

Then there’s Over-Riding which is easier to explain in WFG than Usana. In WFG it’s pretty plan and simple:


But in Usana, they have this thing called the LEFT side and the RIGHT side that have to match up in order for the associate to gain compensation. This applies to recruits as well as sales.

For instance if you make a sale of 250 pts you will place it on your Left side. You will not receive compensation until you have another $250 to match it on your Right side. Then in the end you will get $80 total compensation from your sale of $500. Woooooh! Exciting… If you make a sale of $4000 worth of product ($2000 will go to your left side and the other $2000 on your right) you gain a grand total of: $800.

Don’t spend it all at once…

With recruits they also need to be placed on your Left and Right. You can really only get paid if you have 2 recruits or 4 recruits or 6 recruits. You need them to balance out and come in pairs. The compensation your down-line makes from sales is theirs, but their points roll up to you. When all is said and done it is harder to sell products to people because those individuals are concerned for their health. Most people don’t care that much and those who do are still not willing to pay that much for their health. Nobody appreciates their health until they lose it. Financial health on the other hand is something everyone is suffering in and more people are willing to listen more openly to where to put their money –especially when the money they put in goes into their own account for future withdrawals.

WFG’s Builder’s Compensation Plan for a SMD during the month of November 2011:

Personal Production
Base-Shop (Over-ride)
Super Base
Super Team
Bonuses
TEMPORARY
TEMPORARY
RESIDUAL
RESIDUAL
RESIDUAL
26,050 pts
106,000 pts
617,000 pts
$1.1 million
4% Base
       x 81%
         x 30%
          x 17%
6 Generation
3% Super Base
$21,150
$23,985
$86,870
$330,810
3% Super Team



3 comments:

  1. "With this alone you can at least show that the names we give people in higher positions are more credible and don’t sound like a progression of new Pokémon Game Titles based on colors and gems."

    LOL

    ReplyDelete
  2. I don't happen to agree with you Jessica Power. You have some good & interesting points which I do thank you for the clarification. However, you failed to mention how hard it is to duplicate the WFG process in it's entirety. Mainly I am speaking about the needed licenses in order to make the good commissions. The life & health insurance license is certainly not easy by any stretch. This is coming from someone who did well in school & is extremely smart & intelligent to begin with. I ranked 13 in my HS graduating year & have a BA in Math. And although I am not great at test taking, I did pass my life insurance license with some difficulty by my 2nd try. I hear many require 4-7 tries to pass it. But the securities licenses are definitely no joke. If it wasn't bc of Chase paying me and my job depending on passing, I doubt if I could've gotten those licenses. People with other normal jobs would need to be super duper disciplined and have incredible memory power in order to pass these licenses. The WFG system is extrememly difficult to duplicate bc of the license requirements. Unless you can find people who already have them. Plus... seriously, selling life insurance is easy?? No honey. It is not. I think selling great health is much easier. There are so many people with health issues in the US and even worldwide. And what good is it to have all this money saved up when your bad health & degenerative diseases are going to drain it anyway and donate to the doctors & hospitals. Wouldn't you want to be healthy enough to enjoy the fruits of your hard labor. But back to my original point, USANA's system is much easier to duplicate than WFG. i have seen many agents in WFG who only make $500k-$700k after 7 yrs fulltime, but with USANA, with the same exact time commitment & focus, people are millionaires within 5 years. And there are MANY of them, not the once in a blue moon ones. I know this bc I am doing both currently. And also doing a 3rd company. So far, WFG is low priority for me... and I already have my life, accident & health insurance, as well as my Series 6 & 63 licenses. And yet still, I am not putting all my confidence & belief in WFG. THAT alone says alot.

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  3. I forgot to mention... without these licenses, you can barely make anything when you just share. Cause you are limited to getting paid in only 2 tiny simpler products. Whatever other insurance or investment products are sold, you don't get paid on bc you are not licensed. It's only the licensed writer that will get paid on that. Really mostly young people have the drive, brain health & energy to get these licenses. But yet most of the people who do join WFG is usually a bit older. With USANA, there are no licenses required. Just find your teammates who are as eager about great health & earning a great income at the same time. Although, for me, USANA is my 2nd choice, my other company is my first choice.

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