Barry Minkow explains the Usana Health Sciences fraud being perpetrated on distributors and investors with the acronym W.E.N.T.Z. (as in Myron Wentz, founder of Usana).
W - Where’s the breakdown of distributors? Why don’t they tell everyone how many people have come and gone from the company? Why don’t they tell everyone that 70% of the compensation goes to the top 3% of distributors?
E - Eighty-seven percent (87%)… the number of Usana distributors currently losing money.
N - No 75% savings. The products are too highly priced because of all the levels of commissions that must be paid. Usana touts a 75% savings over traditional retail outlets, but products of comparable potency are actually much less expensive than Usana vitamins.
T - Tell me what percentage of people succeed? How many people succeed in the first 12 months? Why doesn’t Usana tell anyone how many people fail within 12 or 24 months? How can a potential distributor make a fully informed decision without this information.
Z - Zero sum game, the Usana business. You cannot retail the products and make money. You must recruit distributors (many distributors who stay at the bottom of the pyramid) and even then you will likely lose money.
