Momentum and The Power of Sync

Momentum and The Power of Sync 

- by Pete Zdanis

 

One of my favorite authors is Seth Godin. If you haven’t yet read his book “Tribes” - http://amzn.to/U2pN7 - I recommend you do so soon.

I am a subscriber to Seth Godin’s Blog - http://sethgodin.typepad.com/ - and receive daily updates from him. The blog article below – “The power of sync” -  struck me as a real-life analogy to what we in network marketing call “momentum”.

Few Associates ever experience true momentum, because it is so easy to fall into “management mode”. That is, they’ve sponsored a few Associates and their “team” has grown to 20, 50, 100 or even a few hundred people over time. The “team leader” then sits back and starts telling those people what they should be doing – (management mode) instead of leading by example by continuing to invite, present, recruit and sponsor motivated, committed entrepreneurs themselves.

The reality is that this team leader really isn’t leading a team. They are giving orders to a collection of people who are doing (or not doing) things for their own reasons, at their own pace, at a time of their choosing. That is understandable. We are all independent business people who can choose to build or not build our businesses how we want to. This is why some people consider network marketing to be similar to “herding cats”. 

The manager continues to hope that someone in the group will someday start building their business. What is really happening is that all of these associates are watching what their upline manager(s) is/are doing, and duplicating their actions. In a worst case scenario, this can lead to a collection of people all telling other people what they should be doing, with no one doing what needs to be done to build a business!

The solution? – Stop being a manager and start leading by example. Invite, present, recruit and sponsor motivated, committed entrepreneurs on an ongoing basis. Work with them, train, coach and mentor them to help them achieve their personal and financial goals. 

Stop telling people what to do, and start doing it yourself. 

Soon, the motivated, committed entrepreneurs you have sponsored will be duplicating your efforts. It is also likely that a few of the “cats” in your “herd” will start paying attention and begin duplicating your efforts as well.

Think for a moment about what would happen to your business if every person on your team sponsored just one new Associate every month, and duplicated that process throughout their own teams.

You would experience what Seth Godin calls “the power of sync”, or what everyone in network marketing dreams of – “momentum”.

The power of sync – by Seth Godin

100 people doing something at the same time has far more power than 300 people doing it over time.

We unconsciously amplify the power of coordination when we consider the impact of actions. If there's a thousand people waiting outside of a store, we instantly believe we're seeing a phenomenon.

While the internet makes it easier than ever to spread ideas, it makes it far more compelling to coordinate actions.

If everyone in your weekly meeting drops a pencil at precisely 12:03, you'll notice.

© 2010 - Zdanis USANA Power Team ®  - www.petezdanis.com  - All Rights Reserved

This article may only be copied, shared, distributed or otherwise reproduced in its entirety, including this disclaimer and copyright authorization.

Weight-Loss Strategies Can Affect Risk of Micronutrient Deficiencies

Weight-Loss Strategies Can Affect

Risk of Micronutrient Deficiencies

At a Glance:

While losing weight carries many health benefits, cutting

calories may inadvertently lead to cutting micronutrient

intakes as well. Researchers have found an increased risk

of vitamin and mineral deficiencies in females using certain

popular diets.

Read more about this research below:

Cutting excess calories is a key component of all successful

weight-loss strategies. However, consuming less food can lead

to lower micronutrient intakes if individuals aren’t careful.

Researchers from Stanford University recently conducted a

study among 300 overweight or obese women who were

randomly assigned to follow one of four popular weight-loss

diets: Atkins, Zone, LEARN, or Ornish. Dietary surveys were

administered at the start of the study and after two months of

weight loss. From that data, intake levels of 17 vitamins and

minerals were estimated.

Regardless of which diet was used, participants were able to

reduce their calorie intake from an average of 2000 calories/day

to 1500 calories/day. (One pound of weight loss requires a net

reduction of 3500 calories.) Somewhat unsurprisingly, that reduction

in calories led to a reduction in vitamin and mineral intake for many

participants. Vitamin E was the worst nutrient affected, with more

than 65% of women receiving inadequate levels while following

their diet guidelines. Overall, 12 of the 17 nutrients measured saw

differences in intake levels between the start and end of the study.

One way to compensate for potential micronutrient deficiencies is

use of a quality multivitamin supplement. However, of the four

diets examined in this study, only one recommended use of a

supplement, and only 3 participants followed that recommendation.

The researchers also found that in some individuals, risk of

micronutrient deficiencies actually decreased when participants

placed an emphasis on replacing calorie-dense, nutrient-poor foods

with low-calorie, nutrient-rich foods.

This research emphasizes the importance of choosing a weight-loss

strategy that focuses on more than just cutting calories. A proper

weight-loss strategy must also focus on healthy dietary choices,

including an emphasis on adequate vitamin and mineral intake.

Gardner CD, Kim S, Bersamin A, Dopler-Nelson M, Otten J, Oelrich B,

Cherin R. Micronutrient quality of weight-loss diets that focus on

macronutrients: results from the A TO Z study. 2010. American

Journal of Clinical Nutrition 92(2): ePub ahead of print. Retrieved

online 14 July 2010.

Essentials of Health Newsletter is Copywritten by USANA Health Sciences

See Who's Who on the Zdanis USANA Team this Week!

See Who's Who on the Zdanis USANA Team this Week!

For the Week Ending 07.23.10

New Team Members:

Elizabeth King

Ambalal Patel

Manjula Patel

Robert Wilcox

Top Performers:

Richard Cameron - #14 Top Earner among Canadian Silver Directors

Lee Colaguori – Advanced to Sharer and sponsored two new Associates

Julianne Koritz – Sponsored one new Associate

Pauline Puzynska – #3 Top Earner among Canadian Directors

Gretchen Sharpe – Advanced to Believer

Robert Wilcox – Advanced to Sharer

Pete & Dora Zdanis – #4 Top Earners among US 1-Star Diamonds (#7 Globally)

Congratulations to all!

Pete  and  Dora 

USANA Health Sciences Announces Record Second Quarter 2010 Financial Results

News Release

Net sales increased by 12.4% to a record $126.0 million Earnings per share increased by 21.1% to a record $0.69 Company raises outlook for 2010 SALT LAKE CITY, Jul 27, 2010 (BUSINESS WIRE) -- USANA Health Sciences, Inc. (NASDAQ: USNA) today announced record financial results for its fiscal second quarter ended July 3, 2010.  Financial Performance Net sales in the second quarter of 2010 improved 12.4% to $126.0 million, compared with $112.1 million in the second quarter of the prior year. This increase was due to an overall increase in product sales, driven primarily by a 5% increase in the number of active Associates, which is the result of continued growth in the Asia Pacific region. Additionally, favorable changes in currency exchange rates accounted for $5.2 million of the increase in net sales for the second quarter of 2010.  Net earnings in the second quarter of 2010 increased 22.5% to $10.8 million, or $0.69 per share, compared with $8.8 million, or $0.57 per share, in the second quarter of the prior year. This year-over-year increase resulted from higher net sales and improved gross profit margins. These improvements, however, were partially offset by higher Associate incentives expenses and higher selling, general and administrative expenses.  For the six months ended July 3, 2010, net sales increased by 17.1% to $245.1 million, compared with $209.4 million for the first six months of the prior year. This growth in sales was due to an overall increase in product sales, driven again by a higher average number of active Associates. Additionally, favorable changes in currency exchange rates accounted for $13.9 million of the increase in net sales for the first six months of 2010. Net earnings for the first six months of 2010 increased by 32.2% to $20.4 million, or $1.31 per diluted share, compared with net earnings of $15.4 million, or $1.00 per diluted share, for the first six months of the prior year. This increase in net earnings during the period resulted from higher net sales, improved gross profit margins, and lower relative selling, general and administrative expenses, which were partially offset by higher Associate incentives expenses.  Regional Results During the second quarter of 2010, net sales in the North America region decreased by 1.0% to $62.1 million, compared with the second quarter of the prior year. Net sales in North America benefited by $2.4 million from changes in currency exchange rates in Canada and Mexico. Active Associates in the North America region decreased by 10.4% compared with the second quarter of the prior year. Importantly, on a sequential quarter basis, active Associates increased by 1.1% and sales increased by 2.6% in this region.  Net sales in the Asia Pacific region for the second quarter of 2010 increased by 29.5% to $63.9 million, compared with the second quarter of the prior year. This improvement was mainly due to an overall increase in product sales, driven by 22.3% growth in the number of active Associates. This increase in the number of active Associates was primarily the result of double-digit growth in Hong Kong.  "Although our results in North America were down slightly over last year, we are pleased to see consecutive quarter improvements in this region in both sales and active Associates," said Dave Wentz, chief executive officer. "The success of our Asia Pacific region continues to drive our top-line growth. This success was highlighted this quarter by our Asia Pacific convention held in May in Hong Kong, which was our largest ever Associate-attended event. At this event, we introduced several new region-specific products that contributed to record convention sales of $2.8 million. Highlighting this convention was the announcement of our intention to open business in China. We believe that now is the right time for USANA to make the necessary investments for entry into this large and growing market."  Outlook Jeff Yates, chief financial officer, said, "I am pleased with our strong second quarter operating results which were better than we expected, particularly the 160 basis-point improvement we made to our operating margin. While the Asia Pacific convention in May added about $1.6 million in SG&A spending, this was more than offset by the significant improvement to our gross margin. In light of our strong second quarter operating results, we are raising our financial guidance for 2010. We now project consolidated net sales to be between $488 million and $495 million and earnings per share to be between $2.73 and $2.80."  Conference Call USANA will hold a conference call and webcast to discuss this announcement with investors on Wednesday, July 28, 2010 at 11:00AM Eastern Time. Investors may listen to the call by accessing USANA's website at http://www.usanahealthsciences.com. About USANA USANA develops and manufactures high quality nutritional, personal care, and weight management products that are sold directly to Associates and Preferred Customers throughout the United States, Canada, Australia, New Zealand, Hong Kong, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, and the United Kingdom. More information on USANA can be found at http://www.usanahealthsciences.com. Safe Harbor This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including global economic conditions generally, reliance upon our network of independent Associates, the governmental regulation of our products, manufacturing and marketing risks, adverse publicity risks, and risks associated with our international expansion. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission.  USANA Health Sciences, Inc. Consolidated Statements of Earnings (In thousands, except per share data) (Unaudited) Quarter Ended 4-Jul-09 3-Jul-10 Net sales $ 112,093 $ 126,011 Cost of sales 23,753 22,735 Gross profit 88,340 103,276 Operating expenses Associate incentives 50,321 57,065 Selling, general and administrative 24,719 29,149 Earnings from operations 13,300 17,062 Other income (expense) 125 (587 ) Earnings before income taxes 13,425 16,475 Income taxes 4,634 5,705 NET EARNINGS $ 8,791 $ 10,770 Earnings per share - diluted $ 0.57 $ 0.69 Weighted average shares outstanding - diluted 15,385 15,697 USANA Health Sciences, Inc. Consolidated Balance Sheets (In thousands) As of As of 2-Jan-10 3-Jul-10 (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 13,658 $ 28,427 Inventories 25,761 30,789 Other current assets 12,507 11,910 Total current assets 51,926 71,126 Property and equipment, net 57,241 56,035 Goodwill 5,690 5,690 Other assets 8,581 10,821 Total assets $ 123,438 $ 143,672 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 5,810 $ 7,121 Other current liabilities 34,668 36,523 Total current liabilities 40,478 43,644 Line of credit 7,000 - Other long-term liabilities 1,587 1,470 Stockholders' equity 74,373 98,558 Total liabilities and stockholders' equity $ 123,438 $ 143,672 USANA Health Sciences, Inc. Sales by Region (Unaudited) (In thousands) Quarter Ended 4-Jul-09 3-Jul-10 Region North America United States $ 39,908 35.6 % $ 37,992 30.1 % Canada 16,454 14.7 % 18,373 14.6 % Mexico 6,379 5.7 % 5,748 4.6 % North America Total 62,741 56.0 % 62,113 49.3 % Asia Pacific Southeast Asia/Pacific 24,518 21.9 % 23,968 19.0 % East Asia 19,649 17.5 % 34,437 27.3 % North Asia 5,185 4.6 % 5,493 4.4 % Asia Pacific Total 49,352 44.0 % 63,898 50.7 % Consolidated $ 112,093 100.0 % $ 126,011 100.0 % Active Associates by Region (1) (Unaudited) As of 4-Jul-09 3-Jul-10 Region North America United States 65,000 32.5 % 57,000 27.1 % Canada 26,000 13.0 % 26,000 12.4 % Mexico 15,000 7.5 % 12,000 5.7 % North America Total 106,000 53.0 % 95,000 45.2 % Asia Pacific Southeast Asia/Pacific 46,000 23.0 % 44,000 21.0 % East Asia 40,000 20.0 % 63,000 30.0 % North Asia 8,000 4.0 % 8,000 3.8 % Asia Pacific Total 94,000 47.0 % 115,000 54.8 % Total 200,000 100.0 % 210,000 100.0 % (1) Associates are independent distributors of our products who also purchase our products for their personal use. We only count as active those Associates who have purchased product from USANA at any time during the most recent three-month period, either for personal use or for resale. Active Preferred Customers by Region (2) (Unaudited) As of 4-Jul-09 3-Jul-10 Region North America United States 42,000 60.9 % 39,000 59.1 % Canada 15,000 21.7 % 15,000 22.7 % Mexico 3,000 4.3 % 3,000 4.6 % North America Total 60,000 86.9 % 57,000 86.4 % Asia Pacific Southeast Asia/Pacific 7,000 10.1 % 6,000 9.1 % East Asia 1,000 1.5 % 2,000 3.0 % North Asia 1,000 1.5 % 1,000 1.5 % Asia Pacific Total 9,000 13.1 % 9,000 13.6 % Total 69,000 100.0 % 66,000 100.0 % (2) Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased product from USANA at any time during the most recent three-month period. SOURCE: USANA Health Sciences, Inc.   USANA Health Sciences, Inc., Salt Lake City Investors contact: Patrique Richards Investor Relations 801-954-7961 investor.relations@us.usana.com Media contact: Dan Macuga Public Relations 801-954-7280