USANA: Distributor or Non-Distributor Associate?

Distributor or Non-Distributor Associate?

-       by Pete and Dora Zdanis

A question we are often asked by prospects as they go through the USANA online enrollment process is:

” What is the difference between a Distributor and Non-Distributor Associate, and which option should I choose?”

There are very subtle, minor differences between Distributor Associate and non-Distributor Associate status.

Here are the definitions from the USANA “Ask Andy” web site:

“Difference Between an Associate and a Distributor:

All participants in the compensation plan are considered Associates, whether they are Distributors or not. An Associate may elect to become a Distributor or not. The following explains the differences: 

• Associates who do not elect to become Distributors may purchase products for their personal use only. Associates who are not Distributors are charged tax at the price they pay, either Autoship or wholesale. Associates who do not elect to be Distributors are required to meet the same sales requirements as stated in Section 5 of the Policies and Procedures, but they must do so through the Preferred Customer program.

• Associates who elect to become Distributors may purchase product for their personal use and for their retail customers. Distributors pay wholesale or Autoship pricing for the product, but sales tax at the suggested retail price of the product. Associates who elect to become Distributors meet their sales requirements through Preferred Customers, retail customers, or a combination of both.”

Our recommendation, unless you plan to make a lot of retail sales (which few people do), would be to enroll as a non-Distributor Associate, since you would be charged sales tax on the lower, Wholesale, rather than Retail, prices of taxable items for your location. Should you decide that  you would like to change your status later, you can do so at any time.

Pete and Dora Zdanis

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