There’s a big ACN scam question being thrown around by people who are doubtful about the business opportunity and I can’t really blame them. I can understand why people automatically assume an MLM company like this one is a scam.
If you have seen all the ACN reviews on the internet, most of them have one thing in common. They are biased reviews because the author of the website is part of the company. If you are sick and tired of all the fake ACN reviews and just want the truth, you came to the right place.
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Products: Phone Services, Internet Services, etc.
What is ACN?
ACN is an MLM company that revolves around the distribution of telecommunication, television, and energy products and services. The company was founded in 1993 by Robert Stevanovski, Greg Provenzano, J.D. Sullivan and twin brothers Tony and Mike Cupisz and started its life as the American Communications Network based in the USA. In 1999 the company expanded its operation to Europe and 2004 it opened its doors in Asia Pacific and now operates in 24 countries around the world. In other words, the company is built on a great foundation and you don’t have to worry about it hitting the can anytime soon.
The Product Line
ACN provides products that are in highly competitive market and you really need to check out how the costs stand up to the completion in your market place. They are focusing on products that are essential to consumers that they are already using.
Some of these products consist of:
- Cell Phone Plans
- Local Long Distance Calling
- Energy (Natural Gas etc.)
- Television Channel Plans
- Home Recruiting
- Internet Plans
The Signing Up Process
So to start making money, you have to sign up with ACN as an independent distributor. Now, I’m sure you are here because you are more on the “make money” aspect of this company. Understand that you are going to basically be opening up your own home business, selling their products. You could work out deals and create direct customers through family, friends, or local businesses and receive a commission for each account.
The Business Opportunity
ACN has a Multi-Level Marketing structure which means that its revenue comes from independent distributors building teams of people all using the ACN services.
So that all sounds pretty straight forward why all the allegations about them being an illegal Pyramid?
The start-up cost for ACN is approximately $499 which the company say is for overheads and representative support. Compared to most companies who use the MLM business model this does appear to be a higher membership fee than other companies, (the average membership fee is usually well under $100) and so as a result of this ACN has found itself on three separate occasions defending legal action allegations of being an illegal pyramid. (In Canada, Australia and the USA) An illegal pyramid is where there are no real goods or services are provided by a company and distributors earn commissions on virtually bringing people into the pyramid.
ACN Compensation Plan
The compensation plan is divided into two plans, personal commission and residual commissions. As for the personal commission, each representative will be assigned customer points. In order to earn a customer point, you have to introduce new reps into the program. When you are able to earn 1-29 customer points, you get 1% commission when they sell a product. You get 3% when you have 30-39 customer points. You are entitled to 5% and 10% commission for 40-49 customer points and 50+ customer points respectively.
Therefore, for you to increase your percentage, you have to introduce more reps into the system, and increase your customer points. Note that when you introduce up to 10 customers, you earn 20 customer points and so on. An example will make this clearer. Let’s say you introduce 20 reps, each rep will be billed $40. If you calculate it you have 20 customers x $40 x 5% = $40 per month in commission.
As for the residual commission, you earn the recurring amount from the acquisition of customers. The more customers you introduce, the more you can earn, subject to your current level.
ACN is in a market that is super saturated and there is a TON of other services and MLM companies that sell similar services. Now this isn’t as big of a problem compared to the next one.
The biggest challenge people have is recruiting people into the business. In fact, majority of your money will be made recruiting people period. So if you don’t have the right skill sets to sponsor people, you will have a tough time building this business.