Many people wonder if ACN is a pyramid scheme or some kind of scam.
Well, in my opinion it’s neither of those things.
I did join this company several years ago and have since moved on to online marketing instead, but this isn’t one of those “ACN is scam because it didn’t work for me” either. No.
I take an objective look at the facts and share my experience to help you make your own mind up.
Sound good? Ok. Let’s dive in….
What Is A Pyramid Scheme And Is ACN One Of Them?
To answer this lets look at the definition of a pyramid scheme according to Wikipedia:
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
Essentially what it means is that people are only making money based off recruiting others into the same scheme they are in. The organisation shares amongst it’s members a portion of the newly recruited members joining fees. Basic definition of a pyramid scheme in bullet points:
- Pay money to join an company
- You only make money by recruiting others, and they make money recruiting others and so on. You do not make money from the sale of genuine and marketable products and services to the public
- Once you recruit someone, the company shares with you a portion of their sign up fee
There are some variations and different types of pyramid scheme models, but that is the basic idea. You can learn more about pyramid schemes here.
So Is ACN A Pyramid Scheme Based On That?
The answer is no, ACN is not a pyramid scheme according to the law.
There has been cases made against ACN but they have ultimately failed.
The reason is because you can sign up as an IBO to build your team OR just to re-sell their products and ALL commissions are based on the sale of genuine products. And in my opinion, their products are pretty good!
They provide telecommunication products through major providers such as Internet, mobile and home phone packages, electricity and other related products and services.
So if you signed up 5 people and only 3 of them where now switching over and paying for ACN telecommunication services, you’d only get commissions from those three people. There are performance based bonuses though, but you don’t get commissions directly from the sign up fee.
In other words, they operate inside the law and in an ethical manner.
Make a Decent Income Just Selling By Products? Not Likely
The real truth is that you are not going to make any money by selling the products… that’s just how it is.
If you think you are going to go out and sell people into buying your products alone and make money that way… you are very mistaken. You would be competing against major players in this arena that have multi million dollar marketing and sales budgets, not to mention experience.
The only way people buy into this is because it has an opportunity attached, and I can’t blame them either. The only way to make the kind of money you are really wanting is to recruit, plain and simple. Anyone telling you otherwise is either delusional or is not being straight with you. You must focus on building a large team if you want to make a solid income with this company.
Is ACN Really Worth It? Donald Trump Thinks So!
Yes we all know Mr. Trump endorses ACN but realistically that guy would promote anything as long as he got paid. He’s a businessman and a smart one at that. Not to say his endorsement isn’t well founded, but I wouldn’t just go off that if I were you.
To properly answer if ACN is worth it for you, I’ll now discuss what you get once you’re a member and then sum up my final thoughts about the company.
What Are ACN Products Like?
There’s nothing wrong with their products, they work well and sometimes can even be cheaper, but not always though. In my opinion this is a huge advantage with this company, their products are genuinely worth getting and aren’t overpriced. Not to mention, everyone needs this stuff!
That said, my experience with their customer service, along with a few people I know, was not the best. I found them to be hard to communicate with and sometimes even rude, but not the worst I’ve ever dealt with.
What Is The Training Like?
Like most network marketing companies, they spend a lot of time talking about motivational stuff. This can be very beneficial to you in any business, for sure. Your mindset is HUGELY important because any business owner needs to stay motivated to achieve success, but you also need the “nuts and bolts” training and lead generation strategies outside of warm market recruiting.
My coach was very dedicated and helpful too I might add. This does make a difference. I think it really does depend who you sign up under though as to the kind of coaching and mentoring you will receive. There is some useful free training you get access to as a member which was good.
If you do join, I recommend finding someone who will teach you how to generate leads outside of just family and friends and starting conversations with folks randomly. That is the biggest reason I left at the time. I had no idea how to get consistent leads.
The Compensation Plan
I could write an article itself on this but let’s just say as far as mlm’s go, it was pretty good. I think as long as the structure is fair and reasonable then that’s all that matters. Success with these things does not depend entirely on the compensation plan, it depends on you and your efforts.
I go into more detail on the business opportunity and compensation plan here.
The cost for me was $500 and a monthly fee of around $40 for the ‘personal business assistant’ which has some useful tools and training. I don’t think this is unreasonable to be honest.
Building Your Business
I was told to chase after my friends and family and their friends and other people I’ve never met to get into this business.
Every living person becomes a prospect, and I personally didn’t feel very comfortable with this. I quickly realised that I needed a plan to get some leads or I was going to fail at this. Friends and family were not an option for me since I had recently moved and I just didn’t feel right about it, after the first dozen or so knock backs it started getting very awkward.
I wanted to set up a real business plan and get training on the nuts and bolts of how to make this work and all I seemed to get is motivational speeches and “go after your friends and family” from everyone or start ‘fake’ conversations and lead them to this business. This may work for some people, fair enough.
But I was looking for something more than walking around talking to strangers or family.
I wanted a real plan.
What I’ve Since Learnt
As I said, there were some great points with ACN, but I decided to move on and learn how to build an online business. The internet has always been something I wanted make money with, so this is the path I chose.
I have since learnt a lot about internet marketing, and I know beyond any shadow of doubt that the only way to make something like this work is with quality and targeted leads coming into your business each and every day.
The big guns in ACN (or any network marketing company) have a steady flow of new leads coming in. Some use online methods, some use direct, offline methods. I personally like the online methods better. But that’s me.
So how do you get leads online for a network marketing business?
You need to learn the basics of Internet marketing and attract targeted leads using free traffic leveraging a proven system. Sure you can pay for leads, but that could cost you a fair bit and if you don’t have the cash I wouldn’t go that route.
ACN is absolutely not a pyramid scheme, and it’s not a scam either. It is a legitimate network marketing company with legitimate products, and products that actually are competitively priced.
I’m not saying that you will or won’t make money with ACN, but if you are going to pursue this business I strongly recommend setting up an online presence of some kind rather than relying on the warm market approach.
Like any business, ACN has it’s pros and cons so understanding these can help you make a more informed decision about joining. Whatever you decide, I hope this article has been helpful! Cheers
I spent years listening to the so called 'gurus' until I finally discovered a real way to generate a full-time income working from home. Click Here for the exact formula I followed.