Is ACN scam? Let’s find out!
A couple of Saturdays ago, we were invited by a friend to accompany her in attending a certain “home-based business orientation”, saying that she wanted to “check it out ” and asked if we too are open to opportunities. Knowing that it’s going to be another GRQ network marketing business workshop, Neth (my wife) gave an excuse. Not to disappoint that friend, I went on and attended the orientation.
It turned out, it was ACN. Now, I’ve reasearched the ACN business opportunity a couple of years ago but it’s just not a good cut for me but I stayed, listened intently and asked questions.
As a self-employed entrepreneur, who’s bootstrapped a home-based business from scratch, I know that 90% of what was presented was BS.
The ACN Business System
- You get invited (to an undisclosed business opportunity workshop)
- You attend the orientation
- Fill out a registration form (and pay $499.00) to begin with. This does NOT include any product or service subscription whatsoever. It’s straight up membership fee.
- As a new business owner, you’re not allowed to say anything to your warm contacts. You just set them up for a business orientation meeting with a strict instruction of NOT mentioning the company name.
- You bring in two friends or relatives each time you go to a meeting and they’l do the presentation for you.
- After you bring two (if those two signed up) it’ll be their turn to bring two people to this opportunity meetings, so really, to build your business with them, you just have to bring two people in.
- Once you have 198 people on your left and right leg, you should be earning a whooping $11,000.00 a month in passive income.
Okay, it’s a good system that they do have in place. Lure people in with the business opportunity (money), tell people how easy it is and that someone else will do the work for them so these people in turn will switch their cable, internet, phone and even hydro services to ACN. In essence, they pirate customers from Cable and phone companies then reconnect people with these same product providers. The difference, people can earn money from the very services they already use.
Now, 75% of people worldwide like the idea of being in business for themselves to finally quit jobs so people will get lured in with the business opportunity. Only problem is you’ll have to buy the services yourself (after paying the joining fee) and if you only bought the basic (3) services, your income is limited, you’l have to upgrade (or add more services) to increase your potential income. In short, to make more money, you’ll have to spend more yourself, then motivate your team members to spend more in order for you to recoup your monthly expenses. It’s like having a monthly auto-ship just in this case, it’s monthly billing for al the services.
Making money from the services you already use is a good idea as long as those services isn’t overpriced. This seem to be the major flaw of the ACN business opportunity and why people think it’s a scam. You tell me to switch my services so I can make money off them, which otherwise I wouldn’t make with regular service providers but I will have to pay higher for those services which are dependent on the service providers that I already deal with without any middlemen.
To make money with it, I should share this opportunity with two of my contact who in turn will share it with two contacts of their own – @ $499.00 membership, how many two’s would you have to bring before one signs up? Remember, that $499 is just a joining fee, you’ll have to subscribe for a service where you’d pay a monthly fee to qualify for the basic compensation, upgrade your services if you want to make more money.
“It’s Easy, Just Bring Two”
Last time I checked, building a business isn’t as easy as recruiting people.
If someone tells you that you’re going to be able to quit your job simply by bringing two people to business opportunity presentation, run away from that person and never look back. That’s what I did, well, sort of!
A sustainable business isn’t that simple… It takes work to build a business, the problem with most business opportunities is that they make people believe that they’re going to be successful even without lifting a finger – again, starting a business requires work and if you really want to be successful in any business, whether tradition brick and mortar, network marketing or online business, you should start with the right mindset and accept the fact that you’ll be working twice as hard than when you’re simply working a 9-5 job.
For the purpose of this article, I didn’t want to judge the whole ACN business opportunity from the context of the “homebased business presentation” I’ve attended alone to help others who are seriously considering to build a business out of the ACN business system make a well-informed decision on whether or NOT ACN is the right business opportunity for them, so if you’re here because you’re searching for ACN reviews to confirm whether or not it’s a scam. I hope that this article will serve you well.
What Is ACN
ACN started as a telecommunications marketing company, kind of a distribution system for companies like Bell and Shaw. Nowadays, they’ve branched out to marketing other home services like home security and energy.
ACN, Inc. is a network marketing company (MLM) that distributes the services of their clients (service providers) through an army of independent sales agents, who themselves are subscribers of the services through ACN.
To sell, and build a big business, these ACN reps should recruit people to be part of their sales network who would be sold same services and pay monthly fees, from which the upline’s passive income would come from.
To become an “Independent Business Owner”, you should pay a membership fee of $499.00 plus tax, afterwhich you’ll have to subscribe or switch your existing services to them – TV and phone subscription (with ACN) in Canada costs $70.00 a month and your monthly fee will go upwards with additional services of course.
The ACN Business Model
The gist of the whole ACN business model can be summed up by the line on the image above. You get paid monthly residual income from the services your customers avail but there’s more to the ACN business model than that.
As mentioned and as you may already know, ACN is a network marketing company that contracts home services like phone, security, cable, internet, etc.
When you become part of the ACN network of independent business owners, you’ll be making money off your client’s subscription, what I don’t like about the approach though is that you’ll have to lure your warm market into the business opportunity to close them on the services.
If it isn’t known to you, the services you’ll avail through ACN is a bit overpriced which makes it a bit of a challenge if you try to sell the services on their own, which means people don’t really buy the products or the services from ACN because they need them as they can get the cheaper somewhere else – people actually buy the products because they’re lured in by the business opportunity.
ACN Marketing Plan
ACN thrives on warm markets. When you join in, you’ll have to invite your friends and relatives to attend a business orientation. You’re instructed not to mention the company name (shady) and you are not to talk about the opportunity ’till you’re promoted to trainor level. You’re job as a new associate is simply to bring in people into the business opportunity meetings – in essence, you don’t really sell the products or services the company distributes, you’re more of a business opportunity marketer or “recruiter”. When you successfully register people into the program which costs $499.00, the new associates will then have to switch their services, it’s not a requirement but of course, you can’t sell what you don’t use yourself as you’re the endorser. If you want to promote yourself and make more money, you’ll have to avail more services, which to me is a bit questionable – while it’s true that you have to spend money to make money, spending more by switching more of your home services may not be a lucrative business plan.
First off, ACN as a company (by law) isn’t a scam, there’s not an indication anywhere on their websites or sales collaterals that the income projected are guaranteed and they point in clearly on their compensation plan and promotional guidelines that commissions are only earned for each qualified customer purchase, overrides are bonus in a way if you look at it this way but it’s a different story when you attend one of their business opportunity presentations wherein the Get Rich Quick face comes into play.
When you join in as a member and part-with your hard earned $499.00 You will be tasked to set up appointments with people who will in turn part-with their hard-earned $499.00 to be part of the program, whom will avail of the home services marketed so you could build your passive income. People who wants to earn money from the system, of course wouldn’t have a problem paying higher fees for the services they already enjoy through the service providers as they’re going to make money anyway.
What I don’t like about the whole ACN business opportunity is that you’ll have to lure in people to continuously pay higher costs for the services they can get at a lower price so you can build your passive income. Think conscience!
Fore me, there are a lot of other ways to build a home based business without losing all your friends and relatives by telling them half-truth about a business opportunity like this.
A sustainable business should have products or services that sells even without the business opportunity component. Remember, entrepreneurship isn’t for everyone – building a business, takes time, some money and a whole lot of persistence.
To build a true home based business, you should change your mindset about business and avoid get rich quick business opportunities. It isn’t just about the money that you’re going to make but about the value that you’re going to provide to your target market. If you think ACN delivers that value, then this business opportunity may be right for you.