It is a half-billion-dollar worldwide business based near Charlotte, US, you may have never heard of it. It’s called ACN and it claims to be the world’s largest direct seller of phone services, but one regulator say it’s a Pyramid Scheme. You might know the building even if you don’t know the company, located just north of the major financial centre Charlotte North Carolina. ACN‘s world headquarters sits right on I 85 in Concord and even if you don’t know this place, you will know ACN pitchman Donald Trump. ACN cells Internet phone services by recruiting independent sales reps in 20 nations around the world but the montana securities commissioner has ordered ACN to stop doing business there calling it a pyramid scheme. Is ACN a Scam?
People look for a way to make money in these hard times, so it’s good to find a way to try to make some money in these hard times. In the case of a Pyramid Scheme, or MLM Scam, ninety-nine point nine percent of people aren’t going to make anything. ACN says the vast bulk of its revenue comes from selling phones and phone service to customers. Montana Security Commissioner disagrees, she says most of ACN‘s revenue comes from recruiting other sales reps who pay 500 bucks a head for the right to sell. About 300 montanans participated in 2009 and they spent over a quarter million dollars in their hard-earned money to participate. The company paid out about less than nine hundred dollars. ACN says it’s got something to sell. A desktop video phone retails for 130 dollars. Webcams comes standard on many laptops these days, not to mention iPhones new face time.
The i-team obtained consumer complaints from the North Carolina Attorney General’s Office, there are 32 of them, but in only eighteen of these cases did ACN offer refunds. Politicians welcomed it with open arms offering more than a half million dollars in tax breaks and the company markets itself as a good corporate citizen. ACN has pledged two million dollars to the new Charlotte Ronald McDonald House, more than any other corporation.
But some ACN sales leaders come with baggage. Brothers Patrick & Michael Mazer are top sellers in the so-called circle of Champions. Pictured with private jets and luxury cars, but their online bios leave out one thing. Both brothers pled guilty in federal court in 2003, to felonies connected to a Dutch ecstasy ring, drug smuggling hundreds of thousands of pills and laundering the money all while they were ACN sales Reps. Patrick got probation, Michael Maser prison time. Now they run their own company The Wealth Institute. So which is it, is ACN a good corporate citizen or as montana says, a pyramid scheme.
The answer is it about who you believe, it’s about cold hard numbers and here’s the thing, some of these numbers are not available to us the company is private, and it does not reveal how many sales reps lose money and quit the company. No doubt a handful of sales reps like the Mazer brothers do very very well, but montana records show in 2008 of ninety-one sales reps there, none of them made more than seven hundred dollars. If you think ACN isn’t a Scam, then can you name someone you know of, who’s joined, but had not made any money, and lost $500. Chances are, you don’t. It’s not that the people behind the company are frauds, or that the company isn’t paying. It’s that the ACN business model makes it all look like the ACN Scam, and people start wondering, Is ACN a Scam. MLM is a very easy way for someone with a cheap product to make money with. Think about it, they have a cheap product that most people aren’t interested in anyway.
For example – You have joined ACN in order to make some money, of course. You are charged the $500 bill in order to have rights to sell their products. Remember, no one is interested in buying the products, because in this day and age, people already have internet, people have a mobile phone and have cameras etc. So, what happens next?
Well, it turns out someone was interested in their product?
The product is the actual business model, they make their money by recruiting people, who end up failing, as no one wants to buy their products. Which is why they came up with the business model in the first place. Think about it. Every single MLM – Multi Level Marketing Program will have a product or service that seems odd, doesn’t sell well, or has a very competitive market. This is why they target individuals who want to make quick easy cash, as they are the ones who will pretty much pay anything to become their own boss. They are the ones who are usually inexperienced. This is why I call ACN a SCAM. They don’t do any advertising, and they don’t market themselves as a retailer of telecommunications wordwide. The people do it for them, while also paying $500? This just seems fishy when you start to really think about it. I will call ACN a scam whether you agree with it or not.