What is ACN about? Could it be a successful business for YOU?

what is ACN about - product range

If you are looking to find an honest opinion of ACN and in the same time find out more on what is ACN about, then you have come to the right place.

In this ACN Review, I will have a look at what is ACN and whether it is a legitimate business opportunity or a big old scam! I am going to dig deep to get some answers for you. Just a note, you are NOT looking at a review written by a member of ACN, so this is completely unbiased.

 

Summary

Product Name: ACN formerly known as American Communications Network

Website URL: www.acninc.com

Price: starting price of $500

My Rating: 1 out of 5

 

So what is ACN about?

ACN is one of the largest telecommunication, energy and essential services company for both home and business. They have been around since 1993. That’s not that long to have achieved such success wouldn’t you say? Perhaps you use their services, know someone who does, or maybe you have been approached to join the business?

Starting off the the US in 1993, they changed their name from American Communication Network to ACN to reflect the fact that they were taking the business international. Sounds big huh? I bet you fancy a piece of that action. But hold your horses, there is more.

By way of asking the question of what is ACN, here are some of the products they sell.

  • Cell Phone Plans
  • Local Long Distance Calling
  • Internet Plans
  • Energy (Natural Gas etc.)
  • Television Channel Plans

ACN-producst

ACN is an MLM (mulit-Level Marketing Company) which means that you make money in two ways: You can make money using both these methods or just one.

  1. Selling the products to consumers
  2. Inviting people to join your team to sell the products and making a commission from anything they sell. This is all part of a complicated 7 level compensation plan which I will go into a bit later in the section about making money with ACN

 

Who is ACN for?

They say it is for anyone.

ACN Review

But I would disagree and this is the problem.

ACN relies, like many MLM companies, rely on recruiting people into your ‘team’ to earn money. This is absolutely the hardest part of MLM. You have to be a certain type of person who is willing to find friends and family and try to recruit them into your business. You need to be pretty thick skinned to take rejection, and you need to be, lets be honest, a hard seller. And furthermore, you need to be ok about losing some friends along the way.

If you are this ‘right person’ then you might do well at ACN. If you are a natural born salesman then maybe this is for you. But be prepared for your friends to start avoiding you!

 

Want a home business where you don’t have to sell to family and friends?

 

How do you make money with ACN?

As I mentioned earlier, there are two ways, selling the product or building a ‘team’.

No one really gets into it to sell the products alone. It is all about the team building, this is where they say the real money is. I think its important to note that in order for a MLM business to be legal, the product needs to be good enough to make money from on their own.. otherwise it is known as a pyramid scheme.

Well, guess what, the products aren’t great. If you don’t believe me have a look at these many reviews. Admittedly these reviews aren’t just about the products but about being recruited for the business too. So this business is borderline legal.

So lets say that the only way to make REAL money is recruiting people into your team. People you recruit are otherwise known as your downline and you make money out of every sale they make. As you move up the ladder, by collecting points and recruiting more and more people to your team you rise up the ranks and your percentage of each persons sales becomes higher.

It is a very complicated compensation plan with lots of different levels.

They have a number of levels from a team trainer to an executive team trainer,  to executive team level to senior vice president.  I won’t attempt to explain it in detail as reading this would send you to sleep, so just have a look at the video which should give you more detail.

Now this is the unique part, and this is where I feel the business is dangerously borderline.

ACN strictly prohibits any of its members from taking part in cold marketing in order to gain new customers.

What they mean by cold marketing is contacting people with whom they have had no prior contact. This means that if you join this business, the ONLY people you can get into the business are people you know or have some form of connection with. And they qualify this. When someone signs up to the business and if they don’t personally know you and verify HOW they know you, they you do not get the commission, even if YOU brought them into the company.  You can check this in their policies. Small print huh?

This is madness to me- Who has endless friends? This means your ability to succeed is limited to your social circle.

The latest stats stand at the moment, that less than 1 in 200 people will get back their original investment in ACN. Have a look at this article from Ehow

 

How much does it cost to join ACN?

There are several layers of costs. Shock – (excuse my sarcasm). They start you off by claiming you can get it for $500. Let’s have a closer look at that and break it down.

Here are the levels

Frequency per yr
Cost
Yearly cost
Team trainer Fee 1 $499.99 $499.99
Annual Renewal Fee 1 $149.99 $149.99
Monthly Business Assistant 12 $39.99 $478.99
Weekly meeting 52 $7.50 $390.00
Training Events 2 $350.00 $700.00
    TOTAL COST $2,218.97

So you can see, the cost isn’t really $500. You are looking at $2,218 for the first year! When this happens, It always sets off alarm bells for me. I hate hidden costs, I like to know what you pay upfront

 

See a home business for $47 a month, ALL IN, no hidden charges

and which you can try out for FREE

 

A note on ACN Your Business Assistant

ACN your business assistantThis is a hidden charge which ACN say is optional, but that you NEED to succeed. Not much option then. Here is their quote about it, just another feature of their ‘hidden charges’

“Your Business Assistant gives you all the tools that you need to plug in every single day, month after month. Every single person out there who is serious about winning needs to subscribe to this package, so that we can pour all the positive things into your life that are necessary in order for you to win in ACN.” – ACN President and Co-Founder Greg Provenzano

 

 

The benefits of ACN

  • ACN has been going since 1993, so it has been around for a little while. They must be doing something right?
  • There is no disputing that some people have made money with them
  • They have a large portfolio of products
  • But still stay within a niche and don’t branch out to other ‘add ons’

 

The drawbacks

  • The telecommunications market is completely saturated and if you already have a supplier it is very difficult to get people to move suppliers – hence the HARD sell required
  • Limited no of leads – if you are recruiting family and friends, and this is your ONLY option, then this makes your list of available leads finite.
  • It is quite hard to move up the compensation plan ladder, with 7 levels, the majority of the profit is allocated to those on level 5 or above so the newbies find it hard to get in and hard to stay in. This means that those up the ladder are creaming off the profits from the newbies who eventually give up
  • The products themselves are not that interesting to sell, unless you are into energy and telecommunications
  • ACN advocate high pressure sales techniques to push sales. This isn’t for everyone.
  • The products aren’t of great quality and the price point is not very competitive, making the sell even harder.

 

My Verdict

is ACN a scam

If you have read any of my other articles on MLM companies you can tell that I am not a massive fan. I don’t know about you but I don’t have an unlimited amount of friends that I am willing to lose. And with their restrictive policy on only targeting your friends, where do you go when you have tried to recruit them all. You try again. This won’t make you very popular. Urgh sounds awful and uncomfortable.

I prefer more of a pull sales technique where people come to you and are actively seeking your product than the other way around. Here is a great example of this type of business

ACN haven’t got a great reputation from all sides. From the quality of the product to people wanting to join the business. The internet is riddled with claims of people claiming their friends have FORCED them into the program. Tough sales banter is the order of the day, so if that’s not for you, then don’t go there.

It is well known that many ACN representatives don’t fully disclose their income earning potential. They also limit new business owners to selling products that aren’t priced competitively. How can you sell something which isn’t fantastic value. This means that those in the higher levels benefit most from the sign up fee of $500, making those at the top richer, and those newbies poorer. I hate this model. It’s totally unfair. There are many more businesses out there where new recruits pay exactly the same as the old hands

If you have any experience of ACN, I would love to hear from you!

 

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13 thoughts on “What is ACN about? Could it be a successful business for YOU?

  1. Brok says:

    Hey Ruth great review of ACN and holy crap that’s a huge upfront cost to get started.

    I have to agree that these systems like ACN are not for me and not something to recommend.

    There’s so many hoops to jump through and it’s just members at the top making tons of money and everyone else putting in a ton of work just to break even!

    Thanks for the ACN review!

    Brok

    • Ruth says:

      I think it does feel like this and this is why 95% of people drop out of MLM schemes. It’s a real battle just to break even. Some are better than others, but not this one in my opinion!

  2. Kyle says:

    I’ve never bought into a MLM business, but I have had some friend who’ve tried to sell me on them. Some are better than others, but overall I’m not a fan.

    I’ve never actually heard of ACN before, it sounds kind of like the “Wor(l)d” company that has been going around lately.

    • Ruth says:

      Ha yes it indeed. They are really big in the states, and they are becoming more international. So I guess someone is doing well with them!

  3. Krista says:

    This was great review! I personally became a part of Wealthy Affiliate through a review I was reading about Amway. I’ve always been super skeptical about MLM’s just because there are so many of them that are scams compared to ones that are actually legite! Its so scary when your investing your own hard earned money to start your own business when there’s no guarantee you’ll make it. Your post is definitely going to help a lot of people steer clear of the scams out there and know where the real opportunities are!
    Great success to you my friend!
    -Krista

    • Ruth says:

      Thanks Krista!

      My parents got into Amway some years back and needless to say threw themselves into it with no success, and had to pull out. I felt sorry for them because they are such hard workers and if anyone could have made it, it was them. Since then, MLMs are a true no go for me!

  4. Lynne says:

    Hi Ruth,

    I just loved your review, especially your opinion on MLM. You have explained it so beautifully where you said be prepared to lose some friends and have people avoid you.

    I am not fond of MLM at all and when you say that the products are not great and have lots of negative reviews it really makes me think it is a pyramid scheme!

    Geez the way they make you pay more than the $500 they advertised is not right.

    Thanks for letting us know about this, I will add it to my list of places to avoid!

    What would be your best recommendation for starting a business online?

    • Ruth says:

      Thanks for your comments Lynne. This is definitely something to watch out for, when you get drawn in by a small amount, although $500 is nothing to be sniffed at, and then you are faced with countless upsells. Its very draining! I recommend Wealthy Affiliate. Have a look at my review as this is by far the best training course and viable home business out there

  5. James says:

    Wow. That’s a lot of money to start in this business. Thanks for the review. I like it when people give honest feedback like this.

    I saw that you also gave a review on Wealthy Affiliate. I agree that this is the best option when trying to start an online business.

    Everyone there is so helpful and wants you to succeed.

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