How to make money smart: November 2010

You may read in various blogs and opinions that ACN and other direct selling companies are a scam or illegal pyramid scheme. Those statements are completely untrue and inaccurate. The people posting this content on websites simply do not understand how network marketing works. It is time to debunk this myth and explain why ACN is not a scam and not a pyramid scheme.
First, ACN has been in business since 1993 and operates in 21 countries. The company is endorsed for several years by Donald Trump (he speaks at ACN events) and is a member of the Direct Selling Association. It has been profiled in Success magazine, Success From Home magazine, Fortune magazine, Direct Selling News and many other publications. Trump? DSA? They must be in on the scam. ACN provides services in cooperation with companies such as DIRECTV, DISH Network, AT&T, Verizon, ADT, TELUS and others. Why would they all do business with an illegal pyramid? Bizarre, indeed.
I have found posts and replies on the web from many angry and opinionated people. Some of the opinions come from those who did not have a successful experience with ACN or other network marketing companies. But surprisingly, a large percentage of the strong opinions are from those who were merely approached by a representative about joining the business, but have no further experience in the business.
Some of the prospects go to a home meeting to hear about the business opportunity, hopefully from an expert who is successful with ACN. The purpose of the meeting is to recruit more ACN representatives into their downline of the business. The cost for a new person to start the independent distributorship is $499. This is the next red flag for the guarded person who believes someone is trying to take advantage of them. They ask themselves, “Why would I have to pay to work???” The potential recruit becomes suspicious, searches for negative content on Google and then miraculously is saved from the evil scam thanks to their timely due diligence. Now this person, who has no experience whatsoever with the company, deems himself an expert and sets out to save others from the scam by posting their uninformed opinion on the web.
Why is there a start up fee?
It is clear that many people have no basic understanding of how a direct selling/network marketing company works. Do not be afraid of a start up fee. It is not like getting a job at a retail store in the mall. You are basically starting your own independent business. The start up fee helps cover the fact that ACN connects your customers, provides them with 24/7 customer service, calculates and pays your residual commissions and bonuses, takes care of monthly billing, develops new products and services for you to market, develops all marketing materials and tools, provides representative support, holds quarterly training events for you and your new prospects, and the list goes on and on.
Is ACN a Pyramid?
No. That is the simple answer. But let’s explain why. A pyramid business scheme pays members to recruit more members and eventually everyone runs out of prospects and the whole thing crumbles as there is no more money to be made.
ACN is a very simple company to understand. It offers products and services, such as digital phone service with video phones, wireless phone service, internet, local/long distance, satellite TV and home security service. Therefore, ACN is interested in getting customers on those services in order to generate revenue. Sounds like any other company doesn’t it? It has products and services to offer and wants customers to pay for them.
Here is the tricky part that is not clear to everyone. The marketing method used to acquire new customers is direct selling, also known as network marketing. It is just an alternate way to get customers for the company instead of paying for advertising, television commercials, direct mailings and other familiar marketing approaches. An independent representative markets the ACN products to their friends, family and business associates and they get paid a percentage of the revenue made by the company on those customers. The representative gets paid bonuses for bringing in recruits (customer getters) onto their team ONLY if the new recruit acquires a certain number of customers for the company. No one gets paid for just showing up and joining. That generates no residual revenue for the company, the recruiting representative or the new recruit. Only when customers are acquired for the company does any representative get paid, and that is clearly not a pyramid.
Another complaint is that the people at the top of the “pyramid” make more money in network marketing. Who made more money in every job you ever had? CEOs, vice presidents, directors? Yes, the people at the top of the company make a lot more money. U.S. banks must all be illegal pyramids because I hear about these multi-million dollar bonuses for CEOs and the tellers are only making 40K a year. Therefore, by this logic Bank of America and Wells Fargo must be illegal pyramids.
When is Success Guaranteed?
Because you have not risen to the top levels of recognition and compensation at your job does not mean your company is a scam. Many people have probably been fired from your company. Others quit and move on to other opportunities that are more fitting for them. But in the network marketing industry when people fail to be successful, it is because the company is a scam?
Huge success in network marketing, like most other ventures, is statistically unlikely. That does not make it a scam. According to the ncaa.org, the likelihood of a high school football player getting drafted to the NFL is 0.008% (eight out of 10,000). The NFL must be a scam? One out of 100,000 aspiring singers win American Idol each year. Scam? Not fair? Maybe they aren’t very good at singing.
No one makes money at ACN. It is a scam…. I have read that in posts from complainers on the internet. Have they seen Success From Home Magazine? That magazine profiles representatives who are making obscene amounts of money. Saying it can’t be done is simply not logical when you can see the results of those who have succeeded.
Signing an application and plopping down $499 entitles you to exactly $0 in earnings. Zero. Rising up through the ranks and building your own successful business takes a ton of work and sacrifice.

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