ACN MLM Pros & Cons -To sign up or not to sign up?

ACN MLM
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ACN MLM Pros & Cons -To sign up or not to sign up?

ACN is a telecommunications company operating in more than 20 countries.  Founded by Greg Provenzano, Tony Cupisz, Mike Cupisz, and Robert Stevanovski in 1993, ACN is one of the few Direct Selling Association members. ACN promotes and sells their products and services through direct selling and multi-level marketing.

How much does it cost to join ACN MLM?

To be an ACN representative, you can sign up in two ways:  as an ACN Customer Representative or as a Team Trainer.  Customer Representatives have to pay a one-time training and application fee of $99.  They do not, however, need to recruit down lines.  Team Trainers have a one-time training and application fee of $499.  Although pricey, they are eligible to receive more commissions and bonuses than Customer Representatives.

To Sign Up or Not To Sign Up

Making a decision especially on whether to join an MLM company is tough.  Let’s list down some pros and cons of ACN based on their information from their website, third party reports, and some figures:

Expensive startup cost

The very first thing a prospect asks about an MLM company is how much he or she would have to invest.  $99 and $499 ACN start up cost may be expensive for most people, considering that most MLM prospects are looking for an opportunity that doesn’t cost much, but would pay well.

Not much to earn as a customer representative

Obviously, most people who join an MLM companies are there for monetary reasons.  If you only sign up as an ACN Customer Representative, you only receive a Monthly Residual Income.  If you have 20 customers signed up for the $50.99 ACN Advantage Unlimited, you only get a monthly residual income of $20.40. According to statistics, the average monthly wireless bills in the US amount to $48.16 in 2009.

Recruitment

Once an MLM representative mentions “recruit” or “sponsor” or “enroll” during an orientation, this usually raises a red flag for the prospects.  ACN is not different from other MLMs in terms of recruitment; but different from pyramid scams, ACN emphasizes acquisition of customers and subscribers.

Too many telecom companies

To date, there are almost 300 telecommunications companies in the US.  That’s excluding internet providers, home security companies, and other products and services that ACN also offers.  The competition may be tough and the market may simply be saturated.

On a positive note, this means that ACN is providing products that people already use everyday, enough that they have already become necessities.  As they claim it, ACN MLM doesn’t change people’s buying habits.

In the Direct Sellers Association, though, there are only 11 DSA members who market telecom, internet, utilities, and home security through MLM. For representatives aiming for top positions, this is good news in terms of recruitment.

No monthly quota

In the compensation plan of ACN, it states that representatives have no monthly quota.  Although technically true, if you want to make more money, there are qualifications you need to meet to get bonuses and more commissions.

DSA member

The Direct Sellers Association sees to it that its members practice “highest level of business ethics”.  Because ACN is a DSA member, the question of whether ACN is a scam or not can be somehow put to rest.  In fact, ACN has a link to the DSA Education Foundation website to further provide information to visitors about direct selling, MLM, and pyramid scams.

Hopeful statistics

Internet usage around the world has increased by 399.3% from 2000 to 2009 according to Internet World Stats.  The landline phone revenue in the US is $301.3 billion in 2009.  The number of Satellite TV subscribers in the US is 33 million out of the more than 300 million people in the US.  These numbers tell you that the demand for products and services that ACN offers will only increase in the next few years.  Is that great news or what?

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