Statistics: Does ACN MLM have a chance?

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Statistics: Does ACN MLM have a chance?

ACN is a telecommunications direct selling and MLM company.  Evidently, the “wireless” and “click-of-a-button” lifestyle makes ACN’s products and services in demand.

Surfing the net for MLM companies like ACN and business opportunities is not enough research to help you arrive at an informed decision.  More often than not, you have to dig deeper and a little outside the box to see a bigger picture.

Trend

US Population Over 310 million as of 2010
Internet Users(US) Over 310 million as of 2010
Internet Users (US) over 239 million (77.3%)
Internet Users (Europe) over 400 million (77.3%)
Mobile Cellular Subscriptions)(2009 – 2010) more than 11% growth (77.3%)
Fixed Telephone Lines(2009 – 2010) 2.3% decrease (77.3%)
Mobile Broadband Subscriptions(2009 – 2010) 24.3% growth (77.3%)
Fixed Broadband Subscriptions(2009 – 2010) 13.75% (77.3%)

*Asia-Pacific has more than half the world’s mobile subscriptions.

USA, Europe and Asia-Pacific have high numbers for internet users and mobile subscriptions.  These locations are also where ACN can be found, providing internet service and cellular plans and products.  That may be a good move for ACN because it means they’re operating in areas where there is already a demand for the services they offer.  On the other hand, these places may just be too saturated for another company.

There has been a combined 38.05% growth for mobile and fixed broadband subscription.  These numbers are favorable, especially for telecom companies like ACN.  Particularly for ACN representatives, the grown rates in internet and mobile subscriptions mean there is a promising opportunity in terms of sales.

However, ACN still offers fixed telephone lines, which has had a 2.3% decrease form 2009 to 2010.  Although there may have been a decrease in demand for fixed landlines, this will not abruptly go down to zero.  The numbers only mean that selling a service for a fixed telephone line may not be very easy for ACN representatives.

Competition

Number of Telecom Companies           almost 300
(US)

Number of DSA Members which          11
provide telecom, internet,
utilities, and home security

With almost 300 telecommunications provider in the US alone, needless to say, the competition is tough.  More competitors mean companies have the tendency to lower their plans, products, and services.  In an MLM company like ACN, part of their compensation plan relies on the usage of the customer.  This means that customers may opt for the cheapest plan, giving you lower commissions; or simply choose a different provider.

Fortunately, DSA has only 11 companies, ACN included, that provide telecommunications, internet, and utilities services.  Prospective MLM representatives would then only have to choose from 11 legit MLM companies.

Demand for Service

Monthly Global Google Searches                  110,000
for “mobile plan”

Monthly Global Google Searches                  49,500
for “high speed internet provider”

Monthly Global Google Searches                  550,000
for “ACN

Out of the more than 239 million internet users in the US, there are only a total of 709,500 searches for “mobile plan”, “high speed internet provider”, and “ACN”.  This does not necessarily mean that the demand for such services is low.  As you will see in the “Possible Recruits” table below, 78.1% of sales are generated from face-to-face selling.  It may sound backward, but in the midst of all the hi-tech systems, probably nothing beats “personal touch”.

Possible Recruits

Monthly Global Google Searches                  550,000
for “business opportunity”

Monthly Global Google Searches                  550,000
for “ACN”

Type of Direct Sellers:
Non-Purchasers 30.9%
Personal Users 25.9%
Product Retailers 23.2%
Business Builders 20.1% 
Location of Sales
(percent of sales in dollars)
Face-to-face 78.1%
Remote Selling 12.1%
Remote Selling by Companies 6%
Auto Shipment 3.8% 
Average Monthly Bill for Wireless
Service 
$48.16

Half a million internet users are looking for business opportunities.  For ACN representatives, this is good news.  Considering that those numbers only came from internet users, it means that there are more possible recruits.  More importantly, most direct sellers are non-purchasers, meaning, they are generating income not from their own usage, but from actual customers.

However, for a company like ACN whose compensation plan is about getting a 2%-10% commission from the total bill of customers, an average monthly bill for wireless service of $48.16 may be too low.  For ACN representatives, this means a lot of work to acquire bigger earnings.

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