| Like any other MLM business opportunity you're likely | | | | compensation plan. |
| to come across, ACN (American Communication | | | | The Compensation Plan |
| Network, Inc.) has it's fair share of good, bad, and | | | | ACN's compensation plan is one of the more |
| downright ugly. It's crucial that you're familiar with all | | | | complicated plans you'll come across in MLM. You can |
| aspects of whatever MLM business you decide to go | | | | look up the details on your own but the bottom line is |
| with so you know which ones are "doable" and will | | | | that it will take an enormous amount of work to get to |
| play to your strengths. | | | | the point where it pays off for the distributor in |
| At this point, it's important to distinguish between a | | | | residuals. This is not said to discourage you, but rather |
| legitimate MLM business opportunity and a fraud. For | | | | to warn you. Distributors can choose between 2 |
| that, let's start with a practical definition for an "MLM | | | | starting levels, either $99 or $499. To merely qualify for |
| business." Any MLM is essentially a retail system | | | | the meager 2%-8% commission on acquiring new |
| where people, most often called "distributors," build and | | | | customers (depending on what starting level you |
| manage their own sales force, or network. These | | | | choose --$99 or $499), you would have to maintain at |
| distributors are compensated based on the sales of | | | | least 6 "connected" long distance customers or 8 |
| the sales force under them in addition to their personal | | | | customers using any ACN service. Once you qualify, |
| sales. If you're trying to figure out if an alleged "MLM | | | | you receive 0.25% from levels 1 through 5 of your |
| business opportunity" is for real or not, watch out for | | | | downline, 1% on level six, and 6% on level 7. So to get |
| compensation plans that only pay you to recruit new | | | | to 6% commissions, you would have to build your own |
| people into the network but don't compensate you (no | | | | network to seven levels and make sure everyone on |
| matter how little) for sales at your level. | | | | that line is at top performance in order to meet |
| The Company | | | | additional requirements of the compensation plan. |
| Let's get back to ACN. The company started out in | | | | That's a lot of work with very little incentive to keep |
| 1992 as the marketing arm for LCI communications, a | | | | you going while you're building up your network! |
| long distance reseller. It was founded by Robert | | | | For example, just to qualify for the first earned level |
| Stevanovski, Greg Provenzano, Tony and Mike Cupisz | | | | - Executive Team Trainer - you must be a Team |
| with only 20 distributors. In it's first year, revenues | | | | Trainer with a minimum of 20 personal billing customers |
| reached $2 million and by 1998, it reported an annual | | | | and have directly sponsored and qualified 3 Team |
| revenue of $98.1 million. ACN operates in 20 countries | | | | Trainers by helping each of them acquire 6 |
| which include Australia, New Zealand as well as parts | | | | "connected" long distance customers or 8 customers |
| of Europe, Asia and North America. | | | | using any ACN service within the required time(4 |
| Another thing to take notice of is that Donald Trump | | | | weeks). Each earned level comes with its own set of |
| (you know from the hit series "The Apprentice" - his | | | | arcane qualifying criteria making the top earned |
| trademark phrase is "Your Fired!") actively endorses | | | | level-- Regional Vice President - almost as easy as |
| ACN. This endorsement gives the company serious | | | | hitting the lottery. |
| credibility as a legitimate MLM business opportunity. | | | | The Verdict |
| Think about it. Why would a billionaire risk ruining his | | | | I'm not against working hard towards achieving a |
| reputation partnering with an illegitimate company? He | | | | worthwhile goal but in the final analysis, ACN's |
| wouldn't, plain and simple. | | | | compensation plan is simply not designed for someone |
| The Product | | | | just starting out in an MLM business. This MLM |
| Among other products, ACN provides a digital phone | | | | opportunity is only for power recruiters who can |
| service, high speed Internet access, a wireless service, | | | | maintain the extremely high level of commitment |
| local and long distance calls, satellite TV, video phone, | | | | needed to see their efforts amount to something |
| and home security services. No red flags here. The | | | | substantial. I would not be surprised to see unusually |
| very fact that they've been in business since 1992 | | | | high attrition levels with this MLM business. Not that it |
| should also tell you that they're here to stay and not | | | | bothers ACN much since they'll still be making money |
| some fly-by-night MLM business. So far, so good. | | | | every month from every customer you've ever |
| It seems like the easiest thing to sell because you | | | | acquired, even if you decide ACN isn't the right fit for |
| won't have any inventory to buy or keep every single | | | | you and leave. One way to combat a high attrition rate |
| month; you won't need to approach the same | | | | and become the power recruiter necessary to really |
| customer every month to make a new sale once a | | | | build your ACN MLM business is through the biggest |
| deal is closed; and you won't have to ask people to | | | | marketplace on the planet - the Internet. This way you |
| spend money that isn't already part of their budget for | | | | really can market ACN all across the globe. |
| those monthly services. And then you get to the | | | | |