Unveiling the Truth: Is ACN a Pyramid Scheme?

ACN, a multi-level marketing company established in 1993, has sparked much debate over the years. With its promise of financial freedom through selling essential services like telecommunications and energy, many are intrigued by the opportunity. However, the company’s reliance on recruitment has led some to label it a pyramid scheme.

In this comprehensive review, we’ll delve into the structure, compensation plan, and real user experiences of ACN to uncover the truth behind the controversy and help you decide if it’s the right fit for you.

Disclaimer: This ACN MLM review has been thoroughly researched with information and testimonials that are available online to anyone in the public.  Any conclusions drawn from that information are my own opinions.

ACN MLM Review Overview

Product Name: ACN or American Communications Network

Owner: Greg Provenzano, Robert Stevanovski, Tony Cupisz, and Mike Cupisz in 1993

Product Type: Telecommunications MLM company

Price: $299 application fee, plus $25 business support monthly fee

Best For: Marketers Specializing in the Telecommunications Industry

acn-mlm-website

Pros

  • Long Standing Company
  • Sells Legit Services
  • Positive Reviews

Cons

  • High Startup Costs
  • “Sell or Die” Concept
  • Seems Like a Pyramid Scheme

Quick Summary

ACN is a long-standing multi-level marketing company that offers essential services such as telecommunications and energy through a network of Independent Business Owners (IBOs).

Despite its legitimate offerings and extensive history, ACN’s business model, which heavily relies on recruitment, often draws comparisons to pyramid schemes. While the potential for earning exists, it primarily benefits those who excel in both sales and recruiting, which can be challenging for the average individual.

Consequently, many find it difficult to achieve substantial income through ACN, making it a contentious opportunity for prospective entrepreneurs.

Rating
2/5

Recommended? ACN is a legitimate multi-level marketing company that works particularly well for marketers specializing in the telecommunications industry

Table of Contents

Is ACN a Scam or a Legit MLM?

ACN is a legitimate venture that has been around for years and offers reputable products and services. While there have been class action lawsuits and complaints about poor customer service, it’s important to note that having legitimate solutions doesn’t absolve them from any wrongdoing.

In my ACN MLM review, I will discuss these issues further. It’s understandable that due to these problems and the need for recruiting to sustain revenue, many people may perceive ACN as a scam. However, it’s important to clarify that ACN is not a scam and not a pyramid scheme.

That said, keep on reading my ACN review to learn more about the company, its structure, business opportunity, compensation plan, pros and cons, and more!

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What Is ACN?

ACN (American Communications Network) is a North American-based multi-level marketing (MLM) business founded by four entrepreneurs: Greg Provenzano, Robert Stevanovski, Tony Cupisz, and Mike Cupisz in 1993. The company is headquartered in Concord, North Carolina, United States, and operates in 27 countries as of 2019.

acn-mlm-website

ACN provides a range of telecommunications, energy, and other essential services through a network of independent sellers, known as Independent Business Owners (IBOs). These IBOs have the opportunity to earn commissions not only from selling ACN’s products and services but also from recruiting new members into their sales network.

Here’s a deeper look into ACN’s offerings and structure:

    • Telecommunications Services: ACN offers a variety of telecom services including wireless plans, home phone service, and high-speed internet. Their telecom solutions are designed to meet the needs of both residential and business customers.

    • Energy Solutions: In select markets, ACN provides energy services such as electricity and natural gas. These services offer competitive rates and aim to help consumers manage their energy costs effectively.

    • Other Services: ACN also ventures into other areas like security systems, identity theft protection, and payment processing services for businesses. This diversification allows IBOs to cater to a wide range of customer needs.

    • Business Model: The core of ACN’s business model is direct selling and network marketing. Independent Business Owners are encouraged to build their own customer base and also expand their network by recruiting new IBOs. This dual approach to revenue generation is common in MLM structures but often leads to misconceptions about the company being a pyramid scheme.

    • Global Presence: With a workforce of over 1,500 employees worldwide, ACN has established a significant presence in the MLM industry. The company’s operations in 27 countries enable it to leverage global market opportunities and cater to diverse consumer needs.

    Understanding ACN’s structure and business model is crucial in assessing its legitimacy. While MLMs often face skepticism, it’s important to differentiate between pyramid schemes and legal MLM businesses like ACN. Pyramid schemes rely solely on recruitment without offering real products or services, whereas ACN provides tangible solutions that have value in the marketplace.

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    Is ACN a Pyramid Scheme?

    ACN is not a pyramid scheme. They offer legitimate services such as gas, electrical energy, internet, phone, and more. ACN Entrepreneurs (Independent Business Owners or IBOs) have the opportunity to earn money by marketing these services without recruiting anyone. However, it is unlikely that solely selling services will lead to significant earnings. This is why recruiting is encouraged, which is why people associate MLMs like ACN with pyramid schemes.

    To fully understand this distinction, let’s explore what a pyramid scheme is and determine the truth.

    What Is a Pyramid Scheme?

    A pyramid scheme is a fraudulent business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales. In these schemes, the primary revenue source is the continuous recruitment of new members, rather than the sale of actual products or services.

    You can check out a short video below to learn more…

    Why Do Many People Believe That ACN is a Pyramid Scheme?

    It’s because individuals can earn money by recruiting others into the multi-level marketing plan. This recruitment-centric approach is the main reason why some people refer to MLMs like ACN as pyramid schemes in disguise. However, it’s important to note the significant differences between ACN’s business model and a true pyramid scheme.

    Is ACN a Pyramid Scheme in Disguise?

    I want to reiterate that ACN is not a scam or pyramid scheme. The company offers commissions based on your sales and those of others you sign up. There are no dubious activities involving straight repayments for recruitment. Simply put, ACN sells real products for consumers to enjoy.

    Here’s a breakdown to further clarify:

      • Real Products and Services: ACN provides tangible services that customers can use and benefit from, such as telecommunications, energy, and other essential services. This is a key differentiator from pyramid schemes, which typically offer no real product or a token product with no intrinsic value.

      • Earnings Through Sales: While recruitment is a component of ACN’s business model, IBOs can earn commissions by directly selling ACN’s products and services. This means that it is possible to make money without recruiting others, which is not the case in a pyramid scheme.

      • Legitimate Business Operations: ACN operates in multiple countries with regulatory compliance. This level of scrutiny and regulation is not characteristic of pyramid schemes, which often operate in legal gray areas or completely outside the law.

      • Transparent Compensation Plan: ACN’s compensation plan clearly outlines how IBOs can earn commissions. The plan is structured to reward sales of products and services, ensuring that the primary focus remains on legitimate business activities rather than mere recruitment.

      Understanding these points can help dispel the myths and misunderstandings surrounding ACN. While the emphasis on recruitment can blur the lines for some, it’s essential to recognize the genuine business opportunities and products that ACN provides.

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      What Products Does ACN Sell?

      ACN offers a diverse range of products and services designed to meet various consumer needs. Here’s a closer look at what they provide:

      acn-mlm-services

      Home Phone Services

      For just $24.99 per month, ACN’s home phone service offers unlimited connectivity to over 80 landline and mobile locations. This service is ideal for those who need reliable and affordable home phone solutions.

      High-Speed Internet

      ACN provides high-speed internet nationwide through partnerships with major providers like AT&T, Century Web Link, Frontier, and Verizon. The pricing for this service ranges from $19.99 to $100 per month, depending on the provider and plan you choose. Whether you need basic internet for browsing or high-speed connections for streaming and gaming, ACN has options to fit your needs.

      Wireless Solutions (Flash Wireless)

      This cordless service is essentially a phone plan that can either be contractual or prepaid. ACN offers three different pricing plans:

        • Purple Plan: Ranges from $23 to $64

        • Green Plan: Ranges from $23 to $79

        • Yellow Plan: Ranges from $23 to $69

        Each plan offers varying levels of data and service to match different usage needs and budgets.

        Xoom Energy

        ACN offers natural gas and electricity solutions with two different plans: SureLock and SimpleFlex.

          • SureLock Plan: Your price is locked in for the duration of your service, providing stability and predictability in your energy costs.

          • SimpleFlex Plan: Your monthly price may vary, but you have the flexibility to cancel or modify your service at any time. This plan offers more adaptability based on market conditions.

          Television Services

          ACN provides bundled TV services starting at $39.99, including packages from DirecTV. These bundles are designed to offer a range of viewing options, from basic channels to premium content, catering to different entertainment preferences.

          Home Protection & Automation

          For $50, you can get ACN’s home protection and automation equipment with no activation charges. This service includes home security solutions and automation features to enhance safety and convenience in your home.

          Anovia Payment Processing

          Anovia is ACN’s payment processing service, designed to streamline various types of transactions. This includes credit and debit card processing, gift cards, e-checks, and online shopping. It’s a comprehensive solution for businesses looking to manage their payment systems efficiently.

          If you’re interested in learning more about how this MLM program operates and whether it’s the right fit for you, continue reading my ACN review…

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          How Does ACN MLM Work?

          ACN serves as a connection between individuals and energy and telecommunication carriers. Instead of investing in traditional advertising and marketing, ACN relies on individuals to promote its services.

          These individuals, known as Independent Business Owners (IBOs), have the chance to earn commissions from their own sales and the sales of their recruits. This structure is often why ACN and similar companies are labeled as pyramid schemes.

          Additionally, it has come to light that Trump and his sons have faced recent allegations of endorsing ACN, which has added to the controversy.

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          How To Join ACN MLM?

          To become an ACN business owner, you need to complete their Business Owner Agreement form and submit it along with a $299 application fee. Additionally, there is a monthly Business Support Fee of $25.

          acn-mlm-business-opportunity

          By paying these fees, you gain access to a dedicated website where you can promote and sell ACN’s services and products. However, it’s important to note that acquiring this access does not make you an employee of ACN. You are essentially an independent business owner, functioning as a salesperson. This ensures you have the flexibility to work at your convenience and in your preferred manner.

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          How To Make Money With ACN?

          There are two main ways to make money with ACN MLM:

              1. Selling Products: You can earn by selling ACN products directly to customers. This includes their range of telecommunication, energy, and other services.
              2. Recruiting Members: Building your downline by bringing in more participants can also generate income. The more people you have in your downline, the more money you can make, as you will receive commissions from their sales. While selling products alone is an option, focusing on recruiting and growing your downline tends to be more lucrative in ACN MLM.

            Do you understand why multi-level marketing companies such as ACN are often referred to as pyramid schemes? It’s primarily because of the emphasis on recruitment and the tiered commission structure, which can give the appearance of a pyramid-like hierarchy.

            affiliate marketing vs mlm - mlm pyramid structure

            However, as we’ve discussed, ACN does offer real products and services, distinguishing it from illegal pyramid schemes.

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            What Is ACN Compensation Plan?

            The ACN Compensation Plan can seem complex at first glance, but let’s break it down into simpler terms. There are three primary ways to earn with ACN: Personal Residual Income, Team Residual Income, and Customer Acquisition Bonuses.

            Personal Residual Income

            When you successfully subscribe to ACN, you gain access to market their products and services. You earn money from the profits of the services and items you provide and sell. You receive 3% to 20% of the total costs made by your consumers on ACN, depending on your total number of Personal Customer Points. For example, if your consumers spend around $1000 per month, you could qualify for $30 to $200, depending on your qualification level. This creates recurring earnings from that specific consumer each month. Developing your sales skills to convince clients why they should make a purchase is crucial for generating significant income from this program.

            Team Residual Income

            The ACN team residual income is based on the revenue earned from your recruits hiring their own employees. This is a 7-level uni-plan:

              • Levels 1-5: Earn 4% to 8% of your team’s monthly billings.

              • Levels 6-7: Earn 1% to 4% depending on your rank and team’s performance.

              This tiered system allows you to earn from the collective efforts of your team, providing an incentive to build and support a strong downline.

              Customer Acquisition Bonuses

              Customer Acquisition Bonuses are one-time, up-front rewards paid to you for bringing new customers to ACN. When you help an individual enrollee become a team instructor, you will receive a bonus of $90-$275 depending on your leadership rank. To become a team instructor, your sponsor needs to enrol for $1999 and then recruit their first 6-8 customers within an allocated time span.

              acn-mlm-compensation-plan

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              Can You Make Money With ACN?

              Selling ACN products/services or recruiting a sales team can be profitable. However, MLM programs like ACN often have minimal profit margins initially. For example, you might earn only 3% commission from these bills.

              Consider a scenario: a customer enrolled in a $40/month internet plan would yield just $1.20 in residual revenue (3% of $40). While small payments can accumulate, generating a substantial income requires acquiring numerous clients, which can be challenging for an average person.

              However, by building a significant downline, you can enhance your earning potential. For instance, if you bring in two new IBOs, and each of them brings in two more, continuing up to the 7th level, you’ll have a substantial team. If each IBO brings in 5 customers, and each customer spends an average of $30 per month, this could result in a residual income of around $2,000 per month. Achieving such earnings requires substantial effort and dedication.

              acn-mlm-commission-rates

              Before reaching a conclusion, let’s consider what other reviews say about ACN.

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              ACN Reviews and Complaints

              To determine if ACN is a scam or legitimate, reading testimonials online is one of the best approaches. Most online ACN reviews focus on their MLM program, and opinions are varied.

              Positive Reviews

              Many IBOs have positive experiences with ACN, citing personal growth, a supportive environment, and the potential for significant earnings if you put in the effort:

                  • Amazing Company: “Partnered with most service providers globally. You get what you put into ACN. Personal growth is amazing to help you succeed! I’m almost an RVP or Regional VP. Love the simple system and people that make up the company!!”

                  • Phenomenal Experience: “I have been with ACN for almost 2 years. My experience has been nothing but phenomenal. The amount of growth you obtain is incredible. You have to put in the work, read the books, and learn from your mentors. I love the supportive environment where everyone is rooting for your success.”

                Negative Reviews

                Conversely, there are also negative experiences reported by some users, often related to customer service issues and dissatisfaction with the business model:

                  • Poor Customer Service: “I tried to get my grandmother signed up with ID Seal and it was the worst experience. After multiple attempts and poor follow-up from customer service, it became clear that there were serious issues with their processes.”

                  • Disappointment with Support: “I can’t even put into words how disappointed and disgusted I feel about ACN and JOI. Absolute lack of support, professionalism, and communication. DO NOT GET INVOLVED, ACN ONLY TAKES YOUR MONEY. BE CAREFUL!”

                  While these negative experiences are concerning, they do not necessarily mean that ACN is a scam. However, they do highlight potential challenges within the MLM aspect of the business. As evident from the previous sections of my review, it is extremely challenging to make money through selling the products or recruiting in this scheme.

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                  ACN MLM Review: Pros and Cons

                  ACN has been a significant player in the multi-level marketing (MLM) industry for over 30 years. Founded in 1993, ACN offers a variety of essential services, such as telecommunications, energy, and more, through its network of Independent Business Owners (IBOs). This review aims to provide an in-depth look at ACN, examining both the strengths and challenges associated with its business model to help you make an informed decision.

                  ACN MLM Review – What I Like

                  Let’s run you through the things I liked…

                  #1 30-Year Old Company

                  ACN boasts a rich history, established in 1993 and currently employing over 1,500 staff members globally. As one of the largest digital sales telecommunications companies worldwide, ACN operates in 20 different countries.

                  #2 ACN Sells Legit Services

                  ACN is built on services and products that people are already using, such as web, TV, and phone services, to name a few. This means they provide real value to consumers.

                  #3 Positive Reviews on the Net

                  At the time of this review, ACN holds a positive rating with the Better Business Bureau (BBB). Some individuals use the BBB score to validate legitimacy. Additionally, ACN has received several positive reviews on sites like TrustPilot.

                  ACN MLM Review – What I Don’t Like

                  Now, for the things I didn’t like…

                  #1 High Startup Expense

                  The application cost of $299 is quite high. Furthermore, there’s a misconception that this fee is for work rather than for starting a business, which can be misleading for new recruits.

                  #2 Sell or Die Concept

                  To increase your earnings, it is crucial to build strong sales skills and regularly communicate the benefits of choosing to “bank” with you, rather than with larger competitors in the industry. This intense focus on sales can be daunting.

                  #3 ACN Seems Like a Pyramid Scheme

                  The amount of money you earn depends heavily on the number of individuals you can convince to join your team. Therefore, despite stating that ACN is not a pyramid scheme, it still operates within the MLM structure, which often draws comparisons to pyramid schemes. This is a significant drawback for those who are not interested in multi-level marketing.

                  ACN MLM Review: Conclusion

                  Many people consider ACN to be a scam or pyramid scheme due to its recruitment aspect. However, a closer examination reveals that ACN is not a pyramid scheme. For more than 25 years, the company has been providing valuable services to its customers and contributing nearly $800 million to the GDP of the U.S. economy. If ACN were a scam or pyramid scheme, it would have been shut down by the Federal Trade Commission (FTC) a long time ago.

                  However, it is important to note that the profit margin is quite small, making it difficult for individuals to earn substantial income unless they recruit a large number of people under their downline, a feat that only 1% of people are able to achieve. In other words, the majority of people who join multi-level marketing (MLM) businesses fail to make money. Therefore, I do not recommend ACN or any other MLM company.

                  There are more effective ways to earn money from home. Thank you for reading my ACN MLM review. What is your opinion on ACN as a pyramid scheme or scam? Have you ever been a part of or are currently a member of this business? Feel free to share your reviews at the end of this page!

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                  Thanks for reading my ACN MLM Review!  If you have any questions, or any experiences to share then please write them in the comments below. ;). 

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