With Donald Trump endorsing ACN, the prospects of this multi-level marketing firm is coming well in the limelight. Given the advantages of working from home and following a flexible schedule without compromising the money angle, often an MLM comes across as a reliable alternative. But the question that arises is which one can you trust, given the wide number of scams and legitimacy issues facing these multi-level marketing companies.
You might think that when Trump, the President of United States is endorsing, ACN multi-level marketing, might be worth considering and the ACN Inc might help you earn the promised millions that Trump mentioned. Well, we suggest you must consider the key red flags and make an informed choice about this MLM or Pyramid Scheme.
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Concerns About ACN Multi-Level Marketing
Whenever you decide to put your money in any multi-level marketing program, due diligence is crucial. When a company is asking you money to join them like ACN multi-level marketing, it is always a good idea to read up possible reviews on scam alerts if any.
ACN Inc, a North Carolina based telecommunication firm, surely brings forth the need for this kind of a close study. Given the fact that you have to pay a few hundred dollars to enter this firm, it is important to understand the kind of problems it has faced.
ACN has been in business since 1993, and despite being around for this long, it has faced its fair share of regulatory and legal hassles. This has not just been limited to the United States. The ACN Inc’s legal problems have extended across three countries including Canada and Australia along with the United States.
ACN’s problem does not end just there. This multi-level marketing program has run into a problem and has several reported cases issued by former Independent Business Owners after they lost thousands of dollars in this telecommunication company. Well the ACN multi-level marketing is not the only one in this quagmire. A close study of the recent and upcoming MLM would reveal that a significant majority of MLM programs are facing the same predicament. This is because these companies follow the pyramid structure that is most times difficult if not impossible to turn around these into successful ventures.
Transparency About Compensation Plan
Another important aspect that should worry you is no doubt the compensation plan that the multi-level marketing firm follows. The ones with no clearly defined compensation plan is a potential fraud. The ACN multi-level marketing is in problem zone on this matter. It does not provide any clue about its compensation plan and gives no hint to interested distributors about how they can make money. Especially when you are investing a few hundred dollars in a company, it is important to ask and know the kind of returns that you can expect back.
Prohibitive Cost of Joining
Another factor that works surely against the interest of an average investor is no doubt the cost involved in joining this multi-level marketing program. For a basic business operator,
- The starting fee is $499
- The renewal fee is worth $149.00
- If you subscribe the “Your Business Assistant” package, you have to shell out another $40
- The virtual live business meetings cost $5-10 per week
- Travel expenses shoot up $159 to I attend any of the attend ACN conventions
So on an average, your starting cost to join the business is close to $800. It, therefore, becomes all the more pertinent to analyze the kind of returns you are getting from ACN multi-level marketing. Online surveys and research indicate that buying products directly as against an MLM makes better business sense. The situation after you exhaust your warm markets comprising of friends, families and relatives becomes particularly grim, the relative return on the money invested begins to reduce quite fast.
What’s even more worrying is the approach that ACN adopts while signing up fresh recruits. The ACN multi-level marketing is perhaps a one of a kind firm that asks potential leads to sign for these services that it offers as a favor. So, you are investing almost $1000 and also asking for a favor. The realistic expectation of safeguarding a customer’s right in this situation becomes a matter of concern and cannot augur well for the business ethics of the MLM.
Is ACN Inc Scam?
So we then come to the final point, is ACN multi-level marketing a scam then? You can safely conclude that given the number of regulatory and legal reports that the company is dealing with, all’s surely not well with the ACN Inc. The indications from the various sources seem to amplify the fact that customer interest and the distributor’s rights are not protected in any format through the entire scope of the plan.
Its longevity is perhaps the only fundamental factor that is being put forth as a reason to believe in its credibility. Well, the principle of any business’ success is not just the number of years, it has sustained business, but also the way the company or the business has performed. In the context of the ACN multi-level marketing, the overall performance scorecard does not quite match up with the number of years it has done business. Moreover, the long list of legal reports put a huge question mark on the company’s overall business practices and how ACN Inc is looking to reestablish itself as a core sector player.
It cannot be wrong to conclude that ACN has quite blatantly used its long track record of being in business and endorsements by influential global leaders like Trump as the key to project better success and greater return opportunity on your capital. But even if the scam or the legitimacy issues cannot be proved, it goes without saying that this MLM is still a big no for those intending to make some quick bucks through this distributing network. The relative returns, the percentage of successful returns and similar data is missing and puts a big question mark on the credibility of ACN multi-level marketing.
ACN Inc Is a Better Business Bureau Registered Company
According the BBB, ACN Inc has been working for 24 years. It seems they don’t have a bad record with BBB and 62% of the reviews have been positive. The ACN Inc rate based on 26 customers reviews is 4.52 star out of 5, and so, ACN Inc score is A+ which is good.
Having a multi-level market system or even Pyramid doesn’t necessarily mean that the related company is scam. Some people are used to confuse MLM and Pyrimd schemes with Ponzi schemes. While Ponzie schemes are always illegal, MLM and Pyramid systems can be legal and legitimate. It all depends on how they are managed and how the members earn money. If the only source of money is the membership fees that the members have to pay, and if the the uplines make money only through the membership fees that the downline pay, then you have to be careful because most probably you are involved in an illegitimate scheme that can collapse at any time.
That is the rule of thumb for the MLM and Pyramid and market companies in general. The fact that ACN Inc uses a multi-level marketing system doesn’t necessarily mean that it is a scam and illegitimate.