ACN Pyramid Scheme
What You Need To Know Before Signing Up
The Pyramid Scheme Rumors: Fact or Fiction?
For years, people have been talking about all kinds of “get rich quick” schemes and “sure fire” ways to make money from home. From real estate speculation to ponzi schemes, many are left wondering if there actually is an ethical, moral way to earn either part-time or full-time income without going to work for someone else or spending massive amounts of capital to start a business.
One option is “direct selling” which has increased steadily over the past 10 years. According to the Direct Selling Association, an independent group focused on promoting ethics in entrepreneurism around the world, a record 20.5 million people in the U.S. were involved in some sort of direct sales venture in 2016, an increase of 1.5 percent over the previous year.
However, the cry continues to go up that these network marketing or MLM companies are nothing more than unethical “pyramid schemes” designed to steal money from those who get in late and “only those at the top” are making the money. And truly, there have been “here today, gone tomorrow” companies who have left thousands in debt holding on to only broken promises and useless products.
One company in the midst of these accusations is ACN with several former disgruntled associates pointing to a failed compensation system as a perfect example of a modern pyramid scheme. So what’s the truth? Is ACN an unethical ponzi or legitimate business opportunity?
Pyramid Schemes in Corporate America
Some use the phrase “pyramid scheme” as a tool to frighten people away from something they do not fully understand. Some point to the fact that, in a network marketing environment, only those who “get in early” and are “at the top” of an organization are the only ones making money.
But, according to this definition, every major corporation in America would be a pyramid since those who “get in early” (like the founders of Microsoft or Google) make all the money. Does this mean these companies are a pyramid scheme? Surely, in every corporation, those “at the top” (i.e. CEO’s, presidents, vice presidents) make the majority of the money compared to those who work for them, and several of them started at the bottom and worked their way up.
Some also point to the structure of an organization to indicate it’s a pyramid. But again, this would indict every major corporation in the world as each has a CEO and/or President at the top with Vice Presidents under them and an ever-expanding base of Directors, Managers and staff under each. So looking at the structure of the organization is not a valid.
Defining a Pyramid Scheme
What Does this Mean for ACN?
While most MLM companies today are peddling their unique brand of “pills and potions” that claim to cure everything baldness to acne, ACN is different. Looking solely at the product offering, you can see that ACN has a unique and distinct advantage in offering wireless services, gas, electricity and other utilities. These are products that people use every day while also looking to newer emerging technologies such as security systems and home automation as they become available.
So, just on the product offering alone, ACN could not be considered a pyramid scheme because all commissions are paid only when customers pay for these services. Another product advantage is that ACN associates need very little training to do so. With other companies, training is needed on everything from nutritional supplements and financial services to travel and skin care.
Does ACN Pass the Pyramid Scheme Test?
For 8 consecutive years, ACN has been listed as one of the top 20 direct selling companies in the world by the DSA. To be a member of the association, a company must go through a stringent screening process to ensure they enforce a strict code of ethics, which includes how their sales force is trained and compensated. This helps ACN stay in compliance with the FTC’s rules and guidelines as the DSA has higher standards than the federal government is asking for.
In addition, ACN has been around for awhile. Founded in 1993 by 4 entrepreneurs who have been able to guide the company through the changing advances in technology, Greg Provenzano, Tony Cupisz, Mike Cupisz, Robert Stevanovski have been at the head of the company all throughout its 24-year history.