6/8/13

Hey guys, I'm not going to explain what ACN is, if you don't know then look it up. If anyone has any knowledge of this company or first hand experience with it, I would like to hear your feedback on it and your opinions. A kid I don't know but who shares mutual acquaintances with me hit me up on facebook and invited me to a meeting. I went to the meeting and was eagerly ready to join because it all almost sounded to good to be true. However, I decided to hold out for a while and wait to get more info about it just in case. I can see that many of the people in the program or company however I should put it seemed really sincere and as though it has really been helping their lives out. Then I looked on the internet and theres tons of people calling it a pyramid scheme and others claiming that they're services are awful.However, there is the fact that Donald Trump has endorsed it which it seem more legit. (p.s. I'm going to continue to go to meetings and bring friends with me in order to get their feedback before I make my choice...plus there's a hot black girl there who I'm thinking about asking out on date.)

What is a Pyramid Scheme?

A pyramid scheme is structured, as you would expect, as a pyramid. This platform begins with the initial recruiter who then proceeds to recruit x number of people under him, and those new recruits then become the recruiter bringing in more waves of people. This process would continue until there are either no more recruits or when the final wave of recruits can no longer support those above them.
Typically there is a initial investment fee made whenever a recruit wishes to join the pyramid, which is then acted as profit for the recruiters.
The issue with this scheme is that it is not sustainable as there can only be a finite number of people who join this scheme, and when that number is reached the pyramid collapses as there is no capital to fund it.
With pyramid schemes, they do not usually0 offer tangible services or products.

Here is a reference pyramid scheme.

What is network marketing or multilevel marketing?

Network marketing acts similarly to the pyramid scheme but does have some different characteristics. Typically network marketing offers a low upfront investment for a sample kit, and then from there either sell more products to friends and family, or recruit more sales representatives. Money is generated "downline" where recruiters generate income from sales that their recruits and following recruits have made.
This business model acts as a distributor network and payouts can occur at more than one level. Although these can be profitable, it requires a large number of recruits to make substantial money.

Is ACN a Pyramid Scheme?

As @vikingguy puts it, although ACN is not considered a pyramid scheme, it would require an immense amount of resources to become successful.

Its not a pyramid scheme per se, but it is a scheme and not something I would get involved in. If you look at it, the payment structure is very carefully crafted such that a relative few super-successful individuals make meaningful money and the vast, vast majority do not. They don't have services to sell, from what I've read, rather they just market for other companies offering services. Their profit is likely wholly dependent on the $500 start-up fee they receive from sucks most of whom never earn it back. Your friend is inviting you to a meeting because recruiting others is a crucial part of your pay, it is basically the only way to make legit money. The odds of earning enough money to justify the effort you will have to put in (and the annoyance as you pester your friends and family to join/buy from you) are incredibly small.

If you have any experience regarding pyramid schemes or multi-level marketing please comment below!

Comments (23)

6/8/13

You've got to understand the context of the term "pyramid scheme". Doing some research, this organization doesn't fit the exact definition of a pyramid scheme, but the term itself has evolved in popular culture. When people use that term to describe the business model what they're really saying is that there is a heavy income reliance upon recruiting others beneath you. In our common vernacular, people aren't necessarily saying that there is no product or service being provided. In the context that I believe most people are using the term "pyramid scheme"--heavy reliance on signing others up--then yes, this is a "pyramid scheme". Does it fit the exact definition of "pyramid scheme"? No, it does not.

Take Amway, for example. They legit provide products and services, but you'll never make real money unless you recruit others beneath you.

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6/8/13

Its not a pyramid scheme per se, but it is a scheme and not something I would get involved in. If you look at it, the payment structure is very carefully crafted such that a relative few super-successful individuals make meaningful money and the vast, vast majority do not. They don't have services to sell, from what I've read, rather they just market for other companies offering services. Their profit is likely wholly dependent on the $500 start-up fee they receive from sucks most of whom never earn it back. Your friend is inviting you to a meeting because recruiting others is a crucial part of your pay, it is basically the only way to make legit money. The odds of earning enough money to justify the effort you will have to put in (and the annoyance as you pester your friends and family to join/buy from you) are incredibly small.

6/8/13

VikingGuy:

Their profit is likely wholly dependent on the $500 start-up fee they receive...

Basically this. I have little doubt that the owner of the company is making money hands over fist.

6/8/13

VikingGuy:

Its not a pyramid scheme per se, but it is a scheme and not something I would get involved in. If you look at it, the payment structure is very carefully crafted such that a relative few super-successful individuals make meaningful money and the vast, vast majority do not. They don't have services to sell, from what I've read, rather they just market for other companies offering services. Their profit is likely wholly dependent on the $500 start-up fee they receive from sucks most of whom never earn it back. Your friend is inviting you to a meeting because recruiting others is a crucial part of your pay, it is basically the only way to make legit money. The odds of earning enough money to justify the effort you will have to put in (and the annoyance as you pester your friends and family to join/buy from you) are incredibly small.


Thanks I agree. I don't think its a scheme but I do think its a waste of hard working people's and hard studying students' time and money(one guy told me how some kids transfer colleges every year just to get new recruits!-even though idk how true this is) although i do believe a few people can possibly break through and become pretty successful by doing it, but I think I'll just opt to keep my 500 bucks and spend my summer interning or working instead of asking friends and family whom I hardly call anyway to support me in some business that isn't even mine. But I am going to another meeting to see if that black chick is there again :D
Best Response
6/8/13

I've been recruited for network marketing/multi-level marketing schemes 3 times now (once for Amway when I was 18 and twice now for Lifevantage). I'm 28. In 2010 when I was 25 I dated a 47-year-old cougar/MILF who I met at work. After we broke up I ended up leaving the area to be closer to my family. She called me up and left a message after not speaking for about 18 months. She says on the voicemail something to the effect of, "Hey, [DCDepository], haven't talked to you in a while. Wanted to see how you were doing. Call me back please." I got an immediate erection when I got the voicemail and called her back the next day.

Conversation starts off well and then she gets down to it--"Hey, I wanted to talk to you about an amazing business opportunity [keep in mind, she's the Vice President of multifamily lending for one of the two largest banks on Earth. She already has an amazing career.]. There's this amazing anti-aging drug called Protandim . This pill is going to shake the foundations of our society."

And that's when I basically stopped her. I let her know that I was aware of the product and that I already used it but wasn't interested in going into business. About 4 months prior my friend--probably a 65-year-old real estate agent that I knew--invited me and a bunch of people out to her house to discuss a new business she was going into. She and a half dozen women pitched Lifevantage to me and another half dozen people or so. Was like a 2 hour pitch. Out of pity, I bought some Protandim from the woman (cancelled my order about 4 months later).

Multi-level marketing I'm sure works for some people, but it's predicated upon not just selling a product but also (and mainly) on recruiting others to sell that product. A key to recruitment is to have a product you believe in so that you can honestly sell the concept to other people you are recruiting. Lifevantage seems to have a great product on the surface to pitch, but when I did further research it was apparent to me that Protandim has absolutely no hard evidence to support its claims. It's just a feel good story is what it is. And what's great for the organization is that they take on absolutely zero risk when "hiring" a new employee. In fact, the new "business owner" has to pay a fee to join! It's the perfect business model--for the guy at the top! No risk, all reward.

6/8/13

double post.

6/9/13

DCDepository:

I've been recruited for network marketing/multi-level marketing schemes 3 times now (once for Amway when I was 18 and twice now for Lifevantage). I'm 28. In 2010 when I was 25 I dated a 47-year-old cougar/MILF who I met at work. After we broke up I ended up leaving the area to be closer to my family. She called me up and left a message after not speaking for about 18 months. She says on the voicemail something to the effect of, "Hey, [DCDepository], haven't talked to you in a while. Wanted to see how you were doing. Call me back please." I got an immediate erection when I got the voicemail and called her back the next day.

Conversation starts off well and then she gets down to it--"Hey, I wanted to talk to you about an amazing business opportunity [keep in mind, she's the Vice President of multifamily lending for one of the two largest banks on Earth. She already has an amazing career.]. There's this amazing anti-aging drug called Protandim . This pill is going to shake the foundations of our society."

And that's when I basically stopped her. I let her know that I was aware of the product and that I already used it but wasn't interested in going into business. About 4 months prior my friend--probably a 65-year-old real estate agent that I knew--invited me and a bunch of people out to her house to discuss a new business she was going into. She and a half dozen women pitched Lifevantage to me and another half dozen people or so. Was like a 2 hour pitch. Out of pity, I bought some Protandim from the woman (cancelled my order about 4 months later).

Multi-level marketing I'm sure works for some people, but it's predicated upon not just selling a product but also (and mainly) on recruiting others to sell that product. A key to recruitment is to have a product you believe in so that you can honestly sell the concept to other people you are recruiting. Lifevantage seems to have a great product on the surface to pitch, but when I did further research it was apparent to me that Protandim has absolutely no hard evidence to support its claims. It's just a feel good story is what it is. And what's great for the organization is that they take on absolutely zero risk when "hiring" a new employee. In fact, the new "business owner" has to pay a fee to join! It's the perfect business model--for the guy at the top! No risk, all reward.


HAHAHA! I know its an ingenious business model right! lol. But yeah, making the new recruits feel strongly about what their selling is definitely apart of they're gig At ACN. Its even worse because the people are so devoted to recruiting others and actually helping them out- most of them being, struggling family men and women, or young college students and recent high school grads. They even told me that they mostly have the fresher recruits give the presentations because they're the ones who are still energetic about it. All in all though, it seemed like a Jehovah's Witness bible study (no offense to anyone's religion, my dad is a JW) except one where they have the potential to make money.
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7/31/13

There are three things to consider in an MLM: Product, System, and the Individual. ACN resells legitimate products from name brand service providers, not some magic juice or supplement, they are products that people use every day, that takes care of the product. System, sure it works for people who put in the time and effort. The last component is the person. How many people who fail really treated it like a business and put in the time and did that they needed to do?

I hear people complaining about this or that being a scam, but really, most of them expect to invest $500 and the money will just come in without them doing anything, and if it doesn't they call it a scam. Generally speaking, 1 out of 10 businesses fail in the first 5 years, 1 in 10 of those fail in the next 5 years. In the corporate world 2% make all of the money anyway, so how is MLM any different? Will 93% of people who start ACN fail? Probably. Did they really put all they could into succeeding, probably not.

Treat it like an actual business, put in the time to learn why some fail and some succeed, duplicate the ones who succeed, and you will be good to go. Also helps to have a good up line to learn from and guide you.

I do ACN by the way and have a solid team, feel free to email me with any questions. Good that you are researching this, I did the same and found that ACN is a reputable company with many who have succeeded, but it is not easy, you need to put in the time and energy.

7/31/13

I have a friend who swears by ACN. 7 years out of school, lives in his mom's basement, has 0 money and few skills. Fairly intelligent guy too who had many opportunities after college. ACN targets lazy people who want to make lots of money.

7/31/13

Lost $500 when I was 17. Never again.
One of my cheaper lessons, actually.

"Mr. Perkins poses an extreme risk to the market when drunk."

7/31/13

These companies aren't bad if you're an actual entrepreneur who's going to pound the pavement every day for 12 hours to make a dollar. The companies are awful for people who want to put in 5-10 hours of work per week and expect to profit, which is usually the case.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer
"Your grammar made me wish I'd been aborted." -happypantsmcgee

4/2/15

ACN is a well disguised pyramid scheme. In itself it's not a scam, there is a legitimate product, but the scam starts when they ask you $500 when signing up to become an IBO. Every aspect of a pyramid scheme are present, but since ACN offers legitimate services, it cannot be considered one completely. They know this and that's why it's been so successful. Bottom line is, ACN is a deceptive business. Yes you can make money, but most IBOs never see a significant income. Funny since it is supposed to be such an amazing opportunity... Opportunities don't cost $500 ACN, stop calling it that.

I could rant a long time about this shady business, but if you want to read more, check out acnpyramidscheme (dot) com. They have pretty useful info about this topic aswell as much more. Like Donald Trump. Oh Donald Trump....

5/15/15

Wow, you know what's great about these types of "comment sites"? NOTHING!

All you get are ignorant, uninformed people looking for a place to bash something. Wake up people....let me explain the truth about your current "job"....it's a pyramid scheme. Mostly likely you work for an owner(1 person), they have a President/Vice president or Managers/Assistant Managers(multiple people) and below them are "employees"(lots of people like YOU). Who do you think makes the most $ in this scenario? Who's next? Who's last(again, most likely you). PYRAMID. People will always make money off of your efforts, so GET OVER IT ALREADY.

You will NEVER be paid not on what you are worth, but ONLY for what the job position pays. Bill Gates would make less than $15.00 per hour if he worked in fast food today. Get it? No? Start a business and multiply the numbers of hours that go into YOUR income producing day. So, now that the door to an "open mind" has been ever so slighty cracked, how about asking this: Would Donald Trump (Billionaire) risk his reputation? Billionaires are wealthy because they know something you don't about business and making money.

Understand this...I have not joined ACN "yet", but plan on it this week. Why? Because they are an 827 million company started in 1993 (if it were a scam it would have already been shut down) and you get paid on the services you are already using (I'm not currently getting paid on that, are you?). PLUS when I help other's do the same I'll make an override commission as well. (exactly like sales managers do in ANY business already) And the good thing is that I will have NO employees or overhead. So the more people I help become their own business owner, the more I make? Well sign me up then, because nobody's gonna pay my electric bill for me and to stop working retire on less than I earn now is not an option (without "residual income". (go look that definition up - it's how insurance people get paid over, and over for the work they did 1 time).

Feel free to rant against my comments all you like, but at 51 years of age I am not effected. :)

p.s. After I join I'd be happy to help those serious enough about doing something positive with their lives. Thanks!

5/15/15
David-Neily:

Wow, you know what's great about these types of "comment sites"? NOTHING!

All you get are ignorant, uninformed people looking for a place to bash something. Wake up people....let me explain the truth about your current "job"....it's a pyramid scheme. Mostly likely you work for an owner(1 person), they have a President/Vice president or Managers/Assistant Managers(multiple people) and below them are "employees"(lots of people like YOU). Who do you think makes the most $ in this scenario? Who's next? Who's last(again, most likely you). PYRAMID. People will always make money off of your efforts, so GET OVER IT ALREADY.

You will NEVER be paid not on what you are worth, but ONLY for what the job position pays. Bill Gates would make less than $15.00 per hour if he worked in fast food today. Get it? No? Start a business and multiply the numbers of hours that go into YOUR income producing day. So, now that the door to an "open mind" has been ever so slighty cracked, how about asking this: Would Donald Trump (Billionaire) risk his reputation? Billionaires are wealthy because they know something you don't about business and making money.

Understand this...I have not joined ACN "yet", but plan on it this week. Why? Because they are an 827 million company started in 1993 (if it were a scam it would have already been shut down) and you get paid on the services you are already using (I'm not currently getting paid on that, are you?). PLUS when I help other's do the same I'll make an override commission as well. (exactly like sales managers do in ANY business already) And the good thing is that I will have NO employees or overhead. So the more people I help become their own business owner, the more I make? Well sign me up then, because nobody's gonna pay my electric bill for me and to stop working retire on less than I earn now is not an option (without "residual income". (go look that definition up - it's how insurance people get paid over, and over for the work they did 1 time).

Feel free to rant against my comments all you like, but at 51 years of age I am not effected. :)

p.s. After I join I'd be happy to help those serious enough about doing something positive with their lives. Thanks!

Strong first post.

5/15/15
David-Neily:

Wow, you know what's great about these types of "comment sites"? NOTHING!

All you get are ignorant, uninformed people looking for a place to bash something. Wake up people....let me explain the truth about your current "job"....it's a pyramid scheme. Mostly likely you work for an owner(1 person), they have a President/Vice president or Managers/Assistant Managers(multiple people) and below them are "employees"(lots of people like YOU). Who do you think makes the most $ in this scenario? Who's next? Who's last(again, most likely you). PYRAMID. People will always make money off of your efforts, so GET OVER IT ALREADY.

You will NEVER be paid not on what you are worth, but ONLY for what the job position pays. Bill Gates would make less than $15.00 per hour if he worked in fast food today. Get it? No? Start a business and multiply the numbers of hours that go into YOUR income producing day. So, now that the door to an "open mind" has been ever so slighty cracked, how about asking this: Would Donald Trump (Billionaire) risk his reputation? Billionaires are wealthy because they know something you don't about business and making money.

Understand this...I have not joined ACN "yet", but plan on it this week. Why? Because they are an 827 million company started in 1993 (if it were a scam it would have already been shut down) and you get paid on the services you are already using (I'm not currently getting paid on that, are you?). PLUS when I help other's do the same I'll make an override commission as well. (exactly like sales managers do in ANY business already) And the good thing is that I will have NO employees or overhead. So the more people I help become their own business owner, the more I make? Well sign me up then, because nobody's gonna pay my electric bill for me and to stop working retire on less than I earn now is not an option (without "residual income". (go look that definition up - it's how insurance people get paid over, and over for the work they did 1 time).

Feel free to rant against my comments all you like, but at 51 years of age I am not effected. :)

p.s. After I join I'd be happy to help those serious enough about doing something positive with their lives. Thanks!

LOL. Well, come back to us when you're making more money in your pyramid scheme than you would at a job.

5/15/15
David-Neily:

Would Donald Trump (Billionaire) risk his reputation?

Donald Trump has a reputation, but it's difficult to see how it could get much worse.

Those who can, do. Those who can't, post threads about how to do it on WSO.

  • Anonymous Monkey
  • 2/13/16

Hi David, good to hear a different take on the negativity on most of this site. Would be intrigued to know how you got on as this post is 10 months old. Did you sign up and how have you found it?

5/17/15

If Donald Trump endorses it, then that definitely means it's a legitimate business.

Jokes aside, lots of pyramid schemes still offer products or services to set up the facade of an actual business. I don't know anything about this company, and I'm interested to look into it later, but in most pyramid schemes about 87% of people actually lose money. The way to make money from a pyramid scheme is to be very proactive about recruiting and, almost more importantly, ensure that you get into the game early on. How long has this scheme been running? Some pyramid schemes can last years, but they usually don't last all too long once people start losing money, by virtue of the fact that they rely on geometric sequencing that eventually requires an impossible amount of new investors needed to cover the old investors. I'd get into it if you know what you're doing.

5/18/15

This is a good point. Who can make money selling pills and creams in a non-retail setting? The answer is that they CAN if they have dozens of people under them selling these products, which the guy gets a commission on. So it's all about recruiting those beneath you. And since most of the people beneath the guy at the top will fail, the guy at the top has a sole job--recruiting new people and selling them the dream.

5/18/15

Hahaha! All these ACN "Business Owners" coming in to scrape authority traffic off WSO.

  • Anonymous Monkey
  • 12/17/15

The biggest issue with MLM companies is not to quickly point them out as being pyramid schemes or thinking that one can not generate income. The point everyone seems to be missing is that in ANY business, if an owner does not have proper leadership and work provided to their employees to actually have work to do to earn income, then yes, your turn over ratio of people joining then quickly quitting because of lack of opportunity to really start making income becomes an issue. So in fact, it's not the business, it's ownership aka Leadership from those above. The key to succeeding in ANY MLM company is to learn first, then create opportunities based on your market so when you begin recruiting, you can provide your new IBO's (employees if you will) opportunities sign up new accounts therefore begin making income. Afterwards, training them to seek new events so they can duplicate the system as any franchise business would do. But once again, I think MOST MLM companies get a bad reputation from many recruiting and never giving new IBO's who majority are new to the business work or proper training. It's a business, one has to treat it as such to be successful. It's definitely not a get rich scheme by any measure.

12/18/15

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  • Anonymous Monkey
  • 7/13/16