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!