ACN is a telecom business

ACN is a telecom-based multilevel marketing corporation, originally based in Farmington Hills, Michigan, but now based in Concord, North Carolina. It's a popular multi-level marketing company that started in 1993. In 1999, the enterprise opened operations in Europe and in 2004 opened the markets in Asia. Presently, ACN operates in 20 countries and has 5 International Headquarters (besides the US based offices). While you'll find many reports implying that ACN is a gimmick, ACN is a legitimate business business. At present, ACN is a member of the Direct Selling Association (DSA) and has a A+ rating inside the Better Venture Bureau.

With that said, you'll find pros and cons associated with the ACN Business Program. Before I go into them, ok, i'll BRIEFLY explain it's services and pay plans plan.

The Services

While ACN markets several diverse services that aren't telecom-based (home security devices, broadband internet services and satellite TV), it's main lines of services revolve around telecommunications:

1. Local And Long Distance Service - Because of the deregulation that took place inside the phone industry back in 1996, ACN was able to position themselves in front customers who were now able to choose their phone business. It's really a great concept. Why? Because all you, as an ACN distributor, have to do is save somebody a few dollars a month on a service they're ALREADY and WILL CONTINUE to pay for every single month.

2. Voice Over Online Protocal (VOIP) - In a nutshell, VOIP technology enables a customer to make phone calls over their web line. By doing this, they are able to cut their $70-$80 a month local & long distance phone bill down to a $25-$30 a month VOIP bill. Typically, unlimited international calls to several selected countries are also included in this LOW monthly bill.

3. Cellular Phone - ACN resells cell phones from pretty much all the major carriers like Sprint, Verizon and T-Mobile.

4. The Video Phone - The video phone is ACN's flagship product. It's exactly what it sounds like, a VOIP phone that has a screen on it that allows you to see the person you're speaking to, assuming they are on a video phone also.

The Compensation plan Plan (Model)

ACN operates on a UNILEVEL compensation plan plan platform. While a UNILEVEL comp plan is typically used by older MLM businesses and does not have the "sexiness" associated with a Binary, it's still a very stable and profitable enterprise model. In fact, UNILEVEL comp plans have had the LEAST complaints when compared to the amount of complaints that Binaries and Matrixes have gotten over the last couple of years.

With that said, the compensation plan plan can certainly be broken down into two categories:

1. Residual income - Residual income is earned and built through the acquisition of customers. As you personally acquire customers who get on ACN services, you earn a passive income every month as your customers pay their bills. On top of that, you'll earn an override residual income from every customer that's acquired through your organization.

2. Upfront Signup bonuses (CAB & T-CAB Signup bonuses) - Signup bonuses are paid out in relation to the amount of reps your group brings in on a monthly basis. Keep in mind, that signup bonuses are ONLY paid out when reps get QUALIFIED within their 1st 30 days. This QUALIFICATION changes every now and then, but typically it comprises a new distributor acquiring 8 customer points, with each service earning a certain amount of customer points. For example, when a new rep acquires a new VOIP customer, that customer gives them 2 customer points.

With that said, one can find 2 MAJOR factors to keep in mind with regards to ACN's Upfront Signup bonuses:

1. If a new distributor Doesn't get qualified in their First 30 days, then bonuses are NOT paid out.

2. There are actually thresholds that have to be passed for reps to earn bigger bonuses. For example, if a new rep must have to hit 10 Qualified Reps to earn a $1,500 Bonus, but they only get 9 Qualified Reps that month, they will earn the bonus given at the lower level (typically for getting 5 individuals qualified).

Now, Ok, i'll Give You 3 PROS Of The ACN Enterprise Opportunity:

1. As I mentioned earlier, the genius of ACN is you're SIMPLY saving customers money on a service they're ALREADY spending money on.

2. ACN is positioned in front of the curve, with regards to Video Phones. If Video Phones become the next big thing in telecom, it can certainly mean huge program for ACN reps.

3. ACN has some of the most effective network marketing training and trainers that I've seen inside the last 13 years that I've been full-time in this industry.

Now, For 3 Of The CONS:

1. The passive income is very small. Now, I'm not saying ACN is a negative enterprise, but there's only so many ways they can pay out residual income on a $25 a month VOIP bill. To be able to make significant passive income, you'll must build a Huge organization with tens of thousands (and hundreds of thousands) of active customers. With that said, you will find many producing RVPs making multiple 6-figures a calendar year. The problem is the bulk of their income is from bonuses and NOT residuals. So if they ever slow down, they are in BIG trouble.

2. As I mentioned earlier, CAB Additional bonuses are ONLY paid out on QUALIFIED reps. Basically, if your organization puts in 20 reps, but ONLY 5 of them get QUALIFIED, you'll only receive money for having 5 QUALIFIED reps that month. But yet ACN still takes inside the same $500 entry on all the other 15 reps they didn't pay you on. In my opinion, there is a TON of breakage inside the comp plan.

3. As great as the idea is, ACN still has a tremendous amount of competition. Inside the network marketing area, you'll find corporations like Fortune Hi-Tech Marketing, Multilevel marketing, Lightyear Wireless and Escape International who are all offering telecom services. But on top of that, they have to compete with the big monopolies like Sprint, Verizon, DishTV, etc.

Should You Join?

As I mentioned before, ACN is a legitimate business business. Nevertheless, it's critical that you do your research first and identify if it's the chance you're looking for. For example, if you're interested in getting a piece of the Video Phone market and like the concept of marketing services that individuals are already using, them ACN may be for you. In case you're interested in building a significant PURELY passive income (not counting UPFRONT bonuses), then ACN may not be for you.