Would Donald Trump be involved with a Pyramid Scam?
I am a pathetic devotee of Donald Trump's television show "The Apprentice", despite its declining ratings. Who doesn't secretly believe that they too could outperform the any of the contestants?
However, as fascinated as I remain with this television show, I regard Mr. Trump's endorsement of ACN with considerably more skepticism. "ACN reps are allowed to use this words to describe Trump's endorsement Donald Trump has agreed to endorse and promote ACN and our vision. He will be featured in a variety of print and video media over the coming months, all designed to help you build your ACN business. In addition, Mr. Trump will be speaking at select upcoming ACN International Training Events. Representatives are not allowed to use Mr. Trump's name, image, footage, website or any other material in any form at any time. ACN says that it will not tolerate any violation of this policy. If any representative is witnessed acting in a way that might compromise ACN's relationship with Mr. Trump, ACN should be contacted immediately. Consequences will be severe and may include deactivation." (my emphasis)
As I have written before, I doubt that ACN is a pyramid scam in the criminal sense of "pyramid". But I certainly don't think that it is a good business opportunity. Consider what was written at Sub-Board I, Inc.
"It's easy to get excited when someone tells you stories of living a life of luxury. But once you start asking questions and trying out ACN's suggested sales pitches on everyone in your phone book, it quickly becomes clear that what Lullo described on stage won't work for everyone.He says the company sells phone services--long distance, local, DSL, etc. He says that for $500 you can buy into your dream job.
But once you wade through all the jargon, it's clear that what your $500 has purchased is the incentive to badger other people into giving Lullo's company $500 too.
No matter how many times Lullo and his disciples mention that the business was praised by Donald Trump, it doesn't change the basic dynamic. What you are really selling--the real product--is your friends. Your neighbors. Anyone you can drag into the company's embrace." (my emphasis)
What is the attraction to "buying your dream job for $500"? Well, it looks deceptively simple to succeed,
"It's not the commission that makes representatives money. It's the bonuses for recruiting and advancement within the first month that allows them to make their money back. When you sell seven phone points (one awarded for each service sold) and recruit two other people to pay $500 and become TTs below you with seven phone points each, you get named "Executive Team Trainer."That position is still one quarter of one percent, but includes an exclusive, first month only, bonus check of $700. In other words, you've made back your $500 investment plus $200 that month." (my emphasis.)
Let's imagine a story in which all ACN reps quit with a profit of $200, after recruiting their two new sales representatives. So nobody loses. Right?
After you quit, ACN has $1500 - your bonus of $700, ie., $800, and your two recruits are busy looking for four more stooges, so that they can cash out for their $200. Then ACN would have the four stooges $2000 - your two recruits' bonus of $1400, another $600. Can the four stooges find eight more "independent sales representatives"? Well, then ACN would have the eight ISR's $4000 - the four stooges' bonus of $2800, or $1200. Do you sense a pattern here? For every "clever" ACN rep who decides to "retire" with his $200 bonus, ACN makes $300 of his or cleverness. Very nice.
Comments
Acn has destroyed My Family.which I Loved very much.Its an evil money lust cult.No questions about it!
Posted by: Richard Crafton | September 18, 2007 9:03 PM
How did that happen?
Posted by: Michael Webster | September 19, 2007 8:00 AM
I think you should read more about economy than loosing time in making a blog to let people have doubt about ACN and what the Network Marketing industry really is. I'm shure it don't make you wealthy anyway... You should read the book 'The Next Millionaire' by Paul Zane Pilzer because he receive a nobel price for his book 'Unlimited Wealth' and became since that one of the most respected economy analysist in the world. He explain why 10 millions of millionaire will emerge between 2006 and 2016 from specific area of economy such as network marketing. Beside, third of his book explain why network marketing is in his word a perfect business.
Posted by: Phil | December 9, 2007 11:48 PM
ACN is a brilliant scam. I agree with the statement that it is an "evil money lust cult." But you would never know that upon first impression, because they are pretty much the slickest show on the planet. That may sound extreme, but I have barely survived the three years I spent trying to succeed with the company-- emotionally, financially, and spiritually.
The chances of succeeding with this company for anyone, from current CEO to college freshman, are slim to none. The odds are similar to the "House Always Wins." After stumbling upon a paragraph in a book "Deadly Cults" by Robert L. Snow, about another MLM's use of Cult Mind Control Tactics, I began serious research.
What I found frightened me and made me realize the terrible truth that they actually employ every trick in the book to free you and your contacts from their wallets, without having to give too much in return to recruits. It was actually a huge relief to find it wasn't me, but the weighted system ACN had in place.
How is it that I could have sunk so much time and money into this, and heard so many promises of success, to be sitting here tens of thousands of dollars poorer? I have lost connections with my delicate family and friend relationships over ACN. Why? Because ACN is not about it's very high-tech products and services, it is really about putting together a list of the most valuable people in your life and just taking the $500 up-front fee from them. When they drop out, which they all will, ACN is richer and they are poorer. If I had to put a finer point on it, I would say this business is an affront to basic business practices and normal relationships. But they make this very hard to see.
There was a time when I was hailed as an up-and-coming entrepreneur in many news articles-- no more. I graduated Cum Laude from my University, I'm not a flunkey nor a drop-out. Anyone can fall prey to this.
So why wouldn't I be excited that Donald Trump joined the company as an endorser? Who wouldn't want to work at that level? Let me save the people thinking about working with this company their resources and sanity...Don't do it. Just don't step in the room. I can only hope that Mr. Trump doesn't fully understand the scenario. Succeeding in business IS hard enough, even when you find the right partners. ACN has made too many empty promises and now I know why. That's not the "Integrity" they always talk about, is it?
ACN is more like a cult than anything.
A Cult has these characteristics:
-Everything is set up to benefit the Leaders or Founders of the Cult.(These guys are documented as making massive fortunes from ACN.)
-Often cults acquire hundreds of millions of dollars in assets, acquire celebrity endorsements, get darling media coverage at one point, and network with politicians and lawmakers (Former State Attorney Generals like ACN has on its legal team)
-Often cults hide behind corporate laws or non-profit religious laws to essentially get away with massive fraud (until everyone 'drinks the Koolaid' and allegations are no longer deniable).
-Cults make you work long hours for very little in return. A VP once stated to me, "if you can't make another call from exhaustion and it's 11 pm, that's a good day in ACN." Whatever happened to "Balance."
-Cults use Mind Control techniques such as Repetition, Environment Control (You should see the light show at the International Coferences, Pink Floyd would be proud), Peer Pressure, Evenly paced music, Indoctrination of Harmful Beliefs, and any other tactic that helps them with their means.
Okay, says it's not really a Cult (for the more measured view). Very few people can be convinced to use the products and services, and the ones that do face major hassles and headaches that they will complain about TO YOU. Many end up hating ACN, and their connection to ACN is YOU. Often, the services end up costing more than standard services or just are not convincing enough. That's when they ask you to "Lean on the Relationship." Imagine a slimy Eel chasing your Grandmother's checkbook and you will know how this feels.
Well what about the Video Phones? They are one of the few companies to employ these devices...but look out. Anyone ever read "1984?" Orwell's 'Telescreens,' anyone? Technology is just another way for them to try to control you and your friends. Normal people with normal lives are generally not as interested in this technology as they would have you believe. I did get a few customers, but they stopped answering my calls and they certainly didn't refer me any more customers. Though the technology is really interesting, it is another way for them to INVADE your life too.
If you want to have fun with $500 or spend money on plane tickets, buy yourself a ticket to Monte Carlo and put $500 on Black at the Roulette wheel. Your odds are better for winning and you'll probably have fun even if you lose (and a great story).
I've been to numerous conferences, been on countless conference calls, gotten dozens of people "in" and in my downline and made very little money. But don't get me wrong, ACN does work, if you don't mind scamming tons of people just like you without hearing from your conscience.
Hmm...A Pseudo-Cult masquerading as a legitimate phone company...Genius.
The hard thing is knowing how many people will sign the Rep Agreement before they even have a chance to read something like this, because of the high pressure, time-crunch motivated tactics.
Posted by: Justin S. Paladin | January 15, 2008 4:24 PM