ACN MLM == Pyramid Scheme
Image via Wikipedia
Here is an interesting exchange between Kenneth Woodruff and a unnamed friend, with Kenneth drawing out his friend about ACN.
"(10:01:55 AM) kennethpwoodruff: dude
(10:01:57 AM) kennethpwoodruff: really?
(10:02:02 AM) kennethpwoodruff: who hooked you into this?
(10:02:48 AM) CloseFriend1: i have 2 neighbors that are already doing it
(10:02:53 AM) CloseFriend1: and making money
(10:03:25 AM) kennethpwoodruff: that still doesn't make it "not a pyramid scheme"
(10:03:50 AM) CloseFriend1: no doubt
(10:04:07 AM) CloseFriend1: it's just better than any one of them that I have seen before
(10:04:13 AM) kennethpwoodruff: you're going to have to make $23K / year just to break even
(10:04:29 AM) CloseFriend1: how do you figure?
(10:04:40 AM) kennethpwoodruff: There are cost of being ACN Rep. About 499 USD to begin, about 149 yearly - annual fee, monthly fees about six bucks and administrative fee of $1. It is about 230 USD yearly. At 1% commission, total billing would have to be over $23,000 or about $1940/mo. That's about 40 average customers. And this is to break even!"
And how does Kenneth do trying focus his friend on the unrealistic sales figures?
Well, he then ask about the products ACN is selling.
"(10:20:01 AM) kennethpwoodruff: personally, I would take that $700 and use it for online poker tournament entry fees. Think you stand to make a lot more that way
(10:20:20 AM) kennethpwoodruff: (10:18:56 AM) kennethpwoodruff: do you have to commit for a certain period of time?
(10:20:33 AM) CloseFriend1: sorry...was typing another message
(10:21:01 AM) CloseFriend1: it's the same ol' deal...you can do as little or a much as you want as a seller....
(10:21:24 AM) CloseFriend1: if you buy the product, the video phone is 2 years to get it for free like any cell phone
(10:21:44 AM) CloseFriend1: or $199 to cancel early....same ol' shit
(10:21:53 AM) kennethpwoodruff: what's the monthly rate?
(10:22:00 AM) CloseFriend1: 29 bucks
(10:22:03 AM) kennethpwoodruff: dude
(10:22:08 AM) kennethpwoodruff: I think you need to make a spreadsheet
(10:22:19 AM) kennethpwoodruff: I'm losing track of how much this is costing you
(10:22:59 AM) kennethpwoodruff: 696 for 2 years of phone service
(10:23:04 AM) kennethpwoodruff: 107 setup fee
(10:23:08 AM) kennethpwoodruff: 499 startup
(10:23:33 AM) kennethpwoodruff: 149 / year
(10:23:45 AM) kennethpwoodruff: monthly fees?
But his close friend has already "figured it out."
(10:24:21 AM) CloseFriend1: get 2 people going...and get 200 back....one more per person...get 600 back....so 4 people later....800 already back in your pocket just in the bonus.
(10:25:10 AM) CloseFriend1: 6 people....another grand"
So how does it end: cold, hard rational calculation meets networking inspired greed.
Who wins? Read all of Ken's article on ACN and Pyramid schemes.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=7fdf00d9-4da1-4334-9050-dca020b32caf)
Comments
How can you possibly put an MSN chat up between two people (no names actually listed) and call their conversation FACTUAL ?
Do you realize spreading this around the internet is totally considered slander. Why dont you check out the Better Business Bureau and do your "Due Dilligence" the proper way - see what the GOVERNMENT SITES actually say about ACN.
Not some stupid chat room or MSN convo - that you probably fully created for your own purposes.
Nice work. You call yourself a professional?
Posted by: REP from Canada | August 20, 2009 9:10 AM
Hi there,
I just was looking for news articles after our ACN video phone hit Primetime on the Celebrity Apprentice 22 March! First time in history something like this has happened. But I'm curious as to how you can think that ACN is a pyramid scheme??!!??
For instance...doesn't anyone think Donald Trump would investigate a company that he tried to buy? Don't you think that 7 of the major Cell phone providers investigated the legitimacy of ACN before partnering with them? How about Dish and direct TV, Telus in Canada, ADT home security, and many others!?!
Just because if the top guy puts in two and they put in two each etc and the shape of the organization is a pyramid, does it make it illegal automatically?
You guys need to research the companies you are slamming a little better before taking something and slamming it the way you do.
Think ANY business. Business owner at the top...gets all the money...distributes it to his CEO and COO....they distribute it to the Managers of their 4 departments...who distribute it to their 8 Foremen...who then pay their 16 shift supervisors, each who pay their 32 staff members! Isn't that a pyramid?!? I guess making money is illegal! Oh well...Have a great day and think of due diligence when you write stuff that other people read. The beauty and the bane of the internet and googling anything. Too many are too gullible and will believe anything they read!!
Posted by: Dave Williams | March 23, 2009 7:03 PM