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.

