MLMEO - ACN scam or not? Is it pyramid or fraud? Are there complaints?
MLM meeting
Discuss ACN here!



MLM discussion forum - share your opinion!


Latest topics on the forum:
ACN - scam, fraud or opportunity?
Jan 29th, 9:02 am
ACN payment deductions 30 Aus Monthly
Aug 7th, 4:27 pm
Top ACN earners
Mar 7th, 7:09 pm
ACN and Donald Trump
Dec 31st, 10:00 am
ACN competition
Dec 25th, 4:59 am

ACN Scam

Is ACN scam (fraudulent or deceptive business scheme)? Good question. On one hand, it is legally operating MLM company, selling phone services, Internet, videophone. It operates in many countries on 3 continents. On the other hand, there ale lots of controversies about ACN.

MLM

First controversy is that ACN is a MLM. Many people think that all MLMs are scams. It is not true, MLMs are legally operating businesses. BUT, some people in MLMs may act dishonest and with no morality at all - they will lie to you in your face, promise fast riches, suck you into some schemes for making money of you. This is why legal MLM systems have bad opinions.

ACN rep drop out rate

It is no secret that in MLMs drop out rate is very high. Some people joke that it has higher human resources rotation than MacDonalds.

Many ACN reps will enroll anyone into the business, without aptitude test (although they may say that they need to check you capabilities). Anyone willing to pay $499 is accepted and makes them profit :)

The drop out rate may be only estimated, it is believed to be more than 50% yearly, some people assume that it is 98%.

Typical income


What is the typical income of ACN rep? That is a tough question. Some reps just join and do almost nothing, so their income is zero (and they have big expenses). Some work hard, use gimmicks and recruit lot of new people and earn substantial income.

Why is it hard to estimate income? Income rules changes. The percentage of phone bills earned by reps changes. The number of customers you must have to earn bonuses from new reps changes.

Do the math!

The income has two sources: phone/internet bills and new reps.

First source is small. The market is very competitive (many different providers) and the percentage of revenue is small (less than 2% usually). How many customers must you have to earn $100 monthly, if you get 1% or 2% of their phone bills? Do the math. if you have 40 customers, with 30$ monthly bill each, that sums up to $1200 in bills. 2% of it would be $24. Monthly.
Some may say - but there is also income from downline, from levels below, up to the 7th level. Well, theoretically it is. In practice, sometimes it is not. It is no easy to build structure 7 levels deep and maintain it, especially when drop out rate is high. This income is low but residual (if you keep the downline and not let it vanish due to drop out rate)

Second source is big. But it resembles pyramid scheme. This income is high but not residual.

There are also some Customer Acquisition Bonuses (CABs) - if you are on the level of "Executive Team Trainer or higher" - so you need to rise in the organisation first.

To sum up - high recruiting bonuses, small residuals income. The income thus depends on how many reps you recruit.

Expenses: about $499 (may change in time and be different in different countries) fee to join. Annual renewal fee (about $100-$150). Monthly fees - a few dollars. All is about $230 yearly ($499 more in first year). How many customers do you need to brek even?

Don't do ACN if you don't like it.

ACN - fbi & ftc

If you heard that FBI is after ACN - you probably heard bout Accenture Ltd. or Andersen Consulting. About FTC - it is possible, but I have no details yet. If you know something, leave a comment at the bottom of this page.

Complaints

There are many complaints about ACN. Not only are people complaining at forums, but also to institutions like Better Business Bureau, FTC, ACCC etc.

Legal battles

The Bureau of Consumer Services in Pennsylvania got complaints about "slamming" - switching to different provider without consent, and "cramming" (overcharging).

At 2004 Australian Competition and Consumer Commission (ACCC) investigated the Australian Communications Network Pty Ltd (Australian ACN). Alleged breach of Trade Practices Act from 1974. At 2005 ACN Justice Selway judged that australian ACN attempted to induce people to take part in a pyramid selling scheme. But federal court appeal reversed decision and ruled that "recruitment payments" did not fall under the definitions of the law. ACCC appealed, The High Court of Australia refused the ACCC's appeal.

SAS ACN Communications France was said to be gulity of misleading advertising by the Tribunal de Grande Instance de Paris at 2007 and ordered to pay 15,000 euros.

ACN complained against Pacific Bell at 1997 for violating 202(a) and 252(i) of the Communications Act, 47 U.S.C. 202(a) and 252(i).

Legal advisory committee

ACN has legal advisory committee, consisting of retired judges and attorneys, like Robert Stephan, former Kansas Attorney General, Chris Gorman former Kentucky Attorney General, Grant Woods (Arizona Att. General), Warren Pengilley - University of Newcastle professor emeritus, William P. McKeown, a retired judge from Canada Federal Court Trial Division and Supreme Court of Ontario.

Their task is to make the business more credible, and to assure the business is legal and ethical.

Pyramid scheme

Is ACN a pyramid scheme?

ACN is not pyramid scheme. But there are several resemblances. So anyone yelling "ACN scam pyramid scheme" shall take into consideration, that ACN is not a pyramid, although it resembles one.

What is pyramid scheme (snow ball scheme, chain scheme)? It is a scheme in which people pay fee to join, and then earn money from fees of those who have joined. Moreover, there is no selling of real products in the structure, sometimes no product at all, sometimes some 'fake' products (like 4 motivating books for $1000 etc).

Why ACN is not a pyramid? It sells real goods (phone services, video phone, Internet access).

Why ACN resembles pyramid? First, it is a MLM, all MLMs resemble pyramid somehow. But real MLMs are not pyramid schemes, they are legal businesses, so is ACN. Secondly, it resembles pyramid because the fee to join is quite high and the income from phone services is quite low (unless you have lots of customers.) The income of a rep from recruiting new reps may vary in time and in different countries, but in some times and places it is substantial in comparison to phone bills income. There is one important point - you need to sell services to get money from recruiting new reps. So it is unlike pyramid, when you just recruit new people.

Fraud

Is acn a fraud? Is ACN bad? Is it a swindle (swindle = cheating or defrauding). In my humble opinion it is not. But I wouldn't do that business either - due to reasons explained above.

Links:
Other site about ACN scam


136 comments will follow (newest first):

136
acn people just playing "MIND GAME WITH YOU" just be very careful they make only those sing with statements which strike your mind and you stay connected with acn. they are playing with people's feeling and money
IT IS A SMART PYRAMID SCHEME
2012-02-01 03:46:48
james
135
DO NOT join ACN before you LOOKING ON YOUR THE TC AND RD'S INCOME STATEMENT FOR AT LEAST SINCE HE STARTED ACN  COMPARE HOE MUCH YOU ARE MAKING *******YOU WILL FIND THE TRUTH RIGHT THERE******* THEY ARE BIG FAT LIARS OUT THERE, FOR THEIR OWN MONTHLY BONUSES THEY WILL SHOW YOU BIG DREAMS, BECAUSE THEY SHOW OFF TOO MUCH WITH THERE BMW AND MERCEDES CARS. WHEN YOU ASK THEM SHOE ME HOW MUCH MONEY YOU MAKE THEN EVERYONE HAS THE SAME ANSWER***** COMPANY DON'T ALLOW US TO SHOW OUR STATEMENT.. ACUTALLY THEIR ARE NOT MAKING ANY THING JUST BE VERY CAREFULL.
*********** DO NOT JOIN PLEASE***************
2012-01-28 14:37:17
David
134
Most of the people that are critical about ACN are people that are used to being completely lazy in their lives and their day jobs, have no initiative and therefore are unsuccessful in general.
Consider the source when you are seeking unsolicited opinions from the internet!
Would you ask your lawyer for advice on which dentist is best?
2012-01-25 21:17:17
Optimist
133
I've seen the word scam used a lot, the only scam is the one you pull on yourself. If you think you can become an IBO and sit back and do nothing, e-mail me your 499, because thats not how it works.
To make anything work well you need to put in an effort, put down the remote and get of the sofa. If you work part time at ACN while still holding down a job to pay the bills, it will take some time to get things moving. Once it starts however, it becomes its own force, a "rolling stone" as it were, your pay just keeps on growing.
There are far to many people in the world sitting on thier hands saying wheres mine, so and so got his now i want mine.
GET UP and get it.
You are paying for your lights phone cable etc. why not try to make some money on it at the sme time.
Its not hard, do the work get paid
2012-01-23 03:28:11
paul
132
"holy f*ck i wrote off $8974 last year for a 500 investment and a 9000 return thats great"

Just because it's "legal" does it make it ethical or ok to "take your piece of the pie"? The only difference between the "State" and the "Mafia" is one is legally permitted to use force.

No wonder the US has massive debt problems and the middle class is either being squeezed dry or dumbed down by Hollywood and the media. Businesses like ACN gravitate to the intellectual debtors of society who feed off the work of others. This is the future society unfolding and is catering to those who want the "easy ride".

What ever happened to "reaping what you sow"?
2012-01-21 20:06:15
Solutionist
131
to those of you who have never been to a seminar go what do u have to lose an hour of your time big woop and a pyramid everything is a pyrimid 95% of you people out there are on the bitch end of it you go to work bust your ass and make barely enough to get buy while your boss sits on his ass and gets paid twice as much as you if not more and as far as the 500 goes your a small buisness you can WRITE IT OFF ON YOUR TAXES RETARD it can be nothing more then a tax break as business you write everything off like gas internet food car % of rent/mogatge insurance and your going to say its a scam  put it this way sign up pay $500 buy your survices off yourself make what ever and your write offs are endless for 8 years then the goverment says you suck close your business  holy fuck i wrote off $8974 last year for a 500 investment and a 9000 return thats great
2012-01-21 08:17:48
tdp 111
130
I would like to thank David Downing - ACN Independant Business Owner for sharing his remarks and for demonstrating his intense lack of professionalism and respect for fellow human beings.  Remind me once again to not venture into anything with this company because my professionalism is something that doesn't need to be tarnished by comments of those who are 'Independant Business Owners'.

As a side note, you wouldn't see the successful owner of a major company making condescending and derogatory comments against his potential colleagues, would you? That is the difference between those with class, and those who do not possess it.

Thank you once again, for the recent invitation that I received by someone who appears professional will now be met with a flat out 'no', thanks to David Downings' unprofessional and derogatory comments. As a matter of fact, I will be sharing Mr. Downing's comment as my response.
2012-01-16 01:38:34
Karen
129
I've attended a few ACN meetings.  The few presentations I have been to the IBO(s) have all said the same thing.  It's not for everyone and not everyone makes money.  My buddy has been doing it about 6months, he has roughly 90 people in his network totalling just shy of 500 customers.  His income is plus or minus $5000.00.  I know a few other people involved, they're success isn't as great.  Why is that?  From what I've seen he has worked his rear off and the others haven't.  
The numbers that have been quoted to me so far seem to hold true.  Half your invites show up to the meeting, 20-30% join and 5-10% of them make it work.  Simple math - 100 say yes to come - 50 show up - 10-15 join - 2 succeed.  Hmmm sounds like the real world.  Everybody wants to complain and knock the 5 percenters in the world.  YOU Reep what YOU Sowe.  Wishing much success to those that want to be those 5 percenters      
                                               Brian B
2012-01-10 21:42:31
Brian
128
Some of you guys are a joke. I am a IBO in this incredible company! Some of you think this is a SCAM? Give your heads a shake! DONALD TRUMP, BELL, TELUS, VERISON, PLANET ENERGY, ADT of course are ALL involved in the ''scam''? I dont think so, Donald Trump himself has endorsed the company because when he WANTED TO BUY ACN they wouldn't sell it to him because we are so cash flush. ACN is the ONLY company he endorses and does not own. Where else can you own your own business for $500 and have the customer service done for you, your own online store, all the training you need and the support from your team? Go out and purchase a telus booth in a mall people... your looking at $500,000 minimum, I just spent $500 and have my own Telus franchise. Guys, do your homework, yes this business takes hard work and isn't a get rich quick, just like any other business.... you need to spend 3-5 year to build your business and clientelle in order to be sucessful. Thanks for reading
2012-01-09 22:40:03
David B
127
DON'T WASTE YOUR HARD WORKING $ 500.00 ON ACN,THERE IS NO TRUTH WHAT SO EVER IN ACN,THEY ARE SHOWING YOU IN THE VIDEO OR IN THE BUSINESS OPPORTUNITY MEETINGS,IF SOME ONE APPROACHING YOU THAT YOU CAN MAKE A LOTS OF MONEY, JUST ASK HIM SHOW ME YOUR LAST TWO YEARS OF CHEQUES HOW MUCH YOU ARE MAKING EVERY SINGLE MONTH, THEN THEY WILL GIVE YOU ANSWER COMPANY WON'T ALLOW US TO SHOW YOU THE CHEQUES***** IT ALL BULL SHIT**** .THE TRUTH IS MOST OF THERE TC/RD ARE STRUGGLING AND NOT MAKING ENOUGH FOR DAILY NEED, AND YOU WILL FIND CHEAPER SERVICES OUTSIDE,DON'T GET ANY SERVICE FROM ACN ITS JUST A RIP OFF
2012-01-04 07:07:54
David
126
ACN is a MLM, just like the Acai Berry Wine thing.  Except, you can drink the wine.  ACN doesn't matter anymore because almost everyone has a computer and can use Skype.  So why would anyone pay for something extra when they can get internet and video for the same or lower price a month?
2011-12-24 20:45:07
David
125
I was invited to the so called "presentation". The guy who invited me couldn't even tell me his business. He said it was telecommunications and energy. I knew something was up. I went anyway and it was the typical bs. Then at the end the "guests" were swarmed by IBO's and they tried to hard close you. I was kind of laughing as the IBO was trying to hard close me. They would barely let me leave. It was crazy. Everything was such a secret until you get in the doors. Don't fall for it people.
2011-12-23 09:55:18
Alan
124
What a run-around!!!  Finally got these people to "say" I have a refund coming after I mailed them a "required" registered letter requesting a refund and also a "faxed letter" as well.  Now they send me an email saying they will send a partial refund and only when I return the Starter Kit.  What Starter Kit???  I never received a starter kit.  Only then will they refund the remaining amount.  GRRR!  I made the mistake of signing up, paying $499 on the same night.  After sleeping on it overnight, I called ACN the following morning and told them I had mailed a "registered letter" requesting a refund.  They didn't even have time to send me a Starter Kit!  That was 8 days ago and they are still glued to MY MONEY!  They refused to act on my request without a confirmation of the Registered Letter.  I had to call them...they put me on hold and when she returned, she said, "Oh yes, we received the letter."  DO NOT GET INVOLVED WITH THIS SO CALLED COMPANY!  There is a reason why these people are loaded.  They keep every penny they get their hands on whether they are entitled to it or whether you're satisfied or not!  If you want to start a business, Start your Own Business and don't get involved in someone elses slave labor scam.
2011-12-17 15:12:14
Mama Gee
123
wow, so many great comments... thanks everyone. i think i`ll pass acn.
2011-12-16 06:37:44
jack
122
ACN IS A SCAM MY NIECE DID IT AND MADE ME JOIN JUST BECAUSE I HAD MONEY. IF YOU WANT TO MAKE MONEY, DO NOT JOIN, YOU'LL INVEST AND WILL NEVER SEE ANYTHING. NOW IF YOU ARE SOMEONE GETTING PAYED FROM THE COMPANY DIRECTLY LIKE SIMON ABBOUD AND NATHAN GOLDBERG THAN OBVIOUSLY YOU WILL MAKE MONEY, OTHERWISE FORGET IT.
2011-12-16 04:51:19
Lil Wayne
121
To david downing i would like too point out that your personal website as you call it, is just a clone like every other acn slaves website.
If you can even call them a website, as a kid at the age of 12 i ussed too build a 3 step homepage with more design and it was free.
An acn website holds around 10 pages, so 500$ worth of IT is a joke (sorry more ACN make belief and a lie that you see as truth)
2011-12-14 21:26:43
Mike van Leeuwen
120
I was offered a job with ACN and a very good friend adviced me it was a SCAM and that I had to pay $500 upfront. HECK NO!

BTW Sean..You should read your comment word for word and spellcheck..Have a good day!
2011-12-12 23:25:30
Anon
119
Everything about ACN smacks of dishonesty and deceit: Hiding who they are and what they do right up to the last second. Using psychologically manipulative techniques against family and friends. Selling the right to "sell the right." De minimis residual income. Obsolete products, deceptive customer service, and terrible customer support. Dozens of "gotchas" in their contracts and service agreements. A 99% failure rate. An ordeal to extract yourself from it.

Feel sorry for the people who have been ensnared by ACN. They're probably looking at between 6 months and 2 years of hell.
2011-11-29 19:32:04
Bill S
118
I am an ACN independant business owner (IBO). I sat on the sidelines for a few years closely watching a close friend of mine work hard at ACN, until recently I realized how successful he was doing with it, so i joined a few months ago. This is by far, NOT a scam! This is a business opportunity that does require dedication and hard work in order to achieve success. This is no different than any other business. Your level of success is reflected by your level of dedication. In reading all the above comments, I would like to point out a two major considerations that were overlooked and not mentioned. First, people are quick to point out that the residual income percentages paid to you are very low, however, keep in mind that these percentages will continue to grow as your customer base grows AND they will be paid to you as long as your customers keep there services (and this can be a long time in the case of gas & hydro)So, for a one-time sale you can potentially get paid...forever! Secondly, when you pay your entry fee of $499, what the above people neglected to tell you is that you immediatly are set up with your own personal ACN On-Line Store. This is a personal website that only you can access and allow any of your customers or potential customers to visit. From this on-line store, they can browse, research and even buy any of the various products that ACN has to offer. How easy is that! I can't tell you how many people I have run into on the fly and given them my business card for them to go and visit my Webstore.  ACN even has a Back Door Office to your website which they monitor for you. This tracks all your customers, the services they have purchased through you, the account statis..everything! This is like having your own secretary watch over your accounts,... and you can check it at a glance from any PC, anywhere at anytime! Now you tell me (anyone who has an insite to business operations) what do you think it would cost to have an IT come into your place of business, design and set-up a website, AND monitor it for you on a daily basis? Guaranteed there isn't an IT out there who is willing to do all that for $499. So in conclusion, the whiners out there that are slamming ACN as a scam, are people who are unmotivated with no desire to succeed in life (regardless of what business they get involved in). And I am especially ashamed of those who where a part of ACN and decided to whine without giving all the facts before posting their negative comments. These people must have been sleeping or playing with their I-Phones while attending the very informative ACN seminars that explain in great detail all angles of this business. I suggest to anyone that before making these negative comments about ACN, to take 1 hour of your time, and go to a BOM seminar, and listen closely before drawing any conclusions and posting them to the internet. If you can't do that, than you are lazy and have nothing better to do with your life than to sit in front of your computer and post unnecessary negative info on topics you know nothing about. Oh yeah, now that I'm done venting, I want to let you know that in a very short time, I have almost made back my entry fee in bonus's and have built a solid customer base with residual income. This business is not for everyone, however, for those who are dedicated and determined IT WORKS!!!

David Downing
ACN Independant Business Owner
2011-11-27 15:43:47
David Downing
117
I am not involved with ACN at this time but must tell you I get it in a big way.  I have spent 15 years running a profitable business with long hours and sacrifices.  i have made a good living at it.  here's the deal... if you work at anything hard enough with a solid business plan you will succeed.  Now there are people tha have no business being in business and in ACn or any other company there are those that will fail and those that will succeed.  Really be honest with yorself when you slam ACN or any other opportunity you got involved with.  Did you actually work at it as a business or dabble in it for a couple weks or months.  Did you do the math? did you stick it out?  DID YOU FOLLOW THE BUSINESS PLAN!!  iF YOU CAN'T ANSWER "YES" THEN STFU CRAWL BACK IN YOUR f'ING HOLE AND CARRY ON WITH YOUR LOOSER LIFE.
2011-10-01 09:48:37
aLIBABA
116
I am not involved with ACN at this time but must tell you I get it in a big way.  I have spent 15 years running a profitable business with long hours and sacrifices.  i have made a good living at it.  here's the deal... if you work at anything hard enough with a solid business plan you will succeed.  Now there are people tha have no business being in business and in ACn or any other company there are those that will fail and those that will succeed.  Really be honest with yorself when you slam ACN or any other opportunity you got involved with.  Did you actually work at it as a business or dabble in it for a couple weks or months.  Did you do the math? did you stick it out?  DID YOU FOLLOW THE BUSINESS PLAN!!  iF YOU CAN'T ANSWER "YES" THEN STFU CRAWL BACK IN YOUR f'ING HOLE AND CARRY ON WITH YOUR LOOSER LIFE.
2011-10-01 09:45:41
aLIBABA
115
You are absolutely right who said "Nobody uses these phones because t hey don't work right and customer service sucks"  all for $500.  I found out I could not promote something to friends and colleagues and so on that I dont like myself.
2011-09-22 21:17:42
susan
114
Hi Greg, thank you for your analysis. As IT guy you did it in a short,   insightful and informative manner :) I hope this will open eyes for some people, that ACN is not an apportunity, but a scam.
2011-09-01 08:26:26
Don
113
I'm an IT and network engineer from Los Angeles and several friends of mine joined the ACN cult in fall 2007. What I discovered from them after 4 years is that ACN commission is a joke. You only receive 1% for every $1000 and ACN only pays a minimum of $13. That means you need $1,300 in customer bills each month just to get a $10 check. The other $300 turns into a $3 fee for mailing a check. There is also a $150 annual fee. There are many things that they do not want you to know. All they brag about is you will receive up to 10% of your customers bills"  - it’s true but you need $10,000 in bills to receive a $100 check! Do the math before you join ACN. You're forking over $500 to someone you never met. The only people that make money in ACN are not talking about it.
2011-09-01 05:52:24
Greg
112
I Have Looked Into ACN Over the Past Few Years.  Originally Heard Of It Back In Torono, Canada. I Have Some Advice If Anyone Is Looking Into ACN . Thx!



noenergybills.weebly.com
2011-07-14 02:46:52
Tony Beau
111
Okay everyone. ACN wants to increase their bottom line by increasing sales for their products. They can't do this in this tough economy so they are using the oldest scheme fo advertising throught pyramid network instead of hiring legit sales people and or paying for expensive advertising through TV commercials, Newspapers, magazines etc. majority of all you suckers who buy into their sales pitch and cough up five bills learn the hard way that you can not get rich over nite and you will never be as rich as ACN cuz they set up the scheme so they can get rich. You are the pawn to make their scheme work. They are targeting the uneducated and desperate hardworking blue collar individuals who wish to get a head in life with a big fat carrot of how to get rich. In reality, you can not with ACN. Think about it. They set the rules to vidicate them from their distribution network. All the reps are out for themselves. ACN wants the end user as the customer. They dont care about the reps taking the heat for their miserable 1% commissions which could lead to 10% and so on. ACN is using the cheapest sales force and paying sweet FA for it. Dont be a sucker for these schemes!
2011-06-24 21:03:30
Joe
110
Some of your opinions (according to Dictionary.com: OPINIONS: a belief or judgment that rests on grounds insufficient to produce complete certainty...meaning you DO NOT KNOW anything, you are making it up and assuming) your opinions are just as unfounded and uneducated as what some of you claim the author of this article is due to his grammar and spelling. I am not saying that you are uneducated or dumb, I am just noticing that you are not educated on what ACN is or how it works, nor do you realize many other important things about the company.

The same percentage of people that make it in ACN are the same percentages that make it in life, in general-- so that should tell you something about the people. Success is a habit, & complaint = poverty.

Here is a lesson for all of you that complain about "paying to work" somewhere...

~ You can talk to every single Realtor you ever come in contact with, any person that works at a salon and has their own "chair" or desk where they do nails and MANY other businesses and you will find that they pay a hell of a lot more money than does an ACN rep.

I live in Los Angeles and have many girlfriends that work in salons and they pay about $375 per WEEK (52 times a YEAR that= $19,500 per YEAR) to work there and an ACN Rep can make considerably more money than they can! What you are failing to realize is that, like owning your own business as a hair professional, you are buying into a franchise with a proven name and a proven system who has done all of the hard work FOR you. You are not an employee, thus you make employer wages, not employee wages. Look into a McDonald's franchise and see if you can buy into their system for $1.2 Million, which it will take you on average about 3 years to turn a profit and ACN it takes you less than a month.

The only way to research is to get involved and find out for yourself-- how many of you have tossed away $500 on a bar tab, a phone that got stolen or dropped in the toilet, or the many other things we have all wasted money on with nothing to show for it?

I love what ACN is doing and it gives us ALL a chance to take some money back from companies like Verizon, Sprint, DirecTV and many others that have taken from us for so long, and we can also help others to save money. ACN just opened up Gas & Electric on the East Coast and it is coming to the West Coast soon-- how many of you would like to get apiece of the summer electric bills from A/C running all day and night?

The company works, the system works-- it's the PEOPLE that do not work and make it fail.

If you persist and believe, you will achieve, and that goes for your lives in general.

mp959@live.com
2011-05-10 23:54:22
Michael
109
The ACN has a proven system and solid products, the products you sell are Verizon, Sprint, ADT, Earth Energy, Clear wireless and dishnetwork and more. are they scams???

ACN is like ANY MLM, You have to work the system, if you don't your going to loose your money. if your not a risk taker or a social networker don't do a MLM, All MLM's have a large turn over, because people get hyped and sign up and then they dont follow through, they quit and then call it a scam
2011-05-02 06:36:18
pblinds
108
So many questions and not enough answers. In a world fighting for customers and companies watching over their reputations like a hawk, what do these companies all have in common? I am referring to major Fortune 100 icons like General Electric, DuPont, Time, Verizon Wireless and AT&T as well as some smaller ones like Travelocity, Peter Lamas and BSP Rewards Mall.

The answer is simple, somehow over the past 10 years and probably unbeknownst to them, they became aligned with a Multi-Level Marketing company known as Fortune Hi-Tech Marketing (FHTM). This was mainly accomplished because Fortune Hi-Tech does business with some of their authorized dealers and 3rd party affiliates. Fortune’s attempt to prove it’s legal by association has backfired, as it normally does. It is very difficult to build your reputation at the expense of someone bigger, when they have no idea who you are.

Should these companies have a say in who gets to use their brand in the pursuit of the almighty dollar? For the first time in FHTM’s history the number of companies represented by it on the menu board at fhtm.net is shrinking. How can that be good?

According to court documents and a major USA Today expose, last September, none of these companies had direct relationships with FHTM.
In March 2010, Monica Lindeen, the Securities Commissioner for the State of Montana, issued a cease and desist against Fortune HI-Tech Marketing for operating an illegal endless recruiting pyramid scheme. Since then Texas has demanded documents in an investigation, South Carolina AG Roy Cooper, has opened an investigation into Fortune’s business practices, as part of the FTC’s “Operation Empty Promises”, and its own home state of Kentucky has done the same.

Two blistering heart pounding class-action lawsuits have pummeled FHTM in 2010 as well. The first was filed in Federal Court in Kentucky in September 2010 and the other in Federal Court in Southern California two days before Christmas last year too. Neither of these lawsuits have been certified as a class yet, and mainly due to some extensive manipulation of the legal system by the Fortune legal team.

What is the cost of that battle? Some estimate legal costs upwards of $500K monthly. That certainly will take a huge chunk out of any business’ cash flow. Fortune is not the first MLM or pyramid scheme to be involved in major lawsuits. Amway just agreed to pay a record settlement of close to $150 Million. Most top law firms and executives know they can’t win these types of suits, and mainstream media leaves a negative impact on their business. Attorneys have very little defense to RICO and pyramid scheme allegations, and after spending millions trying to defend the allegations, usually make arrangements for settlement conferences. They may win some of the small battles but not the war. What is the depth of the scars these lawsuits leave to deter others to join?

So the important question now remains, why did these huge conglomerates allow their names and reputations to potentially be smeared by a company like FHTM? The answer is simple - they didn’t know what was happening.

According to ex-representative, Joseph Isaacs from Tampa, Florida, “When these companies find out that their trademarks, names, logos and reputations are being used by FHTM in order to aide FHTM in proving its’ legitimacy they will issue a cease or desist, insist on the actions to stop or not allow FHTM to market their products”. Which others will walk when they find out the real business model and litigation history of Fortune Hi-Tech?

As of March 2011 every one of the companies listed above has either issued a cease and desist or no longer allows itself to be aligned with Fortune Hi-Tech Marketing. How has this affected their aura of legitimacy? How do they explain all of this to new and even existing independent representatives?

In reviewing some FHTM business presentations on YouTube, it was apparent that the logos of GE, DuPont, Verizon and AT&T were there for one reason. What are the repercussions of only being legal by association? According to Joseph Isaacs, “Top leaders would tell prospects during the business presentation that they must be legal because no iconic Fortune 100 company would affiliate with a scam”. “All of these major companies sent their CEO’s and legal teams to meet with founder Paul Orberson to evaluate FHTM and check out their books. This cannot be so and was nothing more than a lie used to recruit”, he added. What rhetoric do these leaders use today to explain the loss of such major brands? Only time will tell.

Will FHTM leaders and owners blame the latest Verizon fiasco on the reps like they did in their announcement pertaining to DuPont only a few weeks ago? How long will this saga continue? Which other company will research the true business model of Fortune Hi-Tech Marketing and un-align themselves next? It is too early to tell but this story is far from over.

If the massacre continues then Fortune will be nothing more than a vitamin and dog food MLM. That is not very hi-tech and not too many fortunes will be made by affiliation. How much representative revenue has been lost as a result of these major companies walking away? How many current representatives are scrambling to replace so many customer points? How many Regional and Executive managers won’t get bonuses because their team points are greatly depleted because of the latest loss? We searched high and low for the answers but didn’t find any.
2011-04-12 00:41:25
Harry Zen
107
<iframe title="YouTube video player" width="640" height="390" src="http://www.youtube.com/embed/LMIQ_H3bFq8" frameborder="0" allowfullscreen></iframe>
2011-04-12 00:39:34
Harry Zen

See more comments »

Add your comment


CAPTCHA

No HTML allowed. URLs will be linked with nofollow attribute. Whitespace is preserved.

Table of contents:
ACN | videophone | ACN Scam

Other MLM companies: ACN
Monavie
USANA
XanGo
uVme



Contact information: e-mail: office [at] mlmeo.com   Phone: 1263446783 All rights reserved