Is ACN a Scam? Is it a Pyramid Scheme You Should Avoid? (2020 Review)

Welcome to my ACN review!

ACN or the American Communications Network is in existence since 1993. However, if this is your first time hearing them and you’re deciding whether to invest in the company or not, then you’re at the right place.

Is ACN a scam? Or is it a legitimate way to earn money?

These are important questions to tackle if you’re deciding to make an investment or not.

ACN is an MLM with taglines like “Great Business Opportunity,” “Life-Changing Opportunity,” or “Make More Income.”

But when you visit their website, they’ll tell you that profit or income is not guaranteed. It’s sort of misleading, right?

Well, this is a prime example of how MLMs recruit. They will do their best to lure you in, and when you fail, they’ll tell you that you didn’t do your best.

We all know the value of money.

I believe that when people make investments, they at least make efforts to succeed.

If you’re here to do a background checking on ACN, then I must first congratulate you on taking the initiative and time before making the investment.

So once again, is ACN a scam? Or is it your ticket to financial freedom?

Let’s find out…

ACN Review Summary

Product name: ACN

Founder: Robert Stevanovski, Greg Provenzano, and brothers Anthony and Michael Cupisz.

Price: More than $499!

Product Type: Telecommunication MLM Company

Recommended?: No!

my recommandation

What is ACN?

ACN stands for the American Communications Network. They are an international MLM (Multi-level Marketing) company that provides telecommunication services in over 23 countries. Their business includes internet service, wireless, satellite TV, and telephone service.

They are a North Carolina based company founded in 1993. ACN was founded by Greg Provenzano, Mike Cupisz, Tony Cupisz, and Robert Stevanovski.

What are the services they offer?

The following are some of the basic telecommunication services offered by ACN:

Internet Connection

The ACN internet service is offered through a variety of providers like Century Link, AT&T, Frontier, and Verizon. The service cost ranges from $20 to $100 monthly, which also depends on the internet service provider you choose.

Telephone Service

Make high-speed internet phone calls through your landline or smartphone. This service is priced at $24.99.

Satellite TV

ACN offers TV packages of direct TV and satellite dish. The subscription for this service starts at $39.99.

Wireless Service through Flash Wireless

It’s a phone service plan that may include with or without a contract. They also offer a family plan under this category.

It’s a three plan subscription that includes a green, yellow, or purple plan.

  • Green – plan ranges from $23 to $79 monthly.
  • Yellow – plan ranges from $23 to $69 monthly.
  • Purple – plan ranges from $23 to 64 monthly.

Xoom Energy

This is their natural gas and electricity services, which price may vary depending on which state you’re from.

They offer two different plans under this category—the surelock (fixed) and simpleflex (variable) plan.

The monthly rate for simpleflex fluctuates, but if you’re not comfortable with this setting, then you can switch plans or cancel it. On the other hand, the monthly rate for surelock is guaranteed, and rates will stay the same.

Home Security

ACN offers home security through a partnership with ADT and Vivint. It includes CCTVs, wireless security, and smart home control.

Prices for this service include a package of $53 to $69 for Vivint and $36.99 to $52.99 for ADT.

Anovia Processing

It’s a service specifically designed for your payment transactions like debit, credit, gift cards, or e-checks.

How does the ACN opportunity work?

At first sight, the ACN compensation plan looks difficult to understand.

But if you have experiences with MLMs, what they really want you to do are to recruit new members to build a downline. And then, your downline should make sales or recruit members for you to earn income—this is classic MLM.

When you look at ACNs’ compensation plan, your goal is to advance in certain positions by earning points. And you’ll be earning points by recruiting new members and billings from your customer and downline.

In my opinion, this is a red flag because it seems that the best way for you to increase your profits is by acquiring new members.

Imagine it this way—if the services or products they’re offering are competitive, then why are they focusing on recruitment rather than selling their services?

Below is the compensation package of ACN:

Monthly Residual Commissions

The package says that this will be your main source of income over time. It’s commission-based, which you’ll be earning from personal and downlines’ customer billings.

In general, MLMs say that this process will go into autopilot as your business and downline continues to grow.

Personal Commissions 

As you acquire more customers, you’ll be earning 3% and 20% commission from their monthly billings. The total commission is based on how many customers you have.

Is ACN a scam?
Source: ACN Compensation Plan

As you can see, the percentage goes up as you sign more customers. This strategy makes ACN stand from other MLMs because they somehow focus on service distribution as well.

This may be the case—the difference between percentages is somewhat less desirable. For example, some might not even bother to reach 59 customers for business owners within the ranges of 3% to 5%

Overriding Residual Commission

This is the commission you’ll be receiving from your downline. It includes people who you recruited and those your downline recruited.

The commission rates you’ll be earning are as follows:

is ACN a scam?
Source: ACN Compensation Plan

Although the above figures look good, it may not be as pleasant for people in the lower line.

Thus, this scenario makes it hard for ACN to offer competitive prices since they have also had to take care of its business owners.

Monthly Customer Bonuses

These aren’t commissions but bonuses based on the customer points you’ve earned.

This strategy is also called tap-rooting, which is an MLMs way to encourage business owners to sell and stay in their organization.

The compensation packages presented above are the basics. There are other computations which I didn’t include because it may only be relevant depending on your area. Click here to see their compensation plan.

How to become an Independent Business Owner (IBO) for ACN

The first step to becoming a representative for ACN is to fill out the IBO-ACN Agreement Form.

Afterward, you have to pay for the membership fee for $499. You have to settle this right away, or your application won’t be processed.

And then, you will now have access to their website and sell the products of the business. But take note that there are no employment contracts here.

It means that you’re a contractor or representative and not an employee.

Does it really produce money?

Unfortunately, I was unable to locate any ACN disclosure statement regarding IBO earnings.

But I found a blog with a quoted statement from what looks to be an agreement between the business owner and ACN.

It says that business owners are prohibited from disclosing their income or even stating their success rate. It was further stated that ACN does not guarantee profits or success.

This got me thinking, because one of their taglines is, “Make more income? We got you.” Or “Do you want to earn an income off bills you pay each and every month?” Such a statement, to me, is misleading.

Again, that is a classic MLM strategy.

If you want to earn income without any risk, then you may want to consider Affiliate Marketing. In it, you’re also marketing products and services of the business but without any payouts. It’s a win-win.

Let’s go back to ACN. While searching for IBO earnings, I found an ACN promotional video in Vimeo.

Is ACN a Scam?

Although the video was somewhat inspiring, the introductory statement was a bit off to me. The first sentence seems to suggest that only 1% or fewer achieve significant income.

The concerns about ACN aren’t unique. They are common in MLM business models.

In Jon Taylor’s book, the Multi-Level Marketing Unmasked, he revealed that almost 100% of people joining MLMs lose money.

Source: Multi-Level Marketing Unmasked
Source: Multi-Level Marketing Unmasked

MLMs will make all their efforts to recruit you because it is where they get most of their income. If they are confident in their services, then why shouldn’t they focus more on what they’re offering instead of recruiting members?

It is their way of cutting back costs because they don’t have to hire people or spend money on promotions and advertisements. What they do instead is create a network of people who are willing to pay a high price for a chance to gain financial freedom.

Although the compensation package may sound enticing, take note that the commissions you’re receiving are included in the price you paid. Also, remember that your upper line will also receive commissions as a result of your monthly billings.

What are some of the complaints receiving by ACN?

IBO complaints are as follows:

  • Expensive application fees – for a middle-class citizen like me, the price of $499 is ridiculously high for a company that doesn’t guarantee success. Plus, there are other options you can do to earn with less risk and lower or no startup cost.
  • You have to be a skilled salesperson – the prices for the services they offer aren’t competitive. And there are telecommunication services that are much affordable with better service. Thus, you better be good at selling if you are to make any sales.
  • It’s essentially a pyramid scheme – MLMs are pyramid schemes in disguise. The only difference between them is legality.

In regards to the services they offer, some of the common complaints are as follows:

  • Internet speed is incredibly slow – the most common complaint about their product is internet speed. For a costly internet connection, it should be at high speed, right?
  • Service cancellation or change is very inconvenient – another common trend you’ll find in any ACN consumer review is poor customer service. A lot of comments say that the waiting period is very long when they try to transfer services like their connection or attempt to cancel service.


The Donald Trump and ACN Controversy

If a famous person advertises a business, then they should be credible and a legit way to earn money—right? Well, that’s not the case with ACN.

From 2006 until he ran for the presidential seat in 2015, ACN and Donald J. Trump formed a business agreement in which he has to advertise ACN and their services. He even appeared in their promotional video touting that ACNs services are revolutionary.

The original promotional video is now difficult to find. But in the video, you can clearly hear him say that he knows the company. And he knows it for many years.

But in 2018, Donald Trump and three of his children were accused of fraud and misrepresentation by promoting the company.

In an interview with the Wall Street Journal, he denies any participation with the company and further states that he knows nothing of what they do.

my recommendation for newbies

Is ACN a scam?

No. ACN is not a scam. Although profit isn’t desirable and significant business growth is rare, you’ll still earn income.

It is an MLM (Multi-level marketing) company. It resembles a pyramiding scheme with the exception of legality.

Pyramid or Network Marketing is illegal because it’s purely money, and the risk is very high. It’s almost an unwinnable situation. You pay for something, and the chances of returns are very low.

On the other hand, MLM is legal because you get value in exchange for your membership or recruitment fee. However, you have resell the value you receive to gain profits. Or recruit new team members to build your downline.

You may call it a scam, but I’ll leave it to you to decide.

Keep in mind that there are other ways to earn income, which is risk-free and requires no payout.

One example is through Affiliate Marketing. If you have a website or video blog, all you have to do is to promote the products or services of a business.

You’ll earn income every time someone clicks the advertisement and buys the products or services of the business you’re representing.

It’s sort of like an MLM because you’re selling on behalf of a business. But Affiliate Marketing does not require you to build a downline and best of all… No cash out is required.

If you want to know more about Affiliate Marketing, click here.

Positive notes

They’ve Been Around For a Very Long Time!

They’re in the business since 1993, with over 1,500 employees. Staying this long in the industry and having acquired loyal follower’s means they’re doing something right.

The American Communications Network is not only providing telecommunications services to North America but worldwide.

Although not as competitive as other telecommunication services, they offer products we’re already familiar like phone services, internet, and television.

They Have a Positive BBB Rating!

They also have a positive BBB rating as of now, but it doesn’t entirely mean that they are a good business to invest in.

Keep in mind that there are companies in the BBB with a positive overall rating but have backgrounds of malpractices. Here’s a detailed report of CNN regarding the credibility of businesses with a history of malpractice that obtained an A+ rating in BBB.

Final Verdict + a Better Way To Make Money Online!

Is ACN a scam? Although they are technically a legal business, misrepresentation issues may lead some to believe that they are a scam.

For example, taglines like “make more income” or “good business opportunities,” and then they’ll state in the agreement that income and success or profit isn’t guaranteed.

But again, I leave that comment to you. I’m not here to influence your decision-making, but if you’re going to ask my honest opinion, I will tell you that you stay away from ACN or any MLMs.

Such type of business model is flawed, and risk is very high, and product turnover is slow.

Also, in an MLM setting, you’re not really a business owner because what you’re basically doing to representing the business and selling their products or services.

In this case, why not try Affiliate Marketing? Because it is essentially the same thing—you promote a business, but in Affiliate Marketing, there are no cashouts.

You advertise their product, someone buys, the company earns income, and you earn income—it’s a win-win situation.

All you need to do is to advertise their products and services. And if someone clicks and eventually buy as a result of your advertisement, then you earn a commission.

You don’t even have to work that hard because anytime someone visits your website or vlog, they will definitely see the advertisements.

Learn how the basics of Affiliate Marketing by clicking the button below!

this is why i recommend affiliate marketing

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