Perhaps one of the most revealing elements of a scam is
how the promoters demonstrate the value of their product, and especially how
little they know about their own service. Boycott Watch has written about the
ACN phone scam which operates as a
pyramid
scheme / Ponzi scheme. They recruit agents to sell more agent agreements
than actual phone sales to customers. The reason is because selling agent
agreements is far more profitable than selling the phone service they base
their company on.
Boycott Watch ran the numbers and we concluded that if you
just sold the phone service, you would need to manage thousands of accounts
yourself to be profitable, but that is not possible considering the time needed
to run that aspect of the business. It just does not work. ACN, therefore, is
only profitable for an agent if they sell more agent agreements to others,
which the company encourages. The problem is, sooner or later you run out of
people to sell the agent agreements to. In fact, sites like
this advertise ACN
success by selling more agreements to more prospective agents. The fact is if
you want to make money in ACN, You have to sell agent agreements, not phones.
That is why we call it a pyramid scheme.
Recently, someone identifying himself as an ACN agent setup
his phone in a coffee shop, making sure people could clearly see his phone
attached to his computer. Immediately, he took his cell phone from his pocket
and used to make a phone call. His computer was connected to his ACN phone, but
the brand new and shiny ACN was clearly for display only.
Boycott Watch President Fred Taub noted: "I recently saw
an ACN sales pitch in a coffee shop where the dealer told the prospective agent
'when this gets big, we are going to take it right to the President! Obama
won't be able to say no. This is too good!'"
Boycott Watch has posted several articles stating a person
should never pay to get a job or especially pay a fee to allow you to sell
something. If a company wants to hire you or to make you a legitimate agent
they will pay to train you in some place other than a coffee shop or someone's
own home. If it is an actual franchise, you have a defined territory. Anytime
you are just told to pay to sell to your friends and family, save your money
and walk away. |
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