Introduction
The following study was performed for a Canadian university project in order to determine the income potential of the ACN business opportunity. The study involved a sample of 12 individuals who gave statistics on their time with the company, the amount of income they had received (from bonuses and residual income), and the amount of money they had spent on the business.
Explanation of Terms
ACN
- ACN is a Multi-Level_Marketing business opportunity that offers its independent representatives the possibility of earning income through the sale of telecommunications and utility services. Income is earned residually as commission on a customer’s bill as well as in ‘Bonus’ Form for recruiting new independent representatives.
Residual Income
- Residual income earned through ACN refers to the portion of a customers monthly bill that is earned by the ACN independent representative who sold that customer their service. In terms of a long distance phone plan, residual income is earned in the amount 1 to 10% of a customer’s long distance bill.
Bonus Income
- Bonus income refers to the amount of money an Independent Representative earns by recruiting others to sign up as Independant Representatives. The fee to sign up is approximately $500 in the United States. This money is not paid directly to the recruiter. Bonuses are structures such that income is made for many levels (the individual who recruited the individual, who recruited the individual, etc) Additionally, bonuses are not earned as soon as a new representative signs up, first that representative must secure a sufficient customer base (approximately 2 – 3 customers.) The exact bonus structure changes depending on the country of residence of the independent representative. For example, in the US and Canada a representative qualified to earn bonuses earns approximately $200 for successfully recruiting and ‘qualifying’ 2 new independent representatives.
Money Spent on The Business
- This term refers to the amount of money a representative spent in order to carry out his/her business. It includes items such as gas for travelling to events, admission to events, the ACN sign-up fee itself, etc.
Study Results
Below are the results of the study. The results include several metrics that we feel are useful for evaluating the profitability of the ACN business opportunity.
- Total Average (mean) Monthly Income $1.53
- Mean Monthly Income from Residual Income: $1.25
- Median Monthly Income from Residual Income: $0.00
- Mean Monthly Income from Bonuses: $20.00
- Median Monthly Income from Bonuses: $0.00
- Average Time in Business: 16 Months (From Join Date to Present or Join Date to Quit/Non-Renewal Date)
- Average (mean) Total Money During Time in Business: $24.41
- Average Money Spent on Business (Excluding Sign-up Fee): $125.00
- Average Money Spent on Business (Including Sign-up Fee): $625.00
- Average Percent of Sign-Up Fee Earned Back: 4.9%
- Number of Participants who Made their Sign-Up Fee Back: 0
- Average Percent of Total Money Spent Earned: 3.2%
- Average Total Loss as a Result of ACN: $605.00
- Normal Distribution Predicted Chance of Earning at least $500: less than 0.5%
Highlights
None of the study participants earned more than $220. All of the participants paid at least $500. The average person lost a total of $605 on their overall ACN endeavour.
Conclusion
The study results demonstrate that the potential profitability of ACN (given a normal distribution performed on the study data) is less than 0.5% – That is to suggest that fewer than 1 in 200 people who register with ACN will recover their initial $500 investment. The study was small but it is believed to be sufficiently large to predict the potential profitability for representatives who sign up at the present date or later – representatives who signed up years ago could not accurately predict profitability using the above statistics.
Contribute to the Next Study
Do you have data on your own experience with ACN? Submit your results to acnsurvey@bindone.org – we will be publishing a second study that relies on Internet submitted data rather than personal interview data.
Are you guys really quoting a study of 12 reps? You guys must not realize that the Canadian Gov’t requires ACN to disclose the results of the average rep in the country based on 100% of the active reps who are signed up.
The average ACN Canada active Independent Representative in 2008 earned over $500.
Hi Anthony,
We just publish independently written content here so that it gets some exposure and can help anyone who wants to use, share, copy or contribute to it.
I can see how a sample of 12 might not accurately predict real results, could you show us the link to the more formal study?
Yes – I would like to see that survey very much.
Also – what is the definition of ‘active’ if you’re telling me you actually believe that the true average salary of a Canadian independent rep is more than $50 a year, I have to assume you’re kidding. Outside of this study of 12 I know more about 100 members within ACN and there are only 2 who make more than $200 per year (mind you, they do make A LOT more) I think the median is a better measure here as the mean/average would be heavily skewed by those at the top making all the money – the median would be far more accurate for people considering starting ACN at present.
I’m fairly new to acn, i have to say (sadly), the study results seem pretty accurate based on the people in the business that i’ve met so far. obviously the presenters make a lot of money as they are near the top of the .. dare i say it.. pyramid.
i would like to see a study with more participants, people who have been in the business between 1 and 3 years maybe
i would also like to see the acn survey Anthony mentioned, i’ve heard it referenced (and noticed they mention it during the promotional dvd) why do they use the word active? what are the criteria for being an active representative?
ACN rep…then you need to be ON YOUR UPLINE…They should have explained to you that you will be mentored. and if they were unwilling to do that, you shouldn’t have joined. I’m in ACN and currently make more than my old job paid me. I take personal responsibility for everyone who comes into my team. The hardest part of this is getting started. If you know someone who wants to make some extra money, then take PERSONAL resposibility for helping them to make that money not to pay it. THERE is one BIG secret to any MLM. The secret is to NEVER STOP.
Many partners aren’t trained.
I hold training twice per week. I have my partners (and their partners, and so on and so on) bring 1-2 people every week, and they have to attend at least one session per week. The people they bring about 70% of the time become customers, and 10% of the time they become partners, and 20% of the time they do neither), also be aware that after a few months and making money, I bring my customers to another training, Conversion rate at that level is above 50%. When you show the opportunity to at first, they are generally nervous because you might quit. When they know you are in it for the long haul and making money, they are much more willing to be mentored.
My partners have attainable goals. They are to continue with the program until they have three partners, and then they are to support their partners until the partner has their three partners, and so on… Once their partners have three partners, and there partners have three partners, they SHOULD be at 20-25 services. From then on, they can choose whether to continue coming to the trainings. I’m pleased to say that I have 5 personal “legs” and each of them has at least 2 partners, and each of them has at least 1 partner. The system has been working for the last 9 months, and I quit my job in May. I’m not making like $20k/mo, but I have replaced what I was making at my job.
1st month I made $600.
2nd month I made $1400.
3rd month I made $1800.
4th month I made $2300.
5th month I made $2900.
6th month I made $3400.
7th month I made $4100.
8th month I made $4700.
9th month I made $5300.
Notice it keeps going up as you work the business. The majority of people are promised quick money, and they quit the business very quickly.
Recently, I had two partners join in April, and their first checks were just under $1000. Yet in June they quit…I DON’T GET IT!
And here’s the stupid part, I’m working with the 6 people they introduced the opportunity to and they are continuing to work and each of them has made their money back.
In closing, don’t get involved unless you’re willing to work!!!
With any multilevel marketing opportunity, persistence is the key. Anyone who thinks they can get started and be making big money in short period of time are not getting informed properly. Yes there are a select few achieve this success and they are the ones you hear about. Anyone can make it this business and unfortunately there are far to many who try it for a while and when they don’t make big money in their few months o rtheir first year, they drop out. The they get on the internet and blog about how it didn’t work. Do you think the big name companies would be partnering with ACN if it was a scam? It works for those who work it.
This company has a good solid business model with essential services which is different than most MLMs. They also have a better compensation plan, training and helpful website that keeps getting them awards.
I am a rep that joined 5 months ago and have just started making money but I was not trying very hard. Now that I See that is works, I am going to work harder and blow your averages out of the water personally. Success does not land in your laps.
What makes ACN a scam is that there is no training to sell the underlying telecommunications products. The products are simply the method which ACN avoids being labeled strictly a pyramid scheme. To further this scam representatives often lie about how much they make. Team Coordinators often state they make in a month what most people do in a year. ACNTruth.com has proof in the form of a TCs paystubs and income declarations that TCs only make about $1,300 per month.