Is American Communications Network (ACN) a Scam? Scam or Legit?

You've probably heard of American Communications Network from one of your friends who moonlights as an ACN reseller or your sister-in-law who's always on the lookout for opportunities to earn some extra cash.

If you're interested in learning more about ACN, then you've come to the right place.

Today, we're going to discuss what ACN is all about, what it offers, and how independent business owners make money through its MLM program.

But most importantly, we're going to discuss its legal issues and whether ACN is a scam or not.

Let's begin!

American Communications Network (ACN) Summary

Product: American Communications Network (ACN)

Price to join: $499

Rating: 30/100

Do I recommend? No

Summary: American Communications Network or ACN is an American direct selling company that offers various products and services, such as telecommunications, mobile phone plans, internet, energy, and more. It is based in Concord North Carolina, but it has since expanded to other countries. It was founded in 1993 by four American entrepreneurs.

But ACN has been accused of unethical business practices, and it seems that the company has a problem shaking those accusations off. Is it a scam or a pyramid scheme? Find out more below.

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What Is American Communications Network (ACN)?


American Communications Network (ACN) was founded by Mike Cupisz, Tony Cupisz, Robert Stevanovski, and Greg Provenzano. These entrepreneurs had extensive experience in direct sales, but the opportunities offered to them at that time left much to be desired. Instead of pursuing other direct sales opportunity, what they did instead was create ACN.

Long-distance services were the very first products ACN offered to consumers. The company grew rapidly, and soon became one of the fastest-growing businesses in the country. The company also uses network marketing or MLM as its marketing strategy. ACN has attracted the attention of publications, such as Fortune Magazine, Success From Home magazine, USA Today, Success, the Wall Street Journal, and more.

The days of long-distance services are long past, so ACN has expanded to other industries including energy, telecommunications, and essential services. The products sold by ACN resellers or independent business owners (IBO) are available for residential and business owners. The company is a member of the Direct Selling Association (US) and the Direct Sellers Association (Canada).

According to its website, ACN has expanded to 26 countries in Asia-Pacific, Europe, and South America. Apart from its headquarters in Concord, NC, it also has offices in Australia, Canada, the Netherlands, Japan, Korea, Mexico, and Poland.

Legal Issues


Between 2000 and 2001, customers lodged a complaint against ACN with the Bureau of Consumers Services in Pennsylvania. The customers alleged that ACN independent business owners switched their services without their knowledge or authorization. ACN was forced to settle the dispute.

ACN ran into legal trouble once again in 2010. The Montana Commissioner of Securities and Insurance accused ACN of operating a pyramid scheme and issued a Cease and Desist Order against the company. ACN reached a deal with the Commissioners, and its leadership agreed to retrain their IBOs to ensure that they would not engage in unethical practices again.

ACN's legal troubles came back in 2019. This time, it involves no other than President Trump and three of his adult children. Trump and his children were accused of racketeering because of their involvement with ACN. The allegations were dismissed by a federal judge in July 2019.

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Success is Rare at American Communications Network


Success is rare at ACN. In fact, according to its earnings statement, fewer than 1% of independent business owners reach the RVP and SVP levels. Further, the earnings of those who have reached those ranks are not typical. That means that the majority of independent business owners are stuck at the bottom.

ACN has further stated that IBOs may not earn and may even lose money during the process. Your earnings in this business (should you decide to become an ACN IBO) will depend on your skills, personality, experience, and effort.

How Much to Join American Communications Network?


ACM is an outlier among other companies and opportunities we have reviewed thus far. Why? Because its start-up fee is very steep, so if you're looking for a way to earn money without shelling out a high initial investment, then this is not the opportunity for you.

The start-up fee for independent business owners is a whopping $499 for a single year term. But the fees don't stop there. You also need to pay a $10 account maintenance fee. After one year, you're also required to pay $199 annual renewal fee. 

What is American Communications Network's Compensation Plan?


There are two ways you can make money with American Communication Network as a reseller.

The first way is by residual commissions. These are paid every month, and are based on your or your downline customer's usage/purchase of ACN services.

The second way to earn some cash with American Communications Network is through bonuses. These are paid by ACN every week and every month. The bonuses you will receive are based on the number of customers you bring in every month.

But before we continue, let us first check out the hierarchy of American Communication Network resellers, as well as what it takes to climb the ranks.

Customer Qualified IBO

To become a Customer Qualified IBO (CQ), you need to acquire and maintain at least seven personal customer points from at least three ACN services.

Executive Team Leader (ETL)


IBOs need to acquire and maintain 15 personal customer points and 10 Customer Qualified IBOs in at least three legs to become an executive team leader. You can also qualify as an executive team leader when you reach at least 60 personal customer points.

Regional Director (RD)

To become a regional director, you need to have a total of 600 customer points. The points can be personal customer points or even from your team. Each team must have a maximum of 200 customer points per leg.

Regional Vice President (RVP)

You are eligible to become a regional vice president if your team has one Regional Director in four separate legs. Your team should also accumulate a total of 3,000 customer points. Each leg should have a maximum of 1,000 points.

Climb the rank to Regional Vice President Gold when your team accumulates a minimum monthly downline billing of $200,000. Be promoted to RVP Platinum by acquiring a minimum monthly downline billing of $300,000.

Senior Vice President

To become a senior vice president, you must have one RD and two RVP in six separate legs. The minimum monthly downline billings must be $500,000.

I. Monthly Residual Commissions

Monthly residual commissions are based on your personal and team customers' monthly billings. So, make sure that you acquire more customers to earn personal commissions. You can earn anywhere between 1% to 10% of your customers' monthly bills. The total commission is based on the total customer points accumulated. Help your team members acquire customers to generate this type of income.

II. Weekly Overriding Customer Acquisition Bonuses

Help the IBOs you have sponsored become Customer Qualified within 30 days from enrollment to earn the overriding customer acquisition bonus.

Learn more about ACN's compensation plan here.

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What Products Does American Communications Network Offer?


American Communication Network's services are divided into residential and business. Check them out below.

I. Residential customers

Home Phone


Call your friends, family, or clients using your landline and high-speed internet connection. Calls are unlimited to over 80 mobile and landline devices. Some of its features include call blasting, call forwarding, call waiting, caller ID, and more. Available for $24.99/month.

Gas & Electricity

ACN provides gas and electricity to local consumers through its utility arm, XOOM Energy. Its services are available in 19 states, as well as the District of Columbia.

There are two plans available for consumers. First is the fixed-rate plan, while the other is a variable rate plan. Consumers who subscribe to the fixed-rate plan will have the same utility rates every month no matter the fluctuation in the market. Those who subscribe to the variable-rate plan, on the other hand, will buy their gas at prices set by the market. This can increase or decrease depending on market prices.

High-Speed Internet

High-speed internet service is provided by AT&T, Spectrum, and Frontier.

Satellite TV

ACN is affiliated with two satellite TV providers. First is Dish, and the second is DirecTV.

Security & Automation

ACN is affiliated with Vivint SmartHome, a company which offers home security systems, security cameras, and other home automation products.

Wireless

Customers can also subscribe to Flash Wireless through ACN. They can choose from Flash Green or Flash Yellow wireless plans. These wireless plans range from $23 per month for a single line package to $212 per month for the family plan.

Bundled Services

If you become an ACN direct seller, you can also offer bundled services to your customers.

II. Business Services

Payment Processing


This is in partnership with Sphere, a payment solutions provider to industries such as transportation, insurance, education, and healthcare.

Other ACN services for businesses include payment processing, security and automation, satellite TV, and wireless plans.

What I Like About ​ACN


Here are some of the things I like about ACN.

ACN has been around since 1993

If longevity is the measure of success, then ACN is well and truly qualified. It has been around since 1993 and has expanded beyond the shores of America. If you're looking to become an independent reseller for a relatively stable company, then ACN is a good choice.

The variety of products and services offered

ACN offers a dizzying array of products and services independent business owners can sell to customers. These range from telecommunications to entertainment to energy. IBOs can also offer products associated with security and automation, payment processing, and more.

What I Don't Like About ACN


High registration fee

ACN's registration fee is probably the highest we've covered here so far. It costs $499, and there are only a few people that can afford that ridiculously high amount. If you think that the fee's going to get better after one year of working as an IBO, then think again. You need to save up another $199 for the annual renewal fee. No wonder people feel like it's a scam.

Its legal issues and numerous complaints

Whether the company deserved it or not, there's no doubt that the multiple legal issues ACN accumulated over the years have tarnished its reputation. Its latest legal problem involved no less than President Trump himself and three of his adult children.

In spite of receiving an A+ rating with the Better Business Bureau, ACN's BBB page is still flooded with complaints. The complaints include unsatisfactory service, unauthorized transactions on customer's credit card, failure to vet customers resulting in identity theft, and more. You can read all the complaints against ACN here.

The MLM business model

MLM, at its core, is flawed. People who work as direct sellers were often misled by their recruiters who promised them easy money. They failed to take into account their sales experience, skills, and even personality. They also tend to overestimate consumers' goodwill towards MLM. That's why they are often surprised and frustrated when they don't earn a lot.

Is American Communications Network A Scam?


The good news is ACN is a legitimate company. But there has been a lot of complaints and legal issues surrounding it that it's difficult to recommend it to anyone. Plus, there's the issue of the ridiculously high registration fee that costs $499. The annual renewal fee is no better (you need to shell out another $199).

Is ACN worth your time and money? Sadly, no. There are better opportunities out there if you are looking to earn a little money to supplement your income.

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