The structure is a familiar geometric…
…shape involving “essential services.”
You can join as a customer, and a marketing rep. Either way do your research and consider the following:
As a consumer;
Compare the costs of what they offer to what you can get on your own as “apples to apples.”Example: their version of T-mobile: do a side by side comparison of rates, device costs, level of service, terms, and cancel policy for the cost. For other services: cost of kilowatt hours/therms, deductibles, monthly premium/membership costs, actual benefits/services, terms, required investments in equipment, other monthly fees (taxes, tariffs) terms, and service quality. Read and understand all of the fine print.
As a potential marketing rep;
Aka “IBO” or independent business owner (1099 independent contractor), know what you’re getting into before you commit:
Do all of the above product comparisons, and and know what’s enthusiastically promoted isn’t as easy, or simple, as alleged. Presentations are well-scripted, vague, and include products perpetually “pending release.” Terms also change frequently (at your cost) all clothed in the language of limitless profit and lifestyle potential while “helping others,” appealing to your good nature, and can become quite…preachy.
If you’re considering the IBO option, know that as a 1099 contractor you pay for everything and are entitled to nothing. You’re also responsible for all costs of start-up, doing business, paying taxes and other overhead, building your business, and will have to spend more $$ up front and beyond than it appears.
Any success depends on you investing significant sums and a large contact list to:
A- get yourself started and maintain basic requirements
B- sell services to family, friends, professional contacts (which become theirs by proxy for any who sign on)
C- recruit other IBOs.
Here’s the basics of what it will cost you to start and maintain your 1099 business:
1- required “one time entry fee” +$300, subject to change and added increases later at ACN’s behest.
2- required monthly subscription fee ($30+) for your back office, generic pass-through web page, and training materials, also subject to change/increase.
3- you are required to buy (and continuously pay for via ACH) a certain number of their services yourself, to accumulate enough “points” required to earn even base commissions on your sales, adding $hundreds/thousands more in up front and continuing costs, pitched as “saving you $$ on what you’re already paying someone else for.”
You’re required to replace by a deadline if you cancel, or you can’t earn, and are demoted and vulnerable to termination.
4- you are required to recruit others (and they must do all of the above as well) to earn the coveted “bonuses and lifetime residuals.”From the day you sign on, are required to maintain your monthly payments and must recruit for various levels in the compensation/leadership higherarchy within certain deadlines, or your buy-ins and requirements are subject to increase and you’re responsible for replacing loss of downlines due to attrition.
5- You must “be coachable.” The recruiting strategy (for obtaining service clients and new IBO’s) is:
YOU recruit for, host (and pay for) periodic in-person marketing events in your home or at restaurants, and are expected to offer an attractive spread, adding significant $costs to your overhead, which you may not recover.
6- You must constantly keep recruiting, to offset customer and IBO attrition and your startup/continued overhead.
7- Added expectations/costs; bi/tri annual “training” conventions @ vacation destinations you’re expected to attend, and get recruits to, and pay for promoted with videos of stadiums of cheering good looking, well-dressed 20-40 somethings.
The real profits go to ACN and your uplines thanks to you.
If you’ve worked insurance production, much of this will sound familiar, except you don’t make much on your transactions.
