This is a little off track from the usual post, but it has been bothering me for some time now.

I consider myself a guy who likes bleeding edge technology.  I am a sucker for that new gadget, program or website.  So when I first heard about the “American Communications Network” (ACN) and video phones that are going to storm the market and change the way we communicate with our friends, I must admit, I was slightly intrigued.  And the fact that Donald Trump featured it on the Apprentice last week, had my curiosity peaked.

I have been approached by at least four people in the last month telling me I need to check this out and sign up as a reseller.  They admit up front that it is similar to a pyramid, but would prefer to call it “Multi-Level Marketing”. I haven’t seen people this aggressive since the Amway glory days.

Out of the fear of being sued, I wont call it a flat out pyramid scheme, but it sure stinks.  First of all, you need to pay $500 to join.  Then you need to go and get other people to sign up before you can start making money.  Speaking to my recruiter, I show hesitation, so he says “Donald Trump endorses it, and video phones are the future”.  Hasn’t he mentioned this like six times already?

I tell him that “The Apprentice has sucked since season three, and it seems that whoever pays the most can get there product on the show”.  The very aggressive recruiter says, “but you can save money on your phone bill, as ACN replaces Telus”.  I tell him that “I can use vonage and pay way less that what ACN is offering”.  He says that “I can make money from signing other people up including friends and family”.  I quickly do the math on the coffee stained napkin and it seems to me that I would have to sign up 128 people before I start getting a decent residual.

For every person I sign up, and switch them over from telus to ACN, I get 1% return from there phone bill.  One Percent !!!!, how many people do I need to sign up to get the initial $500 back?  But wait, this month they are offering a promotion that for every person that I sign up underneath I get $100.  Ponzi?

Now, call me crazy, but if I am going to spend $500 on something that is new to me, a simple google search is in order.  One of the first results in google comes up with a page that says the following:

“The company’s practices have not led it to be criminally charged in the United States. But civil charges have been brought against the Canadian and Australian branches of ACN for misleading marketing practices—in those countries, ACN was labeled a pyramid scheme. The company recruits their reps by selling the American dream, but hearing of pyramid schemes makes some second guess why they got their friends involved, and why they signed up at all”.  It seems to me, that the video phones and lower phone bills is all a veil to hide a scam.

I have a great idea.  I’ll tell you what, you give me $500, and I will promise you free long distance for ALL of North America for the next ten years.  You go and sign up a couple friends at $500 each, and they can have free long distance AND I will purchase all three of you video phones.  Maybe I am on to something here.