ACN, a company operating out of North Carolina, launched in 1993 as a marketing arm for LCI Communications, a long-distance reseller. This initial partnership dissolved in 1998 when LCI was sold. Following the sale, ACN broadened its scope to include utilities, various communication services, home entertainment, and security systems.
The company's four original founders still lead ACN. Greg Provenzano holds the title of President, while Robert Stevanovski serves as Chairman. Twins Mike and Tony Cupisz are Vice-Presidents. Chip Barker joined the executive team as CEO in 2007, transitioning from his previous role overseeing ACN's European operations.
Information regarding the founders' professional backgrounds before ACN is limited. Provenzano's personal website indicates a "very successful career in the network marketing industry" starting in 1984, followed by a decade of industry study before co-founding ACN. Stevanovski reportedly held "senior positions with two highly successful marketing companies" after entering network marketing in the late 1980s. Mike Cupisz is credited with "building several successful companies" prior to ACN, and Tony Cupisz has "worked in direct marketing since 1986." Barker's pre-ACN history remains undisclosed.
ACN has faced regulatory scrutiny in the past. In August 2010, the Montana Commissioner of Securities issued a cease and desist order against ACN, alleging it operated as a "pyramid scheme." By September 2010, the order was vacated following a full settlement. The Commissioner determined that the concerning actions were "isolated instances" by specific Montana representatives, not reflective of ACN's overall business model. ACN agreed to implement additional training for its representatives as part of the settlement.
Another legal matter arose in June 2002 when ACN settled a case with Pennsylvania's Bureau of Consumer Services. This case involved allegations that a small number of Independent Business Owners (IBOs) engaged in "slamming," which is the unauthorized switching of consumer services. ACN disputed these allegations. The details of that settlement remain sealed, typically indicating a financial agreement without an admission of wrongdoing.
The Montana cease and desist order seemed to target issues within ACN's affiliate marketing practices. The company has not faced similar regulatory actions since, suggesting potential improvements in its operational conduct.
ACN's service offerings vary by market; the following details pertain to its US operations. Independent Business Owners (IBOs) market services that consumers commonly use, such as phone service, wireless, natural gas, electricity, merchant services, internet, TV, and home security. Most of these services are delivered through third-party agreements, with ACN acting as an intermediary rather than the direct provider.
Retail services include digital phone service at $24.99 per month. Local and long-distance phone service pricing fluctuates by region; a Michigan example showed $22.99 plus additional charges, or $38.99 for international and Asia-Pacific coverage, with further extras. Wireless service, branded as Flash Wireless, ranges from $32 to $67 monthly. XOOM Energy provides power plans for electricity and natural gas, with prices varying by state.
Satellite television is available through partnerships with DirecTV, costing $24.99 to $34.99 monthly, and Dish, priced from $19.99 to $44.99. Home security systems are offered via Vivint ($53.99 to $69.99 monthly) and ADT ($36.99 to $52.99 monthly). Internet service is provided through various third-party companies. Merchant services are branded as Anovia Services, an ACN offering, though specific pricing is not listed on the Anovia website.
ACN's phone services appear to be in-house. All other services involve third-party providers. While Flash Wireless and Anovia Services carry the ACN brand, the remaining services are direct partnerships.
The ACN compensation plan is not easily accessible on the company's public website. The "opportunity" page provides a marketing overview and then prompts visitors to sign up. The link to the full compensation plan is only found within the "Independent Business Owner Agreement," which appears after clicking "join." There is no prior indication that the plan will be revealed at that stage.
The compensation structure rewards affiliates for purchasing or selling services, which generate "Customer Points." Affiliate earnings are determined by these points combined with customer billing amounts. ACN also pays a "Customer Acquisition Bonus," tied to recruiting new affiliates and ensuring they become "commission qualified" by selling services.
Customer Points simplify commission calculations. Phone services yield 1 to 9 points, wireless 2 to 3, energy 1 to 5, merchant services 1 to 3, home security 1 to 3. A TV and internet bundle earns 1 point, TV alone 0 to 2, high-speed internet 1 point, and tech support 1 to 3 points. These points remain active for the duration of the customer's subscription.
ACN's affiliate ranking system includes eight levels. The entry-level "Team Trainer" requires a $499 fee. To become a "Qualified Team Trainer," necessary for commission eligibility, an affiliate must acquire 5 Customer Points and sell or purchase at least 3 preferred services. The "Executive Team Trainer" rank requires 7 points, at least 3 preferred services, and a Qualified Team Trainer in two distinct unilevel legs.
An "Executive Team Leader" needs 15 points, at least 4 preferred services, and an Executive Team Trainer in three legs. The "Team Coordinator" rank is achieved with at least 200 Customer Points across three legs, totaling 600 points. A "Regional Director" must have a Team Coordinator in two legs and a third leg with at least 200 points.
To reach "Regional Vice-President," an affiliate needs a Team Coordinator in four legs and a downline generating $150,000 in monthly customer bills, with a maximum of $75,000 from any single leg. A "Platinum Regional Vice-President" requires a downline generating $300,000 in monthly customer bills. The highest rank, "Senior Vice-President," demands a Team Coordinator in six legs (two of which must contain Regional Vice-Presidents, and one a Regional Director) and a downline generating $500,000 monthly, with a maximum of $250,000 from any one leg.
Direct Subscription Commissions are paid when affiliates sign up customers. This commission is a percentage of the customer's bill, scaling with Customer Points: 1% for 1 to 29 points, 3% for 30 to 39, 5% for 40 to 59, and 10% for 60 or more points.
Residual commissions operate on a unilevel structure. An affiliate is at the top, with personally recruited affiliates on Level 1, their recruits on Level 2, and so forth. ACN initially caps unilevel commissions at seven levels, with deeper levels unlocked through a generation bonus. Commissions are paid as a percentage of customer bills: 0.25% for Levels 1 to 3, 0.5% for Level 4, 3% for Level 5, 5% for Level 6, and 8% for Level 7. Energy subscriptions for large businesses are capped at four levels.
Eligibility for the first seven levels of commissions requires specific Customer Point thresholds: 10 points for Levels 1 and 2, 20 points for Levels 3 and 4, 40 points for Levels 5 and 6, and 60 points for Level 7.
The Generation Bonus allows affiliates to earn on bill volume beyond the initial seven levels. A "generation" is defined by the presence of ranked affiliates beyond the first seven levels. Once a Regional or Platinum Regional Vice-President is identified, the generation extends down seven more levels before capping, after which a second generation begins. If no ranked affiliate is found, the first generation extends throughout the entire leg. Each leg is assessed independently.
The generation bonus activates at the Regional Vice-President rank, with percentages varying by rank. Regional Vice-Presidents earn 1.5% on the first generation, 1% on the second, and 0.5% on the third. Platinum Regional Vice-Presidents earn 3% on the first generation, 2% on the second, and 1% on the third. Senior Vice-Presidents receive 2% on the first generation and 1% on the second. For large business energy subscriptions, the bonus is capped at one generation, paying 0.5%.
The Customer Acquisition Bonus focuses on newly recruited affiliates becoming commission qualified within thirty days. Commission qualification requires 5 Customer Points and the sale or purchase of at least 3 preferred services, with at least one preferred service sold to an address outside the affiliate's own household. Most services qualify as preferred, excluding some internet, TV, merchant services, and phone services. This bonus is paid over two generations using the unilevel structure, with a generation defined when an affiliate of the same or higher rank is found. Each leg is analyzed independently. Bonus amounts vary by rank: Team Coordinators and Regional Directors receive $50 per qualified affiliate in the first generation and $20 in the second. Regional Vice-Presidents (including Platinum) receive $30 in the first.