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ACN started in 1993 and is a telecommunications company. They specialize in local and long distance calling, internet, wireless services and home security.
Basic Matrix Payout
(Thanks to Rene’s Comp Plan Breakdown)
It’s not 100% complete; it does not include the Override bonuses and Generational Override bonuses but it’s probably actually enough for ACN.
BASIC MATRIX PAYOUT
By Level Accumulation
Level # Reps Amount Total Commission Total Payout # Reps Amount GWT Comparison
0 1 $- $- $-
1 3 $100.00 $300.00 0.25% $0.75 3 $0.75
2 9 $100.00 $900.00 0.25% $2.25 12 $3.00
3 27 $100.00 $2,700.00 0.50% $13.50 39 $16.50
4 81 $100.00 $8,100.00 1.00% $81.00 120 $97.50 In GWT, 120 ppl = $960 (985% more)
5 243 $100.00 $24,300.00 2.00% $486.00 363 $583.50 In GWT, 363 ppl = $2904 (498% more)
6 729 $100.00 $72,900.00 3.00% $2,187.00 1092 $2,770.50 In GWT, 1092 ppl = $8736 (315%)
7 2187 $100.00 $218,700.00 8.00% $17,496.00 3279 $20,266.50 In GWT, 3279 = $26,232
Total Reps 3280
The above example is based on having your 3×7 matrix completely filled out where each person spends $100 on their services.
All of the ranks and how to achieve them can be found here…
There are ex-ACN reps currently in the GWT business and for these ex-leaders, their challenges were:
1. Constant competition with other telecommunications company in the network marketing space and also in the regular commercial space. Pricing is very competitive.
2. Losing ranks and rebuilding the team
Must acquire and maintain 6-8 customers depending on the service to receive Customer Acquisition Bonuses.
GWT Comparision – 2 personal sponsors, one on the left, one on the right qualifies you for life. No need to maintain.
Basic Matrix Payout Summary
A full 7-level trinary tree with 3280 people produces $20,266.50 USD per month passive/residual income. Only RD’s, RVP’s receive 1-3% of 7th level downwards. In other words, most of the money that can be earned is only for those that reach the top meaning most people don’t make this kind of money.
GWT Comparison – There are no levels as you receive the volume for infinite levels deep. Plangsten members can earn $20,000 USD per month, Gold can earn $40,000 CAD per month, Diamond can earn $120,000 CAD per month passive / residual income. For 3280 people at Platinum, you would earn $49,200 USD per month.
Important: The reality of a matrix is that it never fills out perfectly on each level. Because ACN has no horizonatal, vertical dynamic compression, once you have an empty spot, it leads to more empty spots unless you fill it yourself. The history of every company with a matrix is that the first 2 levels can be filled, but from the 3rd down to the 7th, it’s very hard to have those spots filled out. In other words, to have on the 7th level, 2187 people there, is next to impossible. You’re lucky to even have half of that, or even a quarter of that. So the promise of having $20,266.50 USD/month is unrealistic. You need to take that number, and divide it by a third at the very least so around $7,000 USD/month.
I know some people who will try to argue that you really have more sales on each level because the 3 people who are there may sell 20 customers each of $100 so you’ll have $2000 instead of $100. Either way, if you had those sales in GWT, you’d still be making tons more.
TT, ETT, ETL, TC, RD, RVP, and SVP. It’s possible to lose ranks or have someone in your team match your rank you lose out.
GWT Comparison – There are no ranks in GWT so this will never happen.
Personal Residual Income
It’s possible to earn 2-8% based upon YOUR personal service sales.
GWT Comparison – Because we have no ranks or levels at GWT, a new member starts earning the same amount as any other member which is 10% of the volume of you and your entire team’s volume.
Customer Acquisition Bonus Schedule
Within the first 30 days, this bonus is available. This is known as the “Fast Start” bonuses in this industry. They vary on the rank you are in and must be within the first 30 days.
GWT Comparison – Regardless of whether someone joins today, or next month, or the month after, the sponsor still receives $50 CAD per person they sponsor regardless of time.
Note: There are no bonuses received for bringing in a new member.
GWT Comparision – Regardless of whether someone joins as Gold, Titanium, or Platinum, the sponsor receives $50 CAD per sponsor.
The one thing that people often think is the main purpose for ranks, is for motivation. However, the truth is that ranks only serve one purpose which is to reduce the flow from funds from the company, to the members. A lot of times, people are just short of a qualification and lose the bonus. Where does that bonus go? Back to the company. The reality is that you actually deserved the bonus for each person that you brought you, but the company is just keeping it from you. Or, the company’s not making enough money through their product/service to pay you out.
Due to the way ranks work, it often promotes you to want to focus on your weaker team. Reason being is that if someone exceeds your rank, you start to lose money. They have other ways of trying to pay you money, but you still lose money. In network marketing, if you have someone doing very well in the business, you want to 100% support them and give pour fuel to the fire. With ranks, you don’t want to help the stars in your team.
ACN’s compensation plan is heavily focussed on production, production, production. In other words, how many people you can sponsor into the business along with your team. They try to tell you that the residual income comes after a bit of time, but in reality, it almost never comes. Because of the way the Matrix system fills out, it always narrows in towards the 4-5 level and even thinner during the 6-7 level and downwards. So the residual income that you are told you can acheive, will never really happen.
All in all, we are all after passive income as that is what will allow us to leave our jobs. Unfortunately, most of the top income earners at ACN don’t stay there or tend to leave because the passive income is not stable. Ones cheques can be $5,000 one month, and $2,000 the month after. Again, that’s because most of ones earnings are from sign-up bonuses. Most people call this type of system a meat-grinder. Just recruiting as many people as possible. It’s possible to build up a team quick and fast at the beginning, but after a period of time, because people don’t keep their qualifications, their team starts to die out and what you’ve built below you, starts to collapse upon you… which than impacts your passive income.
Lastly, one needs to read all the fine print included. There are possibilities of reversal of bonuses if someone cancels etc…