Last Wednesday, American Communications Network representative Jason Pappas discussed his company and the network marketing industry to members of the McIntire Investment Institute.
American Communications Network has created a successful niche in the network marketing field since its inception in January of 1993.
Pappas came to the University to inform students of the opportunities in cooperative marketing.
He said he believes the success of ACN and similar marketing companies can be attributed to the general deregulation of business, especially the recent opening of the electric and gas service, and local phone carrier sectors.
"We're like a broker," he added. "We represent companies and market them."
ANC representatives receive a percentage of the overall sales profits, but an even greater portion of their income comes from acquiring more representatives for the company. They also receive a portion of all the profits from their recruited representatives, resulting in a pyramid income flow.
With network marketing, company sponsors discourage cold calling or door-to-door sales routines. Instead, representatives pass information through their own personal network of family, friends and acquaintances.
Many marketing companies operate on this word-of-mouth advertising premise. For a preliminary investment ranging from $100 to over $500, individuals are given training and the opportunity to start their own company by marketing goods and services from different providers. Most cooperative marketing companies recruit individuals to promote various items, from pillows to perfume, which the manufacturers deliver to their clients.
Pappas's presentation highlighted the rewards of network marketing, which include all the advantages of working for yourself. The presentation emphasized the flexibility that full-time college students prefer in a job. Pappas also addressed the nontraditional aspects of network marketing.
"Coming from a great school, we know this [business] isn't the place to be," he said.
"But, from this business you'll learn all your background is useless except for having a work ethic and being able to learn," he added.
Pappas graduated from Yale University with a degree in finance, going on to law school earn a law degree at the University of Maryland.
As a result of his success in ACN while in law school, he decided to abandon plans for a career as a tax attorney to work exclusively in the marketing business following graduation.
Third-year College student Jarrod Markley said he has gained early success in the network marketing business from his mentoring partnership with Pappas.
Markley has worked with ACN for only a few weeks, but he already has made profits exceeding his introductory investment of $499.
Markley said he has encouraged his parents and relatives to switch long distance and energy companies.
"It wasn't hard to do, because I'm saving them money," he said.
When first introduced to ACN by a good friend, Markley said he was skeptical of network marketing's nontraditional and precarious premise and the stigma associated with salespeople.
After further research, he said he concluded that it was something he had the desire and ability to do.
"Multi-level marketing schemes have a bad rep," he added. "People like Jason Pappas who have lots of education and choose to work for ACN are proof that there's a difference."
"People in this business don't consider this a sales business, but rather a sorting business," Markley said.
ACN representatives market essential services such as local and long-distance phone carriers, gas and electric utilities, pagers and an Internet provider.
One of network marketing's greatest advantages is the mobility and people interaction it affords.
"I'm much more socially inclined so it keeps me interested. I'm doing work, but at the same time I'm catching up with people," Markley said.
Enjoying both the financial and social rewards of network marketing, Pappas said he plans to stay in the business until he retires.
"Network marketing works because of the relationship aspect," he said. "Ninety percent of my customers stay with me because of this."
ANC also owns and operates an energy service from its energy headquarters in McLean, Va.
ACN is a privately held company, however, it plans to have an initial public offering during the second quarter of next year, Pappas said.
ACN's corporate Web page can be found at:www.acninc.com.
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