telexfree-logoLess than a week is all it took for TelexFree’s top affiliate investors to collectively revolt against the company’s new “everybody needs five retail customers” compensation plan.

What’s even more amusing is that, if true, the change comes just days after TelexFree charged affiliates $169 each to attend “new compensation plan” training in Boston.

Not surprisingly, after paying for their ticket, accommodation, transport to get there and whatever else, some TelexFree affiliates aren’t taking the fact that what they paid to learn only a few days ago might already be obsolete.

Unloading on Facebook and her personal blog, top TelexFree affiliate investor Faith Sloan writes,


I am like oh sooo bothered. Compensation Plan changed AGAIN????

We went to Boston for TelexFREE training. We purchased a ticket. We paid for hotel costs. We paid for vehicle transportation and other expenses. We paid airfare.

We got the TelexFREE NEW Compensation Plan training!

I spoke with the leaders of an Italian team and they let me into their strategic meeting. They came up with a plan to optimize the compensation plan.

I spoke with a few other leaders and they discussed with me their strategies according to what was told to us at the event in Boston.

I get back home. I have a backlog of work I need to catch up on. I get slammed by our team members to explain the Compensation Plan. I go out of my way to create videos, websites, etc. I got over 100 phone calls, over 100 skype messages, hundreds of facebook messages and thousands of email messages from TelexFREE members who are NOT on my team… But I try to help everyone the best I can.

So I studied the plan TAUGHT to us in Boston. I worked with one of my leaders and came up with a model which will help our team revamp and optimize the compensation plan.

He comes back to me and told me that the plan obviously changed or someone is pulling someone’s leg. So he showed me Randy Crosby’s presentation.

Then BAM!

I look at Randy Crosby’s 11 March 2014 webinar and it was NOT what we were trained on. Not by a long shot.

The training we received in Boston did NOT contain anything remotely similar to: if we have 1 customer ONLY and 2 promoters, that we could earn in the binary down to infinity but we will not get $100 a week. That was NOT part of the plan. That was not part of the training.

It is quite obvious, because here on this site, I have every single slide that was presented to us about the Compensation Plan. So do NOT punk me and tell me that it was repeated multiple times in Boston. It was NOT.

Now I hear that yesterday a group of ‘leaders’ got together with corporate in some secret meeting and they expressed their displeasure of the New Comp Plan so they went back to the drawing board and RE-DID THE COMPENSATION PLAN!!! WHAT????

My uplines were not privy to this meeting. I surely wasn’t. As a matter of fact, NO ONE I know in my team was aware that a meeting was going on. I guess I am too outspoken and would have told them that changing the plan AGAIN due to public outcry was a bunch of stinky crap and is indicative of the fact that their decisions were not sound in the first place.

Yes. I said it. Compensation plans are not thrown up over night. They require analysis, consideration of both psychology and mathematics as well as revenues and expenses to come out with a darn good one.

It can’t be based upon a group of folks’ gripes and then hastily modified as quickly as one would change their underwear.

So why did we have to interrupt our lives and fly to Boston? Just for a 1-2 day jaunt which was as productive as an ant without his army? The Boston event meant absolutely NOTHING! Oh yes it did … We paid Corporate to attend. And yes, TelexFREE Corporate did indeed make a profit.

When I phoned Santiago de la Rosa, he told me to ‘not worry’ (his answer to everything. LOL! I never ‘worry’) and wait until tomorrow. I asked whether corporate will put the complete compensation plan on the telexfree website. He said “Yes”.

So I am like so through and won’t do anything until the freakin bread is BAKED AGAIN!

And when ya’ll stop futzing around with the Compensation Plan and finally LAUNCH a product instead of yaking on about it for a whole year, then just send me a freakin memo, please.

Apparently TelexFree have told some of their top investors to expect a new compensation plan to be available sometime over the next twenty-four hours.

A major contributing factor to the utter confusion surrounding the transition to the first new plan has been TelexFree’s own major lack of communication. To date and despite the plan supposedly going live on the 11th, the company has not released any official documentation on it.

As mentioned earlier, affiliates were given the option to pay $169 to learn about the plan, however that now appears to be obsolete information. Whether or not TelexFree will refund those who attended remains to be seen.

Several of TelexFree top affiliates appeared on stage at the Boston event, and at a $169 a pop one can only wonder if they were directly compensated out of affiliate ticket sales.

As for the plan itself, we released my analysis nearly two weeks ago now and given the lack of changes I’ve had to make to it, I believe it was pretty spot on. These new changes Sloan talks about seems to be the abolishing of every affiliate who wants a ROI to have to get 5 non-affiliate customers, in favour of just having to get 1 customer.

Turns out TelexFree’s VOIP product is so unmarketable those at the top know full well they (and more importantly their investing downlines) aren’t going to be able to sell the facade to five non-affiliate customers.

This then translates into every affiliate spending an extra $250 a month (buying the accounts themselves) with the company, which as we analysed results in a net loss (not withstanding an apparent VOIP price drop to $5.99 or so the second month on which I’m still unclear on).

Anyway the long of it is that it’s a far cry from the $20 a week passive ROI TelexFree affiliates have been receiving for the past two years, and they’re not happy about it.

I guess the question for now is, and keeping in mind US regulators are now sniffing around, just how far will TelexFree backtrack towards their old Ponzi plan to appease their top investors?

Stay tuned…