telexfree-logoWhat happens when you pull the compensation plan rug out from thousands of affiliate investors and then refuse to communicate anything officially to them?

A mob of angry TelexFree affiliates stormed the company’s Massachusetts office, prompting neighboring companies in the building to lodge complaints.

TelexFree’s reception staff, complaining themselves about being “unable to walk” amongst the affiliate crowd, went and pulled Steve Labriola, TelexFree’s International Marketing Director, from his daily business to address the gathering.

steve-labriola-telling-affiliates-to-go-away-telexfree-office-march-2014Addressing affiliates phone in hand, Labriola tells them “not to worry”. What exactly he’s telling them not worry about is unclear, however if I had to guess I’d say it was the recently revealed SEC investigation, and/or TelexFree’s new compensation plan – which thus far the company has failed to adequately explain to its affiliate-base at large.

The company did hold a compensation plan training meeting event a week and a half ago in Boston, however news soon broke just a few days later that the plan had changed again. Meanwhile at the time of publication, the TelexFree website is still showing no updates since the 10th of March, almost a fortnight ago.

Labriola goes on to reassure the no doubt frustrated, agitated and anxious affiliates,

It’ll all get back in your backoffice at the end of this week. Really. It’s just the conversion, the change-over.

You’re not going to have to sell back stock anymore, that’s going to be a thing of the past but you’re still gunna get paid under your contracts. Don’t worry about that.

The selling of back stock Labriola mentions was the facade of affiliates “selling” back of VOIP contracts to the company each week, in order to justify the $20 ROI paid out per $289 affiliate investment.

You can help our staff  if you just kinda open this area up a little bit, it would be a great help to all of us.

So I wanted to get out and let you all know things are moving in the right direction. Absolutely. There’s a couple of bumps we’re working through right now but don’t worry about it.

We’re still going all out. We’re still going to keep building a future. We’re still going to give you all of the things that we promised you… just be patient with us and help us work through this.

At this point an affiliate tries to ask Labriola a question, to which he responds:

I don’t have time for questions. I have a call I was supposed to be on at noon but Danni  came into me and said that “you can’t even walk out here” and I wanted to come out here real quick and let you know;

If it’s the repurchasing thing, please, please, just move on out. You’ll get taken care of, don’t worry about that.


Labriola then leaves the office foyer. Who was on the other end of the phonecall that took precedent over Labriola answering concerned affiliate’s questions is unclear. Similarly whether or not his response answered what those assembled had come to ask was also not immediately clear.

Back in January Labriola told affiliates ‘if there’s something going on we’ll let you know‘. Evidently however that sentiment doesn’t extend past the actuality of “something going on”.

Labriola addressing the crowd of TelexFree affiliates assembled at the company’s head office can be viewed below: