TelexFree Compensation Plan v2.0 Review
Despite the repeated claims that TelexFree’s existing compensation plan and business model was “absolutely not a Ponzi scheme”, the company has decided to recently announce some changes.
Likely due to the co-incidental timing of Massachusetts confirming a US investigation into the company and issuing subpoenas ordering TelexFree officials to appear before the SEC this Wednesday, TelexFree’s new plan feels like it was cobbled together hastily.
It’s confusing, it’s a drastic change from the old “invest $289 and get paid $20 a week for a year” plan and most people aren’t going to get it first time around.
After seeing the plan released in Portuguese last week, I’ve held off publishing my own analysis till an official English version came out. I noticed over the weekend several sources have published identical explanations of the new plan so I’ve put together what I believe to be as complete a review of the new plan as currently possible.
I’ve also tried to break it down and present the new plan as cleanly as possible, including what has changed from the old plan. If there’s some points people still aren’t getting, feel free to leave a comment below and I’ll try to further clarify.
Additionally corrections are also welcome. It is noted that for reasons known only to themselves, TelexFree have not provided anyone with official documentation yet.
The AdCentral Investment Scheme
Previously the core of TelexFree’s compensation plan, the AdCentral investment scheme has undergone some significant changes in the new plan.
TelexFree’s old plan saw affiliates invest $289 per AdCentral position on the promise of a $20 a week ROI per position. The new plan first requires affiliates qualify as a “Family” affiliate, which means they have to sell ten VOIP packages at $49.90 each.
Once qualified as a Family, an affiliate earns $100 a week over their first 30 days. After 30 days the fun begins.
After 30 days, in order to keep receiving $100 a week an affiliate must qualify for “AdFamily Plus” status. This requires three things:
- spam 5 TelexFree ads a day (7 days a week)
- maintain at least 5 VOIP customers (at a cost of $49.90 a month)
- recruit at least two affiliates who in turn also have at least 5 VOIP customers, each paying $49.90 a month
As long as this AdFamily Plus status is maintained, an affiliate will receive $100 a week from TelexFree.
Note that if an affiliate does not qualify as an AdFamily Plus, they will remain a Family qualified affiliate and earn $50 a week. Family affiliates must still spam the internet with 5 TelexFree ads a day if they wish to receive this commission.
AdCentral Investment Scheme Referral Commissions
AdFamily Plus qualified affiliates are eligible to receive 2% of what their downlines earn (payable down 6 levels of recruitment), via the AdCentral investment scheme.
Family Recruitment Bonus
When a personally recruited affiliate qualifies as Family affiliate (see above), the affiliate who recruited them earns $100.
VOIP Commissions
For each $49.90 VOIP service sold, a TelexFree affiliate earns a 10% commission ($4.90). This is an ongoing monthly commission, provided the customer maintains their VOIP subscription.
Residual commissions are offered on VOIP sales, via what appears to be a unilevel compensation structure. A unilevel compensation structure places an affiliate at the top of a unilevel team:
Every personally recruited affiliate is placed on level one of the unilevel team, every affiliate recruited by level 1 affiliates is placed on level 2 and so on and so forth down a theoretically infinite number of levels.
TelexFree cap payable levels in a unilevel team to five levels, paying out 1% commission down levels 1 to 4 ($4.99) and a 1.5% commission on level 5 ($7.48).
Note that if an affiliate recruits at four affiliates (I’m not sure if they have to qualify as Family affiliates) within 30 days of joining TelexFree, they are paid an addition 1.5% on levels 6 and 7 of the unilevel. Based on the information currently available, there doesn’t appear to be any other way to open up these two additional unilevel levels.
Previously affiliates were paid VOIP service commissions using a 5×5 matrix, paying out 1% on level 1 (5 positions) and 1.9% on levels 2 to 5 (3905 positions).
Binary Commissions
A binary compensation structure places an affiliate at the top of two binary teams, left and right:
Recruited affiliates and VOIP subscribers fill positions in the binary, with a pairing system used to calculate “cycle” commissions within the binary.
I’m not 100% sure on what constitutes a paired cycle in the new TelexFree binary, but it appears to be one personally recruited affiliate and 5 VOIP subscriptions (either held by affiliates or retail customers).
For each match of the above qualification criteria (the above requirements must be on both sides of the binary), an affiliate is paid $80. Binary commissions are calculated daily and are capped at $15,800 a day.
Previously TelexFree affiliates were paid a flat 40 cent per week commission per recruited affiliate in their binary, and a $20 cycle commission with recruited affiliates matched 1:1 on either side of the binary.
Team Builder Revenue-Sharing
If an affiliate has five personally recruited AdFamily Plus qualified affiliates in their downline, they qualify for a share in the Team Builder revenue-sharing pool.
This pool is made up of 2% of TelexFree’s global revenue (presumably including affiliate membership fees), paid out monthly. Team Builder revenue-sharing pool earnings are capped at $39,600 annually per affiliate.
1K Club Bonus
The 1K Club Bonus pays out $500 when an affiliate personally recruits 4 new affiliates within thirty days of joining the company. Affiliate can only qualify for the 1K Club Bonus once.
Affiliate Fees
Affiliate membership to TelexFree is now $149 annually on top of a $19.90 monthly fee.
Previously annual TelexFree affiliate membership was $299 for one AdCentral investment position or $1375 for an AdCentral Family position (5 grouped investments). TelexFree charged a 20% “renewal fee” after one year on both investment amounts.
Conclusion
I’m not going to pretend that TelexFree’s VOIP service is viable at a retail level or that anyone outside of affiliates participating in the AdCentral investment scheme are interested in paying for it.
Instead, I’ll attempt to address the question on everyone’s mind: “Can I still dump money into TelexFree, spam the internet (or pay someone else to automate the process), and walk away with a >100% ROI after a year?”
As I understand it, affiliates can qualify themselves by purchasing additional VOIP packages. From a compliance standpoint this makes no sense (good luck explaining to the SEC why all your affiliates have 10 VOIP packages in their names), but it is possible and needs to be considered.
So, an affiliate joins TelexFree for $149 and pays their $19.90 monthly fee. They then need to sign up ten VOIP accounts, which is $499.
Ok, bing-badda-boom – spam the internet daily and in your first month an affiliate’s ROI is $400 plus $49.90 in VOIP commissions, with expenses of $667.90. Effective ROI is thus -$218.90.
For month two an affiliate needs to recruit at least two affiliates who each also spend $667.90. They also need to maintain at least five VOIP subscriptions out of the initial ten, so month’s two expenses are the monthly $19.90 fee and $249.50.
Commissions paid out in month two are: $80 binary commission, $24.95 in direct VOIP commissions, $9.98 in indirect VOIP subscriptions (20 subscriptions on level 1 @ 1%), $200 via the Family Recruitment Bonus and $400 in AdCental investment ROI. All up that’s $714.93.
Expenses are $269.40.
With an already negative $218.90 balance, month two results in a gain of $226.63.
This monthly commission increases over the next ten months as recruitment grows downlines and other commissions eventually kick in, but that’s the gist of it. Of course much more is earnt if an affiliate goes out and recruits his or her nuts off, but seeing as most people joined TelexFree for the passive $20 per position a week ROI, that probably excludes most affiliates.
Alternatively if an affiliate doesn’t recruit, they’re looking at continued net-losses of $44.45 a month ($269.40 in expenses minus $200 in ROIs, $24.95 in VOIP commissions and no recruiting).
Any questions leave a comment below and we can work through it. Otherwise as I understand it that’s the nuts and bolts of the old AdCentral investment scheme translated over into the new compensation plan.
One final thing I want to address it that a lot of people are probably asking why this new plan is so messy. The reason is pretty simple: TelexFree’s VOIP service was never meant to be a standalone product. It was always nothing more than a cover for the AdCentral investment positions.
Now with US regulatory scrutiny and the inevitable shutdown in Brazil, TelexFree have had to artificially push VOIP to the forefront. Needless to say those who have used it and anybody who’s analysed the prior business model will predict it’s not going to work.
When you run a Ponzi scheme for two years and then pull the rug out from under your investors, things collapse. Of course little of that probably matters to Carlos Costa, James Merril, and Carlos Wanzeler.
The meta game being played here is that they’ve been skimming who knows how many millions off the top of everyone’s investments over these past two years. Now it’s not so much a matter of keeping the scheme running, but mangling the business model into something the regulators might be satisfied with.
I guess the hope is they’ll be issued a a fine and then just make off with whatever’s left.
The reason TelexFree’s compensation plan makes little sense and will be largely unattractive to the current affiliate-base is that it wasn’t written for them; it was written to keep Merril, Wanzeler and Costa out of jail over the coming months.
And now we wait and see how it all plays out…
Ohh! Now I do understand the new compensation plan.
They’re just trying to convert their old ponzi investment scheme into a legal compensation plan, but they failed miserably with this mess.
Convincing new people to pay $667 the first month without a guaranteed earning will be hard as hell. If you don’t recruit new members, you lose…
Now that’s what I call the best business model ever!
/s
Why would anyone think a new compensation plan is going to undo all the time they have been operating illegally ?
This isn’t a game of Monopoly, there are no “Get out of jail free” cards
The new compensation plan is clearly an “emergency solution”. It’s designed to solve an immediate problem rather than to be a long term solution.
The new compensation plan looks rather “desperate”, like someone desperately trying to find solutions to a problem they’re not able to handle. It also looks rather narrow minded, like someone have focused solely on the immediate problem.
It’s actually one of the worst business ideas I ever have seen. Recruitment will probably collapse completely.
1. The idea CAN have been that passive investors will quit “voluntarily” when they see the new CP, i.e. that they can reduce the liabilities if people quit. One thing that points in that direction is that the team builder compensation is relatively unchanged.
2. Another idea can have been to fake legitimacy. TelexFree has a huge number of fake “customers”, so the customer to promoter ratio probably looks legitimate enough.
If they combine that ratio with a compensation plan that reflects being focused on customers, they might pass an initial test for legitimacy. The old compensation plan would have failed, it clearly paid rewards to passive investors.
3. A third idea can be because the new compensation plan was needed in a legal defense strategy. Jeffrey Babener like to use his own expert witnesses in court. He likes to build up legal defense around experts.
Experts are hired “to look into a buiness”, to check the legitimacy of a business concept. They are trained defense witnesses, so they know the “safe areas” they can look into and the areas they will need to avoid.
The old compensation plan didn’t reflect “flow of products”, one of the most important factors in MLM defense strategy.
The compensation plan can have been changed for that purpose, so the expert witness can make a true statement in court about that the compensation plan he saw clearly reflected flow of products. The customer to promoter ratio clearly reflected the same.
No matter how much cosmetic surgery you add, a pig’s still a pig.
Most promoters are actually paying net $5 per customer, rather than $49.90.
* “Recruit 10 customers” will then be “pay for 10 customers” = pay $499, and receive $449 in commission = net $50 (but you will need to bring in money or avoid to withdraw $499.
* “Maintain 5 customers” will then be “pay for 5 customers each month” = pay $249.50, and receive $224.50 commission = net $25 per month (but you will need to bring in $249.50 or avoid withdrawing it).
* “Recruit 2 affiliates” can probably be “create 2 sub accounts”. People are already using that method = creating a virtual downline they can earn binary commission from, by generating new sub accounts in their own back offices.
An interpretation like that will bring more money in, and prevent people from withdrawing too much money. It will also correct an obvious flaw = most “customers” are actually inactive. If each affiliate have 5 active “customers” each, it will be easier to defend in court (in theory).
So this is actually front-loading… everybody’s buying crap they don’t use.
Without the crazy profits (recoup your cost in 2 months!) nobody is going to stay on.
That’s funny, I thought if you put lipstick on it would become something else. But that’s just me.
The only aim here is to get rid of all the passive people. This happens when 10s-100s of thousands are enrolled. Then at a later date the masses of passive people leave, which still leaves them with few thousand active enrollers with lists. Same old same old.
I wonder if this will effect new contracts only or existing contracts too. Could they be breaching the old contracts with this new method?
Would guess that if Massachusetts doesn’t shut them down on March 5 meeting, then it’s a question of when will Telexfree run out of funds to pay for existing people under the old pay plan.
On the Telexfree site, there is a notification of a training & overview meeting, regarding the new comp plan, which is at the Hotel Marriott Boston Copley Place on Sunday, March 9, 2014 from 10:00 AM to 5:00 PM Eastern time. Tickets are being sold on the Telexfree site.
For the family, Telexfree don’t require to have 5 active voip.
5 Active voip is for family plus only.
so the payment will be 499.00 + 149.00 + 19.90 = 667.90
The payment of ads for promoter first month $400
after first month (48 weeks) $50*48 = $2,400
so 19.90 monthly fee * 11 months = $218.90
$400 + $2,400 = $2,800 – $218.90 = $2,581.10
annual payment for promoter $2,581.10 – $667.90 =
$1,913.20 Total Profit for promote the VOIP.
@Charles
Are you sure? There’s not much “promoting the VOIP” going on if affiliates buy 10 packages and then cancel the subscriptions after one month.
The SEC are going to nail them hard if that’s the case.
@Fabs
As I understand it old contracts will be paid out owed ROIs in full. Something else the SEC aren’t going to like either.
always happen so such a great bussines if you dont like it go develope anway for 30 year and continue broke, the model was working fine and people where happy we where changing lives every day and always somebody comes to try and kill the oportunity.
no ody here is stilling nobody is losing money people are creating wellness is bertter than sitting at home living from the goverment leave the company alone! i love telelexfree it change my life to bad people always look the bad things!!
Massachusetts may need some additional information, to speed up the case a little.
I have already looked into most of it, e.g. the type of information they will need. But preparing the information will be too time consuming to be finished within reasonable time.
3 OR 4 VIDEOS
Back office walkthrough 11:40
youtube.com/watch?v=uiUhGLF9rWs
Team builder explanation 17:18 (from start)
youtube.com/watch?v=onCgcBAOTSE
People call me a guru (4:15 into the video)
youtube.com/watch?v=BJQkbmtopIU
Video 1 will give an overview of the back office, and some of the different functions there. It will, among other things, show the internal transactions, a signature for online Ponzi schemes.
The back office isn’t a bank account. Internal transactions directly to/from the back office will be about ILLUSIONS of monetary transactions.
Video 2 and 3 are marketing videos for the opportunity. Video 2 will explain many details about the old compensation plan.
P.S. Referring to the 3rd option above, by launching a new deal, I meant this new program and pay plan…
@Ken
In conducting their Zeek Rewards investigation, the SEC revealed that 0.25% of the bids bought were actually used, thus expelling the “we have retail customers” myth. Affiliates were creating fake accounts and dumping bids onto them, with Zeek claiming this was legitimate retail activity.
I’d be almost certain investigators would request figures on how many minutes were used per VOIP accounts sold and tally this up. The results would prove the facade of the VOIP service, acting only as a cover for the investment scheme.
From what I’ve seen the SEC don’t pull the trigger until they’ve covered their bases. It’s not like Brazil where Costa rocks up and puts on a clown show and things drag on for months.
One thing I believe authorities should ask for is a list of TelexFree related companies in other countries, plus a description of their individual roles.
Frauds will often involve multiple companies in different jurisdictions, set up by the same organizers.
What will happen to Telexfree investors that are net profitable. Will they have to pay back the money they earned with Telexfree???
That depends on whether the SEC shuts down the company and a court appoints a TelexFree Receiver.
Actually EVERYBODY is losing money… UNTIL they make back more than they put in.
That’s how Ponzi schemes work: robbing Peter to pay Paul.
YOU have made your money back, but many others put in money.
Zeek Rewards people said the exact same thing: there were NO victims (until the government shut them down).
A victim who don’t realize s/he is a victim, is still a victim, merely an IGNORANT one.
Note that there’s no mention of the AdFamily Plus stuff… seems rather deliberate.
With that presentation style all he needs to do is throw in a free set of steak knives and he’ll have his own late night infomercial show in no time.
I know right? He almost convince me to join TelexFree. lol
Instead, maybe a free pen with Telexfree inscribed on it. It might sell for a few hundred on ebay in 10 years.
To Oz, K. Chang – It appears Telexfree is typical of a handful of such popular programs in recent times which is brazenly staying open, despite all the warnings, the heat and very bad publicity. What is your take on this?
@John
My take is that the regulators need to catchup. I know evidence needs to be collected and for that to happen those running a scheme need to actually run it, but damn there’s some serious lag between conception, running and shutdown.
It also can be very erratic. Some schemes get C&Ds before they even open (Funky Shark), some run for a few years before getting shutdown (Zeek), some run and then organically collapse and only then do regulators move in.
Bit of a mystery box to me but it’d be nice if they were a bit more consistent. The inconsistencies lead to people trying their luck running the scams in the first place.
The vagueness from the FTC isn’t helping either (the SEC are a bit more clear on what they will and won’t tolerate).
Madeira Island has Telexfree fever, hard to convince people to see sense.
– Can someone please point me to true stories of people from Brazil who lost money ?
– I know that many people will keep secret cos, they dream if getting back into TF, or cos their money was dirty or they are afraid of the taxman, but “people like me” stories does convince people.
@StewGreen
Nobody loses money in a Ponzi scheme until people stop investing.
TF is still in the “sucking new investors in” stage. Latest targets are Asia and Europe.
I guess I can point them towards similar schemes which have reached the end ..and where people have lost.
So in Brazil the promotion has been stopped ? But still the Brazilian suckers are still “hanging in there” and playing TF thru the internet?
First and foremost please excuse my grammar, English is not my first language. Telexfree have change my life dramatically. I went from driving a ford to a BMW 5series, I move out from a 2bed room apartment to a 5bed room house. Now me and my wife are both just staying home parent and love spending every second of our time with our 4 children.
How much longer will this last, I don’t know, you don’t know, and no one knows period.
What I DO KNOW at the moment is my bank account’s numbers is pretty damn real and they can’t lie. You people need to understand this: “ask yourself why are you still working and if you are, what for?” Everyone is making money from everyone else someway or somehow so lets just keep it simple folks.
“I rather be rich and guilty then being poor and innocent” Have a good day folks and spend too much times talking about telexfree because your not being pay for it. Spend more time with your wife and kids so we can decrease the divorce rate in this country.
@TelexFree free
not being in a Ponzi scheme to ripping off new investors in a Ponzi scheme. Got it.
Of course we know, TelexFree will run for as long as new investors continue to dump money into the scheme expecting a return off people dumping money into it after them.
What a wonderful example to set for your kids.
Kudos to admitting you’re fine with being a criminal, but if you’ve come here for support you’re in the wrong place.
Globo had several victim stories in June and July 2013, e.g. about people who had lost up to $180,000, people who had sold their only car to invest in TelexFree, etc.
You can try to search in Portuguese for “TelexFree victims”,
“telexfree victims site:g1.globo.com”.
Around 90-95% have probably lost money.
Whether you win or lose isn’t really important, you have been defrauded in both cases.
Of course it will run as long new investors continue to dump money bad example for kids.
Also I think it can last a little longer because it can be used for money laundering.
Someone can buy the account in cash, and withdraw from Ewallet into bank account and technically the money have been laundered.
What do you think OZ?
Money laundering doesn’t create revenue for TelexFree to pay out the ROI with. It’s just the transfer of money from A to B, sans any ewallet fees.
I suppose if launderers are willing to trade in their actual cash for AdCentrals in the hope the new investment money won’t slow down (otherwise their money goes poof just like everybody else), then that’s another matter.
@Telexfree Free My me
I won’t even touch on your selfish greed, laziness or lack of any moral code to pass on to your children.
But I will look into my crystal ball and tell you what I see for your future.
Aaah, there you are…..Standing in front of a one bedroom shack. Your wife and children and the new baby (oh congradulations you had another child with all that time on your hands) are peering at you from the windows as you watch the towe truck drive down the road with your BMW hanging on the back. A small tear slides down your cheek.
But, there is a silver lining to this story…at least you salvaged one of the kids skate boards to get you to the patch tomorrow to pick cucumbers. : )
That particular idea didn’t sound very smart?
Money laundering is about putting illegal money into legitimate businesses, not about putting illegal money into illegal ones.
Does anyone happen to have any screen shots or links that demonstrate TelexFree International reps signing up people in Brazil and circumventing the Court order in Brazil?
Let’s just say I have a few people that would love to see that info!
If Oz permits me leaving my email address, please send to me as soon as possible!
kenstewartcalling@hotmail.com
@Ken,
Thanks for that sales pitch. I’m going all in and using it.
@OZ,
I think the “regulators” who let the financial industry run amok will make a deal to let the most people have the least chance to lose. What does this mean, see Option 1 by Norway or was that KEN. I think a deal has already been worked. There is a new CEO and comp plan.
@Dorothy,
Wow, you come across really hateful. You wish harm on people’s innocent children!
– I see bit of dramaqueening in the comments today ^^^
– Since you my friend above have made so much money, you understand it comes from money 10-20 similar people below you have paid into the pyramid, so when it collapses
– You will welcome those people at his house and pay them back out of your own pocket ?
– and you will not scream if the authorities start a clawback scheme ?
– Furthermore you are happy that your god is looking down on you from above, as you participate in this criminal conspiracy ?
– As your town has roads & schools, have you paid your fair amount of taxes on your earnings from your good fortune ?
@Shy
I’m not hateful at all. And the visual was directed at the father as a possibility of his future and where his family may end up because of his choices.
Ooooooh. BFD.
I thought you said its better to be divorced and rich than married and poor? Did I misunderstand you?
A new CEO and new comp plan doesn’t excuse the illegal pyramiding that’s taken place up until now! They won’t get a “pass” just because of a new CEO and pay plan…
Second, the fact you would still want to go all in, after knowing it’s been an illegal pyramid scheme and that changes are being made, not because they want to, but because they have to, knowing that if they didn’t, they were doomed to be shut down permanently and possibly facing jail time, makes me question your intelligence and common sense!
Third, the “pitch” I posted isn’t suggested for use. I was merely offering up how the principals are likely to pitch it as a result of their new changes, knowing that they still have an illegal pyramid scheme, they’ve just dressed it up to look more legitimate and presentable. You can put lipstick on a pig, you’ve still got a pig…
Finally, that presentation has flaws in it that can be attacked, so not sure if I would recommend using it if I were you!
@Ken
You have got one reply from me in another thread, about WHEN information was posted and WHO posted it. You have got a better answer in another thread from one of the Brazilians, linking to some examples.
I was only able to find my own reply, I didn’t remember in which thread the best one was posted.
@Ken
Here’s a link to the reply from Emilio Rubens, with examples of videos for how to bypass registration trouble (for people living in Brazil).
Ya’ll ought to go see how the sh** is flying at TelexFREE now over the botched launch of the new compensation plan and the apparently intentional mis-communicated information at the launch event. It’s a hotbed of rebellion now.
Botched as in they told everyone they could still make infinity passive money despite the math not adding up?
I’ve got a lot of MLM news catching up to do on my end :).
I have been doing the mathematics using the new TelexFree compensation model and I have found that it will not work for some of us who just wanted to have some passive income. The VOIP service does not work in my country and we have been purchasing the service for eligibility reason i.e. to qualify for binaries.
The killer for the whole scheme is in two parts: reduction of the VOIP sales commission from 90% to 10% and the instance on maintaining 5 customers per month i.e. forcing everyone to purchase 10 VOIP at a cost of US$ 499 per month.
Add on the monthly charge of 19.9 and the ROI is negative or at most 10%
Oh boy! Here we go again. Ok, I’ll bite.
If a little pig with lipstick and a nice dress on named TelexFree invited you out to dinner and a dance but asked you to pay for it all, would you do it?
And what if that pig told you she took a shower before she left her pen, but had mud all over her legs when you looked down, would you say “At least she’s got a nice dress on”?
I bet you would.
Exactly. You are paying the company, for the right to recruit people and get paid when *they* pay the company. You are in a pyramid scheme.
They don’t care about the product. It is irrelevent. It is even irrelevant to you.
So they morphed from Ponzi scheme to pyramid scheme. Hahaha. Illegal is still illegal.
I’m not sure if this still applies. All the videos are saying if you sell a plan, you get 10%. If you still get 90% for a new (repeat new) sale, then it would be quite easy to build a downline a lot faster than the old plan. You just always get new customers.
If you only get 10% then i can’t see a way to use the system to your advantage. It would cost (second month) $20 for the month, $250 in product, $270 less $25 commission = $245 to ‘earn’ $400.
After costing $149 to join, $20 monthly fee and $500 first month upfront. $670. So it takes you about 5.5 months to get in front. And 6.5 months at $155 pm.
Lot of effort for $1000! That’s if it lasts a year! BUT! And it’s a big but! If they let that 90% for NEW customer happen, then a lot of people will take advantage of it. I could never understand that. A new customer pays you 90% whereas a recurring customer is only 10%. Red flag to a bull or what?
The commission on VOIP sales has been reduced from 90% to 10%. That is a total spoiler.
Some promoters are jumping in without analyzing the plan because the first month promises quite a lot but you have to recruit 4 people and no one is sure what the fate of those 4 people is.
After the 1st month, I do not see how anyone can sustain that business when you have to spend 250 + 20 USD monthly to get 200 or 400. It is so hard to sell the VOIP because in most cases it doesn’t work, and then again it is so expensive compared to other VOIP services, so the promoter is usually the customer.
I do not see how i will benefit so I cannot refer anyone else when they might not earn a thing after putting in their money.
And the commission on VOIP sales in the old plan has as well been reduced to 10%.
Have anyone tried the 99Telexfree actual VOIP service? is it good/crappy??
Hey Oz, it seems you’ll have to re-update TelexFree plan to version 2.1. There are rumors on Facebook about another change.
First let me point out something missing in this current review. Right in the beginning, one reads:
I’d like to complement this by stating that Family affiliates must spam the internet with 5 ads a day AND ALSO must maintain 5 VoIP customers monthly in order to earn $50 a week. It can be read in the small print at the bottom of the screen, at 4:00 in the official video. In the video you posted in comment #22, it cannot be seen because of a semi-transparent white bar put behind the subtitles.
Ok. If Facebook rumors are right, this is gonna change. According to Rhalff Coutinho’s (one of the main promoters) post, Family affiliates will now be required to either:
– maintain 5 VoIP customers only, OR
– maintain 2 VoIP customers and recruit 2 affiliates, who in turn maintain 2 VoIP customers each.
And if I understand Coutinho’s post well, the qualification for AdFamily Plus status will also change to either:
– maintain 15 VoIP customers only, OR
– maintain 5 VoIP customers and recruit 2 affiliates, who in turn maintain 5 VoIP customers each.
Of course, in every case, the 5 spams a day are kept. Sorry if I am giving known info. I checked the comments here first, but not all of them. Anyway, here is Coutinho’s post:
https://www.facebook.com/photo.php?fbid=10201960634797230&set=a.4428734116243.2156055.1225773874
Writeup is here – https://behindmlm.com/companies/telexfree/investors-revolt-telexfree-change-plans-again/
As with the first change I’m going to refrain from publishing v3.0 until we get something concrete in English (that I can verify with a few sources at least). TelexFree “corporate” are hopeless with communication.
That said the changes you cite look even worse than before? Unless of course you already have a downline who have recruited 2 affiliates who have recruited two affiliates who have recruited two affiliates etc.
What a mess.
Oz said “What a mess.”
Dorothy says…there’s a twista commin…
The new rule is very difficult for someone who has paid the amount of money to join telexfree.
This latest rule matched with someone who does not capitalize like mlm money in sales poduk health, cosmetics, and others as his, we are in the capital wearing telexfree money, so we are entitled also to benefit from the capital, and no added loss.
Yes, Gazeta Online, a news portal from Espírito Santo, Brazil tried their voip service (what you see in the video below is actually called “callback” (illegal in Brazil), but they sell the service as “voip” anyway.
(if the link above doesn’t work, search for “teste telexfree” on youtube)
Their “Voip” service works like this: you dial a 1-800-like number, then you dial the number you want to call, hang up the phone, wait for the service to call you back and finally you can complete the call.
To sum up the video: it took 3 minutes to complete the call, the service called the wrong number and the person who picked up the phone couldn’t even hear the reporter.
The new compensation plan has morphed this into some sort of pyramid scheme. By insisting on having 5 VOIP customers for a service that does not work in most countries or a service that has cheaper and more reliable competitors, the new plan is simply a killer to most promoters.
The other fatal blow is the reduction of sales commission from 90% to 10% while introducing a monthly charge.
If they had simply reduced the number of customers to 2 per month, there would still be an incentive to promoters. But they made this worse by insisting that the promoter must recruit two promoters who in turn must have 2 customer to earn $50 a week.
Those 2 newly recruited promoters with their 2 customers get nothing unless they also recruit 2 more promoters with 2 customers. This goes on and on until there is someone at the end of the line who does not get anything! Isn’t this something like a pyramid scheme?
with the new compensation plan I have a great doubt for the integrity of telexfree as a mlm. I’m scared to introduce this to new promoters.
mhh! getting worried about the new compensation plan ,but i think it only works if people will work as a team supporting each other get customer other wise! man its tough!!!
@Gabriel
You should be worried when they come after you.
Telexfree is holding an event in Hong Kong today?
Does anyone know if telex is ever going to get up and running again ?
Before they got shut down … I had over $3000 in my back office !!! Should have taken notice when I heard how dodgy this system was!!
Wankers!
If I don’t get this back soon from them …. someone will be getting a nasty visit at the Marlboro head quarters !!!!!
@Brian
Sounds like you’ve got a lot of reading ahead of you – https://behindmlm.com/category/companies/telexfree/
It won’t. The investigation will probably go on for a couple of years in multiple countries.
You didn’t have any MONEY there, only empty promises.
The difference between a back office and a bank account is that you can use the bank account DIRECTLY to transfer money to other bank accounts.
TelexFree’s back office could only be used to transfer “internal funds” between internal accounts (your own accounts or other members’ accounts). You could INDIRECTLY withdraw the “internal funds” as real money, but only if TelexFree had enough money coming IN from new investors to support the withdrawal.