Telepreneur Corp Review: Pyramid scheme mixed with religion
Telepreneur Corp provides no information on its website about who owns or runs the company.
Other than marking Telepreneur Corp’s purported ninth anniversary in business, there isn’t much information on anything provided.
Featured on Telepreneur Corp’s website is a rotating carousel of marketing videos.
As above, the current prominent video features Sajiron R. Dayao, Telepreneur Corp’s Vice President for Sales and Marketing.
What those videos do lead to is Telepreneur Corp’s official YouTube channel. There various marketing videos reveal the company’s full executive lineup:
As above, heading up Telepreneurs Corp is owner, CEO and President Lorenzo B. Rellosa.
In addition to Telepreneurs Corp, Rellosa also owns and runs Leur Lauren International.
Leur Lauren International is a personal care MLM company.
Lueur Lauren International Corp. (LLIC) is a Multi-Level Marketing (MLM), Direct Selling Company founded on September 8, 2019 that focuses on giving our customers high quality health and beauty products that offer satisfying results and nurtures one’s self-esteem.
Rellosa’s stated goal with Luer Lauren International and Telepreneur Corp is to provide
a stable source of income while spreading beauty and love all over the country.
Rellosa runs both companies from the Philippines.
Read on for a full review of Telepreneur Corp’s MLM opportunity.
Telepreneur Corp’s Products
This is the only product information provided on Telepreneur Corp’s website:
That slide is buried in a not immediately obvious slider.
As per the slide, Telepreneur Corp sells
- cable codes
- load codes
- gaming codes
- food supplements and
- health and beauty products
Unfortunately if you clock on any of the categories for more information, you’re redirected to a Telepreneur Corp affiliate login form.
Telepreneur Corp’s Compensation Plan
The center of Telepreneur Corp’s compensation plan are recruitment commissions, paid via unilevel and binary teams.
Reselling commissions can be generated if an affiliate purchases products and resells them.
The digital side of Telepreneur Corp is a mess. Fractions of a percentages are paid out.
I’ve done my best to present a complete explanation of Telepreneur’s compensation plan but this has proved challenging due to having to rely on non-English marketing videos.
The compensation video cited in this review was uploaded to Telepreneur Corp’s official YouTube channel on August 14th.
Reselling commissions are earned when affiliates purchase Telepreneur Corp products and resell them.
Reselling commission rates are determined by how much an affiliate spent when they signed up:
- System Owners (regular affiliates) receive a 25% discount on products purchased
- Mobile stockists receive a 30% discount on products purchased
- City stockist receive a 35% discount on products purchased
These discounts make up the resell commission rate when purchased products are sold on.
Recruitment Commissions (unilevel)
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Telepreneur Corp caps payable unilevel team levels at ten.
Recruitment commissions are paid out across these ten levels based on how much a recruited affiliate spends on membership:
- recruitment of a Silver tier affiliate pays 300 PHP on level 1 (personally recruited affiliates), 30 PHP on level 2, 20 PHP on levels 3 to 9 and 30 PHP on level 10
- recruitment of a Gold tier affiliate pays 500 PHP on level 1, 40 PHP on level 2, 30 PHP on levels 3 to 9 and 40 PHP on level 10
- recruitment of a Platinum tier affiliate pays 1000 PHP on level 1, 100 PHP on levels 2 to 9 and 200 PHP on level 10
- recruitment of an SGP tier affiliate pays 1800 PHP on level 1, 170 PHP on level 2, 150 PHP on levels 3 to 9 and 270 PHP on level 10
affiliates earn commissions on recruitment of affiliates.
- recruit a Silver tier affiliate and earn 300 PHP
- recruit a Gold tier affiliate and earn 500 PHP
- recruit a Platinum tier affiliate and earn 1000 PHP
Recruitment Commissions (binary)
Gold and higher tier Telepreneur Corp affiliates qualify for binary recruitment commissions.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
Binary recruitment commissions are paid based on pairing of affiliate memberships.
- a pair of Silver tier affiliate memberships pays 700 PHP
- a pair of Gold tier affiliate memberships pays 1000 PHP (earning affiliate must be Gold tier or higher)
- a pair of Platinum tier affiliate memberships pays 2000 PHP (earning affiliate must be Platinum tier or higher)
- a pair of SGP tier affiliate memberships pays 3700 PHP (earning affiliate must be SGP tier or higher)
Paired affiliates can be directly or indirectly recruited.
I’m not 100% sure but I believe Telepreneur Corp refers to all of its digital code products as “loading products”.
To earn commissions on these “loading sales”, an affiliate must “maintain 7000 regular/promo load sales within the cut-off”. The cut-off is a recurring monthly deadline.
If that qualification criteria is met, Telepreneur affiliates earn commissions on loading sales using the same ten-level deep unilevel team recruitment commissions are paid with (see “recruitment commissions” above).
- levels 1 and 2 – 0.08%
- levels 3 and 4 – 0.05 %
- level 5 – 0.06%
- level 6 – 0.07%
- level 7 – 0.08%
- level 8 – 0.1%
- level 9 – 0.11%
- level 10 – 0.12%
Transaction Charge Commissions
The sale of some Telepreneur Corp products appears to attract an undisclosed transaction fee.
Telepreneur Corp takes 50% of the transaction fee and pays it out as a commission.
Transaction charge commissions are again paid at 10%, using the same ten-level deep unilevel team (see “recruitment commissions” above).
Joining Telepreneur Corp
Telepreneur Corp affiliate membership is available at four price tiers.
The only tier disclosed in their marketing video is the top SGP tier at 21,996 PHP.
Possibly outdated prices for the other packages I came across were:
- Silver – 2998 PHP
- Gold – 6998 PHP
- Platinum – 14,998 PHP
These fit under the SGP package but again could be outdated.
On top of these packages there are “stockist” membership options, further upping the cost of entry.
- Mobile Stockist – 200,000 PHP
- City Stockist – 1,000,000 PHP
Telepreneur’s marketing material refers to these options as “investments”.
The primary drawcard of the stockist packages is multiple earning positions (discussed further in the conclusion below).
Telepreneur Corp Conclusion
It’s pretty clear early on that the focus of Telepreneur Corp is to sign up, pay membership fees and get paid to recruit.
This starts with the complete lack of product specificity on Telepreneur Corp’s website.
Executive and compensation disclosure failures are additional red flags.
What is on offer is a jumbled mess of digital codes and physical products.
I haven’t reviewed Leur Lauren International but I suspect that’s where the tangible products originated from.
Based on the company name and early marketing I’ve seen, Telepreneur Corp started off as a cell phone service reseller.
They’ve since added gaming and cable to that offering. The problem however is that these digital products have slim margins to begin with.
The niches are crowded and competitive. And that’s not a good formula for MLM.
If we look at commissions on offer, the percentages paid out are tiny compared to Telepreneur Corp’s physical products.
With respect to Telepreneur Corp’s physical product, there’s no indication that true retail is actually possible.
Instead it’s the reseller model, which isn’t true retail. The reseller model has a shot at working if commission earnings are tied to verifiable retail sales quotas.
Otherwise it’s just an excuse to get affiliates to purchase products, which drives sales volume and commissions.
That pretty much sums up Telepreneur Corp’s product offering.
Recruitment of Telepreneur Corp affiliates is where the real money is.
You have package costs that dwarf product sales, to the point wasting time reselling products makes no sense.
And Telepreneur Corp themselves know this. The company actively encourages affiliates to purchase multiple affiliate positions when they sign up:
In the official presentation this climaxes in a ridiculous marketing pitch, encouraging recruits to “start big” with seven accounts:
Elsewhere Telepreneur Corp marketing reveals the “City Stockist” affiliate package is bundled with sixty two affiliate income earning positions.
There is no legitimate scenario in any MLM company where an affiliate should even be able to purchase seven accounts, let alone sixty-two.
But that’s Telepreneur Corp’s bread and butter: affiliate membership packages and paying commissions on recruitment.
If it wasn’t obvious already, this is your classic product-based pyramid scheme model.
One last thing I want to touch on is Telepreneur Corp’s disturbing integration of religion into their business.
You saw a taste of this in the Sajiron R. Dayao YouTube thumbnail cited in the introduction of this review.
Religion is a big part of Telepreneur Corp’s marketing, which is a problem.
Regardless of what you think of religion, its use as a marketing tool has no place in legitimate business.
In the Telepreneur Corp marketing video cited for this review, the presenter finished his hard sell with a ten minute reading of scripture.
This is an official Telepreneur Corp corporate marketing presentation. It wasn’t some rogue affiliate.
The problem with religion as a marketing tool is it taps into faith, with the aim of disarming people. Once disarmed, potential victims can be encouraged to undertake actions they might not otherwise be inclined to.
It can get a lot more complex than that (the official term is “religious affinity fraud”), but that’s the gist. Any time religion is mixed into an MLM company’s offering it’s an instant red flag.
Outside of that the usual pyramid scheme caveats apply to Telepreneur Corp’s offering.
Those doing the recruiting earn money, at the expense of the majority who lose it.