TelexMOB Review: Shameless TelexFree reload scheme
There is no information on the TelexMOB website indicating who owns or runs the business.
The TelexMOB website domain (“telexmob.com”) was registered on the 2nd of March 2015, however the domain registration is set to private.
The TelexMOB website does have an “about us” section, but no specific details of the company’s ownership or management structure are provided:
Group of Investors and market analysts, who believe in a highly profitable market. The market Advertising and Technology gradually increases and already a worldwide trend. We are returning to once again make a difference in Multilevel Marketing.
Our Facilities are scattered in various world countries, so as to bring the security that everyone wants.
The TelexMob, begins operations in several countries, showing once again its market strength.
And if you’re wondering what the “comeback” theme is all about, it’s because TelexMOB aims to identify itself with TelexFree.
From the logo, the name of the opportunity, affiliate membership labels and marketing copy present on the website, the owner(s) of TelexMOB are clearly targeting those who lost money in TelexFree.
TelexFree was a $1.8 billion dollar Ponzi scheme shut down by Brazilian authorities in 2013, with the SEC shutting down their global operations in 2014. Hence the line: “Our Facilities are scattered in various world countries, so as to bring the security that everyone wants.”
The implication obviously being that TelexMOB believe they are safe from regulatory action.
Why would they feel the need to make such reassurances?
Read on for a full review of the TelexMOB MLM business opportunity.
The TelexMOB Product Line
TelexMOB has no retailable products or services, with affiliates only able to market affiliate membership to the company itself ($60-$1250).
There is brief mention of advertising in the TelexMOB compensation plan, however this doesn’t appear to have anything to do with the MLM opportunity.
The TelexMOB Compensation Plan
The TelexMOB compensation plan sees affiliate sign up and invest in an affiliate membership. This is done on the expectation of an advertised weekly ROI, with affiliates also paid to recruit new affiliates into the scheme.
In order to qualify for commissions, all TelexMOB affiliates must spam the internet daily.
This is achieved via the TelexMOB affiliate backoffice, through which the company supplies affiliates pre-written advertisements to spam with.
TelexMOB affiliates are paid to recruit new affiliates.
How much of a commission is paid out depends on how much a newly recruited affiliate spends on their affiliate membership:
- Start ($60) – $15
- AdCentral ($220) – $30
- Advanced ($750) – $60
- AdFamily ($1250) – $120
Although not explicitly clarified in TelexMOB’s compensation plan material, I believe an affiliate cannot earn a higher recruitment commission then at the level they themselves bought in at.
Eg. If an AdCentral affiliate recruits an AdFamily affiliate, they are still only paid $30. The only way to earn $120 is to pay the fee to become an AdFamily affiliate first.
Residual commissions in TelexMOB are paid out using a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
These teams are made up of recruited affiliates, with points tracked between the two sides.
Points are accumulated via affiliate recruitment, with each affiliate membership having a specific point amount attached to it:
- Start – 75 points
- AdCentral – 150 points
- Advanced – 300 points
- AdFamily – 600 points
At the end of each day, TelexMOB tally the points generated by both sides of the team. A percentage commission is then paid out on the points generated by the lesser team.
For the purpose of commission calculation, each points is worth $1.
How much of a percentage of the lesser side’s points is paid out, is determined by how much a TelexMOB affiliate spends on their membership:
- Start – 10% (capped at 2000 points or $200 a day)
- AdCentral – 20% (capped at 10,000 points or $2000 a day)
- Advanced – 30% (capped at 20,000 points or $6000 a day)
- AdFamily – 50% (capped at 20,000 points or $10,000 a day)
If a TelexMOB affiliate’s lesser binary team generates at least 4000 points a day for a minimum 20 days in a month, they qualify for a share in 1% of the company’s total revenues for that month.
Residuals commissions are paid out on the binary earnings of affiliates using a unilevel compensation structure.
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):
In turn, if any of these level 1 affiliates go on to recruit new affiliates, they are then placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates go on to recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
TelexMOB cap payable unilevels at six, paying out 2% of the binary commissions earned by all affiliates in a unilevel team.
Starting at the ADCentral affiliate level, TelexMOB pay affiliates the following weekly ROIs:
- AdCentral – $20 a week
- Advanced – $50 a week
- AdFamily – $120 a week
There is no maturity period for these ROIs specified in the TelexMOB compensation plan.
TelexFree paid out their ROIs for 12 months, so presumably this is the same contract length TelexMOB are using.
Team Builder Bonus
If a TelexMOB affiliate recruits at least 10 AdFamily affiliates within 60 days of joining the company, they qualify for a share in 2% of TelexMOB’s company-wide revenue.
This share pays out monthly until a balance of $39,000 has been paid out or 12 months has passed, whichever occurs first.
Affiliate membership with TelexMOB is tied into the purchase of one of their affiliate memberships:
- Start – $60
- AdCentral – $220
- Advanced – $750
- AdFamily – $1270
An additional monthly $60 “activation” fee applies, irrespective of which level an affiliate signs up with.
Whereas TelexFree attached itself to an irrelevant VOIP offering, TelexMOB have substituted in advertising.
As with TelexFree, TelexMOB’s advertising ruse has nothing to do with revenue generation, which is entirely pegged to affiliates signing up and paying their affiliate fees.
In addition to getting paid to recruit new affiliates (pyramid scheme), the inclusion of weekly ROI payments renders TelexMOB’s affiliate positions securities.
Affiliates pay between $220 to $1270 on the expectation of an advertised weekly ROI.
The rest of the commissions offered by TelexMOB serve only as recruitment incentives, as new affiliate investment is the lifeblood of the scheme.
As with all Ponzi schemes, once new affiliate investment (in membership) dries up, TelexMOB will find itself unable to meet it’s weekly ROI obligations.
That is of course if regulators don’t intervene and shut them down first.
Currently the TelexMOB website appears to be in an embryonic stage. If the scheme catches on, considering the use of TelexFree’s logo, terminology and premeditated targeting of victims of the scheme, don’t expect this to fly under the regulatory radar for too long.
Those who lost money in TelexFree would be well-advised to learn from their mistakes, rather than set themselves up to lose even more money to the person(s) unknown running TelexMOB.