Tempo Wireless Review: Complicated wireless with recruitment

Other than claiming Tempo Wireless is ‘a direct selling division of Tempo Communications‘, there is no information on the Tempo Wireless website that specifically indicates who owns or runs the business.

Somewhat annoyingly, the Tempo Wireless website’s “about us” page makes multiple references to a “founding company” without actually naming it. Why Tempo Wireless do not their founding company on their “about us” page is unclear.

Further research reveals the Tempo Wireless “Home Phone Dealer Policies” states:

All refunds are processed through Birch Communications. Any dealers who choose to refund a customer from their cash drawer will not be reimbursed by Birch Communications.

Birch Communications is

an Atlanta, Georgia-based provider of IP-based communications, network broadband, cloud computing, and information technology services to small, mid-sized, enterprise and wholesale business customers in the United States, Canada and Puerto Rico. (Wikipedia)

A June 2013 press-release meanwhile reveals that Tempo Wireless was originally Now Communications.

Birch Communications announced today that its prepaid and lifeline division, NOW Communications, has been officially rebranded as Tempo.

“We feel this name change better reflects how we now serve our customers,” said Vincent M. Oddo, Tempo president and CEO.

Birch Communications also acquired Lightyear Wireless (parent company Lightyear Network Solutions) in 2013, which formed the basis for Tempo Wireless’ MLM offering.

According to a recent press-release, Oddo was also CEO and President of Birch Communications until May, 2016.

Birch Equity Partners announced today that Vincent M. Oddo will assume the position of President and CEO of Birch Equity Partners.

Oddo most recently held the positions of President and CEO of Birch Communications, Inc. and Managing Director of Birch Equity Partners.

Tony Tomae (right) is cited as the current CEO and President of Birch Communications (and presumably Tempo Wireless).

Tomae does not appear to have any MLM industry experience. His LinkedIn profile states he has

broad, repeated experience in transforming executive management teams to focus on building a profitable company.

Read on for a full review of the Tempo Wireless MLM opportunity.

The Tempo Wireless Product Line

Tempo Wireless market access to Tempo Wireless branded and third-party no contract wireless services.

• Tempo Wireless CDMA network plans range from between $44.95 and $64.95 a month
• Tempo Wireless GSM network plans range from between $20 and $69.95 a month
• Sprint Network service plans range from between $20 and $69.99 a month

Full wireless plan details are available from the Tempo Wireless website.

Tempo Wireless also sell a range of cell phones to new and existing service customers and a “home and office” service for $29.99 a month.

Tempo Wireless services may be bought under the Lifeline initiative.

The Lifeline Program is funded by USF – the Universal Service Fund. Contributions from all interstate telecommunication carriers fund the Lifeline Assistance Program by passing along a small cost to all telecom consumers on their monthly phone bills noted as the Universal Service fee.

The Lifeline Program is designed to provide discounts on phone services for qualified low-income citizens. Phones are distributed by authorized companies who incur the initial phone costs.

The assistance, paid by USF, averages $9.25/month in most states, however, in some cases the service is totally free.

Specific qualification criteria for the Lifeline Program is not provided on the Tempo Wireless website.

The Tempo Wireless Compensation Plan

The Tempo Wireless compensation plan pays affiliates for a combination of retail service sales and affiliate recruitment.

Tempo Wireless Affiliate Ranks

There are ten affiliate ranks within the Tempo Wireless compensation plan.

Along with their respective qualification criteria, they are as follows:

• Manager – sign up as a Tempo Wireless affiliate
• Senior Manager – sign up as a Tempo Wireless affiliate and pay $49.99 and have a downline generating at least 18 PCP a month (no more than 50% from any one unilevel leg) or personally generate 18 monthly PCP or generate 1000 active Lifeline customers
• Regional Manager – personally generate and maintain 3 PCP a month and have a downline generating at least 36 PCP a month (no more than 50% from any one unilevel leg) or personally generate 36 monthly PCP or generate 5000 Lifeline customers (no more than 50% from any one unilevel leg)
• Platinum Regional Manager – as above (the Tempo Wireless compensation plan states “Platinum RMs must have 36 active customer points”)
• Vice President – personally generate and maintain 10 PCP a month and have a downline generating at least 72 PCP a month (no more than 50% from any one unilevel leg) or personally generate 72 monthly PCP or generate 10,000 Lifeline customers (no more than 50% from any one unilevel leg)
• Platinum Vice President – as above with a downline generating at least 500 PCP a month (no more than 50% from any one unilevel leg)
• Senior Vice President – maintain 10 personal PCP a month, have at least three Vice President ranked affiliates in your downline and have a downline generating at least 900 PCP a month (no more than 50% from any one unilevel leg) or personally generate 900 monthly PCP or generate 10,000 Lifeline customers (no more than 50% from any one unilevel leg)
• Platinum Senior Vice President – as above with a downline generating at least 1875 PCP a month (no more than 50% from any one unilevel leg)
• Presidential Director – maintain 10 personal PCP a month, have a downline generating at least $100,000 in monthly revenue (no more than 50% from any one unilevel leg), have at least two Senior Vice President ranked affiliates in your downline and have a downline generating at least 3125 PCP a month (no more than 50% from any one unilevel leg) or personally generate 3125 monthly PCP or generate 100,000 Lifeline customers (no more than 50% from any one unilevel leg)
• Platinum Presidential Director – as above with a downline generating at least 6250 PCP a month (no more than 50% from any one unilevel leg)

PCP stands for Personal Customer Points. Affiliates generate PCP by signing up customers to Tempo Wireless’ offered services.

• No Contract Unlimited Talk, Text & Data Plans = 3 points
• No Contract Unlimited Talk and Text = 2 points
• No Contract 700 talk & 700 text $34.99 = 2 points
• No Contract Unlimited Talk = 1 point
• 200 Minute plan = 1 point
• No Contract Home Connect = 3 points
• Tempo Wireless System Monthly Subscription = 3 points
• 50 Pack of Tempo Wireless Marketing Magazines = 3 points
• 25 Pack of Tempo Wireless Marketing Magazines = 1 point
• Tempo Wireless Virtual Voicemail System = 3 points
• Tempo Wireless Home Connect = 3 points

Lifeline customers include an affiliate’s own Lifeline customers and those of their downline.

Note that Platinum rank qualification is not mandatory. A Tempo Wireless affiliate can skip a Platinum rank if they meet the qualification criteria for the next non-Platinum rank.

Commission Qualification

To qualify for commissions, all Tempo Wireless affiliates must have one active wireless customer.

This customer can be the affiliate themselves.

Wireless Customer & Recruitment Commissions

When a Tempo Wireless affiliate recruits a new Tempo Wireless affiliate who activates a wireless service they receive a commission.

How much of a commission is earned is determined by a Tempo Wireless affiliate’s rank:

• Manager and Senior Manager – $13
• Regional Manager – $15
• Vice President – $17
• Senior Vice President – $19
• Presidential Director – $23

The immediate upline of the recruiting affiliate also receives a $2 commission.

Note that if a newly recruited Tempo Wireless affiliate activates their own wireless service, the above commissions are effectively recruitment commissions.

Residual Customer & Recruitment Commissions

When recruited Tempo Wireless affiliates sign up a wireless customer, a residual coded bonus is paid out.

• Senior Manager – Manager makes a sale = $2 bonus
• Regional manager – Manager makes a sale = $4 bonus, Senior Manager makes a sale = $3 bonus
• Vice President – Manager makes a sale = $6 bonus, Senior Manager makes a sale = $4 bonus, Regional Manager makes a sale = $2 bonus
• Senior Vice President = Manager makes a sale = $8 bonus, Senior Manager makes a sale = $6 bonus, Regional Manager makes a sale = $4 bonus, Vice President makes a sale = $2 bonus
• Presidential Director – Manager makes a sale = $10 bonus, Senior Manager makes a sale = $8 bonus, Regional Manager makes a sale = $6 bonus, Vice President makes a sale = $4 bonus, Senior Vice President makes a sale = $2 bonus

The sponsor of an affiliate getting paid a coded bonus also receives a $2 commission.

Note that these coded bonuses are paid out when customers are acquired anywhere in a Tempo Wireless affiliate’s downline.

Also note that if a newly recruited Tempo Wireless affiliate activates their own wireless service, the above commissions are effectively recruitment commissions.

HomePhone and Lifeline Customer Commissions

When customers or recruited affiliates active either a Home Phone or LifeLine service, the following one-time commissions are paid out:

• Manager – $10 for a Home Phone service and $4 for a Lifeline service
• Senior Manager – $10 for a Home Phone service and $4.50 for a Lifeline service
• Regional Manager – $10 for a Home Phone service and $5 for a Lifeline service
• Vice President – $10 for a Home Phone service and $5.50 for a Lifeline service
• Senior Vice President – $10 for a Home Phone service and $6 for a Lifeline service
• Presidential Director – $10 for a Home Phone service and $6.50 for a Lifeline service

The sponsor of an affiliate receiving a Lifeline customer commission also receives a $1 commission.

Direct Retail Customer Commissions

Tempo Wireless affiliates earn a residual commission on services used by retail customers (this does not include recruited affiliates).

Commissions are paid out as a percentage of the amount retail customers are billed each month.

How much of a percentage is earned is determined by an affiliate’s total retail customer billing volume for that month:

• $1249 or less = 1%
• $1250 to $2499 = 4%
• $2500 to $3749 = 6%
• $3750 to $4999 = 8%
• $5000 or more = 10%

The immediate upline of an affiliate who qualifies for an up to 1% override on the above direct retail customer commissions as follows:

• downline affiliate qualifies for a 1% or 4% direct retail customer commission = upline affiliate is paid a 1% commission
• downline affiliate qualifies for a 6% direct retail customer commission = upline affiliate is paid a 0.75% commission
• downline affiliate qualifies for an 8% direct retail customer commission = upline affiliate is paid a 0.5% commission
• downline affiliate qualifies for a 10% direct retail customer commission = upline affiliate is paid a 0.25% commission

Note that to qualify for direct retail customer commissions, a Tempo Wireless affiliate must have ten active PCP.

Residual Retail Customer Commissions

In addition to direct retail customer commissions, Tempo Wireless affiliates can earn residual retail customer commissions via 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):

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.

Tempo Wireless cap payable unilevel levels at eight, with dynamic compression used to fill inactive positions in a unilevel team.

Residual retail customer commissions are paid out as a percentage of retail customer billing amounts.

A Tempo Wireless affiliate can earn up to 4% on retail customer billing amounts across eight unilevel levels.

How much of a percentage is paid out is determined by a Tempo Wireless affiliate’s PCP and wireless customer commission amounts:

• 10 active monthly PCPs = 1%
• 15 active monthly PCPs nd $250 paid in wireless customer commissions = 2%
• 20 active monthly PCPs and $500 paid in wireless customer commissions = 3%
• 20 active monthly PCPs and $1000 paid in wireless customer commissions = 4%

Platinum Presidential Directors are not subject to the above qualification criteria, provided they are commission qualified and maintain their Platinum Presidential Director rank.

Recruited Monthly Affiliate Fee Commissions

Each Tempo Wireless affiliate is charged a monthly $49.99 fee.

This fee is commissionable with affiliates earning a direct commission per recruited affiliate based on their rank:

• Manager – no commission
• Senior Manager – $3
• Regional Manager – $7
• Vice President – $11
• Senior Vice President – $15
• Presidential Director – $18

The following overrides are paid out on fees paid by recruited affiliates anywhere in a Tempo Wireless affiliate’s downline:

• Senior Manager – recruited Senior Manager = $1
• Regional Manager – recruited Senior Manager = $4, recruited Senior Manager = $1
• Vice President – recruited Senior Manager = $8, recruited Regional Manager = $4, recruited Vice President = $2
• Senior Vice President – recruited Senior Manager = $12, recruited Regional Manager = $8, recruited Vice President = $4, recruited Senior Vice President = $2
• Presidential Director – recruited Senior Manager = $15, recruited Regional Manager = $11, recruited Vice President = $7, recruited Senior Vice President = $3

Magazine Commissions

When downline Tempo Wireless affiliates purchase 25 or 50 magazines, the following commissions are paid out:

25 Magazine Order

• Manager – no commission
• Senior Manager – 50 cents
• Regional Manager – $1
• Vice President – $1.50
• Senior Vice President – $2
• Presidential Director – $2.50

50 Magazine Order

• Manager – no commission
• Senior Manager – $1
• Regional Manager – $2
• Vice President – $3
• Senior Vice President – $4
• Presidential Director – $5

A coded bonus is also paid on magazine orders placed by affiliates anywhere in the downline:

25 Magazine Order

• Manager and Senior Manager – no bonus
• Regional Manager = 25 magazine order by Senior Manager = 50 cents
• Vice President = 25 magazine order by Senior Manager $1, 25 magazine order by Regional Manager = 50 cents
• Senior Vice President – 25 magazine order by Senior Manager = $1.50, 25 magazine order by Regional Manager = $1, 25 magazine order by Vice President = 50 cents
• Presidential Director – 25 magazine order by Senior Manager = $2, 25 magazine order by Regional Manager = $1.50, 25 magazine order by Vice President = $1, 25 magazine order by Senior Vice President = 50 cents

50 Magazine Order

• Manager and Senior Manager – no bonus
• Regional Manager – 50 magazine order by Senior Manager = $1
• Vice President – 50 magazine order by Senior Manager = $2, 50 magazine order by Regional Manager = $1
• Senior Vice President – 50 magazine order by Senior Manager = $3, 50 magazine order by Regional Manager = $2, 50 magazine order by Vice President = $1
• Presidential Director – 50 magazine order by Senior Manager = $4, 50 magazine order by Regional Manager = $3, 50 magazine order by Vice President = $2, 50 magazine order by Senior Vice President = $1

Note that to qualify for magazine order commissions, a Tempo Wireless affiliate must have an active monthly magazine subscription themselves.

Rank Achievement Bonus

Tempo Wireless affiliates are paid a one-time Rank Achievement Bonus when they qualify at the Platinum Regional Manager or higher rank:

• Platinum Regional Manager – $1000
• Platinum Vice President – $10,000
• Platinum Senior Vice President – $37,500
• Platinum Presidential Director – $125,000

Note that the Rank Achievement Bonus is paid out over 40 months (rank requirements must be maintained).

Free Wireless Service

Tempo Wireless affiliates who

• sign up three wireless retail customers or recruit three affiliates who sign up for a wireless service in a month
• generate and maintain 10 PCP a month

qualify to receive “up to $120 in free wireless service” that month.

Car Bonus

A Tempo Wireless affiliate is able to receive up to $1500 a 1500 a month “toward a car of their choice”, subject to the following qualification criteria:

• $50,000 a month in total downline revenue = $500 a month car bonus
• $500,000 a month in total downline revenue and $2000 a week in wireless commissions = $1500 a month car bonus

Note that at least 50% of the required revenue must come from two separate unilevel legs.

Revenue Sharing Pool

Tempo Wireless’ Revenue Sharing Pool is made up of 1% of the company’s commissionable volume.

Vice President and higher ranked Tempo Wireless affiliates are awarded one share in the Revenue Sharing Pool for every $250 in monthly wireless service commissions they earn.

Qualifying affiliates must also maintain:

• 15 monthly PCP if qualifying as a Vice President
• 20 monthly PCP is qualifying as a Senior Vice President or Presidential Director

Platinum Presidential Directors are exempt from the above PCP qualification criteria.

$1000 Bonus Guarantee

Tempo Wireless affiliates who purchase a monthly 25 magazine subscription can qualify for a $1000 bonus guarantee if they

1. distribute the magazines to prospects
2. record the contact information of prospects they have distributed magazines to and
3. “make a good faith attempt to follow-up with the prospect and gain a decision for them to become either a customer or a distributor

By following our simple magazine marketing system Agents can qualify to earn a guaranteed $1,000 in total bonus earnings within six months of activating their magazine subscription or Tempo Wireless will pay the difference from what the Agent has earned.

Joining Tempo Wireless

Those wishing to join Tempo Wireless as an affiliate must sign up as either a Manager or Senior Manager:

• Manager – $49.99 a month plus $50 annually after 12 months
• Senior Manager – $49.99 plus $49.99 a month and $50 annually after 12 months

The primary difference between the two affiliate options is income potential through the Tempo Wireless compensation plan.

Conclusion

Like most service-based MLM companies, Tempo Wireless’ compensation plan is headache inducing.

It’s complicated, requires hours upon hours to make even the slightest sense of and what’s worse, appears to have blatant compliance issues.

As I see it, the core problem with Tempo Wireless’ MLM offering is that affiliates can self-qualify for commissions. They pay for a service, qualify for commissions and then focus on recruiting other affiliates who do the same.

The only potential hiccup is PCP points, however only ten a month are required to max out the compensation plan.

A few wireless plans and you’ve easily hit the 10 PCP requirement.

For their part Tempo Wireless do state in their compensation plan that

While Tempo Wireless highly encourages you to be your own best customer we also feel it’s vital to have as many outside customers as you can.

Your long term goal in Tempo Wireless should be to have at least 20 personal customer points with many of those coming from outside customers (non Agents).

This I feel is a good benchmark to use when conducting due diligence into a potential Tempo Wireless upline.

If you’re thinking about signing up under a Tempo Wireless affiliate, ask them how many retail PCP they generate each month. If it’s nowhere near 20, ask them how many affiliates they’ve recruited.

If they’ve got a number of affiliates recruited yet have 10 or less PCP (10 being the bare minimum required), you might be looking at a recruitment-focused business opportunity.

Certainly Tempo Wireless’ direct and residual recruitment commissions don’t help, nor does the whole magazine subscription stuff.

Tempo Wireless affiliates handing them out to prospects makes them sound like marketing tools, which there’s nothing wrong with… except outside of a $1000 six-month guarantee, there’s no checking on what affiliates do with magazines they receive.

Thrown into this is a commission structure, which pays Tempo Wireless affiliates each month when their downlines purchase magazine subscriptions. Oh and did I mention an affiliate has to have a subscription themselves if they wish to qualify?

Considering the magazines are marketing tools purchased solely by affiliates, that’s some serious product-based pyramid scheme nonsense right there.

Pay to play is also inherent in Tempo Wireless’ compensation plan, with affiliates able to purchase the Senior Manager rank for $49.99. Managers are excluded from a number of commissions, so there’s a definite financial incentive to paying more when signing up as an affiliate.

Commission qualification in MLM should always be based on individual sales performance, not how much an affiliate spent when they signed up.

As to the wireless service itself, Birch Communications appear to be a stable enough company and significant player in the telecommunications industry.

That said the wireless industry in particular is highly competitive, so be sure to check out the competition in your area.

Granted I don’t have intimate knowledge of Lightyear Wireless’ compensation plan, however I do feel perhaps the problems in Tempo Wireless’ plan are a legacy of inheritance.

If Tempo Wireless simplified their compensation plan, enforced solid retail qualifiers (all they’d have to do is make PCP retail only) and got rid of the magazine and direct recruitment commissions, they might be viable for an MLM company operating in 2016.

As is however, Tempo Wireless’ offering is more miss than hit.