Many promoters worldwide, both on and off this blog (including yours truly), have been bombarded time and again with needless changes to the new Telexfree compensation plan over the past few weeks; but what noone saw coming was the sudden change in the old contract plan that saw promoters unable to transfer or withdraw their funds.
Now, on retrospect it seems obvious that the company, still under United States SEC investigation, had blatantly and shamelessly lied to its promoters worldwide, and simply made promises largely as a way to keep existing investor promoters happy.
Changes in the Old Contract PlanPromoters had believed Telexfree Inc when the company promised new changes would apply only to promoters entering the new compensation plan. In the same breath, they had promised that the old contracts would run on existing agreements until the contracts outlived their 52-week periods.
All seemed to be well until yesterday, when citing “regulatory requirements”, TelexFree Inc decided to renege on their earlier promises.
I, and a few close promoters, had initially thought that the new information circulating about the old compensation plan was a TelexFree April Fools joke, but as more and more sources confirmed the news, it became apparent that the changes were indeed going ahead.
As has been the norm recently, TelexFree’s latest announcement was done without any formality, with just a message quietly posted in the promoter’s backoffice yesterday afternoon, as below:
The worldwide launch of the new TelexFREE compensation plan is governed by a number of regulatory requirements. One of these requirements is that all Promoters receiving commissions must have personally enrolled retail customers.Additionally, TelexFree also shut off their payment system, prohibiting any affiliates from making withdrawals or transfers of their earnings. What you see when you try to transfer is the same words above, as captured in the image screenshot below (TIP: click on image to make it larger).
To satisfy this requirement, certain Promoters must be ADFamily Plus Qualified with a minimum of 5 personal customers and have recruited and trained at least 2 ADFamily Qualified Promoters, one on each side of their organization.
Regardless of your qualification status, Promoters who have earned income exceeding the cost of their TelexFree99 wholesale package inventory, may use the balance of their back office credit for invoice payments using the pay with bonus function.
|Telexfree's Latest Announcement (on trying to make promoter-to-promoter transfer)|
If they fail to meet these requirements, TelexFree will stop paying them their weekly payouts, in addition to their not being able to withdraw or transfer any funds in their accounts. The only use for the funds would be to pay invoices for opening a new account, or for TelexFree99 calling package inventory UNTIL the stated requirements are met.
The only exception to the new changes would be those Adcentral Family (or Adcentral) accounts opened as from January 2014, but before March 9th 2014; and which are yet to make up to a value of their initial cost of $1375.
For those who had previously invested in TelexFree AdCentral positions and were hoping to just quietly withdraw their weekly ROI until their positions expired, this news comes as a pretty big blow. Many had made significant last-minute investment as compensation plan changes loomed.
Aftermath of the Old Contract Plan ChangeAs happened the last time TelexFree made official changes to their compensation plan, and with millions of dollars now on the line, a mob of furious TelexFree promoters and affiliates stormed the company’s Massachusetts headquarters. See video below.
Initially, a rather frustrated Steve Labriola came out to address the promoters. Weary of his last address being published online, before speaking to the wall-to-wall crowd about the recent changes, Labriola requested people “turn off their cell phones”.
In the video, Labriola is seen to insist repeatedly that TelexFree is a “customer acquisition company”. The sore point in this new change for affiliates is that having five VOIP customers translates into an additional $249.50 withdrawal fee.
Other than those with large downlines and/or a huge amount of money invested, many promoters simply cannot afford a $249.90 monthly fee to access their weekly payouts.
Events at the Telexfree Massachusetts headquarters came to such a head between TelexFree staff and the visibly angry promoters, that the staff all had to hide in the back of their corporate office, while the Police had to be invited to restore peace and order. There are many YouTubeTM videos out there on this.
What This Means for PromotersIf you had an existing contract in the old system as an Adcentral family, you are automatically considered an Adfamily under the new system; however, to qualify as Adfamily Plus, you need 5 customers, AND have sponsored two people (one on your left, one on your right); PLUS both of these positions must also have 5 customers each.
Note that the two positions under you can be the old Adcentral family positions, but you just need to get 5 customers for each of them.
On the other hand, newly created accounts have to go through the process of getting 10 customers, which is a one-time requirement. Thereafter, they also have to sponsor 2 people - one left and one right; PLUS the two positions also must have a minimum of 5 customers. For new positions, 30 days are given to meet these requirements.
Suggested StrategiesStrategies that have been suggested by some leaders for promoters to employ to work out these new terms and conditions:
Situation A – You have an old contract with substantial credits in its statements and would like to cash out.
(1) Qualify the account
- Place 5 customers under old comp contract
- Place one new promoter Right, one new promoter Left.
To Qualify to withdraw, you must have 5 customers and 2 promoters.
a). Cost for qualifying:
- 5 x $49.9 = $249.50
- 2 x $668.80 = $1,337.60
- 2 x $100 direct referral bonus = $200
- 10% Direct Retail Commission for each promoter: 2 x $49.90 = $99.80
- Posting income: 2 X $100 weekly for first month = $200 weekly
i.e. $200 x 4 weeks = $800
Total = $200 + $800 + $99.80 = $1,099.80
- $1,337.60 cost - 1,099.80 income
$237.80 TOTAL COST TO QUALIFY!!!!!!!
1) Decide which accounts you need to qualify
2) Qualify by placing 5 customers and 2 promoters
3) Withdraw into Ewallet after qualifying.
Situation B – You have old contracts which do not have enough credits in it to be worth going through the qualifying process above.
You can cash out this coming Tuesday via ewallet up to a value no more than $1375, that is assuming your account is new (from January 2014 onwards) and has not earned credits above $1375, which if so may already have been moved to other accounts before yesterday.
In essence this means that you will be able to cash out up to your money back, $1425 - $50 for partner fee = $1375 (cost of 50 VOIP initial stock). You will not lose the initial cost of buying the accounts. Any additional credits you earn or have earned above the $1375, can only be used to purchase new accounts or buy VOIP credits.
Situation C- You have some credits in many accounts but your accounts has already made you more than $1375 up to date.
In this situation, the best and only option is to transfer your credits by buying new accounts for yourself, and set it up in a way that you can be cashing out the very next week. By doing this you will be helping yourself and the company to stay compliant and open.
This is exactly what's happening right now in TelexFree. So what do you guys think?
UPDATE (added 4/4/2014):
Roy Lentz says he's received an update from Steve Labriola:
"Last week some people who even met the new requirements still could not withdraw. That was a mistake and will be fixed. We should be able to withdraw funds from an account at least until we have our original purchase cost back.
"After you recover your original purchase cost, you will continue to earn in the account, but you can only use the funds to pay invoices, until you get qualified as an adfamily plus."