Telexfree Introduce Changes in Old Contract Plan - implication for promoters worldwide


Do not invest. This has been proven to be scam! Read this article!!
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.
Despite a feeling of uncertainty over the now ever-changing new compensation plan, promoters who previously invested funds before the month of March were repeatedly reassured by the company that their weekly return-on-investments (ROIs) would continue to be paid out.

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 Plan

Promoters 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.

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.
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).

Telexfree Introduce Changes in Old Contract Plan
Telexfree's Latest Announcement (on trying to make promoter-to-promoter transfer)
As for the changes, existing TelexFree promoters will be required to either sell or personally invest in five VOIP positions ($249.50 a month) and personally recruit two affiliates who do the same.

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 Change

As 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 Promoters

If 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 Strategies

Strategies 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.
(2) Withdraw the funds
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
b). Income from Qualifying:
  • 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
c). Net Cost:
  • $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."


  1. My account under situation C. Is it possible to pay bills of newly created account from old (C situation) account ?

    1. Hi Mohammed, it's just that Telexfree keeps changing its rules of engagement by the second, that you no longer know what to advise anyone any more. But from simple logic and what was discussed and agreed on as at the time of publishing this post, the answer to your question is YES, it is very possible.

  2. Hello. Im from the old contract. I have two direct referals from the old contract. One on the left and one on the right. Do I just have to sell the 5 voip to become active to withdrawl or transfer or do I have to bring in two more new direct referalls????? Do the two old referals have to sell 5 voip for me to become active to withdrawl???

    1. Hello Foxyfast, under the latest Telexfree revision, there's really little or no difference between new and old contracts ~sighs~ except if you joined after December 2013.

      So if you have two promoters on either side below you, then both you and your two promoters ALL require 5 clients each to transfer or withdraw from your account.

  3. Hi... I manage to withdraw 10 days ago.. and supposed to be credit into my prepaid card today. Unfortunately the money doesnt seem to be there... what should i do?

  4. Hi! First many thanks for all clarifications. You've all been the light at this tunnel!

    I joined Telexfree on 27 Dec 2013 with a family package. With the latest changes, I'd like to cash out my investment. Currently I only have one ADfamily promoter under me, who joined in January. I saw the instruction in situation A above, but when I try to buy a new Promoter account for the value of 668.80 to complete my binary & qualify, the new system only gives me the option to buy an Associate account of 149.90 + monthly fee for 19.90.

    Is it still possible in any way to buy a Promoter package directly? Or do I have to buy this Associate package, then buy 10 costumers for him to have him qualified as Promoter?

    1. Hello there Christopher, you CANNOT buy a new promoter account like in the old days. To purchase any new account NOW, you must first buy an associate account + the monthly fee. Then you must enroll (or buy) 10 customers - this is a one time requirement for all new accounts. Subsequently, that account will need only 5 customers. Hope this explanation shed some light on your question.

  5. Hello Ikenna,

    I have three old accounts open in January 2014. I have not withdraw or transfer any funds from all three accounts. My question is, do I need to open ewallet for all three accounts or just open one for the first accounts and transfer funds from the other two accounts to that ewallet?

    I also have one account that I open in November 2013 but I have only withdrawn $400 from this account. Will I still be able to withdraw until I meet the $1425 that I put in?

    thank you

    thank you

    thank you

    1. Hello @nn, for your first question, please note that all Telexfree accounts have eWallets opened when affiliates/promoters sign up for Telexfree accounts. So each of your Telexfree accounts should already have eWallets attached to them. At least, that was my experience. All you got to do is either withdraw OR transfer to other people who can pay you cash.

      For your second question, following the company's explanations, YES you should be able to withdraw. However, you won't know if you can until you try. So try right now!

  6. Hello Ikenna,

    I am a promoter who has 2 account in old contract and 1 acc in new one.
    I especially you my question about my both account in old contract. Both of them registered on Feb 10th, 2014 as Family Adcentral. According to your article above, what should be happen to them?

    1. Will they can be indicated as exception of the plan changing?

    2. Or if they categorized as non exceptions, according to you, in which situation they are (my 2 accounts in old plan, registered on Feb 10th, 2014)?

    3. After I get my money back 1375$, what should I can do for the strategy?

    Regardly, yours


    1. Hello Avin, i'm sorry for replying late, but i have been trying to understand your words. If i understand you well, you're asking if your old accounts will be affected or not.

      Well from your explanations above, i think you can withdraw from your accounts (until you get to the initial cost) after which you will need to be a QUALIFIED Adfamily plus to withdraw more funds.

    2. Thank You very much Ikenna.

      I am so sorry for my poor English.

      Last request, please show me the way how I can withdraw my funds if wire transfer menu in globalewallet now is inactive for me. FYI, along this time, I never WD via ewallet. Now I want to WD by myself in ewallet, but, it is difficult to me now because of the problem that I told above (wire transfer menu).

      Thank you so much Ikenna.


    3. Thanks Ikenna for your reply

      Now, Would you like to help me what should I can do if my SSN Tax ID is lost?
      I forget it. Please tell me how to get it back.

      Thank you my friend.

    4. Hello Avin, i have no idea. Please contact Telexfree support for all these questions. Go to to contact them real time.

  7. Good morning i have 3 old accounts opened last year, the first (adcentral family) has 2 affiliates, 1 on the right (adcentral family) and 1 on the left (adcentral). which strategy may i use to withdraw my money?
    thank you

    1. Hello Ghislain, please read the article above, and considering the amount in your account right now, take your decision. The article above is simple and straight-forward.

  8. Guys, am just confused and i dint understand the all thing now.I thought i would withdraw my 400$ today? tell me if these guys plan to sort out things and we get our money.this has put me on pressure seriously.I wound not mind if it fails today but will they allow us to do the withdraw after today because it will accumulate by next Tuesday so am scared and i need to pay my bills.can anyone help me please?

    1. Hey dude, that's a question only Telexfree can answer. We all are going through the same emotional trauma you are experiencing. Only time will tell!

  9. what if i fail to get funds for the new plan, and i want to quit can i get the money accumulated on my account i have $4000

    1. If you don't want to spend money on the new plan + 5 voips (actually 10 as a 1st time requirement), the answer is YES you can accumulate your earnings BUT you MUST either recruit QUALIFIED adfamily plus on your left and right; or forfeit the earnings inside of your Telexfree account. That's what i can advise.

  10. I am from Canada. All (my account and all of my down lines - both <$1375 & >$1375 withdrawal) ewallet have problem. Ewallet gives information "Bank Account cannot be used to make the transfer" and showing red cross in a box. While I am trying to explore reason I found that there is no choice of selecting Country- only drop down option is America. Could you please suggest any way to solve problem ? I "Send questions" to ewallet support but haven't any answer.

  11. Old plane have to have five new customers. Cost $250-commmission $50= $200 each month. If he is a familly plus his total income will be $180. Equation is [(family plus income400- cost200)-{(family1 income 200- customer cost200) + (family2 income 200- customer cost200)}]-monthly maintenance $20. = $180. Now Family income is $ZERO only; 200 income minus 200 cost!!!!!!!
    OK, suppose two down line will be a family plus, So those two need to have another four (2+2) down line. And so on. Somewhere it must stop. At that point those people will lose money. Because as you see above Family (not Family plus) income is absolute ZERO

    1. Hello Mohammed, thanks for the insight. You have analyzed it all.

  12. And wont that be as good as a ponzi.. in a nutshell? meaning you can not earn unless you recruit hence what you initially invested was like a free offer! any comments

    1. Well Irene, you've said it all! Except other people wish to add to your comment.

  13. Would you please help me about ewallet question ?

  14. can i get my money if i cant mange the new compesation plan

    1. Hello David, it all depends on what you mean by "manage". If you mean not buying VOIPs, then you won't get your money.

  15. hello, I have bought 3 accounts under the old comp. plan. One is sept. 2013 and 3 in feb 2014. The first one is at 1700$ income, the other three at are 200$ each. Whats do I loss/gain by the end of 2014?

    1. Hello Mohammed, your question for computation is a long one. Just read through the details above and work out the finer details for yourself. The article is simple and straightforward enough. Cheers my friend.

  16. Wooooo Have you guys seen today's notice about bankruptcy, i can't post ads or even withdraw money. This is turning out to be a ripoff.. Anyone care to shade some light on this please

    1. Hello Andy, just like you rightly pointed out, Telexfree is now bankrupt. For more on this, read this article: