Monday, June 02, 2008


A website lists all of the companies that offer telecom services by MLM - multi-level marketing like Amway. TeamEscape does a comparison of how much you can make here. If you sign up 29,000+ customers at $49.99 per month, you can make $8K per month ($96K gross with no benefits and pay expenses out of that... oh, and buy yourself new friends cuz your old ones will tire of you :) The funny thing about the comparison is that TeamEscape resells Packet8 at $19.99. " As of March 31, 2008, 11,011 companies subscribed to Packet8 business services", according to the 10Q. 8x8 has been selling VoIP since Nov., 2002, so it took them 5+ years to reach half the number of customers that would almost provide $100K in revenue. Easy.

Why bring this up? Well, Excel and LightYear sell via MLM. And I picked up a copy of Success at Home magazine and the entire issue was devoted to 5Linx, an MLM company that offers VoIP, VideoPhone, DBS, Cellular and Broadband. They resell DISH, DirecTV, Nexte, T-Mobile, and others. The broadband companies are not listed. But there isn't a residual to be made selling DBS -- oh, wait, $1 per month per account.

5Linx used to resell Trinsic (Z-Tel). Now they use Globalinx, which they claim is their network that they built and run. The Globalinx offer looks a lot like the SunRocket deal - only Globalinx gives you lots more International included in the $30 Unlimited Plan. (Can you say money loser?)

So where does 5Linx make its money? From its "distributors" - those folks that buy into a dream of passive residual income. It costs $499 to sign-up and get the start up kit. You have to buy their $30 service and there's a $99 annual renewal fee (all here). When you do some research you find that 5Linx is a huge scam. (Here)

ACN was probably the first to resell telecom via MLM. There are dozens of people who have a problem with them as well. (I have a problem with $499 to become a rep.) The reason: How do you pay your reps commission upline and down level when you charge $24 for Unlimited VoIP??? There isn't sufficient profit on resale of VoIP. (I think the 911 is hinky too on some of tehse guys).

Talk Fusion is another MLM company that is selling Video email. I know people in MLM -- and I was in Amway once long ago -- they sell that dream to folks. Prey on the hope. At the end of the day, they don't tell you that you have to run a business - selling, recruiting, working it. The Diamonds and Platinum SVP's have traded in a W-2 to tour the country constantly speaking, recruiting and selling. 98% of people drop out of MLM programs mainly because of the, well, deceit is an ugly word, it's more like disinformation and stuff that is left out. In Amway (and other similar programs) money is made from the system - seminars, tapes, collateral, lessons, books, DVD's - all stuff to motivate you and help you sell. Money isn't made from actually selling the product. (At Packet8 at $20, 10% is $2 -- you are sharing $2 with the MLM company, your upstream and your downstream. Good luck! This is kind of off topic but I can't believe how many charlatans are in the VOIP space.

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