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In anticipation of the official announcement, expected to made sometime later this week, TelexFree owner Carlos Wanzeler appeared in a YouTube video uploaded on February 17th:
The title of the video is “TelexFREE Novidades sobre o novo plano de compensação”, which Google translates to “Telexfree News about the new compensation plan”. As far as I can tell, the video doesn’t provide any specifics but is instead a few minutes of Wanzeler ranting about pseudo-compliance (“we don’t want the wrong information to get out there” etc).
Offering up unofficial specifics on the new compensation plan is Russian TelexFree affiliate investor Ivan Kernev. Posting on the site VK (Russia’s Facebook equivalent), Kernev writes
SOME CHANGES IN INTERNATIONAL Telexfree !
First , let me make clear that I learned from people who attended the meeting this afternoon in the U.S. ( So is unofficial ) .
The changes that will occur are for BEST! The Company Legally will be stronger and more balanced too.
The mention of “leaders meeting in the US” is of interest, as it was recently confirmed by Brazilian Public Prosecutors in Acre that a TelexFree US investigation was underway.
Kernev continues on, reassuring his fellow affiliate investors that they will still be able to receive their guaranteed $20 a week ROI, albeit with some new conditions:
Have to start killing the curiosity of all : YES , the gain will remain FIXED! But only for those who qualify in torque , ie , Make 2 Sales of wholesale VoIP franchises (Can Earn even more).
1 ° Every change will start from the day March 8, all contracts signed by March 07 will be completed by the end of the way it is today.
2 ° No more ads daily , Nobody will have to make announcements .
3 ° If you want to continue receiving $ 400 per month , only has until March 7 to buy the Family , because thereafter the Family Pack will no longer exist , other Plans that will be even better for those who actually develops MMN .
4 ° The whole IT team is working on new applications and Brief will be Issued.
I’ll be preparing a more detailed presentation so that all information is 100 % Confirmed by the Company.
Bearing in mind these are currently unofficial changes, the mandatory sale of two VOIP accounts doesn’t surprise me at all. It’s an open secret retail is non-existent within TelexFree and if I had to guess, I’d wager well over 90% of the revenue flowing in and being paid out weekly in returns was sourced from affiliates.
What will be interesting now is the dynamic shift within the company. Existing affiliates will have no problem redirecting a portion of their ROI to two additional VOIP accounts (using fake or family member customer details of course). For new affiliate investors, which the company needs to survive, the scheme now looks a lot less attractive.
Whether or not two VOIP accounts must be sold per AdCentral position or not is unclear, but if it’s one per position… then even for those with large downlines who have invested alot things don’t look too good.
$20 a week is $80 a month, VOIP at retail costing $49 only leaves an effective monthly ROI of $31. That’s $372 annually on a $289 investment. Add on the 20% mandatory re-investment TelexFree on every position after 12 months, and it gets even worse.
But again, at this stage we don’t know whether the VOIP sale requirements are account-wide or per AdCentral investment position.
As for the canning of the mandatory daily spam, can’t say I’m surprised. Both AdSurfDaily and Zeek Rewards pretended their affiliates were getting paid to spam the internet, both went down in Ponzi flames when the SEC investigated.
The ditching of the AdCentral Family investment pack seems neither here nor there, as I imagine those that still want to invest that much can just do so with individual AdCentral position investments.
Kernev states that the new compensation plan changes will come into effect in early March, with current AdCentral investment “contracts” payable till they expire (52 weeks from the time of investment). Supposedly Carlos Costa is going to announce the changes in a YouTube video later this week but this appears to be the gist of TelexFree’s changes.
Looking at the bigger regulatory picture, one has to wonder whether it’s too little too late. Oh and no word on whether or not this has anything to do with i-Payout’s recent crackdown on MLM compliance.
i-Payout handle TelexFree funds and have argued previously that their AdCentral investment scheme is “compliant with all US laws“.
Pending an official announcement from TelexFree, stay tuned…