A new cellular telephone MLM company is launching in the United States as we speak. It’s called Solavei and a lot of people are going to be asking “is Solavei a Scam?”
I was approached by someone pre-launch that wanted me to look into it. They had some friends involved and wanted to know my opinion of Solavei. Was it a good opportunity or not? Being someone with a reputation in the MLM industry they wanted my opinion (and of course were secretly hoping I’d want to join them.)
I know some people in the industry and within my own Send Out Cards team won’t want me to make another controversial post about a new MLM company. They prefer for me to keep my mouth shut. However I don’t believe people should be misled. I’ve pointed out several other bad opportunities in the past. I will continue to do so and warn as many people as I can.
I’m not here to call Solavei a scam or not. I’m simply here to point some facts out to you that you may want to think about before you get involved.
- At the time of this writing the Solavei CEO Ryan K. Wuerch has 5 lawsuits pending from 2011 when he was CEO with Motricity, Inc.
- Several MLM based cellular phone companies have tried the same thing before, and have failed. (Global Verge, and Wow Mobile for example.) One of the problems is they really don’t own the cellular network. Solavei claims to be an actual cell phone carrier but in fact they use the T-Mobile network. That means they are dependent on another company and if something happens and they lose their contract you lose all your customers! If you read the link I posted for Wow Mobile you’ll see that their contract with T-Mobile actually bankrupted Wow Mobile.
- The compensation plan. Look at the Solavei compensation plan. I’ve seen a lot of MLM companies and when you start looking at what you can make from 5000 customers on Solavei it’s pretty bad. Their goal is to make “millions of thousandaires”. Uhm, so what? Thousandaires? Big deal. I know a company that wants to make more Millionaires in the next 5 years than any other MLM has ever done. THAT IS A BIG DEAL, not thousandaires.
- Deceptive marketing practices. Watch the launch videos where the CEO Ryan Wuerch talks about his great track record… but this is the same guy being sued in 5 separate lawsuits for his poor track record as CEO with his last company! In another video they claim to be an actual cell phone carrier. That statement that implies that somehow their different than other MLMs that rent time from a cellular network. That statement implies they own their own network. The answer is no they don’t. They’re network provider is T-mobile. They don’t own their own network.
- The cell phone industry is a commodity industry. The more people that use cell phones the lower the rates go. The lower the rates go the less profit their is for you. I saw this happen 10 years ago in the long distance industry. There were lots of companies making Billions selling 10 cents a minute long distance through MLM. But now you can get flat rate unlimited long distance for $20 (or less) a month. There’s no profit left! People used to pay on average $60 a month for long distance but now they get their local phone and long distance for $20 or less a month! The same thing is happening to cellular. What once cost $100 a month now costs $49. What is going to happen when you get the same service for $19 a month? How much profit is going to be left to pay YOU the distributor?
I’ve seen enough from Solavei already to say that I wouldn’t want to get involved.
I don’t think Solavei is a scam… but I certainly would think twice before investing time and money into building an organization with Solavei. I don’t see it lasting more than a 1-3 years. Would you really want to build a large organization with a company that is doomed to failure, only to have to start over in a few years? What would that do to your reputation if this does happen? Is it worth the short term income you could make?
This is just one person’s opinion. One person who has been in the MLM industry for 10+ years. One person who makes a full time income from MLM and has for awhile.
If I was going to do a cellular telephone based MLM I’d join a solid reputable company like ACN. They not only sell cell phones but lots of other technology and services. They’ve been around a long time and they’re not going anywhere. You could build a buisness there and know they’ll still be around 5 years from now. (I am not, and have never been an ACN rep but I have respect for their company.)
- Ben Fitts
NO affiliate links here at all. I’m not trying to do one of those reverse sales pitches where someone calls Solavei a scam and then tells you it isn’t and tries to recruit you! In my opinion I don’t like this company and wouldn’t recommend it to others.сондажиIf you enjoyed this post get free updates via email or RSS here.