Breaking MLM Telecommunication News: Sherm Henderson Takes Lightyear Network Solutions Public

Breaking MLM Telecommunication News: Sherm Henderson takes Lightyear Network Solutions public in a reverse merger with Libra Alliance.

Sherm Henderson
Official Press Release

This has been a long term goal of Sherman Henderson’s and there is no doubt, this move will help drive the network marketing arm of the company run by Josh Henderson – Lightyear Wireless.

Lightyear HQ

You can read a few of the public reports below:

Business First

MSN News

Courier Journal

Congratulations to the Henderson family, the Lightyear corporate staff and employees and most of the Lightyear field force.

Living An Epic Adventure,

Troy Dooly

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47 thoughts on “Breaking MLM Telecommunication News: Sherm Henderson Takes Lightyear Network Solutions Public”

  1. When you drop your pricing from a post-paid $99 for voice, $39 for data, and $20 for texting, and instead charge $59.99 for everything together, of course your revenue is going to drop. it doesn't mean profitability drops. Lightyear decreased it's prices, just as Verizon, ATT, Sprint and TMobile have been dropping their prices. The big 4's revenue is going down too, but you can bet they are doing just fine, as is Lightyear. The good thing is, Lightyear's margin is the same even though the price is less. So, the customer gets a better price, Lightyear keeps the same margins of profit. Why does the revenue even matter? I thought profit is what mattered, not revenue.


    Troy LY are making massive losses…please investigate for dist sake…

    Check out this excerpt from their latest filing. Pay close attention to the wireless revenue decline.


    Revenues for the three months ended March 31, 2010 and 2009 were approximately $11.3 million and $16.5 million, respectively, a decrease of $5.2 million or 32%. Voice revenues decreased $1.7 million or 24%, to $5.0 million from $6.7 million. Local service revenues decreased $0.3 million or 12%, to $2.1 million from $2.4 million. The decrease in voice and local revenues is primarily due to many small and medium business customers moving to integrated solutions that combine voice, local and data into one VoIP solution for a much lower cost. Also many residential customers are abandoning their local lines and moving to wireless only service. VoIP revenues decreased $0.3 million or Q18%, to $1.0 million from $1.3 million. While business VoIP revenues are up, our residential VoIP revenues are down, due to a shift in sales focus from VoIP to wireless service. Data revenues decreased $0.4 million or 27%, to $1.0 million from $1.4 million, due to the loss of a large frame relay customer. Wireless revenues decreased $1.9 million or 74%, to $0.6 million from $2.5 million, which is reflective of a more cautious marketing program after an aggressive rollout of our wireless product in late 2009.

  3. Curious,

    I will be doing an update on Lightyear in the next 10 days. Some of the things they have done lately shows the direction they are moving and how dedicated they are to creating the next Billion dollar telecommunication company.

  4. FDI Agent, you do not hear me slamming your program or your leaders. Please show the same respect. And for that matter, if you must say something negative, at least back it up with verifiable facts, not just "your leader is a weasel." (also, learn to spell… it's not "wezel")

    Grow up and stop making this industry look bad with your juvenile posts!

  5. Your weakness is your leader is a wezel ! know that tool who drives a hummer and stands out his sunroof…..but the car has bald tires…please !

  6. Michael,

    I agree with you, I have never sold on price, nor do I buy on price. I grew up in KC where Sprint is located and loved the company. I even own stock. But when they took their customer service off shore and it began to suck, I moved to another carrier. It cost me more money but the support as been wonderful.

    At the end of the day, I am a firm believer there will be a few companies inside of the MLM wireless/Telecom niche who will carve out their own identities and will deliver great services to the end user and a wonderful business opportunity for the distributors.

    I can say this, any company who is entering into MLM wireless and is focused only on wireless may not make it long term. Wireless is changing and the companies who survive and thrive will be offering a full range of telecommunication packages, not just wireless.

    As a matter of fact, I predict that within the next 3 to 5 years, most of the companies in MLM will be at least 50% B2B sales, and not just B2C sales.

  7. Troy

    As a veteran and top producer in a wireless MLM, I just don't understand where a lot of people get their logic. Price means nothing. ATT and Verizon have 80% of the market, yet they charge more than anyone. If price is the "deal breaker" why does anyone use them? "Big Time Phones" don't matter either. Boost Mobile and Virgin OWN the no-contract, unlimited everything market, and they have terrible handset offerings.

    When will people realize that this is a marketing game, not price or features game. Global Verge stinks, and always did, but they had tons of people lining up and paying autoship, and never produced a product. Why, because they were good marketers. WOW, Lightyear, Panther, whoever comes along, are fighting needlessly. It's our marketing model v. ATT and Verizon, pure and simple. The sooner we all realize that, the better all of our businesses will be. As for "my deal is better than our deal," I actually wrote a post on my blog about that and how dumb it is. I won't post the link out of respect for everyone, but you know who I am Troy, and I think you would enjoy it. Thanks

  8. What are you talking about? I don't understand one thing you are writing. "New companies that are slashing to free deals?" What do you mean? Who has free service? WOW isn't free, they charge $89.99 a month. "More capital is like the cost of a credit card?" What are you talking about? So it's not smart to buy up other companies and offer more enhanced services? OK. "now hand decisions over to newbees." What are you talking about? It's ok you aren't "feeling this lightyear stuff". No one here is trying to recruit you anyway. You haven't asked any questions, you've only made dumb statements about LIghtyear, so there are no answers for you. You aren't interested anyway, so why are you even worrying about it. It's clear that you have probably never made any money in MLM. Don't let your lack of credibilty or experience cloud your vision of what reputable, solid, and profitable companies are doing. Good Luck! Go join Global Verge, perhaps their methods are better suited for you and your philosophy.

  9. Were you in Excel? I was, for 6.5 years. Lightyear is VERY different from Excel – in many ways. First, the owners of Lightyear actually like MLM. The only real similarity between the two companies is that they are telecom based and have a coded bonus structure. Everything else is completely different.

    And in regards to how easy it is for companies to pull away from the MLM model. What sense does that make in Lightyear's case. About 90% of their income is coming from the MLM side of things. If they took that away what's that going to do to their revenue???? Bye bye! And wouldn't a huge drop in revenue kill the stock?

    Seems to me that a publicly traded MLM company has an even bigger reason to empower the reps. The more productive the reps are then the more profitable the company is. Pretty simple to me!

  10. Walter,

    You bring up a great question. What I think everyone should realize is the fact, if a distributor is earning more than their monthly service fee, they are getting their service for free from any company. The big difference with wow, is your service charge is stopped, until which time your commissions no longer off set the service fee. This is the exact same marketing I used at ProSTEP for years.

    The downside is, makign sure the company has an active credit card on file. If for some reason your monthly commissions do not cover your service fee, and the company tries to charge your card and can't, you may lose your spot in the compensation plan.

  11. Simon,

    Thanks for commenting. However, I have a few questions to ask on your statement.

    1. Are you saying companies who go public only do it when they are hurting financially? If this is your true meaning then explain eBay, Google, Starbucks, Dell, Microsoft and Walmart just to name a few? These companies created or dominated their niche before they went public, and were all profitable.

  12. Paul,

    Thanks for commenting. I do have a few questions and some clarifications.

    1. Josh is not the person who made this happen. Josh runs the MLM division, not the parent company.

    2. Why do you feel this screws the smaller distributors?

    You make some good points, but I think more details are important. And I would say to protect ones check, they should become shareholders, so they have a voice.

  13. I know Josh has been looking to mirror Excel Communications' success and going public is simply one of the steps they needed to take. However, it can be so easy to pull away from MLM and direct sales as the business continues to grow. This will only screw the current smaller distributors. My advice is to build and build fast! Become a player so you have a larger voice, larger paychecks and a smaller impact to your lifestyle if Lightyear decides to move away from MLM.
    My recent post The first of many…

  14. You don't go public when you're in good shape you go public to raise money. Beware LY reps the days are numbered there.

  15. FDI Agent, your comment should be removed because it is coming from a guy who is with FDI! Do your research on Sherm Henderson before you make a statement like you did. FDI? LOL!

  16. Technology changes daily just like technology based mim companies..Why should this be any different. I hope for all that it is and I mean that. If I was betting though..I would have to go with the odds..Good luck

  17. I have been reading all the posts from different companies…some very interesting, this wireless war stuff is like a market shootout.
    Reading it all how do companies compete with Wow Mobiles Free Plan ?
    How can Light Year, FDI, etc, and who ever else?… win the wireless war when Wow Mobile has free…
    Mr Troy i am betting on Wow Mobile…but still watching
    I agree with Mr Pearlman in today's internet age, now with new internet phones, customers will find the cheapest deal at the click of a handset button.
    All I need is to know how to work these phones !…what happened !

  18. In a more competitive market, and new companies entering that are slashing to free deals…more capital is like the cost of a credit card, now hand decisions over to newbees…perhaps you guys should see how this happens in the big city…save it
    I am not feeling this light year stuff or getting straight answers. Just going public hype with no real reasons for profitability…show why this is good ?…

  19. Sid,

    Thank you for posting, but I have a couple of questions regarding your comment.

    1. Doesn't every company who goes public do it for financial reasons? I am pretty sure every IPO I have bought was done because the company wanted to raise capital, and I wanted to get in on the ground floor of the stock.

    2. Since when does raising capital mean they owe money? However, in this case the Henderson family were the largest debt holders, and surrendered their debt for equity. Now if you know anything about bankruptcy law, you know that debt holders get paid long before the equity holders get paid.

    3. Correct me if I am wrong, but don't privately held companies also have shareholders who much get paid?

    I agree telecom is cut throat. However, the company which provides the best service, tech support, customer service will win. Plus people love an underdog.

    Time will tell, and I agree the quarterly report will tell the story.

  20. LightYear is a company that is trying to do the right thing for us all! People should not post negative comments when they do not know the people within LightYear Corporate! I have been in this industry for 18 years and have found a home with LightYear! People should keep their ignorant comments to themselves!

  21. That is your opinion…there are two sides to this …your talking your own book…a view from which you have financial interest in…Jaded to the truth…help full to your paycheck…please!

  22. They are obviously changing gears for financial reasons…possibly losing distributors to other new competitors..raising capital means they owe money or lose control of decisions…or shareholders have to be paid…also raising capital is additional overhead.
    Sure increased competition is good for the customer… NOT the provider
    I don't buy the comments there is plenty of market share for every one… telecom is cut throat…the public will not pay more than they have to.. for the same service…not even $5 !, with the power of the internet and communication the public know were to shop at any given moment…especially in a down economy
    Also when prices go down, revenue goes down, even if they bundle products up these are more raw costs…to operate this way, massive economies of scale must be introduced…to gain a bigger market share…no one in telecom suddenly gains 5, 10, 20% more of the market over night…
    Perhaps I will do a review in the next quarter on the profitability of lightyear since the financial statements will prove that what they are trying to attempt is a viable business decision…
    Anyway the first cost cutting measures of survival will be the reps not getting paid…
    Many big companies have failed…, many have been brought out, even sprint is having trouble…
    i do my diligence and will wait to see the quartley reports first…there is no telling this is in any way , a good move.

  23. You are the first person I have ever heard that says having access to more capital is a bad thing… It's always fun to see people that have absolutely no clue what's going on comment about the moves that solid, reputable companies make, just because they aren't involved or because it's their competitor. Keep on hating Sid! 16 years, and the haters haven't hurt us yet. Thanks for posting.

  24. FDI Agent, your post is so full of ridiculous statements, I don't even know where to start. If I were you, I would be figuring out how to explain why your company fell flat on it's face in the telecom world, and why someone should believe anything you are saying. 16 years of solid growth, with agents that started in the 90's that are still receiving large residuals, speaks for itself. You are the first person I've ever heard say that every other MLM that goes public sells out on the distributors. Last time I checked, there are a lot of happy distributors at Melaleuca, Amway, Tupperware, Mary Kay, Arbonne, PrePaid Legal. How wrong you are… I guess you should stick with companies that can't go public, and be part of one of the many scams out there that go belly up every day.

  25. Troy, thanks for the balanced comments. As a Lightyear rep I appreciate them.

    That said, because you are unbiased, keep watching closely and never hesitate to point out anything we reps "close our eyes to." There is no perfect company, comp plan, product or rep. Sometimes those on the inside cannot see the forest for the trees.

    I for one derive great comfort knowing you will champion our strengths and point out our weaknesses.

    Only by addressing our weaknesses can we grow stronger!


  26. I'll bet you a dime to a dollar that Sherm would have rather gone this route with Excel. Instead of selling the reps down the river like "Excel/Vartec" did.

    I think the main underneath-the-surface-current thingy thing that Lightyear bought to the table for the network marketing industry as a whole, is CREDIBILITY. Our industry has such a negative perception, that any company that can go public on a stock exchange raises the level of perception just a little.

    We as a industry have to have a servants attitude when it comes to recruiting and organization building. That is what drives Sherm Henderson. A servants attitude. Just the way he went about going public speaks to his character.

    By using a reverse merger you eliminate the inside hype and allocating of shares to the broker as payment for taking a company public. In other words you eliminate the conflict of interest by the broker having to "pump up the company through hype. Then dump the shares into the open market to raise cash and receive their payment. Reverse merger of a public shell is absolutely the most cost effective, and ethical way to go public. Sherm Henderson true to form.

    I am a Lightyear rep going into my third week. I believe I have finally found a home.

  27. FDI Agent,

    You're a funny guy. Spoken like someone who truly doesn't understand what they are talking about.

    You do realize that Lightyear has already been in business for 16 years don't you? They didn't use MLM to "get started". They were in telecom for many years and already had a successful run. Wireless is their future and they are taking steps to focus more on that than what they had been for 16 years. Direct Sales and MLM is their only means of customer acquisition. Why would they cast away their customer gathering model??????

    MLM companies that are public don't go out of business or get rid of the MLM model because they are public. They get rid of the MLM model because the ownership wants nothing to do with MLM. As you have seen from Sherm and Josh they've had their hand in the MLM world for many years. First as a DSA supplier (supplying services wholesale to companies like Melaleuca, Amway, Excel, World Connect, etc), then in their own MLM company. They also built their commercial sales division with Direct Sales Agents (not with marketing and advertising).

    Sorry to break it to you but this move was done to empower the reps.

  28. Great replies Troy. They are appreciated.

    I look forward to an incredible next 3 to 5 years in Lightyear. They are going to take some massive steps with acquisition and expansion which will give an already amazing opportunity even more staying power.

  29. Since the move here a few months ago, I have come to experience a real company. This is right for me, which is what we all should consider, what is right for you. Instead of bashing, just do your due diligence and decide, then dedicate and commit to moving forward with your company.
    The questions are great because there is always something to learn.

  30. FDI Agent,

    ROFLOL… I do not think you know much about Lightyear Network Solutions. they are not going mainstream, they have been mainstream for close to 16 years. And since they are 100% focused on telecommunications, and are the first company to pay residual on monthly customer accounts, this will open the door for their reps to focus on showing the end user how they can save them even more money.

    When it comes to compensation plans, that should never be the first focus for distributors. Compensation plans come and go, get changed faster than some folks change their panties. What is most important is the leadership of the company and the products. Just like FDI, Lightyear has great leadership and products. When it comes to the compensaiton plans of both companies I could take all day pointing out the flaws, but seriously what does that matter?

    By the way, you need to do a little more homework on your public MLM comment. Not all public MLM's have sold out their distributors. As a matter of fact the most profitable MLM company in history has been public more than it has been private and they pay our over $600 million annually to their distributors.

    So, instead of dogging someone else's company grow up and talk about the positive side of FDI. Professional Networkers never slam a competing company to make themselves look better.

    Now, as I said in my video I do caution the reps because some many telecommunication companies have left the MLM marketing channel beind when they became a household name.

    But, the others were not run by the Henderson family who have a long history in MLM. time will tell. But let's stick with the facts, not just slamming the company.

  31. Sid,

    I find your comment somewhat confusing. Raising capital does not mean more costs, overhead and there is no debt. The debt was forgiven for controlling equity in the new company. How many people do you know who can both afford to exchange the debt for equity, and second who would take the risk. Debt holders in a bankruptcy always get paid before equity holders.

    And Increased competition is always good for the end user. So the company who can provide the best service, customer service, field support, and so on, will come out the winner. What I will agree with, is with more competition, the price game will end. Since this is a $200 billion dollar industry, there is plenty of room for competition.

    Another interesting comment you make is the "less profitable balance sheet. just because prices go down to the end user does not mean the company is less profitable. Service based businesses make their money off the monthly subscribers and the amount of additional services they use. When a company Like Lightyear who has every type of phone service available, the profits go up and the end user receives bundled pricing. Now instead of outsourcing to other companies, Lightyear will be in a position to have their staff handle all customer issues.

    One other things which should be brought up. This was a reverse merger. Which means nothing has changed at Lightyear except now everyone can see their financial statements. Do you really think a company would go public if their ballance sheets were moviing backwards?

  32. Raising more capital to do what ???…this means more costs, overhead …on the debt…
    Telecom prices are going down !!!, Increased competition !!! this could be bad !!!…
    with out a doubt a less profitable balance sheet…I think this is a sink or swim with the sharks move!

  33. They will need to go public to raise cash for a better marketing plan than the distributors, they know the reps can't compete with the new kid on the block…so its time to go mainstream against the big 4 who are hurting too…i agree they will do just what every other mlm going public does…sell out on the distributors. YA FIRED !
    Folks this is how they do it !!! same old dirty trick done over and over, they use the Reps to get established…go public…raise cash to do big money marketing in the corporate world…and leave the distributors for dead !!!
    Dont Jump into fright year by any means…
    Big for management…bad for reps future…
    Troy who else has pulled this stunt ??????

  34. All i can say is WOW! This is one of the biggest moves i have ever seen. Some people were skeptical about Lightyear Wireless, but they will take some notes from now one. When we say that we will be a HOUSEHOLD name in the wireless Industry, you meant it.

    Guys! There's no shortcut in the industry. Either you work hard or you go home.

    By the way, i want you thank you Troy once again.

    Kind regards,

    Jacklin Octave

  35. Lightyear is a good company but you have to sell 140,000 in sales to make 30,000.00 there. It is just that lightyear is stuck in those contracts with verizon and sprint and can't really go the prepaid route. Numbers don't lie, 75% of americans chose prepaid last year 2009, and in january alone that number was 89%. Facts are america is going prepaid and lightyear doesn't have the unlimited prepaid products, they are a good company but the way I see it they went public to make as much off the offering that they can, because lightyear I under contract with vzw and sprint till end of 2011, so I take it they are cashing out now, this is just a smart business move so the company can hedge its bets. But asd I said light year is confined to 98% post paid contracts. That's not going to work in this economy. Panther has pageplus, airvoice, simple mobile, boost, platinumtel. Intergrated right now that covers sprint,verizon,at&t, and t-mobile. No one else in network marketing can say that, and also panther has international calling from your cellphone and tethering, let me know if light year can do this, unlimited talk, unlimited text, unlimited data, tethering, and 250 mins of international calling for 54.99, if they can do that ill consider them competition, till then, they are a nice post paid company with very small margins for commissions.

    Chris Greco

  36. Thanks Troy. While there is plenty of room for lots of players in the telecom MLM arena, everyone must respect the fact that Lightyear is carrying the flag for us all. In light of all the issues surrounding the wireless MLM war, Global Verge and the liars running it, and the many fly-by-night deals that are coming and going, it's nice to see a solid program with solid leadership and track record paving the road for everyone else. Thanks again for getting the word out about us!

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