April 24, 2014 16:07

Breaking MLM Wireless News Which MLM Mobile Company Is Winning The War

Breaking MLM Wireless News: Which MLM mobile company is winning the MLM Wireless War? Since the fourth quarter of 2008, we have seen the MLM wireless niche, grow from less than five companies to over ten.

What I have found most interesting about the influx of companies focusing on the MLM Wireless Niche is the fact the older, larger MLM Telecommunication Companies seem to not really be focusing on any of the other companies.

Part of this may be the maturity of the field force, or the fact the companies are secure in they market share.

ACN, Escape International, FHTM, 5Link and even Lightyear do not seem to notice the new kids on the block.

Yet, the new kids; ProxyComm, Traverus, WOW Mobile/Liberty International, Buzzirk/Global Verge, FDI/GI Connect all seem to be focusing on the same little niche group of MLM distributors looking for a home.

Zurvita seems to be the only new kid, who added Telecommunications to its portfolio, yet, has not made a huge deal out of it.

I truly believe once the scavenging is over for market share, a few of these companies may merge or discontinue their telecommunication divisions. Those few companies who are left will carve out specific niches inside the MLM Telecommunication arena and dominate.

I’ve been studying the telecommunication niche over the last few months and can see, there is a boatload of room for some solid MLM companies to take some market share.

However, there are two major issues which all MLM Wireless Companies should address.

1. Service Fraud. ProxyComm has lost over $1 million dollars from fraud since late 2008 when they launched. These guys know the business and still lost big. This loss was shifted to the distributors in the form of “Chargebacks” and has stifled their growth.

2. Sim Chip Security. I have not seen, nor has anyone provided me information, stating, security software has been develop specifically for the Sim Chips being used over the WiFi Networks.

The MLM Telecommunication niche is young and there is room for solid growth. Time will tell which companies have what it takes to make it strong.

Never Give Up,

Troy

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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  • Existing LY Rep

    Troy,

    You should know that not a single company you mentioned above other than Lightyear actually owns its own wireless product. Lightyear bills, services, and pays real monthly commissions on actual monthly bills. ACN, 5Linx, FHTM, Escape, and Zurvita are all partners with Affiliate companies like Simplexity.com or Talknow.com. These companies get one time bonuses when they activate a wireless customer. These companies receive NO monthly reporting in terms of billing and therefore have no idea of what the customer is paying per month. These companies either pay the bonus they receive out to their reps in a lump sum or they break it up and pretend to pay out a residual over 24 months. ACN for example sets a CV of $40 to a single line bill – so even if your cell phone bill is $150 a month you only get a commission on $40 a month. What's worse is that after 24 months the customer and the volume disappear (they are purged) from your downline.

    Lightyear is the only true MVNO company that has wholesale agreements with Verizon and Sprint. That means Lightyear takes the order, activates the phone, and bills the customer every month. They are also paying a TRUE dollar for dollar monthly commission on the bill.

    • http://intensedebate.com/people/troydooly troydooly

      Existing LY Rep,

      You make a wonderful point here. Which brings up another question… Which MLM Wireless company, sees telecommunications in the mix for the long term?

      The more I think about it, the more I think you helped to validate my point, as to why Lightyear is not focusing on any of the new companies.

      On the other hand, this brings up another interesting question… Who's customers are the end users. With Lightyear, the customers belong to the organization. However, with these other companies acting only as conduits (affiliates) for phone carrier, if any of the agreements go south, who will get to contact and work with the end users.

      Great comment, thanks for sharing. Now I can go back to work researching :)

      Never Give Up,

      Troy

      • Alan

        Yes, however they are an MVNO and do not have there own network. So, if any of the other MLM cell phone providers are partnered with a carrier and are buying wholesale minutes and data from a carrier, then they are also an MVNO. Just as Lightyear is in MVNO.

    • http://www.ZurvitaOpportunityBlog.com Brent

      Ben, wondering if you'd ever post over here on all of this. =)

      Personally, I don't care what LYA has, what ACN has, or anyone else. And I've never really understood why people choose to go around spouting all of this (like Ben has many, many times). The market is huge, will continue to be huge, and not a single MLM company will ever have more than 1% globally anyways.

      So who is winning/who will win the wireless wars? Who cares! =)

      Just my honest opinion.

      Brent

      • http://intensedebate.com/people/troydooly troydooly

        Brent,

        My hat is off to you my friend. Your comment shows why your business is always growing and you only post when important.

        Your opinion is based on solid facts.

        Never Give Up,

        Troy

      • Alan

        Who is Ben?????????? When you refer to someone have the guts to say the last name. If you even know the last name.

        • http://intensedebate.com/people/troydooly troydooly

          Alan,

          Who are you referring? If I mentioned "Ben" then it would be Ben Piilani, CEO of Zer01 Mobile.

          And I don't have a problem with Guts, I'm just not sure you are referring to me.

          If I am speaking out of turn, please forgive me. If you are referring to me, explain what nerve I hit.

          Never Give Up,

          Troy

          • http://www.ZurvitaOpportunityBlog.com Brent

            No Troy, he's referring to me. And yes, "Alan", I know Ben's last name.

            For someone who accuses others of not having guts, I find it funny that you only post your first name and no website or any way for the viewing public to find out who you really are.

            The reason I mentioned his name is because he makes the same arguments on an industry forum I participate on. Similar writing styles, same arguments, etc. And when it all really boils down to it, none of it really matters. Again, the marketplace is huge. No company will ever have 1% of it, regardless of how large they grow.

            The real winners in having MLM companies sell wireless service are the major providers themselves.

            Brent

  • Nathan Ngwa

    Great Article Troy. There is simply room for solid growth in this segment depending on who does it right.

  • Chario Curtis

    I agree 100% with Brent. Instead focusing on what you have your hands on, peole focus on comapring comapny A to Z and this will never add to their bottom line. The market is huge, will continue to grow as technology advances and no one has a monopoly to it. Whether its lightyear, 5link, ACN etc it doesn't really matter. Its a 1.3 ?Trillion dollar industry and no one company will get 100% of it. This deal is 90% about YOU and only 10% about the company, products and comp plan. Focus on making YOU become passionate about what you offer to the public and you'll wind up making tons of $$$. Troy said it best. There is room for solid growth here. Period. Thanks Troy.

  • http://www.proxycomm.com John Peterson

    This is John Peterson, CEO of ProxyComm. First, I'd like to say good review of the market. There is a lot of excitement in the space now and because of technology advancements in handsets coupled with 3G, WiFi and VOIP the traditional telephone companies are being challenged and MLM is a great way for services like these to go viral and take share from the big guys like AT&T, Sprint, etc.

    Your correct that some of the major areas of concern in this space is fraud, especially when you start delivering international calling services. ProxyComm was hurt by the Nigerian distributor base abusing the service and using stolen credit cards along with a number of distributors using the service and then claiming they didn't purchase it and executing a chargeback. This unfortunately comes with the territory of low telecommunication services. Telecom attracts a different buyer than you would get selling a bottle of juice or vitamins. Fraud has always existed in this space. How many people remember those pirated calling cards they use to pass around in college???? Get my point….

    Anyway, all of this caused a slow down in our growth however we are continuing to see positive momentum and are now spinning up ProxyComm Advanced Communication Services (aka ProxyComm MLM2). This new biz unit will deliver a "chargeback free" environment as the company has tightened up controls. Our key message to our distributor base is be careful who you sponsor because if they chargeback or commit fraud it will effect distributors getting paid on that "returned merchandise". This makes a lot of sense however creates frustration. We all know you cant get paid on something that gets returned but the return never feels good. Nonetheless, the company has put up barriers and watchdogs to protect the business going forward.

    Its going to be a fun 2010 with this space…..

    John Peterson
    CEO – ProxyComm

    • http://intensedebate.com/people/troydooly troydooly

      Mr. Peterson,

      Thank you for stopping by and sharing a little from an insiders standpoint. When I was first contacted about ProxyComm I was concerned for the distributors. However, after reading what had been written and talking to some of the field force I could see the disturbing situation you and your team faced as you balanced running a profitable company, protecting the honest distributors and fighting the fraud.

      Please keep me posted on how things are going, because I would love to write an article on how you folks worked through this and come out the other side. I have heard from some of the field and they have been excited (until lately), and I want to see that excitement come back.

      Again, thank you for taking time to chat with our community.

      Never Give Up,

      Troy

    • AngeredGuest

      Yes, Proxycomm abrupty shut their first company Proxycomm down giving the distirubtors about 3 days notice but continued charging autoships to everyone. Then told distirbutors they needed to re-enroll in the new company and re-purchase service.

      They then held pay from distributors the 1st week of the new launch on any of their distributors who didn't fax in the completed paperwork. Stating they would refund money to those who didn't fax in completed paperwork and their sponsors wouldn't be paid on them. They didn't refund those monies and cancel the distributors who failed to fax in the forms (as some didn't have check accounts) but still didn't pay the sponsor the commissions. The following week the said forms were no longer needed and distributors, however they still never paid the sponsors for that first week for those that didn't fill out the forms, or for those that eventually did submit them the following week.

      Now just under 7 weeks in the "new proxycomm acs" and the truth be told the commissions that were to be mailed last Friday the 13th for the prior weeks commission have yet to arrive to ANY distributor.

      Also the normal weekly notice the company emails to state that the prior weeks commissions would be mailed to the address on file, was never sent to distributors this week for some odd reason, probably because they never mailed the prior weeks when they said they did. I mean it doesn't take 8 days for a check to arrive.

      Definitely a mismanaged company, and not sure how they lost 1 million dollars with less than 10,000 distributors in the first company, as out of a 39 week run didn't pay commissions to the field because of the supposed fraud for a total of approx. 11 weeks. They also weren't processing refunds when people requested them as they didn't understand the service, or paid for an international plan only to have the service abruptly suspended or changed, with the company touting prepayment of service and no refunds, which led to many charge backs.They also have a very difficult system for a rep. to know how to cancel. Email cancellation requests are responded to that you have to do it yourself or ignored.

      I think the distributors are the ones that should have had the watchdogs.

      • http://intensedebate.com/people/troydooly troydooly

        Angered Guest,

        The documentation I have shows the distributors were warned in more than one occation about the fraud taking place in the original company. I can fully understand being angry about the situation. But from what you wrote above, and what I have in my possession the company did their best to continue oporation, and protect the integrity of the genealogy.

        Now as for the current situation, we'll start a new investigation and see what we uncover.

        I want to thank you for bringing this to our attention. It will be after Thanksgiving, but we will do a post on what we find. If, I have questions we make contact you via email.

        Living An Epic Adventure,

        Troy

  • http://intensedebate.com/people/artmeakin artmeakin

    I've seen hundreds and hundreds of technology/telephony service companies come and go over the last 40 years. Deregulation allowed many companies to enter the long-distance marketplace. In the late 80's Network 2000 put Sprint on the map. Amway put MCI on the map. Excel Telecommunications was able to become the 4th largest long-distance company (despite its demise… the fact they became the fastest company at that time to reach a billion$ in annual sales is impressive).

    Because long-distance, Internet, and wireless communications are a part of everyday consumption by the masses… many companies want to capture market-share… if even only a small percentage. The challenge with this is what I call the "commodity-factor" or the "technology-factor"… prices drop lower and lower due to competition and/or the improvement of technology/bandwidth… profit margins drop lower and lower… technology changes, is replaced, or becomes obsolete. Therefore, it becomes almost impossible to create retention and a sustainable ongoing residual income unless the company adapts constantly. Most companies cannot adapt often enough or quickly enough. Furthermore, the earnings per customer/distributor are so small requiring ten-of-thousands to make a decent income. In many cases, this is why customer acquisition bonuses, training incentives, other product offerings, etc., are created to offset some of these deficiencies.

    Despite the pros/cons and the apparent/unapparent issues involved… some people will always be attracted to technology based business opportunities. Even in a niche market… even with a lot of competition, if we are passionate about what we're doing… it is possible to gather customer and representatives creating enough market-share to make it worth our time/money investment as long as we are involved with truly legitimate long-term opportunities.

    Art Meakin

  • http://intensedebate.com/people/Televerus Televerus

    I found this article interesting, because Traverus was the first company I heard of after the Buzzirk problem. I researched (before signing up) and found others of course, but there was a new name on the list (WOW Liberty) that I had not heard of. I'm looking forward to seeing which company finishes first, as I of course have already picked my horse. To the best rider goes the spoils…

    • http://WowMobileWorld.com Georgeo

      Hi Troy, Georgeo here…. Steve got his WOW mobile phone this morning! He called me on my WoW phone and it works Great. I understand you will be getting yours soon. If you like, you may call me on my WOW mobile phone when you get it. Let me know where to email my number. Ciao WoWmobilefree@gmail.com

      • http://intensedebate.com/people/troydooly troydooly

        Georgeo,

        This is exciting news. I'll sure be calling when I get it. Well, after I figure it out :)

        Living An Epic Adventure,

        Troy

  • http://www.wow-mobile-phone.com Say WOW

    WOW Mobile "is" winning the war… look at their marketing plan…Refer 3 and get it FREE, the market will decide, water always finds the quickest route…like the consumer finds the best deal, WOW Mobile pays 100% to Unlimited levels and has Unlimited Data/calling etc…No Cap!, plus wireless teather to computers…the so called competition has none of these factors HUGE!. Also liberty is established 10 years the others are launching, have investors to pay off, and big growing pains coming with inexperienced wireless staff…they are just mlm'ers trying to resell telecom.
    If you are considering wireless, look at all the factors, product, marketing plan, payout, established ?, computers that work, websites that work (old or new)…or are not in development, promises still not forfiled…sound familiar ?. If you cant beat 'em…join 'em !
    http://www.wow-mobile-phone.com. Troy look at the way WOW is doing it…its very impressive

    • http://intensedebate.com/people/troydooly troydooly

      Say WOW,

      Randy and I will be connecting this next week. After our conversation I will be writing a new post.

  • Angered_Guest_2

    Hi Everyone,

    It's incredible that ProxyComm CEO "John Peterson" has the nerve to come on here and talk about the good future of ProxyComm-ACS or as they call it ProxyComm – MLM2

    -This is a company that when moved over to ProxyComm MLM-2…asked every Distributor to re-enroll and pay another monthly fee just to be able to re-enroll, regardless of the fact that some of these distributors might have just paid their recurring distributor fee just a few days prior to switching over.

    -This is a company that promised every distributor that the main reason they moved over to ProxyComm-2 was to avoid chargebacks and make sure that everyone gets paid on time, while they still haven't been able to pay out commissions for the past 4 weeks.

    • http://intensedebate.com/people/troydooly troydooly

      Angered_Guest_2,

      We are working on a report on this company. We have given them plenty of time to get their act together, and I have yet to see it happen.

      Stay tuned for the report. Also if you have some rock solid info to send our way, like emails or documentation you feel will be helpful please pass it along.

      Living An Epic Adventure,

      Troy

  • Angered_Guest_2

    -This is a company that promised to provide better customer support, and have asked its distributors to pay an extra $3 per month if they need corporate to respond to their concerns, And still have not been able to respond to any issues.

    -This is a company that decided to change its distributors & customers phone lines to a different number without any prior warning, while still not able to provide any reasons as to why this happened.

    Troy,
    Please don't be fooled by John Peterson coming on here trying to speak on behalf of ProxyComm. Please ask him the right questions. Please ask him how business is now picking up and 2010 is going to be a good year when there's almost no distributors left to do all the hard work, while they are also still not getting paid as they were promised?

    And by the way, Ask him who really is the CEO for ProxyComm now? Please get a full report and share it with us? Some of us are still here waiting to get paid and afraid to cancel until we've gotten paid. We have all stopped recruiting and marketing the service and believe me, noone is going to do anything until we know what's going on.

  • KERRY

    TROY PROXYCOM IS DEAD THEY STOP PAYING REPS 3 WEEKS STR8 AND NO REPLY FROM CORP NO ANSWER TO TROUBLE TICKETS.

    • http://intensedebate.com/people/troydooly troydooly

      See my latest post

  • Michelle

    I would just like to say that I was a rep with proxycomm. The service was horrible! All calls there were dialed from phones linked to proxycomm were calling incorrect numbers. Proxycomm had no idea how to fix the problem. I could not talk to a live person from technical support–only via chat during certain hours or via email.

    The idea behind proxycomm was good, but they are really lacking on the technical and customer service side.

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