Does Lightyear Network Solutions Financials Tell The Whole Story Behind Lightyear Wireless

Since J. Sherman “Sherm” Henderson took Lightyear public in a reverse merger, people from all MLM niches have done their best to use the new public financial information to sway Lightyear Wireless reps to jump ship and move to a new company.

Now, don’t get me wrong, the quarterly Financial Reports of any publicly traded company should be reviewed completely so you and your team know exactly what you are getting yourselves into.

However, the financials only give you part of the story. The rest you will find by getting to know the founder, the corporate officers, the employees who are the backbone of the operation and most of the the field force who are on the ground daily selling the services or product to the general public.

In the case of Lightyear, when you take time to do some research on Sherman Henderson, you quickly realize he is far more than a dreamer, he is a pioneering visionary in the telecommunication industry…

Inc Magazine 1998
Phone Plus Channel Partner of the Year
Phone Plus Executive of the Year

In March of this year Business First of Louisville wrote this story on Sherman and Lightyear.

So, now we need to ask ourselves, the following questions. Does Lightyear Wireless have the best opportunity to lead the MLM Wireless Revolution?

Let’s take a look at two of their marketing videos to see what they have to offer today to the customers they service and the distributors they are attracting.

Also, in reviewing the retail site given to reps, I could the following information which I found very positive.

Lightyear Wireless allows they reps to market the following services:

XStream VoIP
Virtual VoIP
Local & Long Distance
Cable TV & Broadband Services
Dish Network Satellite TV
Protect America Home Security

Lightyear has also just launched their You + Three = FREE Promotion which is driving momentum these days.

Lightyear Wireless You + Three = Free

Here is a snapshot of the front page of the retail rep sites at Lightyear Wireless.

Jim Bartlett Lightyear

Well, there is no doubt the MLM Wireless Niche has plenty of room for several MLM Wireless companies. The question I have is…

Who will step up to the plate to compete with Lightyear Network Solutions and their MLM Division Lightyear Wireless?

There has never been another Excel Communications in Long Distance, ACN, Tupperware, Avon, PrePaid Legal, Primerica, Watkins, Shaklee or Mary Kay. Several have tried, but none have come close or lasted any length of time.

Is the same going to happen in the MLM Wireless Niche?

Tell us what you think!

Living An Epic Adventure,

Troy Dooly

Spread The News!

103 thoughts on “Does Lightyear Network Solutions Financials Tell The Whole Story Behind Lightyear Wireless”

  1. Lightyear fail to meet obligations and the stock price is in a downward spiral.

    This has bankers very concerned as the entire companies operation is running on leveraged debt.

    The current plan of issuing more shares to raise money is not working. (since they cant make money either !)

    LY stock price declines to $2.25 and is NOT a positive asset Vs Debt at this price. Yikes!

    On February 26, 2011, Lightyear Network Solutions, Inc. (the "Company") did not meet the third milestone ("Milestone #3") included in warrants (the "Milestone Warrants") issued to investors ("Investors") as part of equity units sold

  2. If you didn't receive your $60 credits towards your bill then you didn't qualify for the You + 3. It's likely you didn't understand the requirements for REPS. They are different than that of CUSTOMERS.

    For a representative to earn free service they have two ways to qualify:

    1. Be an active rep (active web system subscription). Be a customer yourself and personally activate 3 wireless customers. You must MAINTAIN this every month to be qualified each month.

    2. Be an active rep (active web system subscription). Be a customer yourself and personally sponsor 3 ACTIVE REPS that EACH become a customer of themselves. Maintain that every month and you would have earned free service.

    We have many REPS that have met the above requirements and are in fact earning free service.

    Now, if all you wanted was the free service and you weren't coming to Lightyear to build a business then you could have simply become a customer and referred 5 customers and as long as you maintain any 5 referrals then you would have received the $60 in credits towards your bill. And yes we do have customers earning free service.

    There is no "fee" to become a customer, just a representative.

    Ben Sturtevant

    Happily earning FREE wireless and getting paid for it!


  3. Lightyear NOT 4 me,

    Thank you for your comment. Sadly, I can see the information you received was not fully understood. Lightyear has from the very beginning been very clear about this opportunity vs. their services.

    I am not sure how you did not fully understand what you were agreeing too at the time you joined. Please understand I am not trying to be harsh, just pointing out that Lightyear is very clear about their program.

    When you join any direct selling company, you will always have some costs associated to it. Even Liberty which has a 3 and free program, does not tell you that you will have a free business.

    However, Lightyear has a 5 and free program. If I am not mistaking, and it has been a few months this program works for both the distributor and the customer. They may be the only wireless company currently offering a customer free program.

    I have not seen anywhere where they offer a 3 and free. But, as a public company they are pretty good at full disclosure.

    Maybe a current leader can help you out on this one.

  4. Troy I felt totally lied to about Joining Lightyear Wireless as a Rep. They told me the Wireless was Free with 3. So I got 3 only to find this is NOT so.

    There was continual debiting of my bank account $59.95 for the cell + Tax and $50.00 Back office fees…Basically $120.00 a month. ( Now I am at Metro PCS 4g $60 Flat Rate !)

    This happened every month. I waited 2-3 weeks for a rebate check of $60 for my 3 referrals, However the billing to my bank account did not stop. I feel they way they told me 3/Free was a lie. During the time waiting for my check my account was debited and not knowing this I went into overdraft…and it created a mess.

    I am out $300 + 3 months billing $350 + Bank fees… $700+ Dollars…this Hurt !

    Troy they need to explain that 3 is NOT Free…its a rebate check weeks later 🙁

  5. Michael,

    LOL… It does amaze me sometimes how folks do not seem to see the big picture of Sherman's vision. And based on my own regional carrier which just became the 3rd largest tel-com in the nation from acquisitions over the last three years (Finalizing Quest this year), I can see how Sherman is right on tract with his plan to become a national tel-com player.

    As you and I both know, only time will tell. But I do believe several folks will soon see he is not just a "good ol' southern boy" He is a "smart good ol' southern boy!"

  6. Numbers Speak Volumes,

    Sometimes you really write some solid stuff, but at others, you only seem to see the glass half full.

    1. A million dollars is going into infrastructure upgrades. Based on the amount of income from this subsidiary, it sure seems like a good investment.

    2. The bank sure sees value in loaning them money at an interest only payment structure, and the company seems to feel they can pay the principle off on time.

    3. The really cool part of this is the fact, the bank feels Sherman has enough personal assets that if anything goes south they can get the money from him personally.

    4. Sherman feels confident enough in his team to give her personal guarantee.

    By the way when the official numbers do come out for the fourth quarter I will do a full updated review on Lightyear Network Solutions.

  7. Lightyear Borrow $2000,000.00 to pay off other loans and fix infrastructure 🙁

    LY Executives have to "personally guarantee" the money !!! and the bank get hooks on all it can !

    I Cant say I like the Interest rate for a corporate company…

    Looking at the terms of this note / loan agreement… have LY have put all their chips in the middle !!! ?

    I would guess they did not make a dime 4th qtr…but Numbers Speak Volumes ! (Not Hype)

  8. Troy, can you let Numbers in on the news that the whole world knows. Lightyear is a full service telecom and technology company, who happens to have a great wireless niche as well.

  9. People, Look for MLM Companies that have More than just Wireless alone.

    Like companies with multiple products generating bigger residual income streams, having this type of product line up or diversification spread over many big billion dollar industries will reduce risk of failure.

    One product wonder companies don't last when market pricing is going down. Soon there will be no margins for operations to survive. Only multi-product companies have the strength to survive in today's economy

    Multiple product MLM Companies is a "Bigger Opportunity for distributors". Stability in numbers…not one product losses

    The economy is even tighter and the consumer is going for the "Best Deal" MLM with the least amount of visible risk.

    If you are considering MLM Wireless check around…make a educated decision and consider all the FACTS!

  10. Numbers Speak Volumes,

    I find your comment interesting. It is always easy to use small bits of info to prove a point. In this case you talk about the SEC filings, yet you link to Yahoo, instead of the whole SEC filing.

    Now as for the "high-risk" statement. All business is a high-risk, especially in the wireless niche. Maybe the whole telecommunication industry, just like it is in the mortgage, real estate, investment, insurance and technology industries.

    It is the fact that some folks are willing to analyze the risk, and decide if they are willing to make a strategic decision to the risk. Sadly most direct selling companies are private so folks never know the risk involved. Take Eiro Research as an example. They closed their doors this week and the top distributors were not even aware it was going to happen.

    I would say there is a higher risk at joining a private MLM company (which I have an equity stake in), than a public company where you can see the numbers.

    the numbers do speak very loud. In most of the numbers we see a positive move since the company went public. Are they out of the woods… not one bit. But they are moving in the right direction, and their reps are now able to decide if they are in or out. And from what I have seen and heard… they are in!

    I would not join any wireless company, but I do respect those who are focused on growing their companies.

    So, stop pissing in everyone elses pond, and go build your business.

  11. I consider LY to be a HIGH RISK MLM and they cant make money, and are financing massive losses.

    LY have a HUGE pile of Debt to pay and Wireless prices are still going lower…no press release hype is real accounting to be considered, compared to actual posted numbers to the SEC…

    LY will post 4th Qtr Numbers again we wait to see the truth…Number Speak Volumes

    Poor Stock Price:…

  12. Some food for thought per Yahoo Finance:

    OUISVILLE, Ky.–(BUSINESS WIRE)– Lightyear Network Solutions, Inc. (OTCBB:LYNS.ob – News) (, a provider of telecommunication services to businesses and residential customers throughout North America, has announced that it expects to attain profitability during the fourth quarter of 2010. The Company has also provided unaudited summary results for October 2010, which reflect the first month of combined operations resulting from the Company’s acquisition of SouthEast Telephone on October 1, 2010.

    Lightyear’s consolidated revenue for the month ended October 31, 2010, was $6.61 million, up 70.4% from $3.88 million (pre-acquisition) in October 2009. Gross profit for the month was $2.23 million, up 77% from $1.26 million (pre-acquisition) in 2009. Based upon these preliminary results and current trending, the Company expects to report increased revenue and profitability for the fiscal fourth quarter ending December 31, 2010.

    “The fourth quarter is shaping up to be our strongest quarter to date, and we expect it to be the first quarter in which we will have reached profitability since we became a public company earlier this year,” said J. Sherman Henderson III, CEO of Lightyear. “We have added many new agents and are working to consolidate SouthEast Telephone into our operations. The Lightyear Portal System, our in-house, proprietary customer management system, has enabled us to continue to increase efficiencies and reduce costs while we add customers and increase revenue.”

    “Our strategy of focusing on more profitable products and services, while eliminating those with lower margins, has helped us not only to reduce costs but to organically grow revenue,” said Stephen M. Lochmueller, President of Lightyear. “We are confident that our continued focus on our combined acquisition and organic growth strategy will result in improved profitability through 2011.”

    The revenue and other financial estimates contained in this press release have not been audited or reviewed by our independent auditors, and accordingly they express no opinion or other form of assurance as to this information. The Company provides no assurance that these preliminary results will not change following the Company’s completing the fiscal fourth quarter 2010 and the financial audit of such results of operations.

  13. If you look at the numbers net losses are DECREASING every quarter! With this aggressive acquisition and expansion strategy from Lightyear Network Solutions you're going to continue to see that trend!

    And the numbers do not speak volumes Troy in this situation as the Lightyear Network Solutions comes with 17 years of telecom background and operating – filled with ups and downs. All of that has nothing to do with the last 2 years of wireless MLM. All I've seen is my customer base grow month after month after month.

    There are more people earning more than $10,000 a month in income than there were a year ago. Those are the numbers that get and keep me excited! I trust in Sherm Henderson to take care of the LYNS side. We're going to do our part and explode our side!

    Ben Sturtevant

  14. Numbers Speak Volumes,

    Have not looked at this quarter's numbers. I'll go take a look, and see what we have.

    I'm sure someone closer to the situation will share with us.

    Thank you for taking to to post.

    Living An Epic Adventure,


  15. Lightyear are in a Financial Death Spiral…

    They cant make money…despite the take overs and revenue grabs they are "losing more money" this qtr…going from Bad to worse?…

    Ben is that Raspberry Kool aide you have at the water fountain for the reps ?…

    Is this another worldcom in the works ?…

    Troy the balance sheet is worse…no… HORRIBLE!!!

    Income Statement Get Income Statement for:

    View: Annual Data | Quarterly Data All numbers in thousands

    Period Ending Sep 30, 2010 Jun 30, 2010 Mar 31, 2010 Dec 31, 2009

    Total Revenue 11,588 11,273 11,268 –

    Cost of Revenue 8,000 7,693 7,622 –

    Gross Profit 3,589 3,579 3,645 –

    Operating Expenses

    Research Development – – – –

    Selling General and Administrative 4,309 4,253 4,119 1

    Non Recurring 214 321 396 –

    Others 52 57 60 –

    Total Operating Expenses – – – –

    Operating Income or Loss (987) (1,052) (930) (1)

    Income from Continuing Operations

    Total Other Income/Expenses Net 291 (147) 96 –

    Earnings Before Interest And Taxes (695) (1,199) (1,072) (1)

    Interest Expense 133 116 204 –

    Income Before Tax (828) (1,315) (1,276) (1)

    Income Tax Expense – – – –

    Minority Interest – – – –

    Net Income From Continuing Ops (828)!!! (1,315) (1,276) (1)

    Non-recurring Events

    Discontinued Operations – – – –

    Extraordinary Items – – – –

    Effect Of Accounting Changes – – – –

    Other Items – – – –

    Net Income (828)!!! (1,315) (1,276) (1)

    Preferred Stock And Other Adjustments (383) (329) – –

    Net Income Applicable To Common Shares ($1,211) ($1,644) ($1,276) ($1)

  16. Key developments for LIGHTYEAR NETWORK SOLUTIONS (LYNS)

    Lightyear Network Solutions, Inc. Reports Earning Results for the Six Months Ended 2010


    Lightyear Network Solutions, Inc. reported earning results for the six months ended 2010. For the six months, the company's revenues was $22.5 million and net loss of $2.9 million.


  17. If you are looking to be a LightYear rep please call me. Residual sales on customer billing, bonuses, and excellent pay plan. Call Lorenzo: 1-800-344-0943

  18. I joined LightYear as a MLM 3 weeks ago. I love the service and my wireless bill is FREE. as a rep we get our wireless free after 3 sales. Our Unlimited – No Contract – No Credit Check service is $59.99. Verizon is about $100 BTW. You have to compare apples with apples. LightYear uses The sprint 3G (soon to be 4G) and handles all the billing and customer service at their corp office. They have a very large facility in Louisville Kentucky. Many of the $40 and $49 plans is a lower grade service. Ask around and you will see. You do not have to suffer with lower quality anymore to have no contract service. The new launch of the "You plus Five = FREE" plan is great. Customers market the product for the reps. Five Referrals of the same service or greater gives you free service.The support is great and well organized. If you are looking to be a rep please call me. Residual sales on customer billing, bonuses, and excellent pay plan. Call Lorenzo: 1-800-344-0943

  19. So first you doubted that Lightyear going public was a strategy for growth and acquisition. If I remember correctly you called it a pump and dump right? Well, now that you see Sherm is actually following through on his goals now you're finding a way to twist it yet again? SE telecom eliminated their debt with a Chapter 11 filing and Lightyear basically has 30,000 additional customers for practically nothing. Genius if you ask me!

    And as for the wireless being a drop in the bucket. Well I should hope so. The wireless has only been around for 2 years (with pre-paid only being around 1 year). LYNS has been in business for 17 years doing business telecom. Of course wireless doesn't make a majority of their revenue. But I'll tell you right now – getting paid on thousands of wireless customers is AWESOME!!!!!!!!!! And helping people earn FREE wireless is a lot of fun too!

    Best of luck with whatever company you are with!

  20. Troy lets keeps a close eye on Light years financial s…they never made a profits this year so far…now they take over South Eastern for revenue/customers.

    Troy what will be interesting is will they continue to make losses …even with this big take over.?

    The LY goal is to get bigger and finally turn a profit…

    If Light year go into more debt and expand overhead in order to grab revenue, because their current operations and not making money…then adding a bigger pile of debt that is not profitable (with SE) would surely hurt the company even more?.

    We shall soon see the numbers as LY are only talking about the revenue (worrying)…not the cost to collect, maintain, operate all this extra work load/customers that came from failed telecom SE.

    If SE could not make money with these customers…and LY is not making money prior, add cost of debt, costs of internal expansion, and overhead to collect this revenue from SE, then deduct SE customers leaving to VOIP and not transferring to LY or keeping service…what will the net result be…bigger losses?…definately less revenue from the deal than they predicted "last year".

    Are LY drinking and buying Bad Telecom Business Model Kool Aide…or is this take over just a way to grab revenue and stay afloat…the future numbers will show…

    As for their stock price…its down from $6 highs, Do LY have to issue more shares to raise capital to pay bankers?…with a lower stock price they have to issue even more shares?…further diluting the overall value of the stock/company

    Troy if this BIG deal does not turn a profit…they say the bigger they are the harder they fall…?

    Folks and distributors watch LY's Qtr reports like a hawke!.

    The wireless division is a drop in the bucket…to the main companies operations (currently reporting losses)

  21. Ben,

    Thanks for this info. I'll follow up with this. What I find interesting is they are just entering into MLM during a reorganization. What is even more interesting is folks want to slam LightYear for their public disclosure of their financial, yet here is a parent company in a reorganization, and no one wants to talk about this but us.

    I wonder how many good meaning distributors are joining the MLM arm of this company, and may be told it is "debt free" which in and of itself might end up true, but look what they are going through to get there.

    I think I'll stand by my original statements "This is a high-risk niche, and folks had better do some deep due diligence before just joining any company.

  22. Freedm5,

    Maybe you can clarify something here. I had a phone call yesterday from a prospect who was looking at all the different wireless MLM's. He said he called into the corporate offices for each one (testing them out) and when he called the Freedom Communications office the woman who answered was a bit "grumpy" (his words). So the prospect asked her what was the matter and to his surprise she told him that the employees were just handed information stating that Freedom would be closing its doors and shutting down. Can you confirm this?

  23. I have to piggy back on Mr. Dooly's comment about the leadership. I was at the national convention. I must say that I have never met a group of leaders that were SO humble and willing to share everything that they knew about the business. The vision and mission for the company is clear. And the leadership is excellent. I just encourage everyone to do your research on companies so that you make an educated decision. Thanks Mr. Sturtevant for your leadership. Thank you Mr. Dooly for keeping people informed.

  24. Ben,

    This is great news. Please keep us posted on this part of the business as it moves forward.

    And again, thank you for your continued leadership inside and outside of LightYear.

  25. Troy,

    Wasn't sure if you were aware of this or not but Lightyear created a partnership with a Gas and Electricity company and launched it at our conference last month! While it won't be the focus of our opportunity it's another log on the fire!

  26. So here's my question to the Lightyear haters…

    If Lightyear is dying then why is the Vision Team adding 400 to 600 reps per month? Why is our team promoting new RM's daily and VP's each month?

    Congrats to all the people who had the vision to stay the course! Your commitment to your Lightyear business will be rewarded extremely well!

    Ben Sturtevant

  27. The only way they could offer those prices on those phones is if they are refurbs. Even Sprint doesn't sell those phones at that price without a contract.

  28. Freedom5 I did a small piece on Freedom a couple of weeks ago in one of our weekly news in review shows. My concern with Freedom is small but important. In one of the Corp opportunity videos they talk about the "investment" reps make to join Freedom.

    This is a small red flag that they may not have consulted with an industry consultant before launching. Most states and the federal government forbid ten use of the word "investment" and MLM especially where it is used to talk about the sign- up fee.

    Sign-up fees, marketing collateral and even some forms of auto-ship can be called expenses, but at no time do they fall under the IRS or accounting category "business investment"

    I do like the fact Freedom is backed by a true telecommunication company. Seems at this stage in the game all the front runners in MLM wireless are Southern Companies 🙂

  29. I just got one question. I have just visited a LY rep site. They have the Blackberry Curve for $350 prepaid if I read it correctly. Now I've just visited a Freedom Market Group website(Troy I could not find any info on your site about Freedom Market Group, can you give me some feed back on them). They have the same phone, No Contract, No Activation Fee for $49.99. Same plans as Sprint, they say they are powered by Sprint. They do have a credit check up to a $100 but that same $100 will be credited to your sixth month billing cycle. Even if I have to pay the $100 it's still cost less then the prepaid one on LY site. I don't mean any disrespect to any LY reps but if you have a MLM selling the latest phones at upgrade prices. HTC EVO(199), SAMSUNG EPIC 4G(249), BLACKBERRY TOUR(99) & CURVE(49) with no contract and no activation fees . And if you become a "Preferred Member(a rep to me) for $199 you can obtain free phone service as well for up to 3 cell phones granted you sell five service plans to obtain a free phone. 3 free phones being the max. Any comments would be appreciated. Has anyone looked into this new MLM company? The site I found was freedom5formedotcom…thanks everyone.

  30. Michael,

    I was really hoping Mr. exRep, was going to provide some real value, but it is easy to see he is just one more in a long line of folks who decided LY was not for them.

    Personally it has been fun to watch your growth over the last year. Especially as a leader. I judge a persons leadership, not on what they say about themselves, but what their inter circle has to say. And in interviewing some of those on your team (who have not been personally sponsored) but who work closely with you, it is easy to see why they are now earning nice incomes, and why you as a leader are now seeing your financial objectives come to pass.

    Thank you for your continued leadership in this great profession.

    Living An Epic Adventure,


  31. EX-Lightyear Rep – how long ago were you a Lightyear rep? It's clear you have no idea what you're talking about. The Lightyear Wireless today is DRASTICALLY different than the Lightyear Alliance you were a part of in 2007/2008.

    Mike is doing just fine!

  32. I'm dying laughing at that last comment. Ex LY Rep, if you don't make it in MLM, you definitely have a career in comedy in your future. I guess if you don't have a few people taking shots at you and saying things that aren't true, especially when they hide behind screen names on forums and can't substantiate anything they say, you aren't doing enough. Thanks for making me feel special. Troy knows what I've done, especially over the last year. I'll let him have the say on my success here, since he is non-biased and doesn't earn anything from the success or failure of our reps. Troy, thanks for always having class and speaking truth and calling these hacks out on your forums for making statements about people and companies that absolutely have no merit.

  33. Ex-Lightyear Rep,

    How do you know what any rep is making? We all know how much is being paid out based on the company being public. But how do you know what a specific rep is making?

  34. Josh, LY has HTC Hero Android, Blackberry Curve 8530, and several more. There is a phone for every type of user. What kind of phone are you looking for?

  35. Hey, Michael (Newkirk??) show us the money!!!! Ben maybe make some, but we all know you are NOT making any!!!…

  36. Blackberry 8530

    Samsung Seek

    HTC Hero

    Those 3 phones would be a HUGE upgrade to about 80% of the U.S. population!

    My HTC Hero is AWESOME!!!!!!!!!!!!!!

    Maybe you're looking in the wrong place?

    If all Lightyear had was 1 basic flip phone we could make it work? Why? Because our service is extremely competitive. $59 unlimited everything is awesome but FREE is even better! Our reps AND our customers can earn FREE wireless service! In this tough economy I'd be willing to bet that a MAJORITY of people would rather SAVE money and get FREE service each month than have the latest gadget phone! Anyone in MLM who knows anything about being successful knows that you focus on the majority, not the minority. I'll take 1% of 250,000,000 people (that's 200 million) vs. 1% of 30 million people any day!

  37. Well, when you have more customers than reps in your business it's easy to have a residual income. Of course, you never stuck around long enough to experience that. Let me guess, over the last 5 years you've been in more than 5 MLM companies?

    The reason people can be making income in wireless on the MLM side while the corporate company loses customers is because the MLM side is replacing customers that Agents and LYNS brought over the years and have lost due to churn. The MLM side of Lightyear is doing just fine. We haven't exploded, yet, but we're doing just fine.

  38. No one is responding to your posts because they are ridiculous, and are obviously only posted to try to discredit our company. I learned long ago that if you argue with an idiot, you might be mistaken as the idiot yourself.

    The only smart thing you've done on here is not disclose the company you represent. At least whatever company you are in won't be tainted by people knowing that such a moron is with that company.

    Enjoy your day of posting online about companies that don't make you any money. You are a class act.

    Oh yeah, and as for "banking" in Lightyear… Troy can absolutely back me up. He knows exactly what I've done my friend, and the degree of success that I, and more importantly MY TEAM, have experienced.

  39. Wow I wish they had better phones!! Any word on when they may have some more up-to-date lines? or am I just looking in the wrong spot?

  40. The truth is that this company has been in business for many, many years, and they still have the same problems of bad administration!!! Remember, they used to be UniDial and went bankrupt!! How can there be people making any money when, their own numbers shows customers dropping like flies!!! Or, you are not in the business for residuals?? Remember, if there is no customer, there is no residual, and if there is no residual, then you are just a pyramid…

  41. Enron or Worldcom,

    If you take your time to review you will find several of the top earners (whom I know personally) write on a regular basis in several threads including LY.

    And if you review the financials you will also get a good feel for how much is being paid in commissions.

    Now as for your name… lY is neither like Enron or Worldcom. Both of those companies covered up the losses in order to prop up the inflated stock prices. In this case LY is forging forward and not worrying about stock price.

    Zurvita was looking bad just a year ago with millions a quarter in losses. Then a year down the road the post a 300k plus net profit.

    I would not count LY out just yet.

    Although you might not want to invest in the company, or maybe could not make it work, why dog the company and cause others frustrations?

  42. i SAY…ALL you SAY…is BS !…NO ONE in ly is banking…prove it !

    like your the only on in this forum…like this forum is growing over 300 posts in a month !…NOT!

  43. What truth? The fact that a company is going through a transition period that's going to take some time to get the momentum going? Folks, we've had our pre-paid wireless for a year. Before we say Lightyear Wireless works or it doesn't, let's give it at least 5 years. All I see is my organization growing each month in a positive direction. Incomes of the LY reps are at an all-time high. From where I sit all I see are positives!

  44. And judging by your grammar, spelling and improper use of punctuation I would conclude that you aren't financially literate enough to be taken seriously anyway. Not trying to be rude, just stating the obvious here.

  45. Sorry, but I see differently. What "short lived" pay bonus are you talking about???? The only money people are making in Lightyear comes from our comp plan, that hasn't changed in about a year. Had a leader join and make $20,000 in his first week. Not bad if you ask me. But of course my opinion is biased as I see momentum happening first hand. How does my income continue to go up month after month if we're dying???? Sorry, but Lightyear Network Solutions and the commercial telecom do not reflect the success that Lightyear Wireless reps are having. The key point to remember is that there just aren't very many of us, yet.

    Remember, there was no master agent position given out in Lightyear. There was no financial bribe to a heavy hitter to bring 50,000 reps with him. Everything we're doing here is organic and it's going to take time to create masses amounts of people making significant income. But it's happening.

    And as far as the future of our stock goes, well, we're going to have to just wait and see. Because from what I've seen first hand the plan is to quadruple in size over the next couple of years. I'm betting on Sherm Henderson.

    And once and for all, why don't you man up and tell us who you really are. Go ahead and tell us which MLM company you represent so we can see your true motives here. Until you do that I do not respect your opinion here.

  46. Ben did you tell your team that the heating up is from a "shorted lived" pay bonus, out of financed money!… from there its back to the uncompetitive comp plan/pricing.

    Also for another financial quarter in 2010, light year make "massive revenue losses" and borrowing More money to take over other Failing telecom company's cash flow to stay a float !…

    These companies are Bankrupt and Losing money, its taking months and months for LY to secure ownership (still not done !)…the Failed telecom company's customers are Leaving for "other" providers, by the time LY get there, the projected cash flow is "Way Less" than thought out at the outset (last year!)…meanwhile debt servicing continues to grow month in month out!. Ouch!

    LY basically make 30-40% of gross…well if just 10-15% of the bankrupt telecom companies customers get another provider…Likely so!…then LY's cash flow projections are out the window !…yet debt is Racking Up !… this deal should have been done months ago…its dragging on way too long…and its going to be less profitable for sure!…yet more infrastructure is been taken on equating to more overhead…its just a bad deal…GONE BAD!…in a perfect world perhaps…but as we see its NOT happening like that…the take over is messy…and still not done!!!!…banks want payments on debts…now LY is issuing stock…MORE STOCK ! to pay for this blunder when they are already up against the wall !…

    LY are promising the bank 50% of share stock sales to pay the bank !!!…this is worse than Obama's stimulus package x10 !…shareholders are fuming!

    Perhaps you show the REAL Financial picture that is very grim…to new distributors.

    No matter what the wireless division do it will never pay the parent company's "light year network solutions LYNS" debts…a mare drop in the bucket…that has leaks 10 x the size of a drop !

    Troy this is a risk getting worse day by day…as posted by light year's own financial s to SEC

    P.S LY numbers don't even reflect new competition or lower market prices coming…

    Bad goes to worse…my broker calls LY nothing but a short sell!

    History has shown in telecom… the Humpty Dumpty's wall is built on a unstable market that is declining…

    Are LY are caught in big trouble?(YES.. "I" think so!)…will they survive ? (I don't think so…my opinion)

  47. Things are starting to heat up. Leaders in the industry are starting to take notice that there is A LOT of money to be made with Lightyear Wireless. One such leader joined our team last week and in 2 days had 135 people join his team.

  48. Ok your predicting a profit…(that would be a miracle!)

    Lets see the 2nd QTR Numbers…

    Folks lets "WAIT AND SEE FIRST" if this company survives

    Its too bad a picture to get involved with Light year Wireless Now !

    Too many wireless company's have gone bad…LY financial s look real BAD !

    LY have nothing special in wireless to offer $67 phone bill no tethering, no Evo.

    Stay with with Metro PCS or other companies who offer more, and not on the brink of financial disaster…

    The last thing you need is to jump out of the frying pan into the fire…

    What trend are you making money on ?…NONE!

  49. Obviously I disagree with your suggestion that Lightyear can't be successful in wireless. Competition may drive down prices but there will ALWAYS be a need for communications and there will ALWAYS be people profiting from it. Saying that there isn't enough profit margin in it is ridiculous. Try telling that to Metro PCS. Even at $40 they are doing great!

    With the addition of new technology comes the ability to profit more from this industry. Tethering is something new smart phones will add to the wireless industry. This will be a service people will pay for – replacing air cards for laptops. There will always be newer technologies to profit from. Verizon, ATT, Sprint, they are making billions more than they were 50 years ago. Why? Because now more than ever communications is vital.

    And my predictions aren't based on my kool aid addiction. LOL. They're based on market trends. Do a little research to see how many smart phones there are going to be in the world in the next 5 years! Do a little research and see what percentage of people are ditching their land lines and going strictly to wireless.

    The more people that come to rely on this product as their main source of communications they more the technology will expand. People will have to pay for the services and necessities they desire. Lightyear will be profiting from those trends! I will bet on Sherm Henderson any day of the week.

    By the way, what company are you with?

  50. Numbers Speak Volumes,

    You make great points. However, it is easy to see the analysis and the two brokers you talked with are not contrarians. I wonder what Sandy Weild or Warren Buffett would think of these numbers. As contrarians, they always buy what others run from. And although they have not hit home runs every time, they both took a small amount of money and turned it into billions for their families and millions of others.

    By the way, if you took time to study everything about this company, you would see a trend in their business model.

    Although only time will tell, I'm willing to strategically risk some of my portfolio money on this stock.

  51. Yes Yahoo Finance… and its analysis's know more than you "IR"…they are industry experts…

    Today I called two brokers and the fundamentals were BAD, also the technical s were over sold and they recommended SHORT SELL LYNS!!!

    Troy call a few stock company's to prove this…(for dist sake!)

    OK explain why the wireless division lost 74 % revenue??? !!!, Nothing to do with T1 lines of the parent company!, who lost 32 %!

    You don't do Food and Travel !…others do !

    So if your losing money from $159 – $59.95…how do you predict a profit when it goes to $30 ?…with bigger overhaed now you have bought more junk!

    Your future "prediction" is nothing… but good kool aide "addiction" to "true market numbers" in the wireless arena, and totally unfounded "with out" FACTS…(kool aide rant at best!)

    Also other competition is now here!!!, that were never in those numbers of the first qtr

    I think the second qtr numbers will cause "grave concern" …when do they post ?

    I say your numbers continue to decline…you had a blip up, feasting on other company's misfortunes (and unethically went about trying to recruit under-handedly too!)…well what happens now ???

    Other company's are about to take it back….HARD! (well not that hard with more money and product!)

    LY are nothing special at all…but a life raft with no food…or money!

    P.S did you not know metro pcs have a flat rate $40 !…why do LY ? as well as back office fees ?

    GET REAL !

  52. Thanks Troy for the nice words.

    Lightyear has everything in place. They've given us the infrastructure to support the growth, the product, the compensation plan and the tools. It's now up to us (the reps) to create the growth from our end.

    One thing I respect about Lightyear is they have never given financial deals to leaders to bring their team here – and trust me, many have asked. Lightyear feels there is no reason to do that. You either want to be a part of this or you do not. The only down side to not paying a leader to bring 50,000 people with him is that it's going to take us time to develop those leaders. There are some pretty big names that are beginning to see the potential of Lightyear and they are jumping on board so the next couple of years should be pretty powerful.

  53. I appreciate your ability to copy and paste. Unfortunately what you don't see is the big picture here. Why would the stock price be going up if the company had no future??? Why would financial advisers recommend their clients buy this if it had no future?

    You see, I've been here since the before the beginning of wireless and there are two main factors that have hurt the financial reports of Lightyear:

    1. Their main business model for 16 years had been in commercial telecom (small, medium and large size businesses). That market has DRAMATICALLY changed in the last 8 years. 8 years ago a company such as Lightyear Network Solutions could sell a company a T1 line for $3,000 a month. That same T1 line today would sell for $300. That's a pretty big drop in profitability.

    And yes, absolutely the telecom industry is competitive but that doesn't mean it won't always be profitable for the reps. Telecom is still one of the most lucrative industries in the world – right up there with food and travel. Why? Because it's a necessity that people cannot live without. While some sectors of the industry disappear new ones are emerging every day. There will always be a way to profit from the telecom industry. Look at companies such as ACN. Their massive growth came with the local phone and long distance market. That market is disappearing and they seem to be doing just fine. Their main product has a monthly price of $30 a month!

    2. The second reason Lightyear's financial results took a hit is because when they first launched the wireless business in July of 2008 our only product was the POST-paid service through our Verizon contract. For unlimited everything reps would pay what they would have through Verizon – over $130 to $150 a month. A year later we launched what has now become our "flagship" product – the PRE-paid for $59.99 a month. Over the last year pretty much our entire rep base has been switching over to that. So you can see that would cause a drop in revenue too.

    However, my prediction is that over the next few years, when we've had a good few years to run with this product you're going to see some amazing numbers. I can see the growth curve from my own back office. I see the numbers climbing every day. I see the customers sticking and the residual income getting bigger and bigger. The only thing we need to do is help more leaders develop – and trust me, we're working hard on that.

    In whatever company you're with – I wish you the best!

    Ben Sturtevant

  54. @Everyone,

    What I see here are two different sides of the brain working. One is the visionary side, by both the field force and the owners of Lightyear. They have been willing to put their own financial fortunes into the company they believe in to build it. Similar to Zurvita Holdings, which in their 3rd quarter turned their first profit of $370,000.00. This off of a year ago's $1.2 million dollar loss.

    No one has ever said the financial were Berkshires Hathaway. However, as a Contrarian, I believe Lightyear will turn a corner in the next 12 months.

    Now, on the other side is those who are in competing companies or have a hard time looking past the numbers. Lord knows numbers are very important, but they do not tell the whole story. Numbers do not show the "Heart and Soul" of the company. For some they are the as important as the Bible is to me, and I respect that.

    What I find most refreshing about Lightyear is the fact they can't lie about the numbers. You will not hear a Lightyear rep, dealer, or owner stating anything false because the numbers are there for folks to look at.

    Show me another Telecommunication company focused on growing a Direct Selling division who has the anatomy to show the world the naked true.

    Although only time will tell, I'll predict one of two events will happen in the future…

    1. Lightyear will continue to improve financially, picking up some additional assets, and growing their revenues and net profits, or…

    2. they will be bought up by someone bigger who is interested in getting into the Direct Selling market.

    Living An Epic Adventure,


  55. Cut the hype…either you have it or you don't…what you have right now is massive debt…and wireless revenue down 74% for the first qtr…how can you say this is your most profitable division…???

    Also your stock price has nothing to do with the real picture…its just up from the toilet a bit…I would now sell short. Here are your REAL Numbers from Yahoo finance for LYNS…the wireless division numbers are worse…You need a rabbit out of a hat !..Lower Telecom Prices are coming…Forbes said in Nov issue its going to $10 Cell bills…your at $59.95+Tax=$70 approx. Metro PCS is now $40 flat rate…and will go lower…How Will LY handle profitability with say a $30 cell bill income when they are already making loses ???…Are are you on that new grape kool aide ???, or your the best deal out there !


    Fiscal Year

    Fiscal Year Ends: Dec 31

    Most Recent Quarter (mrq): Mar 31, 2010


    Profit Margin (ttm): -12.16%

    Operating Margin (ttm): -7.39%

    Management Effectiveness

    Return on Assets (ttm): N/A

    Return on Equity (ttm): N/A

    Income Statement

    Revenue (ttm): 50.15M

    Revenue Per Share (ttm): 2.68

    Qtrly Revenue Growth (yoy): -31.90%

    Gross Profit (ttm): N/A

    EBITDA (ttm): -3.40M

    Net Income Avl to Common (ttm): -6.10M

    Diluted EPS (ttm): -0.33

    Qtrly Earnings Growth (yoy): N/A

    Balance Sheet

    Total Cash (mrq): 223.19K

    Total Cash Per Share (mrq): 0.01

    Total Debt (mrq): 523.50K

    Total Debt/Equity (mrq): N/A

    Current Ratio (mrq): 0.62

    Book Value Per Share (mrq): -0.10

    Cash Flow Statement

    Operating Cash Flow (ttm): -3.56M

  56. Thank goodness you're not my financial adviser! I bought 1,000 shares when they went public at $3. Now trading around $6! I'm not a math expert but I believe that's a pretty good ROI.

  57. Ben,

    Not sure about anyone else, but based on your leadership and success with LYW, I respect your comment, and see it as a solid statement of your belief in the future of Lightyear. The field leadership of Lightyear is one of its strong points, and I believe from the parent company down, you guys do have what it takes.

    I just reported on another public company which a year ago lost 1.2 million for the quarter. Now a year later they earn a net profit of $370,000.00, I believe LYNS will do the same.

  58. In the next couple of months Lightyear will be taking some major steps forward in the wireless industry. We'll be doing some things that no other wireless MLM is (even though we're already doing that). LYNS is taking steps to make sure we're raising the capital necessary to do it.

    And as far as getting rid of the MLM channel. I don't have a crystal ball but I can tell you it would be foolish for them to do that since most of their wireless revenue comes almost entirely from the MLM division. What sense would it make for a company to eliminate their biggest customer gatherer????

    What you don't know is that Lightyear's MLM divsion doesn't cost the company money, it only makes it. If you knew anything about our comp plan and how our system is set up you'd see that.

    I guess we'll just have to wait and see!

    Ben Sturtevant

  59. There you go again Numbers, keep ripping, but don't expose your own dirty laundry. All of your statements are speculatory. Ever think that revenue loss might have to do with the fact that the company dropped is prices? Ever think they might have gotten better rates from Sprint, and while revenue isn't as high, profit is better? Are there other MLM's jumping in the pit? Of course, and none of them are making it out either. LY is the only company that's done anything right. And again, why don't you share your program, since it's so much better.

    Anyway, until you go ahead and let us all know who you are promoting and expose your company's financials, you have no guts and no credibility. You can rip on Lightyear all you want, just lets see the numbers of your program so we can all see how hypocritical you are because you KNOW you numbers are far worse. Happy building brother!

  60. You have Not stated one fact to support LY terrible loses (74% Revenue loss in just 1 Qtr), big re-investment risks in a declining market, how you are going to increase market share with even more mlm's coming to the table offering lower prices?.

    LY get service from their provider at a certain price, they have a fixed profit margin, this does not have much room for flexibility to market conditions and lower prices across the board…not to mention they have never made a profit with its $59.95 plan + Tax =$65 approx.

    Another wireless mlm company started just today! back here reading all this stuff, who are pricing at $45…even metro PCS is flat rate $40…I think a lot more competition are coming too !!!.

    Can LY offer $30 Cell Plans and make a profit ?

    LY will continue to lose customers, reps & market share ?…

    I suspect they will shut down the mlm side and go mainstream…this is what other company's in the past have done.

    LY investing in "mainstream" telecom company's shows they are Not putting money into the mlm wireless side…Are your days are numbered ?, look the direction LY corporate is taking.

    Only Wireless mlm's with low debt, low cost infrastructure, better pricing will survive…

    Many BIG telecoms have imploded in history…can you name some ?

    Soon Cell Phone service will be avail from any type vendor with technology…even Mom & Pop stores will offer cellular…with little to no overhead, "and offer it cheap" , everyone is on this band wagon !

  61. Dave Henderson, I understand your point of view. But if you put something out there stay with the facts.

    Why do we pay a membership for Sam's Club or Cosco so we get better deals, right? That's the same here. Now let me give you an advice and I am not a LY customer or Distributor. Not yet! But I did my homework. If you just wanted to take advantage of the you plus 3 =free service as a customer pay one time a year $50 membership get your unlimited everything service and 3 people who wants the same. Now if I understand English right, you will have your wireless bill even as a customer paid for for as long as everybody YOU +3, pays there bill. What is it you don't understand?

    Enjoy your day

  62. Numbers

    Why don't you go ahead and tell us what company you are promoting, since you are obviously a competitor to LY. Which one is it? Then, as soon as you expose who you are promoting, go ahead and put out your financials, down to the T. I expect a full report, aquisitions, business strategy, assets, everything. Then, lets do an apples to apples comparison. Your copy should be certified, and I expect full documentation and disclosure. You would never do that would you? You want to come on here and bash Lightyear, but you don't want to expose who you promote, and you certainly don't want to compare it to the numbers of your company. How do you know your own back yard isn't muddier?

    So, until you have the guts to expose your own information and do a real comparison, you have no credibility, just another hater in some other deal looking for an easy angle. Your statements are full of spin and speculation, which is fine, but do us a favor, just go ahead and post your company's numbers and let everyone speculate and spin them here as well. Can you do that?

    Troy, no one ever comes on here and shows how they stack up, it's always a bunch of stupid propoganda. Go ahead "Numbers", lets see your business plan and financials. I dare you.

    All I know is that for the past 7 years I've been building successfully with LY. I've been paid every dime on time, and not once has the company promised something that was not delivered, when it was promised to be delivered. I love it when people try to discredit a company for having ambition and for showing the ability to navigate through the ups and downs of a volitile industry for over 17 years. I love it when people ridicule a company for going public and being up-standing enough to show people the true numbers, when other companies can only dream of having public financing and stock and would NEVER let their true financials be known. I love it when people throw spin at us when we buy out competitors. I love it when people envy LY for righting the ship in wireless and telecom MLM. At least we know we are getting the job done.

  63. FROM:
    Lightyear Network Solutions Releases Corporate Overview Presentation:

    1) Strategy: Lightyear intends to leverage its existing infrastructure, position in the industry and status as a public company to pursue an accretive acquisition and organic growth strategy.

    Troy this is lightyears do or Die biz plan…

    Lets hock what credit we have left, in the misery of catastrophic loses, to buy other failing bankrupt telecoms…feast on the receivables to pay demanding debt and shareholders…and worry about the servicing customers "later" through uneconomic (to earnings ratio) red tape infrastructure, then to try and cope with magaging all the new accounts and problems of another bankrupt telecom…in other words how will they convert this massive customer base from another telecom's inslovency into profit ?, when they are darn well going to use the money to pay for existing losses and debt…not to mention more infrastructure to deal with it all !

    I say the pile of crap gets WAY bigger…

    Also the current cheer is going to be subdued by other competitors gaining steam…

    Troy they have never made a dime !!! …they are just pushing money around

    Now going for Govt telecom grants in Kentucky for handouts…

    Pure Desperation at best

  64. Numbers Speak Volume, Most companies do not release their 2nd quater numbers until around the start of the 3rd quarter. It takes a while for the reports to be completed and the outside CPA to audit the financials.

    By the way I did a full report on the Lightyear financials from 1st quarter, you might want to debate me on those.

  65. I will comment on WOW and LY as Zoom only has phones for reps at this point and is similiar to WOW and I know both LY and WOW plans the best.

    WOW does have new charge as a "preferred customer" of $25 monthly charge which basically is a customer. You get a back office just like a Independent Rep. If you refer and sign up a incredibly high number of people which completes the binary 2/3 -1/3 leg number as a preferred customer, you will become a Independent RepThis would be a very rare occurance, the $25 montly charge remains. Unlimited service is now $99 taxes included.

    With LIghtyear, the customer can decline being a rep and just get the service and phones, etc for unlimited.

    Porting over a number costs $25 to $35 fluff fee with WOW and cost $0 with Lightyear.

    LY has an unlimited plan of $59 with taxes of about 6% tax which is another $3.54 which brings it up to an out the door price of $63ish. That is still a significant sales difference of $36 less than WOW. LY does charge a fluff fee of a one time $10 charge for a cash phone card to cover directory assistance.

    The back office starts at $49 for entry level and increases to a senior level manager for essentially 3 rep sign ups as a manager and $299 as a senior manager right away. LY has the mandatory Rep. $49 monthly recurring fee with LY gives you a RECRUITIING website, a RETAIL website with information to contact each rep indiviually and is a template driven site which is customizable in a limited capacity and complete with all utube video links and a step by step joining process transparent compensation plan.

  66. Wow, that stock sure is rising now, has almost doubled, and did you read about Lightyear's acquisition of Southest Telecom? Lightyear just bought a $37.5 Million company. Companies in financial trouble don't buy $37.5 Million companies. Lightyear is absolutely setting the standard for telecom MLM, especially the wireless niche. No one else is even close.

  67. Isn't it nice to see that LY has none of the crazy issues of the other companies trying to do wireless? Never been shut off. Never failed to deliver phones. Never charged people for something they didn't receive. Never failed to provide quality customer serivce. No drama, no issues, just good competitive service, with no BS, no hype, and great pay.

    I wish all the other MLM's trying to do wireless the very best of luck. I really do. But the fact is no other company has anywhere near the advantages and the ability to pull it off long term like Lightyear. It's only been about a year since Global Verge started their little deal, and how many have fallen apart in the past 12 months, while Lightyear just keeps growing stronger and not having issues? At this point, it's Lightyear, then everybody else.

    If you are a Lightyear rep, you should be very excited and very proud of the program you are part of.

  68. Troy,

    Something else to mention regarding Lightyear's financial decline with wireless. When they first launched in July of 2008 all Lightyear offered was POST-PAID wireless. Where an unlimited everything plan cost $140! Just like the Verizon and AT&T plans that were on the market. For the first year of our wireless offering 100% of our wireless customer base was on the post-paid. It wasn't until June of 2009 (a year later) that the pre-paid was added. That brought a VERY attractive $59.99 unlimited everything plan. $60 is a lot less than $140. Many of our reps switched to that. And with what you'll see coming in the fall you'll see a lot more people jumping all over the pre-paid!

  69. WOW's $25 "preferred customer" position puts the "preferred customer" into the comp plan – where they can earn daily commissions from the binary. Um, how is that not a rep?????

    In Lightyear the reps can earn free service by referring straight customers OR recruiting reps who become customers themselves.

    The difference is that Lightyear customers don't have to pay a fee to become a rep to use the service. If they want a website and want to refer customers then they pay a $49 fee to do so. Simple.

  70. Michael,

    Thank you for posting. You are correct this post has nothing to do with comparing companies. It is 100% biased on Lightyear, like other posts are biased on the company I am writing about.

    I will dig a little deeper to get to the bottom of this issue, because I did use the snapshot in the post.

    Personally, even if this turns out to be a "rep" getting their service for free by gathering three new "customers" then I say it is a home run. All regulatory authorities look at the ratio between distributors and "real" customers who are buying the service, which are NOT part of the compensation in anyway.

    Stay tuned for an upcoming post.

  71. Doesn't WOW charge everyone (rep or customer, it doesn't matter) a $25 fee to use the wireless plans? Does WOW have plans right now at all that they can activate?

  72. Before you start attacking a company saying it's "False Advertising," you might want to do a little research of your own program, as one could make a real good argument that WOW is doing "false advertising" when they have been charging people money to join a program to sell wireless, but have no wireless service to sell… We know the circumstances, and I'm sure they are legit, but come on man! You gotta be a little more transparent that that.

    Attack on being "customer driven?" Coming from a WOW rep, that's comical. Again, I have no problem with WOW or Liberty, I've stated that many times. I do have a problem with their reps trying rip on the only program that's done everything right in the wireless MLM niche. But, since we are on being "customer driven," I can promise you with 100% certainty that Lightyear has activated many more customers than WOW Mobile over the past 2 months. Guess how I know? Because WOW does not have a wireless product to sell.

    This is all silly anyway, because this entire report from Troy was not to compare who's "3 and get it free" promotion was the best, it was about Lightyear, its financial report, it's validity, and it's future. Lightyear was the first company to have a residual wireless product, the first company to offer free service, and the only company that's not had problems providing service. If you want to debate what's better, then first look to see if your company can even offer the service it's marketing. The promotion doesn't matter if you can't offer the service. What difference does a promotion make anyway, how about we focus on how a company is operating, and how valid they are in the marketplace, which I'd say is a lot better than WOW right now, since Lightyear at least has a wireless service to sell. This article is not about a marketing promotion Lightyear is doing, or one that a competitor is doing. What good is a promotion if your company can't deliver the products it is marketing or take care of it's customer base?

  73. Wireless Rep,

    I believe you are correct. However, I believe with WOW these are called "preferred customers", and are somehow part of the compensation plan also. I don't think they get credit for personal sales, not in the binary. I could be wrong, because it has been a few months since I looked at the plan.

    And I have to admit I am confused with the Lightyear ad, since it is very clear it is talking about customers, and is on the retail site.

    I'll see if I can get Josh on the phone tis week to explain it to me, and then I'll report and clarify.

    Thank you for bringing this to my attention.

  74. Troy:

    I believe in Wow Mobile a customer can refer 3 get it FREE….(with no monthly back office fees… like pops can refer 3 at the VA or moose lodge over a beer…no mlm hook)

    LYW : NO CUSTOMER CAN GET REFER 3 = FREE….you have to be a rep and pay the $50 back office fees, then refer 3…or be a mlm distributor

    These are two Major differences for customers…the back office mlm fees and ability to refer 3

    This is their come back to other companies 3=free…its not a real 3=free deal at all…its miss leading to say the least. And LY say they are customer driven !

    Troy they are doing false advertising…I know…I left LY

    Please clarify this officially.


  75. Chris,

    the Squidoo lens also promotes the same ad as the main company site. Although this rep tries to explain things, The ad itself is pretty clear, Find three CUSTOMERS and you get your service for free. Although this might be aimed ar Reps to get their service for free, it is still talking about customers.

    I'll dig a little deeper, but at the very least, they seem to now be offering the same marketing strategy as WOW Mobile.

  76. Hello Troy here is a site that may explain a little about the you+3=free with LYW. If you scroll near the bottom the rep will explain that it is for reps who are customers and not for people who just want to be a customer.

    Hope this helps.

  77. Michael,

    You are 100% right! I have seen your success, the love you have for your team, and the fact through thick and thin you stayed and grew your team! You took a company, and concept, and compensation plan (which is not a straightforward uni-level, or matrix or binary) and mastered it, and then showed your team how to master it… BY WORKING, and not worrying about anything but sponsoring and selling, selling and sponsoring.

    You have done well my friend!

  78. Dave Henderson,

    Well, I clicked on the link which is public under the retail site on the wireless page for customers. Why do you feel it is for LY reps only? It sure doesn't say that on the retail site. Can you guide me to where you are reading that it is only for LY Reps?

  79. Troy you posted the 3 = free pic for LY…

    The LY "you + 3 = free" offer is only for LY mlm reps…Not customers / public

    LY reps have to pay a $50+ mo back office fees / auto ship, + phone plan = Tot $125+ mo

    (The $59 mo phone pricing is actually higher with taxes and fees)

    Pay $125+ a month, then recruit 3 reps do do the same etc etc…

    This is the LY: you + 3 = free deal.

    How can LY grow a big customer base with No 3 = free offer for customers ?

    Troy what is the incentive for a customer to join LY over other retail providers?

    I am still looking for good plan / company

  80. Troy, I sure feel better when you get me back on track (lol). Now lets get back on track with all the other happenings in the wireless wars. I agree with you 100%, compensation is just part of the equation with a company. If integrity, and fairness is present, then comp will take care of itself.

    Has it really been 30 plus years? WOW!

    You are one of my present heroes, don't let me down on the wireless wars.

  81. It's either "the comp plan is not rep friendly" or "Sherm just wants to make money" or "Big Dogs have left" (I still don't know who any of them are) or something else just absurdly ridiculous.

    Show me any company that's been around almost a decade that HASN'T had some people leave. You think some leaders have left PPL, or Mona Vie, or Melaleuca, or any other top-notch MLM that makese the rest of our companies' success look like taboo? Honestly, who has left that is anything overly special in network marketing? I would never question anyone's character or intentions, or imply that they aren't hard workers with great talents, but all you have to do is look at what any of these "leaders" have done since leaving LY to see who and what they really are. Most are good enough people, but most have also been in multiple other programs since, and very few people left with them. Not one person that has left Lightyear has gone on to do anything of importance in any other company that I've heard of.

    Again, no one wants to expose a better option with facts and figures. No one coming on here to take a shot at Lightyear will produce any facts and figures from another company. Not what their upline or leader tells them, but actual documented financial facts and figures, balance sheets, statements etc. They just want to come in here and try to stir the pot, but not back it up with anything substantial. They like to point out all the flaws they can find, but they are completely ignorant to the flaws in their own program.

    One last thing. As for this program not being good for a new person, well, I joined Lightyear and it was my first attempt at network marketing. Troy knows my entire story, and I think he can vouch for me on what i've accomplished in this company and this industry, starting out as a "greenie" with Lightyear.

  82. Reading The Facts is I'm sure Matt Rassmusen from ACN. Matt can't stand Lightyear. He suggests that they aren't competition and boasts about how big his Australian downline is (all under other RVPs which he makes very little from) but he constantly bashes Lightyear in an attempt to recruit. He's been doing it for years on message boards, why would it be any different here?

  83. Wayne,

    Bro, seriously, I have really been mentored by your through the years, but, your very first sentence is so out of left field. Did you read the title of the article? IT IS ABOUT LIGHTYEAR!

    Are you going to go around to each article and say "Troy, here we go again,your site looks like a push for Vemma, Life Force International, Ceres Living and the list goes on and on?

    Have you ever taken time to read and learn what this blog is all about? I have reviewed close to 50 companies and each post is so prospects and distributors from those companies can use the articles and videos as 3rd party validation. Ok, now that we are on the same page, let's look at your issues.

    Wait, one last thing… I have made it very clear, that of all the companies I have seen in wireless Lightyear is the only one who I feel has a chance as of right now! But there is room for challengers.

    1. I have already addressed the compensation plan in the past. Had you taken time to read and review my early posts, you would see I was clear I did not like the compensation plan because it is confusing. I also know Lightyear has tweaked the comp plan lately.

    2. I am sure the company was designed around Sherm. As for Josh, well I am not sure about that since he is not an officer or director of the parent company. As with our former company, we both know the company takes on the personality of the founder, even long after they retire.

    3. I also remember a time when our focus was not on the "Compensation Plan" of the company, but on the mission and vision of the company. If we look back at our old days, knowing what we know now, both of us would have issues with giving up a solid leg to our upline. Yet, it has worked for over 35 years.

    We are both on the same page when it comes to a complicated compensation plan my friend.

    As always you are a valuable asset to this community.

    Living An Epic Adventure,


  84. Troy, here we go again,your site looks like a push for Lightyear Wireless.

    Company is now public, but I think Lightyear was designed with Sherman & Josh in mind, not so much for the rep. Sherman has received many accolades (well deserved for his contributions) but, things are not always as they appear.

    Troy having spent time with Lightyear wireless @ VP Level I can tell you the comp. plan is not rep friendly. (SEE BELOW). You comp. each month is based on several factors, miss one and you comp. rolls up, sometimes all the way to the top.

    Vice President personally sponsors a new $49.99 Manager that activates 2 CPs in their first 30 days and the VP is paid a one-time $35 CAB. When that new $49.99 Manager sponsors a new $299 Senior Manager who activates 2 CPs in their first 30 days, they do not earn a CAB because Managers do not get paid on $299.99 Senior Managers and the up line “coded” VP earns a $100 override. The up line “coded” VP earns $200 to infinity on every $299.99 Senior Manager who joins their personally sponsored Manager’s Business. **If that Manager would have sponsored another Manager, they would have earned $20 and the “coded” VP would have earned $15.


    The above is a greenie's comp plan nightmare as well as his up-line's, trying to explain. I think a closer look at the comp. plan will reveal you have to do a little hoop jumping to receive all your comp each month. There is a nice glossy company magazine you can purchase a pak for $50 if you are 2 points short, (total turn off). If you still need more there are other products to achieve required points.

    My opinion, this is not the company for a greenie to start with, and yes there have been some big pins

    that have left Lightyear Wireless for some of the above reasons.

    Closing thought, "don't mess with my $$ and don't make it too complicated to make my $$".

  85. Ok, so lets know the facts. What company do you represent, and why don't you expose their financials? If you want folks to know the facts, you can start by showing the facts of your's. Why do you criticize when you won't compare? The truth is, you most likely have no idea what the true financials are of your program, you can only go by what someone tells you. You don't know the facts of your own program. Actually, you know more about LY than you do your own deal. That's scary.

  86. Reading the Facts,

    Great comment. Let's take a look at a few things you bring up…

    1. If you take out all the expenses from the "former parent" and the transaction expenses associated with the reverse merger, we can see the lost is under seven figures.

    2. Great question on the 60K office building. However, most companies reserve the right to sub-lease office space they are not using. Plus, seriously, what legit company doesn't have office space overhead? I know yours does! There is a very good chance, the office space could be an income performing asset.

    3. Please inform me of the 10+ MLM Wireless companies going after the same customer.

    4. WOW was the first company to offer 3 and free, and have been doing if for 10 years. In order to give a 100% real FREE service, and not charge autoship it takes access to deep pockets. It will be interesting to see how this works. Especially with companies who have hybrid compensation plans.

    5. Wireless is coming down. The money is in bundled packages and equipment.

    6. We do know from reading the Financials they operating expenses went down. And we did not see anywhere in the financials where they said anything about a lost of customers. And if you are watching the telecommunication industry, then you know how aggressive lightyear is right now.

    7. you know you are now asking questions the average person will not be able to answer. You know very well, if you listened to my video, and read the financials how they are raising additional capital and revenue.

    8. You are 1005 correct with FORD. Instead they were offered a sweet deal from the US Government and turned it down. Instead they buckled up, sold under-preforming assets, paid down debt, and went on an agressive marketing campaign.

    9. I 100% agree people need to know the facts, and if you had listened to the video, you will know, I made it clear the financials play a huge part in joining and staying with Lightyear.

    10. As for studying the market place. I would challenge you to find anyone who has studied the MLM industry more than I have in the last 18 months. I do not say that out of ego, but out of fact. And, I have yet to find one company who is focused on the wireless niche, who has anything on Lightyear.

    There are a few companies trying to get rolling. However, their compensation plans add costs to the playing field, and to date most do not have very many customers who are not part of the compensation plan. If that trend continues, they will not survive five years.

    So, again what company do you represent? Do these same questions and concerns ring true in your own backyard?

    Again, excellent review and great questions.

    Living An Epic Adventure,


  87. Michael,

    Excellent comment. Another item of interest is the fact I have yet to see any reps form any other company compare their services, compensation, tech support, customer service or leadership with Lightyear's.

    It always comes down to, "did you know who has left Lightyear?" Or, now that the company is public, "have you see their financials?"

    As I stated, Lightyear Wireless have just about all the technical services they need to help a family lower they monthly cash flow, earn additional income and accumulate wealth. All that is missing is some form of internet/computer security services to protect the family online and when they are on their smart phones.

    Keep up the great work, and thank you for the value you add to all.

  88. Will the next report will confirm it for sure?…are they a possible big risk?.

    The 60,000 sq ft of buildings and infrastructure they have, is this possibly a big overhead that wont go away?…

    Today there are 10+ MLM Wireless companies going after the same customer…Did LY not expect this?

    Other companies like Zoom Mobile are offering refer 3 get it free program…

    Wireless prices are coming down…not up. Further possible revenue loss?

    I think companies with low overhead are a good choice for future survival with revenues declining.

    Overall revenues were down 32%!.

    LY Wireless revenue decreased 74 % !!!….

    So did their overhead decrease ?

    The 5 mill raised will patch 3 months of revenue loss of this quarter, are they going to keep raising revenue by issuing more shares ?

    Ford did not get lots of new companies starting up in the same local market.

    Facts are Facts…people need to know the balance sheet before going into business/partnership with any company…after all the distributors put their hopes and dreams in things like this.

    The Distributors are in this for the long haul…any risk for the people needs to be shown or people get hurt…

    Troy perhaps take a deeper look at the numbers, and look at the competitive market place getting more competitive…rather than hopes or rabbits out of hats.

    Dist need a qualified wireless analysist to to look at this.

    Caveat emptor

    Patience is a virtue folks

  89. Of course, the VERY FIRST comment would be a troll trying to bring negativity to the company holding the banner for MLM Wireless programs. It's clear this person didn't watch your video Troy. It's also clear that they not smart enough to not know that ALL of the MLM Wireless companies really need Lightyear to win big, as all anyone else has done is hurt the whole concept, not providing phones, charing people for service, but not deliverying, getting shut off by their vendors.

    Troy, I think it's hilarious how people in other programs come on here and try to rip Lightyear based on their public information, but don't compare it to their own. Of course these other deals don't have to expose what's really going on with their financials, they can tell people anything they want. I would absolutely CHALLENGE any competitor to Lightyear to expose a certified copy of their true financials. I am willing to bet everything I have that they look worse. But, none of these folks have the guts to find that information or ask for it, certainly the leader of any competitor would never show it, they just want to rip on the ONLY COMPANY that has ever followed through with the whole MLM Wireless niche, and has any sustainability. I am really glad I know where things stand, and if you truly understand the industry and the direction, you'd be nuts to not be excited as a Lightyear rep.

    Good luck there "Reading the FACTS"

  90. Hi Troy, thanks for the fair and unbiased overview. Lightyear is not perfect, but they have always under promised and over delivered during the year plus that I have been there. Have there been challenges? You bet! And there will continue to be. It's a business and business is problematic.

    Like Art Jonak says, "Pick a legitimate company to have your problems with and put your head down and go to work."

    I appreciate you Troy.


  91. Troy,

    Thanks for the great post. You pose a great question. Will anyone be able to compete with LYW? (I'm not a LYW rep or any other MLM wireless rep) The question isn't IF it can be done, the questions are WHO and WHEN. While the concept of MLM wireless is sound there has yet to be any to pull it off immensely like Lightyear. In the last year we have watched many appear only to crash and burn. I'm still getting pitched on new wireless companies in pre-launche about once a week. Until a company proves that it can fully launch itself and provide a viable and reliable wireless service to its distributors and customers I would advise others to be very cautious to get involved.

  92. Reading the FACTS,

    ROFLOL… Well let's look at the facts, and put it all in perspective.

    1. A loss of 1.8 million is not gushing. A loss of $500 million now that might be gushing, and that is what Amazon lost, before they made a profit.
    2. Did you even watch the vide and hear what was said?
    3. Why didn't you share now $5 million has been raised of new equity since the reverse merger?
    4. Why didn't you share about the fact over $30 million in debt was converted to equity? A sure sign of the fact of the debt holders in the future of Lightyear.

    Now here is the big question and will show your level of ethics and fair play… What competing company do you represent?

    I remember watching FORD gush losses a few years ago. I kept buying stock, and look where they are today.

    Excellent comment, and I am glad you have added a little fuel to the conversation.

  93. Does Report looks like another Bankruptcy ?

    Lya is gushing financial losses faster than the BP spill. Their latest 10Q filing not only shows a 7 figure loss for the first quarter 2010, but revenue declined 32 percent year over year. This is the titanic with the string quartet playing Mozart on the deck.

    Any LYA rep that can read should run for the hills. Your top leaders are hiding the facts for fear of losing their money.

    See for yourself.…4204-10-02…

    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.

    See for yourself.…4204-10-02…

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