Lightyear Wireless aka Lightyear Alliance, could very well be on the road to becoming the next Billion Dollar MLM Telecommunication Company
A few months ago I had a very close friend chat me on IM and ask why I have not done anything on Lightyear? I explained to him why I hadn’t and he let it drop.
Then I did a small piece on Rico McDaniel when he left Lightyear to join MonaVie, then left there to launched his own MLM Girdle company, and my friend contacted me again. “Mate why are you not posting about Lightyear?” Again, I explained why I had not posted anything specific, and we went on down the road.
But… Then we started getting comments from MLM wireless reps in other companies and from former McDaniel reps, dogging Lightyear, and putting out false information. I called my friend, and said NOW I WILL WRITE!
As we know there is no perfect MLM company, just like there is not a perfect MLM leader. But when it comes to Lightyear, I can personal say there are great leaders at every level. And if you read this post and are interested in a solid leader you can talk with in Lightyear, I can direct you to a rock solid Servant Leader who just happens to by a Senior V.P with Lightyear. He is someone I would trust to train my kids when it comes to leadership and network marketing.
Ok, Jimmy here is the post you have been waiting for. And for you who don’t like to read, then just watch this videos.
Although, Lightyear Wireless, as we know it today, launched in July of 2008, the foundation of this company is grounded in 16 years of research and development, and specifically since 2006. The Henderson family did not just get a wild hair one day and decide to launch an MLM division to their already multi-million dollar telecommunication company. Instead, they did what all successful business leaders do they put a plan together.
Unlike so many of the “wireless MLM companies” we have seen launch over the last few months, Lightyear Wireless is backed by a parent company with over 100,000 customers, including Applebees Restaurants, Capital One Financial, and Monster.com, and doing over $80 million a year in revenue.
Lightyear is a fully federally licensed telecommunication company. Now, this is HUGE for the Lightyear distributors. Unlike so many of the newly launched MLM wireless services, Lightyear OWNS their customers. They are not a reseller, or dealer for another telecommunication company.
They buy wholesale space from two of the most respected Teir 1 provider companies in the wireless space, Sprint (for the Lightyear Pr-paid) and Verison (for the post-paid Lightyear cell service.)
In other words, Lightyear, markets, sells, ships, bills, collect, and supports their own customers. Sprint and Verison DO NOT handle any of the Lightyear customers, nor do they have any or their records.
Here is something else Sherm and John Henderson figured out. They studied in great detail the power of the money in the old Excel business model, and realized very quickly, if distributors are paid on each and every wireless customer, plus their own personal services, then the attrition rate will be very low, compared to the direct sell industry standard. So what did they do…
The offered the industry’s first residual income compensation plan, where distributors are rewarded for the wireless volume each and every month. Not just a onetime upfront reward, but a never ending, always growing, “Build It Once” financial legacy.
Now, don’t mistake what I just wrote. I am not denying the fact, Lightyear leadership could screw things up just light Excel leadership screwed things up. BUT…. I doing the research for this article, I personally do not believe that will happen.
The Lightyear Compensation Plan.
Ok, I can say there are a couple things I DO NOT like about the compensation plan. However… The reason I do not like them, has nothing to do with the payout, or the viability of the compensation package. I am conservative in reviewing compensation plans, and do not like anything which could bring the FTC snooping.
There are two specific areas in the compensation plan I think could be corrected. Both of these add money to the distributors pockets, so they are not “gotchas” in that sense of things.
The first is the CAB (Customer Acquisition Bonus) In reviewing the compensation plan, these should really be called DABs (Distributor Acquisition Bonuses.) Yes, each distributor is getting on the service, but this is a bonus for internal consumption and building a team, not acquiring just customers. Lightyear does have have another bonus called the CBB (Customer Bounty Bonus), hey anything with the word bounty in it is great by me, as a former Bounty Hunter. 
This is their true customer acquisition bonus.
The second issue I have with the Lightyear compensation plan, is the fact they pay commissions on the monthly fee charged for the Lightyeardtributor is website package. I feel this is borderline, as the website package is a tool used by distributors.
Outside of those two small personal issues, the compensation plan rewards both the personal producer and the team builder. One of the items I love about the Lightyear compensation plan is the fact they have fast start bonuses for both collecting customers and attracting new team members. And they barrier of entry is just $50 bucks per month.
Although there is NO PERFECT compensation plan, when it comes to comp plans inside of the mini-niche of MLM telecommunication this is by far, the most fair I have seen to date. And, before someone yells, “Troy you said TraVerus had the best compensation plan.” I want to be very clear, I just stated “inside of the MLM telecommunication niche.” I am not referring to hybrid companies.
Lightyear is very proud of their training and after being introduced to it myself I’m also proud of it. This is a company which takes away the excuses. Not since my days with Art Williams and Hubert Humphrey have I seen a leadership team put so much focus on training. And this doesn’t even include the team sites I have reviewed from some of the top players in Lightyear.
Here is a list of the training sections at MyWirelessRep.com
1. Fast Start Training
2. Advanced Training Videos
3. Co-op Lead Training (including scripts)
4. Lightlyear Forms & Documentation
5. Lightyear Business Presentation
6. Current Lightyear News
7. Marketing Materials
8. Josh’s Blog
Ok, you see what I mean. The list just goes on and on.
Although, there is massive money to be earned in building a team in Lightyear, if a person just wanted to market wireless and get paid on the monthly residual, they could create a solid monthly income which would eventually replace their current JOB, in my opinion.
And, for the person who wants to build a team, leverage their time, and also market telecommunication service on a retail basis, then they can build a residual income which will change their lives forever. (If they invest wisely and don’t live above their means.)
Folks, as I said above there is no perfect MLM. If you are not happy where you are, before you decide to move to something else, make sure your attitude and expectations are in order.
Living An Epic Adventure,
Troy
Now, based on the new FTC rules regarding endorsements… This is an editorial, and we have not received any form of monetary gratification for this review.
sending...
Hi Troy, thanks for such a balanced overview of Lightyear. I can add two more plus notes:
1. Lightyear pays weekly. Finish Monday night and they cut and mail checks Tuesday morning.
2. They have a $1000 minimum earnings GUARANTEE that is rock solid!
Thanks for all the research you did Troy.
Jim
Lightyear seriously Josh Henderson and Sherm Henderson? Josh has been fired from to different networking companies before getting the job with his dad Sherman both those companies are now out of business. Light year in fairness is not a 100,000 customer company that is from their traditional side of business that does commercial through agents and advertising. My wireless rep is the networking side. Troy every person that was in the top earners has left except Edel Valdes. Ben Sturtvent is there but more than half of his group was moved under his highest payline when Reco was terminated no other reps get those benefits a little unfair to the rest of the rep base. The truth is as long as Light year has been around their customer base is small in comparison to other mlm services companies. Lets not forget their bankruptcy they filed in 2004 thats always reassuring for rep to know that this company may not even be around when they finish building their team. These are the facts in addition to your comments above.
Jimmy,
You really need to listen or read better. I was very clear Lightyear and not Lightyear Wireless was where the 100K in customer base is located.
Now if you have documentation of Josh being fired, and it has to do with anything illegal then send it my way. But getting fired from any other MLM is not relevant to their business. As a matter of fact in this profession that is a norm.
Jimmy, although my facts are different than yours when it comes to high income earners, exactly what does high income earners have do with anything? The known as Lightyear Wireless is a little over a year old, in this stage of the game people come and go all the time. They get a little success, get and ego, or another company comes courting them. What I care about is who is still there and what type of opportunity it is for the average distributor.
I know of folks who have been there for more than a year, and some who have joined this year and they are making average and above averge full-time incomes.
Your on “as long as they have been around their customer base is smaller than other MLm service companies.” Are you talking about Lightyear wireless? Or the parent company?
Sure they field for Bankruptcy, so what? Look at how many companies file for bankruptcy to restructure. Except for Southwestern Airlines there is not a major airline which has not filed at least once. GM, Chrysler, and the list goes on.
We reviewed all of those facts, and looking at where they are today, I think it was a smart business move. I use to take control of companies and the first thing we did was throw them into bankruptcy to give us time to regroup. I would rather be a rep for a company who has come out of bankruptcy, than one who brows smoke up my butt, then closes their doors or plays a bait and switch on me, like a few other companies have been doing in the wireless niche.
Now I will say, unlike “other service” companies Lightyear is staying focused on their core competency… telecommunication. Only a couple other companies are doing that ACN, wait, thats wrong they are going into energy. That leaves 5Link, unless they have spun off into travel or something.
I am somewhat confused on one issue, the statement of “all the high earners have left.” I looked allover the websites and did not see anywhere, that Lightyear publishes the earning of their reps. Probably because its illegal. So where does this fact come from?
Great post, and I want to thank you for taking time to share. It is always great for folks to see two sides of a story.
Living An Epic Adventure,
Troy
Troy I appreciate your comments and respect them. But to my point you say lightyear wireless is only 1 year old that is not true that is the now highlight and new name they are marketing to reinvent themselves. They are the same company just turning their focus differently which is fine. Similar to Amway calling themselves quickstar for a short time.
But the owners are the same to say they are a year old is implying they are something new and they are not which makes people think they are some type of a start up which they are not.
When I was referring to their top money earners Lightyear or whatever they were calling themselves then use to post their top 10 every month now they don’t. But all of them from those lists including Reco have left over broken promises, except Edel. Here is a small list of them Reco McDaniel, Renel Coutelien, Hugo Cartagena,Luigi Gonzalez, Mark Shaver, Skip Lewis etc. Ben who came into the scenario later as I said before with special circumstances that are not normal for all reps that join came to the scene later.
In regards to their customer base I’m saying in comparison to companies that offer services such as 5linx and ACN which by the way i think it is an enhancement for that company to add utilities but to my understanding it’s only in Canada.
Lets not forget that lightyear was pushing an energy drink for about 6 months just over a year ago now that is no longer on their website and they were using their printed tool magazine as a qualifier for bonus’s also just over 1 year ago, I’m not sure about that one anymore. As far as bankruptcy I’m just saying if i had a choice to go with a networking company that did or didn’t I would choose the one that had not filed for it.
These are just my thoughts just because a company keeps changing their highlight point doesn’t mean they are a great opportunity or better than the other companies that really are much more diversified in home services.
Thank you for your reply.
Troy,
Great job with the research! Lightyear is a very solid company.
One thing I'd add to your concern with the bonus payout. Keep in mind that the people receiving those bonuses MUST have a certain number of customers to be qualified to get paid. A top Presidential Director must have a minimum of 20 active customer points to be qualified to earn the full bonuses and commissions. Even with the web system payout as part of the comp plan, that web system can only account for 2 of those points. A rep must have customers on actual services to be qualified to get paid.
Also, a majority of the CAB bonuses are paid out by helping a rep get customers. For instance, when a new rep joins and activates their first 2 customer points that triggers a $100 Fast Start to the enroller. However, if that same rep activates a total of 10 customer points in 30 days that triggers ANOTHER $200 in bonuses to both the enroller and the seller of those services!. That means a NEW rep enroll someone and make $300 in bonuses for helping that person get customers! It is about recruiting, but the company's goal is the loyal customer base – which is why they reward the effort of customer gathering and training others to do that too!
Also, just an FYI Troy, it is NOT necessary for someone to stay on the $49/month web system to be an active rep!
And remember, with situations like YTB, the ONLY product that was required to be purchased was the $49 a month website. They called that their travel product. That is not the case with Lightyear. The web system makes up a VERY small portion of the overall customer base.
Concerned MLMer,
Now see I looked all over for that, but did not see anywhere in writing where it states that. I am glad to hear this. Can you send me something offline to look at?
I have already figured I will need to do another post on some things which have been brought to my attention.
Living An Epic Adventure,
Troy
Concerned MLMer,
I do realize this point, which is why it was only a small concern. As I was doing the math of people I personal know who use Sprint or Verison I realized how easy it is for people to build up their monthly residual while building a team.
Talk about a nice retirement plan.
Troy, thanks for doing a thorough review of our program. Most of us at Lightyear understand there is competition in the industry, and people have choices. That's what makes it so great. The other companies have good things too, but of course we feel we are the best. Concerned MLMer is correct, the website is NOT required to earn commissions. Also, Lightyear Alliance began in October of 2003. I think you said 2006. LYA had already built a distributor base of tens of thousands of reps, on the backbone of the other products and services (VoIP, local, long distance, internet, etc) and all of those products are still available. The Wireless deal with Verizon and Sprint just re-defined the company, and made it what it is today. Thanks again!
Michael,
I have had several emails with some great info on things I left out, or said in a way which caused folks to misunderstand. I will be doing a follow up for clarity. Thank you for this comment.
Living An Epic Adventure,
Troy
I like Lightyear Wireless, solid opportunity. They've been the most consistent among all the others that are coming out and going away.
Thanks, Troy for the review. We liked the no-hype feel and appreciated the honesty and up front reality of the work it takes to build a real business. We also like the emphasis on personal development, which we all know we need. It feels good be part of a professional company with fantastic leadership! Not only do Ben, Mike and Jim make rock solid income, but we found them to be solid as servant leaders as well.
Hi Troy, just to expand on Michael's point about the website. You need 2 customer points to qualify to get paid. It does not have to be from having the web tools…it just CAN be. And even with attaining higher pins requiring more customer points…the company limits how many can come from you being your OWN customer! Say you buy your cell service, voip, dish network, and all of our other services from yourself…it may total 20 points…that is good and you will get paid on those points…but they do not qualify you. You have to have actual customers OUTSIDE of your internal consumption to qualify for higher payouts.
That is rare in this industry!
Lightyear understands REAL time tested business principles. Main Street small town USA cannot have 15 pizza shops. You open a Pizza shop on Main Street and hope everyone on that side of town EATS your pizza. You don't hope every customer who walks in your door opens a pizza shop under you. Once you are profitable, you may have a family member want to open a branch pizza shop on the other side of town. That makes sense.
One of my mentors, Mike Akins, has preached for years that for any mlm to last long term you have to have about 10 to 15 honest to goodness customers for every person getting a check. What a "novel" thought! Have customers who buy your product, why? Because they want it! How quaint!
Lightyear not only does not have reps buying thousands of dollars a month in product to be "case qualified", they prohibit it…not through just policies and procedures…but by designing a comp plan that, while allowing and encouraging internal consumption, it limits it for qualification purposes and forces a person to get REAL customers. (will people always find ways around that, yes, but when you are promoting products people already use and will NEVER quit buying, getting and keeping customers is not that challenging).
Customers, for thousands of years, have been and always will be the backbone of a viable, long term business.
JB
Jim,
As a Senior V.P. with Lightyear, I know you are very busy. Thank you for stopping by and sharing this info. I will be doing a follow up next week with all the additional information I left out of the first article.
Living An Epic Adventure,
Troy
Troy, thank you so much for the great review on LightYear Wireless! People need to know that LightYear is a place where they can hang their hat! This company like you said, is as solid as they come! We all appreciate your hard work on letting people know about "The Good, The Bad, and The Ugly!" I have been in the industry for 18 years and our industry is flooded with scammy opportunities! Your web site is a great resource to keep people informed and help them make an informed decision.
Ron Urban
Ron,
Thank you for the kind words and stopping by to comment.
Although, I am concerned about a couple of items, over the last day or so, folks are sharing more information, and I can see my concerns may be put to rest.
Again, thank you for coming by.
Living An Epic Adventure,
Troy
Troy,
Just a heads up: Lightyear will be launching the only PRE-paid MiFi product in January! Pre-paid wireless internet!
Concerned MLMer,
I had heard they were coming out with the MiFi, I had no idea it would be prepaid… Smart move on their part. Any idea what the unit and service is going to run?
Hi Troy the unit for the MIFI cost $324,99 and that include the first month of service ($69.99) and the $29.99 activation fee and for the month of February they is a special that gives you 6 month of service free after been a customer for 6 month.
Hi Troy, not all details are 100% released but it looks like it will be $69.99/mo with no credit checks or deposits and will support up to 5 users. There is a 5G limit but since it is pre-paid there can be no accidental overages and huge unexpected bills. The final numbers have not been released for the device, but I have heard $249ish. Since it is pre-paid, you can shut it on and off at will. For instance, if you have a child in college and get it for them, it can be shut down for the months they are home and there will be no bill. I'll post here when we have full details.
Lightyear Wireless AKA Lightyear Alliance AKA Lightyear Network Solutions AKA Unidial.. Come on, how many more names in less than 10 years??? Also, I heard they were never ranked 19th by Inc 500, google it! It was Unidial in the 90's…
MLM Investigator,
I find your comment humorous based on the name you choice. It seems you have not done your homework on this company. Let's take a look at the facts, not what you might have heard once upon a time.
1. Here is the history and the public story