MLM Weekly News: Red Alert On Texting Company, MLM Company Makeover and New MLM Startup Spotlight

This has been a crazy and fun week inside the MLM community. From Text Cash Network receiving a review from Ted Nuyten, to Lifeshare doing a complete makeover to become Pixingo, to the energetic and passionate Navy wife Lisa Diaz launching Homecoming Trunk Shows. All this and more in this weeks MLM News Report.

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Pixingo may very well be one of the most creative makeovers and re-branding of a company in the network marketing community in history. I rank this creative move with the likes of New Vision (VEMMA) and OxyFresh (21Ten). What Michael Yanke and his strategic partners have done is in my opinion is the closest thing to a business miracle I have seen in 2011!

I have had the privilege of not just working closely with Michael as an outside brain storming partner, we have become very close friends. Like other close friends of mine who own companies which use the network marketing community as their main marketing channel, I have seen what Michael has gone through, as well as what he field leaders have gone through as they together weathered the first year of a MLM Startup company. My hat has to go off to the loyalty he has shown to his field force and the loyalty his field force has shown to him, as they went through this re-branding to create a stronger business opportunity for home-based entrepreneurs, and a more powerful digital imaging experience for their retail and wholesale customers.

MLM Startup Spot Light Of The Week

HCTHeder

As someone who has served in the U.S. Marines and who fully supports our troops and their families today, when I found out about Lisa Diaz launching Homecoming Trunk Shows, I could hardly wait to go see what she had put together.

What I found was that although the company itself is what we call an MLM Stratup company, Lisa has been laying the foundation for the company for over eight years.

“Lisa Diaz, a proud Navy wife, has been hosting Trunk Shows for years as fund raisers for every type of organization you can imagine. She had a knack of finding unique, affordable and incredibly stylish handbags, clothing and accessories that women loved. After eight years, she decided to start a company that gives women the opportunity to work on their own term and to be rewarded and recognized for their
hard work and effort. She wanted to create a community of women working together where they can thrive personally and professionally by helping each other succeed.”

Now boys, this is not a company where you may feel at home as a distributor, but it truly is one you should share with your wives. Liza and the founding Stylist’s are all Navy wifes, and they are very proud of the fact they launched this new MLM Mission to “Our mission is to Inspire and Empower Women with Style.”

I truly love the fact, they are not trying to be politically correct or make “everyone feel at home” They are on a very strategic mission. As a matter of fact when I read the mission statement of Homecoming Truck Shows, it reminded me of another lady, who while sitting at her kitchen table wrote out a similar mission statement. And today her company is one of a handful of billion dollar network marketing companies… Mary Kay. If I have learned nothing else in my life, when women put their mind to something, you can bet they will succeed.

Miss Liza, welcome to our great community, we support you and your mission wholeheartedly.

HCTMission
HCTShowRewards

Red Flag Alert

Updated December 27th 2011: Purported World Headquater DOES NOT Contain The Name of Text Cash Network: http://www.patrickpretty.com/2011/12/14/police-confirm-that-name-of-text-cash-network-does-not-appear-on-building-in-boca-raton-fla/

Editorial Update: Brett Hudson, President of TCn reached out to inform me, Ted Nuyten has updated the above mentioned review to show a correction in the TCN compensation plan. Although my opinion is that this business model does fall under the legal definition pyramid, out of fairness we must link to Ted’s update. Click Here!

My good friend Ted Nuyten published an article on Text Cash Network yesterday that caught my eye. After reading the article I went and did a little research on the company based on the fact their master distributor Joe Reed has such a controversial history at joining companies which seem to come on strong, but are gone just about as fast. One of his last rides to the top was the DNA (Data Network Affiliate) which in their early stage was nothing more than a shell game, and fell under the term pyramid scheme.

In doing a review of Text Cash Network, they are working under the same idea, that with free signups it is ok to pay people from outside sources which the distributor has no contact with. And on the surface this does look like a great deal for the company and referral agents (the name for distributors). However, the laws are very clear this is not legal. As a matter of fact I wrote an article on being a distributor for a direct selling company this week at The Network Marketing Advocates which explains this in detail. (What Does It Mean To Be A Distributor For A Direct Selling Company)

For those who do not want to read the full article here is the two factors based on the U.S. Tax Code specific to direct sellers (YOU!):

26 U.S. Code 3508
The term ”direct seller” means any person if –
(A) such person –
(i) is engaged in the trade or business of selling (or soliciting the sale of) consumer
products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar
basis which the Secretary prescribes by regulations, for resale (by the buyer or any other
person) in the home or otherwise than in a permanent retail establishment,
(ii) is engaged in the trade or business of selling (or soliciting the sale of) consumer
products in the home or otherwise than in a permanent retail establishment, or
(iii) is engaged in the trade or business of the delivering or distribution of newspapers or
shopping news (including any services directly related to such trade or business),
(B) substantially all the remuneration (whether or not paid in cash) for the performance of
the services described in subparagraph (A) is directly related to sales or other output
(including the performance of services) rather than to the number of hours worked, and
(C) the services performed by the person are performed pursuant to a written contract
between such person and the person for whom the services are performed and such
contract provides that the person will not be treated as an employee with respect to such
services for Federal tax purposes.

So based on the current business model of Cash Text Network, there is no “soliciting the sale” by the distributor, only the solicitation of “recruiting other distributors” which raising huge red flags of a pyramid.

Some other red flags I found are as follows:

1. The website is under a private registry. From the SEC, FTC to state AGs all state this is a red flag.

2. The two companies I found listed on their website T.C.N. Inc and The Cash Network Inc., are not listed anywhere on the official Florida Secretary of State website (SunBiz.org) to transact business in the state of Florida.

3. Their “Referral Agent Agreement” points they are domiciled out of Wyoming, yet the Terms of Service point to a domicile out of Nevada, and yet again the “Terms of Use” point to Florida as a possible state of domicile. This issue is a red flag, because if anyone from a merchant, distributor or an end user has an issue, there could be such a confusion of which state has jurisdiction, that the average person may not be able to afford legal counsel to pursue any form of civil relief.

4. Another red flag, although a very small one is the fact, the picture Ted shows in his review as their new international headquarters is not located in a database of over 2 billion images listed on the Internet.

Text_Cash_Network_Head_Quater

I have reached out to Brett Hudson, the president of Tech Cash Network, and he has agreed to review the questions and red flags I have. From researching Brett’s background, he seems to be an extremely experienced and successful business man.

If you decide to join Text Cash Network or any other texting company purporting to use a MLM compensation structure, I strongly suggest you do your research, before jumping head first into the business.

Also, as a side note. Google owns the worlds largest mobile texting network, and works closely with the four wireless carriers to provide this service to the end users. Just like last year with several small MLM wireless companies launched and went out of business. The top four carriers controls the space and can decide who they do business with. I am not sure this niche will ever be a viable long term business for network marketing.

U.S. Tax Code Governing Network Makreting, Direct Sales, MLM

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9 thoughts on “MLM Weekly News: Red Alert On Texting Company, MLM Company Makeover and New MLM Startup Spotlight”

  1. Henry,

    I am doing a follow up in todays MLM News. I wish I could tell you thinks look good but new info, still leads that this is a scary situation at best. At worst it is a scam!

  2. @Chris

    Thank you for the clarification about posting ads… and the texts not being sent yet. I guess I would have learned that on a conference call, but to be honest… once I started seeing the possible connections between this company and DNA I simply lost interest in investigating the 'opportunity' further.

    I actually noticed the replicated page issue after I made my previous comment… That is a huge issue… the average guy will simply use the replicated sites, but from what I remember the company is pretty much forbidding a rep from using any other method to promote this opportunity other than the service they are selling…

    Good for them, bad for the reps. Besides, if their model was sound…. the text marketing model.. they really shouldn't be charging such a steep fee for another version of a replicated site… and then a monthly on top of that. It really is time for companies to stop growing on the backs or walking on the backs of their reps by having them pay for things which are nearly 100% profit to fund the growth and expansion of the business.

    To me this has the stink of Phil Piccolo all over it and I have advised my guys to tread with caution.

    Personally… I will have nothing to do with this program

    Chris, as for defending something for X days… Man, I hear ya! I've been there and done that… never again!

    May you find what you seek in all things!

    Rick Weston

    Millionaire in training

    Founder of The Instant Downline

  3. What annoys me is I know for a fact TCN is a waste of time and will turn into nothing. I have tried to tell people to stay clear yet they don't listen.

    Troy please please please do a follow up on this. Your the man people respect and listen to your advice all the time.

    I hate to see people being ripped off, especially at this time of year.

    Thanks!

  4. @ Rick

    The qualification of posting an ad is for ONE of the income streams incentive only. That isn't a requirement as stated on one of the updates. Also, they have also mentioned numerous times that NO advertisements have started yet. Once advertisements have started, then we will start to receive them via text or email.

    I do however see some other issues being that no one can use their own" personally made" splash pages, they have to use the new TCNPros splash page which will cost $99 set up fee plus $30 per month to use it. If reps dont want that option they are stuck with the current replicated page which is a big problem for marketers because of the pop-up boxes, most ad networks reject that page because of the pop-ups like T.E.s and PPC etc.

    https://www.freeconferencecallhd.com/playback.htm

    This was the update from last night's call.

    Also, I dont like the fact they have disabled customer support…that is a major turn off. There is no way to contact them…crazy.

    I dont feel comfortable promoting heavy any more like I was, after I heard the correlations of this and DNA, my stomach started to curl…sucks because I just paid for the TCNPros system…good thing I bought it this morning under the discount price, so i didnt lose out too much if this ship sinks…just sucks because I've been defending this thing for the last 30 days…

    we'll see what happens

  5. Troy,

    After several of my reps started asking me to look at TCN, I decided to take a close look and see what I could find out about the company, not to build as a business, but to make sure my guys are not getting stung by some sort of bogus program. I even signed up as a "rep" to see what the program is all about. There seem to be some pretty serious issues with this business model and the company setup in my opinion.

    First in order to be paid you must be 'active' and your team members must be active… one of the requirements of being active is you must post one ad per day and have it verified by their system. It seems to me you will have many people who simply won't do this requirement either due to laziness, forgetfulness or a variety of other reasons…

    Goodbye commissions…

    Another issue, I registered as a 'rep' and confirmed my phone for text messages… as of yet I have received ZERO advertisements or texts of any kind, other than the setup text, and it has been about 5 days since I registered… Not good if you plan on getting paid for reading texts…

    I have also seen several references online that our friend Phil Piccolo might be involved with this company… ugh… not again! DNA, OWOW, and now Text Cash Network? If he is involved I wonder what alias he is using this time? There are several articles on this and here is one I found very interesting.

    http://www.patrickpretty.com/2011/11/25/special-r

    One of the items which really stands out is that the DNA site and Text Cash Network's site are both on the same server… Something fishy is going on in my opinion. I know it is possible for two MLM companies to use the same server, but really? How likely is it though?

    If Phil Piccolo is in fact involved with this company… run… Just wait and I bet the magic magnetic showers and other products Phil promotes will show up too!

    All I know is that when I started asking tough questions of Phil Piccolo A.K.A. Warren Anthony, about DNA his reaction as a "consultant" to DNA was to have my distributorship "terminated for life"… I guess I will be receiving the same notice from TCN too?

    I can hardly wait!

    To success and the freedom to enjoy it!

    Rick Weston

  6. Jane,

    This information will be in my upcoming article. I have reached out to Brett and I am waiting for answers to the 10 questions I asked him. He assured me he would respond.

  7. Hi Troy,

    Did you get the results back from your friend about that TCN office image?

    I actually had a PS expert examine the image and she says it does seem to be layered. I just wanted to know what your friends results were.

    I already know TCN is a scam and I think this will prove it along with the other major red flags.

  8. Gail,

    Thank you for the kind words.

    I do need to make one small correction. What I wrote in the article was the following in regards to Brett. "Brett Hudson, President of TCN, SEEMS TO have an impeccable record of business success.

    The words "seems to" changes the statement. I never said I think his background is impeccable.

    In what I have found, it does lead the reader to assume Brett has been successful in business. In my next report I will be sharing some of the information I found about Brett personally.

    Stay tuned 🙂

    Living An Epic Adventure,

    Troy

  9. Hi Troy,

    Enjoyed your review above regarding Text Cash Network! I have a question for you. You made the statement that Brett Hudson, President of TCN, has an impeccable record of business success. I cannot find anything, anywhere online, to substantiate that. Can you enlighten your audience on that point?

    Thanks,

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