MLM Wireless VOIP News: Is VOIParty just another MLM VOIP pyramid scam or legitimate MLM VOIP company? Well over the last few weeks we have received several calls and emails on this new south Florida company, which is why I am putting out this MLM Scam Alert.
What makes this company so interesting is the fact, their technology is not new (although they act like it is), and the fact they use a force matrix (except they have not published the compensation plan) and refuse to call themselves an MLM company.
Here is part of an email I received this weekend.
“While VoiParty is not by definition an MLM (it does not require any monthly purchase so VoiParty lawyers are trying to get a new classification for the company); in fact, as a box buyer you are not even required to sign-up anyone—you just maximize your income if you do so, and who would not want to pass on this passive income option to their friends?”
Let’s take a look at this paragraph for a second.
1. No MLM company requires monthly autoship to be part of the company – So they sure sound MLM to me.
2. Our Lawyers are trying to get a new classification – Folks MLM or Network Marketing are structures of the sale force and compensation plans. All companies who have an independent sales force and pay using more than three levels of compensation are direct selling companies and there is no other classification.
Now, here are a few benchmarks where they have failed.
1. They do not list the founders of the company
2. They state they are in Invitation launch, but have not published as the date of this post the policies and procedures or the compensation plan documents.
3. They state they hired Scott Warren as their MLM attorney. I question if they are taking Scott’s advice. Scott has been a friend of the DRA for years, and is a well respected legal mind. They complete launch does not look like any other company I have ever seen Scott represent.
Now, let’s take a look at a few of their videos which have raised some questions.
1. The statement made in this video “The majority of people who join Network Marketing never recoup their initial investment is completely false. First people DO NOT invest in MLM when they join. Second Direct Selling News reported this last year that the average MLM distributor earns $2500.00 annually. Where do they get their facts, and why launch an MLM if they do not like the profession?
2. VOIParty is stating people INVEST in their company when they join. Not only is this illegal on a federal level, it is also illegal in the state of Florida. Where is the prospectus if the company?
3. In the above video VOIParty states Everyone recovers their INVESTMENT. This is a statement of what will happen before it happens. Again since the company has not launched, this will be seen by regulatory agencies as an incitement to join, based on hypothetical, not on factual historical data. Where is the mathematical equations used to come to this conclusion?
I challenge VOIParty to fix these issues before they launch and issue a retraction to everyone who has already joined.
Now, as you review the compensation video, it is easy to see a standard force matrix. In and of itself I have no problem with the compensation, except I do not believe it will work for this business in the long run.
1. Right off the bat, the video focuses on sponsoring new people into the compensation plan to earn income. Nothing is said about retail selling of the service. Are commissions paid for retail sales?
2. From the video, and remember no documentation is available, everyone is part of the matrix, which means there is no service being sold to anyone outside of the compensation plan in one form or another. this is a red flag for all regulatory agencies, as well as us here at MLM Help Desk.
On the surface I believe this company has a viable service, but when they added a matrix and focused 100% on recruiting into the compensation plan, it falls into the legal definition of an MLM Pyramid!
This last video shares a little deeper into the technology and idea behind the VOIParty.
We will keep an eye on this company, and look forward to talking to some of the owners if they come forward.
Living An Epic Adventure,