I got a call this morning asking me about Solavei and the $49 cell phone biz that has created a lot of noise the past month or so. I have had other inquires, even some that stated that Solavei was better than Vitel – Vitel Wireless. Well lets talk about it, and separate hype from reality, with a touch of how it compares to Vitel.
I have just watched a 1hr and 13 min Solavei webinar video held for Solavei founders on 7/25/2012, and some other corporate compensation videos. Here’s my analysis of the matter, and why you should be cautious of those stating it’s the best Free Cell Phone service biz especially as it relates to Vitel – Vitel Wireless.
Here’s a real unboxing of Solavei…
We can clear the air on this, it’s not a scam you are buying a legitimate viable service. As well as, the company has top notch big business leadership. However, let’s look at things deeper and see if the sizzle has substance.
1) Solavei has exploded because ownership gathered 400 key founders of networkers in the mlm industry. Those 400 could only go get 12 people in as founders, so they went to promoting with a fear of lost. Thus a quick @ 2-4k+ people jump on board. Those 2k people times 10 referrals to a free prelaunch and yes you get a big buzz of thousands making things seem extraordinary because of so much activity in a very short period of time.
Historically it’s very easy to fuel a fire with a free “get in first” type promo. These are not nearly all paid people in the biz, from what I’ve gathered. Traditionally the company and reps loading free members will be blessed to get a 10% upgrade, standard is less than 5%.
2) They want to have a big webinar of 20k people to say they had the largest webinar and biggest launch in history, well that’s just 2k founders getting 10, easy to do. Plus the company started with core experience networkers that got a deal of sorts (usually). Nothing new to this industry, and that is fine to create a spark. Again all these 1000s of people are a bunch of free sign ups trying to put people in to see if they can get somewhere with the business. No problem per se, just understand all the buzz isn’t paid people getting free phone service and making money.
3) They have major connections with some big names in business that have been brought on board to validate an unknown company’s phone service/deal. Good job, because mlm cell phone service provider companies have overall failed the customers and those looking to build a networking business with it. WOW mobile, Global Verge, XoomMobile to name a few. The company apparently has major funding to try and avoid the Lightyear debacle, and to keep things moving along for some time until hopefully profits kick in. We shall see.
4) The opportunity is nothing more than a social network, connected to established social networks, that offers phone service & some rebate shopping. They admit that. They have built their own social network intertwined with the back office, for promotion on Facebook, etc. Nice feature but nothing special in my view. Every opportunity is on Facebook, Twitter, etc. regardless of the platform. The hyping up of Solavei as the next Twitter, Facebook, Google, Ebay, Microsoft, in an category of mlm where cell phone service provider opportunities has failed way more than succeeded is a bit over zealous.
5) The Product. Nice, but Vitel has practically the same T-mobile $50 plan available, along with other plans: www.nophonebill.vitelwireless.com/pre-paid-wireless.html, and Vitel pays any cell phone bill for any carry as much as $125. The unlimited data, sounds nice but they know the average usage will not break the bank. If it did, that plan would change, believe that. Additionally, if you don’t have a GSM AT&T or T-Mobile phone, you will need to buy a phone to get the service. Well, we know how that negatively impacts success in this area of mlm…ask Lightyear reps. Albeit, even harder for Lightyear reps because customers have to do a full fledge switch. Plus, Solavei has a $49 activation fee, that includes the $29 sim card. Thus, $98 to start the biz and potentially get free service only if you have your own phone. Add in their cheapest phone at $159 because you don’t have AT&T or a T-Mobile and now you are looking at $257 plus possible shipping & tax to get started. Sound like another $300 to get started cell phone mlm business.
6) Solavei Compensation plan: 3 = 1 = $, OMG! Referring 3 is necessary to get paid any income. If looking at your own personal production, it takes 9 Personals to get enough in compensation that would cover your new Solavei $49 phone service. Quite contrary to Vitel that with their new Executive $59.95 monthly plan offers free payment of $50 towards ANY phone service with only 3 referrals. Of course with Solavei, you can refer 3 who each refer 3 and you have enough to cover your Solavei phone service. However, with Vitel all 3 of your referrals that referred 3 would have free phone service without needing to buy a new phone, sim card, or incurring an activiation fee, plus you would be earning additional monthly income.
When it comes to the actual product of Solavei and if you don’t have a phone that works with their service you will have a choice between 3 brand new, Android smartphones or the option of purchasing a SIM card and bringing your own phone to the Solavei Network.
There are 3 types of Solavei members:
- Service member: someone that uses Solavei service only- $49/month
- Social member: someone who is a service member and also participates in the compensation plan- $49/month
- Social Member without service: A member who choose only to participate in the compensation plan. These members must pay an annual fee of $149 to participate in the compensation plan.
Again, there is also a one-time activation fee of $49.
The Biggest Caution I See For Solavei Representatives:
There appears to be extremely massive breakage in the Solavei compensation plan. This I believe will kill the big sizzle because results will not be stellar for the average hard working reps, especially since they have a limited market of people that won’t have to buy a new phone (remember all the large numbers you are hearing about now are just the free prelaunch enrollment buzz) . This type of massive breakage is what I call pimping the networker for the greater benefit of the company to gather customers while the reps fail to get adequately compensated.
Not being able to get paid per referral is typically NOT a good comp plan for mlm where some people struggle to get 2-3 people. With the limited 60 days to get bonus money of $650 you have a compensation plan that is not designed for the average person. Any network marketing leader that draws people into this type of deal is suspect or uninformed, as to building a network business. If you want to just get the product that’s one thing, building a business another. Often most are so dazed by the product they forget about the intricacies of the compensation plan of which they hope will pay their bills and set them financially free. When that daze does were off, they find that the sizzle lacked substance and move on, but the company will have gathered a nice customer base including former actively promoting reps.
Last but not least, Solavei has a max of 40% per leg in order to get paid on the trios beyond first rank of Social Partner in “The Path Pay.” Thus, 12 trios and higher requires 3 legs with no more that 40% compensation from each leg in order to count and earn a rep additional bonuses and monthly income beyond their personal network. A rep will catch “hell” trying to create a nice 4 figure monthly income let alone that $20,000 monthly they talk about. Vitel doesn’t have any such requirements to get paid on all levels of the Vitel Benefits membership. That 40% requirement per leg is enough to make any serious networker that knows what to look for in a compensation plan that can work for the average person to proceed with caution or more like not at all, in my view.
Short comparison to of Solavei compensation compared to Vitel – Vitel Wireless compensation:
Early on, the first couple of levels (trios to trios) their comp plan pays more than Vitel, but it pretty much ends there, even if I compare the mid-level Vitel membership, the Executive plan, using our 5 levels of pay at $5 a person monthly, Vitel has a greater compensation potential with much more to offer. Plus, Vitel doen’t have anywhere near the breakage because you get paid compensation per vitel benefits network referral with no qualifiers to be paid on all levels.
Solavei doesn’t have a monthly membership cost and work off of just the product cost, that has the appearance of an advantage, as some reps have promoted comparing Vitel vs Solavei, until one understands the massive breakage that MUST be in such a comp plan working off a product with low profit margins. Since the product is not a “specialty unique” product concoction of Solavei they can’t justify a higher price for the same product/service people can essentially get without spending more money, so that means they have to make adjustments based on the referrals and how they pay per referral, or NOT in this case.
It also looks like the comp plan maxes out at $20,000 a month with 6000 people in groups of 3’s on the phone service part. 6000 people in Vitel blows that away at Executive-$30,000 per month, or Platinum-$42,000 per month, and we do NOT pay based on 3 = 1 = $. Note: Solavei reps are not limited to 5 or 7 levels to pick up the trio compensation, but it matters not if it’s not a feasible comp plan for the average person because there is massive breakage, and qualifiers, that makes it difficult for reps to earn a good income.
They have a cash back debit card on other services with their partners, not even comparable to Vitel’s product compensation which gives another grand income potential. Additionally, Vitel has a prepaid card that pays you for deposits and swipes: Get Paid Like A Banker with Vitel.
In the end, there will be sizzle especially into the prelaunch then when people are not cashflowing like they fantasized the sizzle will end. The company will have a lot of customers (they hope), the reps will make little to no money, there bills will not be paid, their financial freedom via mlm will not evolve, and we will have AT BEST another Lightyear company, hopefully wthout the poor financials that Lightyear has. At worst, we will experience another WOW Mobile.
Lastly, these corp heads are MASTER marketers. I’ve seen this before. I mean they are making 3 =1 = $ sound like a great thing for big cashflow in network marketing. Since they are Master marketers this will always suck many people in because they do not know how to see through this. Therefore time has to erode the illusion in the marketing by truth in the results. We’ll see how much talk about Solavei will be out their with big fervor 6-12 months after the launch.
Here’s a video review and comparison I did on Solavei and Solavei vs. Vitel:
I do wish the company great success and its representatives. The info above is my view and would be my view even if I wasn’t a Vitel representative. In all my years of network marketing I never joined cell phone mlm’s that required a person to switch to get paid and benefit from the cellular service. I’ve been with Sprint for over 15 years and like it. Therefore this is a review to exposed over zealous hype by those that try and take shots at Vitel, and not to bring down the company. As well as, provide a perspective for those researching the Solavei opportunity. The facts of the compensation plan are what they are. I didn’t create it. I just critiqued it.
If you’d like to see how Vitel is willing to pay you $15,300 a year to pay your bills: Cell Phone, Membership, Cable/Satellite TV, Internet, Electric, Car and more visit my site: