In this Tempo Wireless review of the business opportunity I am going to shed some light on the pros and cons of joining. Is this really worth your time and money to get involved with or is just another mlm scam?
About The Company
The company was previously known as ‘LightYear Wireless’ and was founded in 2013 as a network marketing (mlm) company specialising in cell phones. They have a file in the BBB but are not accredited and they operate in the United States.
The core service is a no contract cell phone service that allows you to bring your own phone or buy one of theirs. After taking a look at their website I am not convinced to buy one of their phones at all. They are all either old or alternative brands and the selection is pretty minimal, there’s 12 phones in total.
Personally, I think most people would be bringing their own phone into this.
In my experience a lot of people prefer to just pay the monthly contract amount and have the phone included. A while ago I did a comparison between buying my own phone outright with a pre paid/ no contract option and the savings were minimal (if anything) to being on a competitive monthly plan with a phone being included.
I do like that this company has a tangible product, but I doubt they have a real competitive advantage in this market. They are a very small player and not very well known so I think convincing people to choose this service would be a reasonably tough sell.
Being an mlm opportunity the idea is to sign up and then get customers and try and convince people to join under you. When people join under you, you can earn commissions on their performance. They claim this is the first time any company has allowed people to join for free into such a lucrative business model, but in my opinion this is simply not true.
There are plenty of companies allowing people to start for free but the earnings do not start until you start spending, plain and simple. This company is no different.
The Compensation Plan
They also claim to have a super simple compensation plan and it certainly appears to be so on their website with the simplified breakdown. After reviewing the detailed comp plan though it does take some time to get your head around and there’s a lot of ins and outs to consider.
I’ll attempt to explain it here as best I can…
To get started you have 3 options:
- Manager- Free
- Senior Manager- $324.99
- Regional Manager- $524.99
Those are the first out of 8 ranking levels within this company and depending on which level above you ‘buy in at’ will determine your earning level starting out. The more you pay, the more you can earn.
How You Can Earn
Getting Customers. You can earn a customer bonus of between $13-$25 for personally signing up a customer depending on the rank you have within the company. There’s smaller bonuses of between $4-$10 for home phone and LifeLine customers.
You can also earn residual commissions on the total volume of customer orders (including your own) placed through your replicated website. This ranges from 1-10% according to the total volume of what is ordered.
Recruiting. When you enrol (sponsor) someone into your downline you are eligible for a ‘fast start bonus’. Your referral must get 2 customer points in the first 30 days for this bonus to take effect. A certain amount of customer points are associated with each type of service. The amount you can earn here really comes down to the specific level you are at yourself and what level your referral buys in at out of the above (bolded) 3 options.
For example: if you are a Manager and sponsor a manager you get paid $13. If on the other hand you buy in at Regional Manager level yourself and sponsor a Senior Manager, you can earn $100. The bottom line is there’s quite a few possibilities depending on what level you are at and what level the person buys in at. The total commission potential for each recruit ranges from $13-$270.
Another recruiting bonus is called CAB’s which ranges from $13-$350 depending on your level within the company. This takes effect when you enrol someone that then gets their first active customer.
The bread and butter of any mlm opportunity is the residual income and in this case you can earn between 1-4% of 8 levels of your organisation. To start earning as low as 1% you need to become a Senior Manager and have at least 10 customer points. Given this is such a small commission and the real income you are going to be relying on, this is not very great.
Bonuses. There’s also other bonus offers like a luxury car etc but these things are never as good as they sound and very few people ever achieve this. There’s a lot of strings attached to this and it is only a payment ‘towards’ a car, they don’t buy you one or pay the monthly repayments in full.
Maintaining Your Business
To maintain this business depends on the level you are trying to keep, each comes with it’s own set of rules to stay qualified. At the basic level of ‘Senior Manager’ (where any kind of real earning starts) it will cost you $49.99 per month (3 customer points) to stay active each month. Your team also needs to have 18 customer points in total or you won’t get paid any commissions.
The $49.99 buys you a subscription to a replicated website designed to help you run your business.
My First Year Cost Estimate
This is where I calculate the costs I would reasonably expect to incur being in business with this company in the first year. It is based on my own opinion and research so please don’t take this as gospel.
Joining Fee= $324.99 to become a senior manager
Staying Active= $599.88
Annual Renewal Fee= $50
Other= Includes seminars and conventions and other related business expenditures
Total Estimate= $974.87 +
Not the most expensive mlm I’ve seen but also not the cheapest and it’s certainly not free to start earning anything worthwhile.
What I Liked
- Tangible product that appears somewhat reasonable
- Not a crazy high first year cost
What I Didn’t Like
- Not BBB accredited
- The earnings potential is low in my opinion
- You have to ‘buy in’ to unlock more earnings potential which is a big red flag for me
- The website system they offer is overpriced and not the best approach to leveraging the Internet
- They encourage people to lean on family and friends to grow their business
- The company website is very average and does not present a credible image of the opportunity
Overall I am not convinced this is the best opportunity and I think trying to compete with major telco companies is going to be a tough gig, especially with this company. The compensation plan suggests a very low residual income potential which is a major drawback given residual income is the highlight of joining any mlm.
I also think the way they are teaching people to build the business is not going to help people achieve the best results. It’s nice to have a website to capture leads but without the proper training you will be paying for people to visit that website which will be extremely costly. The other method is to hassle your family and friends to join your business and unfortunately this is a very short lived approach.
Eventually those leads will run out… then what?
In my opinion the best way to build any mlm business is with your own unique website and learning how to get free organic traffic (website visitors) to that website. This is what the top performers in every company do because they know that to be successful requires constant lead generation and recruiting.
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