The Company: Tempo Wireless
Founder & CEO: Tony Tomae
Startup Cost: $0 - $524.99
This company sells 'no contract' cell phone services and claims to offer people a worthwhile solution in this space. They also say they offer the perfect business opportunity for those wanting to sell their services. It's not a scam, but I'm not convinced it's the best biz op going either.
The company is quiet about who owns it and who their 'founding company' is, however it appears it was previously known as 'LightYear Wireless' and was founded in 2013. In any case, this is a network marketing (mlm) company specialising in cell phones 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.
The Business Opportunity
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.
What I Liked
- Tangible product that appears somewhat reasonable
- Not a crazy high first year cost
What I Didn't Like
- The earnings potential is quite low in my opinion
- 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?
You can make money building your business with this company and some could even create a full-time income no doubt. But I personally think there are better products and more lucrative opportunities out there than this. Whatever you decide, I hope this has been helpful!