I was recently made aware of a new company called Solavei that has launched in the mobile service arena.
One of the primary things that make this company unique is the way in which its service is being marketed. They are basically using a Network Marketing model (also known as Multi-Level Marketing or MLM), with an emphasis on web-based social sharing.
Since it’s being pitched as an income opportunity, and largely a web-based one, I decided it would be fitting to do a review of it. I wanted to do some research to determine if it was an opportunity I would be interested in getting involved in, and at the same time I figured it would be nice to share my findings so others can learn more about it.
Normally, I wouldn’t even consider joining an MLM, but I figured this one was at least worth looking into due to the nature of its product (mobile service) and its potential to integrate with my existing Internet marketing business. I really don’t want or need to add this to my business, and I’m generally not keen on MLM’s, but I’d hate to miss out on a great opportunity. So I’ve set out to be as fair and balanced as possible, for my own benefit, and yours.
Let’s start with the basics…
What is Solavei?
According to their website, “Solavei is a better way to get mobile service at a great price – plus the opportunity to earn when you share.”
Pretty vague, right?
My first thought when I heard about this new mobile service, was how could they possibly compete with the big four networks (AT&T, Sprint, T-Mobile, Verizon)? How could they manage to build a new 4G network, when I don’t even have 3G available at my house yet?
It took just a couple minutes of digging to discover that Solavei isn’t building a network, but is actually a mobile virtual network operator (MVNO).
According to Solavei, this means that they entered into “a strategic partnership with T-Mobile USA.” If you want to learn the nitty-gritty about MVNO’s, you can check out the Wikipedia article linked above.
In simple Internet Marketer terms, this basically means they are a reseller of T-Mobile’s services.
I’ve got no problem with that. I’ve been a reseller of various product and services like web hosting, SEO, and list management.
In many cases, the reseller business model can be a win-win-win. The original service provider wins by selling more of their service. The reseller wins by building a business and making money as a result of their sales. The customer wins by getting a better price.
You might wonder, how could the reseller offer a better price than the original service provider? The answer is that the service provider sells their service in bulk at a discount to the reseller. The reseller then divides that product/service into individual units and sells it at a price that beats the service provider’s direct-to-consumer price, while yielding a profit for the reseller.
In the case of a web hosting reseller, the reseller may rent a web server (or a portion of a web server) from the web hosting company. The reseller would then divide those resources into individual packages, and sell web hosting to end-users for a price that may beat the top level web host.
In the case of MVNO’s such as Solavei, they are buying bulk access to network services from network owners, such as T-Mobile. They are then selling access to those network services to end-users for a price that may be favorable compared to say, subscribing directly with T-Mobile.
There may also be some drawbacks to purchasing through a reseller…
While the above examples illustrate the potential for consumers to save money by purchasing from a reseller, that’s not always the case. To the contrary, reseller prices are often more expensive.
A reseller of any type is essentially a middle-man. They make their profits by marking up the price above their acquisition costs. In many situations, this results in prices that are higher than the consumer would be paying had they cut out the middle-man.
The other main area of concern is often customer service. While not always the case, resellers are often responsible for interfacing with and taking care of their customers. In some cases, this may result in a superior experience for the consumer, as the reseller may be able to provide more personal and customized service than the top level provider.
However, resellers may also be less-equipped to handle customer service, and may run into problems particularly when technical issues arise. Since an MVNO doesn’t own the network itself, they may rely on the network owner to fix technical issues, and thus the MVNO’s support department is acting as an intermediary between the end-users and the network.
Keep in mind I’m speaking in general terms here, as I am not a user of Solavei’s service, so I can’t judge their customer service one way or the other.
How does Solavei’s mobile service compare?
As I’ve already mentioned, Solavei’s wireless services are hosted by the T-Mobile USA network. So if you’re familiar with T-Mobile, you’re familiar with Solavei’s quality of service. This does not mean that the services or packages are identical, but the network infrastructure is the same, so I would expect the quality to be similar.
While Solavei touts themselves as being groundbreakingly new (apparently due to their marketing model), MVNO’s have actually been around for a long time. According to Wikipedia, there are currently 633 MVNO operations worldwide.
I wasn’t aware of it until researching for this article, but I was actually a subscriber of an MVNO at one time. Apparently Qwest Wireless was an MVNO with service from Sprint. My experience with that mobile service was not a particularly good one.
I also have some first-hand experience with T-Mobile, having been a subscriber for several years. I was typically very happy with their service, and really didn’t have any problems with it until I moved out into the hills. The T-Mobile coverage is spotty out here, so I switched over to AT&T. If it weren’t for that fact, I would probably still be with T-Mobile.
You can check the coverage on Solavei’s website.
Here is their coverage map…
Make sure you zoom in as close as possible to your house. From a distance it may look like there is good coverage, but as you zoom in closer there may be holes.
Here is the coverage map showing my neighborhood…
My house is in the yellow zone, which is 2G only. If it were solid uninterrupted 2G, that might actually work for me, but in my experience with T-Mobile it was still pretty sketchy. If they were to upgrade the network and put me in the dark-green or at least medium-green zone, I’d likely be switching over.
According to Solavei’s website, I could even bring my iPhone over to their service. They have the option of bringing your existing phone (many are compatible… you can check it on their site), or buying a new one from them.
So as far as the service goes, it really just depends on the strength of the T-Mobile network in your area.
How does Solavei’s price compare?
If you look solely at Solavei’s comparison chart, you would believe that they were leaps and bounds ahead of most of the competition…
Indeed, their price easily beats the big four providers. Solevei’s package is $49/month for unlimited voice, text, and data. Comparable packages with the big four cost anywhere from $70/month (T-Mobile) to $109.99/month (AT&T and Sprint).
The other providers are listed on the comparison chart are actually MVNO’s too, with the exception of Cricket, which is owned by Leap. Leap has its own network, but they also have a deal to provide 3G service through Sprint’s network, so they’re kind of like an MVNO too.
StraightTalk (aka TracFone) ($45/mo) has deals with all four of the big networks. Walmart Family Mobile ($45/mo) utilizes the T-Mobile network, while Boost Mobile ($55/mo) and Virgin Mobile USA ($55/mo) are both hosted by the Sprint network.
So right there, we can see that the MVNO’s prices in general beat the actual carriers. But is Solavei the best of the MVNO’s?
After analyzing the MVNO’s listed above, as well as many others (all US based services), I’ve come to the conclusion that Solavei’s price is at least on par with the others, and beats them when all factors are considered (particularly the 4G network).
One area where Solavei is lacking is a selection of plans. Whereas most providers have a variety of plans available, Solavei currently only has one. So if you’re looking for an “unlimited” plan, Solavei is about at cheap as you’ll find. But if you don’t need that many minutes and/or data, you may be able to find a cheaper plan elsewhere.
For example, Simple Mobile (hosted by T-Mobile) is currently offering a plan starting at $25/month with NO data. But their plan most comparable to Solavei’s would run you $50/month.
I-wireless (hosted by Sprint) has a plan for $25/month including 200 minutes of talk time, and a mere 200MB of data, if that’s all you need. Their plan most comparable to Solavei’s would run you $75/month.
Net10 (Multiple carriers) has some smaller incremental plans available, but again you’ll be paying at least $50/month for unlimited data. I found similar situations with Black Wireless (hosted by AT&T), Ultra Mobile (hosted by T-Mobile) and other MVNO’s as well. Smaller plans are available, but you’re going to be paying at least $50/month (and in many cases much more) for unlimited data.
I did not do an exhaustive search of all of the hundreds of MVNO’s, but out of the dozens that I checked out, the only providers I found with a potential price advantage over Solavei were Boost Mobile and Votel Mobile (both on the Sprint network). Boost offers an unlimited plan for $50/month, but also includes a “shrinking payment” feature, which allows your monthly payment to gradually shrink as low as $35/month if you make 18 payments on time. Votel offers unlimited plans as low as $33.33/month (pre-paid for 3 months at a time) or $43.33/month if you have an Android phone.
However, Solavei beats all of the above if you consider the 4G network. The low-priced Sprint providers are offering 3G data plans, whereas Solavei includes up to 4GB of data on the 4G network each month. So if you live in a place where T-Mobile’s 4G network IS available, Solavei is the clear winner at this time.
If Solavei takes off and starts gaining a decent market share, I predict that the other MVNO’s will end up in a price war, and we will see lower prices across the board.
Now for the topic you’ve been waiting for…
Solavei’s Income Opportunity
As I mentioned, the thing that really sets Solavei apart from other providers is their marketing strategy.
While you won’t find the terms “Network Marketing” or “MLM” on the front end of their website, a cursory glance at their compensation plan is all it takes to see that’s what it is…
I want to start by saying it’s a brilliant idea on the part of Solavei’s founders. In many ways it seems like the right business model at the right time.
People are feeling the pinch of the economy, and are looking for ways to save money, and to make more money. Solavei offers the chance to do both. We’ve also reached a tipping point of sorts, upon which social proof is becoming the most influential decision-making factor for many consumers. The marriage of social media with this business model and an in-demand service that we all use seems like a match made in heaven for the owners of Solavei.
Therefore I think Solavei has a good chance of success as a company. The viability of the company is an important factor to take into consideration. The last MLM I joined was Agloco in 2007, and they never even launched! Obviously I don’t want to get burned like that again.
It seems like Solavei is off to a good start. On November 13th, they announced that they were up to 65,000 members, and had paid out over $1 Million in commissions to its members. So clearly, some people are already making money with this opportunity.
Customers of Solavei’s mobile service are automatically given the option to enroll in the compensation program. There is also an option to join as a “Social Member Only” for $149/year, which allows you to participate in the network marketing program without subscribing to the cell service.
What’s wrong with MLM anyway?
Generally speaking, one problem with MLM is that it offers false hope. MLM pitches financial freedom, but almost never delivers such freedom to its participants.
Of course the same could be said about many other business opportunities, including affiliate marketing and other web-based endeavors. However, there is a fundamental difference between MLM and the type of businesses that I teach how to build.
I teach how to build your own web-based business, in which you sell your own products or services, and you build equity in that business. With MLM you don’t really “own” your own business. With MLM, you don’t own the product or the system. You’re at the mercy of a number of other factors, including government regulation that could wipe out your MLM business overnight.
Extensive research has shown that most participants in MLM programs do not make any money. Jon M. Taylor, Ph.D, who studied over 400 MLM companies, concluded that an average of 99.71% of MLM participants LOSE money. That’s 997 out of 1000 people; not very good odds. (source)
Other research has shown that you have a better chance of making money GAMBLING than you do by participating in an MLM program! (source)
And don’t even get me started about the manipulative and cult-like tendencies of many MLM companies. (source)
How is Solavei similar to a typical MLM opportunity?
Similar to a typical MLM program, Solavei pitches an income opportunity within which most of its participants probably will not succeed. I believe that their compensation plan is set up in a way that virtually guarantees that they will not have to pay out commissions to the majority of their subscribers.
Let’s compare it to a typical affiliate marketing situation. With most affiliate programs, you earn a commission for each sale that you make.
With Solavei, you earn a commission for each “Trio” in your downline. A Trio is made up of three mobile service members directly connected to a single member. As it relates to your own referrals (your personal network), you only get paid for every group of three customers that you refer.
If you sign up one or two customers, you get nothing. My opinion is that this will allow Solavei to avoid paying out commissions on most of their subscribers. The failure rate for MLM’s shows us that most people don’t make many sales.
If you sign up three customers, you earn $20/month. I have no problem with that commission rate. Three customers would be paying a combined total of $147/month, which makes the effective commission rate 13.6%. It’s a far cry from some of the high commission rates that we’re accustomed to in the Internet marketing world, but I think it’s pretty reasonable for a residual commission on such a popular service.
In addition to Trio Pay, Solavei offers the ability to earn Fast Action Bonuses, Path Pay, and One-Time Path Bonuses.
Path Pay seems to be where the big money is made (see chart above). It is essentially based on the number of Trios in your overall downline. It seems pretty straight forward. For example, if you have a total of 100 Trios in your downline (with at least 8 in your personal network), you earn a Path Pay of $2000/month.
At first glance, that may not seem very difficult. After all, 100 Trios is only 300 customers, right? The problem is that the “failure equation” is built into the Path Pay too. Remember, we’re only counting Trios, not total customers. The odds tell us that most customers will fail to sign up a Trio under themselves. And among those that do sign up a Trio, there will be many who get stuck at 4 or 5 customers. Therefore you will have a large quantity of “orphan” customers who do not belong to a Trio.
So how many customers would it take to have 100 Trios? I really don’t know, but based on average failure rates for other MLM programs, it could be in the thousands. To get up to the 2000 Trio level ($20k/month Path Pay), it might take tens of thousands of customers.
Another phenomenon you will find in MLM, is that a tiny percentage of “superstars” make a lot of money. While the 99.71% lose money, and another 0.28% (my estimate) make a little money, there is 0.01% that makes a LOT of money.
For a funny look at this phenomenon, check out the 2007 movie Believe, which is a mockumentary poking fun at the entire MLM industry.
So you may be thinking, all you have to do is sign up a superstar in your downline, and you’re set. However, Solavei already thought of that too…
They enacted the 40% rule, which states “Beyond Social Partner, no more than 40% of the total Trios required to advance to a given rank can come from any single individual’s network.” With this rule, you could end up with untold thousands of customers in your downline that don’t count.
Is this really a new thing?
In my research I was reminded of Excel Communications, which was a long-distance telecommunications company that used MLM to market their service in the late 1980’s and 1990’s. They sold over 200,000 franchises through their MLM program, and became a highly successful billion dollar company.
I personally know people who were Excel resellers, and they weren’t making much (if any) money. But the MLM model clearly worked for the company, as they became the youngest company ever to join the New York Stock Exchange in 1996. I suspect that the MLM failure/success rate was applicable to Excel, with most of its participants losing money, while a tiny percentage raked in a fortune.
Interestingly, Excel also operated in a similar manner as Solavei, in that they didn’t own a network, but were reselling long distance service on other companies’ networks.
Eventually, Excel did acquire their own network, and were subsequently bought out by a larger telecommunications company. After the market conditions changed, Excel ended up filing for bankruptcy in 2004, and stopped paying commissions to its franchisees.
I’m not insinuating that something similar will happen to Solavei, but it’s something that needs to be taken into consideration. In general, it seems to me that MVNO’s are often not here for the long term. This can be seen by the number of defunct MVNO’s listed on Wikipedia.
If an MVNO isn’t successful, it goes out of business. I can only imagine how much it costs to buy mobile services in bulk. Needless to say, these companies have a lot of overhead. On the flipside, if an MVNO is highly successful it often gets bought out by a network owner.
So what happens if Solavei makes it big time, and T-Mobile decides they want to buy back that piece of the pie? Or what happens if another company buys T-Mobile and decides they don’t want to compete with Solavei? Of course it’s a little more complex than that, but there are a number of scenarios that could change the game and put Solavei out of business at some point in the future.
Why is Solavei different from other MLM companies?
In spite of what I would consider to be some shortcomings in Solavei’s compensation plan, there are some additional factors that still make Solavei an attractive opportunity to me.
One factor is the service they are selling. Unlike many MLM’s which sell supplements and other things that most people don’t really need, Solavei is selling a service that its customers are already paying for. As I explained above, the service itself is high quality (T-Mobile’s network), and their price point will enable most of their customers to save money.
Unlike most MLM’s, which encourage or require their participants to keep buying more stuff, Solavei doesn’t really have anything else to buy. There are no contracts with their monthly mobile service, so customers can leave at any time. If customers are happy with the service, they’re going to stay anyway. There’s really no pressure to keep buying anything.
I also like the emphasis on social sharing, and the web-friendly approach they are taking to MLM. I’m an Internet marketer, and while many MLM’s don’t want their participants competing on the web, Solavei seems to welcome it.
As actor Stephen Baldwin says in the following video, “instead of a thousand people becoming a millionaire, the idea is a million people can become thousandaires…”
Obviously, the idea of becoming a thousandaire doesn’t excite me, but I think it’s probably an accurate depiction of the program. Most people are not going to get rich with it, but a lot of people will make a little money.
My Personal Conclusions
Since I’ve decided not to use their service at this time, I signed up as a “Social Member Only”, which allows me to promote Solavei and earn commissions through their compensation plan. I don’t expect it to be a major income source, but perhaps it will at least compensate me for the time it took to write this article. If the results exceed my expectations, I will certainly post an update.
The cost of becoming a Social Member is $149/year. If you subscribe to their mobile service ($49/month), there is no need to pay to become a Social Member, as you can automatically enroll in the compensation program.
Do I recommend joining? It all depends on your individual situation. For the right person I think it could be a great opportunity. For those in areas where T-Mobile service is strong, it could result in easy sales. If it’s going to distract you from building your own business, skip it. If the idea of saving money on your cell phone bill and potentially making a little extra money each month excites you, try it out.
To learn more about Solavei check out these links…
Solavei Website
Sign Up For Service
Social Member Only
I hope you’ve found this review to be balanced and helpful. As always, you are welcome to leave your comments below.
Have a great day!
Written 11/15/2012
My wife signed up with Solavei and got her phone. The phone itself was good quality, but the reception over the country stinks. I drive a Truck over the road and I took her the Solavei phone with me for two weeks to see how it would work for us. I tried it everywhere that I stopped and there was only 2 times I could get enough bars to place a call. With my present carrier, I can get service almost everywhere. Needless to say we will not go with Solavie
Thanks for the review, but doubt if it will be available in Europe. Personally I can’t wait to get internet access via satellite.
Wow… Great article. Very informative. Things I didn’t even realize about Solavei you candidly pointed them out for me. I have been following you for a while now and while I appreciate your coaching and your teaching skills (and your sharing about trips to Israel… I truly enjoyed your family photos) and appreciate your honesty. This, by far, was the most impressive piece. All your information is well “thought out” which is like a breath of fresh air in comparison to most things that you read online. In most cases, you have to read several articles, in other words. You’re thoroughness and attention to detail is very much appreciated.
MLM = Members Losing Money….nuff said….
Hey Eric
I’m a long time reader and love your stuff. I actually got my start in mlm which led to me becoming an Internet marketer.
From my knowledge of the mlm world, that trio stuff sounds super crippling for a distributor. Also telecom companies historically have been flash in the pan – not saying this one is but something to think about.
If you’re looking at getting into a mlm there is a few cool ones out there and also support Internet marketers: Visalus (health product), numis (gold and silver) and empower network (more of an affiliate program where you make 100% commissions of up to 4600 bucks per a sale)
I’m an affiliate for the last one, but if you’re interested I know good Internet marketers who are in all of them.
Thought I’d share my 2 cents 🙂
By the way, awesome blog posts as always my friend. I think my first Internet product I ever bought in my life was from you – back when I was in 8th grade lol
Hi Eric. Thanks for covering this and letting us know what you think.
I have a moral opposition to MLM’s. Everyone below a certain level (very close to the top) are taken advantage of. There is no mathematical possibility of coming out on top of the money.
Also, as you noted, T-Mobile is rather weak in coverage and service. Good in a few high density areas. My first cell was T-Mobile, but it never grew in this area, so had to change.
What a great way to learn about MLM
Thanks for the feedback Curt!
Hi Elyse, it looks like you’re signed up with Solavie. Let us know how it goes for you.
Brilliant and thorough analysis. Very fair and balanced.
I’m in Solavei and can’t disagree with anything you said.
I have the same moral opposition to MLM’s in general, which is why I flat out said no to my friend when he mentioned it to me. But in my research it appears that Solavei is different because people at the bottom don’t lose.
Cool, thanks doc!
I just downloaded the movie Believe from Netflix and my family is in tears with laughter!!
I’ve always enjoyed MLM but never bought into the over hyped part of it. That movie is killer.
Yeah I watched it on Netflix streaming too! Some good laughs. But also sad how close it is to reality!
Hi Eric,
What an incredibly in depth review, and as you say, honest and very well balanced. I live in the UK and this service will not be available until early 2013, but I think it has great potential.
I am not sure why you think the income opportunity is so limited. The driving force for a customer is to receive there mobile services for free, (X number of recommendations that take up the service), and this will be repeated for each new recruit in your downline, so your network should grow organically, as will your income.
Each customer will be aware they need 3 members to benifit, but maybe people are lazy.
Question: Can you not place orphan customers into groups that need another member?
Maybe this should not be viewed as a great income opportunity, but a way to get your mobile services on the cheap.
Roger
Thanks for the review Eric, I looked into it,but couldnt get excited over the comp plan and definetly the coverage as i was in a 2g area as well.I think it may work for some and people can make noney on a service they already
are using, but its not for everyone for sure.
Great review Eric! A couple of things to note.
#1. I appreciate Solavei in that the social commerce approach rewards customers instead of going to wasted millions, maybe billions, of dollars in advertising.
#2. When comparing apples to apples because of the monthly rewards with Solavei it is a clear choice among MVNOs.
#3. Maria Pinchevsky, the head of customer service for Solavei, was previously over tmobile’s customer service before making the switch. Solavei is highly committed to quality customer support.
#4. The executive team at Solavei is top notch in the industry. The partnership between T-Mobile and Solavei is a unique/special one and Solavei is going to be one of the main areas of growth in T-Mobile’s 4th quarter.
#5 Last one: it is still very early in the launch of Solavei so it can be very profitable to those that jump on board if it’s right for them. The first month is free if you sign up before 11/30 so the risk is practically zero.
Thanks Roger,
I think you hit the nail on the head – people are lazy 😉
But I could be wrong about the income opportunity. If I start seeing money coming in and if I’m getting good feedback, I’ll definitely update my review.
Your question about the orphan customers is a good one, and I’m not sure about the answer. I would think they could be used to complete other broken Trios in your own network, but they cannot be moved from one sponsor to another.
No offence, but do you work for Solavei?
No offense taken Roger–I’m signed up for it like Elyse. I’ve researched it extensively and listened to the executive team podcasts, etc. I think the potential is big! Solavei rewards the customer.
I have been with Excel the tel company and others. I come from experience and would never be involved in an MLM I once downloaded a program that did not mention that it was an MLM program. I returned that. Ilike AT%T for my mobile devies. I found that AT&T works everywhere. I used to be a flight attendant flying intl and only AT&T worked for me all over the world. Only in some cities does AT&T not do well. However, I rarely visit those cities.Maybe inesting would be a better method than became an affiliate wiht downline members.
Thanks for the tips, and for your business 😉
MLM is just a business model – neither good nor bad in itself, but it still begs the question whether the service itself is worthwhile, and I’m afraid that for me, the answer is a resounding “no” when it comes to T-Mobile – and I don’t just mean their signal coverage, but also their customer service. I couldn’t honestly recommend them to anyone, so I’m out.
Eric ~
This is such a complete & thorough article on so many levels. I’m sure that it’ll be referenced & sent around the internet many times!
I was on board with Solavei since before they launched back in July. I was highly excited about the phone service because everyone needs phone service & it was so inexpensive.
But,then – I checked on the coverage (or the complete lack of coverage) in my area & decided the most important point of having a cell phone is how good the coverage is.
I finally decided that I couldn’t promote Solavei until they have a better network.
Thanks for putting up such a good review.
As aveteran of several MLM opportunities, the major difference I see here is the service may actually save you money. With most MLMs you pay a premium for the products such as your example of supplements. They also push meetings, tapes (sorry, CDs), conventions, etc which can get very expensive. Don’t know if that is part of their program also.
Hi Eric,
I wish Solavei would have gone with any of the other top 3. Reception from T-Mobile for us in small town just doesn’t work, and for friends I know that use it……..spotty reception. Really, if it weren’t for T-Mobile I might be interested. I am using Lightyear now which is an MLM that buys wholesale minutes from Sprint and Verizon. This works good for our family and we save around 30%. I pay $59 for unlimited Sprint data, talk and text……and I could build a business with it.
Thank you for the review. I have been sporadically looking for a few weeks to find a good review on Solavei and yours is the first really informative one I have come across. One of my relatives has become involved with it, and has overtaken my Facebook feed with her marketing efforts. I wanted to ensure she wasn’t in a bad scheme. I think she is getting her hopes up way too high but am somewhat reassured by your evaluation.
Great, well-thought-out and honest review, Eric!
I appreciate your taking the time to put this together in such a thorough and objective way.
Eric! How did you managed to get your banner on their home page about signing in to a guest book to answer questions? What is your true relationship and interest in this?
Eric, your review is thorough, well thought out and researched and deserves kudos on those points. For many years, I used ATT and was and still am pleased with the quality of the service, BUT two years ago, my phone died and I did not want to enter into a new service contract. I looked around and found that prepaid phones for all carriers were a better option. It is simply a matter of prepaying rather than paying after the service is rendered for the month. Not only is it a better value in terms of price from the carrier, you have no contracts to deal with AND all the taxes inherent with post-payment services are eliminated. All you normally pay are sales taxes on the prepayment amount, saving about $10. mo. I have used Straight Talk since leaving ATT. It has 4G and is reliable. At $45. for unlimited talk, text and web, it is a great value and it accomodates androids.
As far as MLM, I “hate” MLM. Unfortunately, there are far too many that want to “hitch their wagon” to someone who is successful and ride on their coat tails instead of taking the initiative CONSISTENTLY for long enough to build a business. Face it, like anything else, most people are just dreamers.
If I had the choice between building my own business vs. someone elses, i.e: Solavei, I will take mine every time. And because there are products in virtually every niche that can earn as much commission or likely much more than a new phone subscriber, I would not waste my time. I have owned and operated websites since 1996. MY first one started up so fast it was scary. I made a net of $30,000. the first month and did so consistently for 8-1/2 yr. till I sold it. I would NEVER be in any other business BUT I will I will NEVER focus entirely on the IM niche when marketing products, esp. drop ship is sooo easy, fun and consistently profitable. Look at Solavei and dream. Look at IM and do!
As I mentioned in the review, I signed up as a “Social Member”. The links in my review will give me credit if someone signs up through them.
There is some due diligence missing here Eric. The CEO is a scam artist with law suits!
No MLM artist is honest – they are ALL bad news!
Do some more research and give the full picture before you convince others to sign up so eagerly!
Why would you need “credit”? You have not even signed up for their service you said . . .
Interesting you you police the blogs to not include anything negative Eric!
As a Social Member I can still earn commissions, even though I don’t subscribe to the service.
I’ve always moderated my comments to weed out spammers and trolls. I’ve never been opposed to negative/alternate opinions, and I’ve posted yours along with several others above. What I don’t like though is anonymous users repeatedly posting the same thing over and over. So stop spamming my blog. I also checked all comments left from your IP address in the past and see that you’ve never provided any value to our community, but always only negativity. I think that says a lot about your character, and whether people should give you much credence when it comes to making money online.
Just because someone has lawsuits against them, it doesn’t mean they’re a scam artist. It might mean that, but it also might simply mean that they are a successful person that was targeted. Often the more financially successful a person becomes, the more lawsuits they encounter. I’m not going to defend him though. If anyone has FACTS about the case (not speculation) feel free to post them.
The CEO
Ryan Wuerth is now running another struggling company Solavei after he got
fired and sued from Motricity. The company and service might be alright, but
he is just another Wallstreet criminal. He shortsell all his stocks from his
company on Wallstreet and stole millions of dollars from his investors that
trusted him and now he got sued. What makes you think that he will not do it
again?
Eric, Your review of this product was very indepth, but at this time I’m not interested in T-Mobile Products. I don’t understand them and my focus is on something else at this time. I’m sure everyone who is interested will appreciate your honest review.
Your outlook on MLM opportunities got me to take a thorough look at what any new company that make use of MLM offers you. I came across Global One who seems to offer commissions every third day without the need of sponsoring anyone with their Spinfinity program. I haven’t made payment using the eWallet system yet as I am doing further research. Solavei sounds like most MLM opportunities out there except that you get network coverage at the same time.
Nice review but it is not really considered MLM. It is two tierer affiliate with bonuses.
Hope you get better coverage soon. I used to have no coverage with iwireless inside my apartment so it is better service.
Hey Eric,
Long time follower of your blog and tips and I’ve always respected your
Opinion and appreciate your tips. I’ve learned a lot from you.
I just wanted to add the fact that you didn’t include any information about
The Solavei Social Commerce network.
All members receive a money network visa card that Solavei is going to put
Back 50% of every dollar spent and distribute it to its members.
Solavei has agreements with all the big box retailers online and offline.
The buying power and possibilities could be super substantial as Solavei
Grows and could demand steeper and steeper discounts.
Also Solavei does intend to go global so the potential could be huge.
Just my 2 cents. Keep up the good work Eric and welcome to the Solavei
Family 🙂
-Marcel
Very interesting concept.. thanks. Hopefully they will put some money on my card so I can try it out 😉
Eric, what a well-written, thought through, review. If you didn’t make it in internet marketing, you sure could have gotten a job in product research/writing reviews!
I have been involved with Solavei a couple months, and loving it. At first I was very cautious about getting involved, because it sounded MLMish, but after spending some time looking at the business model and seeing the executive team that was behind the company, it was a no-brainer for me. The value proposition alone is attractive ($49 unlimited 4G voice, text, data). What I love is that even if (theoretically) the very last person on earth (or we’ll say the USA) enrolled in Solavei, it would still be a WIN for them (if they were looking for an unlimited plan). That is not typically true about MLM’s – if you are at the bottom of the totem pole, you are out of luck… nobody else to sell your lotions, potions, and pills to. With Solavei, there’s no pressure to keep up a quota or anything like that… just do what you are doing everyday… using your mobile phone.
My wife and I will save over $700/year on our cell phone bill. That’s a big deal for us…especially in the times we live in now, and the unsure economy of the future. And if all we did was save, that would be great, but on top of that, Solavei is now depositing money on our pay cards twice a month just for sharing the news of those savings. That’s the icing on the cake!
At first, I wasn’t too hot about T-Mobile (I am a long time iPhone loyalist, and AT&T customer). But I switched from my iPhone 4 to the HTC One S on Solavei and it blows my iPhone out of the water with data speed and processor speed. And then I discovered that T-Mobile is in the process of putting 4 billion dollars in network improvements – which includes “refarming” the major markets to be able to take on iPhones full speed and other AT&T phones that run on the 1900 mhz frequency. Some cities have already had the improvements done, and iPhones are running at 4G speeds. Then in 2013, TMobile is going to be rolling out LTE, which will allow me to get the iPhone5 and hop on Solavei full speed!
Lastly, I’ll add that mobile service is just the first phase of the Solavei. It is going to be a Social Commerce network that will have the leverage to “buy in bulk,” bringing prices down on a number of goods/services: Cable, Energy, Goods & Services, Insurance, Financial Services, Deals & Offers. This is the future of Solavei, and one of my favorite quotes is by John Rittenhouse, the COO of Solavei. He said, “Solavei is the modern day Wal-Mart story.” That’s a lofty statement, but coming from Rittenhouse, who was the former COO of Wal-Mart, that comment carries a little more weight. He knows what he’s talking about.
It’s not a get rich quick scheme. Solavei is making commerce less expensive and even profitable for the consumer. That makes sense to me.
For what it’s worth, here is Ryan Wuerch’s statement about the lawsuit: http://ryanwuerch.com/about_motricity/
Thanks for the Review Eric:
I bought into soalvie like you, as a social partner. I live in Canada where the service is not yet offered, but my thinking with the internet, it’s not too hard to focus your marketing on existing market reach. I have found it not as easy to sell as it appears. A few years back I worked with a company that was establishing an MLM of their own. I did the graphics, websites and managed the network. What I learned from this experienced double diamond top of the heap MLM’r for CellTech, was that yes there are people who do get some nice paychecks. I know because I saw them com in. He had not done anywork with celltech for 2 years and was still getting paychecks for over $40K a week. Not bad. I learned his marketing techniques and how he did what he did and quite frankly, it’s NOTHING like any of the MLM companies out there train their people to do. I’m discovering that’s very similar to affiliate and online marketing. What the “sellers” sell you and what they actually do seems to be two different things. If you want to learn the inside scoop, now you’re talking thousands of dollars. So in a sense that’s just as much of a scam as MLM.
Like you, I’ve had an aversion to MLM’s since my one and only bad experience a few years back. YOu’re right, the only people making money are at the top, the pay scale is actually designed for high failure rates. If it weren’t the guys at the top wouldn’t make millions.
I bouth into Solavei for exactly the same reason you did. When it finally comes to Canada (where cell phone fees are well ver the $100 mark on the cheap side) and all companies demand a 3 year contract…it will be a no brainer. I’m doing marketing into the US an premarketing for Canadians…or anywhere for that matter. I’ve just started so my results are dismal at best. We’ll see…that’s all I can say.
Your review was very unbiased and well researched. Thank you for doing all that legwork and so willingly sharing it.
Hey Eric, This blog is a business tutorial in itself!
I found your review about Solavei really helpful – not just from the business opportunity, but also your insights about MLM. It’s been a great help in putting the puzzle pieces together.
One thing I find intriguing post Panda/Penguin, et al, is the number of successful, seasoned marketers returning to MLM roots (not talking about yourself). I have had at least 2-3 MLM products presented to my email inbox for consideration. Perhaps it isn’t all bad?
Brian, you would not be dealing with T-Mobile’s customer service. You would be dealing with Solavei’s customer service, which is excellent.
They have worked through the difficulties of pre-launch and devised methods to take care of handling customers’ requests in the shortest possible times. All reports back that I have seen are that customer support is friendly and very helpful.
A chunk of customer problems has been due to customers inputting incorrect information about their phones causing the phones to be blocked from activation.
I am a Solavei customer and love my service and love being part of the company.
Thanks, Eric, for an honest and fair review.
I love the IDEA of multi-level marketing… it’s not that much different from a traditional sales organization. However, I cringe whenever I hear the buzz words and phrases that they all use: “this is going to be big”, “groundfloor opportunity”, “sells itself” etc. The fact is that MLM’s are hard and you have to be a great salesperson to succeed, you also typically need some cash up front and on a monthly basis for membership/back office fees/minimum product and more. The other thing that caught my eye was the sentence “On November 13th, they announced that they were up to 65,000 members, and had paid out over $1 Million in commissions to its members.” – That’s only $15.38 per member!
Admittedly, I didn’t read the entire article or visit the Solavei site. But, I just wanted to point out a couple of things that I’ve learned over the years. Good luck.
I knew a little about Solavei, I now believe that I know a great deal more. I think I just read a great analysis. I appreciate your work.
Thanks-well done. I’ll bet it took more than an hour to do it.