LightYear Wireless MLM

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

LightYear Wireless MLM

If you Google Lightyear Wireless, you will get 400K+ entries. Everyone looking for instant riches via multi-level marketing is looking at Lightyear's new deal to deliver cellular services via Verizon Wireless. Telecom folks don't pay attention.

This is an MVNO deal, which is when a provider buys cellular minutes and resells it under its own brand. PNG tried this. Even Embarq quit being an MVNO. Earthlink and SK Telecom dumped $275 Million into Helio before it was sold to Virgin for $39M in stock.

Two of the biggest brands - ESPN and Disney - both launched MVNO projects and closed them.

I understand that people buy into MLM schemes - Amway, Talk Fusion, YTB - because everyone wants a shortcut, but the money just is not there. Handset fulfillment on top of billing and marketing make it an uphill battle. And how do you pay up to 10% of monthly compensation?

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Mainly, I think the money will come from "agents" paying to be an agent. That's right, you have to pay to sell Lightyear Wireless and pay (like $39 per month) to have a website to sell LYW on. (You can see the whole compensation plan on video here - while it lasts). LYW also has to come up with cash to subsidize the handsets for its customers.

If you really want to sell cellular, why not become a VZW agent and get paid $250 per contract? It would be easier. $1 per month per subscriber is not going to make you rich, especially when paying monthly for the opportunity. And especially when most of the MVNO's fail.



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