In a recent announcement, a Seattle start-up mobile phone company called Solavei recently unveiled its multi-layer marketing plan to offer a $49/month, unlimited-calling service that utilizes T-Mobile’s 4G network.
So far, the start-up has managed to garner $7.7 million in its coffers from such big-time players as former CEO of AOL, Jonathan Miller, David Limp, VP of Kindle at Amazon.com and Oklahoma petroleum exec Gary Adams with plans to add another $7 million in the future.
Solavei is not the first communications company to offer a premium to existing customers who recruit new subscribers — DirectTV has offered a $50/month per new subscriber benefit for at least a decade — it is the first communications company to virtually eliminate any sort of “cap” on the amount participants can potentially earn by doing so. (DirectTV’s maximum was $100/month.)
According to Solavei’s informational webpage (http://www.mobilephonebizopportunity.com/solavei), they offer $50/month for the first three “friends” (called “trios”) that subscribers can sign on to the plan and $20/ month for each new “trio” that signs on with the original subscriber or any of the original subscriber’s friends (called a “personal network”), thereafter. At “6 trios” (120 new subscribers), that amount goes to $1,000/month and at “30 trios” (6,000 new subscribers), the offer jumps to $20,000/month. Solavei also offers one-time “path bonuses” when subscribers enter the first level of each tier of the 3-level, 5-tiered “achievement path”.
While some customers’ present GSM Smartphone equipment will be able to switch to Solavei for a one-time fee of $29 for a new smartcard, for most, it will be necessary to purchase one of the company’s compatible phones. Some of the models that meet the technical specs for Solavei include the Google Nexus, the Samsung Sidekick, Gravity, Galaxy, Exhibit and Dart models, several HTC models such as the Optimus T, Sensation, myTouch and Amaze and the Motorola Defy and Cliq models, among others. In any case the device prerequisites are: Android 2.2; AWS banded Smartphone (for 3G/4G usage), no slide-out controls (application is kept in portrait style) and no Blackberry.
To claims that this multi-level marketing approach (also called “social marketing” by some) is nothing but an elaborately-disguised “pyramid [or “Ponzi”] scheme”, CEO White says “not so” and adds: “If you are a multi-level marketer, there are some rules you have to follow. . . we will follow all of those rules that apply to us.”
CEO Wuerch adds: “Solavei is the first company to create an economic linkage between mobile service, social commerce and social-networking technology.”
The innovative Solavei is being led by former Motricity CEO, Ryan Wuerch — who stepped down after Motricity’s earnings in July — and former Republican Congressman (1995-1999) from Washington State’s 1st Congressional District, Rick White, who served on the Energy and Commerce Committee during his tenure and who is perhaps best known for his ties to the “Christian Coalition” and his sponsorship of the “Internet Protection Act”.
Solavei employs approximately 140 full-time employees and contractors. It tested its network with about 2,000 units for approximately 60 days and claims that 30,000 people have pre-registered for the service
As with just about any carrier, you can find positive and negative feedback regarding Solavei around the Web. I highly recommend, if you are contemplating a change in your cell phone company, that you thoroughly check out all of the possible alternatives available and compare them for network reliability, quality, coverage, price and other parameters according to your particular priorities.
