TelexFree recently announced changes to its compensation plan, following Massachusetts' confirmation of a US investigation and SEC subpoenas issued to company officials. The revised structure replaces the previous model, which promised a $20 weekly return on a $289 investment, with a significantly more complex system.
The previous plan offered affiliates a $20 weekly return for one year after a $289 investment per "AdCentral" position. The company maintained this was "absolutely not a Ponzi scheme" despite the new announcement. The timing of the changes, coinciding with regulatory scrutiny, suggests a hurried assembly.
Under the new AdCentral investment scheme, affiliates must first qualify as a "Family" member. This requires selling ten VOIP packages, each priced at $49.90. Once qualified, a Family affiliate receives $100 per week for their initial 30 days.
After the first month, affiliates wishing to continue earning $100 weekly must achieve "AdFamily Plus" status. This status demands three conditions: posting five TelexFree advertisements daily, maintaining at least five active VOIP customers at $49.90 each per month, and recruiting two new affiliates. Each recruited affiliate must also maintain five VOIP customers paying $49.90 monthly.
Affiliates who fail to qualify for AdFamily Plus revert to "Family" status. They then earn $50 per week instead of $100. These Family affiliates still need to post five TelexFree ads daily to receive this reduced commission.
AdFamily Plus affiliates also become eligible for referral commissions. They receive 2% of their downline's earnings from the AdCentral investment scheme, payable down through six recruitment levels. A bonus of $10 is paid to an affiliate when someone they personally recruited qualifies as a Family affiliate.
The company has not released official documentation for these new compensation plan details. Industry observers noted the plan's complex nature and rapid rollout, particularly given the concurrent regulatory actions.