Carlos Costa, one of TelexFree's three owners, recently published a video detailing a "perfect strategy" for the company's marketing plan. The presentation aimed to clarify the compensation structure, which has left many affiliates uncertain about its mechanics and investment requirements.

Affiliates typically adopt either a three or five-position approach within the company. A minimum of one primary and two secondary positions is required to qualify for commissions. Under this system, TelexFree pays $100 weekly on the primary position, provided enough new positions continue to be purchased by other affiliates. The five-position approach mirrors this but layers a second primary position under the first, demanding a larger initial deposit from participants.

Costa's video shows him using pen and paper to walk viewers through the three-position strategy. He did not explicitly tell affiliates to fund these positions themselves. Instead, Costa promised participants "a return greater than your own investment." During this explanation, Costa omitted the previous requirement to sell VOIP services to retail customers, a long-standing facade of the business model.

Costa outlined a projected $759.88 return on investment (ROI) for affiliates who follow his strategy. His calculations, however, did not account for TelexFree's classification as a passive investment. This omission requires an additional $49.90 for positions A and B, which are necessary for commission qualification. A further $399.20 ($499 minus $49.90 multiplied by two) also applies. The ten mandatory VOIP positions appear to remain in effect, contrary to some interpretations of the latest compensation plan changes.

Factoring in these unmentioned costs, the true return shrinks significantly. Subtracting $499 from Costa's $759.88 leaves $260.88. After a $19.90 administrative fee, an affiliate's actual return on their "investment" totals $240.88. This figure is substantially less attractive than the one presented.

The second half of Costa's video focused on recruitment. He assumed that positions "A" and "B" would be filled by newly recruited TelexFree affiliate investors. He then projected what would happen if these affiliates each recruited two new affiliates every month over a "12 month contract period." Costa calculated that a continuous chain of recruitment, where each affiliate recruits two others, would yield $83,520 through TelexFree's binary compensation plan component, before ongoing affiliate fees. This strategy relies solely on recruitment activity. It requires affiliates to buy one VOIP package with their own money, but otherwise, it demands only the continuous enrollment of new participants.