TelexFree is registered in the state of Massachusetts formerly known as Common Cents Communications Inc. The basic concept of TelexFree is a $49.90 monthly subscription that gives you the ability to call people in 40 countries world wide. Basically the same as Skype which costs less than $20 a month. Additionally TelexFree has contract purchases for advertising. You can purchase a contract for $299. Then you place 1 ad per day on free classified sites and the company pays you $20 per week. Or you can purchase the family pack for $1375 which allows you to place 5 ads per day and earn $100 per week. You can purchase 10 family packs placing 50 ads per day earning $1000 per week.
Okay so that’s the quick overview. TelexFree sells a service that is basically the same as Skype unlimited world wide plan for $49.90 per month. That has nothing to do with how you earn money. You don’t receive commissions on that product. Instead you pay $299 and get $20 per week for “placing Ads” or you pay $1375 and get $100 a week for “placing more ads”. What they are saying is that you are buying a contract to be paid as an ad placer for TelexFree. Additionally if you recruit others you will earn more with the binary compensation plan.
Straight up TelexFree is a Ponzi Scheme! Forget the bogus stuff about placing ads. It’s money coming in to pay out to previous investors. Not only will TelexFree have issues with the FTC for being a Ponzi Scheme they will most likely draw attention form the SEC (Securities Exchange Commission). They are taking your money and guaranteeing you and increase. That is a huge problem with the FTC. Other opportunities have been shutdown by the SEC for simply guaranteeing double your money back if you don’t make money. Taking money and guaranteeing a profit is a violation of SEC regulations.