Solavei tops 65,000 subscribers in first 6 weeks, pays out $1 million

Solavei, a controversial new mobile phone service that rewards customers for signing up friends, co-workers and relatives, is gaining traction.

CEO of the company while addressing to conference said that:
more than 65,000 people have signed up for the $49 unlimited voice, data and text service plan since it launched on September 21. As part of those sign ups, the company also announced that it has paid out $1 million in member commissions.

Controversial model that rewards customers for essentially becoming the boots-on-the-street marketing department. (Readers have debated the merits of the company’s business plan at length, and there are no shortage of critics of the Solavei model).

How it actully work:

Users who sign up for Solavei earn money for each new customer they recruit. Recruiting three new customers, dubbed a “Trio,” earns users $20 per month. Three trios, or nine new customer additions, equates to $49 (or the cost of one’s monthly service).

As we noted a few weeks ago, the company also is drawing on celebrity endorses and member testimonials to draw interest in the concept. The message has the feel of a late-night infomercial.

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