Ok, TCEd needs to get on the road. Let's break this down:
The entire business plan relies on the continuous flow of funds upstream from the recruitment money, as it far exceeds any potential residual revenue from customers, especially at the RVP level. The business plan also relies on the high drop-out rate of recruits.
The enrollment fee of $499 is divided among the up-line as bonuses. This money is cleverly disguised as a Customer Acquisition Bonus when that new Rep becomes qualified.
Meanwhile, you need
256 reps in your downstream to reach level 7. And all of those 256 reps are trying to get 256 reps in their downstream.
Let's take a look at how one acheives $100,000 in residual income per annum:
(Source: the link you like.)
Take an example of 20 direct customers.
You will have one Rep for every 20 customers.
With your direct billing at $600 (30 bucks a month estimated telecom resale billing times 20) your commission is 2%
Commissions are 1/4 of 1 percent (0.0025) on your downline's customers 5-levels down.
(That's 7½ cents per customer!)
Calculate the balance of customers required in the downline.
$100,000 - (20 x $360 x 0.02 = $144) = $99,856 income required from downline.
$99,856 Ă· 0.0025 (1/4 percent) = $39,942,400 annual billing.
$39,942,400 Ă· $360 =
110,951 downline customers
All I need is
256 reps and
110,000 customers in my downline and I can make a living. Meanwhile... for every 256 reps...there is only ONE of ME. And 255 downline suckers.
But hey. It's just a guess.