Solavei Review: Scam or Great Deal?

Solavei ReviewThis Solavei review isn’t written to try to convert you or win you over, but just an objective overview of what Solavei is, cutting through the marketing gimmicks and giving you the bare facts. I came across Solavei through a friend and it seemed like an interesting concept, so I thought I should write a Solavei review and share with my readers.

What is Solavei?

Solavei is a Seattle based start-up backed by some heavy names, led by former former Congressman Rick White and former Motricity CEO Ryan Wuerch. It counts several tech names as investors, including the former CEO of AOL and vice president of Kindle at Amazon.

Essentially, Solavei is a way for you to get mobile service for cheap in the United States (sorry other readers!) and probably soon in Canada. For $49/month, you get unlimited text, calls and data on T-mobile phone service. The best feature? No contract! This is huge for people in the US who know how annoying a two year contract can be. Also, at $49/mo, this is cheaper than most other services. For instance, I pay around $75/mo for my Verizon service.

So far so good. However, this is available as a regular deal on T-mobile as well. You have to pay a one-time fee of $49 if you go through Solavei and not through T-mobile directly. So why would you want to do that? Earning potential.

Solavei works on a multi-level marketing basis which means if you refer friends or others and they join your network, you get paid. This can be great, or at the same time, awful. Personally for me, $49/mo is a great deal for unlimited voice and data, but I don’t want to go out and shout about this to all my friends just yet simply because multi-level marketing has such a shady reputation. I don’t know which category you fall under. However, I don’t want to bias my Solavei review with a multi-level marketing review, so I’ll leave that up for discussion in the comments.

Is Solavei a Pyramid Scheme?

It is actually hard to tell, because the company is so new. However, it has already raised $3.6 million, so I don’t think it is going to the ground anytime soon. The business model actually (and surprisingly) seems pretty legit. $49/month for unlimited talk, text and data is a good deal no matter what. Even if you strip away all the other ‘make money referring your friends’ part of the business, this is still a good deal. Period.

Up to now, it doesn’t seem that Solavei is a pyramid scheme. The main problem with real pyramid schemes is that it is usually very hard to tell until it is too late. However, in this case, your downside risk is very limited – the most you can lose is getting a $49/mo phone connection which isn’t shabby at all. At this point, my Solavei review research doesn’t give me a strong reason to believe that this is a pyramid scheme. There aren’t any ‘obvious red flags’ in my eyes yet.

The above being said, I am not sure how the money is coming into Solavei. If T-mobile offers essentially the same deal directly, then they cannot be making a ton of money off of each deal. They are promising a generous payout for the members which seems to exceed the economic success. I don’t know if they are using the money they got from venture funding to provide this payout – in that case, it is definitely a pyramid scheme and you should steer clear. If you have more information about this, I would love to hear.

Is Solavei Scam?

Solavei doesn’t appear to be a scam. They have raised money and have some good entrepreneurs backing their venture. If this catches up, it can be huge. There is good potential in cheap phones without contracts in the United States and Solavei fills a nice gap that consumers have always wanted. Again, I don’t know how the payout is going to be sustainable – if it is not, then it is a very bad deal but if it is, I think that’s a sweet deal (read the paragraph above).

In my view, if you are serious about MLM or just want to save some money and probably think about referring friends and family in the future, Solavei can actually be a good deal. Remember that this is a T-mobile reseller, so it doesn’t matter if the company fails tomorrow (I hope it doesn’t, but I am just stating your downside risk) because you still have your phone connection (sans the promises of becoming a thousandaire!)

Again, you don’t have to join Solavei for making money. You can just join it to get a good deal on your phone, and if things work out, you might just make some passive income on the side when you refer friends. If not, you got your great bargain anyway. I want to base my Solavei review on the fact that there is limited downside risk and very good upside potential, which is always something to consider as good.

Solavei for Marketers

Like it or not, Solavei is an MLM which means if you are a member, you join under someone. Hopefully, that someone is co-operative and honest with you about the income potential of referring people. I won’t go into the details of the Solavei compensation plan, but you can get the details here. As they advertise, if you refer 3 members, you earn $20/month (this isn’t too hard if you think about the utility of cheap phones without contracts); if you refer 12, you earn $60/month (enough to cover your phone bill and save more). You don’t have to refer them all directly – your referrals can refer their friends and you still get full credit for them. This is just from your immediate network – you earn from your extended network as well. And there are bonuses for signing up people within 90 days.

I don’t want to dilute the Solavei review with details of Solavei compensation plan (May be I’ll it later on) but suffice to say that it is interesting because you get paid every month – it isn’t a one time payment.

Success in making money with Solavei should be interesting as the company grows because it genuinely addresses a problem that people have, which is getting rid of contracts on their phones and getting good deals for their talk, text and data. I think it is well positioned to capture a good segment of the market and seems promising. It is too early in the company’s history to tell, but for marketers, this is actually a perfect time to get started because the market is so open and far from saturated.

What are your thoughts about this? What do you think about this Solavei review and what do you think about Solavei as a company? Do you think it addresses real problems or do you think it is just another scam? I would love to hear your thoughts in the comments section.

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