TelexFree Review (2022 Update): Everything You Wanted To Know!

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Updated: November 11

By: Scam Risk - Expert Reviewer

TelexFree Review

Today, I’ll tell you about the biggest Ponzi scheme recorded in the USA, which was known as TelexFree.

Find out how exactly this company scammed tens of millions of dollars from its members.

But before we get to that, here’s something you need to know…

DISCLAIMER:
This TelexFree Review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.

Table of Contents

Pros: What I Liked

  • Justice was served on TelexFree for wire fraud conspiracy.
  • James Merrill was charged to pay billions of dollars.
  • United States District Court has found them guilty.
The Good

Cons: What I Didn't Like

  • Considered the largest pyramid scheme in the USA.
  • MLM receives a bad rep because of pyramid schemes.
  • A big class action lawsuit was filed against TelexFree in 2021.
The Bad

Chances are you heard about TelexFree because someone-a friend or family member-introduced you to the company. Maybe you attended an online workshop or webinar, or maybe an in-person information session.

Your head’s probably spinning. This might be the first time you’ve heard about a real way to make money outside of a typical job.

So first off, congratulations!

You’ve just entered a whole new world…the world of making money on your own terms.

However, you came in through the wrong door.

Because TelexFree is plain and simple-an MLM. Throw whatever fancy name you want on it…multi-level marketing (MLM), network marketing (NWM), direct sales, or anything else, it’s the same concept:

You pay some money upfront for the “opportunity” to sell products.

The products are typically low-quality but with high price tags (because of fancy labels and stuff).

You’re told that the key to building your own successful business is selling these products to friends and family and getting them on a subscription (so you get “monthly recurring revenue”).

Unfortunately, like most people who get taken in by these types of schemes, you’ll quickly discover that the well runs dry faster than you imagined.

After all, they make it sound really simple. “Just get 5 people you know on this magic widget, and things will just grow from there.”

And in your head, you think, “How hard can it be?” I know plenty of people; five will be easy.”

But then you do it, and you realize people look at you like you’ve joined a cult. You’ve become “that person” who joined an MLM and is now trying to sell questionable products or services to everyone they meet.

It puts a strain on your relationships, and you end up stuck between two worlds.

But it’s not your fault. These companies spend millions of dollars each year figuring out exactly how to brainwash and recruit people. And that’s why we’re here.

To help you find a better way before it’s too late.

So, what if there was a way you could build a passive income stream that’s actually passive?

An income stream that doesn’t require:

  • Inventory
  • Selling to friends and family
  • Selling to strangers
  • Recruiting people
  • Dealing with questionable products that weigh on your conscience

An income stream that brings in consistent revenues every single month (from a couple of thousand dollars to well over $10,000)?

An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day chasing, selling, or managing anything?

If that sounds like something you’d be interested in, check out Digital Real Estate. 

TESTIMONIAL - STILL GETTING PAID

This is nothing like MLM, and that’s probably a good thing.

However, if you’d still like to know more about TelexFree, keep reading.

TelexFree In 2012

TelexFree

TelexFree was an internet phone service company that once offered their ad postings for as little as 3 dollars.

They also have an MLM program that lets people get started on selling their products for a commission by becoming TelexFree assets.

What they claim is that with them you are guaranteed to make money which later on was discovered to be a big pile of crap.

  • The Men Behind TelexFree

    James Merrill
    Before TelaxFree was TelaxFree, it was once known as Common Cents Communication, but no one really knows why. However, that’s not the point.

    James Merrill is the person we’re about to talk about. How this man suspiciously climbed the ranks.

    From being the treasurer of CCC, James somehow became the founder when they decided to rename it.

    What’s weird about this is that even though he was named a founder, his name wasn’t exactly registered as one. Instead, Carlos Wanzeler was the one listed as president.

    This alone was probably the red flag the members should have known to figure out that something was fishy about this MLM company.

  • How Did They Work?

    TelexFree, like any MLM company, offers people the opportunity to become part of their company by selling TelexFree accounts and recruiting members.

    Of course, as per the rules of pyramid schemes, earlier participants did make a profit with them, but after that people started to lose money.

    Meanwhile, their telecom services were mainly focused on Brazil, which is why it was the Brazilian authorities who found them out.

  • What Did They Sell?

    Telecom
    In the “customer” part of their website, TelexFree promotes a service they term “99TelexFree.”At $49.99/month, 99TelexFree is a telephone service that offers

    • Mobile-to-mobile calls between Vivo, Claro, Tim, and Oi (Brazilian carriers) are free.
    • Brazilian landline calls are completely free.
    • American and Canadian mobile and landline calls are provided at no cost.
  • How Much Did It Cost To Join?

    Back then, to become a “business partner,” TelexFree would ask new members to pay $299, and existing members had the option of purchasing up to four additional membership spots for $269 per position.

    From that, we can now understand how the TelexFree upper-ups bagged and ran with millions.

The TelexFree Ponzi Scheme

Pleading Guilty For TelexFree Securities Litigation

In 2021, TelexFree was found guilty of conspiracy, embezzlement, and wire fraud by the Justice Department after scamming almost 3 billion dollars from its members.

James Merrill is now in for six years while Wanzeler ran off to another country. And $23 million worth of claims are now being paid by Fidelity Bank.

This is a lesson for those who are looking for money-making opportunities: always thoroughly research a venture before diving into it.

Remember, you are responsible for making sure you are making a good investment.

Is TelexFree A Scam?

Scam Boston Globe

So, is TelexFree a scam?

Not technically. You can make money with this program, but it’s definitely not as easy as the company makes it sound.

There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual commissions are pretty small.

Now, there’s nothing wrong with front-loading the work and making the money later.

But if you’re grinding it out for 3 months and then your reward is a $50 commission, it’s not really worth it.

What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?

And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?

And what if you could double it next week?

Well, that’s the power of Digital Real Estate

And, unlike an MLM, you can legitimately do this from anywhere. It’s a true lifestyle business.

Your laptop and an internet connection is all you need.

Some of the most successful students in this program run their entire 6-figure businesses from:

  • A camper in the middle of the woods
  • A beach chair on the water in Mexico
  • A small villa in Greece

TESTIMONIAL - SAYING GOODBYE TO OUR JOBS

They’re able to travel around, living their lives first, and focusing on their income second.

Because even if they stop working for an extended period of time, the money keeps coming in.

So adventure, memories, and experience are the top priority.

And they never have to worry about how to pay for the next trip, or consider asking for time off.

If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.

Are There Any Alternatives To TelexFree?

are there alternatives

Yes, there are plenty of MLM companies to choose from if you want to pursue this business model.  Here are just a few:

What Is My Top Recommendation For Making Money From Home In 2022?

Digital Real Estate

Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.

While there may be no “perfect business”, the research IS conclusive:

Digital Real Estate is the #1 online business model for those just starting out.

Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.

Why?

1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.

And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.

Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.

This is only possible if you have an income stream that’s not tied to your time.

TESTIMONIAL - JUMP ALL IN

2) You Own & Control EVERYTHING: With MLMs and Network Marketing, you don’t really own anything. You have no control over the quality of products. You don’t even own your “team”.
Look at the fine print for most of the agreements folks sign when they join one of these companies. At any point, the company can change your commission structure, reduce your profit margins, or kick you out entirely.
With Digital Real Estate, you own the assets, which means you have all the power and all the control.

TESTIMONIAL-FEELING-BLESSED

3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.

Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.

TESTIMONIAL-SCOTT-LEAD-GEN

4) No Inventory: Alright, so most MLMs don’t make you buy the products and fill your garage with them anymore (unlike the good ol’ days), but you’re still in a physical products business.

And physical products always have physical limitations. Even if you don’t have to manage the inventory, you still have to deal with supply chain shortages that cause major delays.

Imagine finally landing your first customer, and then losing them after one sale because they had to wait 6 weeks to get their order.

With Digital Real Estate, a 100% online business, you never even have to think about that risk.

TESTIMONIAL - ANNA DONE DEAL

5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).

Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.

Because you have more knowledge, more experience, more results, and more momentum.

If you wanted to double your income with an MLM, you’d have to double your customers OR double the average order size of your existing customers. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.

Lance Lead Gen

6) Make Money Helping Real People: This part is what makes it all worth it. In an MLM, your “upline” might convince you that what you’re selling improves people’s lives, but deep down, you likely know that’s not true.

Most of the time, you’re either selling a dream or a poor-quality, overpriced product with a fancy label.

And that makes it pretty hard to sleep at night.

But with Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:

Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.

You make money by helping them make money.

Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.

Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.

TESTIMONIAL-BOSS-OF-MY-FUTURE

Now, the choice is yours.

You could continue browsing, looking at opportunities like TelexFree which could one day make you money.

You could continue researching, never making a decision.

OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.

A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.

All while genuinely helping real people who are grateful and happy to pay for it.

If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.

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