Founded by James Merrill and based out of Marlborough, MA, TelexFREE offers VoIP services across the U.S., Canada, and 40 other countries around the world. In addition, their network marketing (also known as multi-level marketing) program gives you the ability to earn money by simply placing ads on free classified sites each day.

Even though TelexFREE has been in business since 2002, they do not have a Better Business Bureau rating, and legitimate online customer reviews are limited. This is primarily due to the fact that they’re most widely known for their network marketing service. As a result, most “customer reviews” are simply marketing materials focused on signing people up.

With this in mind, common complaints about TelexFREE include claims that the company is basically just a big pyramid scheme, and references to their ongoing legal problems in Brazil.

How TelexFREE Works

TelexFREE specializes in providing Voice over Internet Protocol (VoIP) services, which in layman’s terms, is essentially just making calls over the internet. In order to use their services, you’ll need to download the TelexFREE software, which will allow you to make calls (including conference), chat, conduct video calls, send files, and even share screens. Before doing this however, you’ll have to register for an account. As such, there are two different types:

  • Customer – With this plan, you’ll use TelexFREE’s software to make VoIP calls, message other users, as well as make free customer-to-customer calls. In addition, you’ll be able to talk with landlines and cell phones in the U.S., Canada, and Brazil at no charge.
  • Promoter – We had to do some research about this program, as the TelexFREE website provides very little information, and is also poorly written. But after some digging, here’s what we found out: Within the Promoter program, you’ll be required to choose an “Adcentral” Individual or Family account, and pay the associated fee (more about this in the following section). For that fee, you’ll be required to post TelexFREE ads on online classified sites, and will then receive weekly compensation for these ads. Here are the requirements:
  1. Adcentral Individual – Post one ad per day
  2. Adcentral Family – Post five ads per day

While this may seem simple enough, there are multiple red flags that you’ll want to keep in mind prior to handing over your hard-earned money (see Bottom Line section for details).

TelexFREE Programs, Pricing, & Refund Policy

If you plan on signing up with TelexFREE as a customer, you’ll pay $49.90 per month. If you’re planning on signing up as a Promoter, the fees are as follows:

  • Adcentral Individual – $299 to sign up, and earn $20 per week throughout the year.
  • Adcentral Family – $1375 to sign up, and earn $100 per week ($20 per ad X 5 ads) for the entire year.
  • In addition to passive membership, you can also work as an active member and recruit others to join your team. Once this occurs, you’ll earn $20 for every individual package that one of your team members purchase, and $100 for every family package.

From a consumer perspective, based on TelexFREE’s Terms and Conditions, you must provide a valid credit card in order to sign up. However, if you’re unsure about the company’s services, you can sign up for their free 1-hour trial to test it out.

If you cancel your TelexFREE services within five calendar days, you’ll be given a full refund. Anything outside this time will be handled on a case-by-case basis.

Pros:

  • Ability to call more than 40 countries using VoIP for just $49.90 per month, with no contract.
  • Can also earn additional money by signing up as a promoter and posting daily ads on free classified sites.

Cons:

  • Limited legitimate online reviews. Also, no BBB rating, even though the company has been in business since 2002.
  • Most common complaint is that TelexFREE is simply a pyramid scam or ponzi scheme. In addition, the company appears to have ongoing legal problems in Brazil, which is the country where they last conducted business.

Bottom Line:

When it comes to TelexFREE, we would recommend being careful. While their VoIP services appear to have a relatively positive reputation, their network marketing program has received fierce criticism, including claims of being a pyramid scheme. In addition, it appears the company has severe ongoing legal issues in Brazil, where it last did business. On top of this, their website is outdated, and appears to have been written by a non-native English speaker, despite being based out of Marlborough, MA. And when we take all these as a whole, we’d recommend finding some place else to invest your money.

However, if you decide to sign up as a Promoter with TelexFREE, make sure it’s with money you can afford to lose.