Complaint Review: Yor.net 2By2.net IXP.net - Taylor Mill Kentucky

If you are reading this, go ahead and google IXP.net and 2BY2.net and look at those horror stories. This is the same company and the same people, I have talked to them myself and they event old me they worked for IXP.net. You will easily be able to see that this entire business is a quasi-pyramid scheme.

This is specifically driven toward the operation in Taylor Mill, KY. I write this report so that ** will pick up some more names that are included in this scheme and so that others may be educated.

Yes, I'm sure these people will tell you that you can make money by going through and you CAN, but after you quit college, your job, and sign all your friends and family up for this program, you will have no money, no education and no one will respect your profiteering style or enthusiasm. Please, please do the math, it will only take you a little time:

Math:

You have to get 10 customers to get 40% of the PROFITS. Corporations don't even have to make profit, technically, you could owe them money. Personally, I don't think anyone could single handedly get more than about 100 constant customers since V** is already cheaper off the batt because their installation, box, and everything is free, not to mention people will ultimately quit and join all the time.

Yor.net charges $22.95 a month which sounds nice. Also they had within THEIR slide presentation that by 2008, there would be 17.5 Million VOIP customers in the US. They claim they only want to get a piece of that and everyone will be rich.

Let us assume that you spend all your time getting these customers and getting more representatives. (Note: They say there were about 1000 representatives that went to Mexico and everyone paid thier own way even though there are plenty of *rich* people that could have paid for them.) You also get a percentage of the representative's customers monthly income of 5%. Sounds pretty good right? Millions of customers, lots of money being distributed.... They talk about looking at the LONG TERM benefits of joining, lets go over our assumptions:

1. You have 100 customers, you are pretty good at getting people to buy stuff.

2. You have 9 representatives under you that all have 100 customers each. You have helped your "team" succeed at telling people you reinvented the wheel (telephone).

3. Assuming after taxes that the most profit margin (what is left after costs, overhead, taxes) that Yor.net could achieve is 10% since one of the most sucessful car companies in the world is Toyota and they don't even make 10% profit margin. Once again, Yor.net doesn't even need to make money, most new businesses do not.

4. Selling cost of service: $22.95

5. Max Customers and putting everyone out of business: 17.5 Million

6. You'd like to make $60,000 a year sitting on your butt.

Operations:

$22.95 Sales * 10% Profit Margin = $2.95 PROFIT

$2.95 Profit * 10% Your Cut of the money = $0.30

$0.30 Your Cut * 100 Customers = $30.00 a month for all your hard work selling and installing this service.

$2.95 Profit * 5% Your cut from team's customers = less than $0.05.

$0.05 Your cut from team customers * 900 customers = $45 a month for your team's customers.

$30 Your Customers + $45 Team's Customers = $75 a month. This is nowhere close to $60,000 a year.

What would it take to make $60,000 a year?

Simple equation: X=Number of Customers YOU have and Y=Number of Customers your Team has:

$0.30X + $0.05Y = $60,000

X=0 ; $60,000/$0.05 = Y

Y = 1.2 MILLION CUSTOMERS paying monthly under your team.

Y=0; $60,000/$0.30 = X

X= 200,000 Customers you would single handedly have to sell Yor.net service to.

LET US LOOK AT SOME EVEN MORE REDICULOUS NUMBERS:

There were only 1000 representatives in Mexico.... Let us assume this is a fast growing business and you need those 9 representatives under you as well.... Let us assume there is 3000 representatives:

3000 Representatives * 1.2 Million Customers = 3.6 Billion Customers for everyone to make only $60,000. $60,000 is hardly rich. I'd take a guess that only 5% of the world can even afford this service and they are talking about getting rich off of it.

If you want to work with some more realistic numbers:

17.5 Million customers and Yor.net has all of them, even the top guy at the top of the pyramid would make:

$0.05 (17,000,000) = $850,000. Lets assume they only have 10% of that market (which they won't): $850,000 * 10% = $85,000. Even after taxes that top guy at the top of the pyramid isn't even rich.

If you have met these people and signed up, immediately cancel your contract (you have 3 BUSINESS days to cancel) and mail all that stuff to them in California. They will also want you to do some other things to get your money back, but to cancel your account and get your money back, call 1-714-708-2771.

Anonymous

Ashville, Kentucky
U.S.A.

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