From: howard@XAIT.Xerox.COM (Howard Bernstein)
Newsgroups: alt.business.multi-level
Subject: Re: New MLM, any comments?
Date: 23 Nov 92 15:29:32 GMT
Reply-To: howard@XAIT.Xerox.COM (Howard Bernstein)
Organization: Xerox Advanced Information Technology, Cambridge, MA

In article <44890008@hpkslx.mayfield.HP.COM> lou@hpkslx.mayfield.HP.COM (Lou Kvitek) writes:
>In alt.business.multi-level, howard@Redwood.XAIT.Xerox.COM (Howard Bernstein) writes:
>
>> Product is telephone calling cards.  Good for usage currently in the 48 US,
>> Hawaii, Puerto Rico, US Virgin Islands, Canada, proposals out to
>> major european countries.
>
>No guarantees yet about worldwide acceptability.

No, no guarantees yet.  I'll let you know when Europe is online.

>
>> Card has no setup charge (typically 75 - 80 cents for MCI,ATT,Sprint).  Flat
>
>MCI has no set up charge.  You can switch your phone to MCI for free (they
>reimburse you for the charge you receive).  Calling cards come with it.
>

Check your facts!!!  I have rate information from MCI.  Any MCI calling card
call contains a surcharge of 75 cents.

>> per minute fee starting at .249/minute.  Drops with accumulated usage (no time
>> limit) as low as .149/minute.  The rates for calls to/from Canada are expected
>> to be slightly higher. Per minute rates lower with calls made within some
>> states.
>
>How can they have a flat rate?  They ultimately hook up into the long
>distance lines already in use by AT&T,MCI,Sprint.  So, they must pay
>for access.  .249/minute must be high enough to cover the majority of
>calls made, meaning, you will ultimately pay more for your calls since
>your high average is much higher than most calls you make.
>
>Think of your call costs as distributed over a bell curve.  The flat 
>rate must be towards the high end of the curve in order to avoid losing
>money on those calls that are most expensive.  So, on those calls that
>are cheaper (80%) you pay more than you would with AT&T,MCI,Sprint that
>have a graduated charge scale.
>

If you are making calls during the business day, over 1000 miles, you will
always save money.  If the calls are less than 1000 miles, or are in the
evening/weekend rate period, you will only save money if your calls average
3-4 minutes, or are consistenly under 9 minutes.  It depends on the 
competing rate.  If your calling patterns indicate that you average 10
minute calls THEN THIS CARD IS PROBABLY NOT FOR YOU!

In addition, the flat rate DROPS with accumulated usage, no time limit.
$500 22.9, $1000 20.9 $2500 18.9, eventually down to 14.9.  Does MCI do
this?
>
>> Fraud proof/resistent.  Two people cannot use the same pin number at the same
>> time, unlike major carriers.  If not automatically renewing, face amount runs
>
>At the same time?  How fraud resistent is that?  I watch over your shoulder
>as you dial and enter your pin (see TV shows covering phone card fraud),
>you leave - I have the number now for good.  I'm free to use it anytime I
>feel like it, and quite long odds that it will be the same time you are
>using it.  Am I missing something, or did you leave something out here.
>

"At the same time" is important... it means your pin number cannot be
distributed, which is how phone card fraud can run up huge bills.  In addition,
your account will not be automatically credited for more than $100/day in the
event you have automatic renewal.

As a representative, your commissions start at 4% and reach 8% for personal
sales and renewals.  Overrides on downline vary to a maximum, including
personal sales, of 15%.

-- 
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Howard Bernstein        Xerox Advanced Information Technology    (617) 499-4402
howard@XAIT.Xerox.com  4 Cambridge Center, Cambridge, MA 02142    FAX  499-4409
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Newsgroups: alt.business.multi-level