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Warning!!! Global Verge Is A Scam!
Filed Under (Recommended Opportunity) by Paul on 03-02-2010
At least that is what thousands of blog articles, forum posts, press releases, and YouTube videos would have you believe. As someone who sat on the sidelines as an active e-associate since June 25th, 2009, I felt it was time to offer up my opinion.
The reason for this is simple. Almost all of the Global Verge scam articles on the net are old and outdated. The opinions of these authors are based on misinformation and conjecture that are being taken as fact, by people researching this very viable opportunity. As a result they are making mis-informed decisions.
You see dear reader, what most of these authors have failed to disclose is that they too are offering an opinion, not facts. And all to often, these resources found all over the internet are designed to do one thing. That is to position the author as an authority, so you will accept their recommendation, to their opportunity.
So why on earth would I endorse Global Verge?
Well as I stated I have been an e-associate since June 25th, 2008. The challenges this company faced and overcame would have buried lesser companies. Weaker executives would have cut and run. Let me explain.
In May of 2009, when it was announced, that Global Verge, would become the marketing arm of a new cell phone carrier, that provided unlimited voice, data, text service, for a flat rate of $79.95 a month, signups exploded. Literally. Almost overnight (well actually 2 months) around 40 000 people jumped on the bandwagon. I was one of them.
Needless to say, Global Verge was not prepared for such explosive growth. Neither were their merchant account providers for that matter. Merchant account providers (banks) can at any time freeze your accounts if you make them nervous in any way. They can hold funds for six months or more to protect themselves from charge backs due to disputed charges and refunds. Now forty thousand enrollments at $69.95 adds up to about 2.7-2.8 million dollars. The merchant account providers that Global Verge had at that time, were not prepared to take that risk.
In a letter to e-associates on January 7, 2010, Global Verge president, Ted Robbins had this to say about their merchant account experience.
Merchant Accounts – Because of your efforts we had an influx of about 40,000 new e-Associates in one 60 day time frame back in June. The merchant accounts that we had attained were not prepared to accept this rapid growth. Therefore, we had to engage new merchant account vendors. This was definitely not an easy task. We had to prove that we were credit worthy by preparing detailed reports and also showing the banks that our business model is unique and has great potential. All of this activity had to be taken care of while we were running the day to day business which was growing more hectic each day as the business continued to unexpectedly explode. It was a great day when we “pulled it off” and had the new merchants in place.
Now, put yourself in the shoes of Global Verge management. You just witnessed record breaking growth with no cash flow due to funds being frozen by your merchant account provider. Lesser people would have quit. I dare say I may have. But the tenacity and vision of the Global Verge founders was greater than this obstacle.
I would like to make one thing clear. Although I did join on June 25th, my credit card was not charged until the end of August when they had the new merchant accounts up and running. That means myself and thousands of other e-associates had no money into this. So much for Global Verge taking our money and disappearing as some online fear mongers would like to have you believe.
Now the cell phone service was yet another huge hurdle to overcome. In my opinion, there are two issues here.
One, the service, the initial cell phone vendor was to provide, was grossly oversold. Not by Global Verge or their vendor, but by over-eager e-associates in the field. These claims were not in compliance to Global Verge’s policies and procedures.
Secondly, the original vendor, was unable to keep to their committed dates for product launch. To my knowledge, I do not believe a working product has yet been launched by this vendor on a large scale.
Needless to say, the launch of the mobile product was delayed. After the initial failed launch, this company wanted to ensure that everything was ready before launching the mobile product. Of course thousands of e-associates joined because of this flagship product. Myself included.
Global Verge announced that e-associates that wanted to wait for the mobile product to launch before paying the membership fee could do so without penalty. Of course they didn’t get paid if they opted out, but they would not lose their position. I would not be surprised if someone who joined in June and secured their position, was able to do so without paying a penny until January 2010. Again, so much for Global Verge being a scam, that was going to rip you off.
In the same letter from Ted Robbins on January 7, this is what he had to say about the mobile product launch.
Mobile Product Launch – Throughout all of the highs and lows of our Mobile Product Launch over the last 6 months we continued to believe in our relationships in the Mobile Industry. This is what kept us moving forward. Even in the face of vendors not being able to follow through on committed dates, we were confident a solid solution would become available. And we were right. It all came to fruition because we worked to pull together a new alternative. I believe that everything happens for a reason. As you know we are now positioned with our new vendor. With this relationship we feel strongly that we have an even greater opportunity for our e-Associates. Our mobile launch not only entailed detailed contract negotiations with the appropriate vendors, but it also consisted of developing the product plans and the commission structure to go along with those plans.
At this point, the phone service had launched in the US. Yes, it was a gong show when 20 000 e-associates requested service all at once. Phones and Sim cards were back ordered. The relationship between Global Verge and their provisioning partner deteriated. The provisioning partner left, citing several reasons for his departure.
I could care less, personally, what happened. It is between Global Verge and this former partner. However, I have to wonder why he would air his grievances on a public forum, like MLM Help Desk. And why would he post the personal private information of e-associates, revealing names, addresses, phone numbers and email addresses on his website, trying to discredit Global Verge? And then he jumped over to another wireless MLM company. This company revamped their compensation plan to mirror Global Verge’s pretty quick. Makes me wonder if that was the original idea. Then discredit Global Verge publicly to get e-associates to leave and join them.
Okay, that is strictly conjecture on my part. I have no proof. It is strictly a theory. But it makes sense doesn’t it?
Global Verge is bringing out wireless phones. Their other products and services are available. For the authors that wrote that this service will never arrive, all I can say is you will be proven wrong.
The final issue I wish to address are the reports that e-associates are not being paid. Yes, when credit card merchant accounts were frozen, and membership fees were not being collected, people were not paid. Once, they resolved the issue of collecting fees with new merchant account providers, people got paid. Even the e-associates that quit. And they were paid for the highest status the achieved for the months of June, July, and August. Even if their status dropped, as a result of their downline leaving because they were unwilling to weather the storm.
I believe the management of this company did this because they felt it was the right thing to do.
Any one of these issues would sink most companies, let alone all three. Yet Global Verge not only survived, but thrived. The mobile product has been soft launched. From my understanding, Global Verge sold 20 000 phones/activations in one month to e-associates. The free training program at GVUniversity.com has launched. The Global Talk Smart VoIP service has been launched in both the US and Canada and soft launching in Australia and South Africa. There is already a weekly VoIP training program implemented over the next five months for e-associates. E-associates are dining out with their restaurants.com gift certificates. Christmas shopping was easier and less expensive with the GV Savings Mall.
So, is Global Verge really a scam? No, Global Verge is a legitimate opportunity that will reward you proportionately for the effort you invest. In my opinion, the true scammers are the people that will try to get you to believe otherwise.
The above opinions are those of the author based on the interpretation of the information received from Global Verge. The above opinions are not necessarily those of Global Verge and Global Verge management.
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Nice Story, and I was there. I signed up at the beginning of June and invested over $3000.00 in marketing waiting for the phones they said were on the way to Trip Dia’s. Oh wait, no they are not on the way, someone made a mistake in saying that, wait mark has to step down, wait Zero 1 is leaving us, but we have an agreement with T-mobile. Wait, we have to design a school for you and then you can sell the phones. that was Sept.
E-Verge made the same promises that Buzz did. These guys took money, and continue to take money without providing what they promised. I hope it turns around, I defended them after the Zero-1 dilemma, so I know where you are coming from, But its time to sever ties. As a business manager, how many times does an employee have to mess up and give excuses. There is a point where loyalty will kill your business and reputation.
Again good luck, with your business and if you want to discuss this further e-mail me edited for privacy
Thank you for your comment Sam. I appreciate it.
I am concerned about one thing though. Why would you have invested $3000 in marketing before you had a cell phone to sell? Who was it that gave you that advice. Here is why I ask. A mentor of mine once said, “Test a little, before your spend a bunch.”
I am the perennial skeptic. I did not invest any money or credibility until I knew they had an offer I can bring to the table. A responsible mentor would have advised the same.
I left LightYear for them. I did it hastily. I really believed them when they said the phones were on the way, so I had my cards, flyers and promotional Items put into production. My business card was the Pharos phone life sized and the information on the other side. I still have them, they are sharp. But you are correct, this is an excuse. I should have waited, but I let my faith that hadn’t been earned, lead me. Not a good business decision. I am not trying to bash GV, But people who have been with them since June and July need to step back and reevaluate the business. I actually hope they (GV) get it right, I just do not have faith any more.
Bad thing was, I left a good company that I was making money in. My fault! But please take a good hard look at their history from E-verge until now. Check out your down line, and if you feel ok about leading them further in Gv, then go for it, but if not, do them and yourself a favor and pull the Band-Aid off and make a switch to something else. Again best of luck!
Full transparency is required from any leader. Everyone in my business has received it. Until the cell phones come out, there is always the Global Talk Smart VoIP service. The best part is that it pays even better than the Global Mobile 1.
honestly people are going to yell scam at any mlm as certain older mlms have given them all a bad name.
Absolutely Albert. The thing is and the point I was trying to make is that scam is shouted out based on opinions and not on fact.
I appreciate your comment, please share your own experience.
i’ve personally no experience with GV itself, but i have been involved in many other organizations including the one i eluded to which still shall remain nameless, but one that i am looking at is also scrutinized and the internet has loads of sites saying: “oh its a scam because of the busines model” or somesuch. my question here is: why do we prejudge? i end this by saying yes do your research, but weigh the good comments and the bad comments, no just the bad comments. thank you.
Here is a link to another article that can help you do your own due diligence on the company you are currently considering.
http://mlmselectionsecrets.com.....diligence/
So, what is going on now?
Great Question Sam. Two things come to mind.
One they brought on a travel incentives program last week, from the same people that provide them with restaurants.com incentives.
Two, aside from the mobile products, all products are up and running. Mobile products are still about 4-6 weeks from re-launch. Although now I believe they are working on becoming a MVNO instead of partnering with one. That did not work out so well for them the last time they did that.
Sam are you still in the loop? Where should I send the updates to?
I can be reached at edited for privacy
I still get info from GV, I don’t know why, but they still send me e-mails every once in a while.
Just a quick message 2 thank you 4 your interesting page article. Do u know where I can find more on this? x
I disagree with some/several points in your article.
The ZER01 affair: both Piilani of ZER01 and the Global Verge managers (Petschel & Co.) were lying about the product, and lying to each other.
The launch of the UNLIMITED phone plans: then again they partnered with a shady character, and then again it went sour, and then again they lied all the time about their product.
They said “We are a MVNO” when they were the resellers of a reseller.
They said they were offering their own plans, when they were offering the plans of other companies, marked up.
They said “our business is not in jeopardy”, and 3 weeks later they cancelled their Unlimited plans and acknowledged they couldn’t activate smartphones.
They took order for main brands sell phones, and shipped (fitfully), REFURBS.
And now they announce a NEW BUSINESS PLAN, they gonna order cell phones from China, and brand them “Buzzirk”, the brand that inspire confidence. All that in “4-6 weeks”, unless there’s a few snags in the financing…
You shoundn’t encourage peoples in giving GV the benefit of the doubt.
(continued in next post)
“Any one of these issues would sink most companies, let alone all three. Yet Global Verge not only survived, but thrived. ”
Yes, the hallmark of a pyramid scame is that THERES NO FRICKING PRODUCT TO SELL.
“From my understanding, Global Verge sold 20 000 phones/activations in one month to e-associates.”
That number comes from Global Verge. They often make up BIG numbers. What they don’t say is how many ACTIVATION FAILURES amongst those “20,000″ sales.
“The free training program at GVUniversity.com has launched.”
Yes, with tough technical questions like “Were are Gloabel Verge headquarters?” and “What do GSM means ?”
“The Global Talk Smart VoIP service has been launched in both the US and Canada and soft launching in Australia and South Africa.”
Right, soft launching, the other kind of FAIL.
“So, is Global Verge really a scam?”
Yes they are. At best, they are people that go from failure to failure, while lying all the time about it. And recruiting peoples for their next failure.
Hey first of all Arthur, thank you for your input.
Although I am not about to pull the plug on Global Verge, recent events have given me reason to pause. And if it turns out that I am wrong about Global Verge, well, I have been wrong before.
“And if it turns out that I am wrong about Global Verge, well, I have been wrong before.”
Yeah, it’s just money, after all.
I have always contended that if you are at the end of your rope financially, you need a job not a MLM. Too often, these things are marketed to the needy who are looking for a magic bullet.
The money I have invested so far this year will not be missed at the end of the year. If the money you have invested created financial hardship for you, then the timing for you to have a home based business is wrong.
I have performed hours of research on GV and as a seasoned IT Professional, I can tell you GV is a scam. EVERY promise that they have given has never EVER come true. Banks process billions of dollars a day in credit card transactions. A minor 2.5 to 3 million dollars would be a drop in the bucket. They have convicted felons as leaders and have changed their business model several times. They are legit MLMs out there, this is definitely not one of them
Nate I appreciate your coming by and sharing your opinion.
The Global Verge saga continues, and I for one am very curious as to how it will end up.
But I am curious about one thing. What does being a seasoned IT professional have to do with your determining that Global Verge is a scam?
Nate Rod on 23 Feb 2010 at 10:39 pm # “have convicted felons as leaders” Where is the evidence for this statement. I am in GV and have tried to do the DD but have failed miserably. Can you elaborate or point me to a source. I see the potential but am afraid, I can’t last until they really do get it right.
Hey Daniel, welcome and thanks for dropping by.
Mark Petschel did indeed get arrested in 2004 for securities fraud. You can find out more here.
http://bit.ly/cmJ31o
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