Yor.Net Voice

This company recruits students and other individuals to sell and invest in a VOIP telephone service as a home based business opportunity using a multi-level sales plan. In order to become an independent representative (IR), participants are required to pay a $50 fee which is renewable annually. Optionally, IR’s may purchase a business tool kit for an additional $100 or an eC wholesale package for $340. The company's website currently contains no disclosures or other information relating to marketing terms and conditions.

This company's principal, Dennis Wong, previously operated, Mall Ventures, Inc., (dba 2 by 2.net), which was the subject of an FTC action resulting in an Order for permanent injunction in January of 2004. The settlement with Mall Ventures and its co-founders Jeffrey P. Morgan and Dennis Wong barred them from participating in any prohibited marketing scheme, including any business that operates as a pyramid scheme. It also barred them from misrepresenting the potential or likely earnings or income from any business venture, the benefits any participant can expect, and assisting others to make misleading claims. They are required to provide upfront disclosures about actual earnings and prohibited from erecting unreasonable barriers to investors who want refunds. A separate report is available upon request.

This company's marketing materials clearly disclose that 72.9% of all IR's fail to earn any money, and the average income earned by all IR's as of September 2007 is $196.62.

We urge caution. Although there are some legitimate multi-level sales companies, many similar companies engage in pyramid marketing tactics. We urge caution if you are pressured into purchasing additional kits or equipment such as phone adaptors, etc. You should also be concerned if the focus of the business appears to be on recruitment rather than product sales.

Make sure you are aware of the differences. A legitimate multi level plan encourages successful distributors to recruit and train a sales force, but the distributor must also assume ongoing wholesaling and managing responsibilities as well as, selling to their own retail customers. Emphasis should be placed on selling the product or services offered as a means to earn money, not recruiting others. In an illegal pyramid, the recruits on the bottom level pay money to a few people at the top. They generally do not publicly advertise their offer, but instead rely on word of mouth recruitment of new affiliates. They may hold recruitment meetings where they create a frenzied and enthusiastic atmosphere, where group pressure and promises of easy money prey on people's greed and fear of missing out on a good deal. Some pyramids are easily recognizable and are as simple as a chain letter. Others are very sophisticated, and disguised to look like legitimate multi-level marketing companies to fool investors and law enforcement. As their disguise, they may take on a line of products or a service and claim to be in the business of selling to consumers. When in reality, the real money comes from recruiting and not from marketing the products. Recruits themselves run a significant risk of arrest and fines by authorities for participating or promoting such offers.