Former type Private Number of locations 1 Founded 2012 | Industry Social Commerce Founder Ryan Wuerch | |
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Defunct December 4, 2015 (2015-12-04) Area served United States, including Puerto Rico Parent organization ASPIDER Solutions US, Inc. Profiles | ||
Solavei social commerce company marketing system
Solavei was a social commerce network offering contract-free mobile service in the United States. The company is known for its use of incentivized referral plans and social network advertising program. In addition to its mobile phone services, Solavei operates a social commerce network for its users. Ryan Wuerch founded the company in 2012. As of 2013, Solavei had 140 employees and was valued by investors at $120 million. The company has been described as a multi-level marketing (MLM) company, or of being very similar to a MLM company.
Contents
- Solavei social commerce company marketing system
- What is solavei social commerce company
- Background
- Leadership
- Marketing model
- References
On June 18, 2014, The company filled Chapter 11 Bankruptcy.
On November 19, 2015, Solavei announced its carrier partner, T-Mobile USA, had terminated its agreement to provide service under the condition that Solavei did not meet expectations. Solavei customers were allowed to migrate to T-Mobile Prepaid for a $10 monthly credit for 6 months and a free month of service. Wireless service was discontinue on December 4, 2015.
What is solavei social commerce company
Background
Solavei was launched in September 2012 and operates as an MVNO through its partnership with T-Mobile US. The company’s initial offering is a $49 per month, no-contract mobile phone plan for unlimited voice, text, and data. In September 2013 the company implemented the loyalty card program Solavei Marketplace. The program enables users to receive discounts at participating retailers.
The company utilizes a customer-to-customer marketing model, paying its customers on a recurring basis for referrals. As of August 2013, Solavei had paid out more than $14.4 million to its near 280,000 members.
Leadership
Ryan Wuerch, former CEO and founder of Motricity, is the founder and CEO of Solavei. In February 2012, Wuerch and his team raised $5 million in initial seed funding.
Some of Solavei’s financial backers include Jonathan Miller of News Corp and David Limp of Amazon.com.
Marketing model
Solavei pays its customers for referrals. At its simplest, users earn $5 per month for every customer that they sign up for mobile service. The income generated is deposited on the Solavei Visa PayCard and can be used wherever Visa is accepted. Solavei Visa PayCard also allows members to gain access to Solavei Marketplace that was launched on October, 2013. The new additional service features cash-back discount on merchandises, products and services from over hundreds of major retailers in the U.S at no cost to Solavei Social Members.
The company uses its advertising and sponsorship funds to compensate its members to build distribution networks. Through sharing on social media outlets, grassroots campaigns on YouTube, and regional events, Solavei has developed a business model that relies on customer-to-customer interaction.