Solavei

Last updated
Solavei
Company typePrivate
IndustrySocial Commerce
Founded Bellevue, Washington(February 1, 2012 (2012-02-01))
Founder Ryan Wuerch
DefunctDecember 4, 2015 (2015-12-04)
Headquarters
Bellevue   OOjs UI icon edit-ltr-progressive.svg
Number of locations
1
Area served
United States, including Puerto Rico
Key people
Ryan Wuerch (Founder, CEO)
Rick White (Head of Legal and Policy)
ProductsSocial-based mobile virtual network operator
Number of employees
140
Website solavei.com

Solavei was a social commerce network offering contract-free mobile service in the United States, known for its use of incentivized referral plans and its social network advertising program. [1] [2] [3] [4] In addition to its mobile phone services, Solavei operated a social commerce network for its users. [1] [5] [6] Ryan Wuerch founded the company in 2012. [1] [6] As of 2013, Solavei had 140 employees and was valued by investors at $120 million. [6] [7] [8] [9] [10] The company has been described as a multi-level marketing (MLM) company, [11] [12] or of being very similar to a MLM company. [13]

Contents

On June 18, 2014, the company filed Chapter 11 bankruptcy. [14]

Solavei announced on November 19, 2015, that 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 discontinued on December 4, 2015.

Background

Solavei was launched in September 2012 and operated as an MVNO through its partnership with T-Mobile US. [1] [6] [15] The company's initial offering was a $49 per month, no-contract mobile phone plan for unlimited voice, text, and data. [6] [7] In September 2013 the company implemented the loyalty card program Solavei Marketplace. The program enabled users to receive discounts at participating retailers. [15] [16] [17]

The company utilized a customer-to-customer marketing model, paying its customers on a recurring basis for referrals. [1] As of August 2013, Solavei had paid out more than $14.4 million to its near 280,000 members. [6] [7] [10] [16] [18]

Leadership

Ryan Wuerch, former CEO and founder of Motricity, was the founder and CEO of Solavei. [6] [19] [20] [21] [22] In February 2012, Wuerch and his team raised $5 million in initial seed funding. [19]

Some of Solavei's financial backers included Jonathan Miller of News Corp and David Limp of Amazon.com. [23] [24]

Marketing model

Solavei paid its customers for referrals. [1] At its simplest, users earned $5 per month for every customer that they signed up for mobile service. [1] [6] [25] [26] The income generated was deposited on the Solavei Visa PayCard, which could be used wherever Visa is accepted. [1] [6] Solavei Visa PayCard also allowed members to gain access to Solavei Marketplace that was launched on October, 2013, which featured cash-back discounts for a variety of retailers. [27]

The company used its advertising and sponsorship funds to compensate its members to build distribution networks. [1] Through sharing on social media outlets, grassroots campaigns on YouTube, and regional events, Solavei had developed a business model that relied on customer-to-customer interaction. [1] [18]

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References

  1. 1 2 3 4 5 6 7 8 9 10 "Mobile Telephone Startup Solavei Avoids Ads, Relies on Customers for Sales Leads". The Daily Beast. 24 October 2012. Retrieved 6 June 2013.
  2. ↑ "New iPhone 5 Gives TMobile MVNOs a Network Boost but Still No LTE". CNN Money. 17 April 2013. Archived from the original on 5 October 2013. Retrieved 6 June 2013.
  3. ↑ "Solavei offers unlimited, no-contract phone service for $49 per month". CNET. 6 February 2013. Retrieved 6 June 2013.
  4. ↑ "Solavei Offers An Updated Version Of The iPhone 5". The Droid Guy. 18 April 2013. Retrieved 6 June 2013.
  5. ↑ "Solavei Introduces Nano SIM Cards for iPhone 5, Offers Unlimited Voice, Text and Data for Just $49 Per Month". TMC News. 6 March 2013. Retrieved 6 June 2013.
  6. 1 2 3 4 5 6 7 8 9 ""Social" wireless company Solavei launches in Bellevue". The Seattle Times Business and Technology Blog. 26 July 2012. Retrieved 6 June 2013.
  7. 1 2 3 "Thousand-Dollar BlackBerry Phone On The Way". Forbes. 11 February 2013. Retrieved 6 June 2013.
  8. ↑ "BlackBerry Z10 Review, Tips, Tricks, Best Apps and More". CIO. 22 March 2013. Retrieved 6 June 2013.
  9. ↑ "BlackBerry will face noise from Samsung's latest smartphone as it launches in US". The Vancouver Sun. 11 March 2013. Retrieved 6 June 2013.
  10. 1 2 "BlackBerry Z10 Available Now in U.S. For $999 Contract-Free". Mashable. 11 February 2013. Retrieved 6 June 2013.
  11. ↑ Soper, Taylor (November 20, 2015). "Multi-level marketing mobile service provider Solavei shuts down due to 'competitive landscape'". GeekWire. Retrieved November 27, 2015.
  12. ↑ Fried, Ina (July 25, 2012). "Start-Up Solavei Takes Cellphone Marketing to a Whole New (Multi-) Level". All Things Digital (WSJ). Retrieved November 27, 2015.
  13. ↑ Fitchard, Kevin (January 8, 2014). "Sprint's Framily plan isn't Amway, but it's a distant cousin of multilevel marketing". GigaOm. Retrieved November 27, 2015.
  14. ↑ " MVNO Solavei files for bankruptcy protection", FierceWireless, 2015-06-18
  15. 1 2 "Fast-growing Solavei scores fresh cash, aims to top $100M in revenue". GeekWire. 25 May 2013. Retrieved 6 June 2013.
  16. 1 2 "Exclusive: Solavei to launch Marketplace loyalty payment program in September". FierceWireless. 21 May 2013. Retrieved 6 June 2013.
  17. ↑ "Blackberry z10 available in the US right now but for a price". Financial Post. March 13, 2013. Retrieved 10 June 2013.
  18. 1 2 "Solavei Building MLM Network to Sell T-Mobile USA Service". Mobility Tech Zone. 16 January 2013. Retrieved 6 June 2013.
  19. 1 2 "Ex-Congressman Rick White and ex-Motricity CEO Ryan Wuerch raise $4M for stealthy Solavei". GeekWire. 17 February 2012. Retrieved 6 June 2013.
  20. ↑ "Ryan Wuerch Launches Solavei New MLM". Business for Home. 15 August 2012. Retrieved 6 June 2013.
  21. ↑ "Ryan Wuerch: Award Recipient, Technology; CEO, founder, Motricity". Seattle Business Magazine. August 2010. Retrieved 6 June 2013.
  22. ↑ "Ryan Wuerch out as CEO of Bellevue's Motricity". Puget Sound Business Journal. 22 August 2011. Retrieved 6 June 2013.
  23. ↑ "Solavei looks to lure iPhone owners with $49 per month wireless service". GeekWire. 20 December 2012. Retrieved 6 June 2013.
  24. ↑ "Someone is trying to poach Solavei sales reps, and the company doesn't like it one bit". GeekWire. December 2, 2012. Retrieved 6 June 2013.
  25. ↑ "BlackBerry Z10 On Sale ... for $999". PC Mag. 11 February 2013. Retrieved 6 June 2013.
  26. ↑ "Want a Blackberry Z10 right now? U.S. buyers will pay a cool $1000 for early purchase". PCWorld. 11 February 2013. Retrieved 6 June 2013.
  27. ↑ "Everything You Need To Know About Solavei Marketplace". Solavei. Archived from the original on 19 February 2015. Retrieved 19 February 2015.
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