Solavei

About Solavei

Solavei operated as a social commerce company that integrated multi-level marketing (MLM) with mobile phone services. The company was founded in February 2012 by serial entrepreneur Ryan Wuerch and was headquartered in Bellevue, Washington. Wuerch's background included founding Motricity, a mobile data services company that went public, and serving as president of the educational software company Learning 2000.

The firm's business model was centered on being a mobile virtual network operator (MVNO) using T-Mobile's nationwide 4G network. Instead of investing in traditional advertising, Solavei incentivized its customers to act as a sales force. The core product was a contract-free mobile plan, initially priced at $49 per month for unlimited voice, text, and data. Customers could bring their own compatible GSM phones or purchase one from the company. The revenue model was built on these monthly subscriptions and one-time sign-up fees.

Solavei's unique selling point was its compensation plan. Members could earn recurring monthly income by referring new customers. For every three members they signed up (a "Trio"), they would receive a $20 monthly commission, which was deposited onto a Solavei Visa PayCard. This structure allowed members the potential to offset their monthly service cost and even generate profit. In October 2013, the company expanded its offerings by launching the Solavei Marketplace, a loyalty program that provided cash-back discounts at various national retailers.

Despite initial rapid growth, which saw the company reach an annualized revenue run rate of $67 million by late 2013, Solavei faced significant financial challenges. In June 2014, the company filed for Chapter 11 bankruptcy, citing $63 million in liabilities due to high initial infrastructure costs and affiliate commission payouts. In an attempt to restructure, Solavei announced a merger with Netherlands-based mobile solutions provider Aspider in March 2015, which was completed in August 2015. However, the turnaround was short-lived. In November 2015, Solavei announced it would cease operations on December 4, 2015, after T-Mobile terminated its network provider agreement due to Solavei's failure to meet expectations.