Guest Post by Greg Boudonck
Communications had hit a new milestone when telecom deregulation became a reality.
A company who grabbed the opportunity by the horns was Excel Communications.
But, did they fall as fast as they rose?
In today’s post, I am going to take a close examination of Excel Communications.
I will explain this company’s history.
I will provide you with a brief review and lastly, I will give you some cool facts I discovered while I was researching this multilevel marketing company.
Excel Communications History
In the 1980’s, a Dallas, Texas entrepreneur by the name of Kenny Troutt saw a huge opportunity as the long sought for deregulation of the telecommunications industry was taking place.
In 1988, Troutt started Excel Communications as a long distance re-seller.
While multilevel marketing was a popular business format for tangible goods, Kenny and Excel were stepping into new grounds using MLM to market and sell long distance phone service.
Excel Communications grew fast. In 7 years, Excel became the 4th largest long-distance carrier in the United States, and in 8 years Excel became the youngest company to attain $1 Billion in annual revenues.
In 1996, Excel offered 11.5 million shares on the New York Stock Exchange becoming a public company.
During all of this time, Excel was simply buying blocks of long distance from other company networks and reselling them at a profit, but in 1997, Excel bought Telco Communications which had their own fiber optics network.
This opened Excel up to offering their own lines of service.
Other companies were now seeing the opportunity in selling and reselling long distance service.
Because of the competition, profit margins dropped drastically. Being a multilevel marketing company, many distributors were harmed.
In 1998, Excel merged with Teleglobe, and before long, Bell Canada took over the Excel/Teleglobe system.
It was the beginning of the end for Excel, as Kenny Troutt retired as CEO and Christina Gold took over.
Bell Canada moved Excel in with VarTec Communications who soon filed for bankruptcy.
This put Excel in a precarious position.
In an attempt to keep operating, Excel halted the MLM format which upset a wide amount of people.
Considering the fact that many of the Excel customers were also distributors, many moved their long distance service elsewhere.
To make a long story short, Excel Communications is still an operating business and is owned by Impact Telecom.
They do offer partnership programs which are essentially a cross between multilevel marketing and affiliate marketing.
You can see more on that development by visiting the company website in the reference section at the end of this post.
Excel Communications Review
Looking back on the Excel Communications system for distributors, I would say that for those people who jumped in right at the start-up and worked hard made great money with Excel Communications.
One such person who did quite well with Excel Communications was also the founder of Fortune Hi-Tech Marketing made a lot of money as one of the early distributors with Excel Communications.
His name was Paul Orberson and he passed away in 2013.
For those who jumped in late, the market was essentially saturated, and when other companies took hold of long distance reselling, the profits dwindled quickly.
In reviewing reviews of Excel Communications, I discovered that many distributors would never have joined if they would have known what they know now.
When they really looked closely, the commission levels were really quite low, and the ones who were truly making good money were those who were getting 5+ new distributors every week and getting the bonuses from them.
And, as we all know by now, when a company is primarily seeking distributors instead of customers, it is essentially an illegal pyramid scheme.
Excel Communications Cool Facts
As I was researching this blog post, I ran across a few cool facts you may be interested in.
Excel Communications was the fastest new company to reach $1,000,000,000 in revenue. They did it in 8 years whereas 2nd place was Bill Gate’s Microsoft who took 15 years.
Kenny Troutt became a billionaire when Excel was sold to Teleglobe for $3.5 Billion.
In 4 years time, Paul Orberson made $1 Million with Excel.
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This was one of the cases that goes against the norm.
We usually tell people to not jump in with an MLM start-up, but the ones who jumped into the Excel program at the start did quite well.
Were any of you involved with Excel Communications?
I know I had a family member sign their long distance over for a short time but were very unhappy and switched back to their original company.
There are a whole lot of lessons that can be learned from the rise and fall of Excel Communications. What are your thoughts? Do you have any questions?
Just post them in the comments area below and we will do our best to answer them.
Disclaimer: Neither the Online MLM Community nor I are affiliated in any way with Excel Communications. This article if only for educational purposes.
- My Time on the Pyramid: Excel Communications and Me
About the Author
Greg Boudonck is a freelance writer and the author of over 50 books. He writes on many different topics, but business subjects are one of his primary areas of writing expertise. You can see more about Greg and his work by visiting his website at Lancerlife.com.
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