The Budel Story

THE BUDTEL STORYBy Joe Rhem

As CEO, Mr. Rhem is responsible for vision, strategy and technology at BudTel communications. Budtel is a innovative, high quality, low cost residential Internet phone service with a high standard for customer service. Mr. Rhem serves a dual role as the President and CTO of the high growth telecommunications company focused on the business sector called Star2Star communications, which he founded. StarStar provides the World's Most Reliable Business Grade Internet Phone Solution. Mr. Rhem is also the CEO of SunVox, a traditional copper based regulated telephone company providing wholesale services and Internet Service to corporate and governmental organizations.

Mr. Rhem has innovated several new technologies and founded many successful high tech firms in his career. Mr. Rhem held the position of Global Principal Architect for Wireless Technologies at Computer Associates (CA), the world's 4th largest software company. Mr. Rhem also ran the CA Worldwide Information Management Advanced Technology Group, reporting to CA co-founder and board member Russ Artzt. During this time Mr. Rhem re-engineered the B2B integration for the WalMart supply chain to run over the Internet.

In 2003, Mr. Rhem Founded Highwall Technologies and patented the long range wireless security sensor known as the Highwall Sentinel. In 2001 Mr. Rhem founded Voyage Data Corporation which is a successful wireless platform application development firm.

In 1996, Mr. Rhem founded Mindwave Technologies and sold within a year to a subsidiary of Computer Associates.

In 1986, Mr. Rhem received a degree in Information and Computer Science from the Georgia Institute of Technology. While still in High School, he founded Summit Software Corporation which created and sold one of the first document imaging and laser disk storage solutions on the market worldwide.

CHIEF EXECUTIVE OFFICER MR. JOSEPH RHEM

BUDTEL MAIN DATA CENTER AND NETWORK OPERATIONS CENTER MANNED 24X7X365

BudTel houses its core telecommunication infrastructure in a Tier-3 datacenter on the 7th floor of the Lykes Tower in downtown Tampa, Florida. Originally built by GTE to house its telephone network core for Southwest Florida, this building has become one of the nation's most active carrier neutral communications facilities, housing more than a dozen major communications companies and having multiple redundant fiber loops connecting the entire region to the Internet backbone. We have two additional Points of Presence and rely on the Voice and Internet Networks of Level3 Communications and Broadvox Communications providing redundancy through the United Stated, Canada and the Caribbean Islands.

Click here for live video of our data center (Camera 2)

QUALITY NETWORK AND REDUNDANT POINTS OF PRESENCE

PRO-ACTIVE CUSTOMER SERVICE

Quality Monitoring: 24x7x365 to ensure reliable great sounding calls.

Automatic Notification: We will notify you when we detect a problem and even tell you what to do to bring back your service if the Internet goes down.

Automatic Failover to Cell Phone or Voicemail: You will never miss a call even if the Internet or your power stop working.

Great Customer Service: Our polite and courteous, all American Support team.

WE SUPPORT 911 CALLS

You are required to give us your proper home address as your 911 location and to update this information anytime it changes.

When you dial 911 using our service and we have your correct address, these calls will be routed to your local 911 dispatch center in the United States, just like it does today with your traditional phone service.

FREEDOM FORWARD

Freedom Forward: Ring your house, cell, and office phone at the same time or in a sequence and never miss a call. You can even turn it off at night.

SEND YOUR VOICE MAIL TO EMAIL

Do all your messaging in one place

Listen to only the part you want

Keep them organized

Save it forever and search for it in the future

Forward it on to someone else

FREEDOM NUMBERS

Retired teachers, John and Pat Atkins, live six months in Michigan and six months in Florida. They travel to Europe and Mexico several weeks each year. They found new freedom with BudTel. Now they have one phone line they take with them which rings as a local number from Michigan and Florida.

FREEDOM FEATURES

FREEDOM FEATURES

BIG SAVINGS Long Distance included, low cost

international calling, and no need to answer your cell phone while at home. The average household saves hundreds of dollars per year

BudTel Vonage/Cable Verizon/AT&TPhone Line $ 19.95 Phone Line $ 24.99 Phone Line $ 16.09

Taxes and Fees $ 9.65 Taxes and Fees $ 8.08 Taxes and Fees $ 11.20

LD Included LD Included Unlimited LD Plan $ 27.95

Total Cost $ 29.60 Total Cost $ 33.07 Total Cost $ 55.24

3 yr discount $ (2.00)

Local Cost $ 27.61

Savings Over 3 Years Savings Over Vonage/Cable $ 196.74 Savings over

Verizon/ATT $ 994.86

You Need Broadband Internet Access

Sign Up On Our Web Site

Keep Your Old Number if You Like

We Will Send You the Phone Adapter

Plug it in Call Us With Any

Questions, We Are Happy to Help!

SWITCHING IS EASY

Go to our Web Site: www.budtel.com

Or Call (941) 615–1005 and Press 2 for sales

SIGN UP NOW AND START SAVING MONEY AND ENJOYING THE FREEDOM

Enjoy Powerful Features

Experience Great Quality

Save $1000 over 3 years

THE ECONOMY IS IN RECESSION

Fuel Prices Are Up (and driving up the cost of everything else) Food Cost have Increased 40% (food riots in parts of the

world) The Airlines Are Going Under We Have a Mortgage Crises There is a Real Estate Meltdown Construction has Come to a Screeching Halt Healthcare and Insurance are Going Up Corporations are Outsourcing American Jobs Social Security & Medicare are on the Brink of Collapse People are Being Laid Off - You May Be One of These People

THE TIMING IS PERFECT

This is the perfect time for you to generate new income while saving yourself and the people you refer hundreds of dollars per year.

Take Control of your future. Work the hours you want. Work from home. Live the Life of your dreams.

THE BUDTEL REFERRAL PROGRAM

We have a commitment to make our company not only a revolution in the delivery of Internet phone service, but also in the method that it is marketed and sold. Many of our competitors spend more than their entire revenue on advertising which in this competitive marketplace leaves little room to invest in a good product or support. Since this revolution of service delivery is one of the largest redistributions of wealth taking place in the world today, we decided to include our customers in that success.

BudTel offers a unique and generous compensation plan for customer referrals.

You can participate by referring your friends and save money on your phone bill.

You can Also Join the Budtel Referral Agent Program and Generate New High Levels of Personal Wealth.

BUDTEL CUSTOMER DIRECT REFERRALS

Any BudTel Customer can refer a friend. Just have them give us your name and phone number when they sign-up for service. We will give you a free month of phone service.

Find out how to receive significantly more money for your referrals by joining the BudTel Referral Program on the next few slides.

THE BUDTEL REFERRAL AGENT PROGRAM

This program has four levels of participation: Referral AgentMaster AgentDistributorMaster Distributor

THE BUDTEL REFERRAL AGENT

A BudTel Referral Agent purchases the Budtel Referral Agent's sales kit and training for $215. The sales kit includes a leather folio, business cards, e-mail address, personal referral website, literature, DVD, name tag, online training and certification.

When you refer five new Budtel phone customers, then your phone service will be FREE, as long as at least 5 referrals remain customers of Budtel. All you will pay is the $7.60 monthly taxes and service fee. This will save you an additional $240 per year.

After your first 5 sales, for each additional new customer referred to Budtel you will receive $20. In addition, you will receive $5.00 per line for each month that they remain a customer of Budtel.

REFERRAL AGENT SALES KIT

The sales kit includes a leather folio, business cards, Budtel pen, BudTel e-mail address, personal referral portal, literature, DVD, name tag, online training and certification.

AN EXAMPLE OF HOW A REFERRAL AGENT CAN MAKE MONEY

Let’s say a housewife, Nancy with kids in school, decides to sell BudTel phone service at a Kiosk in busy local mall. Assuming she sells one per hour, working 5 hours while the kids are in school, she will walk away with $100 in her pocket each day. After 12 months of doing this 25 hours per week, she will have sold 1300 customer. The $20 onetime payments for each line would total $27,000 and the $5 residual commissions for these 1300 customers will be to $6,750 each month !

Nancy also receives $1 each month from each phone line referred by the agents she refers. Let’s assume 1 out of 10 people she sells the phone service to (130), in turn, wants to sell the phone service themselves and they each sell an average of 1 per week over a year’s time (130x52 week/yr x $1 =$6750). Nancy will make another $6,750 per month on those sales.

In the scenario above, Nancy would make a total of $183,000 in one year of residuals on 1300. The next year selling at the same rate, the residuals will double and keep accumulating to $26,000 per month or $350,000 per year. Nancy will make a half a million dollars after year 3 of selling at the same pace.

BUILDING YOUR TEAM

Why do I need a team? You Don’t. You can become a referral Agent and refer

customers without any help from others and make money doing it.

Why do I want a team? With only one Budtel Agent that was referred by you, you

begin to get paid on the efforts of others. Recurring commissions get paid up to 5 levels of team members that you referred.

BUILDING

We have a Utility Patent Pending on a new direct marketing system where everyone wins even with a minimal effort. We call it “The Buddy System”.

The buddy system allows you to refer one, who refers one, till you have a group of 6 individuals. We call this a “Six Pack”.

Your six pack must be full before a new six pack can form underneath.

“The Buddy System”

YOUR TEAM

Your First Six Pack

You

BUILDING

When a second Six Pack is completed under the person you referred in the first six pack you are then qualified to earn additional bonuses

A $240 bonus is paid when everyone in the second six pack refers their 2nd phone customer. Referring a new agent counts as a customer.

You also receive a Budtel dress shirt and are promoted to the rank of master agent affectionately known as “Bud”

If you referred all six in your first six pack and they each form a six pack underneath then you earn $240 for each of the 6 six packs as they refer their first customer.

“The Buddy System”

YOUR TEAM

FirstSix Pack

Bud

Second Six Pack

$240

BUILDING

After completing the second Six Pack and receiving the $240 bonus you can earn additional bonuses.

You qualify for these bonuses when your third six pack (deep) is started under the agent referred by the agent referred by you.

You will receive a bonus of $10 as each of these agents refers their 5th phone customer.

YOUR TEAM

Bud

$240

$60

BUILDING

When your 4th six pack (deep) is started by an agent referred by the agent who was referred by the agent that you referred you are qualified for additional bonuses.

You will receive a bonus of $10 as all the agents in that six pack refer their 4th phone customer.

The same is paid on the 5th six pack. On the 6th and 7th Six Packs you get

paid $10 on the 3rd phone line for each agent.

YOUR TEAM

Bud

$240

$60

$60

The more people you directly refer the more the system will pay.

$60

$240

EXAMPLE OF HOW YOU CAN MAKE MONEY BY REFERRING 1 OR 2 AGENTS

Fred does not like to work very hard but he referred his wife Nancy. Fred’s Nephew Jackson came over to watch the Super Bowl and before

halftime was over Jackson had decided to become a Budtel Referral agent. When Nancy, Jackson or anyone on their team refers a total 6 Budtel Agents,

this makes Fred a Master Agent (Bud) and he receives $240 plus a Budtel Master Distributor Dress Shirt .

As new agents continue to be referred by Nancy, Jackson or anyone on their team Fred receives $10 through 6 levels of BudTel Six packs.

Fred made $2, 000 on Nancy’s referrals. Jackson also did just as well as Nancy and Fred got paid another $2000 bonus for those referrals.

After a year of Nancy and Jackson actively selling Fred also made $39,160 in recurring commissions for a total of $43,426 and all he did was refer two Budtel agents.

BUILDING

If you directly refer all six agents in your first six pack and they (or you) create a total of 3 six packs directly beneath them then you become a BudTel Distributor.

YOUR TEAM

Bud

BudTel Branded LaptopBriefcase and Demo System

$240 $240$240

Case

A BudTel Distributor is a person who builds teams of Master Agents and Referral Agents. They deliver the training and certification for Master Agents and Referral Agents regionally and receive their own training and certification on a quarterly basis.

They earn a BudTel Laptop Briefcase and Demo System. They are compensated on all the sales activities for the Master Agents and Referral Agents they are responsible for managing.

BUILDING A TEAMBUDTEL DISTRIBUTOR

BUILDING YOUR TEAM

When you are a BudTel Distributor and personally sign up 3 BudTel other Distributors you become a Master Distributor or what we call a Super Bud.

When that happens you move to the top of the organization and begin receiving new agent referral bonuses for up to 6 six packs deep.

Super Bud

The Master Distributor is an organization or person who is responsible for the training and management of a group of BudTel Distributors.

They receive training and certification on a quarterly basis, attend monthly conference calls with Budtel executive management, and sponsor and manage Budtel marketing events.

BUILDING A TEAMBUDTEL MASTER DISTRIBUTOR

RECURRING

Referring Agents provides nice bonuses but the recurring commissions are where the big money is made

Lets say that you directly refer 6 agents who in turn refer 6 others and this goes on for 5 levels

Lets also say that on the average each referral agent sells one line per week to either a customer or a new referral agent.

In year 3 your annual recurring revenue would be $4.4 million dollars

COMMISSIONS

ADD UP!Bud$20 per new customer$5 per month as they remain a customer

$1 per month as they remain a customer

$.50 per month as they remain a customer

$.25 per month as they remain a customer

$.25 per month as they remain a customer

$.25 per month as they remain a customer

$.50 per month as they remain a customer

$.25 per month as they remain a customer

$.25 per month as they remain a customer

$.25 per month as they remain a customer

$.25 per month as they remain a customer

Not everyone has the skill or time to build out an organization 5 levels deep. Some do and want to know how much can be earned. The example below shows what is possible with a full organization 5 levels deep where each level was referred by the level above. This example assumes that each agent refers one customer per week.

HOW MUCH COULD I EARN?

Level AgentsSales/Year

Total Sales Rate

Monthly Commission

Annual Commission Bonus/$20 Total

(you) 1 52 52 $ 5.00 $ 260 $ 3,120 $ 1,040 $ 4,420

1 6 52 312 $ 1.00 $ 312 $ 3,744 $ 4,056

2 36 52 2,704 $ 0.50 $ 1,352 $ 16,224 $ 1,440 $ 19,016

3 216 52 11,232 $ 0.25 $ 2,808 $ 33,696 $ 2,160 $ 38,664

4 1,296 52 67,392 $ 0.25 $ 16,848 $ 202,176 $ 12,960 $ 231,984

5 7,776 52 404,352 $ 0.25 $ 101,088   $ 1,213,056   $ 77,760 $ 1,391,904

Total 9,331 486,044 $ 122,668 $ 1,472,016 $ 95,360 $ 1,690,044

Year 1 $ 1,690,044Year 2 $ 2,945,072 Year 3 $ 4,416,048

WHAT HAVE YOU GOT TO LOSE?

It Costs $215 to become a BudTel Referral Agent You will save $330 per year on a typical residential phone

bill even if you never refer a phone customer or Agent to BudTel.

After referring 5 customers you save another $240 per year and the service fees are waived and then you start making $20 per line and $5 per month for every additional Budtel customer you refer. Even if you never refer another agent to Budtel.

Your individual results will depend on how effective you are at referring customers and other agents. Your team can grow very large with as few as one BudTel agent that you personally refer. All anyone has to do is refer one other person to begin to grow a team of Agents.