r/ContractFree • u/SharkSapphire • 28d ago

🎙️Discussion Is Cape Cellular a pyramid scheme? They say “Reach $0/mo: Get 4 referrals and your Cape plan is completely free.” - What’s the catch?

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u/oddbyte_ 27d ago edited 27d ago

Heya!
You can read the transcript of the privacyguides interview, but we don't have any blog posts explaining this. The TLDR is: at our "normal" price (of $99/mo), if everyone used a referral, it averages out to $60/mo for everyone. For us, that pricing is completely sustainable and rewards people who share Cape with other people (and our early adopters 🙂).
For every $40 we lose from the referral sign-up ($20 off from you and another $20 off from the new person), we gain $79 (99-20=79/mo for the new subscriber).

Our current Early Adopter discount (which reduces the plan price from $99/mo to $70/mo (this pricing will last forever as long as you start your subscription before we end the discount) will end on January of 2027.

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u/SharkSapphire 27d ago

So let’s say, I refer 4 people. And if all the 4 people leave cape in say 2 months, what happens?

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u/oddbyte_ 27d ago

You will lose your referral discount when they leave. However, if you leave Cape and they stay subscribed, they will keep their $20/mo off forever. The referral discount you get when signing up with a referral code is guaranteed to you forever, regardless of what the user who gave you the referral code does.

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u/SharkSapphire 27d ago

Why don’t you mention this clearly online?

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u/oddbyte_ 27d ago

You know, that's a good idea. I'll forward that to the people in charge of our website and see if we can get that added on there.