Cognigen's vision is to build shareholder value by becoming the market leader in the worldwide distribution of telecommunications and data services.

President's Message
An important message from the president regarding our goals, our accomplishments, and where we see our company headed looking forward. Also listen to recent interviews with Darrell Hughes, CEO.

The Cognigen Story
Where we came from, what we're doing here, where we're going, and why we're the best at what we do.

Consolidated Financial Reports
In this Financial Results section we will provide interested investors with the financial results of our ongoing operations.

Our Corporate Profile
Cognigen is revolutionizing the internet and network marketing industries by creating a virtual army of sales agents, armed with fully-automated, self replicating web sites that can provision, track, and provide status reports all on-the-fly. E-commerce has never been more affordable or more accessible to internet entrepreneurs and network marketing professionals.

Cognigen's Board of Directors
Cognigen's 5-member board of directors has a broad business and industry background in telecommunications, internet technology, and network marketing that provides a strong foundation for Cognigen's success and its vision for the future.

In business, having the right relationships is the difference between success and failure. Here at Cognigen Networks Inc., we create wealth through strategic and rewarding partnerships with suppliers, dealers, retailers and end-users.

If you would like to have Cognigen consider adding your product or service to our online suite, click here to contact us.
Home page http://www.callingcardstele.com

Long Distance Carriers
Cognigen Switching Technologies (OTCBB: CGNW)
Capsule Communications (Nasdaq: CAPS)
TTI National Inc. (Nasdaq: WCOM)
 PowerNetGlobal [Qwest]
Sprint (NYSE: FON)
Planet Earth Communications [Worldcom]
OPEX Communications [Frontier/Global Crossing]
Unitel Communications [Frontier/Global Crossing]
International Telcom (ITL)

Confence Callinger
Cognigen Switching Technologies (OTCBB: CGNW)

Bundled Services
TalkAmerica (Nasdaq: TALK)
OneStar

Dial-Up ISP Service
CogniSurf - Powered by Broadwing (NYSE:BRW)
SurfBest - Powered by Roadtel Communications

Broadband Data Services
Speakeasy DSL
PowerNetGlobal

Calling Card Providers
Cognigen Switching Technologies (OTCBB: CGNW)
DeltaThree (Nasdaq: DDDC)
Roadtel Communications
Acculinq Communications
USATEL Communications
Vocall

Web Hosting Services
Extreme Programming, Inc.
Warp Speed Hosting
LowestDomainRates.com

Satellite Television
 DISH Network [Echostar] (Nasdaq: DISH)
DIRECTV, Inc.

Home Security Systems
Protect America, Inc.

Computer Hardware / Software
Ingram Mirco (NextDayPC)
Microsoft (Nasdaq: MSFT)
Intel (Nasdaq: INTC)
Advanced Micro Devices (NYSE: AMD)
Palm Pilot (Nasdaq: PALM)
Sony Corporation (NYSE: SNE)
Toshiba

Voice Messaging Providers
VoiceCom Communications (Nasdaq:PTEK)

Cellular Services
InPhonic
AT&T Wireless (NYSE: AWE)
NexTel
Cingular
Verizon Wireless (NYSE: VZ)
Sprint PCS (NYSE: PCS)
Alltel (NYSE: AT)

Paging Service
PageNet Communications (Nasdaq: ARCH)

International Calling Services
Cognigen Switching Technologies [Aquila] (OTCBB: CGNW)
International Telcom (ITL)

Internet Telephony
Net2Phone (Nasdaq: NTOP)
DeltaThree (Nasdaq: DDDC)

For a complete list of Cognigen In-House Solutions, click here.

Part of our long-term strategy is to leverage our intellectual talent to develop and maintain our own set of products which allow us to gain higher margins and build company equity through owned customer accounts. Through our technology division, Cognigen Switching Technologies, and through private and co-branded ventures, Cognigen now has ownership of all customers who sign up for the following services:

CogniPhone is our first one plus long distance product entirely developed by Cognigen and CST and maintained by CST. It features great International rates, low 3.89cpm state to state rates and online account management system with credit card billing.

CogniSurf, developed by Cognigen with back office support from BroadWing, offers users premium dial-up capability for roughly half ($12.45) of the going rate ($21.95).

CogniDial, developed and maintained by CST, offers customers in the United States and Canada inexpensive toll-free dial-around access to the world.

CogniConference, developed and maintained by CST, offers users a unique blend of real-time conference calling with secure online billing. CogniConference supports up to 16 users at a time and has access from over 50 countries worldwide.

CogniCall is our complete long distance solution. CogniCall offers both U.S Domestic 1-Plus calling (coming soon), calling card service for 7.8 cents/min, and international calling card access from over 59 countries worldwide. We expect CogniCall to be our biggest money-maker by 2003.

CognigenMail enables virtually anyone to rid themselves of unwanted SPAM mail and viruses for good. CognigenMail uses an automatic confirmation system that will only allow messages from verifiable email addresses to be delivered, and is hugely popular with our non-U.S. agent population.

If you would like to use the Cognigen customer acquisition engine to raise money for your organization or charity, please contact us. Cognigen offers a buffet of products and functionality. We can customize our offerings to meet and exceed your needs. In fact, we have helped dozens of organizations do just that - lower their member's phone bills while earning the groups money every month their subscribers pay their phone bills!

We offer 4 different affinity packages. Below we have assembled a few of our affiliate partners as examples of the solution in action:

 

Affinity Silver Package
Setup Cost:	$750.00
Monthly Cost:	$24.95
Marketing URL:	Custom domain name (URL) included
Customizability:	We personalize your site using our established templates
Set-up Time:	30 Days
Commissions:	6%-10% (determined by volume commitment)
Examples:	United Way of Bucks County University of Central Washington Cost Containment

 

Affinity Gold Package
Setup Cost:	$60 per hour
Monthly Cost:	$24.95
Marketing URL:	Custom domain name (URL) included
Customizability:	We personalize your site from scratch
Set-up Time:	45 Days
Commissions:	6%-10% (determined by volume commitment)
Examples:	Handy Man Express Synergy Worldwide

 

Affinity Platinum Package
Setup Cost:	$249.00
Monthly Cost:	$8.95 (after the first year)
Marketing URL:	You purchase your custom domain name (URL)
Customizability:	More customizability than the Bronze package. Includes your own personal logo, delete/remove products and categories, BottomLine(tm) calculator.
Set-up Time:	3 Days
Commissions:	6%-10% (determined by volume commitment)
Examples:	Front Page BottomLine Rate Calculator Real-Time Rate Quote Example

 

Cognigen has a program to fit every agent's needs. Whether you are looking to start a home business, or you are an established, medium/large master telecom agent, we've got a program for you! If you have a track record you can demonstrate this to us, we will tailor a specialized compensation package for you which will enable you to bring all or part of your existing book of business to us, and to earn more money than you would with any other master agency, reseller or carrier, after you consider all relevant factors.

If you can show that you have currently at least $10,000 or more per month in personal billing volume, fill out a brief interview form.

NOTE: If you do not have $10,000 in billing customers with another company right now, please consider joining our regular agent program.

Below are a few examples of companies (Master Agents) who have plugged into the Cognigen system.

If you do not qualify as a master agent, click here.

As a new representative of Cognigen you only need to focus on two things, gathering customers and sponsoring representatives. Customer Gathering

Customers are gathered through the websites provided for you by Cognigen, how they get to your website is something that you, as an agent, have a great deal of control over. Cognigen has a number of tools that can be used to generate traffic to your website, but in order to be successful; you must also market your site and your services to generate traffic. This can be done through your family, your neighborhood, and your local business community, and/or through your own marketing efforts on the Internet. The main web address is http://LD.net/?yourcognigenID. Customers entered into the system via your web pages will result in commissions to you. Sponsoring Representatives

The act of sponsoring takes place when another individual signs up as a new representative of Cognigen via your websites. These individuals, and those that sign up under them, will be called your sub-agents and each starts as an Independent Rep (IR). There are four different ways to earn money:

1. Residuals: Residual commissions are paid monthly to all IRs on their own sales AND 1% Override Residuals (OR) are paid to all IRs on the sales of their "downline" through each of 6 levels provided they maintain at least $100 in monthly billed volume and add at least one new Residual paying account every 12 months. In most cases, residual commissions can range from 6% to 12% depending on each IR's personal monthly sales volume as follows:

$1 to $4,999	6%
$5,000 to $9,999	7%
$10,000 to $24,999	8%
$25,000 to $49,999	9%
$50,000 to $74,999	10%
$75,000 to $99,999	11%
$100,000 +	12%

As will be discussed below, there may be times when residual commissions are paid at levels outside of the 6% to 12% range (these may be paid at higher or lower levels depending on the product or service).

2. Qualified Rep Bonus (QRB): Every time an Independent Rep (IR) becomes a Qualified Rep (QR) by selling or buying 3 Select Services (or by qualifying for instant QR promotion), $50 is paid to the QR sponsor and $10 is paid to the upline QRs through 6 levels. These bonus payments are dependent on the upline QRs maintaining the minimum requirement in monthly billed volume for their position.

3. Promotion Bonus (PB): Every time a QR promotes to AR by personally sponsoring 5 QRs (thus earning $250), a total of $500 is paid incrementally to the upline of the newly promoted AR (i.e. his or her AR, RR, NR, and GR). As in all bonus payments, in order to receive the bonus payment, all of the receiving parties must maintain the minimum sales volume requirements of their position in monthly billed volume.

4. Generational Override (GO): An override commission of up to 1% is paid on the sales of the sub-agents below the sixth level in an agent's AR, RR, NR, and GR organizations as long as the agent meets the requirements for receiving Residuals in '3' above, this includes the requirement of maintaining a minimum level of monthly volume required for their position This commission is paid to unlimited levels.

How is Personal Sales Commission Paid?

Your base commission on residual earning products and services is generally 6% of your customer's usage for the life of each account. These commissions will increase to as high as 12% based on your monthly sales volume. If you personally sign up a representative, they will, like you, receive a 6% commission on their own sales, and you will receive 1% override on their sales. You will receive 1% on each of your "downline" representatives through six levels provided you maintain at least the minimum requirement for your position in monthly billed volume and add at least one new residual paying customer every 12 months.

When agents reach $5000 in personal sales volume, their commission increases to 7% and the 1% override commissions are then paid out to 5 levels of their upline (instead of 6). At $10,000 monthly revenue, their commission increases to 8% and the overrides are paid to 4 levels of upline. At $25,000 monthly revenue, their commission increases to 9%, and the overrides are paid to 3 levels of upline. At $50,000 monthly revenue, the commission increases to 10%, and overrides are paid to 2 levels of upline. At $75,000 monthly revenue, the commission increases to 11%, and overrides are paid to 1 level of upline. At $100,000 monthly revenue, the commission increases to 12%, and overrides are still paid to 1 level of upline.

The compensation plan is based on the company receiving a level of compensation from each vendor that supports the commission plan as described. To remain competitive, it may become necessary to add vendors that do not pay commissions to the company that allow the company to support the commission plan as described. In the event that such vendors are added, the commission plan will be "scaled" to allow the agents to earn a fair commission while allowing the company to retain a commensurate level of paid commissions. At the time that such products or services are introduced, a notice shall be provided to the agents via email or postings to the agent Private Pages. It is further stated that from time to time compensation from existing vendors may require such "scaling" to allow the company to continue to administer the compensation plan in a fair and profitable manner. In the event that changes must be made to the existing plan, a notice shall be provided to each agent via email or postings to the agent Private Pages. It should be noted that this scaling might result in both increased as well as decreased commissions.

Getting Paid

As discussed above, residual and bonus payment are only paid upon an agent meeting a minimum requirement for monthly-billed revenue for their position. An agent meeting the minimum production requirement must have also accrued $50 in commission payments in order to have a commission check issued. If the agent's accrued commission does not meet the $50 minimum, the agent will continue to accrue commissions until the $50 minimum is met. At that point, on the next commission pay date, a check for all commissions and bonuses will be paid.

In the event that an agent does not meet the requisite minimum for monthly-billed revenue, the agent will lose any commission accrual for that month – which includes all Promotions Bonuses, QR Bonuses, Select Service commissions, and residual overrides. Here is a summary of the volume requirements, or Pay Point, of each promoted position:

Independent Rep:	$100/month individual sales volume
Qualified Rep:	$100/month individual sales volume
Area Rep:	$100/month individual sales volume
Regional Rep:	$200/month individual sales volume
National Rep:	$300/month individual sales volume
Global Rep:	$500/month individual sales volume

Also, Cognigen reserves the right to terminate the agency of any agent who has failed to accrue any commissions for a 12-month period. Any agent terminated due to 12-months of inactivity will forfeit any claim to previously accrued commissions.

Six-Month Exemption Understanding that it can take a few months to generate sales and begin earning commission, the plan has a six-month exemption from the corresponding minimum volume requirement, or Pay Point. During this period, any and all promotion bonuses, Select Service commissions or other earnings will be paid (assuming the total check amount exceeds $50.) After the six-month ramp-up period, the appropriate volume requirement will go into effect.

Getting Started

Step #1 - Become a Qualified Rep (QR) Eligible for Bonuses To become a Qualified Representative (QR) simply sell or buy 3 Select services (including the "Instant QR" packages and those "Benefits"' services marked 'Select' in your LD.net/private site).

* 3 Selects = Qualified Rep (QR). The number of Select Credits you receive from each sale is listed on our web site at http://LD.net/select/?YourID

Now, as a QR, you will receive a QR Bonus (QRB) of $50 for every level 1 QR you personally recruit and $10 for every QR developed in your levels 2 through 6. (Note: International Agents have the extra privilege of qualifying as a QR by having $5,000 in personal monthly sales volume.)

Upon joining Cognigen you will begin accruing residual income for your sales immediately. To remain eligible for residuals and bonuses after your first six months in the program, simply meet the minimum monthly-billed volume requirement and add at least one new paying customer each 12 months. Now, you will receive 6% Residual commission each month on your own sales (increasing up to 12% as your personal sales volume increases) AND 1% Override Residuals on the sales of your downline agents through 6 levels (except as noted above for those products that require "scaling" of commissions, either up or down).

There may also be situations where a personal purchase of a product or service may instantly qualify you for QR promotion. One such case is if you purchase a Founders Club Membership.

You are a Qualified Rep (QR)

Step #2 - Personally Sponsor 5 Qualified Reps Once you are a Qualified Representative (QR), simply sponsor additional QRs so you can start receiving Promotion Bonuses. After YOU personally sponsor just 5 QRs you will receive $250 ($50 per QR) and automatically promote to Cognigen's first leadership position of Area Representative (AR). Bonus payment is dependent on your maintaining the $100 minimum volume at the time bonus is earned.

You are a Qualified Rep (QR)

By duplicating this simple strategy you can build a significant income with Cognigen

Area Representative (AR)

Now, as an Area Representative (AR), simply sponsor a NEW representative and help them become an AR in the same manner as you did. You will receive $200 paid out incrementally for every person that does so. In addition to the 1% override commissions paid through 6 levels, you will also receive a Generational Override of ¼% for every agent in your AR organization from level 7 and below.

Bonuses and Generational Overrides are paid to unlimited levels!

You are an Area Representative (AR)

How to Promote to Regional Representative

To promote to Cognigen's next leadership position of Regional Representative (RR) you must develop 2 ARs anywhere in your AR organization, as in the example above.

Regional Representative (RR)

Once you promote to Regional Representative (RR), simply sponsor a NEW representative into your RR organization and help them start building their organization. Show them how to become a QR and then help them recruit 5 QRs so they can promote to AR in the same manner as you did. You will receive up to $300 paid out incrementally for every person that becomes an AR in your RR organization. In addition to override commissions paid through 6 levels, you will also receive a Generational Override of up to ½% for every agent in your RR organization from level 7 and below. Bonus payment is dependent on your meeting the $200 minimum volume during the month in which the bonus is earned. How to promote to National Representative (NR)

To promote to Cognigen's next leadership position of National Representative (NR), you must develop 2 RRs anywhere in your RR organization.

National Representative (NR)

Once you promote to National Representative (NR), simply sponsor a NEW representative into your NR organization and help them start building their organization. Show them how to become a QR and then help them recruit 5 QRs so they can promote to AR in the same manner as you did. You will receive up to $400 paid out incrementally for every person that becomes an AR in your NR organization. In addition to override commissions paid through 6 levels, you will also receive a Generational Override of up to ¾% for every agent in your NR organization from level 7 and below. Bonus payment is dependent on your meeting the $300 minimum volume during the month in which the bonus is earned.

How to promote to Global Representative (GR)

To promote to Cognigen's next leadership position of Global Representative (GR), you must develop 2 NRs anywhere in your NR organization and meet a minimum production requirement of $500 in monthly-billed volume.

Global Representative (GR) (formerly RVP)

As a Global Representative (GR), simply sponsor a NEW representative into your GR organization and help them start building their organization. Show them how to become a QR and then help them recruit 5 QRs so they can promote to AR in the same manner as you did. You will receive up to $500 paid out incrementally for every person that becomes an AR in your GR organization. In addition to override commissions paid through 6 levels, you will also receive a Generational Override of up to 1% for every agent in your GR organization from level 7 and below. Bonus payment is dependent on your meeting the $500 minimum volume requirement for the month in which the bonus is earned.

How are Promotion Bonuses Paid Incrementally?

After you become a QR and begin personally sponsoring QRs into your organization, a total sponsoring bonus of $250 ($50 per QR) is paid to you and $500 in promotion bonuses are paid incrementally to your upline when you become an AR. These promotion bonuses are paid to your AR, RR, NR, and GR in the following fashion. As YOU promote within the Cognigen Power Plan, these bonuses will be paid to YOU! As is always the case, all bonus payments are dependent on your meeting the minimum requirement for billed monthly volume appropriate for your position.

You are a Qualified Rep (QR)

How are Select Service Commissions Paid?

You will receive the following commissions on all personal "Select Service" sales after you have sold 3 Select services and have become a QR (or have become a QR through any other method). Payment of this commission in contingent upon you meeting the minimum sales requirement once you have reached month 6 in the program.

Home Security:	$100
Pagers:	$25
Cellular:	$25
Dish Network:	$50
Select Calling Card:	$20
Packages under $100/month :	1 Select or $25 (for existing QR's)
Packages from $100/month to /month :	2 Selects or $50 (for existing QR's)
Packages over $200/month:	3 Selects or $100 (for existing QR's)

Click here to download Agent Compensation Plan in Word format (.doc).

How Does Cognigen Compare?

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Even if you do not have much experience in network marketing, you will recognize right away the advantages and the potential of the Cognigen compensation plan. Let's allow the numbers speak for themselves!

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General Comparison
Agent signup fee:	$0	$299 (+$345 for AC)	$499	$698
Agent renewal fee:	$0	$180 ($100 for TD)	$49	$200
Monthly check admin fee:	$3	$3	$3	$3
Service providers:	35	1	3	3
Rates search tool:	Yes	No	No	No
Cost to Sell Local Service:	$0	+$99	n/a	n/a
Commission Comparison
Personal commission:	6-12%	2-10%	2-14%	2%
Level 1:	1%	0.25%	0.25%	1%
Level 2:	1%	0.25%	0.25%	1%
Level 3:	1%	0.25%	0.25%	1%
Level 4:	1%	0.25%	0.25%	1%
Level 5:	1%	0.25%	0.25%	1%
Level 6:	1%	1%	1%	1%
Level 7:	0.25-1%	5%	6%	1%
Level 8+:	0.25-1%	0%	0.5% at RVP	5%
Total residual possible:	14%	10%	14%	14%
Unlimited level bonuses	Up to $500	Up to $300	Up to $240	Up to $130
Qualifications:	$100 monthly revenue	20 new accounts	6 long distance or 8 of any	10 customers + 3 reps
Time limits to qualify:	Six Months	90 days	30 days	30 days

The data in the comparison spreadsheet is accurate to the best of our knowledge as of 1/1/2002. Cognigen is not responsible for any errors or omissions. » Join our winning team today! Risk FREE!   » More Information About the Cognigen Opportunity
» 10 Things to look for in the True MLM

Join us and start building your own profitable global business, right here, right now. All you have to do is chose an agent ID by which you wish to be identified in our database:

Here at Cognigen, we don't sell dreams - we make them come true. Just ask Joseph Kennedy, of Glover, Vermont:

Joseph Kennedy, Cognigen since 1996.

I would like to sincerely thank Cognigen for empowering me with the products, technology, and support that has enabled me to earn a Cognigen commission check exceeding $20,000!

Faithfully,
Joseph Kennedy
Independent Cognigen Agent

Join us and start building your own profitable global business, right here, right now. All you have to do is chose an agent ID by which you wish to be identified in our database:

Going Where No Other Company has Gone Before

They said it couldn't be done: a FREE and PROFITABLE internet marketing company that added value to agents, customers, and shareholders. The old paradigm of being able to cater to only two of the three has been broken, changed, and cast aside by the company that is Cognigen. Facilitating sales through technology is what the internet is all about, and we at Cognigen have successfully tapped in to this power to bring our customers the products with the best price points, to bring our agents more commissions and value than ever before, and to bring hundreds of customers per day to our service providers.



A good business deal is achieved when each party involved in the deal benefits from the relationship. Here at Cognigen, we are breaking the rules and creating technologies that benefit all three parties.

Our Humble Beginnings

Cognigen Networks, the brain child of Kevin and Laurel Anderson, began in 1992 as a family business in which Laurel and Kevin sold long distance from the privacy of their own home. Mr. Anderson, a seasoned computer scientist, envisioned and explored the idea of online marketing with a focus on long distance products. Laurel, with her degree in Psychology from UC Berkeley and her career history as a Human Resources specialist, added her unique "people friendly" touch to the business. Laurel invented the name "Cognigen", a combination of the Greek word Genesis and the Latin word "Cognito".

In 1994, Mr. Anderson invented and pioneered the concept of the "self replicating web page", which allowed him to build massive downline organizations very quickly in a number of telecom MLM (Multi Level Marketing) programs. At the same time, Cognigen had an agent force of more traditional non-MLM telecom marketing professionals; so Mr. Anderson developed web sites to support the operations of their agents. Kevin and Laurel built Cognigen into a strong, profitable business - providing a good living for a number of their independent agents. They grew a good deal more successful than some of the telecom MLM programs with which they had earlier been active.

In Kevin's own words:

"Until September of 1998, we avoided building our own Telecom MLM company, because, frankly, rates and commissions were just not good enough to develop an MLM program which was fair to all, and which required no money from agents who joined. From 1992 until September of 1998, Cognigen employed a commission model which is "traditional" in the telecom industry, focusing on high commissions for direct sales, but reserving little for override commissions. New tariffs have been introduced now, which has changed that; and we set out to build the world's best telecom MLM company."

1999-2001: The Building Phase

After Kevin had successfully developed the world's first fully-functional self-replicating technology and paperless provisioning systems, he sought professional help in building the business infrastructure that could support the weight of increased demand. The first members of Cognigen's full-time support staff were hired in 1998, which allowed Cognigen to improve order flow, customer support, and overall throughput. 1999 saw the hiring of a professional web architect/designer along and a seasoned network marketing professional. All of Cognigen's current web sites were overhauled, while the breadth of products offered was expanded to include a vast array of telecommunications and internet products. The year 2000 saw the successful deployment of Cognigen's unique network marketing program which is the first ever based on free online e-commerce. This year Cognigen also set out to establish an executive board of directors, truly an all-star team of the top telecom and business executives in the world. The technology arm of Cognigen (Cognigen Switching Technologies) was acquired to provide 1-plus switched long distance solutions that can be customized to fit the needs of any customer in the world.

Cognigen Networks now has the "back office" technology in place to make it easy for its agents and affinity partners to run successful e-business both online and in the real world. Because of the way Cognigen leverages internet technology to support it's growth in network marketing and affinity programs, Cognigen is positioned to become a billion dollar company with a remarkably small overhead in a very quick amount of time. The pieces of the puzzle are now in place.

Our Future in the Marketplace

There has never been more excitement about Cognigen than now, as Cognigen has positioned itself as the leading internet and network marketing company in the world. The infrastructure needed to support exponential growth is in place. The demand for Cognigen's products is massive, and growing daily. Cognigen's agents have inundated the internet search engines and classified ads promoting Cognigen's long distance, calling card, internet services, international callback, satellite entertainment, home security, computers/home electronics, and wireless services. Large affinity groups are raising money through the sale of customized telecommunications solutions provided by CST. Cognigen's web sites are currently being translated into three languages to support the demand from customers agents overseas. And we're still on the ground floor of building our empire!