So today, I got pitched to join a "sales network" called World Ventures. The introductory video felt extremely familiar to me, in that it was high on anecdotes and low on raw data. The video was pitching a "discount" travel site called DreamTrips that cost $200 to become a member of plus a $55/month "dues." Oh, but the fees you spent to sign on and stay on give you points that can be used to make their "discounted" vacations "even cheaper."
But that's not all! Because I was invited to join their sales membership, at an intial $100 with an $11/month membership! And if I referred 3 people in the first month that joined, I'd get $100 cash. If I referred 4 people who kept the service, I'd have my monthly fees waived (it's unclear from the flyer if this waives the monthly sales membership fee or the DreamTrips dues + the sales membership fees, I'm guessing it's just the former). If I referred 6 signups in the first 4 weeks, I'd get $350 cash, and if I either referred 20 people who signed up or got 4 people under me to each refer 4 new people, I'd qualify for a Silver BMW Bonus! Also, I'd get a percentage commission on all product dues I sold.
So, I told the person pitching this to me (whom I've never met before, he contacted me after I posted on a mutual friend's Facebook page how I, like him, are currently struggling to find honest work for honest pay,) that I wanted to do some personal research before saying yes. He told me how "You can't believe everything that's written on the internet" and pushed what a great opportunity this was, that it "was not a get rich quick scheme" and "would give you as much as you're willing to put into it." (Note: This is not the man's main job. He is a full time realtor, and I think he genuinely believes this is worthwhile... though he's only been a member a few short months.) All things I've heard before, from other MLM pitches, but when I ask for the hard data, the real numbers of who's making money and where the profits are coming from, he didn't have that information. He had a sheet labelled "Annual Income Disclosure Statement" that had a chart showing various high, low, median, and average commissions, and what percentage of their reps were in each category, but by reading the full sheet (which I doubt many do) I noticed a disclaimer that said the figures to not represent the profits, because it does not account for how much that person(s) were spending to bring in that much money.
But now that I'm home and thinking about it, let me go back to that first sheet with the costs and rewards breakdowns:
1) Cost to me for the first month of being in this: $366
2) Dollar amount of sales I'm required to make in order to get the $350 cash: $366 x 6 = $2,196 and I MUST make those sales within the first 4 weeks to qualify.
3) Dollar amount of sales I'm required to make (or facilitate the making of) in order to qualify for a Silver BMW: $366 x 20 = $7,320. I'm guessing there's MORE requirements not stated for the Silver BMW.
I also looked up the company on Ripoff Report, and Better Business Bureau. They aren't registered with BBB, but have a "C" rating and a lot of complaints logged about issues surrounding billing and refunds. Ripoff Report confirmed my suspicions, that this is a Multi-Level Marketing system that has wiggled its way beyond the old Pyramid Scheme laws by offering an actual product (though I also found reports that Expedia, Orbitz, and Priceline can beat their prices when you count your "points" as dollars, which they really are).
I googled the names of the founders mentioned in the promo video, and they have been responsible for other MLMs that have come and gone, leaving them rich and large wakes of people at the lower levels at a net loss.
So while I originally meant this as a post to ask others if this was yet another scam working under P.T. Barnum's classic credo that "It is morally bankrupt to allow suckers to keep their money," I think I've answered it for myself by doing some surface-level web searching and basic mathematics.
But if you have any additional information to add, I'm fully willing to give it a read.
But that's not all! Because I was invited to join their sales membership, at an intial $100 with an $11/month membership! And if I referred 3 people in the first month that joined, I'd get $100 cash. If I referred 4 people who kept the service, I'd have my monthly fees waived (it's unclear from the flyer if this waives the monthly sales membership fee or the DreamTrips dues + the sales membership fees, I'm guessing it's just the former). If I referred 6 signups in the first 4 weeks, I'd get $350 cash, and if I either referred 20 people who signed up or got 4 people under me to each refer 4 new people, I'd qualify for a Silver BMW Bonus! Also, I'd get a percentage commission on all product dues I sold.
So, I told the person pitching this to me (whom I've never met before, he contacted me after I posted on a mutual friend's Facebook page how I, like him, are currently struggling to find honest work for honest pay,) that I wanted to do some personal research before saying yes. He told me how "You can't believe everything that's written on the internet" and pushed what a great opportunity this was, that it "was not a get rich quick scheme" and "would give you as much as you're willing to put into it." (Note: This is not the man's main job. He is a full time realtor, and I think he genuinely believes this is worthwhile... though he's only been a member a few short months.) All things I've heard before, from other MLM pitches, but when I ask for the hard data, the real numbers of who's making money and where the profits are coming from, he didn't have that information. He had a sheet labelled "Annual Income Disclosure Statement" that had a chart showing various high, low, median, and average commissions, and what percentage of their reps were in each category, but by reading the full sheet (which I doubt many do) I noticed a disclaimer that said the figures to not represent the profits, because it does not account for how much that person(s) were spending to bring in that much money.
But now that I'm home and thinking about it, let me go back to that first sheet with the costs and rewards breakdowns:
1) Cost to me for the first month of being in this: $366
2) Dollar amount of sales I'm required to make in order to get the $350 cash: $366 x 6 = $2,196 and I MUST make those sales within the first 4 weeks to qualify.
3) Dollar amount of sales I'm required to make (or facilitate the making of) in order to qualify for a Silver BMW: $366 x 20 = $7,320. I'm guessing there's MORE requirements not stated for the Silver BMW.
I also looked up the company on Ripoff Report, and Better Business Bureau. They aren't registered with BBB, but have a "C" rating and a lot of complaints logged about issues surrounding billing and refunds. Ripoff Report confirmed my suspicions, that this is a Multi-Level Marketing system that has wiggled its way beyond the old Pyramid Scheme laws by offering an actual product (though I also found reports that Expedia, Orbitz, and Priceline can beat their prices when you count your "points" as dollars, which they really are).
I googled the names of the founders mentioned in the promo video, and they have been responsible for other MLMs that have come and gone, leaving them rich and large wakes of people at the lower levels at a net loss.
So while I originally meant this as a post to ask others if this was yet another scam working under P.T. Barnum's classic credo that "It is morally bankrupt to allow suckers to keep their money," I think I've answered it for myself by doing some surface-level web searching and basic mathematics.
But if you have any additional information to add, I'm fully willing to give it a read.
via JREF Forum http://ift.tt/1b09Zhf
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