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I have been teaching people how to avoid pyramid schemes and scams for years. You only need to know some basics to avoid these pyramid schemes and scams. It’s like having your own crystal ball.
“YourTravelBiz.com operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else,” Attorney General Brown said. “Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam.”
The above quote comes directly from the office of the Attorney General for the State of California. You can view the news release here…. http://ag.ca.gov/newsalerts/release.php?id=1596&
Knowledgeable people in the network marketing industry immediately reported, YTB, or Your Travel Biz, as being a pyramid when they first looked at the program. The same was true of Burnlounge, another publicly traded illegal pyramid. When they were sued, they terminated the MLM program within days in hopes of surviving. Note that YTB had just last month announced plans to change to a franchised based pay plan. See http://www.ytb.com/downloads/franchiseInfo.pdf
What should be of concern to many people, is that the compensation plan which is the reason the company is being called an illegal pyramid scheme is very similar to many other network marketing companies. If you look at companies with products or services with a very low margin of profit, you will likely see a similar compensation plan.
So if you are in or planning to join a program, be sure to check it out. Types of companies with low profit margin products and services using a compensation plan that pays mostly for recruiting of people include many MLM travel companies, MLM electric service companies and technology based companies such as long distance service.
The bigger each of these companies get, the more people get scammed. The more people that get scammed, the more complaints come into a state’s Attorney’s General office. The more complaints, the more likely it is that the AG will investigate. With a presidential election year in progress, fewer complaints are needed to catch the attention of the AG’s.
For more information on this subject, go to the website of a well known MLM distributor rights protector, Rod Cook. The site is MLM Watchdog
Check out other articles while you are there. You just may be surprised what is going on in this industry in plain view that you should know about.
Network Marketing is the greatest industry in the world. We just need to eliminate the pyramids and the scams. It all comes down to your education. Get one before it costs you for not being educated.
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August 7th, 2008 at 4:50 am
Across the board is the MLM model in travel viable? Do any of the MLM travel companies really book enough travel to create a sustainable business? Humm… With YTB’s early success and a lot of copycats who is the next to fall? World Ventures, Traverus, someone else?
These other companies are going to have to move quick to add other products or services to increase sales volumes so they can pay commissions to justify the monthly charges.
August 12th, 2008 at 2:15 pm
Thanks for the great comment Bob. With YTB being a publicly traded company, we knew for a long time that very little travel sales were being made. I don’t have the same info on the other travel MLM’s, but we can see that it would appear that all the money is being made by sponsoring people. How much travel do you get when you sign up? First problem right there. I see trouble ahead for all of them if they don’t act right now.
August 15th, 2008 at 6:09 am
These travel companies seem like a good idea, no inventory to fill up your garage,or spare room and people do like to travel. I was in YTB for almost 3 years
and sold one airline ticke and no downline.. Then I found MFF before I made another mistake, almost got into Travarus, but I remebered Michael saying something about a matrix, had a coaching call with Michael just in time. When will these companies learn you need to sell travel?