Is World Ventures a Pyramid Scheme? What You Should Know
Buying a World Ventures membership isn’t a bad idea if you are a travel lover, but if you are looking into the business opportunity that they offer then there are definitely some things you should know.
I have been getting a lot of questions about this company, such as are they a scam?…. is World Ventures a pyramid scheme?… There is a lot of controversy surrounding their recruitment style business model and that is what I will be going over today. So if are curious about the business opportunity that exists here but worried that it might be an illegal pyramid scheme, then I am writing this for you.
Disclosure: I am in no way affiliated with World Ventures. So this review is going to be as unbiased as possible. I’ll be going over a few things that they don’t want you to know.
World Ventures Overview
There’s a good chance that you already know a bit about his company but I’m going to do a brief overview anyway, for those that don’t know.
World Ventures is a company in the travel industry that was founded by Wayne Nugent and Mike Azcue. They provide discount travel packages to members basically.
That is all good and dandy. Who wouldn’t want a discount travel package?
Why People Call This a Pyramid Scheme
The “shady” side of their business comes from their direct sales marketing method along with their mlm compensation structure. You see, anyone can become a representative for the company and start selling memberships and earning commissions. And these representatives can also make money by recruiting other reps in and earning commissions off of their efforts.
It is this recruitment style hierarchy that brings up the questions of whether or not this is a pyramid scheme.
How This Could Be a Pyramid Scheme
For World Ventures to be considered a pyramid scheme its revenue would have to be overly reliant upon recruitment of new representatives rather than on product sales to the general public.
A legitimate mlm will focus on product sales adequately while a product-based pyramid scheme still will have products and all, its just that much of the revenue comes from recruitment alone and sometimes from forcing recruits to buy products.
You can learn more about pyramid schemes vs mlm’s here.
So the real question here is whether or not WorldVentures relies too heavily on recruitment. And to answer this I’m going to go over their compensation plan…
The Compensation Plan
The comp plan is a binary plan, meaning there is a right side and a left side.
The goal here is to recruit as many people in as possible. And ideally you want all of those recruits to be representatives that purchase the Gold Membership.
You will still get paid commissions for making membership sales to customers, but if you make a membership sale and the person becomes a representative, you will then earn from the membership sale as well as the future sales of that rep.
You will also earn residual income because these are memberships. The people you recruited will be paying a fee every month and you will earn part of that fee.
The amount you earn depends on your rank within the company. Before you reach the rank of Director you will earn $20/mo from each recruit and after you reach the rank of Director you will start earning $30/mo. And again, this is for if all these recruits are buying Gold Memberships.
I’m not going to get into all the ranks within this mlm. All you need to know is that moving up the ranks is all about recruitment. Once you get a certain number of recruits in your downline you then move up to the next rank, and the process continues.
The comp plan also gives out bonuses for cars and houses to those who make it to the top.
If any of this is confusing you can watch the short video below that I found on this compensation plan. I do not own this video and it is for educational purposes only. Also, it was made by a representative so don’t get too sucked into it.
So Is This a Pyramid Scheme?
The answer is that no this isn’t a pyramid scheme although it is shady. The reason is because World Ventures does put a lot of focus on the products and many members are just customers, not reps. So there is definitely a good bit of revenue coming from the general public.
The problem here is that the comp plan gives too much incentive to go out and recruit. This leads to people buying into this business to make money instead of for the actual product sold. And this also leads to reps recruiting others in by telling them about all the money they can make, rather than trying to sell them on the actual product.
So there is definitely a shady side to this business and it often leads to deception and trickery to get people to buy in, but its just not a pyramid scheme.
The Reality of This Business
The reality of World Ventures, or any mlm for that matter, is that they are NOT easy to make money in. In order to make good money you have to recruit like crazy and climb your way to the top. Build up a big downline and make money off of those beneath you. If you don’t then you won’t make much and will probably fail.
To prove this point you can take a look at the official income disclosure for 2015. I know its a bit old but its the most recent I could find and it proves my point.
As you can see 77.76% of Reps made NO money at all. These are people that signed up as representatives to actually make money.
And of the 22.24% that actually did make money, 21% made less than $1,500 for the entire year! Only the top 1% or so actually make good money with this company.
Final Thoughts & What I Recommend
Honestly World Ventures seems to be one of the worst mlm business opportunities I have seen in a while. I mean their income disclosure is just horrific. All mlm’s are hard to make money in but this one is insanely difficult as the numbers prove.
I wouldn’t recommend anyone join World Ventures as a representative. If you are going to join for the travel deals then go for it, but other than that it doesn’t seem to be worth it.
The only people that make good money with opportunities like this are those that are really good salespeople. You have to have that salesperson type personality.
Personally, I don’t have anything even close to a salesperson type personality and there is no way I would make it in this mlm business. I just wouldn’t be any good at recruiting. If you are like me then I would recommend you take a peek at how I make money online.
I make a living working for myself online, which I think is a pretty awesome job. You can learn more about it by clicking the link below that will take you to a post I wrote.
In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂