Posted on October 30th, 2009 by Mr. Ryz
There’s currently a lot of buzz on the internet about a “travel company” called TVI Express – “Travel Ventures International.” Most of my personal contacts in the MLM industry are very familiar with the TVI Express fad, and quite a few random individuals have sent me e-mails asking for my honest opinion regarding TVI Express’ business opportunity component.
Well… You asked for honesty, and you’re going to get it…
TVI (Travel Ventures International) Express membership involves a one time payment of $250. The company uses a “cycler” payment method through 2 matrices to reward its members, and each membership position requires personal recruits before the position is eligible to cycle out at the top levels. Once you cycle through the first 2×4 matrix, you earn $250 + a travel voucher “valued at another $250″ and you then progress to next 2×4 matrix known as the “Express Board.” If you cycle through this board, you will receive $10,000 in cash and yet another travel voucher, which is supposedly worth $5,000, for a total of $15,000 worth of rewards.
Sounds good when you put it that way, doesn’t it? “Just join TVI Express, refer a couple people, and in 30-60 days you can find yourself $15,500 richer!” Unfortunately, the cycler payout system through matrix positions is NOT as glorious or lucrative as many of the advertisements or presentations would like you to believe. In fact, going a little farther, TVI Express is ringing scam bells that many of its own members have yet to notice.
Here are two of the main problems with the “cycler” model utilized by TVI Express:
— — —
1. Very little emphasis is placed on the product / service itself.
Most people are joining this program because of all the hype attached to the cycler payouts themselves. Some of them have absolutely no idea how the payment system operates; they just joined because people claimed they were “getting paid.” If you investigate any number of TVI Express promotional websites, forum communities, blogs, etc. you’ll notice that vast majority of them strictly embellish the opportunity to receive a sizable chunk of money, while hardly focusing on the benefits of the travel club membership.
Furthermore, I have yet to read one excited testimony about the fair value benefits of the travel vouchers offered for the $250 membership price OR through the matrix bonuses. The only issue that most (if not all) TVI Express members seem to be concerned about is the “fast cash.”
What’s the underlying problem here? Useful, competitive products / services are required for a MLM (Multi-Level Marketing) opportunity to be considered legal and ethical in most (if not all) countries. If the FTC decides to dig in to TVI Express while it grows in popularity, I believe they will find that most members strictly joined for the “money making opportunity” and pushed the travel services aside. In a situation such as this, the FTC would most likely rule TVI Express an illegal pyramid scheme because the products / services were neglected. Let us not forget the fate of YTB (Your Travel Biz), the former “travel business” that was shut down a year ago by the FTC and declared an illegal pyramid scheme because the vast majority of its members were not even using the discount travel services offered through the company.
MLM gurus will probably also notice that commissionable rewards from the TVI Express cycler are strictly paid out through new enrollments; NOT as a direct result of sales from the travel services. This aspect will most likely result in a “double-whammy” against the company, since the FTC highly frowns upon MLM businesses that don’t use sales volume from the products / services as a basis for commission payments.
At this point, some people reading this article so far may be thinking- “Why should I care about what the FTC thinks? TVI Express isn’t even located in the United States.” This may be true (which brings up another point about how suspicious TVI Express’ awkward locations and registration materials are for a “UK-based” company, though I’m not going to get into that so much since the technical business model is the subject of scrutiny here); however, if TVI Express continues grow with the same levels of momentum, you can bet that that the FTC will take notice and conduct an investigation.
If the FTC feels that TVI Express is operating within an unethical or illegal business model, they can order the company to cease it’s operations on all U.S. based soil and then declare all current U.S. citizen’s profits in TVI Express as “illegal gains.” From there, the FTC would most likely seize the illegal gains from TVI Express builders and participants that earned the most. Although this process may seem somewhat ruthless and hard to believe, the FTC has done it several times before and you can be sure they wouldn’t hestitate to go through the same motions once again if TVI Express grows out of control.
I can’t necessarily predict whether or not the FTC will intervene or not at this point. Quite frankly, though these actions are possible, I have doubts it will come to this. The FTC may not even have the chance to act, which brings me to the problem with cycler models…
—–
2. Cyclers are NOT built to last for the long run!
Even assuming that the U.S. or other governments don’t interfere with TVI Express as it stands now, eventually the program will collapse due to the inevitable consequences of market saturation. All cycler programs with matrix progression go through a period of tremendous excitement and exponential growth; however, this period is quickly followed up with a short dive off a steep cliff. Since cyclers involve a one-time payment for infinite months of membership, eventually the market runs dry of people with interest and capital to continue to feed the program and push current members through the matrix.
2 years ago, I actually joined similar cycler programs known as Diamond Cash Club and the Getaway Club in 2007, both of which proved to be cycler scams. I didn’t fully understand the concept behind the cycler payplan at the time, or I would have never even considered involvement with either of them. Both programs proved to be very popular for well over 1 year, yet if you searched for current discussion about either of these programs now in 2009, you’ll essentially find nothing more than gravestones marking the excitement that died off after 2008. Both sites disappeared once saturation struck their cycler models. The owners of each program most likely walked away with millions of dollars, while the majority of members were stuck sitting in the first matrix board – No progression, no profit, and nothing to show for their membership fees (or “investment” as some called it).
In the aftermath of cyclers, very few people as a percentage of all members can honestly claim they made a profit. Unfortunately, the payment structure is designed to immediately reward the owners of the scheme, but only payout previous members once an entire new wave of newbies come to the table with $250 each.
But isn’t $250 the maximum that anyone in TVI Express can lose? NO – Not necessarily!
You may look at the TVI Express and scenario and think – “Well, it looks like losses are capped at $250.” However, that is not technically true! Many teams and building networks actually encourage their new members to purchase multiple positions for $250 each, without even fully explaining to them that each new position will require even more recruiting efforts before it can be pushed out to a level of profit. Therefore, you will eventually hear horror stories from people along the lines of – “I spent thousands of dollars in TVI Express and I haven’t seen a penny of profit yet! What do I DO?!”
In fact, during the past week alone, two of my business partners mentioned that they know people that have purchased several positions in TVI Express with nothing to show for it. While one of these individuals only purchased 3 positions, the other spent over $10,000 for TVI Express matrix board spots! Unfortunately, unless they are expert marketers or heavy recruiters, neither will ever see a profit.
— — —
It appears that many people who joined TVI Express did so because a recruiter or marketer led them to believe that they could simply pay $250, quickly cycle to the top, and then grab a quick $15,000. In other words, they don’t even understand how their own business works! What many of these people were NOT told is that successfully cycling and progression to profit requires a great deal of recruiting and strategic team placement. It’s these people I feel sorry for the most, because soon enough, people in TVI Express will realize that their $250 membership isn’t moving. TVI Express momentum will die down, and their matrix positions will be stuck in the mud. At this point, I expect many people will also dub the program a “SCAM” and hang their heads with disappointment.
Once again, I would agree that TVI Express has drawn an exceptional amount of attention when compared to the average internet opportunity today. However, the downfall of cycler programs is inevitable, and I fear TVI Express has essentially reached the height of its popularity.
My advice to MLM leaders and all respectable marketing networks – if you’re currently looking at TVI Express and trying to debate whether or not you want to involve yourself and your team with it’s “business opportunity,” turn around and don’t look back! As stated earlier, major recruiters may find themselves at the top of the final matrix and earn some money; however, it will come at the cost of leading several other people into a program that will only leave them $250 poorer. As a responsible MLM leader or marketer, you should be recommending programs that are built to last for the long-term and structured in a legal, profitable way for all members. TVI Express does NOT pass the test! If you have your heart set on a Travel MLM company, find another!
In conclusion, TVI Express and its red flags may not necessarily relate to the typical ponzi scheme aspects that the Ponzi Scheme Alert organization usually attempts to address, but it does show all the signs of the cycler “get-rich-quick” scam and would most likely fall under the “illegal pyramid scheme” definition by FTC standards.
— — —
During the discussion of some of my former articles warning about other dangerous programs, I was asked by many people if I knew of any respectable, profitable opportunities as substitutes. Therefore, I will offer an alternative to those interested, but I will not be discussing it in great lengths here since the topic is TVI Express:
If regards to TVI Express, if anyone reading this article is angry about their failure to receive a profit and looking for a long-term option – or maybe you passed on joining TVI Express and are looking for something profitable in general – I do work for a network that provides passive income opportunities to all it’s members, even if they never recruit a single sole. The business model is ethical, and does not consist of any ponzi scheme, pyramid scheme, or other scam based elements. You can contact me here for more information: Info@PonziSchemeAlert.com
— — — — —
- Mr. Ryz
www.PonziSchemeAlert.com
Tags: cycler scam, Diamond Cash Club, FTC, Getaway Club, ponzi scheme, pyramid scheme, Travel MLM, Travel Ventures International, TVI Express, TVI Express scam, YTB
