Re PM: tavy, IMO that company runs a pyramid marketing scheme. Pyramids can operate for many years until they run out of suckers or the government decides to shut them down.
Financials show annual revenues last year were mostly derived from current and new members (~$42.7M not including franchise fees) rather than from selling travel services (~$7.4M). As typical w/ all MLM’s, they sell a dream leading folks to believe they can make a meaningful income. Reality is only a tiny percentage ever do. In this case, most of their referring travel agents (RTAs) are probably losing money.
According to the 10K, company paid out $4.89M in travel commissions and $29.9M in marketing commissions. On average, each RTA is generating ~$123/year selling travel services and receiving $82/year in travel commissions plus $500/year from marketing commissions (% of monthly fees paid by those lower down in his section of the pyramid). Not including the initial license fee of $449.95, most RTAs pay a recurring $49.95/month. So, one pays $599/year ($49.95 x 12) for the opportunity to earn on average $582/year (net loss: $17). This doesn’t include expenses incurred from training, meetings, conferences, etc.
Earnings are never this evenly distributed. The majority are probably losing $500+ per year while a tiny minority at/near the pyramid’s top are making out like bandits. That's normally how it works.
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