Saturday, 23 May 2015

Will you make money from WorldVentures? No.

WorldVentures is a pyramid scheme masquerading as a Multi-Level Marketing scheme according to at least one national regulator.

Like many other MLMs that try to appear legitimate they've been forced by various countries to post income statements that illustrate what their distributors actually earn from their business. Note one point though. These statements only talk about income, they never mention profit. These figures exclude all the costs associated with running the business like transport, phone and internet bills.

The most recent Annual Income Disclosure Statement I could find for WorldVentures covered their US operation in the year 2012 and it makes sad reading.

Firstly 77.51% of their representatives made no money at all. Nothing. Zero.

For their "Active Representatives", who comprise 82% of the people who made money, their average annual income from WorldVentures was a measly $102. That's roughly P85 per month. And remember that's income, not profits. It's not money you can spend.

The next group up the pyramid were "Qualified Representatives" who comprise 14% of the people who make money. They made an average of $614 per year, P500 per month, again income, not profit.

The most important figures are about the high earners. Like all pyramid schemes the lesson is to be at the top. The top 3.5% of the people earning money from WorldVentures made 84% of all the money. Worse still, if you include the people who made no money at all you get the real figure. 84% of all the money flowing through the WorldVentures is taken by the top 0.8%.

And those lowest level earners, the "Active Representatives"? They're 82% of the earners but between them they only earn 7.8% of all the money.

The lesson is simple. If you own WorldVentures then you're rolling in money. Otherwise all you're doing is handing over your cash to those people and not seeing anything in return.

This is how pyramid schemes work. Don't be fooled.

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