Sunday 25 December 2016

World Ventures will still lose you money

World Ventures is a pyramid scheme that we've mentioned many times before.

Recently it updated its brand and started calling itself "Dream Trips" but it's still the same old thing.

World Ventures publish an "Income Disclosure Statement" every year and it makes interesting reading. Like all pyramid schemes the majority of the money is earned by a very small proportion of the people, the ones at the top of the pyramid.

The statement for the USA in 2015 can be seen here and you're welcome to analyse it for yourself. However, if you don't have a calculator to hand, here are some of the highlights.
  • Referring to their Independent Sales Representatives (“IRs”), they report that "22.24% of all IRs earned a commission or override, while 77.76% did not". In simpler terms, three quarters of all their American recruits made nothing from the scheme. Nothing at all.
  • Two thirds (actually 68.7%) of all the income is earned by the 3.7% at the top of the pyramid.
  • 84% is earned by the top 19%. To put it another way, 81% of the recruits who earn money have to share just 16% of the money.
  • If you're at the top of the pyramid you're doing well. The 1 in 14,000 people at "International Marketing Director" level earns an average of $409,280. The 1 in 20,000 described as "National Marketing Director" level have an annual income of $238,645.
  • However, of the small proportion who made some money, the average income was $1,348.82 but that's not a good indication of what the average recruit will earn because the figures are distorted by the tiny proportion at the top who earn a fortune. The median income level is a much better illustration of what you can expect to earn. That's a meagre $150 per year.
But don't forget two important things. Firstly, like I mentioned above, only a quarter of all the recruits earn anything. These figures just refer to the quarter of victims who earned anything at all. 

More importantly, these amounts refer to income, not profits. These figures are before the recruits took account of all the money they had to spend on travel, accommodation, electricity, internet access and the coffee and drink they had to buy when they did their best to recruit other victims into this scam. I suspect that most people earn less than they spend trying to make the money. They lose money.

In short, please don't waste your time, effort and money with World Ventures or Dream Trips.

No comments: