TVI Express Review
January 7, 2010
Background
I’ve been hearing a lot of buzz about a company that launched in 2009 called TVI Express, or Travel Ventures International, so being the curious type that I am I decided to do some digging on my own to see what they’re up to and provide some unbiased third party insight into their product line, business plan and viability as a means to make long term income.
I’m not a member of TVI Express.
Company
TVI is a UK based company, but the corporate headquarters are in Cyprus. The founders are an anonymous group of investors from the UK, and try as I might, I can not find any information on who they are or the executive team. This is what I can learn about them from the TVI power point presentation:
“TVI is funded by a prestigious Business group having many successful Businesses worldwide.”
Details of the financial backing and executive teams is information that is often very useful in discerning the long term viability of the company, but without it doesn’t necessarily mean anything bad; but in the home based business arena, most legitimate companies go out of their way to at least let you know who the executives are.
The business was first launched in India and China in February 2009, and grew so fast they decided to expand into other markets, hitting the US in July of 2009. They are indeed generating a lot of traffic to their website. As I write this their global Alexa rating is 5,038 and their US rating is 2,107, with the traffic trends still slightly increasing
This Alexa ranking alone gives you the clue to the buzz that is being generated by this company; to get that kind of rating from Alexa takes a lot of traffic! I’ve found two third party marketing websites that are being used and driving significant traffic to the main TVI Express website, both produced by USHBB: getinandhangon.com and freehealthscare.com. They too have respectable and stable traffic, but neither is growing.
So it’s obvious that TVI Express has created a splash on the scene, has quite a few promoters of the business, but what exactly is their product line, and how does this all work?
Product
As a member of TVI, you pay a one time fee of $250 to $275 (depending on how you pay) to gain access to their discount travel club membership. Theoretically you then can save money on flights, lodging, transportation and accommodations, although in my research I’ve not found anyone willing to share that they get better deals than are already available on sites like travelocity.
Also included in your one time membership fee is a 6 Nights/7 Days Vacation in one of the 3-5 star Hotels/Resorts across the world. Details and any restrictions are not disclosed up front. On the surface this appears to be a solid value for the cost of membership.
Compensation
Let’s take a look at how to make money with TVI and their compensation plan.
TVI takes the $250 start up fees and distributes a portion of it between two “boards” each with 15 spots in it. The first board is called the “travel” board, and the second is called the “Express” board.
You start out in the “Travel” board, and as long as you’ve sponsored two people, once the board fills up, you’ve earned your first commission of $500, and earn a spot on the “Express” board which is where the big money comes from.
The express board works just like the travel board in that there are 15 spots, and as long as you bring two people personally from the travel board to the express board, when those 15 spots fill up you earn $10,000. This enticement for “easy” money is probably the driving force to their phenomenal growth over the course of 2009.
Once you have cycled through the express board, you get to re-enter another express board and start the process over again.
Do this a few times and you can be rewarded with override commissions ranging from 5% to 10% on your team.
Analysis
The money to fund the plan comes from the one time fee. This in and of itself is not a problem, since this is what most top tier direct sales companies do as well; companies like Global Resorts Network and Wealth Masters International charge a one time fee for the their training or membership, and the sponsoring distributor makes a nice commission for making the sale.
The difference with TVI Express, is that the sponsoring distributor doesn’t make money on these sales, but rather has to wait for the board to fill up in order to be compensated. On the surface seems to be an effort to encourage team work, but is there more to it?
In order for the money to keep flowing, and commissions to be made, new people must continually be brought in.
It appears TVI is treading close to ponzi scheme to me. From wikipedia we find the definition of a Ponzi Scheme:
“The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.”
I think TVI is hoping that since new distributors are receiving a nice 6 Night/7 Day vacation for their membership up front, that true value was delivered for their membership fee, and any compensation is just a bonus, and thus avoid getting shut down by the FTC…
I’m not a lawyer so I don’t know how to read this one.
If you choose to pursue TVI Express as a business, I’d do so quickly, and probably avoid having this as the only thing you’re working.
Just my two cents worth.
TVI Express News
December 17, 2009
Last updated: February 17, 2010, 8:39 am
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