TVI Express uses voodoo math to claim it's legal

Image via Wikipedia

Frankly, I'm getting a little tired of TVI Express bashing, because it's so obvious. However, here's a fellow Blogger that seems to have fallen under the TVI Express spell and uses funny math to prove his own point. Let's analyze some facts.

Let's say FIRST GUY is the 1st guy on the board. He's Level 1.

He recruits 2 more people. He's now level 2, There are 3 people in the traveler board.

Each of those 2 people at level 1 recruits 2 more people, pushes FIRST GUY to level 3. There are now 7 people in the board.

If the guys at the bottom (4 of them) each recruit 2 more... You now have 8 people at the bottom, the "First Guy" is now level 4... cycles out of the Traveler's board.



Don't believe me? This is what one TVI Express member posted on his blog:



(borrowed from http://www.tviexpresstravel.info)

Presumably, that's a real screen-capture of the TVI Express "member genealogy".

I refer you to the diagram at Wikipedia, of the 8-ball variation of Ponzi/ Pyramid scam:


(ref http://en.wikipedia.org/wiki/Multilevel_pyramid_scheme#.228-ball.22_model)

Don't they look identical?

Keep in mind that you have to cycle through TWO BOARDS, a "traveler board", and an "express board". let's just call it for for it is... The express board is the tip of 8 other traveler boards. So the board has total of EIGHT levels. When you cycle through all 8 levels, you get $10000 + $5000 in some sort of a voucher.

Or put it plainly, this is a double-eight-ball scam.

So there are actually 255 people in the boards, including you. Each of them paid $250 (or so). Let's see, that's 255 x 250 = 63750 income for them. The company will pay out 9 traveler board cyclers (First Guy, and 8 more that makes up the bottom tier of express board), which is, well, 9 x 250 = 2250, and 2250 in vouchers. Then there's the big payout, $10000 cash, and $5000 in vouchers.

Total cash input: 63750
Total cash output: 12250 + 5250 in vouchers.
Profit is $51500

Subsequent boards will earn a bit less... $5250 less, as those vouchers will be exchanged for new recruits. So income will become $46250 for subsequent boards.

Okay, now First Guy cycles out of Express board and pockets his $10000. Now we get Second Guy and Third Guy at two express boards.

Let's say another 256 people (128 per side) joined to cycle them out of the express board. 256 x 250 = 64000, subtract the 5250 in vouchers, minus the 20000 for the second and third guy, and the new traveler board cyclers (16 of them now, for $4000). Company takes in 34750, with $14000 vouchers in circulation.

Let's do one more generation, just for grins.

There's now 4 boards, as I'm tired, I'll just call them A, B, C, and D. Let's assume that another 512 people joined to cycle them out.

Income is 128000 - 14000 vouchers in circulation, or 114000.

Subtract $40000 for the 4 guys getting out, 32 new cyclers @ $8000, company income is $66000, with $28000 vouchers in circulation.

So now you understand... That's how TVI Express promise "residual income" in addition to the huge payout. They are paying out some of the money coming in, but eventually, when people stop coming, a LOT of people will lose their $250. Remember, you don't get paid until you get 14 people under you. So even if you just have 13, you're not getting paid. Which means when it finally goes down, 14 out of 15 will not get paid.

Plenty of people are claiming that "TVI Express is NOT a Ponzi / Pyramid scam because it does NOT pay out more than it takes in!" Well, that doesn't mean it's legit... it just mean they are even MORE greedy than your average pyramid scammer!