Thursday, September 30, 2010

The "club" argument debunked... again


Some TVI Express shills are still hanging on by their fingernails by claiming TVI Express is a "club", like AAA Auto Club, that provides benefits to people, and company wants to make you rich if you refer a lot of people to it. So it's a "business".



First of all, what is the business model of a "club"? A club charges members dues every month (or whatever period is good) and in return provides benefits to its members (presumably at a cost lower than the membership dues received, so it can earn a net profit). A travel club can use the membership list to get discounts from actual travel providers as well as market to the members services and discounts that cost additional money. AAA's real money maker is actually insurance. Golf clubs charge dues to keep up the golf course and makes money at the pro shop for the balls, clubs, and other equipment.

There are "clubs" like supermarket and bookstore clubs that basically wants to give you discount in return for your personal information and purchase history tracking. They don't need membership fee because the benefits they give you cost them very little, but the potential increase in sales more than offsets the discounts they give. 

TVI Express doesn't charge per month, just a one-time fee of $250 + whatever. And for that $250, you supposedly get discounted trips through the travel portal, and the 7-day 6-night hotel accomodations somewhere and half the price of ticket. In reality, the travel portal, relabeled Travelocity obtained through wctravel.com, is worth ZERO, since it is virtually identical to Travelocity. It offers no additional savings. The trip itself is nearly impossible to redeem, all the announced hotels are in India, and now costs extra $150 USD "processing fees and taxes" to redeem. Thus, the $250 membership is NOT worth $250 at all. It is worth practically NOTHING.



It's like mail ordering an "exotic African musical wind instrument", and getting a plastic vuvuzela out of the box. It is perfectly accurate: it is African, it is a wind musical isntrument, and it is exotic, but it's worthless.

And here's the really troubling part... the "matrix cycler".



Let's say I tell you that you can make $1000 if you can convince 50 people each to pay $50 for a plastic vuvuzela. Would you do it? If I say if you only convince 10, you get your $50 back?

That's exactly what TVI Express had done. Offering something that's worthless, charge you money, and tell you that you can make the money back, and much more, if you drag a LOT of people buying the same worthless stuff.



And that is the very definition of a pyramid scheme, albeit slightly disguised by a WORTHLESS benefit package. 

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