Well, it's time to explain once and for all the problem with bogus math.
Rudy's problem is that he had NOT ACCOUNTED FOR COST OF TRIPS AT ALL.
His entire argument rested upon his mathematical "proof" that we critics somehow had gotten it wrong, that the rate of cycling out is not 1/225, but 1/8, and thus TVI Express is sustainable.
His main problem in his math is he neglected to account for the cost of the trips. According to Rudy's view, they don't exist. They cost TVI Express NOTHING. This threw his income / expense calculations completely off, which is how he came up with "TVI Express can pay up to 92% of every dollar back". I guess if he counts the trips as "payback" he *may* get away with that one...
His second problem is he only counted ONE board, but you have to count both.
Then he cites the 72% figure on TVI Express website as if it's gospel. Again, the 72% figure is unproven, has no figures backing it, so it is not fact, but dogma.
Although he is somewhat correct in pointing out a mistake... Once a pyramid is established, it takes 8 new members to "cycle out" the top member. However, this only serves to prove that TVI Express cannot function as it simply CANNOT take in enough money based on the way it is organized.
Let us take Rudy Phan's model and try to process it properly, by estimating the trip cost at $200 USD (for a 7-day 6-night vacation and one-way airfare for 2? That's too cheap even in India! But let us assume that they can do it somehow...) And at the very beginning...
* Let's say the traveler board has 7 members so far, and there is no express board...
Income = 7 * 250 = 1750
Expenses = 7 * 200 = 1400
Net = 350
* Now 8 new members join
Income = 8 * 250 = 2000
Expenses = 8 * 200 = 1600
Net = 350 + 400 = 750
* The top guy is cycled off, and board splits in 2, 1 guy in express board
Income = 0
Expenses = 250 (delayed loss of income of 250 onto next step, the eVoucher)
Net = 500
* 16 new members join
Income = 16 * 250 = 4000 - 250 = 3750 (delayed loss of income from previous step, redemption of eVoucher)
Expenses = 16 * 200 = 3200
Net = 500+ 500 = 1000
* Two top guys cycled off, four boards, 3 guys now in express board
Income = 0
Expenses=2x250 = 500 (and delayed loss of $500)
Net = 500
* 32 new members join up
Income = 32 * 250 = 8000 - 500 = 7500
Expenses = 32 * 200 = 6400
Net = 500+1100 = 1600
* 4 people cycle out (total of 7 in Express board)
Income = 0
Expenses = 4*250 = 1000 (and delayed loss of 1000)
Net = 1600 - 1000 = 600
* 64 people join up so someone can make their $10000
Income = 64 * 250 = 16000- 1000 = 15000
Expenses = 64 * 200 = 12800
Net = 600 + 2200 = 2800
* 8 people cycle out (now 15 in express board)
Income = 0
Expeses = 8 * 250 = 2000 (and delayed loss of 2000)
Net = 2800 - 2000 = 800
* Express board cycle out
Income 0
Expenses = 10000
Net =800-10000= -9200 NEGATIVE 9200
Thus, TVI Express can ONLY CONTINUE TO RUN if it does NOT redeem all the trips it promised, and/or NOT pay out all the bonuses it promised. It simply does NOT have enough income to fulfill its promises. It can redeem stuff for SOME of its members, but eventually it will collapse. It tried to stave off the collapse by instituting half-sizing the trips and charge $150 for "taxes and processing fees" to redeem the trips, but "the writing had been on the wall" from the very beginning.
Let us keep playing... What would happen if another 128 people joined the scheme?
*128 new members join up
Income = 128*250 = 32000- 2000 (eVouchers) = 30000
Expenses = 128 * 200 = 25600
Net = -9800 + 30000-25600 = -5400
* 16 people now cycle out of traveler board
Income = 0
Expenses = 16 * 250 = 4000 (delayed loss of 4000 next cycle)
Net = -9400
* Now 2 more will get their $10000, yes?
Income = 0
Expenses = 20000
Net = -29400
As you can see the number only gets worse as you continue playing. And that's just the first few "big payouts". Keep in mind that the so-called "re-entry" into the express board only makes things worse, since there is no additional income to fuel the additional $10000 payouts.
So how did TVI Express got this far?
1) It has made it as difficult as possible to redeem the eWallet. It does NOT pay in cash, but rather, eWallet, which cannot be spent. Convert that into ATM card? Impossible. Convert that into bank balance? Must be "applied" then "approved". The more eWallet money they hold, the less real money they pay out.
2) It has made it as difficult as possible to redeem the trip. They keep blaming one upgrade after another, then unannounced outages, then started charging $150 for "taxes and processing fees", then half-size the trips. The less trips they allow to be redeemed, the more money they keep in their pockets.
3) The vast amount of lies both it and its distributors have told, esp. Tarun Trikha, who quietly disappeared from the "advisory board" of TVI Express recently. In fact, the entire advisory board is likely a sham. Why? TVI Express has been ILLEGAL in China since June or July 2009. Yet advisory board still have two Chinese members on it, even today. Why have advisory board members in a country where TVI Express is ILLEGAL? It's only to keep up appearances.
Very likely there is only one REAL member of advisory board: Tarun Trikha, who's also owner/CEO/puppetmaster. Everybody else are just accomplices.
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