Lie #5: TVI Express is not MLM
This lie is often seen in Indonesia where multi-level marketing (MLM) or network marketing companies are required to get a special "multi-tier" license called the SIUP, instead of the general business license. It can also been seen in countries where MLM requires special registration with certain agencies and thus is subject to more regulations. TVI Express distributors in those countries, when challenged on why they do not have a MLM license, will claim that they are not MLM, and thus is not subject to MLM.
Their "evidence" generally falls into two types:
a) TVI Express is really a franchise that is very cheap to buy into
or
b) TVI Express is really a club with a referral program
The evidence they gave varies, but usually they involve their own explanations and interpretations on what they think a "franchise" or a referral program is.
TVI Express itself claims to be MLM / Direct Selling / Network Marketing
TVI Express refers to itself as network marketing / multi-level marketing, and indeed, have a section called "expert watch" on network marketing. Just a search for "network marketing" within TVIexpress.com shows at least ten places where "network marketing" was referred. If you add similar terms like "direct selling" or "multi-level marketing" the the conclusion is inevitable: TVI Express itself says it is MLM.
Network Marketing — also Direct Selling or Multi Level Marketing is the most powerful system of free enterprise in our modern world, and it is the business model that TVI Express chose from the beginning.
--http://www.tviexpress.com/financial.php
That is pretty conclusive, isn't it?
TVI Express is NOT a franchise
In a franchise, you buy the rights to a business system and the name brand. If you buy a Burger King (tm) franchise, you get access to corporate training, ability to use their logos, and more, but you also agree to abide by their laws. There is nothing about "sponsoring people"
Yet there is "sponsoring people" in TVI Express. It is right there in their FAQ #5. Thus, TVI Express cannot be a franchise.
Also, if TVI Express is franchise, WHAT DOES IT SELL? It does not even have a product page!
Finally, it is up to the local branch to be compliant with local laws in a franchise. Burger King (tm) in Hong Kong will have different law compliance than Burger King (tm) in California or Burger King (tm) in Paris. Each must have their business license. If each person in TVI Express is a franchisee, then EACH PERSON MUST APPLY FOR THEIR OWN BUSINESS LICENSE!
This is a fallacy of equivocation. They are trying to redefine the word "franchise" to fit TVI Express.
TVI Express is NOT a "club" with a referral program
First of all, the logic is already absurd... Who joins a club for an "opportunity" to earn $10000 in weeks?
Second, why are TVI Express participants called DISTRIBUTORS? It's right there on the homepage, lower right hand corner. What do they distribute?
Third, where did the word "club" appear in TVI Express at all? Here's official language from the website:
At TVI Express, we provide exciting holiday packages, vacation club memberships, and fun-filled adventures to customers just like you. Through our exclusive club, we strive to give our members a world of choices through an attention to detail and impeccable customer service.-- http://www.tviexpress.com/overview.phpThe language is unclear. Is TVI Express itself a club? Or is it providing OTHER club memberships to members? Why would it refer to itself as "network marketing" elsewhere in the same website? And why would it be promising its members/distributors opportunity to earn thousands of dollars on the front-page?
Do you see the devilry here? TVI Express throws in so many different explanations that different people will find what they want and invent their own explanations. However, if you take the overall picture, you'll find that it is a confusing jumbled mess offering inconsistent explanations of what it is. It has referred to itself as "travel club", "network marketing", "income opportunity", "event company", "home-based business", and more. Some of those may fit together, but ALL of them?
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