Thursday, March 3, 2011

TVI Express is NOT Network Marketing, but a Pyramid Recruitment Scam

A simple binary tree diagram illustrating the ...Image via Wikipedia
An article written by Robert L. Fitzpatrick in 2004 warned all about the "non-retail" direct selling company.

And that's exactly what TVI Express is, a non-retail direct-selling company, except I used a different name... a pseudo-MLM scam.

A non-retail direct selling company can be summed up as a direct selling company that doesn't sell anything. That's truly an oxymoron, isn't it? Yet that's exactly what TVI Express does. That's what TVI Express webpage says:

"Network marketing -- also Direct Selling of Multi- Level Marketing... is the business model that TVI Express chose from the beginning." --

But their own FAQ says very clearly...

"Q: Do I need to sell any products?
A: No. You don't need to sell any products. "

Even TVI Express themselves admit they are a non-retail direct-selling company...

So what are the warning signs of a non-retail direct-selling company? Here are the factors:

a. The products are high priced and non-competitive.
Well, TVI Express itself does not even admit to have a product, since you don't need to sell any!

b. The products are undifferentiated. Similar or even identical products are available for purchase from other companies, in stores or over the Internet.
You can buy discount travel all over the Internet, directly from the airline websites, or from your local travel agent and more. Why buy from TVI Express at all? DEFINITE YES
c. Choice is restricted in the direct "person-to-person" method of selling and more people prefer to purchase goods of this type in stores where there is wider choice and no pressure upon personal relationship.
As there is no product that you need to sell, this CANNOT be retailed at all! DEFINITE YES
d. ... Recruiting other sales reps replaces the effort to sell directly.
As there is no product, it is ALL recruiting. DEFINITE YES.
e. ...The non-retail direct selling scheme allows - and strongly encourages - the authorization of unlimited numbers of sales representatives. Each salesperson is instructed to enroll close friends, neighbors and family members also as salespersons. In this manner, retail sales to these people are no longer possible since they now can purchases the goods at wholesale prices. As saturation of authorized sales people occurs in a community, cost-effective retail selling becomes nearly impossible.
As there is no retail, PERIOD, it doesn't matter. It's all recruiting, all the way. DEFINITE YES
f. The company offers little training or support for retail selling. The focus and priority are placed on training, motivating and rewarding the recruitment of more and more sales people.
There is no training except by local reps. All motivation and reward are provided to top recruiters, i.e. those with the most downlines. Even the FAQ itself (#5) says you need to sponsor two people and teach each to sponsor two more people. All incentives (yacht, luxury car, laptop, villa, etc.) are given to people who cycled through express matrix multiple times, and you get that by... recruiting. Even the company events like the cruises are awarded to top recruiters. DEFINITE YES
g. The compensation plan richly rewards the recruiter over the retailer, luring the new sales representatives immediately into recruitment efforts and away from retailing, even if they have not already determined that retailing is unprofitable...
Recently a lot of TVI Express reps are claiming that TVI Express sell travel, specifically discount hotel vouchers. However, there is no explanation ANYWHERE in TVI Express website that says you CAN earn money by selling vouchers. Combined with "you do not need to sell any products" answer from TVI Express FAQ, this means that there is NO retail sales in TVI Express at all.

Even the term "residual income" was actually defined as "earn a certain percentage of amount on every person joining your worldwide team"  (TVI Express FAQ #7)  DEFINITELY YES
h. Whatever opportunity exists in the scheme for profitability is based on being positioned high on the chain. Recruiting is the only way to advance to the higher levels where the leveraged high incomes can be gained. 

TVI Express tries to weasel by answering the question in a roundabout way:

How does my matrix commission raises from 5% to 10%? )
Your commission increases with increase in your rank. When you cycle out of the Express board, you automatically become a Gold Associate and start receiving 5% of the group sales. When two people in any two different legs of your organizational structure reach the 5% level, you become a Diamond Associate and the percentage commission upgrades to 7%. Similarly, it goes to 8.5% and 10% finally entering you into the power pool where you earn lifelong royalty income from the Global Revenue of the Company.
When you cycle out of the 2nd board, you're at 5%. (That's when you got the $10000)  When people below you cycle out, your level get raised, and you get a bigger share of the cut.

But how do you cycle out? By recruiting, and filling the 1-2-4-8 pyramid (i.e. the 2x3 forced matrix) below you.  So the MORE you recruit, the more money you will make. You don't need to sell anything at all, because there is NOTHING to sell.

There's not a single reference to selling ANYTHING on TVI Express website, other than selling the TVI Express "opportunity" itself. DEFINITELY YES

TVI Express fits EVERY SINGLE WARNING SIGN of a non-retail direct selling company. 

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