Why is TVI Express NOT a Pyramid Scheme – In Response to Kasey Chang’s yet another controversial blog!

Interestingly enough, Kasey Chang, an ardent critic of my blogs is giving words to his thoughts and criticism about my blog entries.

I think it’s good for more the explanations are, more are the chances to get to the TRUTH!

Apart from being a response to his “critique” of one of my blog entries about ACCC-TVI Express case (as he bases the most part of his blog on TVI Express being a pyramid scheme), this blog entry, MORE importantly, aims at explaining WHY TVI Express is NOT a Pyramid Scheme!

First things first - What is a Pyramid Scheme anyway? How is it defined?

Let’s find out.

As per Wikipedia –

“A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, without any product or service being delivered. Pyramid schemes are a form of fraud”

As it states a pyramid scheme is the exchange of money primarily for the enrolling of other people without any Product OR Service.

OR it is even generally described by people as a scheme where people at the top make money but the others don't.

In regards to TVI Express, the product component obligation is fulfilled by their 6N7D vacation package which is their core product and has now been revised to 7N8D for some of the accommodations depending upon the hotel and availability. Apart from the product fulfillment, they also offer a range of services and what are they? See below:

1.      A big number of discounted deals listed through their travel engine

2.      Lifetime access to a full-fledged travel portal.

So, this appear to have met the criteria for the definition of a product being "6 Nights and 7 Days (OR 7N & 8D for some cases)"  and that of a "Service" by giving lifetime access to a full-fledged travel portal with most of the deals with discounts.

Therefore how can it be a Pyramid Scheme when two of the items that are required to be omitted in order to be a Pyramid Scheme are in fact included in the TVI business i.e A "Product" and a "Service"???

Another thing, as per the MLM Laws, another defining feature of a Pyramid scheme is the criteria which such companies set so that the members are obligated to fulfill them in order to be able to redeem the product such as multi-level movement of money or recruitment of a certain number of people prior to the redemption.

While, with TVI Express, there are no such conditions. One is capable of redeeming the product right after joining them.  The TVI Express sign up voucher ensures your position with them while the Package Redemption Certificate (which is made readily available to you as soon as you sign up in your member backoffice) can be instantly used for the redemption of Product, without recruiting any members or without any virtual movement of commissions up the levels.

Before I go further, let’s also learn a little more about the TVI Express Product, information about which, you can also find on their official website (even if you aren’t a member). Please refer to their latest announcement dated 9^th June, 2010 under the section “Announcements”.

The TVI Express redemption certificate entitles a member to book a vacation at any of the 6,000 3-5 star hotels/resorts across the world where they have direct/indirect tie-ups. The occupancy limit ranges between 2-8.  2 is the assured number by them as a company since the vacation is promised for a couple; however, some of the hotels are even giving higher occupancy, as high as, even up to 8 people with up to 3 bedroom units on a single redemption. But this is specific to a particular hotel and the availability at a given time. All this for mere USD 150 which goes towards taxes and processing charges and has to be paid to the company and not to the selected hotel (As all the arrangements are made by the company in advance so that the redemption can be made at any of the desired accommodations).

Okay, coming back to the main point – PYRAMID SCHEME!

Now, regarding making money by recruiting people. This is a bit ambiguous as you would indeed make more money if you introduced more people to this travel and accommodation opportunity. However, this is no different than any business where if you have more clients or customers who like what they see and decide to buy the product and you were directly responsible for introducing this new person to the product, the company rewards you accordingly.

Which is exactly the same as any business where Salesman No 1 sells more products than Salesman No 2 and therefore, the company rewards Salesman no 1 more than Salesman No2 As Salesman No 1 has brought more money in to the company.

All of the above indicates a win, win, win situation. The new customer wins because he now has access to discounted travel and free accommodation (exclusive of taxes and processing). The company wins because it has been paid by the new customer and the Salesman (person who introduced the new customer) wins because the company pays him more commission.

Of course, an MLM company like TVI Express has added advantages in that if this new customer wishes to start a home based business, he can introduce more people to the TVI Express product and therefore the company will then pay him commissions. So the same opportunity is available for everyone. If they choose not to introduce anyone else that's fine, they just use the "product".

And please note:

My last blog entry sure was copied from one of the announcements (about currently ongoing TVI Express Europe Boot Camp) by TVI Express on their website but DARN, my ardent critic Kasey Chang missed my comment right above the copied and pasted announcement which stated “Have a look at the announcement below I am copying for those who have not yet viewed it on TVI Express website” and mistook me for missing the end note from TVI Express.

Any suggestions/comments would be sincerely welcomed.