11 Sep

InteleTravel MLM “Opportunity”

PlanNet Marketing Inc. offers the InteleTravel MLM opportunity. They avoid language that would give away the fact that it is MLM, but since people recruit a downline into multiple levels, it is indeed multi-level marketing.

Participants are referred to as “independent representatives” (IR). They pay upfront and monthly fees to have an “online travel agency.” Small commissions are made from selling travel services and packages, but the amount earned on the travel sales is quite low.

According to the InteleTravel compensation plan as of September 2019:

  • You can become a “rep” for $19.95 up front, and $19.95 per month.
  • Or you can sign to to be a “travel agency” for an up front fee of $179.99 and $39.99 per month. (It is not explained clearly on the site, but it appears that if you want to recruit other people, you must sign up for this option). The recruiter is paid $50 on the up-front fee.
  • When someone you have recruited gets a new recruit, you get paid $25.
  • All sorts of bonuses come into play once you have recruited at least 9 people.

Notice the compensation plan doesn’t say anything about how much you make from selling travel. It’s hard to find information on the company’s website about how much “travel agents” make from selling travel. If you look hard enough, you’ll get to the company’s blog and a post from 2015 which states that suppliers pay 14% to 28% commission on travel booked through them. The agent receives 70% of that commission, which InteleTravel keeps 30% of it.

The real dirt on InteleTravel comes from its income disclosure statements, which show how little money most travel agents make. The average Rep made $166 per year, and that was 97.5% of their members. Notice this is less than the $260 it cost each of those members for the sign up fee and the monthly fee, if they signed up as a Rep. If they signed up as a “travel agency,” it cost them $660 that first year, so they are losing even more.

In 2017, the company disclosed that 24,775 members were at the Rep level, out of a total of 25,370. In 2018, they stopped disclosing how many members were at each level. If you look at those rep numbers, you realize that is an awful lot of people losing money on this “business.”

You should also note that the figures shows in the disclosure statements only include people who were “active” for all 12 months of 2018.  So if you signed up and only stayed a member for part of the year, you were excluded from the numbers.

The company also discloses that 77% of members made ZERO in commissions. Nothing. Nada. Zilch. So they spend $260 to $660 per year in fees in order to make nothing.

Much like all other MLMs, almost everyone loses money. The typical response to this will be that most people sign up only to be part of a “travel club” and get discounted travel. The truth is that these travel clubs are complete nonsense. You can get better deals on travel simply by using travel sites that are widely available to all consumers. InteleTravel is a complete waste of time and money.

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