Failure Rates in YTB and Other MLMs

Noted MLM expert Robert FitzPatrick did a recent blog post on the YourTravelBiz.com lawsuit filed by the California Attorney General. He has a nice analysis of how and why YTB is nothing more than a pyramid. These multi-level marketing companies are almost always the same, they each just have a different “hook.” In this case, the hook is travel services, although according to the company’s own numbers, very little travel is actually sold. (That’s a clue to it being a pyramid scheme… Little “real” business done, in favor of instead selling a dream and recruiting with that dream.)

Here are some interesting statistics and analysis from Fitzpatrick:

Read moreFailure Rates in YTB and Other MLMs

YTB Called “Gigantic Pyramid Scheme” By California Attorney General (and Sued, Too)

Yesterday on WalletPop, I wrote about how California’s Attorney General announced a lawsuit against YourTravelBiz.com (YTB) and called it a “gigantic pyramid scheme.” The evidence that it is a pyramid scheme is based upon the fact that the company theoretically offers members a chance to sell travel services to customers, yet that’s only a small fraction of how the money really flows.

The real money in YTB is in recruiting new members, who pay $450 to join and pay $50 a month to stay active and eligible for commissions. Hmmmm… Kind of sounds like the $448 it costs to join Shop to Earn and the minimum monthly purchase of $100 from its “Shop to Earth” products in order to be “qualified” to be paid commissions.

Read moreYTB Called “Gigantic Pyramid Scheme” By California Attorney General (and Sued, Too)