Internet business, multilevel marketing and tourism
In the last part of the review we stopped at the ??TVI Express field of activity. The official website says: the goods (in this case, travel) and the method of distribution (the Internet) have been chosen by the organizers of this mlm project for several reasons:
- First of all, the market of tourism and travel makes today 7 trillion dollars a year.
- Secondly, in 2011, more than 70% of travels around the world have been ordered over the Internet.
- Thirdly, multilevel marketing or the industry of direct sales, used by TVI Express, allows to reduce the final cost of the goods or service by 20-50 %.
Combining all these items in the concept of the company, TVI Express plans to become the leader in the industry in a couple of years. And, consequently, there will be opened vast prospects for its partners: both in earnings and the ability to travel. That all sounds really good, but there are a couple of facts which refute the reality of everything told above.
- Firstly, all companies using multilevel marketing and distributing products and services exclusively over the Internet have already been recognized as financial pyramids and closed, or are rapidly approaching for this event. Examples include projects such as Intway, Stiforp Profits, Dubli, Inetglobal, Isif, Emgoldex and others. And the main problem here is not in the company itself, but in multilevel marketing that just does not work on the Internet, because one of its main principles doesn’t work there — duplication.
- Secondly, multilevel marketing is not compatible with the tourism industry. And it has been repeatedly proven by many other projects such as Club freedom. The reason for this incompatibility is also on the surface. The fact that the cost of the travel, passing all the intermediaries on behalf of tour operators, travel agencies and tour operators is only 10 — 20 % more expensive, even including the expenses on advertising in the media, internet, signs, billboards and other ways to attract customers. The tourism industry receives tremendous profits primarily due to the number of travelers, that is, for a little bit from each – and the income grows sky-high. In multilevel marketing margin is never less than 30 — 50 % for the goods or services. And specifically about the TVI Express, then in accordance with its marketing plan, the minimum increase in cost of travel makes 50 — 70%.
The other drawbacks of TVI Express will be discussed further in this review.