Full disclosure: I am not a WorldVentures member, nor would I ever sign-up. I’m not a fan of the MLM structure, I do not like the idea of “sheep-herding” everyone I know into a group meeting, hoping that several convert and I’m not fond of the idea that I can’t actually “market” the program.
I have, however, done some research, as WorldVentures has swept through Durango. After thoroughly reviewing the WorldVentures Detail Compensation Plan and Marketing Guidelines, here are my thoughts on WorldVentures;
Is WorldVentures Profitable? My Thoughts & Strategy
First; Let’s think investment and ROI: In order to take advantage of the “WorldVentures Opportunity”, an initial investment of $360 needs to be made, and until 4 conversions are realized, there will be a $60 / month reoccurring cost.
So assuming that 4 conversions are realized in the first month, the initial investment is $420.
The direct commission realized on that would be $80, meaning another $340 would be required before the initial investment was realized.
Direct Commission Route
One thing everyone must understand is that the direct commissions are the only real [non-bonus] revenue stream that isn’t affected by the 65% Cap Rule, thus is the only revenue stream that will remain consistent.
Everyone must also realize that the only ways to really *cough* market *cough* this thing is through “herding” a bunch of people into a meeting, having them watch the pre-defined presentations and hoping people convert.
Strategy: With the above noted; The strategy is simple…I call it “sheep herding”. Assuming that only the basic packages were sold, 17 conversions would have to be realized before the remaining investment is paid off.
Sure, there’s all these other possible “bonuses” (some feasible, some not) that might apply to these 17 conversions, but I’m conservative and like conservative numbers. There is no “if” to the above statement.
Note: the math is assuming that 4 initial conversions are realized on month 1. If another monthly payment was made before the initial 4 conversions, add another 3 conversions, totaling 20. Add an additional 3 conversions for any 1 additional month where payments were made.
At this point, any conversion would be considered a profit. As for profitability and feasibility; consider time spent, and return realized and ask yourself; “Is this a return on my time?”
The MLM “Pyramid” Route
At this point, it is possible that the pyramid aspect of the program does it’s thing, and without any intervention, the program works you up the ranks.
Before residual income on the network size is realized, the rank of Senior representative must be achieved. This requires 30 members on both the left and right side on the binary tree, meaning at minimum of 60 binary members.
There would be “weekly team cycle bonuses” realized from the networks growth, but those fall victim of the 65% rule and don’t know how much they really payout. I’m sure it’s algorithm-based, and the different tiers play a big factor. lets look at something here:
If we look at the “tiers” [You would be tier 1, your right and left both on tier 2 and so on] the cycle bonuses start falling apart if the 8th tier were all to cycle themselves simultaneously.
There would 128 members of anyone’s 8th tier. So if they were all to cycle, this is what the math would look like:
1 x 128 cycles = 128 cycles
2 x 64 cycles = 128 cycles
4 x 32 cycles = 128 cycles
8 x 16 cycles = 128 cycles
16 x 8 cycles = 128 cycles
32 x 4 cycles = 128 cycles
64 x 2 cycles = 128 cycles
128 x 1 cycle = 128 cycles
128 x 8 = 1024 total cycles realized within this binary tree, which equates to $102,400 to be paid out in cycle bonuses to the entire binary…And higher, assuming there’s someone up above…Which there is.
128 x 6 = 768 DTU sales at $199.95 / each = $153,561.40 x .65 [65% cap] = $99,815.04
$2,584.96 That will not be paid, because of the 65% cap rule. Corporate keeps 35% of net for themselves, that’s non-negotiable, and for good reasons.
The business itself becomes unsustainable at tier 12 if it was otherwise;
2,048 members on the 12th tier, if they all cycled, it’d be 2,048 x 12 = 24,576 cycles which equates to $2,457,600.
12,288 DTU’s sold x $199.95 = $2,456,985.60
$614.40 loss on memberships sold.
Granted we’re playing with millions at this point, but let’s look at it this way:
30/30 occurs on tier 5. I’m sure the person at the meeting sold you on “residual income”, and probably made some reference to the fact that they’re receiving it. That insinuates that there are already at least five tiers in their network. If you are under them somehow, you are probably on tier 6 or below.
Now in order to get the residual income yourself, you’d have to add an additional 4 tiers below you to make a total of 5 tiers.
Therefore, if you were to get to the level of realizing the residual income, the total network below the person giving the big demonstration would have theoretically have already grown to an almost unsustainable level as far as weekly team bonus cycles are concerned….If it wasn’t for the 65% Cap Rule.
The company has been around eight years now, imagine how big the network as a whole is. Do you not think that the 65% Cap Rule is in play as we speak? The real question is; What is the algorithm? How are the deductions calculated? Since it is against the terms for any WorldVenture Representative to disclose that information, it’s impossible to even take guesses as to how the bonuses are affected.
So….As I was saying; There would be team bonus cycles occurring as the network “built itself up”, but seeing how the 65% Cap Rule is the only thing keeping the structure sustainable, and due to the fact that as of registering for the program, you are automatically placed at the bottom of a vast network where theoretically everyone above you should be cycling with you….I don’t like to put too much stock into this bonus.
There should be income through this bonus, but without knowing exactly how much (due to not having insight into the algorithm) it’s hard to use this to calculate income or ROI.
Residual income is realized once a representative reaches the rank of Senior Representative, they’re eligible to receive residual income. Keep in mind, this income also falls under the 65% cap, and a minimum of a 60-count network size (6th tier) is required.
The detailed compensation plan states that the income is based on membership fees. Therefore, I’m assuming that those reps not currently paying membership fees, as they have four under them in their binary, do not generate credit
Therefore, as outlined above, it can be assumed that only the bottom two levels of the pyramid will be generating residual income, as the third tier starts getting into that “get 4 pay no more” level…Assuming they’re evenly dispersed.
WorldVentures blessed us with simple math. If the 5th tier was completely full and perfectly balanced, there would be exactly 30 representatives on each side.
Since it’s a perfectly filled 5 tiers, we know that only the 4th and 5th are paying fees, and everyone on those tiers are paying.
We know there’s 16 representatives on the 5th tier (one side) and 8 representatives on the 4th (one side) bringing the total number of paying reps to 24 on each side. 24/3 = 8 credits, and since there’s a matching 8 on the other side, that should equal out to $80.
Now the 65% cap rule comes into play. Theoretically, if the graph scaled perfectly, everyone above you should be realizing that $80 residual payment, as those generating the revenue in your network are also the bottom two levels feeding your higher-ups.
So really, add an $80 payment for everyone above you within the network. Even more, anyone with the director rank should be earning $120 off the cycles, instead of $80.
I’m not going to do the math on this (too much referencing on monthly fees), but assume that everyone above you in the network is also eating off those same monthly payments. It’s not going to be feasible, especially with only the bottom two levels ever paying out.
Therefore, the question once again goes back to the 65% Cap Rule algorithm, and how it affects the residual income. Seeing how directors are supposedly making 50% more off the residual cycles, it would seem that WorldVentures favors the higher-ups, but does the algorithm agree?
Will a Senior Representative even make that $80 calculated above? You’d hope tiers would be one of the largest signals in the 65% algo, and the level of adjustment would raise for the higher-ups, to where the bottom level that’s actively recruiting realizes less of an adjustment.
As with the issue of the team bonus cycle, without being able to get any representatives to disclose their earnings, and with no insight into the adjustment algorithm, it’s a mystery as to how much the residual will actually bring in.
Assuming it is $80 / mo, as calculated above, and not taking into account any team cycle-bonuses during the ramp-up, it’d take 5 months worth of payments until profit on the operation was realized.
Meaning that off residual income and initial four direct commissions alone, it’d take 5 months, plus whatever the duration to ramp-up to 30/30 until an ROI was realized.
How To Really Make Money In Programs Like This
So as you can see, everything is a whole lot more incremental than what the hyped-up videos would lead one to believe. At least when the flashy bonuses are not realized. With an earnings disclosure “gag-order” placed on all reps, it’s hard to determine at what level 65% really starts becoming apparent, thus it’s hard to gauge any kind of real income.
But there is one way to become incredibly profitable with programs such as these; Take over a region!
Simply put, if one was to enter a new place where the program has never been known, at least some people will join the program. Since profitability is contingent upon network size, the only way to succeed is to grow, and since you are at the top of the binary, you realize the entire area as the network.
Then it’s all about getting your conversions to drag as many people as they can to the meetings and hope it grows exponentially. Once things are established, and locals can be trained to give the same presentations that you have, it’s now time to move on to another virgin community.
Since everyone in the community is within your binary, as soon as the community is established, a presence is no longer required to realize growth from said community.
Lets look at some numbers:
20 initials conversions in the new community should be a great start. Those conversions would net $400 in direct commissions, which is enough to prove ROI itself. If those were the only direct conversions, and each one was to get their 4 as to be “sustainable” (monthly fee wise) that would grow the network to 100 of itself, enough for the residual, probably worth a couple bonus cycles and a community locked down.
After the 20 conversions, it’d be nothing but hosting the parties and telling the network under you to bring in as many
sheep people as possible. Some will convert, some won’t, but at least it’ll be your minions doing the real leg-work, while your just giving one 2-hour performance weekly and signing-up those that bite the bait.
At a certain point, train the most savvy sales-person there start hosting the presentations for the town or area. At that point; New community, and a new 20 conversions.
As said before; Rise. Repeat.
And that is the only way I’d ever play an MLM game such as this. If anyone would like to give comments on their experiences, thoughts and strategies, please share.
If anyone wants to call BS on my numbers and provide some math of their own, I’d love some intelligent debate on the topic. I’m no statistician, all this was based on common sense. I may be wrong. Please debate me 😉
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