WorldVentures survives Ch 11 bankruptcy


DreamTrips was initially the identify of WorldVentures’ journey service product. It has now been launched as a stand-alone MLM firm.

Who owns DreamTrips is murky.

WorldVentures filed for chapter in December 2020. These proceedings culminated in Verona Worldwide Holdings buying what was left of WorldVentures in June.

On the time Verona Worldwide Holdings had no footprint, it was a newly created entity owned by individuals unknown.

Six months later and we nonetheless don’t know who’s behind Verona.

Till that is remedied, so far as fundamental MLM due-diligence goes, this stays a purple flag.

Much more so contemplating Spherature Investments, former proprietor of WorldVentures, has signalled it intends to file swimsuit towards former WorldVentures co-owner and CEO, Wayne Nugent.

What we do know is that Verona Worldwide Holdings is rebooting WorldVentures as DreamTrips.

This was introduced in a November sixteenth press-release;

Verona Worldwide Holdings, Inc. is happy to announce that the US Chapter Courtroom for the Japanese District of Texas entered an order confirming its buy of the unique rights to promote DreamTrips around the globe.

Because of the acquisition, Verona’s wholly-owned subsidiary, DreamTrips, LLC d/b/a DreamTrips Worldwide, would be the unique worldwide supplier of DreamTrips going ahead.

Heading up DreamTrips on the manager facet is Mark and Tammy Smith, respectively CEO and Chief Subject Officer.

BehindMLM first got here throughout the Smiths in 2018.

The Smiths (proper) have been former Nerium high earners, and have been then suing the corporate for $100 million.

Following arbitration, the lawsuit was quietly settled in mid 2020.

The Smiths in the meantime moved onto Jeunesse, prompting a raiding countersuit from Nerium.

In December 2020 the Smiths signed up as Seacret Direct distributors.

Within the months main as much as the Smiths becoming a member of, Seacret Direct was a frontrunner to accumulate WorldVentures previous to its chapter submitting.

That deal in the end fell by means of, prompting WorldVentures’ chapter submitting.

A bitter authorized battle between WorldVentures and Seacret broke out within the aftermath. These proceedings have been settled days earlier than the DreamTrips MLM firm announcement.

Whereas I’ve flagged Verona Worldwide Holdings possession, figuring out who’s operating DreamTrips is healthier than nothing.

DreamTrips is Mark and Tammy Smith’s first MLM govt enterprise.

Learn on for a full evaluate of DreamTrips’ MLM alternative.

DreamTrips’ Merchandise

DreamTrips markets three journey themed membership subscriptions; Gold, Platinum and Titanium.

DreamTrips Gold gives entry to

  • eating and leisure reductions
  • DreamTrips Mall; and
  • DreamTrips Concierge

Reductions are offered by means of DreamTrips low cost journey reserving engine (offered by Rovia).

Rovia is/was owned by WorldVentures. Presumably they have been a part of the package deal deal bought off to Verona.

If not, who owns Rovia now could be unclear.

DreamTrips Mall is an in home ecommerce platform.

DreamTrips Concierge is a reserving platform for providers to go with booked low cost journey.

DreamTrips Platinum provides

  • entry to DreamTrips Platinum experiences;
  • advance entry and reserving for all DreamTrips;
  • trip-specific upgrades;
  • capability to make use of 20% extra DreamTrips factors; and
  • emergency evacuation insurance coverage

DreamTrips factors are in home reward factors.

DreamTrips Titanium provides, and I quote, “really elite service, uncommon and aspirational experiences, the utmost comfort and the highest-level advantages”.

Retail pricing just isn’t offered to the general public on DreamTrips’ web site.

Right here is the retail pricing for DreamTrips’ journey memberships:

  • DreamTrips Gold – $199 after which $56.99 a month
  • DreamTrips Platinum – $299 after which $99.99 a month
  • DreamTrips Titanium – $999 after which $199.99 a month

DreamTrips’ November 2021 compensation documentation cites a “DreamTrips Silver membership” product.

This wasn’t an choice to buy at time of publication (November 2021).

DreamTrips’ Compensation Plan

At time of publication DreamTrips don’t present compensation particulars on their web site.

The next evaluation is predicated on an official DreamTrips compensation doc dated November fifteenth.

MLM Fee Qualification

To qualify for MLM commissions, every DreamTrips affiliate should generate and preserve 4 prospects with an energetic DreamTrips membership subscription.

Prospects might be retail prospects or recruited associates.

Notice that “Retail and Recruitment Commissions” don’t fall beneath MLM commissions.

DreamTrips Affiliate Ranks

There are eleven affiliate ranks inside DreamTrips’ compensation plan.

Together with their respective qualification standards, they’re as follows:

  • Lively Consultant – join as a DreamTrips affiliate
  • Certified Consultant – generate and preserve 4 prospects with energetic DreamTrips subscriptions
  • 1 Star Consultant – generate and preserve six prospects with energetic DreamTrips subscriptions, or have three energetic DreamTrips subscriptions on either side of your binary crew
  • 2 Star Consultant – generate and preserve twelve prospects with energetic DreamTrips subscriptions, or have six energetic DreamTrips subscriptions on either side of your binary crew
  • 3 Star Consultant – generate and preserve twelve energetic DreamTrips subscriptions on either side of your binary crew
  • Senior Consultant – generate and preserve thirty energetic DreamTrips subscriptions on either side of your binary crew
  • Director – generate and preserve ninety energetic DreamTrips subscriptions on either side of your binary crew, even have no less than 140 prospects in your unilevel crew (not more than 90 counted from any leg)
  • Advertising Director – have no less than 400 prospects in your unilevel crew (not more than 200 counted from any leg), and have earned $6750 over the previous three consecutive months
  • Regional Advertising Director – have no less than 900 prospects in your unilevel crew (not more than 300 counted from any leg), and have earned $15,750 over the previous three consecutive months
  • Nationwide Advertising Director – have no less than 1800 prospects in your unilevel crew (not more than 600 counted from any leg), and have earned $31,500 over the previous three consecutive months
  • Worldwide Advertising Director – have no less than 3000 prospects in your unilevel crew (not more than 1000 counted from any leg), and have preserve earnings of $31,750 over the previous three consecutive months

Prospects might be retail prospects or recruited associates.

Every buyer should have an energetic DreamTrips subscription to depend in direction of rank qualification.

A unilevel compensation construction locations an affiliate on the high of a unilevel crew, with each personally recruited affiliate positioned immediately beneath them (stage 1):

If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel crew.

If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.

Rising Star Bonus

If a DreamTrips affiliate qualifies at 2 Star Consultant inside eight weeks, they qualify for a $200 Rising Star Bonus.

Retail and Recruitment Commissions

DreamTrips is probably the primary anti-compensation compensation plan I’ve come throughout.

As a substitute of detailing retail and recruitment commissions within the compensation doc, that is all there may be:

You may earn a Direct Fee for the preliminary sale of DreamTrips membership merchandise.

Please see the Merchandise and Commissions Chart in your again workplace for eligible product(s) and the Direct Fee quantity.

The Direct Fee is paid whenever you’re the Enroller of a brand new Buyer.

Retail commissions are paid on merchandise bought by retail prospects.

Recruitment commissions are paid on merchandise bought by recruited associates at time of enrolment.

First Order Commissions (weekly)

DreamTrips pays first order commissions by way of a binary compensation construction.

A binary compensation construction locations an affiliate on the high of a binary crew, cut up into two sides (left and proper):

The primary stage of the binary crew homes two positions. The second stage of the binary crew is generated by splitting these first two positions into one other two positions every (4 positions).

Subsequent ranges of the binary crew are generated as required, with every new stage housing twice as many positions because the earlier stage.

Positions within the binary crew are stuffed by way of direct and oblique recruitment of associates. Notice there isn’t any restrict to how deep a binary crew can develop.

DreamTrips tracks first order binary quantity as “the preliminary product buy of Prospects”.

Prospects might be retail prospects or recruited associates.

Relying on how a lot a brand new DreamTrips buyer spends, corresponding gross sales credit are generated.

DreamTrips don’t disclose gross sales credit score quantity of their compensation plan materials.

What we do know is {that a} $50 first order fee is paid out per 1.5 gross sales credit matched on either side of the binary crew.

  • Certified Representatives to Administrators earn as much as $2000 per week in First Order Commissions
  • Advertising Administrators earn earn as much as $5000 per week in First Order Commissions
  • Regional Advertising Administrators earn as much as $10,000 per week in First Order Commissions
  • Nationwide Advertising Administrators earn as much as $20,000 per week in First Order Commissions
  • Worldwide Advertising Administrators earn as much as $25,000 per week in First order Commissions

Notice that retail buyer gross sales credit might be balanced throughout each binary crew sides to generate the best 1.5 gross sales credit score match obtainable.

Unmatched First Order Fee gross sales credit expires after twenty-six weeks.

If a DreamTrips affiliate just isn’t MLM fee certified, First Order Fee gross sales credit expire in 4 weeks.

If a DreamTrips affiliate earns three or extra first order fee cycles in per week, the primary three of these first order fee cycles can be doubled to $100 a cycle.

Notice that the double First Order Fee Bonus just isn’t obtainable to Nationwide Advertising Director and better ranked DreamTrips associates.

Residual Commissions

DreamTrips pays residual commissions utilizing the identical binary construction it pays First Order Commissions with (see above).

Residual commissions can be found to three Star Representatives and better ranked DreamTrips associates.

Residual commissions are paid on month-to-month subscription charges, paid by retail prospects and recruited associates.

Residual commissions are tracked by way of gross sales credit, with DreamTrips as soon as once more failing to specify corresponding gross sales credit score quantities.

Residual commissions are paid every time 3 gross sales credit are matched on either side of the binary crew.

  • 3 Star Rank associates earn $8 per match, capped at $150 a month
  • Senior Representatives earn $10 per match, capped at $500 a month
  • Administrators earn $15 per match, capped at $2000 a month
  • Advertising Administrators earn $15 per match, capped at $5000 a month
  • Regional Advertising Administrators earn $15 per match, capped at $10,000 a month
  • Nationwide Advertising Administrators earn $15 per match, capped at $20,000 a month
  • Worldwide Advertising Administrators earn $15 per match, capped at $50,000 a month

As with First Order Commissions, retail buyer gross sales credit might be balanced throughout each binary crew sides to generate the best 3 gross sales credit score match obtainable.

Wings and Wheels Life-style Bonus

The Wings and Wheels Life-style Bonus is a three-tiered month-to-month bonus fee.

Tier 1 pays $200 a month. To qualify for Tier 1 a DreamTrips affiliate should

  1. have and preserve 4 prospects with energetic DreamTrips membership subscriptions; and
  2. generate 1600 GV in downline gross sales quantity a month (not more than 400 GV from anyone unilevel leg).

Tier 2 pays out $500 a month. To qualify for Tier 2 a DreamTrips affiliate should

  1. have and preserve 5 prospects with energetic DreamTrips membership subscriptions; and
  2. generate 4000 GV in downline gross sales quantity a month (not more than 1667 GV from anyone unilevel leg).

Tiet 3 pays $1000 a month. To qualify for Tier 3 a DreamTrips affiliate should

  1. have and preserve six prospects with energetic DreamTrips membership subscriptions; and
  2. generate 10,000 GV in downline gross sales quantity a month (not more than 2000 GV from anyone unilevel leg)

Prospects with an energetic DreamTrips membership subscription might be retail prospects or recruited associates.

Notice that spillover GV, i.e. gross sales quantity generated by way of upline gross sales and recruitment, is excluded from Wings and Wheels qualification.

DreamCar Bonus

Regional Advertising Administrators obtain a $1000 a month DreamCar Bonus.

Nationwide Advertising Administrators and Worldwide Advertising Administrators obtain a $1500 a month DreamCar Bonus.

DreamHome Bonus

Worldwide Advertising Administrators obtain as much as $3000 a month as a DreamHome Bonus.

The DreamHome Bonus have to be put in direction of a verified month-to-month residence fee.

Extra Revenue Positions

DreamTrips associates who earn $25,000 or extra in a single month qualify for a further earnings place.

This place is created above the affiliate’s present earnings place, successfully permitting them to earn twice on the identical gross sales quantity.

If an moreover granted earnings place goes on to generate $25,000 in earnings a month, it spawns a brand new extra earnings place.

Notice that just one extra earnings place might be spawned from an present earnings place (a further or the unique place).

Becoming a member of DreamTrips

DreamTrips affiliate membership is $49.98 after which $24.99 a month.

Conclusion

What probably made WorldVentures a pyramid scheme can also be true of DreamTrips: What share of “prospects” are recruited associates versus retail prospects?

The basis of the issue lies in WorldVentures and now DreamTrips’ refusal to distinguish retail prospects from recruited associates:

Buyer – An individual who purchases DreamTrips Worldwide membership merchandise for private use.

A Buyer may be a DreamTrips Worldwide Consultant who purchases DreamTrips Worldwide membership merchandise for private use.

There’s no reputable purpose for this within the fashionable regulatory atmosphere DreamTrips operates in.

Slightly, it’s a deliberate try and muddy the waters between recruitment and retail gross sales.

Why am I so positive?

As a result of traditionally WorldVentures had a horrible monitor document with respect to retail prospects.

The apex of those issues was Norway, which outlawed WorldVentures for being a pyramid scheme in 2014.

WorldVentures appealed the choice, go as far as to sue the Norwegian authorities.

Each attraction was denied and the case towards the Norwegian Ministry of Tradition was tossed in 2015.

Extra importantly, what we realized from the Norwegian investigation was, on the time, 95% of journey memberships have been held by WorldVentures associates.

WorldVentures’ pyramid scheme started to break down in 2018. COVID-19 was the ultimate nail within the coffin.

BehindMLM final reviewed WorldVentures in September 2019.

I didn’t however might have simply simply copy and pasted that compensation plan right here – they’re the identical.

Guess what our main concern was with WorldVentures’ 2019 compensation plan was?

WorldVentures Evaluation 2.0: Usual prospects/associates concern

(from the Conclusion)

The Norwegian Gaming Board investigation nonetheless revealed that 95% of DreamTrips membership holders in Norway have been additionally associates.

Given WorldVentures’ compensation plan hasn’t modified all that a lot through the years and that there wasn’t something specific distinctive about Norway, it’s extremely seemingly that determine remains to be pretty correct company-wide at this time.

And it is a downside, as a result of an MLM firm that primarily generates income from associates operates as a pyramid scheme.

That held true for WorldVentures in 2019. It’s going to proceed to carry true until DreamTrips makes adjustments to its compensation plan.

Till then, statements like this from DreamTrips…

No commissions are paid for recruiting new Representatives and there’s no compensation derived from a Consultant’s private
buy.

…are meaningless. It’s totally potential to earn recruitment commissions when an affiliate is recruited with a DreamTrips subscription.

On that be aware, DreamTrips Titanium is priced 3.3 as a lot as Platinum, with a double month-to-month spend.

Is a “really elite service, uncommon and aspirational experiences, the utmost comfort and the highest-level advantages” value that further outlay?

What does that every one even imply?

WorldVentures in 2019 have been a bit extra open about DreamTrips Titanium.

DreamTrips Titanium provides entry to a “devoted concierge”, curated experiences, $2000 in constitution jet credit score, $1000 in constitution yacht credit score, a world visa service, “precedence entry” to “unique occasions”, room upgrades, golf course entry, each day breakfast, early/late test in/out, most well-liked airport lounge pricing and Hertz Presidents Circle.

I didn’t add that to this evaluate as a result of I do not know whether or not that’s what DreamTrips are providing.

Secrecy is a giant downside with this new providing, and that brings us to who owns the corporate.

WorldVentures failed. There’s no getting round that.

Shoppers and potential associates need to know who’s behind Verona Worldwide Holdings and DreamTrips.

We all know the compensation plan is identical. If firm possession is materially the identical (minus Wayne Nugent), then all we’re is a possible pyramid scheme with new Mark and Tammy Smith paint.

The excellent news is ascertaining whether or not you’re being recruited right into a pyramid scheme is as straightforward as ever.

All it’s important to do is ask your potential DreamTrips upline what number of retail memberships they’ve bought, weighed towards recruited associates with a subscription.

Something lower than 1:1 and also you’re being roped right into a pyramid scheme.

Once more, given the Norway figures I’m not prepared to offer DreamTrips the advantage of the doubt. Even much less so when the corporate doesn’t present any official retail membership figures.

Method with warning.

 

Replace third October 2022 – Following a compensation revision, BehindMLM has revisited DreamTrips for an up to date evaluate.