The Impact of Pyramid Schemes on the Magical Vacation Planning Community

By admin

I recently came across a magical vacation planner that turned out to be nothing more than a pyramid scheme. The concept sounded fantastic at first—a company claiming to offer luxurious vacations at unbeatable prices and promising to make all your travel dreams come true. However, as I delved deeper into the details, it became clear that this was not the magical experience it was advertised to be. The vacation planner operated on a pyramid scheme model, wherein individuals were encouraged to recruit others to join the company and become sales representatives. These representatives had to pay a significant fee to join and were promised lucrative commissions for every new member they recruited. Additionally, they were told they could earn free vacations and other rewards for meeting certain sales targets.


There are many companies out there that promise seemingly great opportunities and compensation to potential Independent Contractors. But if it sounds too good to be true, it probably is. Here are a few tips on what to look for in an agency:

When considering complaint information, please take into account the company s size and volume of transactions, and understand that the nature of complaints and a firm s responses to them are often more important than the number of complaints. Some host agencies will say that you re covered but won t provide you with any official documentation to back it up, and there have been cases of people having to use the insurance and oops, suddenly they re not covered.

Ia magical vacation planjer a pyrmaid scheme

Additionally, they were told they could earn free vacations and other rewards for meeting certain sales targets. On the surface, this seemed like a win-win situation. Who wouldn't want to enjoy discounted vacations while making money? However, as I began to analyze the business model, I realized that the real source of income for the company was not the sale of vacations, but rather the recruitment of new members.

Become a travel agent

A friend of mine is trying to get me to sign up to be a travel agent (for a small fee of course). Has anyone done this and can you get discounts at Disney?

ksoehrlein

Once (and Future?) CM
Joined Sep 15, 2003

First of all, welcome to the DisBoards!

I am just starting out in the travel industry, focusing on Disney. I would try to not pay a start-up fee if I were you. Your friend might split commissions with you instead so it doesn't cost you anything up front. That's the route I'm taking.

Disney offers a great free correspondence course, the College of Disney Knowledge. After you graduate, there are onsite Masters programs, but they are more work than play. Most Disney vacation discounts seem to apply only to agents, not family members, however, and you need to be actively selling before you're eligible for them.

I'm giving it the old college try, but I highly doubt it will make me a millionaire or even pay for more than a couple of nights at a Value resort each year. Then again, it's a chance to talk about WDW with people who are actually interested in what I have to say. I enjoy that part so much, that I'd do it for free!

strasfamily

DIS Veteran
Joined Aug 7, 2003

How do you ge info for the College of Disney Knowledge? Do you have to be an established travel agent to participate?

scanmom

DIS Veteran
Joined Dec 29, 2000

I would like to know too! I have planned and booked trips for several of my friends and coworkers, so I think I could handle being a disney travel specialist. I wouldn't want to make alot of $'s doing it, but I think it is fun, and if I could get a few discounts, all the better!

Amberle3

Likes to absorb the park
Joined Mar 8, 2004

Just a heads up:

Anything that you get "signed up for" to be a travel agent is a card mill. Basically it's kind of like a pyramid scheme. Most of the money people make is by signing other people up.

Travel agent discounts are almost a myth nowdays. Yes there are *some* to be had out there, but in order to qualify for them you have to have an IATA card, which you earn by producing X amount in sales per year. Also many hotels have web specials that are lower than the travel agent rates, and in many places the travel agent discount is a whopping 10% or equivalent to the AAA rate.

I know all this because I'm a travel agent. I spent 8 months in school taking full-time courses for this, and then spent another 2 years after that getting Certified.

There's a lot more to being a travel agent than just paying for a "membership".

ETA: Yes, you have to be an established travel agent before you can take the Disney courses.

Also, depending on where you live there are local or state laws in effect governing travel agents. You may be required to be registered with the state before you can legally sell travel to people (even for yourself, if you're acting as an agent). You may be required to have a minimum amount of insurance (E&O/liability) before you can legally sell travel to people. Even if it's not a requirement the E&O insurance is something that every travel agency should have. If you're acting as a solo travel agent then you should definitely have it. Some "host" agencies will say that you're covered but won't provide you with any official documentation to back it up, and there have been cases of people having to use the insurance and oops, suddenly they're not covered. My E&O costs $1250 a year.

I'm giving it the old college try, but I highly doubt it will make me a millionaire or even pay for more than a couple of nights at a Value resort each year. Then again, it's a chance to talk about WDW with people who are actually interested in what I have to say. I enjoy that part so much, that I'd do it for free!
Ia magical vacation planjer a pyrmaid scheme

The primary focus was on expanding the network of sales representatives rather than delivering the promised magical vacations. The company used persuasive marketing tactics to entice potential recruits, emphasizing the possibility of earning significant income while having the opportunity to travel the world. They painted a picture of a fantasy lifestyle that appeared too good to be true, and unfortunately, it was. The company relied on the constant influx of new members, as older representatives struggled to make any substantial income from actual vacation sales. As I dug deeper, I discovered that the company's vacations were not as luxurious as they claimed. Many customers found themselves disappointed by the accommodations and services they received. It seemed that the focus had shifted from providing quality vacations to merely fulfilling the minimum requirements promised in the sales pitch. Ultimately, I realized that this magical vacation planner was nothing more than a pyramid scheme disguised as a dream holiday opportunity. The primary goal was to recruit individuals and make money off their membership fees rather than delivering on the promise of magical vacations. The allure of discounted travel and financial gain blinded many people to the true nature of the company. It is essential to remain vigilant and conduct thorough research before investing time and money into any opportunity. Pyramid schemes often use enticing promises to lure unsuspecting individuals, but they rarely deliver on those promises in the long run. By keeping our eyes open and educating ourselves, we can protect ourselves from falling into these deceptive traps and instead focus on genuine opportunities to fulfill our travel dreams..

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