The MLM And The Card Mill Virus. Is There A Cure?
A Multi- Level- Marketing (MLM) agency as it applies to this industry is an accredited and legal travel agency who is primarily in the business of selling business opportunities promising quick and great wealth to those willing to pay the high fees to join their organization. They prey mostly upon consumers by offering great benefits and perks "while living like a travel agent." MLMs have reward programs for consumers who bring in other consumers bordering on pyramid schemes. Generally, the only ones making any money are the senior management while operating losses mount to the point of bursting. When that happens, the management simply moves on and starts the process over again under a different name.
Most MLMs are also "card mills" offering the photo ID cards as a means of acquiring additional perks by fooling many suppliers. The cards contain the agency's IATA # and resemble the real IATAN card. Lately, more and more card mills are offering the CLIA photo ID card instead of their own because the ease of receiving this popular and legitimate card gives them more credibility. Many MLMs also operate through the use of free dinners, house parties, consumer travel shows, hyped email blasts and generally using any scheme their creative minds can put together.
MLM's, in a different way, take advantage of the travel suppliers by using them to load up their fam trips and cruise ship inaugurals for their agents, most of whom just want a cheap vacation. This, of course, also hurts the legitimate travel agent unable to utilize the fam for gaining product knowledge.
I don't know what it is with MLMs but it sure has a cult like effect on a great many of their people much like radical religious groups. It must have something to do with those that have a weak and/or greedy mind and they are simply taken advantage of by these people. Fortunately there are those MLM agents that have a sincere interest in selling travel and were probably duped into joining in the beginning. I hope many of them are beginning to see the light and move on to the legitimate side of the travel industry.
Here are a few of the most notable MLM/card mills.
- YTB, the present king of the MLMs and card mills was discussed in detail in my last article. You can check on the link below for the whole story. As usual for most of these business models lots of controversy, little truth or accuracy in their programs, lots of operating losses and a few wealthy senior management officials leaving a trail of disillusionment for many of their followers.
- WORLD VENTURES is supposedly the upstart challenger to YTB. You can see this in their chat rooms with "my company is better than your company" mentality. You would think that these people would get a life because they apparently don't have one now.
- VIP TRAVEL TEAM is a card mill promising consumers all the travel agent perks.They even promise you an "authorized IATA ID Card" on their website. What about that IATAN?
- GT TRENDS is a pure MLM play with promises to get you on the path to fantastic earnings. Enough said about this scam.
- TRAVELWIZE is a real beauty (being facetious). This organization also will sell vitamins, toothpaste, insurance and just about anything else to its faith based organization of scam card holders.
- COASTAL VACATION CLUB is another card mill promising your own IATA card. Members of the "Bad News Bears" club.
- TRAVELOGIA is a huge card mill operation accused of ripping off churches and non-profits.
- AMERICAN TRAVEL BUREAU is one I hear lots of complaints about. Their website looks innocent enough but their actual operation has scared a few of their members into running for the hills.
- GLOBAL INTERNATIONAL is an Orlando based card mill. They appear to be profitable and has made attempts to enter the "legitimate" travel industry by successfully fooling the print media and one organization. In my opinion they still use heavy handed tactics to attract new affiliates and still issues cards to its 35,000 members. They have the most lengthy IC Agreement I have ever seen. Lots of complaints can be found on the Internet about this company.
- PRO- TRAVEL NETWORK disguises themselves as a Host Agency but in fact is another MLM and card mill. They have overpriced programs as do most of the MLMs and card mills. Another public company playing the common stock game for the benefit of its major stockholders.
NOW FOR A REALITY CHECK There are nearly twice as many affiliates working under an MLM/card mill agency then there are the so called "legitimate" travel agents. Can you really blame the suppliers for wanting to work with these agencies? It's a numbers game with suppliers plus their first responsibility is the bottom line profit for its stockholders. Many suppliers offer glowing testimonials on some of these "bum" websites. Are there really two sides to the Travel Agent Distribution System and should this segment of our business continue to go unchallenged? I feel that any industry wishing to call itself professional and wanting to promote good business practices should always challenge those that believe it is only about making a buck at the expense of others. Here are a few of my thoughts directed toward our travel industry partners.
TRAVEL SUPPLIERS must continue to educate the serious travel agent through knowledge of its products which will result in more sales to the supplier. The idea is to create more professional agents while reducing the number of "consumer" travel agents. The supplier should also take a good look at its travel agent "Fams" and other perks it provides the travel agent community. Specific criteria should be set up as to whom the supplier deems a qualified agent eliminating those that are not qualified or those just seeking a cheap vacation. For example, a supplier may only invite an agent who has passed a certification program or who is an IATAN card holder. Many of the card mills now offer CLIA photo ID cards because they are so easy to obtain therefore, until CLIA strengthens their requirements , I wouldn't accept them for "Fam" use. I realize this is a "catch 22" as some of the best providers for "Fams" are the mass market cruise lines. Do you see the picture here?
Perhaps suppliers can also require that agents attend some online courses of their own as a requirement. The point I'm trying to make is that the supplier needs to make room for the serious travel agent, no matter which side of the aisle they happen to be on. They can do this in a way that sales would not be lost. Giving in to pressure tactics of the mega MLMs/card mills should not be an option and its doubtful you will lose sales. The supplier is also indirectly paying commissions to consumers adding to its own costs.
TRAVEL ORGANIZATIONS need to have more consumer awareness programs explaining the differences between a serious and professional travel agent and a hobbyist and a consumer seeking travel agent perks. I think organizations such as ASTA, ARTA OSSN, NACTA and PATH should set up consumer awareness programs and include them on their websites. I like the idea of these organizations attending the consumer travel shows with a booth. As of now the MLMs and card mills have carte blanche at these shows and are slowly entering the "legitimate" travel industry trade shows. Consumers know nothing except that they see the "brick and mortar" agencies disappearing, that the Internet and airlines have wiped out the travel agent community and the only way to obtain travel perks is to join one of these MLM/card mills. We need to show them that this is far from the truth and the good guys are alive and well.
TRAVEL MEDIA should establish a policy that MLM's and card mill agency models are not invited to advertise with them. If they really are the supporter of the serious travel professional, then lets live that way. There should also be more privately written articles of the pros and cons of the MLM/card mills model. This shouldn't offend their advertisers if they present it properly and fairly.
TRAVEL AGENTS who are serious about this profession, whether working part-time or full-time, need to further train and educate themselves to become a travel professional. They should conduct themselves in a professional manner whether in making a proposal to a client or attending a seminar or travel trade conference. The "perks only" travel agent could be reduced in their numbers as more and more of the professional travel agents become better trained and more noticeable to the public and the supplier. They should also discourage their friends from attending those private house parties and free dinners put on by the "bums'. You would be doing them a favor.
MLM and CARD MILLS will always be around. If the "legitimate" travel agent community wants to reduce the "bums" presence and make them less prominent in the eyes of consumers and the supplier, they need to create a public awareness that there is a good side to this industry. Otherwise we may as well call it a day and allow us to be consumed by these "bum" agencies. I'm very concerned that CLIA is exacerbating the situation by allowing their photo ID cards to be used as a selling vehicle for the "card mills". If you are or were a member of one of these MLM/card mill operations, I would love to hear from you too.
Please keep in mind that the comments and opinions written above are my own and not those of my company or any organization, of which, I may be a member.