MLM: Home Based Travel Business – Worldventures: Opportunity or Not?

With hundreds of network marketing companies being raised every year it is difficult to know which pose a good opportunity to you or just to their creators. In almost every case the respective compensation plans are complicated, and like any business, are designed to ensure its own future profitability and sustainability. Every company offers a product either tangible (tablets, nutritious products etc) or intangible products like memberships. So how do you know whether your company is better than another or if it’s products are sellable.For those of you interested in travel and leisure and would like to link those passions with a Network Marketing opportunity, I will focus this article on Worldventures, in particular it’s legitimacy as a company, it’s compensation plan and your chances of success as one of their Independent Representatives.Legitimacy.Worldventures has been around since 10 December 2005. At the time of writing this document the company boasted a membership of over 110,000 Independent Representatives in 24 countries. These statistics were pulled directly from the company’s website so might be subject to some conjecture. That aside Worldventures has a D- rating with the Better Business Bureau (BBB) Code of Business Practices. BBB’s coding system declares that fraudulent companies get a rating no better than an ‘F’, so in that context the answer to my question above is ‘yes, Worldventures is a legitimate business’. It is clear, however, that Worldventures does have some accreditation issues, which centre around poor or slow dispute resolution of complaints.Is Worldventures a good business opportunity or not? According to the Worldventures compensation plan, up to 60 % of earnings are distributed to the Independent Representatives. If only it was that simple! Like every networking marketing company there are a series of additional conditions like lineage and balancing wings etc that effectively limits Independent Representative payouts. There are also other inducements like car loans and home loan support, which are fantastic, as long as you can maintain your eligibility status. To balance my above points about the compensation plan, it is worth noting that all network marketing companies apply variations of this system in their compensation plans and there are people who do manage to earn very high incomes by selling within the confines of these financial structures. So, why is it that one person succeeds and another doesn’t?MLM success.In most cases success within any MLM business can be attributed to knowledge / ‘knowhow’ – Your individual knowledge of marketing and leveraging of the Internet. This criteria is as relevant for Worldventures as all MLM companies.Most people blindly enter a MLM business opportunity, target friends and family to make the initial sales targets and then stagnate because they don’t know how to generate leads efficiently and regularly in order to continue growing their downline. Some will spend sizable sums of money on ineffective advertising or work themselves to the grave in a vain attempt to market their product and recruit new members. This lack of knowledge and the resulting effect is what usually forces participants to quit and not realise anything close to the levels of wealth they dreamed about. In most cases they do not have a good trainer, leader or mentor to show them the way of Solution Based Marketing and the full power of the internet. It’s this knowledge, not so much The Opportunity that leads to success as a network marketer.Conclusion.Like any business venture, and lets be honest, becoming an Independent Representative with Worldventures is a business venture, must be treated as such to be successful. You must have a plan, you must get quality training and you must dedicate regular and consistent time to your business.Success and longevity in any MLM business is dependent on 1) You and your knowledge; 2) having a good product; and finally and also least importantly; 3) Being part of a good company. When you satisfy the above criteria success becomes a viable possibility rather than just a dream.

Travel Agency Worth – Continued #3 of 4 (Business History and Your Dashboard)

Let’s talk about business history and your dashboard as the last of four key items in determining the value of your travel agency – operations/resource management, market position/agency image, financial management and business history.*Q: How long have you been in business?A: Buyers will pay for experience and agency posture in the community.Q: What is your business mix – percentage of commercial, retail and group?A: Each buyer will assign a different importance to each component. This ratio could have a material impact.Q: What is your destination/product mix – domestic vs. international in each business mix category?A: Buyers will find agencies with higher-than-average transactions (international transactions) more attractive.Q: What are your total gross sales, returns, net sales and commission revenues?A: Ticket returns and voids should not exceed 15%. Q: What is your productivity per agent and per employee? Productivity is defined as sales, net return divided by agents or employees, respectively.A: Target Acceptable Ratios: 3X revenue/salary including benefits or 2.5X without benefits.Q: What percentage of your total expenses is spent on employee-related costs?A: Approximately 50% to 60% is normal. If you are above these parameters, there is a problem in your expense area.Q: What percentage of your total business comes from a single customer, or, asked differently, is any one of your customers contributing more than 10% of your sales?A: If you depend on one or a few accounts for a large percentage of your revenues, you are more vulnerable than a well-balanced agency, and thus you are a greater purchase risk.Q: Do you have a clean historic and present bill of health with the ARC, IATAN, any other conferences and ASTA?A: If not, you should have well-documented explanations.Q: Do you have a business plan?A: Obviously a potential buyer is far more impressed by an organized, well-planned operation in which you can show your original business objectives, the current variances or changes in plan and your rationale behind it.In all of the criteria above let me stress the most important common element – consistency – as crucial.Have you monitored for at least the past twelve months:o How much time is spent per reservation per agent?o How many in/out phone calls per ticket?o What is your percentage of hotel bookings versus air bookings? o What percentage of reservations are changed?o How much does it cost to produce a ticket?o How much annual dollar volume is handled per agent?o How many tickets are produced per agent per hour?Do you really present a credible picture to a potential buyer? Do you have a dashboard that measures your activities and allows you to make mid-course corrections in the event one of your “instruments” indicates a problem?Your answers to these questions will help determine your agency’s net worth – and its value in the marketplace.Travel business consultants such as Travel Business CPR will review and prepare your operation for sale on your behalf.

Travel Agents

Becoming a Travel AgentTravel agents need to become well-organized and detail-oriented in order to compile information from various sources in order to plan and organize their clients travel needs. They encourage people to travel and help them plan and prepare for their trip. Travel agents help travelers sort through large amounts of information in order to make the best possible travel arrangements. As an agent you are also expected to know how to advise travelers about their destinations, such as the weather conditions, local ordinances and customs, attractions, exhibitions, and money exchanges. These professionals increasingly specialize in specific destinations or by type of travel. Those who specialize in a travel destination, will have the best chances for success. Travel agents held about 101,000 jobs in May 2006 and are found in every part of the country.Travel Agents face increasing competition from travel and airline websites for low-cost fares, but travelers still prefer using a travel agent who can cater to their specific needs. To attract these travelers, many agents specialize in specific interest destinations, travel to certain regions. Advanced computer systems and other networks make it possible for a growing number of travel agents to work from home; however, some agents desire to have an office presence for walk-in business. Opportunities should be better for agents who specialize in specific destinations, luxury travel, or particular types of travelers.Visualize a vacation of self-indulgence in massages, savory culinary treats and boutique shopping. Furthermore, luxury and specialty travel is expected to increase among the growing number of Americans who are seeking out exotic and unique vacations and a growing part of travel agents business is organizing and selling tours for the growing number of international visitors.The multi-billion dollar travel business is one of the largest industries in the country. Spending on travel is expected to increase significantly within the next 10 years. Much of the travel will continue to be related to business but as business activity expands so will business related travel. At the same time more leisure, longer frequent vacations, will also give people more time to travel for pleasure. As an Agent you will help travelers define their interests and needs, including time and budget concerns. Many new agents are under the impression that they are going to have to pay big dollars for travel agent training. Not so!