Durban - People posting pictures of extravagant holidays holding blue signs claim to be “living the life” thanks to a company called WorldVentures.
In South Africa, it is believed an estimated 20 000 people have signed up to the “travel agency”. But the National Consumer Commision has confirmed it’s looking into several complaints against the company through the South African Reserve Bank.
The company calls itself a “one-of-a-kind travel and entertainment community which embraces fun, freedom and fulfilment”.
It offers members discounted holiday packages for travel around the world, but it also thrives on a recruitment model through which the more people you sign up the more you earn.
The company’s overview states that “WorldVentures is a lifestyle company that markets travel-related products. Combining the power of the internet with the time-tested strength of word-of-mouth marketing, it is a leader in the leisure travel industry.”
“Make a living while living,” is the catchphrase to attract people.
“Trapped in a job you hate? Longing to see the world? Join us and become your own boss. Work from anywhere. Earn fabulous rewards like cars and vacations.”
While some have claimed this is a pyramid scheme, one WorldVentures representative, who met the Sunday Tribune but did not want to be named, said the company was based solely on “network marketing” and did not use the media to promote its business.
“This has changed my life completely. I used to work an eight to five job but now I work for just a few hours a week.
“There are many people who will say negative things about WorldVentures because they don’t know how to make it work for them. If you put your heart and soul into it, you will reap the rewards.
“The company is changing the lives of many people in South Africa,” said the representative.
The poster boy for WorldVentures in South Africa is Durbanite Sashin Govender. Govender, who now lives in Cape Town, is listed as the company’s youngest millionaire and the world’s youngest international marketing director.
On his Facebook profile and in YouTube videos, Govender is seen speaking at seminars around the world about his success through WorldVentures.
He joined while still at school and has recruited 9 000 members. Govender is also part of a group of youngsters who started a movement called Retired at 20. His father, Preggie Govender, also from Durban,was one of the first people to introduce WorldVentures to South Africa.
Today the company holds seminars throughout the country to encourage people to join.
HOW IT WORKS
WorldVentures requires a membership sign-up fee. There are two memberships available: Gold and Platinum.
Gold is a (+-R4 000 sign-up fee) and Platinum is |a (+-R6 000 sign-up fee), both include a monthly fee of R1 000.
After a time, points are earned through these payments, allowing you to use them to book various packages according to the company’s terms and conditions. If you sign up four other members, your monthly fee will be waived.
There is a commission structure in place, which highlights your earning potential based on the number of active members that make up your cycle.
The more members you recruit, the more money you earn.
Everything is calculated in dollars and each |member gets a mastercard into which their money |is deposited weekly, and it is up to them to do their taxes.
Is this a pyramid scheme?
WHAT THE LAW SAYS
The spokesman for the National Consumer Commission, Trevor Hattingh, said that there had been an exponential growth in pyramid schemes in the country.
“The commission is assessing the matter. The Reserve Bank has passed on complaints regarding WorldVentures and we are currently analysing those complaints.”
He said that according to the Consumer Protection Act, a pyramid scheme was defined as one in which members received money mostly for their recruitment of other people rather than from the sale of goods or services.
The Act also states that a pyramid scheme has various levels of participation on which existing members canvass and recruit new participants.
Each newly-recruited member, on joining, pays money which is distributed to one, some, or all of the existing members. This happens irrespective of whether or not new members receive anything.
Sunday Tribune