LGN Prosperity: Recruitment scam or legit travel club?
A lot of MLM travel club business opportunities seem to have sprung up this year with one of them being LGN Prosperity.
With the tagline ‘for a wealthy and successful living’, LGN Prosperity claim to offer members ‘the ability to save up to $1200 on a 7 Night/8 Day Condominium Stay to almost anywhere in the ENTIRE WORLD!!‘
This promise of course is no different to the myriad of other travel clubs out there and is nothing new. They all claim to offer amazing discounts on worldwide destinations so these days you’ve got to offer something different to make yourself stand out from the crowd.
Do LGN offer anything different or are they just another run of the mill recruitment driven MLM travel club business opportunity?
Let’s find out.
The Product: The LGN Prosperity Travel Card
LGN Prosperity offer only one product and it comes in the form of a travel card, or more commonly known in the industry as a travel voucher.
With the purchase of this travel voucher you are then entitled to make a booking via a third party travel company for discount accommodation.
The LGN Prosperity travel card in itself is marketed as a product despite it not having any real use unless you go ahead and book accommodation with it. On it’s own, the travel card is useless.
Is the LGN Prosperity Travel Card of any use or value?
When purchased, the LGN Prosperity travel card entitles the bearer to a 7 night and 8 day stay in accommodation at a variety of destinations. These accommodation packages are offered via LGN Prosperity’s ‘vacation search engine’, LGN Weeks.
The LGN Weeks website is operated and owned by a third party however, Holiday Travel of America. LGN Prosperity themselves do not handle the travel club side of the business, just the business opportunity itself.
Holiday Travel of America (HToA) bill themselves as a ‘travel incentive marketing company‘. In a nutshell they purchase bulk lots of off-peak available accommodation packages and resell them to their members.
HToA have been doing this since 1988 so it appears to be a sustainable business model.
What HToA don’t offer however is a business opportunity and that’s where LGN Prosperity come in. Combining HToA’s accommodation packages with an MLM business opportunity appears to be at the heart of LGN Prosperity.
The CEO of LGN Prosperity is a James Ward, who started LGN (the Little Guy Network) back in 2007. I can’t seem to find any link between Ward and HToA (founded by Rich Romanello), so I can only assume that they are entirely separate entities. From the looks of it the business relationship doesn’t seem to extend past LGN Prosperity contracting HToA to handle the accommodation travel side of the business.
As far as value goes, it’s worth noting that the packages LGN Prosperity’s travel card entitles you to purchase are slightly different to HToA’s own offering.
For starters LGN Prosperity’s travel packages are fixed at 7 nights and 8 eight days, whilst HToA’s packages appear to focus around packages varying from 2-10 nights.
Also HToA’s vouchers expire after 12 months whereas LGN Prosperity’s travel card does not. Both however are non-refundable, however they are freely transferable – there doesn’t appear to be any bond between the purchaser of the travel card and the travel card itself.
One final note is that you should be aware that you are only purchasing accommodation from LGN Prosperity and HToA. Flights and other expenses are completely up to you to organise and bear the cost of.
The LGN Prosperity Compensation Plan
I plan on going over the LGN compensation plan in depth at a later date but the main point to take away from it are that it’s a forced 2×2 matrix and that the travel cards are offered on a retail basis.
I’ve previously written about matrix model MLM compensation plans previously so I’ll skip over the basics of the 2×2 matrix model.
Regarding the retail travel cards, unlike a lot of the MLM travel club companies out there, LGN Prosperity do offer their ‘product’ on a retail only basis. That is you are able to purchase the cards retail without buying into the business opportunity.
The retail purchasability of the cards is the good news, the bad news is that there’s only $30 difference between the retail card and purchasing the retail card with the business opportunity so I don’t really see many people purchasing the cards on a retail only basis.
Finally, and while I will pen an article going over the compensation plan in depth in the future, the real bad news is that LGN Prosperity’s suffers from the same problem as most other MLM travel clubs out there. That is, it’s impossible to move the 2×2 matrix without signing up either new retail customers or business associates somewhere down along the line.
This is due to the simple fact that only new retail customers and business associates are added to the matrix in new positions, unfortunately there’s no correlation with use of a travel card and the matrix compensation plan.
This I suspect has something to do with the cards most likely being the third party property of HToA, rather then LGN Prosperity themselves. So this means that whilst existing business associates will follow you in a new matrix you are assigned to, they themselves won’t move into these positions unless someone in their downline recruits either new retail customers or new business associates to the company.
The lack of residual income via use of the travel card is quite a shame really as the travel cards appear to be handed out quite freely by LGN Prosperity. You get one each time you sign someone up either as a new retail customer or business associate as well as each time you cycle out a matrix.
This could either be seen as valuable rewards system or sign of lack of value in the travel card itself.
Conclusion
Whilst a retail option to purchase a travel card is a welcome addition mostly lacking in other MLM travel clubs, the fact that new retail customers or business associates are required to keep the commission matrices rolling fails to differentiate LGN Prosperity from other recruitment driven travel clubs.
At the end of the day if you’re not recruiting new retail customers or business associates, nobody gets paid.
Coupled with this is the fact that if you’re successful in LGN Prosperity it’s clear to see that you’re going to rack up a hell of a lot of travel cards, which as I mentioned earlier aren’t really of any value on their own. It’s only when you use them to purchase accommodation that any value is gained and even then, you’re still spending money.
Thus the true cost of LGN Prosperity’s products varies as each travel package will be slightly different in price. This makes it hard to judge just how much of the profit you might make in LGN Prosperity due to having to continually re-invest in the accommodation packages to get any use of the product you’re selling.
Of course you could totally ignore the product and choose to just focus on recruiting new members to LGN so that you get your commission payouts but well, we all know what that would make LGN now don’t we.
That’s right! If you do not recruit or at least sell the travel cards to customers there will be no profit at all. The most important thing in this case, is that once you get six people under you you will make a whopping $777 which is not bad. In Latin American countries this sort of money is very attractive since you will be making a good “salary” instead of spending 48 hrs a week for that kind of money.
LGN Prosperity is a partner of HTOA – a Reseller of RCI Timeshares. The inventory found in LGN Weeks are the same with the inventory that are also found in RCI.
The LGN Card is a Prepaid Version of a Regular Timeshare Investment with the Same Benefits Without the Huge Investment and Annual Condominium Dues.
The Value Of LGN Travel Card
In other words, purchasing the LGN Travel Card, a card holder no longer needs to invest a huge amount of money in timeshares just to enjoy up to 80% Discounts in hotel, resorts, condominium accommodations for a 1 week vacation. The LGN Travel Card is TRANSFERABLE and has NO EXPIRATION and can be booked any time.
Regular Time Share Investment VS. The LGN Travel Card
My father has an investment in Sunrise Holiday Mansion here in Tagaytay, Philippines. Sunrise Holiday Mansion is listed in RCI and LGN Weeks as one of their destinations. The regular rack rate for a Non-Member is higher than the price offered to its members. My father paid for Php400,000 (US$8,900)for the timeshare investment in exchange for a 1 Week Free Use for 2 Bedrooms for forty years. However, he also pays Php9,000 (US$200) Annual Dues PLUS another $150 to RCI if he wants to exchange his week with other timeshare holders globally.
LGN Prosperity offers a product that has real value…Who wouldn’t love to travel and see the world in the first place? With your LGN Travel Card, it will give you a huge amount of savings in accommodations in 3,500 destinations worldwide that can book minimum of 2 and maximum of 10 people (depending on availability) for $300 for a 1 Week Vacation.
When you buy a Travel Card…you may opt to become a Reseller or Associate with the company by just adding $30. But the company will not force you if you just want to purchase the Travel Card. As an associate, you will be given your personalized website to market the LGN Travel Card and the opportunity (which is optional). The associate can earn 2 ways…First by retailing the LGN Card to people who just wants to buy the card (Associate Earns $107 = 40% per card on repeat sales. Second, is build a network of distributors (Associate Earns thru the 2X2 Follow Me Matrix Compensation Plan).
My Thoughts On The 2X2 Follow Me Matrix
Having been in the network marketing industry for 10 years now, I find the 2×2 Follow Me Matrix the most rewarding compared with the binary and uni-level compensation plans. I prefer to get paid now than the future income promised by most of the mlm companies being offered out there. Sad to say, most of them just fail you.
Getting paid now in LGN’s 2X2 Follow Me Matrix that pays out $600/Cycle, together with the Overriding Commissions is MORE REWARDING FOR ME because it commensurate my time, effort, money that I invest in network building. Furthermore, the ROI (Return On Investment) is faster.
Who Is Our Market?
1. Travellers
2. People Who Wants To See The World
3. Travel Agents and Agencies
4. People Who Are Looking For A Business and Tired Of Employment
5. People Who Doesn’t Have A Job or Looking For Part Time Business To Augment Their Income
6. Network Marketers Tired Of The Binary & Uni-Level
7. Overseas Filino Workers
8. Online Marketers
9. Corporate Accounts
10. Business Organizations
And a lot more!
Francis
Manila, Philippines
Nobody is arguing that the 2×2 doesn’t pay out, or that it’s any less or more rewarding than other MLM compensation plans – only that it’s unsustainable. You need to constantly be recruiting new members to the business to cycle out of the matrix and as such can completely ignore the travel and/or retail side of the business.
This in itself should sound alarm bells. Getting paid now sounds nice in theory but if it comes at the expense of long term wealth and sustainability in a business model, well then hey, you’re only kidding yourself.
ANY sort of alleged MLM that pays on “recruiting only” is a pyramid scheme, no ifs, ands, or buts about it.
hay guys untill now we donot recieve our commission in lgn… mindanao team….
james please our comission pambili payan ng gatas at gamot
These are all so in the past!
We get 60% from the net profit if there are people who books from Hotel, Car Rent and / or Cruising from our travel portal except the plane ticket. In any traditional business, no sale means no profit!
Whats the difference with non-traditional except if there is no product or services to sell and the President is only a name or a mystery but not with JAMES WARD whom we have met in Paris for the Grand Launching.
He mentioned about additional benefits that is like having a share in the company or your so called RESIDUAL INCOME! Guess what? Still no monthly fee, no quota, just a business you build or not! You are paid based from what you deserve! Isn’t that normal enough?
If any of you have something better to offer than this aside for deep investigation that is without relevance then pls share it to the world and let us see what you got better to offer.
Everybody is making an opportunity out of an opportunity… as far as it is legal, profitable, fair and makes sense then that is good business for us.
Delayed commissions but not unpaid due to some adjustments made from LGN PROSPERITY to LGN INTERNATIONAL. You need to read your emails to know the explanation of James Ward himself…
See you at the top!
Given that LGN Prosperity don’t actually handle these bookings, are you receiving these commissions from the third party affiliate companies or LGN Prosperity themselves?
As far as the LGN Prosperity opportunity itself goes, as far as I can see the company is still itself only marketing membership to said travel club and paying out commissions on the recruitment of new members?
I still have the LGN travel card with me which I haven’t used. Am still able to use it?
Thanks, Aurora
Presumably there’s an issuer on the card or number to call?
If not, you’re probably out of luck.