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.
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.