Fireflies Review: Really confusing discount travel packages
Fireflies provide no information on their website about who owns or runs the business.
The Fireflies website domain (“fireflies.com”) was first registered on January 27th, 1999. The registration details were last updated on December 17th, 2017.
Gergo Hegedus of Swiss Halley AG is listed as the owner, through an address in Zurich, Switzerland.
Other than claiming copyright of the Fireflies website, the corporate relationship between Fireflies and Swiss Halley AG is not disclosed.
On his LinkedIn profile, Gergo Hegedus cites himself as Director of Operations at Swiss Halley from May 2011 to May 2015.
From June 2015 he cites himself as co-owner and General Manager of Online Travel Support (Seychelles) LTD.
Hegedus’ Twitter profile backdates his involvement in Swiss Halley to 2012.
Online Travel Support (Seychelles) LTD appears to exist only on Hegedus’ LinkedIn profile.
I was unable to find any further information on the company or confirm Hegedus’ ongoing involvement with Swiss Halley and/or Fireflies.
In March 2017 a video titled “Mr. Urlich Marki – Swiss Halley AG. CEO (Fireflies)” was published on the YouTube channel Team Revolution Training.
Possibly due to language barriers, I was unable to ascertain whether Marki has an MLM history.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Fireflies Products
The Fireflies website essentially functions as a discount travel portal. Who provides the discounted travel services is not disclosed.
If you try to book any travel deals, the website asks you to login as a Fireflies member.
Fireflies membership corresponds with the purchase of a “travel package” subscription:
- Basic – $556 (annual)
- Smart – $1668 (five-year subscription)
- Life – $3892 (99 year subscription)
Fireflies discount travel is made up of Diamond vouchers, holiday coupons and a “best price option”.
Discounted travel deals provided on the Fireflies website show these three components in combination with an additional cost in USD.
Fireflies members obtain Diamond vouchers, holiday coupons and “best price option” points when they sign up.
Additional vouchers, coupons and points can be purchased through Loyalty Packages;
- Loyalty Standard – $76
- Loyalty Plus – $1728
- Loyalty Rapid – $2112
- Loyalty Pro – $4032
As well as individually:
- Diamond voucher – $240
- holiday coupon – $23.60
- best price option – $20
The “best price option” appears to be an optional 8% discount applied if a Fireflies affiliate opts to use best price points when booking travel.
The Fireflies Compensation Plan
The Fireflies compensation plan is beyond confusing and poorly presented by the company.
I’ve done my best to make sense of it present what was understandable below.
Fireflies Affiliate Ranks
There are twelve affiliate ranks within the Fireflies compensation plan.
Along with their respective qualification criteria, they are as follows:
- Beginner Distributor – sign up as a Fireflies affiliate for $69
- Travel Member – generate 2000 GV
- TM Club – generate 12,000 GV (max 4800 GV per unilevel leg)
- Executive Club – generate 25,000 GV (max 10,000 GV per unilevel leg)
- Double Executive Club – generate 70,000 GV (max 28,000 GV per unilevel leg)
- Gold Leader – generate 108,000 GV (max 43,200 GV per unilevel leg)
- Gold Founder – recruit and maintain three personally recruited Gold ranked affiliates
- Platinum Leader – have at least one Gold Leader in six unilevel legs (can be directly or indirectly recruited)
- Platinum Founder – have at least one Platinum Leader in three unilevel legs or at least eighteen Gold Units across your unilevel team
- Emerald Leader – have at least one Platinum leader in six unilevel legs or one Platinum Founder in one leg and one Platinum Leader in three legs or at least thirty-six Gold Units across your unilevel team
- Emerald Founder – have at least one Emerald Leader in three unilevel legs or at least one hundred and eight Gold Units across your unilevel team
- Diamond Leader – have at least one Emerald Leader in six unilevel legs or one Emerald Founder in one leg and one Emerald Leader in three legs or at least two hundred and sixteen Gold Units across your unilevel team
GV (referred to as “qualification points in the Fireflies compensation plan) stands for “Group Volume” and is sales volume generated by retail customers and recruited affiliates purchasing available discount services through Fireflies.
Gold Units are points acquired by having Gold Leader and higher ranked affiliates in your downline.
- a Gold Leader downline affiliate = 1 Gold Unit
- a Gold Founder downline affiliate = 3 Gold Units
- a Platinum Leader or higher downline affiliate = 6 Gold Units
Note that from each unilevel leg only Gold Units generated by the highest ranked affiliate in that leg are counted.
Finally the Fireflies compensation plan also mentions additional qualification criteria up to the Double Executive Club.
Here’s an example of the TM Club qualification:
Conditions:
In case a distributor reaches the career level TM Club, starting from their sponsor, every distributor in their upper-line steps to TM Club level, up to the first distributor that is on a higher career level than TM Club.
It sounds like upline affiliates are automatically promoted to TM Club when a downline qualifies as a TM Club affiliate.
To me this is a bonus, so I’m not sure why this is part of each ranks qualification criteria.
Retail and Recruitment Commissions
Fireflies pay a 5% commission on the sale of Basic, Smart and Life travel packages to retail customers and recruited affiliates.
The sale of Loyalty Packages generates a 3% commission.
Note that Fireflies subtract a transaction fee from commissions paid out.
Residual Commissions (unilevel)
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Residual unilevel commission rates for travel packages, travel vouchers, Multi Holiday Coupons, hotel room reservations, transfer reservations, car rentals, ticket purchases for activities or travel insurance purchases are as follows:
- Travel Members earn 4%
- TM Club affiliates earn 5%
- Executive Club affiliates earn 7%
- Double Executive Club affiliates earn 10%
- Gold Leaders earn 16.5%
- Gold Founders earn 21.5%
- Platinum Leaders earn 22.5%
- Platinum Founders earn 27.75%
- Emerald Leaders earn 30%
- Emerald Founders earn 31%
- Diamond Leaders earn 32%
Residual unilevel commission rates for Loyalty Packages are as follows:
- Travel Members and TM Club affiliates no commission
- Executive Club affiliates earn 2%
- Double Executive Club affiliates earn 4%
- Gold Leaders earn 6%
- Gold Founders earn 8%
- Platinum Leaders earn 10%
- Platinum Founders earn 12%
- Emerald Leaders earn 14%
- Emerald Founders and Diamond leaders earn 15%
Note that these are coded bonuses, meaning the highest rate is paid out (the rank of the affiliate making the sale), with leftover percentages paid to upline affiliates of higher rank.
If a Diamond Leader (including Emerald Founder for Loyalty Packages) makes the sale, they receive the full 32% or 15% payable.
There is an additional bonus from the Platinum rank called the “dividing component”.
This seems to be an additional percentage based on how many affiliates are at the same rank within a unilevel team.
The explanation in the Fireflies compensation plan makes no sense (see conclusion of this review), so I’m unable to provide specifics.
Leader Generation Bonus
The Leader Generation Bonus is a matching bonus on commissions earned by unilevel team affiliates.
- Gold Leaders earn up to 5% on levels 1 and 2
- Gold Founders earn up to 5% on levels 1 and 2 and up to 3% on level 3
- Platinum Leaders earn up to 5% on levels 1 and 2 and up to 3% on levels 3 and 4
- Platinum Founders and higher earn up to 5% on levels 1 and 2 and up to 3% on levels 3 and 4
Volume paid out via the Leader Generation Bonus is only payable once, meaning multiple affiliates earning on the same generation will receive reduced Leader Generation Bonus commission rates.
Travel Contest Bonus
Fireflies affiliates can qualify for a free trip every six months.
The Travel Contest Bonus is tracked via “travel points”.
Fireflies count 1% of Travel and Loyalty Package sales and a smaller percentage of other service sales toward travel points.
How many travel points are required to qualify for a trip appears to be at the discretion of Fireflies.
Capital Share Bonus
The Capital Share Bonus is made up of 2.11% of the purchase price of Travel and Loyalty Packages.
Fireflies affiliates earn a pro-rata share of the bonus by accumulating “leader points” (direct).
- 1 leader point is awarded for each unilevel leg that generates 10,000 GV a month
- 1 leader point can also be earned on per unilevel leg that on average has generated over 10,000 per month over the last six months, even if they don’t hit 10,000 for the particular month being calculated
Personally recruited affiliates earning leader points also generates leader points for the affiliate who recruited them (indirect):
- recruited affiliate earns 1 to 2 leader points = 1 point for their immediate upline
- recruited affiliate earns 3 to 5 leader points = 1.5 points for their immediate upline
- recruited affiliate earns 6 or more leader points = 2 points for their immediate upline
Based on the two ways affiliates can acquire leadership points (direct and indirect), at least four of either must be earned and two of the other (i.e. 4 direct and 2 indirect points or 4 indirect or two indirect points).
If the above qualification criteria is met, a Fireflies affiliate receives a pro-rata share of the Capital Share Bonus based on their total leadership points generated for that month.
Loyalty Cycle Bonus
The Loyalty Cycle Bonus rewards affiliates for purchasing a Loyalty Package and convincing others to do the same.
The Loyalty Cycle Bonus is paid out via “cycles”, which appear to be tracked throughout the unilevel team.
A cycle is made when one Loyalty Package is sold on one level, two on the next and three on a third.
I believe these levels can be anywhere within a unilevel team.
There are also “small cycles” that can be earned on, through a hopelessly confusing combination of Loyalty Package purchases and “bonus positions”.
Upon creating a small cycle, a $500 Loyalty Cycle Bonus is paid out.
After payment, the paid position moves into a Big cycle according to the rules of sponsor succession, furthermore, a Bonus position is created (see later).
Completing a “big cycle” generates a $5000 Loyalty Cycle Bonus.
I believe a “big cycle” refers to the cycle qualification criteria provided above (not small cycle).
Here the Fireflies compensation plan goes on and on for about ten pages pertaining to “cycle markings” and “cycle arrangement” restrictions.
None of it made any sense to me.
Joining Fireflies
$69 first year, $65 a year thereafter.
- Basic – $556
- Smart – $1668
- Life – $3892
New Fireflies affiliates can also opt to purchase the Basic package through two separate payments of $138 and a third payment of $280.
Conclusion
The core problem with the Fireflies and their travel-based MLM opportunity is that it’s neither attractive to retail customers or potential affiliates.
I can’t stress enough how much of a headache trying to understand Fireflies compensation plan and business model brings on.
Given the readily available nature of online travel and extreme competitiveness within the niche, who has time to sit down with a calculator and for a few hours try to make heads or tails of Fireflies’ offers?
Presented offers on the Fireflies website seem simple enough… until you realize you have to back calculate diamond vouchers, travel vouchers, other points I’m probably forgetting, keep track of how much you paid for said points and then with the USD component figure out if you’re actually saving money.
If you’re like me and value your time, no amount of stuffing around justifies this chore.
In that sense I can’t see Fireflies travel services appealing to anyone at a retail level.
On the business side of things, first and foremost selling discounts by way of vouchers is not a tangible product.
Fireflies take payment for services not yet rendered, which fuels the compensation plan.
This is a regulatory red flag.
Beyond that, the Fireflies compensation plan documentation is 58 pages long and a nightmare to get through.
The document reads more like legalese terms and conditions, the primary goal of which was obviously not to explain the Fireflies compensation plan.
At least not to any human readers.
In my compensation plan breakdown I mentioned a “dividing component” section of the plan that made no sense.
Here’s what you’re up against:
Dividing component is defined on the basis of the commissionable turnover in the Platinum or higher level distributor’s group generated by distributors who are on the equal career level, the number of the so-called dividing lines and the number of distributors whose level is the same as that of the
concerned distributor.
And don’t get me started on whatever this is supposed to be:
Unless you have a double degree in law and mathematics, you’re probably not going to be able to understand Fireflies’ compensation plan.
And if you did have such a degree, you’re probably better off pursuing other interests over marketing a confusing MLM marketing travel opportunity to likely even more confused customers.
Underlying Fireflies business model is the Achilles’ heel of MLM travel opportunities;
No incentive to generate retail sales.
Through package purchases Fireflies affiliates can buy in themselves and then just focus on recruiting other affiliates who do the same.
Perhaps the best example of this is the Loyalty cycle nonsense. You sign up as an affiliate, buy a travel package, buy a loyalty package and then get paid through cycling when recruits do the same.
Nothing beyond promised discounts is being purchased and there’s certainly no incentive to drive retail sales (of again, promised discounts).
What I suspect is the case is Fireflies is made up of affiliates who don’t entirely understand the company’s compensation plan, but do understand bare minimums on how to get paid.
Given what I was able to understand of the compensation plan, this would make Fireflies no different to other recruitment-driven MLM travel opportunities.
Given the mess the company’s own marketing materials are in, I’d say the only way to salvage the company is to entirely scrap the marketing department and start again from scratch.
Condense the compensation plan into five to ten pages, and if you can’t seriously think about cutting all the legalese crap from it.
If you can’t explain how affiliates are paid without pages and pages of disclaimers and cited restrictions, you need to take a long hard look at what you’re offering.
Then get rid of vouchers, diamond points and whatever other hoops customers need to jump through just to book travel.
What is the point of having a “best price option” other than to broadcast to retail customers who don’t have best price option access that you’re overcharging them.
Here’s a novel idea, give retail customers your “best price option” 100% of the time.
Pending drastic changes to the Fireflies MLM opportunity (read: complete overhaul), avoid unless you’re feeling like a glutton for punishment.
Oh sorry, I didn’t quite get it. Can you repeat?
Shaddap. I’m not going anywhere near Fireflies again unless I have to.
That was so bad it brought back Lyoness nightmares.
WOW…what an terrible program….cant even figure out what you save…. deals are not really deals…
Let me ask everyone…. how many TRAVEL MLM programs have ever seen success..
Answer….NONE!!!
Intresting topic. I use the website all the time. And got really good savings by Best Price Option. The insurance is amazing as well. Hotels are the bests. That is my experience. And the Loyalty cycle bonus is really working.
Also, you can use every dollars on your next trips that you paid for packages in advance. Best MLM ever. Very prompt comission payout.
I found a website where a relationship between SwissHalley and Fireflies is displayed.
(link: facebook.com/SwissHalleyMagyarorszag/photos/rpp.298351210226629/741337639261315/?type=3&theater)
I think this is a ponzi scheme, but I haven’t found any evidence of fraud.
Math is more easy than fireflies. I can not imagine people sign up for this confusing stuff to travel with and pay for a discount!
Dear Behind MLM,
I would like if you update this article. Fireflies continue to make people travel super. I will be happy to answer any questions you may have. This is the company that survived the Covid situation compared to many traditional businesses.
In 2020, we had slightly more than 600 non-cancellable reservations and two thousand can be canceled. In almost every case, we successfully helped our passengers.
Greetings,
István Varga
I’ll mark Fireflies for an update. If I get a headache again I’ll report back and leave it there.
With respect to travel, if the majority of travel is booked by Fireflies affiliates than that’s a problem.
Dear OZ,
I do not understand your answer. The Firelfies portal is used 80% by travellers, not distributors. The number of hotels has doubled in the last 1 year, there are a lot of developments and updates on the site. It’s worth a look around.
(Ozedit: spam removed)
Greetings,
István
1. Prove it.
2. Used != booking travel. What is the generated revenue split between retail bookers and recruited affiliates?
Fireflies made no sense for retail customers when I reviewed it.
Dear Oz,
Specifically, I just came home 2 weeks ago from a 12-night vacation in Mexico ( Cancun, Riu hotel) I paid €4,070 plus two “Best Price Options”, which would have been €6,900 with a genius discount on the booking.com.
Of course, I always take pictures of these price differences. The 2 Best Price Options cost €60, but I received a price advantage of €3,000, and not for the first time.
As I said, your article is outdated, from 5 years ago. There were 3-5 hotel suppliers we had, today 21. The difference is very big (we currently have 4.8 million hotel data).
Greetings,
István
Dear Oz,
Which month are you interested in?
Greetings,
István
The issue with Fireflies discounts is they are/were a nightmare to navigate through. No point having discounts if consumers are having to jump through umpteen confusing hoops to access them.
No range in particular. The last 3 months of 2022?
I can appreciate Fireflies has updated its business since I published this review in 2018. I’ll queue it up for an update but if I see the same confusing nonsense that’s what I’m going to report back.
edit: Fireflies is already on the review update list as per #8.
Dear Oz,
We combine 21 hotel suppliers into a single hotel database with API communication. Unfortunately, this type of system has limitations, such as search time for many destinations.
Basically, we work with live prices, it’s not complicated for customers.
We display the price together with the necessary products on the hotel search list. I sent a youtube link earlier, if you want to understand more, just watch some videos.
If you want to test the size of the hotel database, just start a search for the same date for two people on Firelfies, priceline or booking.com for Los Angeles, Miami or Antalya and see how many results there are.
This is a huge database with very great price advantages. Of course, not all hotels are always cheaper. There is nothing like it in the world. But in 70-80% of the cases, we give a more appropriate price than other market participants.
If you want I can send you an admin picture, with data overlaid so you can see there are many more travellers than new registrations.
The system and the products are incomprehensible to those to whom it is not explained. All network business and network product needs to be explained.
If it didn’t important, there would be no need for the company to pay comission to distributors because it would advertise itself without any underlying information. No?
The statistics you want to see I will download.
Start with this video: what is Fireflies?
(Ozedit: spam removed)
Dear OZ,
You are not talking to a Fireflies distributor.
I can’t give fixed numbers, only their relative ratio. Unfortunately, it is not possible to attach picture here, the comment section does not allow it.
The number of successful transactions compared to each other from October 1, 2022 to December 31, 2022.
In the 3 months examined, 64% of all successful transactions were either voucher or “Best Price Option” hotel reservations.
36% of the transactions were distributor annual fees. This is not a distribution of traffic, but a distribution of pieces based on the number of successful transactions. There was also a reservation for €8,800, but the annual entrance fee for a distributor is €72.
One third of this 36% entry fee came from new disztibutors, two thirds from renewing old distributor members.
It can be clearly stated that many more people make reservations than join. I’m not going to run away, you see my name, my company e-mail address, I’ll show you the specific numbers at any time during a zoom meeting.
Greetings,
István
The actual booking process was a nightmare back in 2018, as detailed in this review.
That’s not what I asked for. I asked for generated revenue company-wide, split between retail customers (travel booking revenue from non-affiliates) and affiliates (travel booking revenue and fees paid by affiliates).
Please don’t post marketing spam here.
Sorry I just saw this:
I know you can’t. This information isn’t typically disclosed because it gives away the pyramid scheme.
This doesn’t mean much without the dollar amounts. I’d be willing to bet more than 50% of Fireflies’ company-wide revenue is coming from affiliates (a combination of booked travel and annual fees).
Fireflies wasn’t attractive to retail customers in 2018. I won’t look at it again till it comes up for an update but I doubt much has changed.
Dear OZ, (Ozedit: derail removed)
As I said I’ll show you if you like.
I am not a distributor. I will be happy to share this non-public data with you at a zoom or google meet conference. (Ozedit: derails and spam removed)
Either provide the retail revenue data as requested or please stop wasting my time. It’s a simple percentage figure.
I am not interested in private webinars, your marketing excuses or whacky conspiracy theories.
When Fireflies comes up for a review update I’ll go over what’s available then and publish accordingly.
If you’re not going to provide the requested retail revenue for Fireflies and instead carry on like a pork chop, I’m going to have to spam-bin.
Dear Oz,
Answers,
distributor fee income from October 1 to December 31, 2022.
– 152 entry fees for new distributors.
Sales value: €10,944 new
-203 renewals entry fees for distributors joined more than 1 year ago.
€14,007.
Total Value of distributor entry fees: €24,951
Travel traffic:
1., hotel reservations with BPO ( Best Price Opcion) with bank card suplements of €180,289,
You can get a discount on the portal with bpo.
2., Vouchers credit card addition 22704EUR + 1716 vouchers booked, which is 200€
€343,000
365,704 is the voucher booking value.
Total hotel booking traffic from October 1 to December 31, 2022
Travel: €545,993
Fees for new distributors and old ones: €24,951
In addition, there were also travel package sales for new or old members.
We have a traveler who spent just the last year €59,000 on hotel rooms, probably because it’s not worth it.
Some of our travelers have been traveling since 2012 with us.
I guess you weren’t expecting these numbers. So you can belive me or not, I am one of the directors of the company, who has been here more than 12 years ago.
Since it is not possible to attach pictures, I can only show you the reservations behind the numbers if we organise a meeting. My goal would be to you write correct informations.
Maybe in 6 months, when we have more services, check the page again.
You can find me on facebook, or you see my email address.
Greetings,
István Varga
Thanks Istavan but that’s not what I asked for. Here, I’ll give you a template:
All you have to do is fill in the figures.
Dear Oz,
This is a much more complex task. We need to look at what percentage of those booking hotel rooms are distributors and how many percentage are not.
We also need to consider whether the system allows other people to book from one web office, e.g. family members. Plus there’s a feature where if I book for someone else, as a distributor I get an 8% comission on the price of the hotelbooking after check-in.
We have to check all bookings individually for this period. This takes some time.
Greetings,
István
Yeah, this is the most crucial information in determining whether Fireflies is operating as a pyramid scheme.
Affiliates booking through family members are affiliate bookings.
This is also affiliate booking revenue.
Retail customers have no ties to the company, period.
Dear OZ,
Two real situation:
If a distributor makes a reservation for someone, that user will be in contact with the company and our suppliers through our system. This is the same as when someone buys a product at a retail price from the distributor.
If a distributor and his family of 8 travel to the Maldives for 1 month? Does this not count as a user reservation? And this is the same as if the family uses washing powder, toothpaste and all other products from that particular network marketing company.
From this, the extra 7 people are indeed consumers. Theier never be a distributor. Turnover for the hotel, for the supliers, a real holiday, this persons not distributors, because theier not take part the system, theier just traveler 1-2-3 times a year.
My kids, and may uncle or my grandma not a networkors but have some hotel reservations.
Greetings,
István
These people have real travel problems. Overbookings in the hotels, etc… There were never distributors.
Legally, they are our users, they have to be dealt with, they ordered a service that they want to use without problems. Whether it’s a €80 Prague reservation or a €7,000 trip to Dominica.
The first situation is considered an affiliate purchase unless you track the sale to an actual retail customer.
The second situation is an affiliate purchase.
Dear OZ,
In the first situation, the distributor tracks the purchase. The distributor does not even receive the referral commission (8%) if the check-in does not take place.
We launched a new system on May 4 last year, where I can easily track purchases and registrations. It will be a bigger immersion. I’m looking forward to it.
We need to separate the types of the travelers. I can see 2022. 4th of may, we have 4271 purchases for 38 country and just 497 new registrations.
Greetings,
István
Dear Oz,
The second situation is understandable when it comes to family. Better clarify before we start this task.
My personal problem is that everyone travels, but there are hardly any new distributors, as you can see the number of new distributors above. On the other hand, it is good because they like and use the products.
A very important thing.
If someone becomes our distributor, he cannot make a reservation yet. Only if you have purchased a travel package. These are two completely separate things for our system.
I’m just wanting the dollar amounts of affiliate generated revenue in Fireflies vs that of retail customers. I’m not seeing dollar signs, just a lot of tangent explanations.
Already lost me with the confusion chief.
Dear Oz,
If you had worked for 12 years for a network company like Swiss Halley Ag, you would look at many aspects, not just the sum of 3 numbers and their relative value.
Besides traffic, the profit of the company, the minimum maintenance costs (sustainability without new network sales etc) the type of travelers, many things. Obviously the above may seem complicated.
We’ll work on the numbers to give you a simple picture based on your template.
All the Best,
István
Sorry I thought we were trying to establish whether Fireflies was still the retail mess it was in 2018. I didn’t realize we were discussing “many aspects”.
You’ve been trying to introduce “many aspects” into the conversation. I’ve had to steer us back on topic a few times now.