iTravelParty Review: Matrix scheme disguised with passports

iTravelParty operate in the travel MLM niche.

The company provides a map of Belize on the “contact us” page of their website, suggesting that might be where they are registered. Note however that no actual corporate address is provided.

Identified as the CEO of iTravelParty on their website is Daniel Butts (right).

Butts first appeared on BehindMLM as the co-founder of Rocket Cash Cycler, a Ponzi scheme launched in 2013.

Rocket Cash Cycler saw investors deposit $315 and get paid a $5300 ROI once enough subsequent positions had been invested in.

Prior to RocketCashCycler Butts launched EZ Wealth Formula, which saw affiliates charged $84 to join and paid to recruit new affiliates.

Read on for a full review of the iTravelParty MLM business opportunity.

The iTravelParty Product Line

iTravelParty market travel club memberships, which provide access to third-party travel-related discounts.

These services are offered through separate “The Travel Party” branding:

At The Travel Party, we are dedicated to making life experiences more affordable and opening doors to the amazing world that we all call home.

Your Travel Party subscription could pay for itself with the money saved from just your first booking.

30%, 50% and even up to 90% off what you would normally pay when you book travel online from some of the big web portals.

The Travel Party service is available through what iTravelParty call “Tourist” membership, a retail annual subscription of $199.

TheTravelParty Tourist Private Membership enables access to a silver booking engine with unpublished rates on Cruises, Hotels, Shows, Attractions, Excursions, Car Rentals, and much more…

It can also be accessed through iTravelParty affiliate membership ($299 and then $89 a month).

iTravelParty claim affiliates are given access to a “gold booking engine” which provides “greater discounts”.

The iTravelParty Compensation Plan

 

Update 30th July 2016 – Since launching iTravel Party have updated their compensation plan.

BehindMLM has published an updated analysis of the new compensation plan in our iTravel Party Review v2.0. /end update

 

The iTravelParty compensation plan pays affiliates to sell Tourist subscriptions to retail customers.

It also pays affiliates to recruit new affiliates, both upfront via a matrix and residually via a unilevel backend.

Retail Commissions

iTravelParty affiliates are paid a 40% commission when they sell $199 Tourist subscriptions to retail customers (non-affiliates).

Recruitment Commissions

iTravelParty affiliates are paid to recruit new affiliates, through what the company calls a “Passport Bonus”.

The Passport Bonus is presented as affiliates “collecting” passport stamps whenever they sign up new affiliates.

In reality it’s a 2×2 matrix, with commissions paid on the recruitment of new affiliates.

A 2×2 matrix places an affiliate at the top of the matrix, with two positions directly under them (level 1):

The second level of the matrix is created by splitting each of these level 1 positions into two new positions, with each matrix having six positions in total.

When all six positions in the matrix are filled, a $400 commission is paid out and the affiliate is placed in a new matrix.

Residual Recruitment Commissions

Each iTravelParty affiliate pays a monthly $89 fee, with that fee commissionable via a unilevel compensation structure.

An affiliate’s own monthly payment of $89 (60 PV) qualifies them for unilevel commissions.

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 of these level 1 affiliates go on to 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.

iTravelParty cap payable unilevel levels at nine, with commissions paid out as a percentage of the membership fees paid by affiliates in the unilevel team.

How many levels of recruitment an iTravelParty affiliate is paid on is determined by how many affiliate’s they have in their downline paying fees each month:

• Bronze (120 GV) – 10% on level 1
• Silver (240 GV) – 10% on levels 1 and 2
• Gold (1000 GV) – 10% on levels 1 and 2 and 5% on level 3
• Director (5000 GV) – 10% on levels 1 and 2 and 5% on levels 3 and 4
• Executive Director (10,000 GV) – 10% on levels 1 and 2 and 5% on levels 3 to 5
• Corporate Director (25,000 GV) – 10% on levels 1 and 2 and 5% on levels 3 to 6
• Premier (50,000 GV) – 10% on levels 1 and 2 and 5% on levels 3 to 7
• Ambassador (100,000 GV) – 10% on levels 1 and 2, 5% on levels 3 to 7 and 3% on level 8
• Royal Ambassador (250,000 GV) – 10% on levels 1 and 2, 5% on levels 3 to 7, 3% on level 8 and 2% on level 9

Note that GV stands for “Group Volume”, a unit used to track the volume of monthly affiliate fees are being paid throughout a recruited downline.

One $89 monthly affiliate fee paid by a recruited affiliate in a unilevel team equates to 60 GV.

Finally, for the purpose of qualification note that

• at the Gold, Director and Executive Director ranks, no more than 60% of required GV can come from any one unilevel leg
• at the Corporate Director or higher ranks, no more than 40% of the required GV can come from any one unilevel leg

Matching Bonus

iTravelParty affiliates are able to earn a percentage match of commissions paid to personally recruited affiliates.

How much of a percentage is matched is determined by an iTravelParty affiliate’s rank (see unilevel explanation above):

• Director – 5%
• Executive Director – 6%
• Corporate Director – 7%
• Premier – 8%
• Ambassador – 9%
• Royal Ambassador – 10%

Rank Advancement Bonus

Upon reaching certain ranks within the iTravelParty compensation plan (see unilevel explanation above), a one-time cash bonus is paid out as follows:

• Director – $200
• Executive Director – $500
• Corporate Director – $1000
• Premier – $2000
• Ambassador – $5000
• Royal Ambassador – $10,000

Note that iTravelParty affiliates must maintain these ranks for two consecutive months before the bonus is paid out.

Joining iTravelParty

Affiliate membership with iTravelParty is $299 and then $89 a month.

Conclusion

As is typical of travel niche MLM, commissions in iTravelParty have nothing to do with travel.

The retail subscription is legitimate in and of itself, with non-affiliates paying a fee to access travel discounts, however it is dwarfed by the less legitimate aspects of iTravelParty’s compensation plan.

Behind the facade of passports and collection, all we’re looking at here is a simple 2×2 matrix recruitment scheme, with a residual unilevel tacked onto the end.

You sign up as an iTravelParty affiliate, recruit others and once enough affiliates are recruited (your matrix fills up), you get paid a $400 commission.

You get put into another matrix and the process repeats itself.

This compensation structure equates to a pyramid scheme, with recruitment of new affiliates the sole required criteria in order for commissions to be paid out.

The unilevel residual backend sees affiliates charged a participation fee, which is then shuffled around to pay out those with the largest recruited downlines.

The matrix component of the compensation plan requires constant recruitment of new affiliates, failing which the matrices will stall and nobody gets paid.

When that happens, those at the bottom of the scheme (most recently recruited) will stop paying their $89 a month, which will mean those above them in the company-wide unilevel will stop getting paid.

They too then stop paying their $89 a month and before you know it, iTravelParty has collapsed.

But not before Daniel Butts and friends, who naturally will have preloaded the matrix and sit at the of the company-wide unilevel, have collected the vast majority of affiliate fees paid in.

 

Update 30th July 2016 – Since launching iTravel Party have updated their compensation plan.

BehindMLM has published an updated analysis of the new compensation plan in our iTravel Party Review v2.0.

 

Update 5th June 2018 – iTravel Party has changed its compensation plan again, prompting BehindMLM to publish an updated The Travel Party review on May 28th, 2018.