Tourism and Network Marketing. Compensation Plan of a Travel Company
A tourism MLM company is an online travel agency that makes wholesale purchases of travel services from suppliers worldwide and sells them through a distributor network. Members of the partner network act as booking agents and have access to offers at wholesale prices.
Travel services include flights, car rentals, hotel accommodations, various cruises, tours, and many other adventurous packages.
The increasing number of contractors in the tourism industry is raising the demand for direct sales. More and more existing travel agencies are integrating multi-level referral programs. The established partnership structure increases the company's level and quantity of sales, receiving compensation in the form of discounts or even free personal trips.
Why You Should Invest in a Tourist MLM Business
- Quick return on investment. With a successful start, you can achieve operational profitability as early as the next high season (summer).
- Low risk level. You purchase goods that will not decrease in value or spoil.
- Easy start. You need to register an LLC or an individual entrepreneur and contact an experienced contractor who will help write a marketing plan, create a website, develop a system with personal accounts, and automate most of the business processes.
- Low cost. A similar online business requires less financial investment than a traditional business.
Main Expenses When Launching a Tour Company
- Company Registration and Tax Payment. It is better to officially register your business and pay taxes than to constantly fear persecution by the state;
- Payroll fund. You can start working independently as long as the workload allows. In the future, managers will be needed to search for new offers and develop tours.
- Technical implementation and project support. For a quality start, the company needs to create a website, set up landing pages, develop functional personal accounts, and much more. A team of professionals will allow automating business processes with minimal costs and without loss of quality.
The advantage of using MLM in the tourism industry is that the manager does not need to worry about regular optimization of warehouse logistics, office rentals, and advertising campaigns.
Marketing of a tourism MLM company using the example of DreamTrips
The idea of combining network marketing with travel is not new, many companies have tried to do this, including Clubfreedom, TVI Express, FireFlies, and others.
One of the brightest players in this niche is the holding World Ventures, founded in 2005 in Texas. DreamTrips - a tourism MLM agency, a club of travelers that is part of this holding. The company's representatives, numbering over 500 thousand, work remotely in more than 30 countries. WorldVentures collaborate with ROVIA, one of the largest operators in the world, and in fact, DreamTrips offers a huge variety of tours at minimal prices.
In the tourist network business, often there is a fixed cost to enter the structure (startup fee) and mandatory monthly payments. This is confirmed by the example of the procedure for joining the DreamTrips club, where you need to subscribe to Gold (participation cost will be a $280 annual deposit and a $57 monthly subscription) or Platinum (participation cost will be a $480 annual deposit and a $100 monthly subscription). The invested money is converted into internal currency - points, which can be used to purchase vouchers. Membership in the structure will cost at least $960 per year.
DreamTrips operates on the principle of a cyclical binary plan, and more information about this type of marketing can be found in the article BINARY IN MLM COMPANY. HOW BINARY MARKETING PLAN WORKS.
Any marketing should include conditions for increasing and maintaining qualification levels. DreamTrips marketing allows you to move up 11 ranks, namely:
- Representative - the initial level that a partner receives after paying the entry package.
- Qualified Representative - a partner who has referred 4 referrals. Upon achieving this qualification, the distributor does not need to pay a monthly fee.
- Senior Representative - qualification is assigned when a partner builds a structure in which there are 30 people in each branch.
- Director - qualification is assigned when a partner builds a structure in which there are 90 people in each branch. Upon reaching the director level, the partner begins to receive a fully passive income.
- Marketing Director - qualification is assigned when a partner builds a structure in which there are 200 people in each branch.
- Regional Marketing Director - qualification is assigned when a partner builds a structure in which there are 300 people in each branch. From this rank, there is an opportunity to receive a bonus in the form of a car or real estate.
- National Marketing Director - qualification is assigned when a partner builds a structure in which there are 600 people in each branch. From this rank, there is an opportunity to receive a bonus in the form of a car or real estate.
- International Marketing Director - qualification is assigned when a partner builds a structure in which there are 1000 people in each branch.
DreamTrips Bonus Program
Inclusion of various compensation payments makes DreamTrips marketing more attractive. Bonuses included in the compensation plan of this company:
1). Referral. The company pays $20 for each personally invited person. For 6 personally invited clients within the first 30 days, the company pays $250 + 100 bonus.
2). Bonus for closing a cycle. To receive this reward, you need to close 3 sales in each binary branch. For the first 60 days, the compensation amount for a cycle is $200. After that, the compensation amount is $100, but the partner has the opportunity to double the bonus amount by completing at least 3 cycles per week.
3). Team membership fee bonuses. For each monthly fee, the company pays a bonus to the sponsor above. The company pays $40 for payments from international partners and $20 for payments from people in the USA.
Example: to become a director, you need a minimum of 90 active partners in the right and 90 in the left leg.
90 + 90 / 6 x 40 $ = 1200 $ per month
4). Accumulative bonus. For every sixth cycle of sold vouchers, $100 is credited to the distributor's account. This bonus can be used as internal currency to pay for your purchases.
5). Car and Home Bonus. Monthly, the company invests $1000 in a car or real estate for partners who have achieved the rank of Regional Director. For International Directors, the car payment is $1500 per month and the home payment is $3000 per month.
6). Fast Start Bonus. If a person makes 30 sales on the left and 30 sales on the right in the first 60 days of collaboration, they receive $1000 in their account. If a partner achieves the Director rank
- for the first 12 weeks, you get $5000
- for the first 17 weeks, you get $2000
- for the first 26 weeks, you get $500
Developing any compensation plan requires an expert approach and experience in creating marketing plans for various business directions. It is worth noting that most contractors in the business analytics field are not familiar with the specifics of the MLM industry and do not have practice in marketing composition. By turning to IT specialists working in the network business field, you will save both time and financial resources.
Team FlawlessMLM, based on years of experience, will help you choose the type of marketing, minimize possible risks, optimize marketing according to niche trends and the specifics of your business.
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