InteleTravel Scam: Pyramid Scheme or MLM? [Review]

If you’re on the lookout for a side hustle or an additional source of income, you may have heard about InteleTravel. It’s a travel host agency that relies on a network of independent distributors to market its services. You might even know someone who’s a fan of the company and has pitched the idea to you.

But is InteleTravel a legit MLM opportunity, or is it a pyramid scheme in disguise? And more importantly, can you realistically make money with it? In this review, we’ll take a closer look at what InteleTravel offers and whether it’s worth your time and effort.

As an online entrepreneur, I have reviewed many similar online opportunities over the years. So I can tell you what you need to know.

As a disclaimer, I want to make it clear that I’m not affiliated with InteleTravel in any way. I’m not being paid to write this review, and I have no stake in whether you decide to join the company or not. My goal is to give you an honest and unbiased assessment of the opportunity.

At the end of the review, I’ll also tell you the alternative that’s helped me make a full-time passive income online.

What Is InteleTravel?

InteleTravel is an MLM firm started in the US and has now entered the British market, becoming a member of ABTA last year. ABTA represents travel agents in the United Kingdom. Although InteleTravel has not yet announced that they hold an ATOL license in the UK, they’re working towards getting one. ATOL stands for Air Travel Organiser’s Licence.

InteleTravel claims that anyone can start their own travel agency from home and earn a commission on all bookings. Whether you want to earn a living selling vacations, run a side business booking trips for friends and family, or just book your own trips, InteleTravel says it’s possible with their system.

InteleTravel’s system has been compared to similar systems in the multi-level-marketing industry, such as World Ventures. 

You may also want to read our article on the top MLM companies.

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Meet James Ferrara: The Co-Founder and President of InteleTravel

James Ferrara is the man behind the innovative vacation package business model that the company is known for today.

James has had an interesting career path, having worked in various industries. He studied Real Estate Development at New York University from 1986 to 1988 and also has a BA in Theatre Studies and Anthropology. Despite his diverse educational background, he pursued a career in business and started his first company in 1990.

It wasn’t until 1992 that InteleTravel officially began operations. James had a different approach to running his business compared to others in the industry. He didn’t believe in setting quotas for his salespeople or requiring a particular level of education for his employees. However, proper accreditation was a must for his representatives.

Today, InteleTravel is a successful company, and James Ferrara’s vision has helped it grow into what it is today.

Is InteleTravel An MLM?

Yes, it’s a legit multi-level marketing (MLM) company that offers fantastic discounts on flights, hotels, and more.

InteleTravel provides all-inclusive packages that are perfect for travelers who want to explore the world without the hassle of planning everything themselves. And the best part is, you can become an InteleTravel agent and start earning commissions on sales and recruits.

As an agent, you’ll run your own business, but keep in mind that you won’t receive a regular salary. Your earnings will depend on how many people you recruit to work under you and how successful they are in generating sales and new recruits.

It may sound complex, but the MLM structure is pretty straightforward. If you recruit ten people and each of them recruits ten more, you’ll earn commissions from everyone in the triangle. And if you can bring in just ten people, you’ll make $1100.

Of course, success in MLM requires a large and active downline. The more people you have working under you, the more potential for earning passive income.

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Is InteleTravel A Pyramid Scheme?

No, InteleTravel is not a pyramid scheme. It is a legitimate company that has been helping people plan their trips for over 25 years.

InteleTravel does not sell tangible products but instead partners with various travel providers to offer affordable vacation packages. These providers include well-known names in the industry such as Club Med, Sandals, Hilton, W Hotels, Travel Insured, Travel Impressions, Funjet Vacations, Disney Vacations, Avis, Hertz, and Budget.

Now, you might be wondering, what is a pyramid scheme? A pyramid scheme is a fraudulent business model that promises members money or services in exchange for recruiting new members. It is unsustainable, and often a scam, because those at the bottom end up losing money.

Pyramid schemes require members to pay a membership fee, and the company running the scheme rewards members by sharing a portion of the funds raised from each additional member they recruit. The scheme is only profitable for the directors at the top of the pyramid since they receive a portion of the payments from every newly recruited member.

Pyramid schemes almost never offer valuable goods or services, and their only source of revenue comes from recruiting new members and soliciting more money from current members. The scam can only continue if there are new recruits and other sources of income, but it will eventually fail, leaving most members at the lowest level of the pyramid to lose their money.

A good example of a pyramid scheme is Vemma, a producer of energy and weight loss drinks. The FTC accused Vemma of operating a pyramid scheme in August 2015, which paid more to recruit new members than to sell products. Most participants, who were typically college students and young people promised high compensation, lost money.

You may read our article on the difference between MLM and pyramid schemes here.

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Is InteleTravel a Scam?

No, InteleTravel is not a scam. It is a legitimate MLM company. According to the Oxford Living Dictionary, a scam is defined as “a dishonest scheme; a fraud”. However, Inteletravel is not dishonest or fraudulent.

But can you really make money selling Inteletravel vacation packages? Well, it is true that most Inteletravel agents don’t earn much money, if any at all. However, if you are willing to put in a lot of effort, you can make money with Inteletravel. But here’s the thing: the people who make a lot of money with Inteletravel usually do so by aggressively recruiting others.

One thing to note is that Inteletravel has been known to make disingenuous and irresponsible marketing claims to recruit members. This has led some people to view Inteletravel as an MLM scam.

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InteleTravel Compensation Plan

If you’re interested in making money with InteleTravel, it’s important to understand their compensation plan. PlanNet Marketing is the company that InteleTravel is connected to, and they use a commission-based system instead of a traditional salary structure.

So, how does it work? When someone buys a product through InteleTravel, the company earns a commission of 8% to 16% of the sale price. As a representative for InteleTravel, you can earn between 70% to 80% of that commission, which is between 8% to 16% of the sale price.

Let’s break it down with an example. If someone buys a product for $2,000, the company would earn a commission of $160 ($2,000 x 8%). As a representative, you can expect to earn 80% of that commission, which would be $128 ($160 x 80%).

Now, it’s important to note that this is just an example, and your earnings will depend on your sales and the commission rate for each product. But it gives you an idea of how you can make money with InteleTravel.

While we’ve covered how the compensation plan works, it’s worth mentioning that InteleTravel is a multi-level marketing (MLM) company. MLMs can be controversial, and everyone has their own opinion on them. So, it’s up to you to decide if this opportunity is right for you.

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InteleTravel Agent Salaries: How Much Can You Make?

Are you considering becoming an InteleTravel agent and wondering how much you can earn? Let’s take a look at the numbers.

In 2019, the average annual salary of an InteleTravel agent was $140.57, while the average salary of a Six Star director was an impressive $737,780.80. Keep in mind that only a small percentage of agents achieve this level of success, and it takes a lot of hard work and dedication.

It’s worth noting that almost all (97.5%) of InteleTravel agents are female, and they earned an average total of $141, which they split among themselves. This isn’t a lot of money, but it’s important to remember that many agents do this as a side gig and don’t rely on it as their primary source of income.

Now, let’s talk about the costs associated with becoming an InteleTravel agent. The enrollment fee is $179.99, and there are also monthly administrative fees of $39.95 and $19.95. This can be a significant investment, so make sure you consider the costs before signing up.

If you’re based in the UK, the average commission for InteleTravel agents is £2,368, and the company expects its 10,556 UK agents to sell £25 million worth of vacations this year. Even if you receive a 12% commission, that’s still only £284 in total revenue for each agent. However, this is still more than the industry average, so it’s a good opportunity to make some extra cash.

It’s important to note that some agents do earn more than others, and if you’re dedicated and work hard, you can make a good income as a freelance travel agent. According to InteleTravel, the average transaction value for its UK agents has increased from £834 to £1,710, which is promising.

Just remember that as an independent travel agent, you won’t receive any orders from InteleTravel, so you’ll have to rely on personal contacts, referrals, and networks to succeed.

Joining InteleTravel as an Agent: How Much Does It Cost?

Joining is a one-time fee of $179, which will give you access to a range of InteleTravel tools to help you get started. These include a personalized booking website, a marketing strategy, business stationery, and a tool to support you with your travel agency work.

To enroll, you can submit your application online or get in touch with the person who referred you to the company. However, it’s important to note that in addition to the joining fee, there is also a monthly administrative fee of $39. Plus, there’s an additional monthly PlaNet Marketing administrative fee of $19.95, making the total cost $59 per month.

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Benefits of Joining InteleTravel

InteleTrust Guarantee: A Risk-Free Option

InteleTravel stands out from other MLMs by offering a unique InteleTrust Guarantee. If you decide that the service is not for you within the first month, you can get a full refund without any questions asked. 

You can also get your registration fee back if you cancel within 14 days of signing up, providing written notice, and deducting any commission you earned as an intermediary. This is a risk-free option that many other MLMs do not offer.

Suitable for Travelers: A Travel-Oriented Company

InteleTravel is a travel-oriented company, making it a perfect fit for those who enjoy traveling. The company offers travel discounts that may be enough to convince you to give it a try. You can enjoy cheaper hotel stays, cheaper flights, and guaranteed cabins on cruises. This is an opportunity that travelers should not miss out on.

Good BBB Rating: Trustworthy Business

InteleTravel has an A+ rating from the Better Business Bureau, which is impressive considering its lengthy history in the market. This rating is a testament to the company’s reliability and trustworthiness, which is essential when choosing a business to work with.

Educational Resources: A Resourceful Company

InteleTravel offers numerous educational resources to expand your travel expertise. You can access webinars and boot camps to improve your chances of making it as a freelance travel agent. It is refreshing to see an MLM company invest in training and education, as it sets InteleTravel apart from other MLMs that leave you to figure things out on your own.

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Drawbacks of Joining InteleTravel

No Income Disclosure

InteleTravel doesn’t publish a detailed description of its revenue structure on its website, which might make it tough to commit to working for them without knowing the potential returns. If you’re looking for predictably earning a commission-based salary, there are other options available like My Best Work At Home Recommendation, InboxDollars, SurveyJunkie, Swagbucks, and FusionCash.

Low Income Potential

Breaking into the MLM industry can be challenging, especially if you’re new to this business structure. MLM businesses have a high failure rate, and not everyone is cut out for selling. People have lost friends, families, and money to pushy, sleazy practices taught to them by their MLM mentors.

Intense Competition

While the MLM business model might seem like a promising opportunity, keep in mind that people are increasingly booking vacations independently. You’ll also be competing with other travel-related MLMs, discount travel websites, and travel departments in club stores. If you’re not great at marketing yourself, you might struggle to find customers beyond your immediate circle of friends and family.

Losses From InteleTravel MLM Are Reframed As Investments

InteleTravel MLM uplines often reframe their financial losses as ‘investments’ in their business to keep their reps in the MLM scheme. But the reality is that you’re unlikely to get your money back, and the return on ‘investment’ is negative in most cases.

InteleTravel MLM is a Cult

Like many MLMs, InteleTravel has a cult-like company culture that discourages critical thinking among representatives. MLMs encourage isolation from anyone who questions your involvement, and those who leave are often labeled as failures or bad influences. Rejection from people they once considered family is one of the most devastating losses experienced by former MLM representatives.

You May Need to Purchase InteleTravel Vacation Packages Yourself

If you don’t have a large network, you may need to buy products yourself each month, which can be a losing proposition.

InteleTravel’s MLM Business Model Has a Bad Reputation

Most people who join MLMs are left with regret and a lot of useless products they couldn’t sell. The distribution of commissions is skewed toward the top, so those at the bottom may not even break even after a few months. As a result, many people don’t consider InteleTravel to be a legitimate business opportunity.

Recruiting is Required to Succeed

Eight out of ten ways to earn money with InteleTravel require recruiting, so if you don’t recruit, you’ll likely lose money.

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InteleTravel: What Customers Are Saying on Trustpilot

As of now, InteleTravel has a total of 308 ratings and reviews on Trustpilot. 48% of those are a full 5 stars, while 46% of customers gave them a less-than-stellar 1 star.

One of the recent reviews, posted on September 21, comes from Torrie Sullivan, who gave InteleTravel a single star rating. Torrie claims that InteleTravel is a pyramid scheme, and that their customer service is lacking. She also mentioned that commission payments have not been forthcoming.

So, if you’re considering InteleTravel for your travel needs, you may want to check out what other customers are saying on Trustpilot before making a decision.

Final Verdict

After weighing the pros and cons, I have come to the conclusion that the Inteletravel MLM program may not be the best way to make money. It can be tough in the beginning when you’re prospecting and trying to find recruiters to add to your Inteletravel commission. Plus, asking your family and friends to join your business opportunity is not exactly a fun experience.

Another thing is that your upline might pressure you into buying more Business Support Material, even when you’re struggling to get people to join your downline. Unfortunately, the stats also confirm that you’re likely to lose more money. According to a case study on the FTC’s website, 99% of people who join an MLM break even or lose money. It’s not surprising that people who join these MLM-type businesses often feel under pressure to succeed, and that’s one of the main reasons they leave.

So, what can you do instead? Have you considered starting your own online business? This way, you can choose what you want to promote, rather than having someone tell you what you must promote. It’s a great option if you want to earn money and have a flexible schedule.

In the next section, let me tell you how to build an online business in a legit way to make passive income online. I’ve been doing it for a year now, and it has allowed me to make a full-time income. Most importantly, unlike MLM models, it’s 100% legit and sustainable.

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Is There a Better Way to Make Money Online?

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You may read our article about the difference between MLM and affiliate marketing.

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