© 2025 by LuxRally Travel LLC
CA Seller of Travel Ref. No. 2151375-70
Fla. Seller of Travel Ref. No. ST43780
WA Seller of Travel UBI No. 604-982-628
HI Seller of Travel Ref. No. TAR-7477
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Fla. Seller of Travel Ref. No. ST43780
WA Seller of Travel UBI No. 604-982-628
HI Seller of Travel Ref. No. TAR-7477
CA Seller of Travel Ref. No. 2151375-70
© 2035 by LuxRally Travel LLC
Where is this? Aman Summer Palace, Beijing, China
"MLMs focus on recruiting you—and anyone who trusts you—into a flawed business model where selling travel is often secondary."
It is important to understand the pitfalls of travel MLMs and the key differences between them and full-service host agencies like us. Legitimate host agencies focus on supporting agents in selling travel—not memberships.
Apply to Join Our Team
Where is this? Amanoi, Vietnam
What is a Travel MLM?
Aspiring travel agents sometimes confuse travel MLMs with host agencies, but they are entirely different. A host agency provides the tools and infrastructure to help you sell trips and earn commissions. In contrast, MLMs focus on recruiting you—and anyone who trusts you—into a flawed business model where selling travel is often secondary. Too harsh? Maybe, but shady travel MLMs are a disservice to aspiring agents. Whether you join our host agency or another, we can rest easy knowing you avoided an MLM.
Travel MLMs use misleading ads, prey on economically vulnerable individuals, and fail to support serious agents. They rarely admit they're MLMs, instead using terms like "network marketing" or "direct sales." If you see these buzzwords, consider it a red flag.
Robert FitzPatrick, an MLM expert, studied 10 publicly traded MLMs, including the now-defunct travel MLM Your Travel Business (YTB), and found that 99% of participants earned less than $10 per week in commissions, even before expenses.
Travel MLMs, like other MLMs, have an extremely high failure rate. Many are not required to disclose income statements, but those that do paint a bleak picture. For example, WorldVentures reported that 85.4% of its representatives earned nothing or operated at a loss. Their average annual earnings were $354.31, while first-year costs to join were at least $769.89.
Where is this? Cap Juluca, a Belmond Hotel, Anguilla.
How to Recognize and Avoid Travel MLMs
Follow the Money Trail
If you're considering a host agency with membership or training fees, ask yourself if they're more focused on recruiting new agents than supporting their current ones.
Resist the Recruitment Rhetoric
Some hosts prioritize recruiting over training agents to sell travel. If a host agency emphasizes recruiting others during your interview, consider it a red flag. As a new agent, your focus should be on building a client base, starting with your personal network. We strongly recommend you convert travel enthusiasts in your circle into clients, not competing agents.
Assess the Host Agency's Support
If a host agency pours money into marketing but skimps on agent support, it's likely they're operating a recruitment-driven model. A reputable host agency offers robust training, ongoing education, regular meetings, a resource portal, and 24/7 support. If their promises outweigh their support, it's a warning sign they rely on new agent fees rather than agent sales.
Beware of the Travel Agent Pyramid Scheme
Some hosts promote a "sub-agent" model, which often indicates an MLM. While sub-agents can make sense in established businesses, new agents don't need them. Sub-agents should function as commission-earning assistants by choice, not as a way for hosts to exploit recruits. If a host encourages sub-agents, especially for beginners, it's unethical and a clear sign to look elsewhere.
Travel MLMs Have Minimal Information on Their Website
Travel MLM websites often lack concrete details. They provide little to no information about commissions, backend support, Seller of Travel requirements, or E&O insurance. Basic joining information is often gated behind email signups or sizzle calls. Many don't even include profiles of the people running the business, and if support is limited to a nameless email address, that's a major red flag. These sites make big promises without offering real substance. MLMs have shifted their tactics, focusing on lifestyle promises and discounted travel instead of income claims, which the FTC requires them to substantiate.
We know this is harsh, but joining a travel MLM isn't worth it—it will break the trust of the people you recruit and probably cause them to lose money.
Where is this? La Residencia, a Belmond Hotel, Mallorca, Spain
Where is this? Palacio Nazarenas, a Belmond Hotel, Cusco, Peru
Our Business Model (anti-MLM)
Our business model is the opposite of an MLM. We don't charge agents any fees and take a loss on new recruits, only earning when they start selling. Our competitive 80/20 commission split (versus the typical 70/30) reflects our confidence in our methods, which leads to higher agent revenue. By avoiding fees, we build trust, showing agents we're fully committed to their success. Additionally, we don't want you to recruit other agents. We would rather you turn your travel-obsessed connections into clients, not your competitors.
Are host agencies with fees MLMs? Not exactly, but some could be considered "soft MLMs." The key is doing your homework. If your goal is six or seven-figure earnings, an agency like ours is a great fit. However, if you prefer a no-pressure hobby, a host with fees may be better. For instance, we have sales minimums to remain active, while other hosts will let you stick around as long as you pay your subscription.
If you are looking to be a hobbyist agent who focuses on Disney and Sandals, we might not be the best fit, but at least don't join an MLM. If you want a strong host agency to stand behind your success (and even take a bet on it), join us. We won't disappoint you.
Travel agent MLMs, how they work, and how to avoid them.
Last Updated:
01/17/2025
