With all the hype surrounding RFS, the Reverse Funnel system, Global Resorts Network, GRN, has been swept up in all the fury. In some cases it is profiting. But in terms of reputation, it’s taken a beating. Unjust? Well deserved? Let’s take a look.

RFS is just a marketing system used by some in GRN. Global Resorts Network is apparently not affiliated with the company at all. But what is GRN all about? It is listed in the BBB in the category of, "Timeshare Campground/Resort Companies". Which is  how the Disney Vacation Club would be listed, also a timeshare that allows you travel deals at places other than where you have your timeshare deed. Spokesmen from the company, affiliates mostly, vehemently deny they are a timeshare company and that they are MLM. At the very least they are MLM. The question is are they a legitimate MLM opportunity.

First, we need to look at the difference between a pyramid scheme and MLM, multi level marketing.

Not every MLM opportunity is a legitimate business opportunity. A number of pyramid schemes which are designed to get the hungry-for-easy-riches to part from their money with an up front “investment”, are presented as profitable MLM opportunities.

The biggest difference between MLM and a pyramid is the business operations. The sole purpose of a pyramid is to get your money and then use you to recruit others. I hesitate to use the word suckers here because many have been taken in this regard and are not suckers but victims. With a pyramid, there is rarely any mention of a product. In fact, you usually have a hard time finding out what the product is.

A MLM focuses on product more than the recruiting. Ideally it does. Though you’ll notice that affiliates don’t always adhere to that direction and will promote the recruiting. MLM commissions are typically smaller than those commissions paid out by other travel home travel business opportunities.  But by comparison, GRN is said to offer larger commissions than other MLM programs.

The difference between MLM and pyramid would take up an entire article. But we’re here to discuss GRN and whether they are a legit opportunity or not, so I’ll cut to the chase here. But suffice to say, you should do your homework before investing and don’t get caught up in the hype. Nothing is easy money. And a red flag should go up if it claims easy money despite your hot, burning desire to be filthy rich. Don’t let that blind hunger cloud your judgment.

You don’t have to be in the Reverse Funnel System in order to be a Global Resorts Network affiliate.

And joining GRN directly instead of through RFS is less expensive in the long run. You can join GRN outright as an affiliate and make money with referrals. You’re the sales person with a website. You can also join as a member who simply wants to enjoy the travel benefits. And people who do want to join are asked to log in a member id (referral id from an affiliate) before they do.

David, the owner of printnpost.com, is a member of the travel industry and he says, “GRN is a waste....if you do not bother searching for travel deals...ok go ahead..but they are not giving anyone any real deal. I work in the Travel industry and we do what they do everyday...the difference is they are pitching it with a membership...instead of marking up the hotels you are paying [a membership fee] upfront. There is no secret to this and really you can save more if you do the legwork.”  

This is probably true. But it’s also true that I have absolutely no clue how to do this “legwork”. I have no connections in the industry and I’m not a travel specialist. And what GRN offers may very well be of great value to someone who just wants to pick a package or have one made for them. It’s kind of like deciding if you want to put up your own wallpaper or do it yourself. You could probably learn the skills to do it. But some would rather not.  But then you can get this done elsewhere, too and avoid some huge upfront fee. In other words, travel agents add a legitimate mark up for their services. And GRN instead charges a membership fee. So I guess you’d need to determine how often you travel. And you need to judge your wariness on GRN.

At first, I thought GRN was simply another MLM. But with an MLM, the chief focus is supposed to be product—in this case travel packages. And a legitimate MLM shouldn’t ask for a lot up front, more like $500 or less. There is a free affiliate opportunity but most default to that only after the recruit shies away from the Gold or Platinum membership fee (listed below). So it’s outside of my comfort zone in clearly categorizing it as a legitimate MLM opportunity.

A number of the affiliates simply talk about how much you will make and look more like recruiting sites than sites offering great packages. Some do focus on the travel packages. Some only focus on the packages at the top half of the ad/website, then recruiting at the lower half. But I ran across far more that said something to the effect that you’ll rake in tons, oodles, piles and truckloads of money.  Some are so hard sell, you are sure a bank vault will drop in your email inbox once you join. It's these hardcore recruiting sites that make the whole thing look questionable.

GRN Membership Fees

To join as a member, you enter the id of the person who referred you to the website.

According to the website, the top plan, Platinum is $2995. And that is a fee for 100 years. In other words, once you’ve had it 100 years, you need to pay up again.

The Gold is $1,495 for 3 years. Upgrade to platinum $2,000.

There is something about becoming a free affiliate, too. That is for those who don’t want to pay the up front fee to become an affiliate member. Basically, you sign up on a rep’s website and join as a free affiliate. When the person who signed up as a free affiliate refers someone the rep’s way, that person gets $100 for that referral.  

There are advantages and savings for the Platinum plan, so you pay more along the way with the Gold.

The $100 fee for the GRN website is yearly for affiliates. Instead of the $200-$300 per month with RFS.

More details are at the official site:

http://www.globalresortsnetwork.com/

Where the waters get murky

I have to wonder about a company that would allow RFS to sell them like they do. Their reps/affiliates will quickly separate their business from the likes of that unruly and oily RFS. Does GRN  no say in who and how someone markets them? Or are they just a vulnerable rag doll business who is at the mercy of less-than-reputable pyramid marketing schemes that choose to use them as the “product”?

GRN has a clear record with the Better Business Bureau.  However, there is a company, Perpetual Leverage in the Work-at-home category that is somehow connected with GRN. It does have complaints and a bad rating. It is the direct sales pay plan connected with GRN. Not real savory.

GRN has been asked to reply to BBB, but there’s been no response from the company in this regard. According to the BBB on 1/20/08, “The BBB processed a total of 0 complaints about this company in the last 36 months, our standard reporting period. The BBB has requested basic information from this company but has not received a response. As a result, the BBB may not have current information about the company. ” 1 GRN is listed as “Timeshare Campground/Resort Companies”.

According to an article at webwire.com, “The Global Resorts Network strategy of members trying to recruit new members to sell products and earn commissions for them for ever and ever is not a viable option for the average seeker of a new home based business. While company conference calls for Global Resorts Network urge prospective members to get out there to smile and dial, because they are so new, few sales tools exist that would assist new Global Resorts Network members.” 2

The above quote does come from a person in the travel industry with his own company, but is nevertheless a credible point even in light of the fact that the author is not entirely neutral on the subject. I think the amount of help you’d get would depend on who you signed on with. Some will be more helpful, others out to chase the next pot at the end of the rainbow.

In summary, GRN has satisfied member customers who like to travel. The website itself talks about the travel packages. Most of the affiliate sites focus on “you are going to make 10k per week” which is hardly product-focused. As an affiliate, you can make some money but there are probably more profitable opportunities with other travel companies which pay out better commissions and focus more on product than recruitment.

You could learn to make these travel deals yourself or utilize another travel package. Affiliates I’ve exchanged e-mails seem to be happy with the referral business. But it does take work and it’s not overnight cash in your lap. I don’t really know if these affiliates are truly happy and if it’s the business opportunity that it’s sold to be.

So I would suggest looking at the Direct Selling Association (DSA) website. (http://dsa.org)

This would be beneficial in evaluating any direct sale marketing opportunity. From the DSA About Us page it says, “The Association's mission is to protect, serve and promote the effectiveness of member companies and the independent business people they represent. To ensure that the marketing by member companies of products and/or the direct sales opportunity is conducted with the highest level of business ethics and service to consumers."  So there's a watchdog and I would utilize the tools they offer.

They have a list of all their members on the site which, at present, is about 214 companies. GRN is not on the list, but there are no complaints either.

GRN may work for you. It may be great. But quite frankly, if I were looking into a direct sales opportunity, I would choose one with a track record good enough to make this DSA list.

Resources:
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1- Better Business Bureau Website, January 20, 2008
2- http://www.webwire.com/ViewPressRel.asp?aId=30491, Author- Dean Marino

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The Reverse Funnel System. Hype?-Scam?Big internet money maker?