"Is iBuumerang A Scam?"
Holton Buggs new travel company has been attracting a lot of attention and perhaps you are wondering if they are a scam or some kind of pyramid scheme.
That is exactly what I am going to investigate this in depth and detailed review.
Before I get started I give you a warm welcome to my site and thank you for seeking out independent reviews by independent bloggers.
This is how you find out the real truth about a company and their opportunity, avoid getting scammed and find a genuine way of making money.
Is iBuumerang a scam? Are they a Pyramid Scheme?
Keep reading to find out!.
Summary: On the face of iBuumerang travel looks like a great opportunity to be involved in and is new and unsaturated. Before you rush off I have a few concerns about this opportunity - read to the end to find them out. I also have a much better Idea and option for you concerning the travel industry should you be interested.
Because You KNOW You Deserve A Better Life. The Question Is: Will You Step Up And MAKE IT Happen?!?
What Is iBuumerang?
The general company motto seems to be that of helping their end clients, to make significant travel savings and the best way for you to save money is to help your clients to save money.
The company is run by the following individuals
The travel niche is actually a very lucrative one to be involved in and there are a number of other opportunities operating very similar or exactly the same as iBuumerang, other companies include:
Obviously, there is nothing unique on offer by iBuumerang. One of the the difficulties with all network marketing opportunities is the lack of training given by the company and upline sponsors.
Usually you buy in to the opportunity and are then left on your own. To succeed in any business opportunity no matter how big or small you will need some training.
This is even more so when an individual has no experience at all. You need help, support, training and mentoring. Only the very best opportunity offers that.
Meet The Founder Holton Buggs
Holton, from Huston, Texas is no stranger to the world of Multilevel marketing and is associated with several and is said to be a US$1.5Million per month earner.
His net worth is said to be in excess of US$150 million region and is probably better known in the multilevel marketing world for his involvement with the Coffee MLM Opportunity Oregano Gold.
Either way, rebranded or not IQ Chain / IQ Legacy were surrounded with allegations of being a Ponzi Scheme.
David E Manning
David Manning is no stranger to the world of network marketing either, and in particular the travel industry - he is not without a colourful history either!.
He has been connected to Paycation, Global Platinum Services, Global1Entertainment - of which allegedly operated using new membership fees to pay older existing members, which is very Ponzi like!.
It was also rumoured and revealed during regular Friday night hang outs on Google that they (Global 1 entertainment) encouraged bait and switch tactics similar to what was used during their time operating in the timeshare business.
Do iBuumerang Have Any Lawsuits Against Them? Any Legal Issues?
That is actually a great question to ask given the allegations laid against both Holton Bugg and David Manning in the past.
For the time being there are no current issues but iBuumerang has already undergone rebranding from Countdown4Freedom.
And when An MLM has signs of trouble...they rebrand!
I would not be surprised if history repeats itself here!.
After all you know what they say about leopards and spots!.
The iBuumerang Product Line
iBuumerang are in the service industry the products offered are travel discounts and discounts on travel related services and products including:
- Hotel Reservations
- Flight Tickets
- Car Rental
- Tour Packages & Excursions
To name a few of the more common one. Those discounts are offered through their proprietary search engine iGo.
For example if you have a client that is interested in taking a break and going for a weekend trip away and they book their travel using the iGo search engine.
Because they are your client you will earn a 25% commission based on their booking.
Apart from commission and cash payments you can earn in a number of different ways including:
- Gift cards
- Worldwide Tours
- Emergency Travel Services
- Shore Excursions
- Theme Park Entries
- Wine club
- Restaurant discounts
- Outdoor activities
What Are iBuumerang Boomerangs!
The crux of the matter of the product sold by iBummerang is Boomerangs.
For your potential client to access their discount and the iGo booking engine they will need a login, which exactly what a Boomerang is - login access to the iGo booking engine.
The number of Boomerangs that you get access to if fully dependent on which package you buy.
- As a Stand By Distributor (US$$49.95/month)You Get Access to 5 Boomerangs per month to hand out.
- As A Coach Class Distributor (US$250 +US$49.95/month) You get 10 Boomerangs per month to hand out.
- As A Business Class Distributor (US$500 +US$99/Month) You get 25 Boomerangs every month to hand out.
- As A First Class Distributor (US$1,000 +US$99/month) you get 50 boomerangs per month to hand out.
If you run out of boomerangs you can buy more. It is not written anywhere on the website how much each boomerang or package of additional boomerangs will cost.
Basically you provide your potential clients with boomerangs when they are ready to access the iGo search engine and make a booking or search around. These you give to your hot leads.
The Boomerang is how they access the iGo search engine and obtain their discount for their booking. The only way to get Boomerangs is from a iBuumerang agent.
There is no other way.
The iBuumerang Compensation Plan
With the iBuumerang Compensation Plan, being a multilevel business opportunity you have 2 main ways in which you can earn money with them.
- Direct Retail Sales: This is fairly simple, you sell travel products and bookings and get a commissions for your efforts
- Recruitment: You build and grow your downline and earn pass up residual commissions
Getting Started With iBuumerang Travel
Getting started with iBuumerang is easy all you need to do is sign up and join. Which package that you choose to join with is entirely your own choice.
Don't feel pressured into "buying in" at a starting point more than you are comfortable with.
Your upline may try to convince you to get a more expensive package but remember if the program works it works regardless of what point you start at.
The iBuumerang compensation plan operates using both the unilevel compensation model and the binary model, which I will detail.
To increase your earnings, as it is with all network marketing companies you will need to increase your rank and qualify for each ranking level by achieving certain tasks and objectives related to sales volume generated and sponsorship.
iBuumerang Ranks & Qualification
With iBuumerang there are a total of fourteen ranks in their compensation plan.
The higher you rank the more money you can make.
- TSA: To qualify just simply signup with iBuumerang & continue to pay your monthly fees.
- Director: To Qualify you must generate a minimum of 2500 Personal Volume and/or Group Volume per month in sales, generate & maintain a minimum of 5 boomerang customers
- Executive: To Qualify you must generate a minimum of 5000 Personal Volume and/or Group Volume per month in sales, maintain a minimum of 5 boomerang customers.
- Senior Executive: To Qualify you must generate a minimum of 10,000 Personal Volume and/or Group Volume per month in sales, maintain a minimum of 5 boomerang customers
- Sapphire: To Qualify you must generate a minimum of 15,000 Group Volume per month in sales, or have a downline with a minimum of 100 TSA members, maintain and generate a minimum of 10 boomerang customers
- Ruby: To Qualify you must generate a minimum of 40,000 Group Volume per month in sales, or have a downline with a minimum of 200 TSAs, and maintain a minimum of 10 boomerang customers
- Emerald: To Qualify you must generate a minimum of 80,000 Group Volume a month in sales volume or have a downline with a minimum of 400 TSAs, and maintain a minimum of 10 boomerang customers
- Diamond: To Qualify you must generate a minimum of 200,000 Group Volume a month in sales volume or have a downline with a minimum of 1000 TSAs, and maintain a minimum of 20 boomerang customers
- Blue Diamond: To Qualify you must generate a minimum of generate 500,000 Group Volume a month in sales volume or have a downline with a minimum of 2500 TSAs, and maintain a minimum of 20 boomerang customers
- Black Diamond: To Qualify you must generate a minimum of generate 1,000,000 Group Volume a month in sales volume or generate and have a downline with a minimum of 5000 TSAs, and maintain a minimum of 20 boomerang customers
- Presidential Diamond: To Qualify you must generate a minimum of 2,000,000 Group Volume a month in sales volume or generate and have a downline with a minimum of 10,000 TSAs, and maintain a minimum of 20 boomerang customers.
- Crown Diamond: To Qualify you must generate a minimum of 5,000,000 Group Volume a month in sales volume or generate and have a downline with a minimum of 25,000 TSAs, and maintain a minumum of 20 boomerang customers
- Double Crown Diamond: To Qualify you must generate a minimum of 7,000,000 Group Volume a month in sales volume or generate and have a downline with a minimum of 35,000 TSAs, and maintain a minimum 20 boomerang customers
- Triple Crown Diamond: To Qualify you must generate a minimum of 10,000,000 Group Volume a month in sales volume or generate and have a downline with a minimum of 50,000 TSAs, and maintain a minimum of 20 boomerang customers
This is gets a bit goobeldy gook here. Bare with me as I explain as clearly as I can.
With the retail sales that you make, you earn 50% of the 50% saving that your client made on their booking.
If a travel package costs US$600 but is sold on iGo for US400, iBuumerang permits you as a member and distributor to book the trip for US$400 but would normally sell the travel package for US$500.
The US$100 mark up paid by retail clients is where your retail travel commissions come from. The Referring member gets 50% of the 50% that the company make.
- Stand by & Coach Class Members Earn 12.5 percent (1/8th) of the 50 percent of the 50 percent
- Business & First Class Members Earn 100 percent of the 50 percent of the 50 percent.
In the example I gave above, First class and business class members would earn 100 percent of the 50 percent of the 50 percent.
So, the commission earned would be 50% of US$100 = US$50
Coach Class and Stand By members would earn only US$12.50.
Recruitment Commissions - Fast Start Bonuses
Similar to other network marketing companies iBuumerang offers fast start bonuses to inspire and motivate new members and help them to get earning quickly - hence the name "fast start".
These are paid when you bring in Coach Class members or above and are paid as follows:
- Bring in a Coach Class Member and earn US$20
- Bring in a Business Class Member earn US$40
- Bring in a First Class Member and earn US$80
Residual Commissions Structure Binary Compensation Model
When you have both customers and members in your downline team buying something by means of the iBuumerang program after their first month is what you call residual commissions.
iBuumerang pays those earnings using the binary compensation model which is very easy to follow and understand.
Here is a quick breakdown of how the Binary compensation model works with iBuumerang.
- You have 2 legs on the binary compensation model a left leg and right leg.
- You need to recruit two people minimum, one will be placed on your left leg and another on your right leg.
- You build your downline by encouraging and helping your two recruits to recruit two more each.
- You continue this way to perpetuity. Each leg can go infinitely deep.
- Your weaker leg is what you get paid on.
- The volume generated comes from both customers and member of iBuumerang.
As you can see from the diagram above the binary model is pretty straight forward to understand and follow.
The higher you rank and the bigger your downline the more you can earn.
The following is what you can earn on the binary compensation model with iBuumerang. Note that earnings are capped on a rank basis.
- As a TSA Rank you can earn a maximum of US$1000 per week, 10 Percent residual commission.
- As a Director Rank you can earn a maximum of US$1500 per week, 12 Percent residual commission.
- As an Executive Rank You can earn a maximum of US$2000 per week (12 Percent residual commission.
- As a Senior Executive Rank You can earn a maximum of US$2500 per week 12 Percent residual commission.
- As a Sapphire Rank You can earn a maximum of US$3000 per week,15 percent residual commission.
- As a Rubie Rank You can earn a maximum of US$5000 per week (16 percent residual commission.
- As a Emerald Rank You can earn a maximum of US$10,000 per week, 17 percent residual commission.
- As a Diamond Rank You can earn a maximum of US$20,000 per week 18 percent residual commission.
iBuumerang - is this another Pyramid Scheme by Holton Buggs? #MLM #Travel
- As a Blue Diamond Rank You can earn a maximum of US$30,000 per week 19 percent residual commission.
- As a Black Diamond Rank You can earn a maximum of US$50,000 per week 20 percent residual commission.
- As a Presidential Diamond Rank can earn a maximum of US$100,000 per week, 20 percent residual commission.
- As a Crown Diamond Rank You can earn a maximum of US$150,000 per week, 20 percent residual commission.
- As a Double Crown Diamond Rank You can earn a maximum of US$200,000 Per week, 20 percent residual commission.
- As a Triple Crown Diamond Rank You can earn a maximum of US$250,000 Per week, 20 percent residual commission.
Unilevel Residual Commissions
iBuumerang also uses the Unilevel compensation model which is very easy to understand. With the Unilevel Compensation model you can go infinitely wide and infinitely deep.
Your personal recruits, often called your level 1 recruits or your front line are coloured orange in the diagram below.
Your Level 2 recruits, which are your level 1 recruits recruits are coloured purple in the diagram below, these are coloured purple in the diagram below. The model continues in this fashion to perpetuity.
The number of levels that you can earn on is determined by your rank:
- As A TSA Rank You Can Earn 10% Commission on level 1, Your personally recruits
- As A Director Or Senior Director Rank: You Can Earn 10% Commission on level 1 and 2
- As An Executive Rank: You Can Earn 10% commission on level 1, 2 and 3
- As A Sapphire Rank: You Can Earn 10% commission on levels 1, 2 and 3 and an 8% commission on level 4
- As A Ruby Rank: You Can Earn 10% on levels 1, 2 and 3, an 8% commission on level 4 and a 7% commission on level 5
- As An Emerald Rank: You Can Earn 10% commission on levels 1, 2 and 3, an 8% commission on level 4, a 7% commission on level 5 and a 6% commission on level 6
- As A Diamond Rank: Or Above You Can Earn 10% commission on levels 1, 2 and 3, an 8% commission on level 4, a 7% commission on level 5, a 6% commission on level 6 and a 5% commission on level 7.
Here with iBuumerang the leadership bonus is, the way in which it is compensated and calculated, a generation bonus which is paid on a maximum of 4 generations of your residual volume for each unilevel leg.
A generation is defined when a Sapphire or above ranked member is found on a unilevel leg.
The first Sapphire discovered is the first generation of that particular leg, that generation end when a second sapphire or higher is found on the same leg.
If no second or no further Sapphire ranked member is found the generation runs all the way to the bottom of that unilevel leg.
Using this model and those rules, iBuumerang pays the Leadership Bonus (Generational Bonus) for a maximum of 4 generations per unilevel leg.
- As A Sapphires rank you can earn a 2% commission on just one generation per unilevel leg
- As a Rubie rank you can earn earn a 3% commission on a maximum of 2 generations per unilevel leg
- As an Emerald rank you can earn a 4% commission on a maximum of 3 generations per unilevel leg
- As a Diamond rank or higher you can earn a 5% commission on a maximum of 4 generations per unilevel leg
iBuumerang Lifestyle Bonus Pool
The compensation plan by iBuumerang talks about a Lifestyle bonus pool but has zero details. I expect carrot dangling luxury trips to cars of some kind to be added at a later date.
Watch the video below for a clear explanation and presentation of the iBuumerang Compensation Plan.
Is iBuumerang Accredited By The BBB?
Something that I always check out is to see if the company and opportunity I am investigating are registered and rated with the Better Business Bureau.
This helps me to see how professionally and legally a company conducts business and gives an indication of how much they can be trusted.
iBuumerang, are not to be mistaken with the listing for iboomerang.com, a company that provide services for internet marketers.
iBuumerang are not listed on the BBB database and by default hold the status of Unaccredited and Not Rated.
Surprisingly there are not many complaints online regarding this company. I suspect this is because the company is new.
There is one complaint I found on Reddit here
With time, I expect a lot more complaints.
One thing I have noted is the company are registered in the UK yet I see no ABTA (Association of British Travel Agents) membership or association, which is required by all travel agents operating in the UK.
I also see no indication of association with any professional travel agency or organisation.
Is iBuumerang A Ponzi Scheme?
No, in my opinion iBuumerang is not a Ponzi Scheme. Although there are some concerns about how the compensation plan functions.
I'll explain more on this later.
Is iBuumerang A Member Of ABTA?
iBuuerang is not a member of ABTA, their database turns up a no results for iBuumerang.
What Is The Cost Of Joining iBuumerang?
The cost of joining iBuumerang is US$49.95 per month at their least expensive package.
Like other MLM opportunities there are various pricing points and "starter packages"
With iBuumerang there are the following packages:
- Coach Class: This package costs US$250 as an up front one off cost and then US$49.95 per month.
- Business Class: This package costs US$500 as an up front one off cost then US$99 per month.
- First Class: This package costs US$1000 as an up front one off cost and then US$99 per month.
The main difference here is the higher your entrence point, the greater the commissions you will be able to earn.
Which is in a sense a pay to play program, to the best of my knowledge is against the law. Let's leave that one for the authorities and the lawyers to debate and confirm.
What I Liked About iBuumerang
There are some things that I liked about iBuumerang:
- New & Now Crowded opportunity
- Travel is very popular niche.
- People are likely to jump on to discounts.
What I Did Not Like About iBuumerang
There is quite a few concern about iBuumerang that caught my attention:
- No Accreditation or Listing with the BBB
- Effectively iBuumerang is an unregistered illegal (in my opinion) travel agency.
- Not Registered with authorities to sell travel products or packages or with any professional body or association.
- The Compensation plan functions on the face of it as a pay to play model. Buy in at the higher and get greater commissions.
- The Retail side depends on uninformed consumers!.
Can You Make Money With iBuumerang?
The honest truth is yes, you can make money with iBuumerang, there is that distinct possiblity.
However, they do not comply with the law and regulations regarding positing and updated income disclosure statement.
In my experience of reviewing 600+ opportunities this is never a good a good sign and is a sign that the majority of members are not making money or a liveable income from the opportunity.
Personally, I don't think that you can make a liveable income from iBuumerang due to 98% of all people starting an MLM opportunity fail to make more than US$2000 per year!.
Is iBuumerang A Pyramid Scheme?
By the very inherent nature all MLM programs look like Pyramid schemes due to their structure and they way in which they operate and in many case even when one is not technically or legally a pyramid scheme they often end up functioning like one in practice.
Due to technicalities in the law iBuumerang is may not be a pyramid scheme a due to having a retail element.
I do have concerns regarding how the retail section operates as the actual product does not belong to iBuumering - essentially what is being sold is a travel packages from a 3rd party - Xstream travel. Taking away the travel service - which does not belong to iBuumerang you have money being passed around in a Pyramid fashion.
It's a difficult one to answer for sure. In my opinion it could be. That is the best I can say given David Manning is rumoured to be trigger happy as far as Lawyers go and if I say so outright..I'll get sued.
So, nudge, nudge, wink wink my opinion is that iBuumerang could be a Pyramid Scheme in my opinion.
Is iBuumerang A MLM Business Opportunity?
Due to the business model used and the way in which iBuumerang compensate their members using both the unilevel and the binary compensation plan and pay out over several level it is very easy to see that they are a MLM business opportunity.
Is iBuumerang A Scam Or Legit?
By all means of the word iBuumerang may not be a scam in my opinion I still have my reservations due to the way the compensation model is and the product attached to it.
My iBuumerang Review - The Final Conclusion
iBuumerang to succeed as a business is fully dependent on consumer ignorance and not doing due dilligence.
They are able to sell travel packages and deals at an apparent discount but they business model is dependent on them using another search engine Xstream travel and then whack on a fee on top of that in order to pay the commissions to their members and of course make a profit from the retail sale.
It is wholly dependent of consumers not shopping around and finding better or similar deals on Agoda, Expedia and so on - or directly from Xstream Travel. If a consumer can find cheaper - I'd bet you my mortgage they would take the cheaper deal!.
Essentially, getting at the core of it, iBuumerang are selling travel packages for Xstream Travel and, well, charging their members a fee for doing so. Given that money is being passed up in the commissions model this does look, in my opinion like a pyramid scheme.
PlanNet Marketing and InTeleTravel had a similar tie in which mirrors that of iBuumerang and Xstream Travel and that did not end well at all!.
I don't see this one lasting that long.
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Travel is a great industry - you would be in my opinion far better setting up a travel blog and building up a passive income source.
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No need to recruit or do any face to face selling!.
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I think by now you see just how a simple little travel blog can grow into a full blown business and full time job replacing income.
Do it the correct way and you will have a completely passive income.
Making money online is easy - when you have the skills and know how. Do yourself the favour and learn the skills.
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