iBuumerang is a Multi-Level-Marketing (mlm) Company operating in the travel niche. It poses as an investment opportunity to members of the public. On the surface, this company seems a standout in the Ponzi / Pyramid scheme saturated MLM world. Its unique business proposition, its rising momentum, and the network marketing savviness of its owner, the MLM veteran, Holton Buggs, gives off an air of authenticity. But what does a closer look reveal?
The corporate history of Holton Buggs, though interesting, should be a red flag for discerning investors. Buggs has been involved with a number of busted pyramid schemes. From CyberWize to YTB International to OrganoGold to IQchain, Buggs does know how to flee sinking Pyramid schemes while escaping with his lot. iBuumerang is his latest invention and there is no proof that boomerang is any different from the others.
Yes, iBuumerang is unique. iBuumerang is basically a program where distributors can direct their friends to the iGO booking engine which provides travel discounts. iGo is run by another company, X stream Travel, and can only be accessed by those with an iBuumerang membership. Also, recruiting has been made slightly easier by the last part of the iBuumerang program which is the iDecide interactive presentation. This is meant to make recruiting less cumbersome. Yet, all of this features does not guarantee that IBuumerang would not crash.
Affiliate recruitment is a major pointer that an MLM company is a Pyramid scheme in disguise. A prospective affiliate would find out upon research that non-affiliate subscription is very low as compared to affiliate held subscription. This is the same for iBuumerang.
Although iBuumerang markets a range of high value, in-demand products, the likelihood of earning much at iBuumerang is slim. There is a lot of targeting to be done. Bearing in mind that members of the public are very skeptical about MLM companies, convincing people to be an affiliate is going to be difficult. Thus, earning much from iBuumerang is almost impossible.
When it comes to the subject of its business model, boomerang is no different from other MLM countries. It runs on a unilevel compensation structure and a 14 tiered ranking system swathe in commissions and bonuses. A unilevel compensation structure places an affiliate atop a unilevel team down an infinite number of levels. iBuumerang uses this structure to shuffle funds amongst its investors in order to create a semblance of earnings. This structure is also used to funnel upwards the funds gotten from new investors to high ranking affiliates.
In its ranking system, an individual affiliate has to maintain high recruitment and sales quota to move up the rank – a quite herculean task. As with other MLM companies, only a few high ranking affiliates ( obviously the early adopters) get to earn.
It should be noted that iBuumerang is competing with already established market giants who are offering better prices and discounts. Also, since iBuumerang is still quite young, it has no proven track record of success or stability and may not survive the long term corporate difficulties.
In all, investing in iBuumerang is more of a bad choice because, albeit its unique proposition, it is still an MLM company where the probability of most investors losing money or not making any money at all is high.