This is the very FIRST time I had heard that a person did NOT have to buy a package that they could pass up 3 sales and than get a directors release is this true?? This was posted on another forum: You have the option of not buying a package with Coastal. In that case you will pass 3 training sales. The first would be the package you would have purchased your self, and the other two are then your training sales. Companies have to have a 'no purchase required' option to be legal! Bear, anyone from BOD is this TRUE???? Terri
I have never heard of this. We sell vacation packages with the option to sell. That is up to the buyer if they do that. Since we have a REAL product that law doesn't apply to us. Why would anyone want to join and not have the package. That doesn't make sense to me. I say this is someone trying to get someones money without having to send them a package. What does everyone else think?
Also, if Coastal was violating the law, I don't think it would have been around for 12 years and still be associated with so many major resorts and hotel chains.
Thanks Harold and thanks for challenging the individual who suggested this. Someone needs to ask Steph. Terri
I talked to Hoyt, the owner of the call center, about this earlier this afternoon and he said that this DEFINATELY wasn't a BOD endorsed option and that we are selling a membership with the option to sell. Not the other way around. I emaild Jeff Mills also and he said some were trying this a couple of years ago but you don't make any money off of these people because they don't pay for a package which cuts your commission and then they eat up your time which you need to spend with new members who actually DO pay you for their package.
A few more flaws with this model. Number one. It's treading very close to being a pyramid scheme for my taste. The idea is that you can get into the opportunity to make money without purchasing a real product. This is the fundamental key difference that separates real opportunities from pyramid schemes. In pyramids, money exchanges hands without a real product or service being sold/bought. Number two. If Joe gets in the opportunity without purchasing a package (which I think would be illegal for the above mentioned reason), then most likely everyone else will end up doing the same. Because if he never saw the value of the package to purchase it, then he will tend to market to that type of person. This creates a whole chain reaction of countless people giving money to someone without getting something tangible in return. Joe brings in Mark, Sarah, Jill. And then Mark brings in Tim, Jake, Jane, etc... and so on and so on. And because it's much easier to try this without making the financial commitment, too many people will try, and then give up at the drop of a hat. We all know that when one hasn't invested much in a goal, it's not very likely that they'll stick with it. Lastly, the whole Coastal idea is that we are an association of independent business owners. And the way we become part of that association is through purchasing a package. By purchasing the package, we become part of the association. And through that membership, we are granted the right to sell the packages to others. So, it's impossible for anyone to sell the packages without having purchased one himself/herself. The only way around it would be to not sell the packages, but the opportunity itself. ....and we all know that that's illegal. Laws might be different in some parts, but as far as I know, it is unlawful to sell a business opportunity. There must be a product or service that is sold/bought. Thomas
Well put Thomas, I was going to add something but in re-reading your post, you pretty much covered it. Roger
Hi all, I read the other post that you are all talking about and wondered myself.... When I came into Coastal - it was thrown at me like this - 3 training sales to get your release and your purchase starts as No. 1.....so just 2 more to go!! We have a call tomorrow evening for members only to ask questions about the biz and CV and the BOD policies.....so I will ask and let you all know what I find out!! Though I do agree with all of you.....It doesn't sound good to me...what is going to keep them into it? How are they going to answer questions about the product? Anyways I will let you all know tomorrow! Lindsay
The way it was explained to me is this....to sell a product you must be a product of that product and anyone that offers this option is going against the wishes of Coastal Vacations. I absolutely do not believe that you can find a real business opportunity with no investment.
As far as I know, the bottom line is that Coastal Vacations, being a reputable organization, will not risk getting caught up on the wrong side of the law. And the law clearly states that anytime money exchanges hands in the promise of making money is illegal. There must be a real product and/or service bought/sold. Putting the two together, I feel okay with not bothering with the question further. For me, it satisfies my own criteria of ethical business because the packages are of such good value. But nevertheless, I won't mind more info on the topic either. Thomas
Hi all, And this is how it goes from my call - By law you must only offer a "No purchase option" if there were no product - such as the other Independant Travel AGent Program - no purchase required to earn refferal monies (no product, no service), but money is required to obtain IATA ID card (now offering service).... Some directors have been known to offer a no purchase entry, that is totally however at their own risk, and not process that is approved by either groups of or by Coastal Vacations. Having said that, I believe it is each to their own.....pretty high risk if you ask me, and not my preference, but as I said it is each to their own. Lindsay
