After months of unpaid commissions, we’re getting reports that distributors are leaving WorldVentures in droves. Dozens of distributors have taken to Social Media this week to publicly announce their departure and slam the company for its deception and lies regarding commission payments. As we’ve seen over the years, this is usually a very good indicator that the company is in massive financial trouble and will either sell out or shut down in the near future.
In our recent WorldVentures review, we outlined the company’s struggles to expand internationally while navigating a host of legal issues. Most notably, the company was banned from operating in Norway and in 2017 a class-action lawsuit was filed in the U.S. alleging that the company is operating as a pyramid scheme. Last year, the Chinese government cracked down on WorldVentures members who were illegally operating in the country.
WorldVentures is not only entangled in litigation with national governments—it’s also fielding multiple lawsuits against ex-members including David Wood (yes the same David Wood who now claims to be God), Carlos Rogers (U.S.) who is owed almost $100,000 in commissions, Devraj and Cassandra Soojay (South Africa), and James Lee (Singapore). The company is also suing Abboud Barakat for stealing confidential and proprietary information regarding customers, suppliers, and marketing and sales strategies after a deal fell through last year. Barakat has since gone on to start a new MLM called MaVie.
We already saw hints of trouble when the company declined to disclose its revenue to participate in the annual DSN Global 100 list. In a June 2018 press release, WorldVentures CEO Josh Paine said “We elected not to participate in the DSN 100 for 2018 as do many privately held companies. Instead, we treated 2017 as a year of learning.” In the same press release, the company celebrates $2 billion in sales from 2015 to 2017. While this sounds impressive, it means that 2017 revenue decreased by almost 60% from the year before. Here are the numbers:
- 2015: $693 million
- 2016: $926 million
- 2017: $381 million (estimated)
Given the exodus this week, it appears that distributors are “learning” that the company is no longer able to fulfill its financial obligations.
We’ll continue to update this story as we learn more.
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