A recruitment model promoted by influencers to become independent travel agents with InteleTravel, via PlanNet Marketing, is drawing criticism over its fees and earnings potential, according to individuals who have participated in the programme. Critics argue that while influencers tout the promise of travel and freedom, the reality has been less lucrative than advertised.
Financial Realities of the Travel Agent Model
Despite enticing promotions by celebrities such as Yasmin Hadlow and Vicky Pattison, newly recruited agents report difficulties in generating substantial profits. In their experience, initial costs, including a sign-up fee around £150 and monthly charges between £30 and £40, coupled with a modest commission structure, significantly impact earnings. Commission from bookings is around 70% of the total 10% commission offered by suppliers, causing a challenge to make significant income solely from travel sales.
Mark*, who joined the programme in 2021, reported minimal sales over 18 months, prompting a shift towards recruitment, which he found at odds with his desire to be a travel agent. Agents who opt into PlanNet Marketing pay additional fees, and compensation includes roughly £3 per recruit, in addition to potential bonuses as their recruitment numbers grow. However, PlanNet Marketing’s income statement suggests that average annual earnings from recruitment are approximately $40.
Shelley, another participant, joined InteleTravel during the pandemic and faced similar challenges. Despite assurances of support and high commissions, she found herself with limited profit after accounting for promotional materials and online presence costs.
Criticism of the Recruitment Model
PlanNet Marketing has come under scrutiny for its recruitment-focused approach, with suggestions that it resembles a multi-level marketing (MLM) scheme. However, InteleTravel asserts its independence from PlanNet Marketing, clarifying that recruitment is optional for agents. The company provides a 30-day money-back guarantee on sign-up fees and a first-year profit guarantee under specific conditions, aiming to mitigate some financial risk for new agents.
Despite the potential for appealing income opportunities, the model often requires substantial effort and time for medium to high earnings. Former participant Claire* cited her experience, noting that even after recruiting over 150 people, she did not receive the expected income based on PlanNet Marketing’s rank qualifications.
Targeting Prospective Recruits
Influencers, using platforms like Instagram, frequently target women, particularly mothers, by promoting flexibility and the potential for substantial earnings while managing personal and family commitments. This strategy has been utilised by public figures, such as Vicky Pattison, who directly appeals to mothers considering career alternatives during maternity leave.
In response to critiques, a spokesperson from InteleTravel has highlighted the successes of numerous advisers who achieve their career goals through committed use of the company’s resources. Furthermore, Amanda Restivo, vice-president of compliance at PlanNet Marketing, emphasised the independence of the two companies and reiterated that success requires personal dedication and effort.
* Names have been altered for privacy.
Reporting based on coverage first published by theguardian.com.