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Is iBüümerang A Pyramid Scheme? [2020 Review]

Welcome to my iBuumerang review! If you are wondering is iBuumerang a Pyramid Scheme or a scam I hope I can help you decide!

First of all, I’m glad you’ve taken the time to research before blindly jumping in on a business opportunity. That’s the only way to avoid scams, find the legit products and reach success in the long term!

The chances are that someone has approached you about the products or business opportunity iBuumerang offers. Maybe you attended an “event” or someone contacted you on Facebook or just saw someone constantly posting about the company on Twitter.

No matter where you stumbled upon it, you are concerned. You’ve heard about MLMs, pyramid schemes, and online scams. Could this be one of those? Read on to find out.

I want you to know that I’m in no way affiliated with iBuumerang, I’m not a part of their program and I have no connections to the owner of the company.

I’m just offering an honest third party opinion about what the program looks like to me. I’ve reviewed a ton of online business opportunities, including a lot of MLMs and scams so I like to think I have a fairly good understanding of how these businesses operate and what red flags you need to look for.

That said I want you to actually make up your mind on your own. You can’t trust anyone online, including me. So do research, check out the sources and make up your mind once you have

I always encourage my readers to practice critical thinking. It will keep you out of a lot of trouble and if everyone would do it, scams would have a lot harder time existing.

That said, some scams are just so clever that even smart people fall for them if they let their guards down. This is especially true if someone you really trust and thought of as a reasonable person recommends the program to you.

This is what happens with many pyramid schemes and that’s why they are so destructive. They don’t only take your money, they destroy relationships between friends and families.

Now that we got that out of the way, let’s get on with the review!

Ibüümerang Summary

Product Name: Ibüümerang

Product Type:  MLM in travel savings niche

Product Price: $49.95/ month to $1000 + $99/month

Summary:

iBuumerang is a MLM business that is based on a travel savings platform. The product they offer seem.

The company is relatively new and the fact is that it’s almost impossible to tell which MLMs turn out to be legit, so I will presume they are legit. 

The only red flags Ibüümrang has are that the CEO of the company has some past involvement in legal battles concerning another MLM and the fact that participation fees are relatively high compared to the earning potential from the actual product.

That said, I can’t really recommend Ibüümrang as a business opportunity because I personally think there are so better opportunities, that require less investment.

If you want to learn how I created a successful online business that produces passive income 24/7, check out my top recommendation below.  

What Is iBuumerang

iBuumerang is a network marketing aka MLM (multi-level marketing) business in the travel niche. Their main product is travel discounts through a partner site.

The name which actually has German y’s = ü in it, symbolizes you throwing out goodwill and savings and get rewards with travel savings bonus in cash. Like a boomerang! Get it?

iBüümrang doesn’t seem to have anything to do with Germany or any other country that uses the U with an umlaut. They are actually based in Essex in the UK and in Houston and Allen, Texas in the US.

Their product discount system works in three simple steps:

  1. TSA’s (Travel Savings Ambassadors = their sales reps) can share 50% of their own savings with anyone with a free ibüümerang website.
  2. When your customers book on their own personal ibuumerang website, they enjoy 50% of the available savings.
  3. The other 50% comes back to you in cash and through the compensation plan.

That’s basically the three steps displayed on their website. The “free website” they talk about is the iGo booking engine which is run by Xstream Travel.

iBuumerang

“You, as the referring TSA (travel savings ambassador), will receive 25% of the commission earned through the booking.

Simply refer the Booking to Xstream Travel and they will handle all of the reservations, updates, changes and customer support throughout the entire process.

You sit back, relax and get paid”

 You can basically book anything for your travels through the service. Hotels, rentals cars, vacation packages, flights, timeshares, etc.

So basically you can work as their sales rep and offer discount opportunities to your friends, family, and customers and actually make money yourself.

This being an MLM opportunity, there’s also the opportunity to recruit additional people under you the to create a “team” aka your downline that you will earn a share from their profits.

The People Behind iBuumerang

I always want to know the people who are behind a company when I’m trying to make up my mind if they are legit. There are a couple of red flags to watch out for.

If you can’t find out who’s behind the company that’s a huge red flag. Honest legit companies are transparent about the ownership. If they are afraid to tell their names, they likely have more skeletons in the closet. I expect to at least find out the CEO and in most cases the owner of the company.

The second red flag to look for is if the people who are behind the company don’t seem to have a digital footprint of any kind. This always raises a question if they are made up aliases just to create credibility. Believe it or not, some scam companies have got caught using paid actors as their owners.

The final red flag is if the owner or owners have been involved in previous questionable businesses like MLMs that have been shut down by the authorities for running a pyramid scheme. For some reason, people like these often take a short hiatus and get right back at it.

So let’s see if we can find the people behind iBuumerang.

The Chairman and CEO of iBuumerang is a man named Holton Buggs. He’s an MLM pro with an over 29-year experience with sales and network marketing. He definitely knows his stuff when it comes to network marketing but he has also been involved in some legal battles involving another MLM he’s a part-owner of called Organo Gold.

Other people involved with the program are David Manning, CEO, and President at Xstream Travel. Xstream Travel is actually the travel platform system ibüümerang is based upon.

Other people behind the company include VP of Business Development Terrence Gray, VP of Marketing Mark Kithcart, Chief Giving Office of the Büüm Foundation Peter Hirsch, Global Maste Ambassador Edwin Haynes and Director of Travel Service Lori Speers.

It seems the company openly shares the people behind it and the people are really so that’s definitely a good thing. The only thing of slight concern is the CEO Holton Buggs past with MLM lawsuit.

How Can You Make Money With it

So how can you actually make money with iBuumerang? There are basically two ways.

  • You can refer customers to the booking platform and get compensated for any bookings they make
  • Referring to new people to join as sales reps (MLM commissions)

Typically the latter is much more lucrative as it allows you to earn income from the people you’ve recruited and from the people they recruit and so one.

If you understand a tiny bit of math you realize this is an exponential model and you can have thousands of people “working” for you on automation after a while.

That is the main attraction and business opportunity of most MLMs. There are legit MLMs that have legit products that you can earn a full-time income selling.

But with most MLMs the products are usually overpriced and there’s a lot of hype around them. The real attraction is to get hundreds of people below you so they can do the selling while you can focus on recruiting new people into the system.

It does seem that iBuumerang has a decent product to sell that likely has high demand. The real question then comes what it costs to get in on action.

After all pyramid schemes are based on the fact that most income is made through participation fees, not from sales so it’s important to know how expensive the participation fees are relative to the income potential. 

What Does It Cost To Join

The prices of joining MLMs vary a lot and the higher the joining cost is, the likelier it becomes that it is a pyramid scheme. The price usually includes a registration fee, possible inventory, marketing material, and training.

iBuumerang isn’t actually from the expensive end of MLMs. There are different packages you can choose from. The pricier the package, the higher your commissions will be:

  • Affiliate membership: $49.95 /month
  • Coach class: $250 + $49.95 / month
  • Business class: $500 + $99 / month
  • First class: $1000 + $99 / month

So as you can see, the price range is quite high. But there’s the minimum of $49.95/month you will have to pay if you want to become a member so make sure you can afford that if you want to try this out.

You will also earn a lot more residual income, which is kind of the thing with MLM if you buy the most expensive packages. But you have to keep in mind they are pretty expensive, so you would have to know what you are doing in terms of recruitment if you want a good return for your investment.

The Compensation Plan

The compensation plans of MLMs seem to be a whole science of their own. Every company seems to have a more complicated plan than the other and their own terms etc.

It’s really no different with iBuumerang. You can see how the compensation plan works in this video by Mike Healey:

In short they compensate you for:

  • Retail sales. You get sales commissions when your clients book and buy travels through the iGo platform.
  • Recruitment commissions: You get a bonus every time you recruit someone in the system
  • Residual income: You also earn income from the people your recruits recruit. This is called your downline and this is what makes it a MLM or a pyramid structure (not the same as a pyramid scheme).

Basically, you get better residual income the more you pay for.

Is iBuumerang A Pyramid Scheme

So the big question is if iBuumerang is a pyramid scheme. Well before we continue I want you to understand that not all MLMs are pyramid schemes.

There are completely legit businesses that use network marketing as a business model. But the business model offers the possibility of corruption and deceit.

The definitions of a pyramid scheme vary a bit depending on the source but the general consensus is that a network marketing company becomes a pyramid scheme if it’s main function is to recruit new people into the system.

So basically if the income from participation fees is higher that then income from selling actual products, most authorities will consider the company a pyramid scheme.

Pyramid schemes are illegal because they effectively shuttle money from the bottom of the pyramid to the top. The people in the bottom, i.e. the people who join last have no way of making their money back.

If a company relies solely on participation fees it also brings no value to the market place i.e. it exists solely to transfer money to the people on the top.

There are often high pressure to sell and clever smokescreens like talk about complicated technology, personal growth etc. that are designed to mislead the gullible victims. Often the leaders are very charismatic as well.

A cult-like mentality is often formed within the system. People who have invested in the program will not believe it’s a scam even if you show them a court order.

This is why pyramid schemes are extremely destructive, they destroy relationships and take advantage of people’s naivete. They can destroy people’s psyches in the aftermath because of this.

There is currently no evidence that that iBuumerang is a pyramid scheme, but there are a couple of red flags that make me concerned. Remember this is just my opinion.

The biggest red flag is that the CEO Holton Buggs seems to have been involved in some legal battles that involve possibly questionable MLM operations.

The other red flag is the relatively expensive participation fees compared to the actual income offered by the products.

The questions rises if the travel savings platform can actually produce majority of the profit of the company or if most profit is produced through participation fees.

I couldn’t find numbers on how much of the companies profit is produced through the iGo platform and how much through the participation fees.

So it’s impossible to tell if the company were a pyramid scheme without actual authorities going over their sales.  I’m certainly not going to claim they are one. I’m going to give them the benefit of a doubt and presume they are running a legit business.

But I personally can’t recommend Ibuumerang (or any other MLM for that matter) as a business opportunity. There are simply easier, more profitable business models available.

A Proven Option

If you are after a passive income source or want to start working for yourself, I can recommend a less intrusive business model than becoming a MLM rep.

A way that doesn’t require trying to convince people to join your program or buy your products. You just present people with solutions to their problems and let them make their own decision.

I’m talking about online affiliate marketing. I.e. creating websites that attract visitors and convert them into online sales.

I’ve managed to build a successful online business that produces me passive income. I had no previous experience in marketing or technical skills about creating website content. So you can do this too. It’s seriously nothing complicated, but it involves work. 

Compared to an MLM this business model offers a ton of benefits:

  • No need to sell face-to-face or on the phone
  • No need to pester your relatives and friends
  • You can work anywhere in the world
  • Work once, get paid for years
  • You don’t have to worry about if the company you work for is a pyramid scheme
  • You don’t have to work for any company, you can choose the products you recommend

Compared to a regular brick and mortar business, online affiliate marketing is also pretty awesome:

  • No need for large investments. All you need is a hosting account as the bare minimum.
  • No need for customer service and other labor-intensive and annoying work
  • No need for employees. You can hire people if you want when your business grows but you can get to six figures single-handedly and it’s possible to outsource the work through online services instead of the hassle of hiring.
  • You are not dependent on local customers, the whole world is at your disposal
  • Possibility for endless growth. Yes, people have become millionaires with this stuff. But it’s definitely a long road and not a typical result.

I truly think the online world offers some insane benefits and you’d be a fool to not get in the action. Some people think the market is saturated but it’s far from it. There are more people using the Internet than ever!

That said, this is not a get rich quick type of deal. This isn’t really easy either. It’s relatively simple though, but you need to learn new skills and put in the work.

It typically takes several months to a year of consistent work before getting some actual traction. But the benefits are worth it. You just have to stick out the initial phase, build authority for your site and enjoy the benefits afterward.

That’s why I always recommend starting your online business while having a job or some way to pay the bills. I know of a college kids who have managed to create 6-figure businesses while still living at their parents.

But if you have a demanding job and a family to feed, you need to have realistic expectations. It’s going to take some time. But if you put in some work every day, you are bound to succeed.

If you want to learn how I created my online business, check out my top recommendation Wealthy Affiliate. I used their training and tools to create my own online business and I can’t recommend them enough. And the best part is that they’re free to try out!

Conclusion

I hope you found my iBuumerang review useful and it offered you some answer to the question if iBuumerang is a pyramid scheme or a scam. If you have any questions, don’t hesitate to contact me in the comments section below.

iBuumerang has definitely struck in a profitable niche as traveling is an ever growing industry and people are looking for travel discounts constantly.

I just wonder if their product actually produces more money into the system than their participation fees.

I always wonder with MLMs what is the real motive to choose network marketing as the business model, especially with online products like this. You’d expect to have enough customers directly if the product is legit and high quality.

But I do want you to know that MLMs can sometimes offer benefits to both the company and the customers because in some cases it allows to cut out a lot of middlemen from the distribution chain.

I’m personally always a bit skeptical about MLMs and to be honest I expect legit MLM companies to be extremely open and transparent about their income structure, ownership and compensation plans.

In my books, if you choose to run an MLM business, you have the obligation to prove it’s not a pyramid scheme because there have been so many scams using the business model. That said I believe in innocent until proven guilty so I’m not going to claim any company of being a scheme unless proven by court. 

Finally, I can’t really recommend any MLMs because I’ve come to the conclusion that having your own online business is just superior in every way in creating income on your own terms. 

If you want to learn how to fast-track creating your own online business, check out my free 7-day course!

Thanks for reading and see you next time!

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