Today’s Opinion: Global Wealth Trade: too good to be true?
POSTED: 03/13/11 8:54 PMGlobal Wealth Trade is a company that retails jewelry over the internet. The structure of the organization resembles that of multi-level marketing businesses. They promise untold riches to anyone who is willing to join the organization, but only very few participants in such a scheme are actually making money.
Global Wealth Trade is also active in St. Maarten. The company is not doing anything illegal, but it is about to ruffle some feathers and encourage interested sales people to join the organization.
Global Wealth Trade will want people to believe they’re able to make a fortune. They flirt with the top income earners as examples of what could become anybody’s dream. Founder Reza Mesgarlou has a reported income in excess of $700,000, Robert Elsinga, who is linked to GWT in St. Maarten apparently makes more than $180,000 while others listed on the internet boast incomes of between $80,000 and $350,000 a year.
Who would not want to join such a sexy organization with such tempting income potential? There is of course one catch. If something seems to be too good to be true, it usually is. It is not per definition so, that people who join the company won’t make any money at all – but the chances that they will end up with six figure paydays are close to non-existent.
So what does it take to join Global Wealth Trade? On its web site, the Canadian company makes clear that there is an annual membership fee of $194. Access to a shopping account (that allows people to buy at “wholesale” prices costs $77.25 per month or $154.50 per month, depending on the package.
And what are those packages? Global Wealth Trade calls them retailer, Gold, Titanium and Platinum respectively.
The “members” have to choose which package they want to buy. The kit presumably contains jewelry the company produces and that the members can sell to family and friends. Or to others, of course.
The price? The cheap retailer package comes at $306, and the most expensive option, Platinum, at $3,036.
There is a ten day cool off period within which members are able to come back on their decision to join, but they will lose at least $306, because the company has declared this amount for some reason non-refundable.
There are interesting critics around on the internet who warn that Global Wealth Trade is nothing more than a pyramid scheme, designed to rip people off. One blogger reports that GWT was once known as JewelWay International Inc. that sold worthless jewelry to would-be entrepreneurs, suggesting they could sell it for incredible profits. The company was shut down by the American Federal Trade Commission in November 1997, according to the blogger. He also claims that Oliver Koncz, the former CEO of another defunct pyramid scheme called TTI (Treasure Traders International) has apparently “dusted off” the old JewelWay business plan to form Global Wealth Trade. “Long story short, the Canadians are trying to rip us off, don’t buy into their shit.”
The company refers on its web site to Cecil Frenet, a former “night time social worker” from St. Maarten who has joined the company as “a Platinum.” We guess Cecil bought $3,036 worth of jewelry from Global Wealth Trade. We wish Cecil well, of course, but we keep having our doubts about GWT.
Multi level marketing companies are, according to one analysis we found, unstable. MLMs tend to flood the market with products for which there are in the end not enough buyers. The distributors at the bottom of the food chain remain stuck with the product; many MLMs disappear again when the pyramid collapses and the real market forces have kicked in.
The economic reality is that there are only a certain number of people whom are willing to buy any product at a certain price. MLMs usually approach their markets with overprices products, a strategy that limits the pool of prospective customers even further.
There are of course MLMs that do work (like Mary Kay), but that is again inherent to the product: there is a recurring demand for cosmetics. Expensive and “exclusive” jewelry that GWT brings to the market is a completely different story.
Once the market is saturated with GWT jewelry, new distributors that join the company are guaranteed losers, because there are no customers left. They get stuck with the product, and their only way to squeeze some money out of the venture is by bringing in more distributors who stand even less of a chance to make a dime.
GWT promotes itself as the most prestigious luxury designer fashion house in the world on its web site. It boasts of “the world’s highest paying compensation plan with an unprecedented payout of up to 70%,” and labels its business a “recession-proof opportunity in an ever-expanding multi-billion-dollar designer industry.”
The web site is glitzy, and the language the company uses is boisterous. It is all too good to be true, plenty of marketing push and nothing to prove that there is indeed a solid business out there.
Maybe our local jewelers have something to say about this way of marketing jewelry. Really such a golden opportunity, we’ll soon see all of our local jewelers close their stores and join the ranks of Global Wealth Trade. If that happens, and only then, will we concede that our opinion about multi level marketing schemes is completely off the mark.
Comments (19)
This company is in Dominica to, trying to sell the same hype. I was immediately suspicious and did a bit of my own research and i found out the same things that are being said in this article. People need to learn not to jump into seemingly “golden opportunities”. Get informed first.
This article doesn’t make any sense. If GWT is a scam then Gucci, Louis Vuitton and Chanel are also. GWT is a company that developed a brand called FERI Designer Lines that over 120+ Celebrities on their website are seen wearing and the owner was featured on the front cover of the American Business Journal the month after the 3rd richest man in the world Warren Buffet was also featured on the front cover. Why would they ruin their reputation by putting the owner on the front cover? Also the Canadian Jewellery Association featured them in 3 different publications calling their products “unimaginable”. And they were given the award by VIVA magazine as the 2011 Luxury Designer of the Year. And featured on The VIEW TV show on Valentines day and got a standing ovation. Should I go on? The only reason someone would call them a scam is out of ignorance and not understanding their business model. If someone is not making money with the company it is because they are not putting in the effort. Those who are, have the paychecks to prove it. Let’s get some balanced opinions here and not one sided verbal diarrhea that is clearly pushing someone’s own personal agenda.
Hi promo-bot. Balanced opinion? Any company that markets itself to employees with shitty house music,a low res picture show and a fundamentally flawed misunderstanding of inflation and global markets is a scam.
This is a scam.
Total scam. I have seen with my own eyes what that 3000+ buys you. a bunch of silver and ‘ triple a’ cubic zerconias. It is the type of scam that attracts very selfish, greedy people. I nearly died laughing listening to the ‘personal luxury consultant’ as she described all the wonderful ‘pieces’ she had ordered. Cubic zerconias, glass, artificial pearls. Oh, but they are triple a cubic zerconias…… dear lord.
Prosecutor Mos admits Global Wealth Trade is legal
We all knew that the accusation of the prosecutor and the Dutch police in St Maarten were wrong and unjust, and we knew that the truth would soon come to light – and we are pleased to say that it has.
The prosecutor Mr, Mos who started the attacks on Global Wealth Trade has evidently changed his views on the legality of Global Wealth Trade business model. In his recent interview with Today newspaper he said
“Global Wealth Trade is not involved in illegal activities, but the structure of the company and the way it is doing business resembles the business model of Herbalife, a company that marketed a weight loss product in the Netherlands. “You could become a consultant for that company and then you had to recruit new consultants,” Mos said.” POSTED: 05/18/11 12:16 PM
Mr. Mos went on to say
“That works until the market is saturated. A number of people made good money out of it.”
Herballife started operations in 1980. In 2010 they reported 2.7 Billion dollars in sales that has rapidly been growing every decade since inception which includes Netherlands. Clearly the facts of the example Mr, Mos used regarding “saturation” is contradictory to his views.
Global Wealth Trade Corp is a 7 year old company, not a “new kid on the block”. We have representation in 50+ countries, 8000 Luxury Consultants (and growing) and have been recognized as the fastest expanding, and #1 Networking opportunity in the world by our industry score keepers http://www.businessforhome.org which happens to be a Netherlands based company.
http://www.businessforhome.org/2010/09/global-wealth-trade-gwt-review
Needless to say we are surprised at the negative articles in the Daily Herald and Today newspapers in St Maarten – a country in which we have had an office for 2 years officially opened with the attendance of St. Maarten – Prime Minister Honorable Sarah Wescot-Williams.
So we ask this question, how can
- the #1 ranked direct selling company in the world with documented highest paying distributor compensation plan
- one of the most prestigious luxury designers who just conducted a major photo shoot in Toronto with Hugo Boss and Versace, who designs and manufactures the world’s most luxurious designer lines
- the company that beats every major direct sales performance stat by at least 800%
- and the ONLY opportunity that ever worked successfully for the people in the islands with hundreds of excited luxury consultants
be under attack by the Dutch owned St Maarten news papers, the Dutch police and the Dutch prosecutor?
Our investigative reporters in St Maarten tell us that the scandal may have started with some very nervous and influential local retailers who were afraid that GWT’s Luxury Handmade exclusive lines were going to detract from their mass produced products that are targeted towards the cruise ship passengers and their local market.
Of course there are also those who are set against the Direct sales industry as a whole and are continually trying to bring our profession into disrepute by jumping onto any negative MLM bandwagon.
Mr Mos also made another comment that seriously requires attention. He went on to say
“that the quality of the Global Wealth Trade products is lamentable.”
Our understanding is that Mr Mos has no knowledge of jewellery, hand bags or sun glass manufacturing nor has he ever seen, touched or studied any of our luxury lines so again the question that we will require Mr Mos to answer in due time is where does this comment stems from?
Facts about our luxury lines:
Our family heritage within the precious metals industry and fine jewellery dates back as far as the 1500’s with immediate family being involved in jewellery manufacturing since 1880’s. No other company anywhere in the world of Network Marketing can claim 500 years of experience, knowledge, and expertise in their field. Specifically our supremacy in the jewellery world is well documented and recognized world wide starting with our exclusive gold and silver compositions and plating technology.
Simply put when the fine diamond jewellery world stops at 18 Karat, our luxury gold jewellery lines start at 19 Karat with our prestige line FERI MOSH being constructed in the GWT exclusive 21 Karat gold composition.
All our jewellery is independently certified by the world’s largest gemological laboratory International Gemological Institute where three professional gemologist certify our quality and craftsmanship world wide. So Mr Mos can freely express his uninformed opinions regarding our prestigious designer lines and business model to the media however those opinions and its motives will soon be questioned in due time.
The same industry supremacy is also true in our distributor compensation plan which has been ranked #1 since its inception in 2005. It is the world’s first revolutionary “Free Flowing Compensation Plan” with the highest payout ever conceived and the reason why we have the highest E/D ratio (Earning/Dist ratio) worldwide as well as the highest retention and the distributor activity ratio of all time.
Considering the facts here vs. the printed fiction, perhaps you are now of the same popular opinion in St Maarten that the hostility shown towards Global Wealth Trade stems far beyond our revolutionary business model or our prestigious luxury designer lines. There has been much attempt to damage our good reputation and to interrupt the businesses of our valued Luxury Consultants by a few with power and reach in St Maarten and it is now our legal teams mandate to insure that our good name and reputation is well defended.
We invite each and every one of you to come and visit us at our world class International Headquarters in Toronto or one of our Regional offices in Hong Kong or St Maarten to see our designs, see our state of the art showrooms, meet our professional Luxury Consultants and get the facts for yourselves.
Our valued St Maarten Luxury Consultants:
We command you for your resolve as this has been a difficult time for you. We want to assure you that our legal team in Canada, St Maarten and abroad are watching the St Maarten media assault closely. We congratulate you all for your professionalism, class and focus.
GWT PR team.
TODAY NEWSPAPER EDITOR’s NOTE:
The “investigative reporters” of Global Wealth Trade incorrectly suggest that the Today newspaper has a Dutch owner. That’s a sloppy piece of investigating. The statement that our comments about Global Wealth’s business model have been inspired by concerns expressed by local retailers is also incorrect. We have never statyed that Global Wealth is doing anything illegal. we have just warned our readers against accepting a proposal that requires them to pay hundreds if not thousands of dollars to become a member of global wealth’s happy inner circle. There are only that many people ready to pay for certain products and once a market is saturated – and you reach that point pretty qwuickly in a small market like St. Maarten – the consultants are stuck with expensive yet unsellable merchandise.”
I am beyond amazed especially being from the Caribbean at the comments of the editors here. Clearly you have vast ignorance of an industry that is almost 70 years old that has created more Millionaires than any other and has pillars like Warren Buffet, Donald Trump and Sir Richard Branson opening and buying companies in the industry. Global Wealth Trade has been in the Caribbean 2 years and we are not even close to saturating that market where already we have helped Luxury Consultants be able to not only earn an additional income to help change their lives through the product of wealth that is allowing major luxury goods Designers to reap record profits in the current economic climate but if you understood anything at all about investing they are now able to invest in and accumulate wealth in a way the richest on earth has done for 3000 years. Also not only is the Caribbean market far from saturated but everyone in St. Maarten and the Caribbean knows people in Europe, USA and Canada who they can share the products and business with!!! Oh and by the way the oldest company in this industry which has been around for over 65 years with over 8 million distributors that advertises on CNN has not come close to saturation so how could Global Wealth Trade have? The luxury goods companies that have been around for 150 years with millions of customers around the world have not come close to saturation so how could Global Wealth Trade have?
Editor’s Note:
Market saturation is a reality that hits every product sooner or later. The figures Global Wealth Trade has released are simply not realistic: more than 800 luxury consultants in St. Maarten? Who are you kidding? But then, this is a free world, and there are no laws against fooling people. We gladly reconfirm the GWT is not doing anything illegal, but we keep warning our readers against accepting proposals that seem too good to be true.
I need to be make a correction to the “figure” mentioned in Today commentary regarding my annual income from my GWT business. Apparently Today’s information comes from a website that keeps track of the worldwide income from Direct Sales companies and its distributors. As these amounts are in most cases “rough estimates”, it is not wise to use these “figures” in a public article without verifying this on accuracy. The figure mentioned is NOT what I have received in the time I am involved in this business. GWT has a income disclaimer at the end of each business presentation and never “guarantees” anyone income as it is based upon your own activities, sales and determination to build your team. Next time contact the persons involved before making these statements!
Editors note
The income mentioned stems from a web site Global Wealth Trade is proud to refer
to all the time to substantiate its standing in the multi level marketing world.
Maybe Mr. Elsinga ought to ask the company not to disclose his income anymore.
But then, publishing these unsubstantiated fantastic incomes is part of the
marketing plan to bring new luxury consultants into the fold. It is rather
remarkable that Mr. Elsinga now suddenly claims that he is not making that much
money at all. Has the tax office been calling?
Although you make some interesting points and I do agree with your opinion, the sources you have cited are not reliable. I have researched GWT over the internet as well and cannot find compelling evidence that it is a shady business. The comments made on those websites are interesting but cannot be substantiated. You do make good inferences in regards to how hard it would be for someone can realistically make money from this.
Gee now i’m confused. I am just a young person trying to decide whether i should join ths business or not and here i am stumbling on this article just before i sign up…but I dont have solid evidence to decide. Need objectivity here…
Work had… don’t play with money. If your rich sure… have fun with your number game, but you won’t be happy. Enjoy whatever it is you do as best you can and don’t ruin your life for hope based on ploy.
From reading some of these post it’s fair to say that some of you and with all do respect are ignorant about the MLM business model. MLM is a great opportunity for the serious ambitious entrepreneur. MLM is for everybody but not everybody is for MLM. People call Network Marketing a pyramid pull out a dollar and turn it over and you’ll see a pyramid on the back of it with a eye ball looking down. Explain that…. Even our founding fathers of the US mint new the best way to capitalism was a well designed pyramid.
Well it’s quite easy to explain the pyramid on the back of the dollar bill…. in one word too. Illuminati
As most secret societies, it has a selfish agenda.
Your argument has no merit because you’re as ignorant as you are uninformed…
This is a scam people, stop fooling yourself and others. Pathetic!
Check this out everyone. This guy here has a complete page dedicated to the research of GWT.
http://ourgwt.com/ourblog/recommended-viewing/did-your-due-diligence/
He even titled it “Did your own due diligence?”
Me personally… after seeing all of the 3rd party media, celebrities, certifications, appraisals, BBB, PLUS GWT featured on the American Business Journal, Canadian Business Journal and their brands on so many celebrities AND the CANADIAN JEWELLER… it’s obvious this company is real!
I’m joining and I suggest you all to do the same!!!
I don’t get why people say it’s a scam without any ‘evidence’. Show me some evidence please… otherwise, leaving a post and saying ‘scam’ will only embarrass yourself.
THE LAST WORD – FACT OR FOOLS
. What is Pathetic Simon is attacking your competition online when you cannot complete 
. If you had any smarts you would know not to through stones at a castle when you live in a glass house 
. But I guess picking on the #1 opportunity in direct sales when your company is rated on the bottom of the list doesn’t require smarts. I told you SIX years ago come over to GWT and you will feel right at home because we have over a 1000 LCs that came from your company and you already know that 
Simon
Still pushing that “scam” telecom company? By the way I tried calling you to deal with this in person but couldn’t connect so I guess that so called long distance plan you sell with ACN don’t work too well ha
As far as the rest of the NO-LOADS that are commenting negatively here is the best response for you.
That incident in St Maarten happened in mid 2010, the three paid perpetrators quickly backed out and admitted publicly that they were wrong. That was THREE years ago and than GWT was in 40 countries and was rated #1 company in the world by Netherlands company that rates direct sales companies businessforhome.org.
Today THREE years later we are still rated top opportunity every single year, just celebrated our FORTH year anniversary of our gorgeous St Maarten office, The company is growing faster than ever in the islands and 76 other countries in just 9 years
So if you are new reading this you have a choice:
1- believe the baseless attacks and opinion of people who have never done business with GWT (mostly annoyed competition like Simon that have lost their team to GWT)
or
2- Read the life changing experiences of the people that actually are doing business with GWT
or don’t belive either side and simply read what some of the most prestigious business magazines in the world are sayng about Global Wealth Trade. The media is simply MESMERISED by GWT but you can read it for yourself.
http://www.abjusa.com/emag/2012/Feb_Mar/file.pdf
Global Wealth Trade being featured on the COVER of American Business Journal and 8 page spread inside. PM of Canada, CEO of Wikipedia and three US congressmen were featured inside and not on the cover, what does that tell you about the respect and notoriety of GWT
http://www.cbj.ca/business_in_action/dec_11/global_wealth_trade_a_ceo_with_a_touch_of_luxury.html
7 page spread, and cover page mention.
http://www.businessforhome.org/2012/11/ramin-mesgarlou-ceo-global-wealth-trade-interview/
Direct sales industry leading company that rates the best companies in the world. Find out why Global Wealth Trade is constantly rated #1 four years running including in 2013.
http://www.businessforhome.org/2012/02/global-wealth-trade-review-2012/
More top reviews by industry’s top website in 2012.
http://www.canadianjeweller.com/mags/2011_August.html
page 29
GWT’s 21 Karat FERI MOSH Prestige line written about THREE different times by the world’s most respected jewellery trade magazine Canadian Jewellers. They called FERI MOSH “the best f the best” and “unimaginable ultra luxury jewellery collection” , read story page 28
http://globalwealthtrade.com/default/media_feri_celebrities.html?cntylng=eng_can
Did we mention in 2011 FERI won luxury designer of the year award by Viva Int beating Jennifer Lopez jewellery line for the award? Click on the link and see our media page where 125 Hollywood celebrities are FERI clients and FERI is officially Hollywood’s designer line and on every red carpet from Oscars to Golden Globes.
Global Wealth Trade official sites
FB: Global Wealth Trade Corporation
YouTube: GWT INC “official channel”
There are many many more accolades by the world media but I think you get the point so the last website you want to visit is the company’s official website and join our 14,000 LUxury Consultants in 76 countries.
http://www.globalwealthtrade.com.
P.s. I thought someone said in one of those blogs that St Maarten will soon be saturated with LCs selling FERI. Well that was THREE years ago and the business is growing faster than ever in St Maarten
I guess it is FOOLS not facts then because the information above is far more credible than the negative crap from Simon and others. I know how it feels when you are building a business and you get attacked by broke people who don’t have a pot to piss in. At least MLMers have the guts to try.
Tom
Well we can all post our opinions which is great in the world but I always say I like to know facts. The facts are Global Wealth Trade has A+ rating with Better Business Bureau, featured in American Business Journal and Canadian Business Journal going to the top CEOs in those countries, reviewed as one of the top 20 in the world 3 years in a row on businessforhome.org the #1 site overlooking companies in the industry, featured twice in a year as company of the month by direct sales business journal the oldest and biggest paper in the industry, featured 3 times for its incredible product line in 128 year old world famous Canadian Jewellers magazine, products appraised by the top 3 independent appraisers in the world. I could go on for a long time but again I just want people to be clear opinions are great and we are all entitled to share our opinion but turn to the facts when you want to decide on the quality of a company and the facts show without question Global Wealth Trade is A+
i honestly got scared of joining at first but then how can they post world known celebrities as their jewelry models! surely that’s asking for trouble! so i say GWT is the way to go. am proud to be a distributor now!
GWT has absolutely nothing at all to do with JewelWay Int’l.
Never has and never will. They are WORLDS apart.
Rumors and fake facts are a part of life, but the truth always comes to light in the long run.
GWT is legit from top to bottom.