Coastal uses a multi-level marketing system (though Coastal claims it does not) to sell its vacation packages. Here is how it works. I am sold a vacation package from one of three Levels. I purchased the Level II package for 4,296.00 dollars. The retail cost is 4,995.00 dollars. I was given a discount.
I am now a Level II sales director and authorized to sell the Level I and Level II packages. I must pass my first two Level II sale commissions on to Matt Willis, my director. The commissions are 3000.00 dollars for Level II sales. I can keep any commissions I make on any Level I sales, around 1000.00 dollars.
Here is the problem, there is little or no value to these packages.included in this package was a Hotel Access discount card good for 50% discounts on hotels listed with this company. I booked a room in Omaha, Nebraska, following the written instructions in the Hotel Access guide book. I was quoted a room rate of 197.00 (the highest rack rate) and given a 40% discount off that rate. This was the hotel managers decision, as all discounts through Hotel Access are at the hotel managers discretion. This is not what I was told when I purchased these packages.
I was told included in the package is a Hotel Access card worth 50% off hotel rates. Nothing was said about the hotel managers discretion or that the rate was the highest rack rate and not off the normal rate charged to anyone else. I had a friend call that same hotel in Omaha the same day I did, without using any discounts she was quoted a rate of 127.00 dollars for the same type of room. With either AAA or AARP discount she got a better rate than I did.
Here are some of the other problems I encountered, I ordered a Florida vacation from N.B. Management, which is where the Coastal Vacations packages come from, and had to pay a processing fee of 6.95 dollars.in a couple of weeks, I received a condo form identical to forms already in the package. I received absolutely nothing of value. I couldn't believe it.
Also, I was told included with the various discount cards I would receive a gasoline discount card worth 100.00 dollars of free gasoline. Not true, I had to go on line to register the card and claim my gas vouchers.in order to get any vouchers, I would have had to subscribe to various services or purchase goods through surveys taken on line. What it amounted to is that I would have had to spend 10.00 to 20.00 dollars or more just to receive a 10.00 dollar voucher for gas. Not at all what I was told.
I spent 4,296.00 dollars for the package. To receive the discount cards it cost me another 40.00 dollars. There is an 89.00 dollar a year membership fee. Matt convinced me I needed to have a web site designed by his wife Catherine for another 1200.00 dollars.
I purchased sales leads from the We Close Your Sales web site that is a part of the Coastal Vacation package. The total I spent on leads was over 400.00 dollars. Not one lead was viable. They were touted as being real time leads, not true. None of the leads I contacted were interested and many had wrong contact info. That was another huge waste of money.
What I am supposed to do according to Matt Willis, is run print ads, on line adds, post blogs in chat rooms to advertise. Advertising on that level is extremely expensive, and guess what I was told by Matt Willis when I mentioned the high cost, pay your advertising before any of your other bills, including your mortgage, what kind of advice is that?
I have contacted Matt Willis and told him I feel this whole project is overpriced and he refuses to discuss a refund. The idea is for me to want to sell the same worthless package I bought to someone else. Then I get may money back. I refuse to do that. These packages are not anywhere near worth what they claim. They also claim that this is not a pyramid scheme, yet Matt claims to be making 30000.00 a month from this. That's right, thirty thousand a month. When I first started talking to him in January he claimed he was making 10000.00 a month and anyone could do it. I guess that may be true, but I could not bring myself to sell any of this to any one.
William
Montgomery, Illinois
U.S.A.
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