Now Here Is Some GOOD Recruiting!

I have always said that there are some very good people in YTB. There are some good agents and there are some good business people. Unfortunately, the opposite seems to be the norm and ethics and honesty seems to take a decided back seat to doing things right.

I was looking through a Craigslist posting and found this gem. Rather than have all the slimy directors telling you how to cheat your taxes and scam some freebies from the suppliers, why not ask these folks to honestly market what it is that you sell. Huge kudos to Peter and Aileen Pelt! I still don't like the concept, but if more Reps and RTAs would take this type of approach rather than the "get rich quick, quit your job, screw the IRS, and travel for free and deduct it all" approach, it would be a giant step in the right direction!

Join Our YTB Team (bernal heights)

http://peltinternationaltravel.vacationmedia.net You want to enter the 7 Trillion Dollar Travel Industry that is setting all time records and still growing. The opportunity is great and Your Travel Biz give you that opportunity to setup your own travel business; it is easy and extremely affordable for the average American or Canadian. Your Travel Biz (YTB) is a home-based opportunity that lets individuals start their own travel companies. The business, the enormous commissions, the discounts and tax breaks on travel are the fringe benefits that you receive the very first day you start operating your travel business. There is no probationary period to suffer through to begin to capitalize on lucrative home-based business benefits. Because of that, the opportunity for growth is fast and unlimited. With YTB, which uses a network-marketing business model, you can build a team of hundreds or even thousands and; although they all will be working for themselves, you will be working together to achieve success. A network marketing home-based business is so different from the traditional concept of selling. It is working together in the spirit of cooperation, the spirit of excellence to achieve success. Through teams, independent YTB business owners can help each other grow their businesses by providing support, training, and friends to rely on. In the 7 trillion dollar travel industry, which is going to double in the next ten years, there is more than enough business to go around. In the process of building your team, your business will grow as well as your relationship with your teammates. YTB built its success on the foundation of relationship marketing with people like you, people who relish a sound financial future and enjoys traveling. The travel business is a people business. To build your business, you just go out and find like-minded people like yourself interested in the business. Whatever your business objective may be, YTB is the bridge to connect you to your dreams. YTB gives individuals the opportunity to decide how they want to run their business, by choosing one or combining both of the company's income-earning options. You can work your business two ways: through your own travel site where people can book flights, hotels, and other travel necessities and by helping others set up their own YTB travel sites. You can literally become your own neighborhood travel agent. You will make money as family and friends book travel. You will also receive discounts on your own travel. Eighty percent of travel is based on a recommendation from a friend or someone we trust. By owning your home-based travel business, you get to travel more often, and to more places. There is also the opportunity for tax deductions when travel is your business. In everything, there are rules you have to follow and there are rules in YTB. You have to keep the proper documentation; but its exciting to know that every time you take a trip, you're enhancing your business success. Join the financially secure; those who operate home based businesses. To learn more about home-based business opportunities, YTB and its commission scale, bonuses, discount travel, and flexible work schedules. Our team members are helping each other every step of the way. I will see you there! Your Travel Biz gives you the opportunity to travel the world while putting money back in your pocket at the same time. Do you what to earn additional income and have fun doing it. Do you want to know more? http://peltinternationaltravel.vacationmedia.net For More Information Please Contact Peter & Aileen Pelt @ 1(866)990-8991

A Puppet Tap Dances

It seems that j. Kim Sorensen, on of the most influential people in travel, is caught a little short on facts and original comment in the recent Travel Weekly Column, In The Hot Seat.

What did Travel Weekly's Nadine Godwin get out of Kim that was not already sent out by Scott Tomer as "talking points"? Not too much.

This "interview" was so full of deflection and avoidance it was not even funny. He could not even tell how many RTAs were in the program! This is something I might expect a CEO to know.  If you want the Cliff's Notes version, here it is:

1. How many RTAs do you have? (I don't know but more than the beginning of the year)
2. Do you envision converting all RTAs to the franchise model? (I don't know and I don't want to talk about that)
3. What portion do you think might switch? (I don't know but if they don't we won't get rid of them)
4. Isn't this risky? (I don't know, but we know how to recruit people)
5. Can you explain the reason for the switch? (I don't know but we will have a manual ** available that will tell us what we need to know)
6. Will this improve your supplier relationships and enable you to reclaim IATA and RCCL? (I don't know but the general public has a better perception of a franchise than they do of network marketing)
7. When will you make a final commitment to the switch? (By the end of the year)
   

Well, he answered 1 out of 7 questions or about 14%. Which incidentally is higher than the success rate of the people in the RTA or Rep programs, but still a failure by a long shot.

He obviously knew what the interview was about and I can understand not being able to discuss the details, so why agree to the interview in the first place? Did he think Nadine was going to talk about the Statue of Liberty?

In any case, the CEO of YTB came off looking like a dolt. He lost all control of the interview and really sheds a poor light on his company. Essentially, he has said he knows nothing...which is par for the course since he has no background in the travel industry.

** It seems like YTB is hanging an awful lot on this "manual" that will be forthcoming. Does anyone want to take a guess as to what company might be producing the manual and might be getting some overinflated sales on the manual?  Perhaps a privately held company that is owned by the Principles of YTB that is reaping $8 million dollars for a stage prop?  Just a guess on my part!

Oh Oh---This Might Be A Problem (We Don't Need CLIA)

CLIA announced this afternoon that they are revamping their ID card policy effective in 2009! It is about time. Now in order to obtain a card, agents will need to:

2009 ID Card applicants are required to be enrolled in, or to have achieved a designation (ACC, MCC, ECC, ECCS) in CLIA’s Cruise Counsellor Certification Program. Attainment of an ACC designation requires a program of mandatory and elective training options as well personal cruise experience, shipboard inspections and 25 cabin sales within the two year enrollment period.

So, now the push will be to sign up and get your card now (just like it was in late 2007 for the CRTA card). But how are RTAs going to handle becoming an ACC, MCC, ECC, or ECCS and maintain sales of 25 cabins!

And as a franchise, they are no longer able to trade under their "host" number but will need to invest in their own membership. Methinks CLIA pulled a fast one on the MLM world!

I know, I know, "we were #26 and we don't need CLIA"

A Tale Of Two Flopportunities

Will they ever learn? One of our readers is apparently not satisfied with the riches provided by YTB and is venturing out into the cell phone arena.

Would you like to get paid on a new wireless service? How many people do you know who use wireless service?

A huge wireless company is using MLM to distribute their product and I am one of the first jumping on the opportunity. This is a no brainer because the world is WIRELESS! Young, middle-aged and seasoned are replacing their home phones with a cell phones. Statistics show that the average person uses over 800 minutes per month! Now you can earn residual income on your own bill and those of your clients!

All of my travel professional colleagues who are jetsetting around definitely need their cell phones to maintain their travel business. Join me in this new opportunity and earn income on those cell phones.

You can earn $10,000 a month or more with this fantastic opportunity. The site is launching on the 29th of this month but you can pre enroll today for FREE!

Check out my site and see this amazing opportunity for yourself! WHO DO YOU KNOW WHO USES A CELL PHONE? Get paid on their wireless service.

This is Freedom 2 Talk!

Does the pitch sound at all familiar? What happens if we replace "cell" and "wireless" with oh say the word "travel".....

Would you like to get paid on a travel? How many people do you know who travel?

A huge travel company is using MLM to distribute their product and I am one of the first jumping on the opportunity. This is a no brainer because the world is traveling! Young, middle-aged and seasoned are traveling. Statistics show that the average person travels! Now you can earn residual income on your own travel and that of your clients!

All of my professional colleagues who are jetsetting around definitely need to travel. Join me in this new opportunity and earn income on those travels.

You can earn $10,000 a month or more with this fantastic opportunity. The site is launching on the 29th of this month but you can pre enroll today for FREE!

Check out my site and see this amazing opportunity for yourself! WHO DO YOU KNOW WHO TRAVELS? Get paid on their travel.

This is YTB!

So, if YTB is as good as everyone wants the world to believe, why the switch? If you are providing the customer service you want the world to think you are, are you letting your "clients" know that you are now concentrating on selling cell phone plans? This is further support that most of the people in YTB (and MLM in general) are not making any money, are opportunistic, and looking to get rich quick--off of other people's money and efforts with none invested of their own. Take a hard look at the picture of cash...that is about as close as you will come!

Your collective mommas are probably pretty proud right about now!

Damage Control On Franchising

As with so many MLM companies, both the legitimate ones and those that are less than legitimate, the leadership creates a fervor and a cult like following. The continued success of this model is reliant on new people coming into the program and funding the paychecks of those that entered the program earlier. Some call it a pyramid scheme or a Ponzi scheme. While partially true, this is not the case, becasue in those two schemes, there is nothing involved but a money trade.  In order to "legitimize" the scheme, there must be a product. And in the case of YTB, the product is travel stores and travel. But please make no mistake, travel is merely a means to an end and a byproduct.

This comment was made on the Yahoo Finance Boards last week. Take it for what it is worth:

I worked for the corporate office for two years as a senior level programmer. I am the one who set up the systems that now run the company and I had access to the top. I was there when the stocks went skyhigh and heard the comments with my own ears from Lloyd and Scott about what they were going to buy when the stocks reached a certain level. They have no intention, nor ever had any intention, of making this a serious company. All of the programmers (very talented programmers who have since left due to the company bull@#$%) always talked about why the hell they didn't let us build a true booking engine if they were truly serious about making the company into something real.

I can tell you without a doubt that they don't want a real booking engine because there never was and never will be any intention of the company being anything other than an empty shell that funnels money into the top tier that will be used up and thrown away.

They are amateurs that only know how to scam people.

The YTB cheerleaders will call me a naysayer or a disgruntled employee but that's ok because I have seen the wizard behind the curtain.

It is funny,he references the Wizard of Oz; because I feel the curtain is about to be pulled open on YTB very shortly and there will be a lot of exposure that will not be pretty. The saddest part is that virtually everyone in the program except for 1000 or so early adopters will lost what they have invested. They will have been promised a dream and it will turn into a nightmare.

At this point in time, I believe YTB is working a new money grab with the announcement they will be franchising in 2009. While they still have a receptive audience (recruiting is tanking and more on that later) they are pumping up the benefits of franchising--a concept they derided as third rate for years. I have suggested that a new franchise (with all the bells and whistles they claim) will sell (if they can sell it) for $5000. But to the RTAs that want to switch, they can do it for $2500 and YTB will finance it over a year interest free. Of course most RTAs are not making money as it is, but this promise, this carrot, will be enough to have many make the switch. This is potentially a $325M windfall for YTB. And then you add the other accessories that will be needed to "insure" your success like manuals, support, training, collateral--all at a price!

Once established as a franchise, the pressure is off of YTB to perform in the realm of travel. It is all put on the back of the individual franchisee  who will likely see lower commissions because they are based on INDIVIDUAL production. The franchisee will pay a monthly franchise fee or a royalty or both. But they will not realize this until they have bought into the franchise and are likely locked into a multi year contract.

They say that the existing program will remain. Probably. They cite the Bill of Rights and the copyrighted compensation plan. Can anyone tell me what the plan is tied to? Recruiting. So if the recruiting falls off like it is, there will be less and less compensation. They pay per the plan and the BOR, but once it dwindles to nothing, the Reps will leave. YTB will not have violated the plan in any way. All they have done is say I will guarantee you a commission as long as there is a sale. No sale no commission. It is simple really. The existing Reps will be able to continue to sell the Busiess Opportunity but not the franchises. There are a lot of legal issues with franchising that are not a part of a Business Opportunity. Is it an odd coincidence that YTB has been quietly hiring Business Development Managers with franchise sales experience for the last six months?

I mentioned the decline in recruiting. YTB is on the verge of losing more people than they are bringing on. I suspect that we will not see this in the financial reports until the third quarter of 2008. When Coach could not sell out his two cruises he opened them up to military and pastors for free--of course they all received a sales pitch and if given a free cruise, I might be inclined to cut a check for $500 to join and "repay" him.  2Q is safe, but 3Q might show a different tale.

Meanwhile, the senior management has been filtering  money to a privately held sister companies. Take for example this foam stage prop. Depending on whihch report you believe, YTB is paying $6 million or $8 million dollars to have this produced. Seems extreme to me. But what you don't know is that the manufacturer of this monstrosity is a privately held sister company owned by Coach, Scott and Kim. So, they have effectively transfered up to $8 million dollars to a very small company controlled by three insiders. Sure there is cost, but $8 million? I recently heard that Reps and RTAs were required to buy paper collateral from this same company. Do you want to venture who will be preparing all the training manuals and collateral for the franchise? Would anyone care to venture if the prices might be inflated? Do you think the private company, absent an investigation, is out of reach of the SEC?

Right now, the existing Reps are scrambling. and the blogs are alive with fear and trepidation. One in Michigan even went so far as to say he was selling the franchises (tough to do since it is not a done deal yet) for $449 and he portrayed the site as an official YTB site. He issued a press release that indicated he was speaking on behalf of YTB and only disclosed he was not in the "about us" paragraph at the bottom.  Although I am not sure he fooled anyone--while YTB may be a scam they do put on a good face and I have never seen "registerd By Go Daddy" on the bottom of one of their sites. But YTB never claimed to have the brightest bulbs in the pack.

So there you have it--my take on the YTB debacle. In terms of travel, the numbers are down, they will try some more smoke and mirrors with the franchise allowing them to filter money into a private company and prepare to move on to the next thing. I believe that they realize travel may have been a mistake. There is not a lot of margin, they have essentially failed in their expansions (not to mention the other programs like Olympics, 2 Fly Free, Cruise With Coach, etc.) and are positioning to move on. A recording of the Coach indicated that with franchising he wanted to be the biggest supplier of "products" and to take on Walmart and Sam's Club. There was no mention of travel. I have said for a long time that I felt they woudl use travel as long as they could, and tht time may be here!

Interested in reading some of the fearful blogs? Check it out here, here, here, here, here and here!

This Week's Top 5

Wanna know what everyone is reading? Here are the week's top 5 blog posts:

5. DisenFranchised With YTB
4. YTB's Marching Orders To The Reps
3. YTB Pisses Off Environmentalists
2. New YTB Class: Protecting The Environment
and the number one blog post of the week........

1.If True, This Is Unconscionable


And, don't forget to rate these entries. You can vote with the little stars right below the SHARE icon. And, if you are in any social networking sites, be sure to share our posts with your network using the SHARE button.

Danny Borg Get's Smacked Down

I suspect that Danny is losing sleep knowing that this particular RTA will not be approaching him to be a business partner:

July 14, 2008

Letter writer can run from YTB, but he's running from business

I am not interested in apologizing for those two so-called YTB reps mentioned in Danny Borg's letter but I have to say that I am thankful that those types are few and far between. They missed the boat regarding customer relations, business ethics and business etiquette.

Trust me, Danny, even though they thought their intentions were honorable, their approach lacked finesse. I don't blame you for not wanting to do any business with them. However, I do believe that you should look at the business model that YTB Travel Network and YTB Travel and Cruises have to offer, because it is spectacular.

There are brick-and-mortar travel agencies that are associated with YTB Travel Network because they saw the possibility of increasing their bottom line without compromising their customer service. And they saw an opportunity to increase their customer base with people they were not reaching because of the convenience of the Internet.

Realize that you are missing out on the income-producing group of people who are comfortable with making their own plans and bookings on the Internet. They have sidestepped your store because they can accomplish this task from the convenience of their own home at whatever hour of the day suits them. They are either using a family or friend's YTB website or Expedia or Priceline, etc. But whichever e-company they are using, they are not coming into your store to see you.

Regardless of the cost of maintaining the website, which is a constant update of pricing and trip information, the monthly charge is no more than you pay for your cellphone or for an extra line for the fax machine. That is just the cost of doing business, and since it is tax-deductible, it is no cost in reality.

And isn't it great that if a customer of ours cannot get in touch with us, they can fall back on the YTB Corp. office hot line where they can talk to another travel professional equally qualified to answer all their questions? Who do your customers call when they cannot get in touch with you?

Rest assured that the comments you made in your letter will keep all YTB reps away from you and your business. But that only means you have lost out on some really great business friendships and networking relationships. I know I won't be contacting you to offer you a new way to get new money flowing to your business. And isn't what makes business grow relationships and networking?

Kathryn Hoyt
YTB Travel & Cruises
YTB Travel Network
Brooksville, Fla.

So, what is everyone's opinion on this? I know Rod and several YTB RTAs called Danny to express their displeasure and tried to "set him straight" as this letter writer did. A quick Google search yielded this from the St. Petersburg Times:

Hoyt can be reached at 277-7300 or via her Web site at www.travelkatz.com.

DisenFranchised With YTB?

Well, apparently, the TTAs are not the only ones that think this franchising concept is a strange idea and will benefit no one other than the top of the pyramid. A lot of the YTB blogs are alive with the counter spin. This blog warns everyone that the "other" MLM companies will be contacting them and trying to lure them away. The pleading nature of the blog entry is telling. I suspect that many will shift away--if for no other reason than they are not making any money with YTB--nothing to lose!

Not sure I follow this logic, but...

What they DIDN'T KNOW when they called many of us is that we're not worried. Even when they tried their best and used their boldest fear mongering techniques... we didn't buldge. It's not that we're all eternal optimists. It is that we understand that franchising is a GOOD THING... a real good thing. We see a bigger picture, BEYOND what the fear mongers see. Or do we? Maybe, it's because THEY ALSO SEE what a smart move YTB would be making to implement a franchise model into the existing framework. Maybe that's why they're trying to make a pre-emptive move against YTB RTAs and REPS before we are even farther out of reach. I don't know. It is an interesting thought though. What I do know is that YTB is on the cusp of something very exciting and it could be the BEST THING that has EVER happened before.

And of course, regardless of all else..recruit recruit recruit!

So....forget about the YTB "Franchise" Scare Tactics. Better yet, IF YOU ARE NOT IN YTB, this is a GREAT TIME to consider JOINING.

YTB IS ON ITS WAY TO BECOMING A BILLION DOLLAR COMPANY! Our founders, Coach J. Lloyd Tomer, Scott Tomer and J.Kim Sorensen have said that YTB will be the largest travel company in the world. We're on our way to making this a reality. So the fear mongering...we're not buying it, and believe it or not, many if not most of us ARE NOT coming to join your "other travel MLM" company.

Funny, but when the TTAs say we are not "scared" of YTB, they all say we really are. And now it seems that YTB is saying that they are not scared of the "other MLM" but by their logic...they must be!

If I were an RTA, I would be VERY concerned. The move to a franchise is only going to deplete your wallet some more. Remember, the wallet--the piece of leather with an exit only when it comes to YTB?

YTB's Marching Orders To The Reps

The following letter of clarification and talking points was issued last week and immediately posted on hundreds of blogs and recruiting sites to explain the concept of franchising as it applies to YTB. While some people see this letter as complete, all encompassing, and encouraging; I find it the opposite. It is full of rhetoric and vague promises of a better life to come. I have a good idea as to why franchising is on the table now and I will be posting about that in a few days. Rather than interject my comments, I have put in "footnotes" for some areas that should be of concern to existing Reps and RTAs, potential Reps and RTAs, and the travel indiustry in general.

DATE: July 17, 2008

TO: Directors

FROM: Scott Tomer, CEO

RE: Franchise Press Release

I realize that many of you want more information about our July 14th announcement of the potential use of a franchise model at YTB.

While there are some things we are unable to comment on at this time, the intention of this letter is to answer many of the questions posed by our Reps and RTAs. I also want to provide you with correct information regarding the rumors, misrepresentations and untruths being circulated on the Internet.

But first, let’s talk a little history. Our goal from day one has been to become the world’s largest Internet travel company. In 2007 we were recognized as the 26th largest seller of travel in America and we are in the top 10 of those that are Internet based. While we are delighted with these results, we believe the franchise model will enable even faster growth. (1)

Here are some important points for you to know and remember.

The founders of YTB learned direct sales from Art Williams and built one of the largest

organizations in his company. We know how to build a successful sales force that will stand the test of time and the facts supporting this claim are easy to substantiate. 27 years later, my brother still operates a very successful business inside what is now known as Primerica Financial Services. (2)

We know how to recruit, build a sales force and sell products and services using the direct sales or network marketing approach. We are convinced this is the best marketing system ever created and we are ABSOLUTELY COMMITTED to continuing the use of this system with YTB. (3)

While there will be changes to the process as it relates to the sale of franchises, the downline genealogy and network marketing division will remain intact.

People may question our decision but no one can question our commitment to this industry or our people. Many factors, none more important than the protection of our Reps and RTAs futures, and many months of due diligence preceded our July 14th announcement. I’d like to share some of our thoughts with you.

Our commitment to becoming a world class travel company will be supported in the franchise system with additional tools and training for those who choose to actively pursue the travel business. The operations manual available to franchisees will provide details of the critical aspects of how to successfully operate their franchise. (4)

We believe a franchise model of our existing business will be easier to comprehend and more readily accepted by the general public. Since franchising is recognized as a traditional business model in virtually all developed countries, YTB’s timeline for global expansion will be accelerated. (5)

Additionally, franchising will allow us to rapidly diversify the products and services

offered by our franchisees. This will enable YTB to more quickly attain our goal of becoming a major distribution channel for products and services sold in the U.S. and abroad. (6)

Now let’s discuss how this will affect our existing RTAs. We anticipate everything that currently exists for RTAs will be in the franchise model and any additional products offered through the franchise will be available to RTAs should they elect to become franchisees. (7)

We also anticipate providing favorable terms to those RTAs who convert to the franchise model although we have not decided on those details as of this date. If RTAs elect not to become franchisees, they will be able to continue with no change to their status with all income opportunities and privileges they currently enjoy. (8)

I acknowledge outsiders will question this decision. We’ve been questioned before. Many so called industry experts doubted our ability to sell travel, but they can’t argue with the fact that we sold $414 million of it last year. (9)

We became a publicly traded company in 2004 and the skeptics said we would never make it.People said we were crazy to introduce a Reps ‘Bill of Rights’ at the 2005 ‘Your Time to Build’ national convention. It was unheard of in our industry. No one had ever guaranteed earnings for its Reps prior to the 2006 ‘Business of Champions’ YTB convention, but that didn’t stop us from introducing the Success from Home Magazine program with its $6,000 Guarantee. We became members of the Direct Sales Association in 2007 and added the First Amendment to the Bill of Rights’ at the ‘Cleared for Take Off’ National Convention to the dismay of our detractors. (10)

We’ve never asked nor do I care about the opinion of our competitors and skeptics. Let them say what they will. So what if they don’t agree with what we do. While it disturbs me that they make inaccurate, deceitful, slanderous and outright fraudulent statements about YTB in an attempt to recruit people, I refuse to respond. (11)

What I do know is this. YTB is responsible for more travel sales through YTB Travel Network than all of the other network marketing companies selling travel combined. I stand on our record of Rep and RTA protections and challenge any of them to step up and compete.

We’re building a company for the ages and I am proud to be in business with you.

YourTravelBiz.com.

APPROVED FRANCHISE STATEMENTS

For the RTA:

- We anticipate everything that currently exists for RTAs will be in the franchise model.

- Any additional products offered in the franchise model will be available to RTAs

should they elect to become franchisees.

- We anticipate providing favorable terms to those RTAs who convert to the franchise

model although we have not decided on the details.

- If RTAs elect not to become franchisees, they can continue with no changes to their

status with all income opportunities and privileges they currently enjoy.

- An Operations Manual will detail the critical aspects of how to successfully operate the franchise (not yet approved).

For the Rep:

- While there will be changes to the process related to the sale of franchises, the downline genealogy and network marketing division will remain intact.

General Statements:

- We believe a franchise model of our existing business will be easier to comprehend and more readily accepted by the general public.

- Our commitment to becoming a world class travel company will be supported in the franchise system with additional tools and training for those who choose to actively pursue the travel business.

- Franchising will allow YTB to diversify the products and services offered by its franchisees more quickly.

- Since franchising is recognized as a traditional business model in almost every country, YTB’s timeline for global expansion will be accelerated.

- Franchising will enable YTB to rapidly attain its goal of becoming a major distribution channel for products and services sold in the US and abroad.

1. Nowhere in this letter does it say how franchising will affect that growth.
2. How does the success of Scott Tomer's brother in Primerica (a struggling entity as it is) have any impact on the success of YTB?
3. If they are convinced that network marketing is the "best marketing system ever created", why the switch?
4. This tells me that the training to date has not been adequate enough to market YTB as a "world class" travel company.
5. While franchising is certainly more accedpted than MLM, I thought the whole principle behind YTB was to not rely on any public conception, but to utilize the market of friends and family. To date, the global expansion has been met with resistance in Canada and essentially failure in Bermuda and the Bahamas.
   
6. Curiously absent from this paragraph is any mention of travel. Does this model now include other products on top of cars and flowerrs and camping gear? Is this new franchise looking to model after Market America?
7. This essentially advises the RTAs that there will be additional ongoing monthly expenses in order to poerate as a franchise. Can the average RTA who earned $120 in commissions last year afford to pay any more money to YTB?
8. Like (7), this is advising the existing RTAs that there indeed will be a franchise fee associated with this move on top of the $500 already paid to become an RTA. While it is undecided at this point, my best guess would be $5000 for new and $2500 for existing financed over a year interest free. What is curious is that they say if they decline to franchise, they will still maintain what they have. Is YTB a franchise or an MLM? They need to decide because I am not sure you can have it both ways. Or are they simply saying they will keep the website alive for $49.99 a month?
9. Sure we can. There was no real substantiation of your sales in 2006 and a partial substantiation in 2007. While Scott claims $414 million, it needs to be noted that according to Travel Weekly, $203M of that was not by the RTAs.
10. It also needs to be noted that they became public by a reverse merger which required no SEC oversight. And once they took over, they were delisted for irregular accounting practices which have recently been corrected to allow them to be relisted on the OTC. Ast to the Bill of Rights and other documents, they are essentially worthless once the company is sold or liquidates. Although many presentations will tell you that YTB registers these documents with the Attorney Generals of "every state", they are mere marketing ploys.
11. OK, the comment about inaccurate, deceitful, slanderous and outright fraudulent statements to recruit really strikes me as funny. I would like to see what Dr. Seligman thinks about that!
    

New YTB Class: Protecting The Environment 101

Apparently, there might be some news coverage after all. from the Earth First website:

UPDATE - The $6 million styrofoam statue of liberty commissioned by YTB for their convention this August is going to meet some resistance from environmentalists in the St. Louis, Missouri area. YTB claims that the statue is a ‘tribute to the troops’, but the mind-boggling cost paid for this polluting nightmare could have been put to far better use, perhaps going directly to the troops and their families.

The protest rally will be held at the YTB convention, August 6th-10th, at the Edward Jones Dome. Contact the person who posted the Craigslist notice for more info.

If you’re in the St. Louis area and plan to attend, please take photos and contact us! For more info on the statue of liberty, check out our previous post - Eco Fail: Giant $6 Million Styrofoam Statue of Liberty One Big Polluting Mess

And from a Craigslist posting:

Protest Rally @ YTB Convention (Edward Jones Dome) Reply to: pers-764189392@craigslist.org Date: 2008-07-21, 3:58PM CDT
Protest rally @ YTB Convention, August 6-10.
Edward Jones Dome and their HUGE foam statue costing $6 MILLION. This is supposed to be a tribute to our troops. Better if YTB donated that $6 million to the soldiers and/or their families.
http://earthfirst.com/eco-fail-giant-6m-foam-statue-of-liberty-a-big-polluting-mess/
http://www.tripso.com/today/nothing-says-freedom-like-25-tons-of-styrofoam-or-does-it/
http://digg.com/environment/Eco_Fail_Giant_6M_Foam_Statue_of_Liberty_a_Polluting_Mess http://www.huffingtonpost.com/2008/07/17/styrofoam-statue-of-liber_n_113426.html

Oh, Behave!

Not only did YTB just experience the lowest week of recruiting since at least October of 2007*, apparently the kids are misbehaving again:

Growing your business is crucial to your success, and YTB does its best to assist. There are situations, however, where aggressively sharing the business is inappropriate, and YTB asks you to refrain. One such situation is any location where prospects are on vacation, especially on cruise ships. Another is approaching a travel supplier for any reason other than booking travel. Never try to recruit a supplier's employees when calling to book travel!

It is also inappropriate to solicit at travel trade shows. (An exception is when this activity is confined to a booth rented by an RTA.) Trade shows are educational events and the other attendees are peers, not prospects. In fact, this activity is strictly prohibited and violators may be asked to leave. When RTAs breach travel industry protocol, that behavior endangers YTB's relationships with suppliers and negatively effects the industry's perception of YTB - and its RTAs.

Protect your reputation and your business: Be judicious about your marketing practices. Remember, you can share with everyone, you just can't share everywhere!

Come on Coach, you said the suppliers love us! Why wouldn't they like to sign up? I mean you tried to get Dickinson didn't you?

*According to a worksheet provided by our own Travelingman, this week's 131 leadership bonuses was the lowest in a LONG time. I wonder what the number of people still in YTB actually is?

YTB Pisses Off Environmentalists

Well, first it was the travel industry and now it appears YTB has pissed off a much more, shall we say...enthusiastic group. The environmentalists.

A blog reader sent me this link to an EarthFirst blog entry called Eco-Fail: Giant $6M Foam Statue of Liberty a Big Polluting Mess. And according to their article, YTB is now on their radar!

Seems the Huffington Post is also picking it up as well!

And here too!

Perhaps it’s a fitting tribute to a country that wore the ‘Biggest Polluter’ crown for so long: a 130-foot, 50,000-lb replica of the Statue of Liberty, made entirely of foam and sprayed-on plastic. The company that commissioned the statue, however, wasn’t trying to be ironic or make a point. They really thought it was a good idea to construct this thing – which is only 13 feet shorter than the original Statue of Liberty – made up of what the Sierra Club calls ‘the ultimate waste product’......

The unveiling of YTB’s giant statue of liberty is meant to get them plenty of publicity before their convention. Their goal is to be the world’s biggest travel company by 2011. Let’s give them negative publicity instead: YTB is now on our radar as a foe of the environment. They’ve already got a bad rep for being a rip-off pyramid scheme, so it’s not like many people will be surprised.

Man if ELF or Greenpeace gets a hold of this, watch out. YTB may make national news yet, but perhaps not for the reasons they had hoped.

Scott Is Famous!

By now, I am sure many have seen this video about Scott's run for the presidency. Kudos to Doug for finding the site to do it!


And it is funny, because it appears that Scott is getting all sorts of accolades of late. First he was leading the Wall Street Darling, then a Presidential bid, and now the cover of a magazine

This Week's Top 5

Wanna know what everyone is reading? Here are the week's top 5 blog posts:

5. "Fascination" Recruiting
4. If True, This Is Unconscionable
3. More Lies Inconsistencies
2. A Different Spin On The Franchise Model
and the number one blog post of the week........

1.YTB Says "Thank You" To The RTAs

And, don't forget to rate these entries. You can vote with the little stars right below the SHARE icon. And, if you are in any social networking sites, be sure to share our posts with your network using the SHARE button.

If True, This Is Unconscionable

An agent in the Dallas market recounted this story in a forum earlier this week. Words cannot express the disgust at this.

I had a gentleman walk into the office the other day and sit at my desk. As soon as he started talking to me, it was evident that he was mentally challenged. I'd say he was at a 6 or 7 year old mentally. He had on a YTB shirt and started asking me about how he could book a group on a cruise so he could go for free. I talked to him for at least 1/2 hour and found out that he had paid the fee to be an agent with YTB, paid his website fees and couldn't understand why he wasn't making any money from it. He said he was promised that he would make money.

He works as a part time bagger at a local grocery store and lives in a group home environment. He doesn't even own his own computer.

I was sickened that someone would take advantage of a person like this. It makes me want to find whoever sold him the package and beat the snot out of them. Anyway, thanks for letting me vent.

Note to Rod: I know there are no names and it was a posted in a forum so I do not know the author,as with most things with YTB, it would not surprise me if it were true. However, all I can definitively say is that it was indeed posted on a travel forum and if true, it is despicable.

A Different Spin On The Franchise Model

There was an interesting post on another blog that currently focus on recruiting for YTB that offered a translation to the press release about YTB moving to a franchise model. Apparently, the members of his team are incapable of making their own assesment of the press release and needed the "translation" to comprehend. Or maybe the author needed the blog entry to retain his downline. The release is the release and we shall see what will come. But to illustrate that there are two sides to every story, I offer my own emphasis (bold) and comments (yellow) whcih paints a decidedly different picture.

A word of caution to anyone in YTB or contemplating joining YTB. Please do not count the author of that blog as an authority. While he apparently has seen some success with YTB, the fact remains that after 3+ years he has still not made the director level and has not earned a binus in many many months. While I do not know, I find it hard to believe that the senior management of YTB is consulting with this RTA/Rep about the future direction of the business. That notion is ludicrous. Furthermore, if you read the blog over the past few weeks, he has told of his inside information about the news being quiet leading up to the convention. Then admits he was wrong. And then goes to blame the media for seeking out YTB and Lady Liberty as the reason he was wrong. Well, the media "interest" was due to a press release sent out; which we all know is designed to gain--media interest. Other items in the past few weeks have included such claims and fantasies as

Can you imagine…Coach Tomer, part owner of the Pittsburgh Steelers? Okay, hard to wrap, even for me after all these years of stability in this franchise, but like Cowher in 1992 and now Tomlin who’s now in his sophomore year, I can adapt.....

UPS will take advantage of being the “Official Transporter” of Lady Liberty from Lake County to St. Louis with a 3 mile long caravan of 80 UPS trucks the first week in August........

There is already word of all three Major networks having press boxes at the Convention along with more than 20,000 Reps and RTA’s.

Again, I am not the insider he feels he is, but I am not holding my breath on The Coach buying the Steelers, UPS being the sponsor of a convention prop, or Katie Couric reporting live from the YTB Convention.

But onto the press release. I encourage people to read it and make their own determination, but this will show the other side of the coin with a spin less favorable to thoise already in the program.

WOOD RIVER, Ill., July 15 /PRNewswire-FirstCall/ -- YTB International, Inc. (OTC Bulletin Board: YTBLA) ('YTB' or the 'Company'), a provider of Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Bermuda, the Bahamas, and Canada, today announced that the Company is contemplating the replacement of its referring travel agent ('RTA') business model (not supplementing, replacing) with the implementation of a franchise operating system, potentially in 2009. The Company expects that a franchising model, if adopted, would facilitate the Company's expansion into additional markets (perhaps not travel?) by providing more comprehensive training (this is amusing, but if true, it certainly comes with more cost as the current "training"is all on the backs of the suppliers and their product reviews) and a new proprietary e-commerce platform.

Details regarding price, product offerings and the conversion plan are all under consideration, but the Company anticipates that its existing RTA base would be treated favorably (favorably is a very vague word--favorably to whom?) under its forthcoming proposal. Scott Tomer, Chief Executive Officer of YTB International, Inc. commented, 'We have retained iFranchise of Chicago to consult in the planning and development of the franchise model and are excited about the potential impact on YTB's business.' If a franchising model is adopted, its distribution is expected to be managed by (please note there is no mention of the IMRs--just managed by YTB.com) the current marketing arm of the Company, YourTravelBiz.com, also known as YTB.com

The iFranchise Group brings decades of experience to franchise development and implementation efforts. Their consultants have worked with over 30 Fortune 2000 companies and with 98 of the world's top 200 franchisors as rated by Franchise Times magazine. iFranchise has worked with clients such as Blockbuster Video, Ace Hardware, and McDonald's.

About YTB International

Recognized as the 26th largest seller of travel in the U.S. for travel sales reported in 2007 by Travel Weekly, YTB International, Inc. provides Internet-based travel booking services for home-based independent representatives in the United States, Puerto Rico, the Bahamas, Canada, Bermuda, and the U.S. Virgin Islands.

The Company operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com focuses on marketing online travel websites through a nationwide network of independent business people, known as 'Reps.' YTB Travel Network establishes and maintains travel vendor relationships, processes travel transactions of online travel agents and affiliates, collects travel commissions and pays sales commissions. Each RTA directs consumers to the YTB Internet-based travel website. The REZconnect Technologies division operates as a travel vendor relationship management company and offers franchises of brick and mortar travel agencies. For more information, visit http://www.ytbi.com/investor.

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.

SOURCE YTB International, Inc.

What I Learned Today

It is amazing what one can learn sometimes. This afternoon, I was perfectly content in reviewing final docs and invoices for a group on the Freedom of the Seas and I was interrupted by a YTB Rep/RTA who just needed to set me straight about YTB.  He claims he knows nothign about me or my feelings about YTB So, why is he calling? Was this just a random act of kindness?  So I indulged for a bit.

Rep/RTA Ben Pittman from Pawleys Island, SC set me straight about the following:

• YTB has a total of 140,000 Reps AND RTAs, contrary to what the financial reports say.
• He is an average RTA and has sold $20K in the last 4 months and is on target to do $100K this year. Math must not be a strong point, but if all the RTAs did $20K in sales that will put YTB at $2.6 Billion for the year. Not in this lifetime.
• YTB will be the biggest travel agency in the US by 2010.
• When confronted about what I was told in recruiting meetings, I was told that is not what they are told to say.Hmm, imagine that!
• When I explained Rod said he had to pay to get back into YTB he said it was policy to allow it for free unless they were kicked out for a policy violation. If you violated the policy, why woudl they want you back anyhow? Oh yeah, the $500.
• When I explained that no travel training went on in the CRTA class, he explained that CRTA training was just an overview of the company and the training is done weekly on phone and webinars. Hmm, why is it called Certified Referring Travel Agent Training? And why is it instructed by Reps and not experts in the industry or with the suppliers?
• He also told me that infusing the industry with untrained people was the plan all along for YTB. He said he has had lunch with Coach at his house and the idea all along was to get the industry flooded with agents and then train them later after YTB was a recognized leader. He also said that very soon YTB will be showing income from travel to be near 60%.
• It was explained to me how Christian the leaders are and that he knows that they would never do anything to hurt the RTAs.
• YTB has complete control over the Reps and RTAs and will throw them out if they do not follow policy.
• He explained that I misread the press release about the franchising. They are just changing the name so the industry will accept them. The Reps will still be selling the program it will just be called a franchise now.
• I learned that the IATAN issue is a temporary suspension, but they don't need IATAN.
• I learned that they do not need Royal Caribbean, but also learned that RCCL has been back at their headquarters several times saying that they made a mistake and want YTB's business back.

• Learned that i his opinion, YTB was not a "real" travel company till Travelocit came to them asking if they could run the back end for them.
  

Ben said he had been in network marketing since the 70s and retired and then came out of retirement for YTB. He and his wife work the business.  After about 20 minutes of indulgence, I explained that I needed to get some work done and the conversation turned a bit south. I explained that we needed to agree to disagree and that I really did not have the time to discuss it any further. At that point, he told me that it was him that was donating his valueable time to inform me of the truth. I tried to say I was going to hang up, but the last I heard before I hung up was somethign about good Christians and people in church....

But yes, this does once again prove the point that YTB has ZERO control over their Reps and RTAs. How much of what he told me is false or misleading?  Rod--so there you have a name...he exists, and I have his number on my caller ID if you want to call him!

PS.
I almost forgot, we got into the  YTB is as cheap as or cheaper than Travelocity. Opened up two tabs and did the side by side and guess what? YTB lost on all accounts. They were close, but not as cheap or cheaper. I was told that was not a fair comparison because I should know how fast things change in the travel industry and that tomorrow YTB woudl be cheaper!

"Fascination" Recruiting

Well on most cruises, the lines will not allow you to recruit. But I guess when you charter the whole ship, all bets are off. Here is the blow by blow of the pastor recruitment effort on the recent sailing of Carnival's Fascination:

Coach provided a seminar for the pastors on "increasing church attendance". He explained that this business was built on biblical principles and they can be used to build a church/ministry as well.Get three people who have the same mindset as you and pour your heart, life and training into them. Have them get three people and repeat that process. Continue that method. Your church and your business will grow tremendously.Coach asked for pastors to give remarks. You should have seen the line of pastors waiting to give remarks (or preach...lol). They were so touched that a founder of a corporation would be so kind as to give them a FREE vacation. So many talked about him having the heart of a shepherd, being touched by the Holy Spirit to know they were in the right place and this business being anointed to change many lives. One pastor and his wife indicated they were going to be a part of the company but had no money at this time. Another pastor came behind them and started an offering to raise the money for them to get started!! I tell you it was just awesome! I can't tell you the number of people who were in tears. There were over 1000 people in that seminar.

If you would like to see a real photo from this cruise, you can view it here. In another forum, there was an analogy of YTB Reps to being "pimps". As to be expected, some took offense, but when I look at this picture, one does need to wonder.

YTB Says Thank You To The RTAs

In a stunning, yet not surprising move, YTB announced that the RTA program will be going away. As both Arnie Weissmann and I had said, YTB cannot survive in travel as an MLM. Maybe Scott has finally determined that MLM and travel is indeed a bad mix!

But the question remains, what about the millions and millions of dollars paid annually by the RTAs to YTB? I guess the new legitimate company was indeed founded on the backs of the RTAs.

On July 15, 2008, Mr. Scott Tomer, Chief Executive Officer of YTB International, Inc. (the "Company"), announced that the Company is contemplating the replacement of its referring travel agent ("RTA") business model with the implementation of a franchise operating system, potentially in 2009. The Company expects that a franchising model, if adopted, would facilitate the Company's expansion into additional markets by providing more comprehensive training and a new proprietary e-commerce platform. Details regarding price, product offerings and the conversion plan are all under consideration, but the Company anticipates that its existing RTA base would be treated favorably under its forthcoming proposal. If a franchising model is adopted, its distribution is expected to be managed by subsidiary and current marketing arm of the Company, YourTravelBiz.com, also known as YTB.com.

The information in this report shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and shall not be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filings, except as shall be expressly set forth by specific reference in such a filing.

Another TTA Speaks

I have never met or spoken with Danny Borg, but we seem to be on the same page. In a recent letter to Travel Weekly, Danny recounts his most recent run-ins with the YTB crowd.

Whenever YTB comes a-knockin', 30-year veteran starts a-runnin'

I own a brick and mortar agency and just returned from a seminar at sea on Azamara Cruises. One night after dinner I was stopped by a man on the cruise who started telling me that he liked to make people millionaires.

He went on to say that he had been in the travel business for 30 years and explained that he is now with a company that is going to take over the entire travel business by 2010. He told me that his company was going to put every travel agency out of business.

I asked him if he had an office, and he explained to me that the beauty of the business is that you don't need an office or any knowledge of travel. The only thing you do is give people your business card; they go online and book their own trip, and you get money for it.

I asked him what happens when he's called by a customer with a problem. He explained that he does not talk to customers. He told me the customers deal with one of the agents at YTB if there is a problem.

He then started to tell me how I could have my own website and get free travel benefits, and all I had to do was give him $500. He failed to mention the monthly fee for the website.

He then asked what I did for a living, and when I told him I owned one of the travel agencies he was planning to put out of business, he continued to go on about how I should sign up with him. Finally his wife told him that he should stop trying to pitch this to me, as I was a travel agent.

I didn't think about this guy again until four days after I got home, and a man walked into my office in shorts and asked me if I'd be interested in tripling my sales. This man told me he was with YTB and that he could set me up with a website that was more powerful and better than the Expedias and Travelocities out there now. All this for just $500 and a small monthly fee for the website.

I told him that I really thought that sharing my commission with YTB was not in my best interest and thanked him for his time.

I must say that after being in the travel business for more than 30 years, I have seen a lot of different business models. When getting that $500 is more important than taking care of my customers, it will be a sad day. I yearn for a time when travel agents can be looked at as professionals. Every time that I run across someone who knows nothing about the business, but has a business card that he paid for with the belief that he was going to get free cruises and hotel stays and airline tickets, it makes me sick to my stomach.

I commend the travel companies that have taken a stand and do not allow bookings from YTB, I will do everything possible to support those companies.

Danny Borg
High Performance Cruise & Travel
South Daytona, FL

Now this is strange considering it was an Azamara ship. Did he sneak through? Did YTB find a back door into RCI? What about the contention that YTB was not looking to compete against traditional travel agencies? What happened to the order from Coach about not recruiting?

Maybe the Coach winked or used "quotation marks" when he told everyone the rules.

(Reprinted in its entirety with permission of author)

More Lies Inconsistencies!

I follow some of the MLM blogs and one of my points over the past year has been that they will say anything and do anything to get the recruit. Truth be damned. Now granted, a lot of times, the person may be simply repeating a lie told by someone else. How many times have we heard that YTB has "already sold" a billion/half billion dollars this year? How many times have we been told that the Reps are making 5 figure salaries per month?

A while back, a Rep/RTA had perpetuated a mistruth regarding an acquisition of a company. After the storm blew over (no one seemed to like my choice of words) it became clear that she did not create the mistruth, but rather just perpetuated it. That is probably a good defense that woudl hold up.

But now, the same Rep/RTA is making some more claims that are, how do I say this delicately, inconsistent with fact.

It appears that tis Rep/RTA joined YTB in October 2007. Judging from her ID Number (86,869) and comnparing it to Doug Baughknight's (24,635), this makes sense.

From the blog:

Our greatest successes in YTB came initially from our warm market, but by our fifth month in the business, we had begun marketing heavily using fliers and postcards and had started a small amount if marketing online... all that resulted in our earning our very first $1,000 bonus! Since then we've had lots of other people join our business from all around the USA, have earned additional bonuses and have had opportunities to take advantage of some of the great travel perks.

Oh my. Now it seems that the first $1000 bonus was received 5 months into the program. And the YTB reports support that she earned a $1000 bonus the week of March 28, 2008. But here is where it get's a little gray. She says that this was her very first bonus. She neglects to say that it was her ONLY bonus. As a matter of fact, she goes on to say that she has earned "additional bonuses". But that is not really supported by the YTB Biz Report.

Earning one bonus indicates that there are between 6 and 11 people in the downline. And because there have been no firther bonuses since March 2008 (4 months) it seems like the downline is not too effective--otherwise there would have been more bonuses.

What is amusing is the comment that when she was initially recruited into YTB her reaction was that she was " unwilling to invest $500 in another business opportunity". Seems like "business opportunities" may be a way of life for this Rep/RTA. Well, maybe failed business opportunities.

There are some other inconsistencies as well--a summer 2007 FAM at Sandals for $99. While the merits of disclosing that information on a public blog deserves an entirely different entry; I don't believe she was even in YTB last summer. And if she was, it makes her "earnings" all that much less impressive. Was she at Sandals? Who knows. Did she pay $99 for it? Who knows. Is this just more marketing fluff to entice people to part with $500 to join YTB? Who knows!

So, here we are almost a year into her career with YTB and undoubtedly, she has earned some money. $1000 in bonuses and perhaps a small pittance in travel commissions. The outlay was at least $500 and a few months at $50.

Doesn't seem to be much of an "opportunity to me". But I do wonder about these "inconsistencies" in the story. It is a funny thing about lying inconsistencies is that it is much easier to remember the truth!


NOTE: Apparently Regina has earned two bonuses, the one mentioned above and one more prior to that in late January 2007. Therefore she has between 12 and and 18 on her team.