A Virtual High Five To Pilgrim Tours

While Pilgrim Tours is a relatively small company specializing in pilgrimages for the past 20 years, in November 2007, they established a policy regarding the card mills and specifically name YTB and Global Travel International. We have alluded to this policy in this blog in the past, but never re-published it.

So, just to be clear, here is one more company that refuses to deal with YTB or GTI and I applaud Pilgrim Tours for their insight and for their commitment to professionalism in the travel industry. While it has taken a while for supplier to come around, they slowly are and I am sure that Pilgrim Tours is pleased to be included with the likes of IATAN, Royal Caribbean Cruise Lines, Perillo Tours, Azamara Cruise Lines, Qantas Vacations, Celebrity Cruise Lines, A Plus Tours, and Norwegian Cruise Lines. Slowly the suppliers are coming around to the realization that doing business with an MLM is bad business. Granted, it is business, but the suppliers are beginning to see that it is not the business they want!  To Pilgrim Tours, I say "THANK YOU!"

Pilgrim is getting an alarming number of calls from prospective travel agents who have purchased memberships and/or travel cards from companies such as YTB, Global Travel International, etc..  They use the company IATA number from the agency in order to get a discount or rebate on their own travel.  We also have travel agencies who encourage clients to do all the research on a tour, choose the tour they want and then call their agency for the reservation.  If the client has already done the research, the agency will then rebate some of the commission back to the client.

Pilgrim's classifies the above situations as unethical practices that undermine the travel agency commission system.  We will not support these practices and discourage honest people from buying into any form of this activity.

Does Pilgrim Pay Referral Commission?
Pilgrim Tours pays commissions to travel agents who refer clients to our product line and help the client through the quotation and booking procedure. Commissions are normally paid only on our Christian Retail Tour Products.  We also give commissions and small group net fares to tour operators and approved CLIA agencies that wish to promote our Christian Tour products.  It is our policy to not give commissions to agencies if the client has first been quoted by a Pilgrim agent.  We appreciate very much the work that professional agents do if they initially deal with clients, but we only pay commission under this condition - no exceptions.  Pilgrim also does not pay commission on clergy or industry discounted fares.

In order to receive commissions from Pilgrim Tours, your agency must be a valid travel agency that is not involved in rebating in any form.  If you are interested in applying for our "Qualified Agency" status, please fill out the form at the following link.  Click Here

A Statue Update

Well, it appears that the Fake Statue of Liberty might have a home...well half of her! From the Post Tribune of Northwest Indiana:

She was touted on eBay recently as the largest replica of the Statue of Liberty ever produced.

And still no one wanted her.

Even before her 15 minutes of fame last fall for a convention in St. Louis, the 132-foot, 50,000-pound foam and plastic statue already had been scorned by environmentalists as "the ultimate waste product."

Since then she's been rejected twice, first, by Lake County as a memorial to soldiers and law enforcement.

Then, Hammond thought it wanted her to stand proudly on Boy Scout Island in Wolf Lake, but a study revealed that she wasn't strong enough to withstand the weather.

Now, the Lady Liberty knock-off -- the faux-leather Gucci bag of Ellis Island -- languishes in a Hammond warehouse.

But Miss Liberty, or at least part of her, may soon find a temporary home as part of one of the annual exhibits at the South Shore Convention and Visitors Authority.

Hammond and authority officials are in "the very early states of discussion" about using the statue's head or torso, and torch for a convention and visitors display.

Hey but if you read the article, if Chicago gets the 2016 Olympics, the FLL might be a tourist draw. Somewhat ironic that YTB's Beijing Olympic stunt failed miserably, and now another of their failures might ultimately be an Olympic draw! Oh the irony!

And for those that missed out on the bidding on eBay (or those that doubted it was "that" statue, please click here for the listing and all the full color photos!

See, THIS Is What I Am Talking About

In the comments from a post a few days ago, I was discussing how the bulk of the Reps with YTB will simply exaggerate or outright lie to get the sale.

For being such an "ethical" and "Christian" company one might think that stuff does not happen. But it does. Even our own Firemedic is lying again. Remember he spoke with forked tongue a while back after he claimed to never "diss" the competition and then created a blog for that sole purpose?

Well, a few days ago, he was on here lying about ditching YTB for Traverus. He even took his blog down and changed the title to "Traverus Rocks". Well, not many people believed him, but just to give the benefit of the doubt, I did some checking and as suspected, he is a liar. I know how some bloggers like to see documentation for claims, so I offer the following:

From:
Date: Thu, Feb 12, 2009 at 5:43 PM
Subject: Status Change on Your Trouble Ticket, ID: 36855
To: xxxxxxxx@gmail.com



Trouble Ticket ID: 3X8XX
Description: New TraVerus Member

-------------------------------------------------------

Please be advised that the status on your trouble ticket
has been changed from Submitted to Closed
with the following comment:
-------------------------------------------------------
Comment: XXXXX,

I am not showing a Conrad that has signed up recently at all in the system.

thank you,
Ginger

To reply to this comment directly, please click on the link below:

http://www.exdesk.com/TraVerusTravel/index.cfm?addcomment=yes
-------------------------------------------------------
Status changed by: Ginger Johnson
-------------------------------------------------------

Regards,
noreply@traverus.com
---

Thank you!

TraVerus Support Team

Now come on, what would Coach say? What happened to the old "if it ain't right don;t say it" line he loves to use? Firemedic, this is no way to get a chance to sit on his lap like Doug does. This will never get you invited to the mansion owned by John Simmons. All this does is move you up one more notch in your quest to be the valedictorian of the Dumbasses Den!

Traverus Takes Some Heat

Travel Agent magazine is dishing some dirt on Traverus and rightfully questions if they have all the accreditations as they claim or are just piggybacking on someone else's numbers. (I am not taking odds on that bet)

For travel professionals, TraVerus’ offer can be quickly identified as a multilevel network-marketing scheme offering rewards for building the network’s membership as well as for travel sales. But to the unwary consumer the offer appears a legitimate business opportunity - and in an economic downturn a possible source of added income. Its doubtful that the average consumer is aware of the bankruptcy of Joystar or the allegations against YTB by the attorney generals of California and Illinois.

And when Travel Agent tried to contact them:

The presidents phone number is a pre-recorded message.

No Need For The Sunday Comics

YTB revealed all sorts of information to their TSOs on their weekly one sided conference call.

1. Effective March 1, 2009, there will be an RTA Stock Option Program (OMG--you mean an opportunity to earn the valuable YTBLA? I wonder what needs to be done to earn the options and exercise them? Guess we will need to wait till the SEC filing to know.)
2. Coach advised everyone that YTB is an anomaly in the travel business. No one can understand how they get 20,000 people to pay to go to their convention when the traditional travel agents pay for their members to attend. (Dammit, my copy of this announcement must have got hung up in my spam folder.)
3. Every meeting the travel industry starts with the words "YTB". (Coach needs to go to a real travel meeting)
4. At these meetings, the main topic of discussion is how YTB was able to put that many brick and mortar agencies out of business.(Good question fantasy. But Scott says they are not competing with brick and mortar. Hmm.)
5. All of the travel companies are laying off people left and right. YTB is going after these people to bring them into our company.(Well, there have been some layoffs, but usually they are the dead wood in an organization--good growth plan there Coach...hire more deadwood.)
6. By 2020, YTB will "own" the travel industry. (Seems like he just pushed a goal back by a decade. How is that "billion in travel sold in 2008" coming along?)
7. YTB had the most successful Red Carpet Day last week with almost a thousand people there. (But later he said that 600 of them were Directors and Coach's Corner Members, so how many potential recruits were actually there? Ask Kim. No wait that will never work, he doesn't know how many RTAs he has.)
8. In 2020, YTB will "own" the distribution system on the Internet. (I imagine it was all he could do to stop from breaking out in him Dr. Evil voice).
9. At the Directors and Coach's Corner meeting they planned to break out in 20 groups of 20 (see the theme here..2020) but because they had so many it was 20 groups of 30 to discuss how these people want to see YTB become the owner of the distribution system in 2020. (Well, first of all, invite the right number of people and learn how to do math. But why are you asking these people? The only thing they know how to do is recruit and point to the website. Some may know how to install stereos as well.)
   
10. YTB's cash position has never been better. We have millions.(We will need to wait and see on that one; but I hope it is at least $125 million.)
11. YTB is growing so fast right now that in the future, YTB will be studied at Harvard Law School. (Oops, now that's a Freudian slip if I ever heard one. And he is probably right.)
12. YTB does not sell travel, cars, and flowers. YTB sells hope and opportunity. The hope for a better day and the opportunity that a business will be there for them, YTB has that. (Till Jerry is done with them. And what about the meat, the clothing, and all the other stuff you sell?)
13. You HAVE to have 7 to 10 friends or relatives that NEED what YTB offers and you need to get recruiting like crazy. (There he goes again, recruit alienate all your friends and relatives so Coach can get his money.)
14. Coach wants to help everyone on the call be one of the 10,000 millionaires he will create but he cannot do it without each of you recruiting 7-10 people that need hope and opportunity. (Let's see, 10,000 people times 7 to 10 people, each at $500 and $50 a month..oops that is not nearly enough to make 10,000 millionaires, but that's OK, math is not the RTA's strong point, they will never figure it out.)
15. YTB can do more for the economy than Barack Obama's Economic Stimulus Bill. (No argument from me there. Most people will not see $104 from the bill; but they do stand a chance to earn that in YTB if they work hard and become one of the top earners. Oh and make sure your payments of $1100 are on time.)
16. When you run across someone that says they cannot afford YTB, how do you think that makes them feel? In this economy, it is the perfect time to join YTB--they need hope and opportunity and you can give it to them. (Coach, here's an idea, why not include a large jar of Vaseline when people sign up to recruit for you. It will make it that much less painful and you can find it in Aisle 19. And, you probably can earn a decent commission on that from your HUGE Aisle 19 downline.)
17. People are looking for hope, opportunity, trust, and something to believe in. YTB is it. (Somehow I think many will disagree with you--Ted Lindauer, Jerry Brown, the BBB, and the members of the Class Action.)
18. YTB's finances are built so solidly for the long run that it will be here for you, your kids, and your kids' kids. (Wow, with that many people involved, just how do you do that on $600K in cash according to your last SEC filing?)
    

What was amusing about this call, is that Coach kept referring to himself in the third person. Coach said this and Coach did that. Kind of interesting. I know that some folks will say I am exaggerating the contents of this call. But I encourage everyone to take a listen at one time. They are all essentially the same. Every Saturday at 12 noon Eastern you can call 641-594-7505 and then when prompted, enter 601340# to be connected. They are only a half hour and typically have a bunch of commercials as well, but these calls are almost as amusing as the Sunday comics.

I had an interesting email exchange from a current TSO after the call. He had a very good question. Instead of making 10,000 millionaires; why not make it the goal to make ALL of the people financially self sufficient? Wow, now there is a concept that will never cross their mind! 10,000 millionaires out of their potential base of 305,000 is only 3%. Well, that seems about right. BINGO--YTB only cares about the top 3% of their participants!

And yes, it appears that Doug is still so close to being a Director he can taste it! Personally I think it might be a bad batch of Kool Aid in Aisle 19 that is leaving an aftertaste! But hey, it's only been four years!

It's All In The Crowd You Hang Out With

Well, the image above is looking for criminals, and it seems we have found a doozie in Wood River!

Glenn and Starla Green were awarded the President's Award at the August 2008 YTB Convention in St. Louis. They are Level 2 Directors with YTB and Kim Sorensen, the apparent good judge of character that he is, awarded them the prestigous President's Award.

Fast forward to this week, YTB is promoting and encouraging attendance at the Millionaires Mindset Conference on February 21st in Dallas. If you want more details on this conference, you can visit their site, Millionaire Mindset Conference.

On the surface, this appears to be just another scheme organized by fellow Directors Dave and Marlis Funk to grab $10 a piece from unsuspecting RTAs. (Or maybe it is to pay for the fuel in their rolling YTBmobile.) I am not sure of the intent, but one thing is for sure with YTB. If you scratch the surface a little bit, you will always find the dirt.

Well, it seems that Glenn Green has plenty of it. Back in December of 2006, the Houston Press News did an expose on this Millionaire Mindset Conference. Glenn Green does not come into play until the bottom of page 4 when he threatens the reporter several times. One of the threats was to not investigate him. Well, as any good reporter would do, he investigated. And here's what he found:

Except the ten-year sentence for theft in 1990, according to Harris County Court records. Green was released after one year. According to an affidavit by a Texas Department of Public Safety officer, the theft worked like this: Green gave an accomplice an American Express card in Green's ex-wife's name. The accomplice charged multiple purchases of $49.99 at a Chevron station, when "in fact, no merchandise had been bought." The accomplice then gave the cash to Green. During April and May 1990, the charges exceeded $20,000.

At the time Green was popped for that crime, he was on probation for forgery for two earlier charges out of Brazos County, according to Texas Department of Criminal Justice spokeswoman Michelle Lyons. He was sentenced to ten years for those, which he served concurrently with the Harris County sentencing.

Also falling short of the Glenn Green Investigative Worthiness Standard was the ten years deferred adjudication in 1993 for fraudulent transfer of a motor vehicle. According to the investigating officer's notes, part of the case record in Harris County Court, Green bought and sold over a dozen cars, promising to pay off the leases, when he had no authorization from the lenders.

All but one of the 20 associated charges were dropped. He was also ordered to pay $31,233 in restitution

Harris County court records also show that the Houston Livestock Show and Rodeo sued Green and his wife, Starla, in 2002. The suit was for nonpayment of $107,000 Glenn and Starla bid on a champion steer and a grand champion barrow pig named Cowboy in the 1999 Rodeo auction.

"I know that the money spent here goes for a great cause," Green is quoted as saying in the Rodeo's press release.

Then Starla chimes in about the 17-year-old Brownfield Future Farmer of America who spent four hours a day after school tending to Cowboy: "[He's] very deserving. We were prepared to do what it took."

Everything, that is, except actually pay what they bid. A Harris County judge ordered the Greens to pay the full amount, plus legal fees.

Rodeo Vice President Leroy Shafer says the Greens never paid the money -- the largest debt of any one entity in the show's history. He says it was the first time in the Rodeo's history that a grand champion was involved in a bad purchase, and the first bad purchase of two champions in one year. (The highest bidder's money goes to whoever shows the animal, any charities the bidder earmarked money for, and the Rodeo's scholarship fund. Shafer says the Rodeo was able to pay the $25,000 promised to Cowboy's exhibitor, as well as the approximately $1,000 Green had earmarked for the Houston Women's Shelter.)

Green now works for a multilevel-marketing travel package company called Your Travel Biz.

Wow, Coach and Kim really take that Yale to Jail thing seriously. Penn State to State Penn. First there was Chris Paraldi, then Phil Piccolo and now this. This man has it all. I mean what more could YTB want in a Director. Someone whom they promote and encourage others to emulate. I wonder if all of the non-profit associations YTB is supposedly managing are aware that one of their directors stiffed a non-profit for over $100,000? Maybe in the interest of being transparent, they will add this to their "Facts" About YTB website!

Just to recap, here is the rap sheet on Glenn Green:

• Theft
• Forgery
• Fraudulent Transfer of Motor Vehicles
• Breach of Contract with a Non-Profit where he failed to pay then $107,000

NOTE: To all the Directors and Coach's Corner Members (and esteemed guests) currently in Wood River for the "Best Director's Meeting Ever"--watch your wallets!

MLM Bingo

How to play MLM Bingo - a fun game for all ages:

1. Print out and bring the MLM Bingo card to any meeting that you suspect may be intended to motivate you to join an MLM company, or excel at being an MLM distributor.
2. Each time you hear one of the phrases on the board, or see one of the actions described, cover that square with your last penny, an M&M, a small pebble, or other marker.
3. When you get 5 in a row, you win! At that point, you can be sure you are in a rip-off scam MLM meeting and that you will be screwed. It’s advised that you leave, run like hell and never turn back!.

Build Your Business Dynasty With Cruise to Cash!

Remember Dynasty? The money? The power? The big hair? Well apparently you can be just like Alexa and the rest of the gang just by joining Cruise to Cash!

Cruise to Cash has everything you could want in a travel MLM. Testimonials with College Professors. Celebrity endorsements by none other than Ken & Barbie. The ever important $10,000 per week earnings claim. In fact you can earn giant piles of cash with no travel training what so ever just by joining cruise to cash! And of course Cruise To Cash has Jesus, and lots of it! Cruise to Cash claims that their opportunity is the number 1 internet business opportunity. Just look at their website at http://www.no1homebasedbusiness.com/
Now maybe you’re not sure who to choose for your sponsor in Cruise to Cash. This guy claims that he talks to the owners of Cruise to Cash all the time, and is making more money than he knows what to do with.

So here we have yet another mlm scam that claims to be legitimate, honest ethical, God fearing, and the best homebased business opportunity on the planet. But if you look at their recruiting messages, their false earnings claims, their You Tube videos and more, it just screams scam! How is it even possible for someone to get sucked into something like this?

Wait-isn't this the exact same marketing message that YTB uses? Big piles of cash with no work or training? Endorsed by Jesus and other celebs? Legal? Ethical? Where have we heard this all before?

CLIA..suppliers, are you watching this??

Blog Notes

1. I don't know what is happening with the link colors. I did not change them, and they all appear to be correct in the template. I am suspecting it is a Google issue and hopefully it will resolve itself soon.  If not, I will go in and manually tweak colors for better readability.
2. A post about Cruise To Cash briefly appeared today. It was supposed to be published tomorrow. So there is nothing nefarious afoot and it will appear tomorrow.
   

YTB Scoops The Travel Industry

It seems that not only was YTB the first company to think of putting the Internet and Travel together, they are the first to develop the concept of a "Traveler's Profile".

Yes, you heard it here first (well maybe second if you listened to their calls or visited this site)--YTB has an exclusive on the "Traveler's Profile". No longer will travelers need to constantly repeat the basic information and the not-so-basic information. No more forms to fill out. And to top it all off--it is automated!  I simply cannot believe that no one has thought of doing this before 2009!  Just imagine a concept where your travel agent can keep the following information:

• your name
• DOB
• addresses and phone numbers
• your passport information
• frequent flyer information
• car rental program data
• hotel guest program information
• itineraries
• payment profiles
• emergency contact information

Yes and to think that this is available exclusively to YTB Referring Travel Agents:

At, Sharnese Travel & Cruises we have a feature that eliminates all that hassle, making it easier than ever to plan your next trip- introducing The Traveler's Profile.

The Traveler's Profile allows you to create an individualized profile that is securely saved within the system. Each time you return to the site, your profile information is ready and waiting for you, eliminating the need to re-enter all of your personal data. This exclusive feature is an added convenience that sites like Expedia and Travelocity don't have. In fact, it is exclusive to Sharnese Travel & Cruises!

Gosh, what will they think of next? I bet they will develop plagiarism as well. One particular post on that blog was completely lifted from another source without reference. I mean who could have thought about ripping off someone' s writing besides YTB?  What do you think of that?

A YTB Blast From The Past

The other day, I came across some older promotions and sales pitches on YTB.  How many of these "facts" hold true? How many of these "dreams" are still alive?  

The obvious key to success for the author of all of these columns is recruiting. What's the lure? Tens or hundreds of thousands of dollars in your bank account. Instant tax deductions for your vacations. I wonder how many in YTB have actually added tens or hundreds of thousands to their bank accounts? We know the answer from last year, I guess we need to wait for an income disclosure for 2008!

Ah yes, recruiting and the dangling carrot. This unreachable carrot has been dangling in front of the author's nose for over 4 years now, and he is still no further along. I venture to guess he is probably behind where he was several years ago. In October 2006, her was poised to be a director by December 2006. In July 2007, he could almost touch it. Now in February of 2009--where is that carrot?

But for someone who likes to claim that he is all about the customer experience, these columns seem to contradict that. There is not too much discussion about selling travel (other than to himself for a tax deduction). But that is not surprising, because as has been said ad nauseum, people in YTB that sell travel do not make any substantial money. People that recruit for YTB have a better chance, but only if they are positioned closer to the top of the pyramid.

YTBitis Sweeping The Country

The worst symptom of all…most whom are infected with YTBitis experience increased bank accounts of Tens, sometime Hundreds of Thousand of Dollars. 

Need A Tax Deduction? Own A Business!

To be in business, you merely declare it. And by doing so, you can magically turn personal expenses into tax deductions.

Our hobby is cruising. So we became Travel Agents. It is customary for Travel Agents to preview cruise ships so we can inform our clients. BAM! All our cruising just became a tax write off. We also took a trip to Disney earlier this year, and took the kids. Why? Don’t you think it might be necessary to get a 3 year old and 5 year old perspective on what they liked about Disney?

Team YTB Is On The Move

We learned at the trade show, that YTB has a Directors Challenge for anyone who becomes a director by 12/31/06, YTB will DOUBLE the Director bonuses for life. For example if you have 2000 RTA’s in your downline as a Director you receive $100,000 instead of $50,000 and so on. This has inspired Doug and me to work even harder to reach director by the end of the year. 

When you have someone who is interested in the business call Doug and give him a warm introduction, then stop talking and let Doug take it from there. Many of you know this works first hand, because you or someone on your team joined after being on a 3 way call. The team member who gets Doug on the most 3 way calls will win a prize. Also, you can win a prize by participating in thirty 3 way calls between now and 12/31. We have 12 weeks left, so that’s just an average of 2.5 calls per week.

Your Ticket To Paradise

With just a few core people that we have personally found, they have found others that have grown our team to over 200 at this time and we are getting closer every day to becoming Directors ourselves. We see it, we feel it, and it’s so close we can almost touch it.

Another One Bites The Dust

I follow several YTB blogs and just wanted to point this one out. Here is one of the more successful RTAs and Reps that has quit. He has identified what YTB is, and more importantly what it isn't. You can read his entire post here, but here are some excerpts:

• My first year (2007) in YTB wasn't anything to brag about. Nevertheless, I was in the top 5% in the company. It doesn't take much because most members don't do anything.
• My experience with YTB started out well. Since I was mislead and actually told lies when I signed up I had no doubts I would make a ton of money. I built a decent downline, which by now has shrunk to 18 paying members. Everyone else has dropped out. Very few in my downline ever did anything, which caused me to feel guilty because I talked them into something that did not work for them.
• Last fall I listened to Coach Tomer telling us that YTB was unfairly targeted just as Roger Clemens was. That was the whole theme of that Saturday morning's call. That was the beginning of the end for me with YTB. If YTB falls in the same category as Roger Clemens, a cheater and dishonest person who will likely spend time in jail soon, then I don't really want to be associated with YTB.

Congratulations!

Sound Familiar?

• We are poised to enter 50 countries around the world next year.

• Traditional travel agencies will be going out of business like they did in the 90's.

• Joining World Ventures you have 0 overhead.

• 100% positive cash flow with zero liability.

• Endorsed by many prominent people & celebrities alike

• #1 Travel Agency for Carnival Cruise Lines.

No, it's not YTB. It's the New Kid in Town. Or, should I say old Kid in Town since they have been around for awhile. World Ventures. Same song, different tune.You pay $400 to join to point people to book travel to on your website. There is a monthly fee just like YTB and if you sign up 6 people they waive the monthly fee. Most of the money is made in recruiting your friends, family, co-workers and neighbors.

So, just who and what is World Ventures? And, why should we care? According to Peter Stilphen, MCC, World Ventures is indeed a travel MLM and on his naughty list. Mike Azcue and Wayne Nugent founded World Ventures after being involved in another MLM called GTT. World Ventures income figures released in 2007 show only 26.3% of the people made money. The average income was only $200. Sounding familiar again? Seeing a pattern?

And, when you question the figures and say anything about the company the flock rises up and tells you we (TTA's) are jealous, going to be extinct and they are going to take over the world. Big sigh. Here we go again.

What is it with people believing this stuff? Is it because of low self esteem? Wanting to be rich? Lured by greed? Or, is it that travel is sexy and fun? I am sure psychologists and cult specialists could enlighten us all day on the motivation of people to join these companies. But, the bottom line is they hurt the travel industry. Last count I saw was upward of 55,000 untrained World Ventures reps running around passing themselves off as travel agents to the consumer. This hurts all of us.

The sad thing is once one MLM goes away there are more awaiting in the wings with the promise of riches and the lure of easy money and traveling like the pros. If you are as fed up as I am here is the petition to sign asking for regulation of the MLM's.

http://www.pyramidschemealert.org/PSAMain/home.html

A Ponzi Scheme Defined

This was originally in a MSN article, but I could not copy and paste the slide show into this blog, so I have recreated it. It highlights many salient points that are appropriate with the travel MLM/Card Mills that are operating today.  As you read through this, most likely you will be nodding your head in agreement. Is it no wonder that Jerry Brown and Lisa Madigan have taken notice and taken action? With the California and Illinois Attorneys General either prosecuting or investigating, are others far behind?

How Ponzi Schemes work

Since Charles Ponzi defrauded thousands in the 1920s, investors have continued to fall prey to such schemes. Here's why.  --Source: The North American Securities Administrators Association

# 1 Ponzi's allure

• Ponzi schemes work by paying old investors "dividends" from new investors' principal.(YTB pays the lion's share of bonuses from money received by new RTAs. This is substantiated by their SEC filings)
  

# 2 Variety and confusion

• A flood of new investment vehicles has made it difficult to identify frauds. (While not dealing with investments, yet, YTB is adding all sorts of ancillary products. In addition, with the other MLM outfits like Traverus and GTI, it does become confusing to determine legitimacy. YTB counts on this.)
  

# 3 Greed

• High rates of return and "guaranteed" low-risk strategies lure even conservative investors. (If anyone has attended a YTB "Opportunity Meeting" they flash the success stories like Julliet St. John and Ron head, but neglect to mention that their own income disclosure indicates that the vast majority of participants earn nothing. The low risk is the minimal investment and no investment programs.)
  

# 4 The appearance of success

• Early investors receive "proof" through high initial returns. (Undoubtedly the top people in any pyramid scheme will receive the high initial returns. Look at Ron Head, Rick Ricketts, Andy Lakey, Bill Hoffmann and others who are always highlighted and paraded as "proof" of success.)
  

# 5 The herd instinct

• Those investors then promote the scheme to friends and others. (When you have tens of thousands of people all led by financial earners, they will take that success as an indicator of theirs and promote it to anyone and everyone. As a matter of fact, one of the key "tools" in MLM is to promote the opportunity to everyone within a three foot radius of you. It is called the Three Foot Rule.)
  

# 6 Fear

• As the scheme unravels, some still promote it for fear of losing out amid mass withdrawals. (YTB is currently experiencing this right now. In March of 2008, they had 138,000 RTAs and right now they are just about to go under 90,000 and are losing about 300 RTAs per day. Yet there are many, the majority, who do not see the warning signs--IATAN, RCCL, dropping RTAs, lawsuits, falling stock prices, and most recently the decision by NCL to terminate them. These people will continue to believe and promote hoping for success that is out of reach and they will continue to do so until the company eventually collapses. One onlly needs to look at the loyalty some of the Joystar agents exhibited who are now in dire straits.)
  

# 7 The Tooth Fairy syndrome

• Some refuse to relinquish their faith in the business acumen of the alleged mastermind. (Well, I am not sure there is ANY business acumen in ANY of the alleged masterminds. None of them have ANY experience in travel and they all have experience in questionable MLM outfits. AL Williams, selling fuel additives, etc. Their acumen is suspect when they deal only with Board insiders and make sweetheart deals with privatelyheld sister companies. However, they ALL talk a great talk and have amassed a large loyal following. The followers of YTB management are quite literally zombie-like.)
  

The Hidden Cost Of MLM

TO:  Carnival Cruise Lines, Princess Cruise Lines, Holland America Line, Disney Cruise Line, Walt Disney Travel Company, Globus, Trafalgar, VAX Vacation Access, Travel Impressions, Cunard Line, Seabourn, Collette Vacations, MSC Cruises, Costa Cruises, Apple Vacations, The Mark Travel Company & Brands, Travel Guard and the rest of the travel suppliers who deal with the MLM travel agencies.


RE:  Additional costs to deal with MLM

I bet you thought that offering a 16% commission and a few marketing bucks was a great deal to deal with an MLM when you started. I bet you are wrong. Have you ever taken a look at the hidden cost of dealing with an MLM? When reputation is everything in this industry, I am surprised that you all are willing to sacrifice your hard earned brand image. Please consider the following:

Are you gaining more clients? Or just discounting your product?

• The bean counters all see the dollar signs for the bookings. But it has been proven that most of the sales are to themselves. So it is logical to assume these MLM participants would likely have traveled in any case and purchased via a more reputable means. All that is accomplished here is to cheapen your product by discounting--something many of the suppliers themselves prohibit. The alienation of your sales force by doing so is a whole other discussion. Perillo Tours found out that 90% of their YTB bookings were for the agents themselves. Sort of defeats the purpose of hiring an "agent" to do your marketing doesn't it?
  

What's happening to your reputation?

• What happens when one of these untrained MLM participants makes an attempt to market your product? I am sure you have seen some marketing attempts--many have been highlighted on this blog. And do you really want someone trying to sell your product, when their goal is to sell them into their scheme so they can travel for free?
• What happens when one of these so called "agents" decides to collect almost $100,000 from high school seniors and run with it? While Carnival obviously had no responsibility in that matter, the cruise line's good name was certainly dragged through the mud.
• What happens when you do offer reduced rate travel and these MLM participants descend and are soliciting your full fare paying customers? What type of taste does that leave in your customer's mouth? And why do these MLM "agents" need to be continually reminded on how to be professional?
  

What's happening to your money?

• Cruise lines are becoming more and more dependent on onboard revenue for their profitibility. Has anyhone bothered to do a study of the amount of money the MLM clients actually spend on board as opposed to that of a traditional agent? What about the MLM participants themselves? I was on a Carnival ship in November and witnessed a MLM agent from Traverus bragging that they got the cruise for next to nothing, had weaseled out of tipping, smuggled in a lot of alcohol and soda, and brought insulated drinking cups to keep them well lubricated. With all that planning, I am sure a nickel did not make its way to Carnival.
• Sure you pay some of these MLM companies top tier commissions, but for that, one would expect that the agent does the lion's share of the work. Are the MLMs pulling their weight? Have you looked at the time your internal people spend hand holding and re-training the MLM participants time and time again? Is it really worth it to pay 16% commission? I recently heard that a major cruise line flew staff from Miami to St. Louis to answer consumer calls during YTB's recent Sail-A-Thon.  I suppose they did not want a repeat of the "service" handed out at last year's event. Honestly, it makes more sense to take the booking direct and not pay a commission at all.
  

How do your employees feel?

• Have you ever questioned your front line empoloyees about how they feel dealing with the MLM agencies? I have. It is not pretty. You need customers for sure, but you also need employees who are excited to work for you. Why not offer an anonymous survey and allow them to voice their opinions? 
• Ask your BDM's their honest opinion. I am sure you will be shocked. Be sure they know you want to know how they feel and not what they think you want to hear.
  

Do these "agents" know the product?

• On a recent blog post, a YTB Referring Travel Agent was insistent that a "tender" was money. While that is certainly a definition of tender, it is not the case in the travel industry. Most likely this agent is advising clients that while in George Town, Grand Cayman that they need to take money to get ashore.
• Speaking of the Caymans, the RTA that took off with the high school seniors' money--she advertised that the "boat" "docked" in "Grand Caymen". What impression is left on the consumer? And why are suppliers facilitating it?
• When Royal Caribbean made their move, most of YTB insisted that Lisa Bauer's promotion to the VP of the Hotel Operations was really a demotion for "dissing" YTB and that she was in charge of changing sheets in the pre-and post cruise hotels.  Seriously, I am not kidding.

Is the interference worth it?

• From what I hear, many suppliers have received subpoenas from the California Attorney General requesting access to many financial documents related to the current suit against YTB for operating an illegal Pyramid Scheme. While I am sure that all suppliers operate on the up and up, additional governmental scrutiny can never be a good thing.

It is obvious the cost is far greater than the commissions paid. The MLM "agents" are not earning their commission and quite honestly, your continued dealing with them is slowly but surely eroding your very own brand image. Royal Caribbean took a bold, brave step in 2007 by eliminating YTB from their agency list. Other smaller suppliers followed as well. Last week, NCL came to the realization that dealing with an MLM is simply not worth it.

Right now, each supplier needs the support of people that know the product and are professional, legal and ethical in operating their businesses. I challenge that you are not getting this with YTB, Traverus, GTI and the rest. Richard Fain and Adam Goldstein reiterated their belief in a trained professional agent to move their product. I applaud them. Traditional Travel Agents are very relevant to travel suppliers, and they are proving that relevancy each day.

How relevant are the MLMs?  How committed to you are they? Have you listened to one of the YTB Saturday morning conference calls? This week, the word "travel" was mentioned exactly once--when they said they "started with travel" and moved onto flowers and cars. Both Traverus and YTB are now focusing on selling potions and lotions. YTB is selling home decor, financial services, meat and food, cakes and peanuts, and more. Don't believe it, go click on the links. These MLM companies are only  dedicated to travel as long as they can use it as the sexy lure to recruit new members.


You all received a copy of the petition withnearly 3000 names of travel professionals asking for you to throw your support to the agents who produce for you. If you need a copy of this petition, please send me an email and I will be happy to send it.

Now that 2/3 of the major cruise lines in the world have seen the light and have made the business decision to not deal with the MLM/Card Mill/Pyramid companies, don't you think it might make sense for you to take a look as well?

Breaking News: NCL Was Actually Owned By YTB (Or Vice Versa)

According to this YTB Blog Site, it appears that NCL was not just a vendor, but they were actually a part of YTB. This fact was apparently ommitted from any of their Securities Exchange Commission (SEC) filings, but was disclosed in this latest "News Update".

Other new information gleaned from this latest release include:

• Princess Cruise Lines will now be sailing from Baltimore, MD
• Carnival Cruise Lines loves to make money in this economy
  
• Kevin Sheehan (President and CEO of NCL) is reportedly being fired for his poor decision
• For cruises anywhere (other than on NCL, RCCL, Celebrity, or Azamara and to Hawaii) please contact the company
  

And since the post will be removed in a matter of minutes, I am posting it here:

News Update

Norwegian is no longer a part of our company. They chose in this economy to drop us as a vendor for them. Don't really no why they did drop us but I guess more cruises going to the others . All these companies going out of business and companies looking for business. Well I guess their CEO will be fired soon. So if you want a cruise anywhere I will be able to help you with that. But not on Norwegian. Because my blog is an honest one you can read the details on www.thefactsaboutytb.com

But we do offer other cruise lines that love to make money in this economy. Living on the east coast I was interested in doing some group cruises from Baltimore on Norwegian but now I won't be doing that. Because I wanted closer ports people can drive too. And guess what Carnival, Princess is going to get a lot of my business.

Traveling Mom

Posted by Dine In at 10:50 PM 0 comments

What's Wrong Right With This YTB Advertisement?

Edited for spacing and additional info. See bottom of post.

Job Details
Christian Online Travel & Shopping Mall Work at Home Website
Your Home, Any State, United States

Date Posted: 1/6/2009

Job Category: Work At Home

Education: Any

Min Pay Rate: $5,000.00

Max Pay Rate: $450,000.00

Job Type:Part Time

Job Code:

Company Name:A PEACE OF HEAVEN TRAVEL

Department:Travel Agent Work at Home Part Time

Contact:Sheri and Lawrence Leduc

Email:Please login to view

Website:Please login to view

Job Description:OWN YOUR VERY OWN CHRISTIAN ONLINE TRAVEL AGENCY WEBSITE & NOW YOUR VERY OWN E-COMMERCE SHOPPING MALL & START EARNING 70% COMMISSIONS TODAY. NO RESUMES ARE REQUIRED, ONLY SERIOUS BUSINESS MINDED PEOPLE WHO WANT TO START THEIR OWN BUSINESS WORKING PART TIME AT HOME, OFFICE OR INTERNET TRAVEL & SHOPPING MALL WEBSITE ALREADY DESIGNED & DONE FOR YOU & READY TO GO IN LESS THAN 5 MINUTES.

YTB INTERNATIONAL, INC. FACTS & WHO WE ARE:

*Christian Owned & Operated since 2001 By a retired pastor & his son

*YTB is a United States publicly traded company

*Travel Weekly Power List is out and YTB is Ranked #26 overall, and tied for the LARGEST GAIN of everyone on the Power list with $414.5 Million in Travel Sales

*The Direct Selling Association has approved the application for YTB as a member of it's prestigious organization

*Because we care about our people YTB offers guaranteed issued health insurance to all RTA agents

*YTB launched our business into Canada, Bermuda and the Bahamas in early 2008

*YTB provides an income disclosure statement to provide transparency to our operations

*YTB Travel Network (YTBTN) was awarded the Top Agency Producer Award for their sales revenue with Princess Cruise Lines for the 2007 year

*YTB Wins Carnival’s Pinnacle Award

*YTB is Platinum with Apple Vacations Inc.

*Magazine lists YTB in top 10 franchises in the Travel Industry

*Saturday Evening Post chosen Coach (owner of YTB) to be on the cover

*ONGOING TRAINING

*SPECIAL TO GET STARTED NOW THROUGH FEBRUARY 28, 2008 TRAINING PRICE WAIVED (A $149.00 VALUE) + 2 FREE MONTHS ARE WAIVED-TOTAL VALUE OFF $250.00

Our Partners

*Travelocity

*Dell

*Staples

*H & R Block

*Sprint (which all give a very big discount when you become part of the company) *Restaurant.com (purchase your own gift certificates at 50% & get paid commission)

*Aisle 19 (600 + Retails stores like Walmart, Target, Petsmart, Macys, Sams, etc...paying cash back, no sales tax + commissions on your own purchases & others you invite to your website *Hotels.com

*UPS

What our travel, entertainment & NOW E-COMMERCE RETAIL MALL company is doing for us & what it can also do for you & your family:

1. I am able to stay at home as a wife & mother because of our travel business & pay for all the extras + take several vacations a year.

2. Getting back over $15,000.00 from IRS for 2008

3. We can also drive our cars and receive 55 cents per mile when we drive anywhere to talk about our business.

4. We can travel as a travel agent and receive courtesies, perks, travel wholesale, free local visits to theme parks, etc....receive continous upgrades

5. We receive 70% commissions on everything booked or purchased from our website paid to YTB

6. WOW! Now our own online e-commerce shopping mall was just added to earn cash back + commissions, no sales tax & no shipping from many retailers HAVE YOUR OWN SITE UP AND RUNNING TODAY IN 5 MINUTES. IT'S THAT EASY!!! http://apeaceofheaventravel.paradisenetwork.com/join/

Here is our travel booking site to see what you also can have like ours to refer others too if you decide to have your own travel site: CHECK IT OUT: WWW.APEACEOFHEAVENTRAVEL.COM

CLICK ON THE EXTRAS TAB AT THE TOP OF THE HOME PAGE & SEE WHAT YOU CAN HAVE LIKE OURS, COMPARE PRICES: SEND FLOWERS & GIFT BASKETS (GORGEOUS), HOME DECOR, FOOD, RESTAURANT GIFT CERTIFICATES FOR 50% OFF, APPAREL & ACCESSORIES, CONCERT TICKETS, PARK THEME TICKETS, OUTDOOR FISHING & HUNTING EXCURSIONS, GOLFING PACKAGES & MUCH MORE...AND GET PAID COMMISSIONS ON EVERYTHING YOU PURCHASE OR OTHERS YOU REFER TO YOUR SITE!!! AND NOW, YOUR VERY OWN AISLE 19 RETAIL ECOMMECE SECRET SHOPPING MALL ALSO INCLUDED FOR FREE. CHECK THIS LINK OUT! http://thesecretofaisle19.com/ THE BEST PART IS YOU DO NOT NEED TRAVEL AGENT OR E-COMMERCE EXPERIENCE NEEDED...JUST POINT PEOPLE TO YOUR ONLINE TRAVEL & NOW E-COMMERCE MALL WEBSITE & THEY MAKE ALL THEIR OWN PURCHASES LIKE THEY ARE ALREADY DOING AND ONCE THEY SEE WHAT YOU GET THEY TOO WANT TO KNOW HOW CAN THEY HAVE WHAT YOU HAVE. TOTALLY COOL AND THE BEST PART IS YOU EARN EXTRA MONEY & SAVE MONEY ON WHAT YOU ARE ALREADY PURCHASING BY HAVING FUN, NO SELLING OR QUOTAS TO MEET!! EVERYONE LOVES TO TALK ABOUT THEIR VACATIONS AND

*NOW MAKE ALL YOUR WALMART, TARGET, MACYS, SAMS, PETSMART + 600 OTHER BRAND NAME STORES AND EARN CASH BACK & COMMISSIONS ON ALL YOUR OWN SALES, WITH NO SALES TAX & IN MANY CASES NO SHIPPING + ANYONE YOU INVITE TO YOUR SITE. NOW IS PERFECT TIMING FOR GETTING INTO YOUR OWN ONLINE TRAVEL & NOW E-COMMERCE MALL ONLINE BUSINESS...IT'S THE WAY OF THE FUTURE...YTB IS GETTING READY TO EXPLODE GET ON THE GROUND FLOOR NOW!! WE LOOK FORWARD TO YOU BEING A PART OF OUR TEAM!

GOD BLESS, SHERI & LAWRENCE LEDUC

http://www.christianjobs.com/Job/15241/

EDIT: Corrected spacing. Also, if you follow the last link (just above), there is a phrase in that ad that reads:

Our Partners who believe in us:
*Travelocity *Dell *Staples *H & R Block *Sprint (which all give a very big discount when you become part of the company)
*Restaurant.com (purchase your own gift certificates at 50% & get paid commission)
*Aisle 19 (600 + Retails stores like Walmart, Target, Petsmart, Macys, Sams, etc...paying cash back, no sales tax + commissions on your own purchases & others you invite to your website
*Hotels.com
*UPS

Interesting...no mention of any travel companies that believe in them!

Return Of A Favorite

Well, Traveling Moms is back and as ill-informed as ever. This time, she goes by the moniker "Dine In"--I suppose for all those dining options her YTB site now offers!

But apparently she never got the memo about NCL. Someone left a comment asking about an NCL departure from New York:

Can you get me a price on THe Norwegan Dawn sailing from New York? I do not fly and we can drive up there or take the train. Does the train take me to the cruise ship?

And she replied:

I posted some info on the cruise from new york that is the only one this year. And you have to get back home from Miami. It is 14 days and they do have some amtrak deals.

And here is the link to the post about the fabulous deal someone can buy from her YTB site on NCL. Note that she didn't answer all the poster's questions and the one she did, she got wrong. No, the train does not go directly to the port. And of course the Norwegian Dawn has weekly departures from New York in May, June, July, August, a little bit in September and all of October. But why expect someone from YTB to know this?

I imagine this might be one of the myriad of reasons NCL tossed YTB overboard. The 92,000 RTAs that they have remaining are (as a whole) pretty clueless! Good job Traveling Moms!

PS: YTB Compliance, I thought you talked to her? Do you need a refreshed list of non-compliant sites?

The Reps Make A Buck Any Way They Can

This summary is not available. Please click here to view the post.

YTB's Response To NCL

The following notice was just sent to Coach's Corner members 30 minutes ago. 

Important Notice re: Norwegian Cruise Line (NCL)

YTB Travel Network has been advised that Norwegian Cruise Line (NCL) has elected to discontinue accepting new reservations from YTB or its agents. More than a year ago NCL elected not to renew YTB's contract and reduced commissions by almost 40% to our RTAs - thus the decreased sales activity. NCL offers an excellent product and the dissolution of our relationship is unfortunate, however NCL is not a Preferred Supplier of YTB.

During these difficult economic times it is important that YTB and our Affiliates and RTAs focus on our Preferred Suppliers (such as Carnival)
for all of our travel needs. A complete list of YTB's Preferred Suppliers is accessible from your Travel Portal.

All commissions owed by NCL to YTB for any passengers who booked prior to January 20, 2009 will be paid to YTB. All existing reservations booked prior to January 20 will be serviced as per the usual course of business for final payment. Of course YTB will continue to provide service to the passengers booked prior to January 20.

If you have any questions about any vendor on this list, please contact YTB's Travel Support.

Thank you.