Tuesday, October 30, 2007

Math Help Please


I was just looking at the total numbers for July on the YTB site and I need some help.

If you add the REP and RTA commissions paid out (non-power team reps, power team reps, the $1K bonuses, the $10K bonuses, and the RTA commissions) the total payout comes to $9,611,833 (approximately)

From what I understand, the only sources of substantial income are travel commissions, website sales, website monthly fees, and training material. I have also heard that RTAs with 6 people under them do not pay the monthly fee. But not taking that into account and also not adding in the $500 one time fees, the income from the websites is $5,300,000. Taking a stab at the training income (based on the nearly $6M in 2006) I am guessing $700K for the month. So that brings total income to $6M. The remaining difference must therefore come from travel commissions.

Taking the $9.6M and subtracting the $6M, that leaves $3.6M in travel commissions.

If they are paying the RTAs 60%, the monthly cut to the RTAs would be $2.1M and not the $1M that was paid. And to earn $3.6M in commissions, they would have needed to sell $36M of travel in the month.

This does not take into account any additional for overhead, operation expenses, etc. The numbers just don't add up.

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