OK, making some assumptions here, but if each of the 310 locations employed 6 selling agents...that would be 1,860 agents responsible for $3 billion in travel sales. That works out to $1.6 million per agent! Kudos to Michelle and everyone in the Signature Travel Network--take a bow--you deserve it! You exemplify exactly what a real agent is!
Signature Travel Network, continuing to grow in size and geographical spread, reached $3 billion in annual sales in 2007. Signature president Michelle Morgan, speaking at the cooperative's annual sales meeting in Las Vegas, said the consortium added more than 20 members since its meeting in January and through acquisitions its largest members added another 20 locations. The result is a sales powerhouse of 177 agencies and 310 locations across the U.S. and a clientele around the world.
And in this corner... let's look at the powerhouse YTB. On track to be the largest agency in the world that cannot sell the #2 cruise line and has been shown the door by IATAN. They have 136,000 agents (almost t75 times the number that Signature has) and they managed to sell $226 million dollars (which is 13 times LESS than Signature and is still in my mind a fictitious number). That works out to $1662 per "agent".
Wow, quite a difference! It can't be that far apart! Can it?
To the suppliers....how many FAMS, discounted travel and so forth did you supply to Signature members over the past year? How many were supplied to YTB? I am guessing a lot less to Signature.
FAMS are all about experiencing a product to encourage sales. I would venture to say your investment in FAMS for signature paid off pretty handsomely. How did it do for YTB? Is there a supplier out there willing to come out of the closet and answer?
Wow, can imagine the income of those agents if Signature would also pay them residuals for each agent they brought on board and made them business owners to share in the overall profit of the company!
ReplyDeleteAnd look what they advertise as perks for agents:
ReplyDelete- Discounted cruise rates
- Stateroom upgrades
- FREE Exclusive shore events
- Discounted car and hotel rates
- Food and Beverage Credits
- Exclusive Resort Credits
- FREE hotel night stays
I think I heard those at a YTB meeting also.
Now Greg...do your homework before commenting. Signature does offer revenue sharing programs to maximize bottom line profits. They are member-owned.
ReplyDeleteBut John, that's not YTB's business model. YTB's target is those looking to earn extra income by selling travel products by owning their own part-time business in order to grow YTB. To join Signature you:
ReplyDelete- must have at least five (5) years experience in the travel agency industry.
- must demonstrate the ability to produce a minimum of $1,000,000 in cruise and tour sales annually for Signature’s suppliers.
I doubt that there are a select few even on this board that do that part-time.
- Member must have a website, e-mail access and be equipped with a suitable automation platform for Signature’s Intranet and electronic communications.
Fees:
- Enrollment: $500 (one-time fee).
- Membership Dues: $850 (annual). Includes Signature’s web content links and E-marketing programs.
Whoa...a franchise/license fee with continued overhead.
- Membership Certificate: $1,500 (one-time fee). Signature is a co-operative owned by its members; therefore, members are required to purchase a membership certificate after one full calendar year as an associate.
Signature is definately a prestiguous organization. Wish I could do it. You can tell by their production numbers and they only keep the best of the best. Once Accepted:
ReplyDelete- Members must continue to meet annual sales production minimums for Signature’s cruise and tour suppliers (currently $850,000 traveled, net-net sales each calendar year).
- Members must attend at least three (3) of the many functions offered by Signature each year.
- Members must participate in a minimum of two (2) customized Signature’s produced marketing publications each year.
- Members must utilize Signature’s “Vacation Offer ID” icon on their website in order to support the integration of offline and online marketing. Members must also have e-mail access onsite.
- Members must participate in Signature’s central client database, ClientConnection, via Clientbase Plus.
- Members are not allowed to participate in another comparable leisure oriented consortium, franchise or co-operative.
I don't travel that much to buy from myself and make it worth it. I'll stick with YTB. The only thing I "must" do is pay $49.95, which that is even reimbursed to me.
ReplyDeleteVisitor said...
ReplyDeleteI don't travel that much to buy from myself and make it worth it. I'll stick with YTB. The only thing I "must" do is pay $49.95, which that is even reimbursed to me.
What the hell does that mean? It has no bearing on the discussion?
And Jamal--I believe the "perks" you are listing are not agent perks but the VALUE ADD that the agents are able to offer to their clients! See when someopne books with a Signature agent, the agent works with them to make their experience something special including upgrades, special events and so forth. They are not saying ---go book it on my site. See the difference?
Apples and oranges. YTB makes no apologies for its business model. They have no interest in becoming a company like Signature.
ReplyDeleteYTB will ultimately sell more travel than Signature on a yearly basis. Signature sounds like a great company and more power to them. High-touch personal travel agents.
If you want to do a apples and apples comparison, look into the travel sales of a company like Traverus vs. YTB. In a comparison to Traverus, you should be happy with YTB because YTB does indeed sell travel . . . and significantly more travel each year.
Sorry William. I should have clarified myself. I'm a pharmacuetical sales rep and travel quite a bit throughout the mid-to-Eastern U.S.
ReplyDeleteThe bearing it has on the discussion is directly related to the title of this particular blog article "An Interesting Comparison". Although Signature sounds like a great company as John mentioned, YTB has no quotas or timelines in which I must perform, but do reward performance if I so choose to partake. However, the two companies primarily target two separate consumer markets. Comparing all the "must do" requirements of Signature, the only YTB requirement is that I pay a licensing fee of $49.95 month (which, for the time being, is reimbursed based on my marketing performance - 6 personal RTA sales).
- Timothy (Visitor)
I stand corrected William (re: the perks I listed being for customers) It appears so familiar with the hype I received from both YTB and World Ventures if I started my own online travel business through them.
ReplyDeleteHmmm. Signature has an $850 annual fee... non refundable.
ReplyDeleteYTB $599.40 ($49.95 per month) refundable after recruiting 6 RTAs
YTB has a 50% match of sales. No word of that by Signature.
Both have revenue sharing programs (YTB upon becoming a director... 500 RTAs in a downline)
$1500 for a membership certificate?
$1,000,000 quota for cruise booking sales per agent?
YTB has no quotas!
How much in travel sales did you say YTB created??? $228,000,000???
I assure you that YTB has generated a lot more travel sale dollars that $228,000,000. That's like saying that each agent only booked ONE cruise for two pax.
Ah HA! I did some research!! Those were the sales generated for 2006 with only just over 60,000 RTAs.
" in 2006 YTB was ranked #35 in Travel Weekly's Power Agency list with $226,000,000 in verifiable sales."
This is 2007 ans YTB now has 135,000+ RTAs, and we are close to $1 Billion in travel sales for 2007. I will find out the exact number and get back on this topic.
Back to Signature...
177 agencies at 310 locations around the U.S. They must have a lot of agents with a lot of agencies at more than 1 location. I highly doubt that a single agent can book 1.6 million dollars in travel sales! Maybe they had a lot more agents at each location. Let's say they had 12 agents. That's 806,451.61 in travel sales per agent. That still sounds highly unlikely. I'd say that there might be a whole lot more people at each location.
At the quota Signature sets, I wonder how large the agent turnover is (firing and hiring).
ReplyDeleteDoes anyone but me find it a little unsettling that the YTBers are put off by a company that has some standards? I think that's great! I won't take a I.C. who doesn't have at least 3 years experience or a degree in travel, and has to be able to produce some sales! Didn't any of you who joined YTB scratch your head a little bit and wonder how a business that has no training or sales standards could be successful?
ReplyDeleteThe reason that YTB has so much dead weight is because a. the cost of entry is so low and B. because there are no training or sales requirements. Maybe if the people who joined YTB had to invest some real money and time they would treat it more like a business and less like a hobby. And if YTB actually charged more to get in, raised the bar on training and sales requirements, maybe there would be no reason for this anti-mlm blog. Just something to think about.
Travel Tempress said "Didn't any of you who joined YTB scratch your head a little bit and wonder how a business that has no training or sales standards could be successful?"
ReplyDeleteYTB IS SUCCESSFUL. I have over 500 RTAs that knew exactly what they purchased when they became an RTA with YTB. Many are professionals like the pharmacuetical sales rep who recently posted. You seem to think that the RTAs were "hood-winked" into this business . . . far from the truth. YTB IS successful. As I stated previously, it is apples and oranges with Signature. They like their business model and it is working for them. We like ours and it is certainly working for us. YTB is not the "blind leading the blind". We know what we are doing.
Most of us are not traditional TAs and we do not have any desire to be one. That's what is so humorous about some of the comments from this blog and forums like Travel Weekly. We do what we do and they do what they do. They look down at YTB RTAs as if we are second class citizens. We look at them as arrogant naysayers.
Bottom line, Travel Tempress, we are going to around for years to come. YTB will get better and better and we make no apologies for our business.
No training???
ReplyDeleteTemptress, YTB does have training my friend.
PTBYTB. You obviously have not not been reading, otherwise you would not have posted such a rediculous statement like "I highly doubt that a single agent can book 1.6 million dollars in travel sales!" A good agent can certainly achieve that.
ReplyDeleteAnd, yes, YTB does have training -- if the RTA chooses to do it. The key word here is 'choose'. Judging from what we've seen, most have chosen not to.
VERY interesting comparison. For your next blog entry, why don't you compare American Express Business Travel with Travels with Fred?
ReplyDeleteYes I am aware that YTB does offer training, but it is not manditory. And the number of people in YTB who actually sell travel and have some knowledge about the industry and how to best serve the client are few and far between.
ReplyDeleteFor a company to be successful, consistency is very important. This is why Starbucks is doing well. It doesn't matter what state you are in, the latte is the same. With YTB, some agents are trained, some are not. So while some of you on this board may know a bit about travel, the chances of a consumer being able to locate a YTBer that knows something about travel are slim. Doesn't that concern you? Aren't you worried about one of your own making all of you look bad because there are no standards?
YTBers post over and over again about how great YTB is doing. But if you look at businesses that have done well and stayed healthy over the years, they've had training, standards and consistency. YTB has none of those.
I don't think that YTBers are second class citizens. It may be a good place for someone to start out if they really want to be in travel, but if you are interested in a career in travel it's not the place to stay. If you are intersted in a career in mlm or selling websites then it's fine.
One agent can easily sell 1 million in travel in a year, and keep 100% of the commissions too. You guys don't seem to understand that the majority of my job is marketing. I have to sell myself to the client and get them to hire me. So there is just as much marketing involved in being a traditional agent as there is for an mlmer. The reason that we are successful is because were able to show people why we are a better choice, and they even pay a retainer for our services upfront. With YTB, you're all offering the same thing-a do it yourself system. Again if you look at companies that are really making it, they are able to offer something different.
My intention is, and always has been to protect the reputations of traditional travel agents, and maybe show you that if you want a career in travel there is a much better way to do it. If YTB had some training standards and did not abuse agent benefits to the extent that they have I wouldn't be here. As long as YTB continues to operate in the manner that they have and allow their "reps" to call themselves travel agents I will continue to try to educate some of you as to why it's bad for everyone in the industry, including YTBers themselves.
I am NOT comparing programs. THey are indeed very different. However, the product they both sell is the same. They have the same vendors (well, except those that canned YTB).
ReplyDeleteWhat I am saying is that in selling travel (regardless of commission splits, entry fees, membership certificates etc.) one small group blew the doors off of this company that claims to be the end all and be all of travel. They have a goal to be the biggest in the world. Their directors are now spewing forth that they are selling $1 B in travel this year. Well it is still a $2 B short of Signature.
Signature 1860 agents
YTB 136,000 agents
Signature locations 310
YTB locations 136,000
Signature sales 3,000,000,000
YTB sales 226,000,000 (yes, 2006 but there have been no officially guessed numbers for 2007 from YTB.)
Another curious phenomenon I see is that every other business in the travel industry can tell me right now, how much travel has been booked this year. I can go to my accounting program and pull out total bookings (and value), total revenues (commission received), I can even tell you what potential bookings I currently have on the books and the value from people that are just hemming and hawing.
So, why can't YTB, this big powerhouse since 2001 (according to some) and 2003 according to their PR department) tell the world how much travel they sold? I learned a LONG time ago to NEVER trust a supplier for that information. So to get a total sold, YTB needs to ask Carnival for passengers and guess at the revenue? They need to ask RCCL for the revenue and guess at the passengers? They need to look at what the call center did and then guess what the RTAs may have done on their own?
What the hell is that? It boild down to a complete lack of any type of controls--financial and otherwise.
I bet if you asked Coach or Brent how much they made selling their YTB stock, they could tell you to the penny!
And speaking of Brent...I understand that there is a partnership there with his host agency. ANy scoop on that?
John . . . You just said "I am NOT comparing programs" and then you turn right around again and compare programs!
ReplyDeleteYTB's "goal" was to sell $1 billion in travel in 2007. We have not sold $1 billion in travel this year. YTB sets big goals. We will not hit that mark but should at least double last year's sales.
YTB is making a large capital expenditure to improve the travel sales recording. YTB will be the first to admit that they have been stretched with their infrastructure with the growth that has taken place in the last 18 months. YTB had 110 fulltime employees a year ago and now have over 330. They are hiring on a daily basis.
You continue to make a big deal out of the stock sales. Michael Brent has been selling all year long. Lloyd Tomer sold stock earlier this year as a $1 million dollar donation to his local church as part of a promise he made years ago. He also traded stock to the Attorney that had bought the Riverhouse (former Olin Mansion in Alton, IL) from Tomer a few years ago in order to buy it back from him. The Riverhouse is used on a weekly basis to house Directors traveling to the home office in Wood River, IL. Tomer sold it to the Attorney back in 2003 to raise capital in order to help YTB continue to stay afloat during a crucial time in YTB's history. All three founders are very committed to YTB and are certainly not planning to move on. They have fully expected to take "hits" from the traditional travel industry and have handled themselves very admirably. All you have to do it read Kim Sorensen's recent interview with Travel Trade and you will see that things are "full speed ahead" with YTB.
A couple of things:
ReplyDeleteSignature is a Coop (like a Consortium, but it may be a Not-for-profit, as is Coop Ensemble - with profit sharing at year's end). Signature came into being as an alternative to Virtuoso and Ensemble which are Coops/Consortia that focus on high-end, luxury travel. These are NOT Host Agencies or MLMs.
One joins these Coops/Consortia and is expected to perform to a certain level in order to keep commissions high and to keep preferred vendors interested. The Vendors themselve contribute big money to the Coop/Consortium marketing plan and design "specials" that are not available through other channels. Member Agencies are expected to sell cerain dollar amounts of travel with the Preferreds in order to maintain membership. Year end profit sharing (on year end overrides from the Preferred Vendors) is prorated among the member Agencies based upon their individual production. Agencies keep 100% of the commissions they earn - the monies do not go through Signature/Virtuoso/Ensember - they go straight to the Agency (or Agent as some individuals are members as well). The Coop/Consortia get quarterly reports from the Vendors on Agency production - these are shared with the Agency so that accuracy can be maintained. One note - many members of these Coops/Consortia are Independants who work with various "Hosts".
As to individual Agents selling over $1 million per year - you MLMers may not be aware that this is pretty much the indistry standard now - as an employee, I am expected to produce over $1 million a year in revenues - with commissions averaging 13% of that revenue (remember some are still 10%, some because of my Coop are 16%, and some are net that I write up, and this also includes fees). This is pretty much expected of an Agent in the Washington Metro Area (MD, VA, DC) - any less and you would perceived as "part time".
Get it Proud? FYI, many.many Agents who are members of the Virtuoso, Signature, and Ensemble sell more than $2 million a year.
Just about every real Agent out there knows all about these three Coops/Corsoria - especially Virtuoso ... no surprise you had no idea at all.
LB--please do not become my next poster child for YTB.
ReplyDeleteI did not compare PROGRAMS. I compared sales, I compared numbers of agents, and I compared numbers of offices. Had I compared PROGRAMS, I would have looked at training, revenue shares, supplier relations, best practices, etc. See there is a difference.
One time you want to make sure we know you sell travel, and then when we compare travel you want something else.
Do you sell travel or not? I have an interesting post coming up that suggests otherwise. If you do, they what is the issue with comparing travel numbers?
My other comment was about how ludicrous it is that a TRAVEL COMPANY has no clue how much TRAVEL they sold. Yet can tell you up to the minute how many new recruits came in this hour. Where is the focus--never mind, I know!
And you keep wanting to discredit the depletion of stock. I have an S Corp. I believe in it through the good and the bad. I did not sell when commissions for airlines were 10% uncapped. I kept it. I also kept it through the bad, like two wars, SARS, 911, Norwalk, etc. Why? Because I believe in my business, I believe in myself, and I believe in the industry. Also, I am working the business and not pulling the strings on 136,000 marionettes.
It ought to concern each and every one of you that the ultimate insiders have been strategically selling their stocks when it was at high levels. It was at $18 a share earlier this year, now it is hovering around a buck. When it really started to tank and hit that $7 a share, that is when the sell off began. It may all be quite innocent, but if I invested in this business (no matter the level) I would question it and have a concern.
I am also in the DC market and for YEARS the rule of thumb for an agent was that they needed to bring in revenue (I define revenue as commissions and sales as sales or bookings) a minimum of three times their salary.
ReplyDeleteThis was before we paid on commission and my average agent was making $16 an hour plus some bonuses. That is $33K a year and they were expected to being in $100K in revenue from commissions and fees before qualifying for any bonuses.
We typically worked on a 10% margin when you factor in the airline commissions, fees, and other travel commissions, so they were required to bring in 999,000 a year in sales.
So for an average agent selling $1M they would earn $34K under that model. I had a corp agent that would do $2.6M in sales. Her percentage was lower (7%)since she was mostly air, but we also have agreements with several domestic and international carriers to earn commission. But she was bringing in $182K to the agency. Her take home at the end of the year. $60K in salary and another $15K in quarterly bonuses.
No it is not he hundreds of thousands that some RTAs claim to make, but it is a pretty decent living when you consider their household has another second working adult.
Frankly, it's a great living. And at least where I am, Agencies know all the Agents in the area - they know them from Trade Events, through Vendor Reps - they have a good idea who is producing and who is not. Consequently, when there is an opening at an Agency, these Agency Owners will go right to a person they may have been watching for a year or two and recruit directly - you rarely see ads in the paper for Leisure Agents around here because of that. Poaching happens constantly around here.
ReplyDeleteyes, the rule of thumb is an expectation bringing in 2.5-3% of salary in commissions/fees.
Poster child . . . give me a break. I have been straight forward with you any time that I post and you know it.
ReplyDeleteYTB did spend their IT resources the past 18 months on developing software to track recruiting. It is a great system and, yes, we know everything happening on that side of the business in real time. The IT investment on the travel side of YTB was spent on posting pending travel commissions in real time and upgrading our booking engine. The next focus is on travel sales tracking. It will be up to date and very efficient.
No one will convince you about the stock, John. An article in the local Alton, IL paper said "Tomer said he made a promise to the church several years ago that if the company’s stock ever reached more than $10 a share, he would pay off the mortgage. "It’s Superbowl Sunday, and it’s going to be a Superbowl service for us today," Pastor Daren Carstens told the congregation. J. Lloyd "Coach" Tomer scored a touchdown with his congregation at New Testament Fellowship Church, 3303 Homer Adams Parkway, after he gave more than $1.8 million in stock that will be used to pay off the church’s mortgage."
It is exactly what happened. There was no manipulation to get the stock to that price. It happened and he fulfilled a promise. On the Riverhouse Mansion, YTB would not have survived back in 2003 had he not sold it and invested in keeping YTB afloat. He made a deal with the Attorney with whom he sold it to buy it back in the Fall of 2006 when YTB's stock was around $3 per share. This very successful attorney made the deal and Tomer now owns the Riverhouse again. And it certainly is an asset being used to help fuel YTB's growth. Not some insider secret deal consummated to the detriment of the average YTB RTA.
Posterchild here...
ReplyDeleteAnd I have been even more straight with you. John..we do not just sell travel...we also sell online travel stores that will also begin selling travel sooner than later.
That's why IBTrav can tell you without reservation that our model will outsell anything the conventional industry can do..just a matter of time, also sooner than you'd expect or like.
You seem to still be having trouble understanding the difference between the two marketing models and methods.
Your not really that dense ARE YOU?
RobertsResorts.Net
Earl,
ReplyDeleteI think we all understand that you sell websites and travel. We get it. The question posed was how much travel do you sell. Not websites, just travel. And why does the YTB home office have so much trouble figuring out how much travel they have sold. Not websites, just travel.
Maybe we could all chip in and get them Quickbooks for Christmas.
When one starts a travel company with the objective to be the world's largest travel company, I would think it would be reasonable to invest in the infrastructure to track those travel sales. Maybe I am off the mark here but....
ReplyDeleteOn the stock. He uses it for hosting Reps and so forth. Makes it a good write off. But the fact remains that he holds very little stock in his own company and over the past several years, he, Sorenson, Brent, and one more whose name is escaping me right now, have slowly and methodically divested themselves of the stock of a company they helped to build.
IF YTB goes belly up, Coach has a great house paid in full. Brent has how many millions from his well times stock sales? What do the RTAs and Reps have for their time and money invested?
Not a lot. You do know that as independent reps you cannot file unemployment. So where are you then?
Just some questions I would be asking.
Speaking of YTB insiders...Is it true Phil Piccolo is now part of YTB? Google him.
ReplyDeleteAs it was once said, you don't have to like their coffee to realize that Starbucks provides a profitable product. Like YTB is involved in more than just travel sales, Starbuck's corporate bottom line reflects more than just latte sales: there's real estate rent, licensing fees, and accessories (mugs, cds, etc.) to name a few. In 2006, Starbucks indicated its goal is to move from 12,000 to 40,000 stores worldwide. By stock analysts and wall street projections, there will be a period of time in which licensing revenue will exceed sales on a per store basis. Investors clearly see the opportunity with a Starbuck's license, so corporate doesn't need a sales force...risk takers are standing in line with the checkbooks open.
ReplyDeleteGiven that YTB isn't a household name yet like Starbuck's, YTB's MLM opportunity is simply an option. An option for average people to earn an above-average income by helping increase the number of licensed travel stores. This expands YTB's brand deeper into the marketplace working toward their goal of being the #1 travel agency in the industry. Will a travel store owner's revenue from travel commissions ever exceed their licensing investment? Since I joined YTB, mine have; but realistically knowing MLM, some will, some won't. With a one time $450 initial investment and $50 per month license fee, it's easier to quit than it would be if it costs $500k or more like a franchise. Those who treat it like a $500 business and not the $500K+ business it can be may not take the opportunity to capitalize on it. It's numbers game, just like with Starbucks stores. The more stores, the bigger your presence, increased branding, the better chance of gaining market share over your competition.
So, if I wanted only to just sell travel as a full-time job, I'd look at getting a job as an employee with an agency merely selling travel. Instead, I choose to be a business developer and own my own part-time travel business and elect to exercise my option to help others do the same.
At one time I looked at a large B&M travel agency for a job ... pay was less than $50,000 a year and after the probationary period a travel agent was expected to book $1,000,000 annually in travel sales. And apparently it is quite common for their agents to do just that ... so why do YTBers think it is so unlikely for a single agent to exceed $1,000,000 in sales?
ReplyDeleteJohn: I don't even sell travel and I still sold travel.
ReplyDeleteRobertsResorts.Net
Does not mean I do not expect to sell a lot of it in the future.
Once you finally get me trained.
smile
"When one starts a travel company with the objective to be the world's largest travel company, I would think it would be reasonable to invest in the infrastructure to track those travel sales. Maybe I am off the mark here but...."
ReplyDeleteJohn, you are definitely not off the mark. But this is typical of people that are trying to work people over. Not a scam, I did not say that. It's about how you word things. They want to be the "largest" travel agency in the world. To me, that means they want to have as many people as possible working for them. Not best selling or most profitable travel agency. largest. Key word.
Oh, and please don't print articles that use football termanology laced into religious context. It made me throw up in my mouth. I get it that Coach is a religious guru or whatever. Former preacher, yada yada yada. It's not suprising to me that the people get into this use his religious background to show that he is an honest and repectable man. Don't get me started on that kind of scam...er, nevermind.
susan:
ReplyDeleteGood question...why then do you think it's so impossible, maybe even unethical, for someone in the travel industry...with a "ding-dong deal" to earn $1,000,000 in commissions doing it?
RobertsResorts.Net
"I am NOT comparing programs. THey are indeed very different. However, the product they both sell is the same. They have the same vendors (well, except those that canned YTB)."
ReplyDeleteJust a clarification - I do not believe Signature works with Carnival.
"Anonymous said...
susan:
Good question...why then do you think it's so impossible, maybe even unethical, for someone in the travel industry...with a "ding-dong deal" to earn $1,000,000 in commissions doing it?
RobertsResorts.Net"
Virginia - please show us that your reading comprehension is better than Earl's and re-read all this - Good Travel Agents (real ones) sell over $1,000,000 a year in travel - that is not $1,000,000 in commissions. that was very clear in each post tht addressed the issue.
No one in YTB (as an idividual) has proven - or even claimed - that s/he has sold $1,000,000 in one year, but there are thousands of Travel Agents (real ones) who do it year after year.
Susan said, "... so why do YTBers think it is so unlikely for a single agent to exceed $1,000,000 in sales?" If you're comparing travel sales, I agree it's not unlikely for a full-time agent selling travel only.
ReplyDeleteIf you're comparing total sales, with approx. 150K RTAs total, there's many RTAs that qualify for over a $1M in sales through their business channels. At $450 a license, that equates to about having 2,222 stores throughout their downlines. Did they sell it themselves...of course not. But that's the power of the Free Enterprise system of creating wealth, not just earning a commission or payroll check.
Of the 150K RTAs in YTB, only approx. 170 are full-time (Directors) and of those I would venture to guess that very few are concentrated on selling travel only. So, to even expect a YTB RTA to sell $1M in travel is not logical. The majority of YTBers are part-time. If they wanted to be employees and sell travel full time for $50k a year I'm sure they would do that.
Wow...of 150K RTAs and only 170 full-time. That equates to, what, 0.00113333 of the organization?
ReplyDeleteGREAT NEWS FOR YTB!!!
ReplyDelete- Alliance May Provide More Tours Than Any Other Travel Agencies -
WOOD RIVER, Ill., Dec. 12 /PRNewswire-FirstCall/ -- YTB International, Inc. (OTC Pink Sheets: YTBLA - News; "YTB" or the "Company"), a provider of Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, today announced an exclusive partnership with Shanghai Spring International Travel Service to market and sell tour packages to the 2008 Summer Olympics in Beijing, China. The packages will be available from YTB beginning on or before January 11, 2008.
In an effort to provide more tours to China for the 2008 Olympics than any other travel agency, YTB and Shanghai Spring International Travel Service, the largest privately owned travel agency in China, will offer exclusive 7 to 11 day tour packages and tickets for the Summer Olympics in August 2008. Through this strategic partnership, YTB's Referring Travel Agents (RTAs) are positioned to benefit from Shanghai Spring International Travel Service's dominant position within the Chinese market, and pass these savings on to their customers. YTB's customers will recognize value not only in terms of cost savings, but also in terms of the exclusive access to sold out events, attractions, and hotel accommodations.
"We are excited by our partnership agreement with Shanghai Spring International Travel Service, and welcome the challenge to become the largest tour provider to the 2008 Summer Olympics. Our RTAs have the resources needed to rise to this challenge, and we are confident that we will be able to provide our customers with the most professional service at the most competitive rates," stated J. Kim Sorensen, President and CEO of YTB Travel Network. "The Olympics remain the preeminent sporting event of our time, and serve as a major draw for travelers around the world to visit new destinations, and to enjoy live competitive sports. We look forward to providing our customers the opportunity to partake in history, as China holds its first Olympics."
The YTB and Shanghai Spring International Travel Service Tours will include round trip air to and from China via Los Angeles, Four Star accommodations including tips, baggage fees and taxes, daily meals, guided local tours, and admission from two to four Olympic events based on package and event preference. In addition, the YTB and Shanghai Spring International Travel Tours will also include safety insurance for visitors to China.
Shanghai Spring International Travel Service was founded in 1981 and started Spring Airlines in 2004, and currently operates eight aircraft traveling to 28 destinations in China and will be adding nine new airplanes to the fleet by 2009. The company is currently the only travel agency that owns and operates an airline in Asia.
"We chose YTB International because we wanted to work with the best Internet travel agency in the U.S. and one that would have access to thousands of potential customers," said Jenny Hu, Deputy General Manager of Shanghai Spring Tours. "YTB's high standards and great reputation, combined with their innovative business model, made partnering with them an easy decision."
Shanghai Spring has successfully purchased event tickets more than six times the number of any other purchasing agent or travel provider worldwide. In addition, Shanghai Spring has also reserved more hotel accommodations than any other agency to date.
To get more information on YTB's Olympic packages, e-mail travelinquiries@ytb.com.
About YTB International
Recognized as the 35th largest seller of travel in the U.S. in 2006 by Travel Weekly, YTB International, Inc. provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, and the US Virgin Islands. It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com division focuses on marketing online travel agencies through a nationwide network of independent business people, known as 'Reps.' YTB Travel Network division establishes and maintains travel vendor relationships,
books travel transactions of online travel agents (RTAs, now numbering over 135,000), collects travel commissions and pays sales commissions. Each RTA sells travel through a personalized Internet-based travel website. The REZconnect Technologies division builds online reservation systems for suppliers within the travel industry. For more information, visit http://www.ytbi.com/investor.
About Shanghai Spring International Travel Service
Founded in 1981, Shanghai Spring International Travel Service has been engaged in diverse business activities, including travel, hotel, flight, conference & exhibition, sports & games, real estate, trade and transportation, etc. Spring International Travel Service is the first ICCA (International Conference & Congress Association member in China. Spring International was appointed as the General Ticket Agency of 2004 F1 Shanghai Grand Prix of China. Persistent and concerted efforts by its more than 3,000 staff members (including tour guides) coupled with entrepreneurship have made it possible for Shanghai Spring International Travel Service to increase its asset value and sales revenue at an annual rate of 30% to 50% in the past years. Since 1994, Shanghai Spring International Travel Service has been doing so well in domestic tours that it has been commended as the No.1 travel agency in domestic tours in the country by China National Tourism Administration for 13 consecutive years. Shanghai Spring International Travel Service has established a network of branch offices in 33 major Chinese cities and 55 retail outlets in Shanghai and the surrounding areas, totally linked up by Internet. Seven overseas branch offices have started doing business in other countries around the world, with the U.S. being the most promising market with the announcement of YTB uniting as their exclusive U.S. partner.
GREAT NEWS FOR YTB!!!
ReplyDelete- Alliance May Provide More Tours Than Any Other Travel Agencies -
WOOD RIVER, Ill., Dec. 12 /PRNewswire-FirstCall/ -- YTB International, Inc. (OTC Pink Sheets: YTBLA - News; "YTB" or the "Company"), a provider of Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, today announced an exclusive partnership with Shanghai Spring International Travel Service to market and sell tour packages to the 2008 Summer Olympics in Beijing, China. The packages will be available from YTB beginning on or before January 11, 2008.
In an effort to provide more tours to China for the 2008 Olympics than any other travel agency, YTB and Shanghai Spring International Travel Service, the largest privately owned travel agency in China, will offer exclusive 7 to 11 day tour packages and tickets for the Summer Olympics in August 2008. Through this strategic partnership, YTB's Referring Travel Agents (RTAs) are positioned to benefit from Shanghai Spring International Travel Service's dominant position within the Chinese market, and pass these savings on to their customers. YTB's customers will recognize value not only in terms of cost savings, but also in terms of the exclusive access to sold out events, attractions, and hotel accommodations.
"We are excited by our partnership agreement with Shanghai Spring International Travel Service, and welcome the challenge to become the largest tour provider to the 2008 Summer Olympics. Our RTAs have the resources needed to rise to this challenge, and we are confident that we will be able to provide our customers with the most professional service at the most competitive rates," stated J. Kim Sorensen, President and CEO of YTB Travel Network. "The Olympics remain the preeminent sporting event of our time, and serve as a major draw for travelers around the world to visit new destinations, and to enjoy live competitive sports. We look forward to providing our customers the opportunity to partake in history, as China holds its first Olympics."
The YTB and Shanghai Spring International Travel Service Tours will include round trip air to and from China via Los Angeles, Four Star accommodations including tips, baggage fees and taxes, daily meals, guided local tours, and admission from two to four Olympic events based on package and event preference. In addition, the YTB and Shanghai Spring International Travel Tours will also include safety insurance for visitors to China.
Shanghai Spring International Travel Service was founded in 1981 and started Spring Airlines in 2004, and currently operates eight aircraft traveling to 28 destinations in China and will be adding nine new airplanes to the fleet by 2009. The company is currently the only travel agency that owns and operates an airline in Asia.
"We chose YTB International because we wanted to work with the best Internet travel agency in the U.S. and one that would have access to thousands of potential customers," said Jenny Hu, Deputy General Manager of Shanghai Spring Tours. "YTB's high standards and great reputation, combined with their innovative business model, made partnering with them an easy decision."
Shanghai Spring has successfully purchased event tickets more than six times the number of any other purchasing agent or travel provider worldwide. In addition, Shanghai Spring has also reserved more hotel accommodations than any other agency to date.
To get more information on YTB's Olympic packages, e-mail travelinquiries@ytb.com.
About YTB International
Recognized as the 35th largest seller of travel in the U.S. in 2006 by Travel Weekly, YTB International, Inc. provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, and the US Virgin Islands. It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com division focuses on marketing online travel agencies through a nationwide network of independent business people, known as 'Reps.' YTB Travel Network division establishes and maintains travel vendor relationships,
books travel transactions of online travel agents (RTAs, now numbering over 135,000), collects travel commissions and pays sales commissions. Each RTA sells travel through a personalized Internet-based travel website. The REZconnect Technologies division builds online reservation systems for suppliers within the travel industry. For more information, visit http://www.ytbi.com/investor.
About Shanghai Spring International Travel Service
Founded in 1981, Shanghai Spring International Travel Service has been engaged in diverse business activities, including travel, hotel, flight, conference & exhibition, sports & games, real estate, trade and transportation, etc. Spring International Travel Service is the first ICCA (International Conference & Congress Association member in China. Spring International was appointed as the General Ticket Agency of 2004 F1 Shanghai Grand Prix of China. Persistent and concerted efforts by its more than 3,000 staff members (including tour guides) coupled with entrepreneurship have made it possible for Shanghai Spring International Travel Service to increase its asset value and sales revenue at an annual rate of 30% to 50% in the past years. Since 1994, Shanghai Spring International Travel Service has been doing so well in domestic tours that it has been commended as the No.1 travel agency in domestic tours in the country by China National Tourism Administration for 13 consecutive years. Shanghai Spring International Travel Service has established a network of branch offices in 33 major Chinese cities and 55 retail outlets in Shanghai and the surrounding areas, totally linked up by Internet. Seven overseas branch offices have started doing business in other countries around the world, with the U.S. being the most promising market with the announcement of YTB uniting as their exclusive U.S. partner.
Sorry! Didn't mean to post this twice.
ReplyDelete"If you're comparing total sales, with approx. 150K RTAs total, there's many RTAs that qualify for over a $1M in sales through their business channels. At $450 a license, that equates to about having 2,222 stores throughout their downlines. Did they sell it themselves...of course not. But that's the power of the Free Enterprise system of creating wealth, not just earning a commission or payroll check."
ReplyDeleteTRAVEL SALES - not sales of websites, not building the down-line. Good old selling the trip sales....... can you tell us how many RTAs sold over $1million in travel - air tickets, land packages, cruise - again, NOT webistes, please? Please note that it is one of your own who questioned just how many "real" agents actually sell that much....
cta in md...being that YTB sells more than just travel, I provided views of YTBs two largest product lines (travel websites and travel sales).
ReplyDeleteAgain, your misunderstanding YTBs primary focus today of they're strategy to position themselves in the marketplace. Don't focus on travel sales. I'm not sure of their end goal, but whatever it may be, track their progress. If it looks like travel sales aren't increasing, then they didn't choose a good marketing model (MLM). Remember Tuppaware. They went direct to the consumer. Dell did the same. They focused sales only through Resellers back in the late 90s until profit margin on hardware shrunk to less than 1%. They led the industry by going direct to the consumer.
Yes, YTB sells travel. But the goal is to grow their lines of distribution without paying out a large multi-million dollar budget to a traditional marketing firm. Focus instead on what they're trying to do now and how they're selling licenses (or frachises if you will). Unless every RTA joins to go full-time selling travel, there's no comparing travel sales. The focus isn't the same for a Signature rep compared to a YTB rep.
Like the earlier comment, if they wanted to focus on travel sales right away, they wouldn't need a sales force. They'd just advertise like Expedia. But instead the elected to use an optional MLM model to compensate others to do the marketing if they so choose.
Well said Mario.
ReplyDeleteI really like the fact that no one at YTB actually knows how mayr RATS there actually are....some say 130,000 some say 150,000 and others say 100's are joining every day, but the numbers do not change. So I guess for every sucker that joins, some one gets smart and drops out.
ReplyDeleteOur agency does about 2.6 million a year in gross sales. There are 2 of us.
Ann CTC,
ReplyDeleteI read just fine, and was remarking on what John posted (without attacking)
"OK, making some assumptions here, but if each of the 310 locations employed 6 selling agents...that would be 1,860 agents responsible for $3 billion in travel sales. That works out to $1.6 million per agent! Kudos to Michelle and everyone in the Signature Travel Network--take a bow--you deserve it! You exemplify exactly what a real agent is!"
Ann, can you do $1.6 million in travel sales a year? A while abck when i posted about having $63K in travel sales, someone boasted about doing over $200K in travel sales and considered that as a good annual sales number for travel sales.
I also stated that the 1800 some odd agents for Signature was an assumptioin by John. I also assume that Signature has a lot more agents than that.
Can someone tell exactly how many agents Signature has?
I also wonder about the agent turnover rate of Signature. with their quota set, I wonder how many times they replace agents who don't meet the quota. i asked some very ligitimite questions.
I also wonder about the agent turnover rate of Signature. with their quota set, I wonder how many times they replace agents who don't meet the quota. i asked some very ligitimite questions.
ReplyDeleteYou still don't get what Signature is. And I assure you, once Agents reach the level where they can get hired by a Signature, Ensemble or Virtuoso Agency, they don't quit - there is low turnover and BIG money to be made. The only thing that happens is that Agencies that are members of those three poach Agents from one another.
AND Agents at that level have not problem selling over $1 million a year.
Proud--I don't recall the comment about 200K but $200K in commissions (not sales) is reasonable for a very good agent. Take a leisure only agent selling 1.7m at 13% and it exceeds that.
ReplyDeleteTo everyone, we need to be careful and explain what we are talking about. I call sales the retail price and what I invoice my clients. I call revenue the commission I receive as a result of the sale.
I keep posting this question, but I never get an answer...
ReplyDeleteIs there a YTBer on this board that is actually selling enough travel to earn at least $40,000 per in year in commissions after the home office takes their cut?
How much does a traditional travel agent make? That stats are a little old, but still not very good pay.
ReplyDeleteExperience, sales ability, and the size and location of the agency determine the salary of a travel agent. Median annual earnings of travel agents were $27,640 in May 2004. The middle 50 percent earned between $21,600 and $35,070. The lowest 10 percent earned less than $17,180, while the top 10 percent earned more than $44,090. Median earnings in May 2004 for travel agents employed in the travel arrangement and reservation services industry were $27,490.
CTA in md... I don't know much about YTB or Signature...only from what I read in Press Releases, but I think all on this board get what Signature is.
ReplyDeleteSignature focuses on building an organization of full-time travel professionals who's primary focus is only selling travel through traditional advertising mediums targeting consumers who prefer personal service.
If I understand your agrument correctly, your disagreement is with the fact that YTB doesn't follow the traditional model as Signature and builds branding through licensing the sale of their product through the masses, sells more than just travel (cars, flowers, event tickets, etc.) and does so through online channels targeting consumers who do not prefer personal service.
There may be more you disagree with, but to better understand your position, is that comparison correct?
Yes, Proud, I can do that.
ReplyDeleteBut I think Mario made a good point. And if it happens the pyramid will collapse on itself as there will be no more incentive for all those RTAs to join... The industry going net. Most suppliers frown on rebating, which is essentially what the majority of RTAs join for. They don't care about selling travel, they are more interested in getting a discount on their business travel or vacation travel (and, hey, if Aunt Mary wants to book something on the site, great!). But as long as they are getting back more than their investment? No problem.
As long as MLMs stayed small they stayed under the radar. Now YTB has ~150K RTAs out there, the majority of whom are self-selling (rebating), and I hear the goal in the next few years is to have 1.5 million RTAs. Do you really think suppliers are going to continue to pay commissions (rebates) to people they could get at full price if they were not with YTB (or any other MLM)? Because other than those sales, those RTAs are producing the big goose egg for suppliers. The choice for the supplier is to 1) drop YTB (as RCI and other operators are doing), or 2) go net. Those of us who have been in the industry and watched the airlines as they dropped commissions are seeing the set up now. YTBers think this is all sour grapes with us - it's not.
Travel is not your typical "product" - YTB nor the traditional agent makes this commodity, we are simply middlemen in the selling process. The supplier will only pay a middleman to peddle the product if they can show they can either do it cheaper, better, or add value to the transaction. Travel agents traditionally have been able to do it better and add value. Better and adding value in terms of moving market share and the customer service we bring to the table. Do you think suppliers will long continue to pay a commission to someone who buys a website to book their own travel? And even to those who book some travel to family and friends, when the supplier is the one who ends up having to deal with the customer service issues? What's the point? Go net and save those commissions.
And if suppliers go net, what's the incentive to buy a website?
This is Metre and I was trying to leave you a picture of my beautiful cars and home for you to be angry that you drive a FORD, Fix or Repair Daily, but I can't post the photos...oh well send me your e-mail and maybe I can e-mail them to you. Remember we are not wealthy from YTB, we got in on Microsoft stock...made good investments, husband is a retired officer from the USN, and we own a business...AND I do YTB for fun and leisure...anything else you want to know? Yes my goal is to still have that Cocaine White Bently and that is a Cali term...
ReplyDeleteAnn...surely you don't think that all (or even a majority) of YTBs travel sales come from RTAs? There's too many dollars in YTB travel sales to even consider that as a remote possiblity.
ReplyDeleteAnn said Do you think suppliers will long continue to pay a commission to someone who buys a website to book their own travel?
Again, people commenting on this board that don't understand MLM Travel and it's evident by her exact statement. RTAs don't buy a website, they license it; and I would venture to say that no RTA has ever received a commission check from a supplier for travel book through the RTAs website.
Suppliers pay the host agency. The host agency then pays out marketing/sales commissions. This is no different than how Expedia pays their affiliates for driving travel sales through their website, except they keep even a larger percentage.
So, yes, I think suppliers will continue to pay all host agencies (even their direct affiliates) their due commissions for retail sales no matter where the sale generated.
Furthermore, sales made throught the website are retail. When an RTA buys travel through their own website, there's no special pricing just for them.
Dang it!, John. You're posts really are great conversation pieces, but what the heck...can we please try to keep these people on topic.
ReplyDeleteEvery time I get about 10 comments deep, they all turn into explaining Business 101 and Anerica's Free Enterprise system to those not familiar with MLM.
Don't be disingenuous, Jamal. Of course I know that the commission goes to YTB who then disperses it to the RTA. And when looking at the numbers of RTAs versus sales, the suppliers are going to come to the same conclusion - the average sale per RTA supports the premise that the sales are personal.
ReplyDeleteWhy should a supplier continue to pay commissions to any MLM whose "agents" are simply consumers who have (ok) bought a license to a website so they can get a rebate on their travel? That is not the purpose of commissions.
And AFA this, "surely you don't think that all (or even a majority) of YTBs travel sales come from RTAs? There's too many dollars in YTB travel sales to even consider that as a remote possiblity." This just tells me that an awful lot of people have paid their $499 and $50 a month for nothing. Unless, of course, they are only working the MLM side of the business, which brings us back to...
Just what is YTB's business? Selling travel or websites?
Nick - you're sort of right. Signature (and Virtuoso, Ensemble, Vcom, TravelSavers, etc.) are Consortia - collections of indpendent agencies - they are not "hosts".
ReplyDeleteSo the Agency I work for joins one of the above and buys into that Consortium's (or Coop's) marketing plan and from day one has higher commissions based upon the sales of the entire group - so HAL commissions may be at 15% from Day One. Many services are provided by these groups besides marketing - kind of hard to explain them all. Technically, I suspect a YTB RTA could actually join one of these, continue to use YTB as a Host (paying for and simply using the website for instance) but make sales based upon the Consortium's Vendor Relationships.
SOME of these groups require proof of a certain number in sales with their "preferreds" before you can join. Others, I think Vcom is one, require nothing but that you pay up.
I just wanted to add ...
ReplyDeleteThe top Consortia are highly sought by Vendors - Vendors PAY big money to get into those groups as "preferred" (funds that go to join marketing, etc.). The Vendors seek to be involved with these groups because they KNOW THAT THE MEMBER TRAVEL AGENTS MOVE MARKET SHARE BIG TIME. The top three - to which Vendors most want access are Virtuoso, Ensemble, and Signature - mostly because those groups keep their "preferred" lists small and manageable so that there are fewer vendors "dividing the pie". Vendors make a point of going to the Groups' annual meetings - for which they pay their own way - and participating. Vendors vie for the ability to sponsor sections of tese meetings (and pay for these), etc.
Ann,
ReplyDeleteI would also like to point out to you that FAM trips are initiated to the travel agencies/agents, and they have the power to regulate them. In other words, if they see that a FAM trip is being abused by an agency or agent, they can retract the fam trip from their use.
Also, when a YTB agent takes a FAM trip, there are NO commissions paid from the vendor to YTB or the agent.
Most FAM trips are calculated so that it is relatively equal to the cost of retail minus the commission (that would have been paid out).
The retail cost of a trip is higher than what it would cost a vendor to set it up.
Any way you look at it, the vendor always makes a profit! ALWAYS!!!
Not to mention... kickbacks! I'm sure we all know what those are. Well, let me assure you that the travel vendors receive their share of kickbacks as well.
It's not just travel, but simple economics.
Not bad for a YTB RTA... eh?
Proud--you could not be any more wrong. It is embarrassing when things like this are said.
ReplyDelete"A word about discounted travel and FAM trips: Many vendors in the industry provide discounted travel to qualified travel agents. The reason they do this is to FAMiliarize the agent with their property, products and services, thereby promoting full-fare customer bookings."
ReplyDelete"Some travel vendors might enforce additional booking requirements that are stricter than YTB’s, and YTB will honor those requirements."
It's all at the discretion of the vendor John. YTB does not create the FAM trips.
Next time you go to a hotel, ask them how much it costs them to operate the hotel each day. Then ask them how much sales they generate each day. I guarantee you there will be a large amount of profit there.
Are you saying that when the traditional travel agents take a FAM trip, they still get paid a commission on it? That's called "DOUBLE DIPPING".
ReplyDeleteNo, your notion that a FAM trip is just the net cost of a trip is the latest ludicrous statement to which I was referring.
ReplyDeleteI didn't say that it was in all cases, but FAM trips could be anywhere from 40% to 80% cheaper than retail.
ReplyDeleteEither way, the vendors are still making money, because even at an 80% discount, the cost of the trip is more than what it would cost the vendor to produce it. Vendors will never cheat themselves out of a profit. Also like I said... there are also kickbacks.
It is the vendor that sets up the FAM trip, and it is the vendor that controls the cost. it is also up to vendor to either allow a travel company to use a specific FAM trip... or retract that privilige. Since there is no visible proof that Pirello's FAM trips were being abused by YTB agents, and they didn't take the initiative to retract the FAM trip from YTB's use, I tend to believe that they just decided to ride on the coat tails of RCCL.
Proud, you have absolutely no clue.
ReplyDeleteWow - you really have no clue what a FAM trips is. The most I've ever paid for a FAM trip covered the air taxes and any soet of exit tax imposed by the country being visited. NOONE - not Vendor or Tourist Board makes a cent off of these. What you are talking about are net rate trips labeled as "FAMs" by Vendors who are trying to dump distressed inventory. In those cases you are just buying a package at "net" and are not expected to do site inspections, etc.
ReplyDeleteThe best FAMs are put on by Tourist Boards anyway and you are unlikely to get those invitations - into the Caribbean they are almost always $249 from the East Coast (covers all those taxes) - but you are meant to WORK on these FAMs - they are not vacations.
Interesting,
ReplyDeleteHaving been a former owner of travel agency, I have been on both sides of issue since I am also an advocate of word of mouth advertising, or as some like to say, MLM or network marketing.
The reality is, travel is not an easy business to make a significant income with, unless you have a client base already established. I made barely enough to cover expenses in the first few years, and never made more than
$40K, and this was 20 years ago before cuts in commissions from industry.
Simply put, I saw the MLM card mills upsetting my rather lucrative outside agent training course which was always filled, so seeing this trend, I sold out just before last recession, thank goodness. lol
With all these MLM deals tainting the industry with suppliers, finally, it amazes me they still are growing, while we all know most never make more than a few bookings a year, usually family vacation, and perhaps a friend, but come on, most in MLM travel are not coming close to qualifying as a legitimate travel agent, and here lies the problem why the industry is against MLM.
There is nothing wrong with MLM concept, but like the blog states, they do not mix well with so little commissions being paid on travel. This is why in all cases, more is being paid out and earned on recruiting than on travel, and why many are being scrutinized by FTC and industry suppliers.
It is just a matter of time when all MLM's will have to prove retail is equal or more than distributors sales, and then what? Well, simply put, all MLM travel deals will not qualify, and they will be closed down. If no one is booking retail non distributor travel, yet earning from recruiting others, it is all but over.
Having researched the industry for decades, from agency side, as well as MLM side, I have not seen one model worth getting excited about. I always loved the business, but not the money, to many hassles for too little commissions.
With new Travelencia entry, I must say, they have the right concept, even if they are MLM, there is no high cost of $500. to $600. start up fee, and none of the hassles of booking, for is utilizes travel membership club strategy, one where similar discounts are offered, but none of the hassles, or look of illegal pyramid.
Finally, a travel concept for the masses, and at only $50. start up and $19.95 a month, plus one of the largest missing ingredients for travel industry, interest free no credit travel trip loans, this could indeed change the travel industry forever.
With recession getting deeper and deeper, money is often the issue when planning trips and vacations, so now Travelencia offers first all in one solution, the money, and the access to wholesale discount FAM like prices without the high cost to access these other MLM travel deals. Sure made sense to me, and with the Unselfish Wealth marketing strategy where everyone has to commit to help others, this one is the first to get my attention and want to get back into travel, but not all the way back. lol
Travel-FAMS.com