Thursday, March 13, 2008

Wave Season Ends & Gleaning Season Begins


It is amazing how much can change in 14 days. The cherry blossoms in DC can come and go. Stocks can plummet 20% or more. And income disclosures, apparently, can fluctuate as well.

On January 25th, I received the 2007 Income Disclosure from YTB and have been referencing that document in many of my entries as well as comments. But it appears that now the "tour" has ended, the numbers have been changed. I want to be clear, it does not affects many people--only 6, but the changes were very significant. I wonder if the Gleaning Department may be in need of some basic training; or maybe this was just practice for the Travel Weekly questionnaire.

On the new and improved income disclosure:
  • The Level 5 Directors (1) income was increased by nearly half a million dollars ($466,524.30)
  • The Level 6 Directors (2) income for the top earner was increased by a hundred thousand dollars ($102,153.02); this increased the average income by over fifty thousand dollars ($51, 076.51)
  • The Level 7 Directors (3) income for the top earner was actually reduced by more than half a million dollars ($652,492.86); the low earner income was increased by almost half a million dollars ($473,288.75); and the average income ultimately was increased almost one hundred thousand dollars ($84,385.20)

Maybe having someone appear to earn nearly $5 million dollars looked good on papers handed out to the 30,000 people that attended the Founder's Tour. Maybe it did not look too good on SEC reports?

Had there been changes at the lower levels, I could almost understand this. However, these changes are involving 6 people at the highest levels. How does one under-state income by half a million dollars? One hundred thousand dollars? Fifty thousand dollars? How does one over-state income by almost seven hundred thousand dollars? And again under-state it by close to another half million dollars? Not much else to say but "wow"!

I know that YTB has had problems in the past figuring out how much they earned selling travel, now it appears that the same problem plagues them when it comes to figuring out how much they are paying their Reps. There is a wonderful program from Sabre called TRAMS Back Office. I know it is an amazing concept, but it will let you know how much you sell and how much you spend. No gleaning required! Hopefully the 1099s were correct since the revised numbers are dated after the date the 1099s were due.

The latest glean of the income can be found here. And if anyone would like to see the original gleaning, I can email it to you.

19 comments:

  1. So if I am reading this correctly, less than 20% of the current reps with YTB are earning any income? And despite the fact that we have heard repeatedly that YTB creates a new millionaire every day, there appear to only be 6 people who are actually making that income level.
    Very, very interesting stuff John.

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  2. This has been hashed before but this also bears repeating..95.6% of the Reps in YTB earned less than $91 dollars last year.

    Not Proud...he he is a level 1 director that says he earns millions--although the chart may say otherwise.

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  3. I am not getting into this again. Just point out where I actually said I was making millions!!! You can't, because I NEVER said that! I am, however making hundreds of thousands annyally. When I reach level 3, I will be making millions, but I still have to get to level 2 first.

    You are such a LIAR!!!

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  4. Also john, if you look closer at the chart YTB provides, you wil notice a column stating how many hours per week a REP puts into the business clearly affects how much that REP earns by the end of the year. Of course a REP who only puts in 1 hour a week (52 hours a year) isn't going to make too much. There's a lack of effort there. Look what happens as the amount of time a REP puts into the business does. That REP is making more money!!!

    80% of the REPs may not be actively promoting the business... puttting in 52 or less hours into the business per year. No effort = No pay!

    77% of the active REPs are making between $8.50 and $19,000 a year with YTB in 2007. They are putting in about 2 hours per week.

    In my first year, I made $14,000 (and change)from the marketing side alone. That was fine, because at the time I still had my other job. Depending on the week, I did work the marketing side of the business either 2 or 3 hours on the weekends. I still had my wife and children that I needed to spend time with. Weekends were my only real free time with them. I was basically a weekend father. On weekdays, I'd wake up early to get to work. When I got home at night, I only had about 2 hours to spend with my family before my kid had to go to bed, and so would I so I can run the same routine the next day. Now I get to spend most ot my time where I need to be... at home with my family! Yes, I'll go to meetings, and meet appointments with prospects, but it's not an everyday thing. when I have a choice to see my kid's game, recital, or play or meet with a prospect, I can put my family first. This is what YTB has done for me. yes, I have said it before, and I will ontinue to say it.

    Now, people can fail. I'm not going to deny that. if they fail, it is by their own fault. Maybe they don't stay plugged into the meetings. Maybe they don't use their upline for help. Maybe they use the wrong approach with people. Have you ever heard of the color coding system of people? Everyperson is made of different personality colors (red, blue, green and yellow). One color may be more dominant. You won't use the same approach with a red dominant person as you would with a yellow dominant person. Maybe the right words are there, bu the body language is telling a different story. A person's body language is far stronger than a person's voice. One can speak as confident as they want to, but one slightest wrong move with the body may project a hint of uncertainty.

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  5. uh huh. So it's not about travel. it's about the marketing...the selling of websites. As we have been saying all along.

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  6. Proud, who are you? Is there any way we can verify that you're rich, rich, rich and will get richer with YTB?

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  7. Proud-I would think someone with your background and superior education would be able to spell.

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  8. It also seems that the YTB people are very silent on this subject. Only a few posts compared to over 50 on other subjects. I assume they cannot dispute their earnings or lack of earnings.

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  9. Look, t he spelling plice are here! Like I said in another topic, there are plenty of times where everyone here has misspelled... even John! This is the only thing you can complain about... LOL!!!

    YTB is about both... travel and marketing. There are RTAs in YTB who do just the travel part.

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  10. YTB is about selling websites. Selling travel is secondary, and a poor second at that. Tell me proud, would you be wth YTB if they were a legitimate host agency and webstes were not for sale and not the primary revenue stream? Would you have joined YTB for 500 and 50pm if all you could do was sell travel and earn a split commission?

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  11. Eddie,
    I'm not Proud, but I know the answer to your questions is absolutely no. Here's the only reasons why people pay the $500 and $49.95 per month:

    Hello John,

    I would like you to bring me a similar document like the one I have prepared for you. I want to see all the ways the World Ventures compensates their sales force and earns their revenues. Please bring this document with you to our meeting.

    Thanks,

    -- Rod

    No other home-based travel company mlm or otherwise compensates their ICs anywhere near what YTB's copyrighted compensation plan does! Here are 16 streams of income I came up with. I didn't include the earnings you will save on your income tax deduction.

    1. $6000 Income Guarantee Program (This is a marketing business campaign)

    2. Earn 60% of the Commissions paid on Travel Sales

    3. Earn 10% override on all travel commissions of RTA’s within your power team ( Such as a broker who overrides an agent's sales) (Traditional Agents, you ought to get one of those YTB online travel agencies and become a Power Team Leader!)

    4. Earn bonus of 50% bonus of the travel commission -- When a RTA in your Power Team earns $1,000 in travel commissions in first 6 months YTB pays you 500 dollars

    5. Earn 100% commission matching bonus of the travel commissions - -- When a RTA in your Power Team earns $5,000 in travel commissions in first year YTB pays you $5,000 match

    6. Earn 10% override of all travel commissions paid to YTB from travel bookings of the Non-profit agencies/Corporate accounts you sponsor (This is like a broker’s override commission of an agent's sales)

    7. Earn $300 commission on everynon-profit association you personally enroll. Below is a link to an outdated powerpoint presentation of the YTB Non-Profit Agency Travel Affinity Program.
    How many non-profit agencies can you think of that could benefit from having their own travel site?

    YTB Non-Profit Association Program

    Here's a link to a non-profit agency travel site up and running:
    http://www.etbutravel.com (check out the desktop icon install button)

    8. Earn $50 Referral Commission for everyone you sponsor

    9. Earn $50 Power Team Commission on every RTA and non-profit association account added to your power team (keep in mind other people are sponsoring these people as well--not only you)

    10. Bonus of earning 50% of the commissions from the marketing commissions from every REP’s you enroll. (You get paid ½ of the amount other people do.)

    11. Earn residual income of 4% of $49.95 monthly licensing fee in monthly paid from every RTA enrolled in your Power Team

    12. Leadership Bonuses
    ____You get paid $1,000 for every 6 enrolled RTAs in your Power Team whether you enroll them or someone else enrolls them
    ____You get paid $10,000 for every 100 RTAs enrolled in your Power Team (You include the work of all the other people's recruiting efforts whether you enroll them or someone else enrolls them.

    13. Travel Director Bonus – If you earn $25,000 in travel commissions per year you are eligible for $150,000 life insurance policy and Guaranteed Acceptance Blue Cross Blue Shield PPO health insurance. (The best there is out there)

    14. Director Bonuses
    ____Level 1 $150,000 life insurance policy and Guaranteed Acceptance Blue Cross Blue Shield PPO health insurance
    ____Level 2 Directors receive a $50,000 director's bonus
    ____Level 3 Directors receive a $100,000 director's bonus
    ____Level 4 Directors receive a $250,000 director's bonus
    ____Level 5 Directors receive a $1,000,000 director's bonus
    ____Level 6 Directors receive an additional $2 residual income paid on every RTA in your Power Team
    ____Level 7 Directors receive an additional $2 residual income paid on every RTA in your Power Team

    15. Profit Sharing
    ____Level 1 Director -- Minimum $2,000 per month
    ____Level 2 Director -- $4,000-$8,000 per month
    ____Level 3 Director -- $8,000-$20,000 per month
    ____Level 4 Director -- $20,000-$64,000 per month
    ____Level 5 Director -- $64,000-$150,000 per month (YTB is currently paying 1 RTA this bonus)
    ____Level 6 Director –- Off the chart (YTB is currently paying 2 RTAs this bonus)
    ____Level 7 Director – Way off the chart (YTB is currently paying 1 RTA this bonus)

    16. Reimbursement of the monthly $49.95 On-Line Travel Agency licensing fee if you personally enroll 6 RTAs as long as at least 6websites remain active the entire month.

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  12. But Rod, except for the 60% commission you earn on sold travel, all of the above you have listed are dependent on you selling YTB to someone else! So, the question still remains, if the only revenue there was to make came from the sale of travel, how many people would have actually signed up for YTB and their 60% commission, when there are higher commissions to be earned out there?

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  13. Then sell websites, Rod. You are not, and never will be a ligitmate travel professional. And what the heck good are all those promises if you can never achieve them? The travel industry does not need you.

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  14. Anonymous and Eddie,

    No one would sign up with YTB if all they paid you is 60% of the travel commissions. As you saw in my last post, the supplemental overrides is what makes YTB so attractive.

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  15. As an additional comment, I do agree with Rod that YTB is better at ripping off the unsuspecting than Traverus. He and his downline are a very good example of that.

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  16. Rod -

    I am very sad.

    It is obvious from a rather involved thread that we had going on TW that you are resourceful and willing to learn. I felt from that previous exchange that you could actually make a pretty good Travel Agent some day. I begged you then to leave YTB and work with legitimate host. Then little by little you started to show us that you do not always learn the appropriate lesson - you posted that you had too much invested over two years with YTB to consider moving your business elsewhere so that you could actually make a living. And now here, on this blog, you post over and over again that you yourself are totally at fault for your "failure". the truth is that you are partially at fault - for sticking with a business model that will not produce unless you suck others into the MLM part/scheme of the business. You are indeed a victim of the "kool aid" - they are trying to convince you that you ar not worth success - this enables them to keep you in their down-line and to keep reaping benefits off your back. Rod, only the people you know are going to go to your website - and you will only profit from them if they are willing to spend on vacation - strangers will not - YTB's marketing is wholly dependent upon you working yourself to death to get "spenders" to your site/you. There are many other marketing models that will work much better for you. If you indeed wish to make it in this business, you owe it to yourself and your family to look to legitimate (non-MLM) hosts to do so. The tragedy here is that you have accepted "their" (your directors?) explanation that YOU are incapable of success, when the truth is that very, very few will ever make it with YTB as sellers of travel itself - you can only make it big selling websites.

    Please Rod, come to the light.

    DCTravelAgent

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  17. Rod said:
    'No one would sign up with YTB if all they paid you is 60% of the travel commissions. As you saw in my last post, the supplemental overrides is what makes YTB so attractive.'

    Thank you Rod. Your verification that you have no interest in selling travel is appreciated. May I use that quote as an example of your disinterest on other travel forums? Or would you rather do that yourself so others may avoid similar pitfalls as you have encountered with 'success' at YTB.

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  18. So just currious, why are you guys devoted to bashing YTB? What about Traverus, Coastal Vacations, GMT and the other ones. If any travel program out there lucks "fishy" i would have to say Traverus ranks about as high as it can get! I mean come on "paid" celebrities to endorse them. What are they thinking?

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  19. As far as I am concerned they all fall in the same class. The difference is that YTB is a lot larger and there are more untrained people out there spouting off. Also they are publicly traded and most of their information is available for review.

    But they all work off the same principle---recruit others and let the newbies support the ones in at the top of the pyramid.

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