Travel Agent Show Recap

Earlier this week, I had the opportunity to attend and exhibit at the Baltimore Home Based Travel Agent Show & Conference. All in all it was a good show and some good quality vendors. I was disappointed that Denyse and I did not connect as I would have loved to hear her impression of my challenge to her.

I asked Denyse to simply approach a variety of vendors and without identifying her host, just begin a conversation about YTB. I did, and the result was as expected--they feel YTB is a necessary evil. (Those are my words and not theirs) Many of the smaller niche suppliers were unaware of YTB.

I spoke with many YTB people and many are very happy with the program, but there were also many there whose purpose was to find a new host. I know for a fact that 4 RTAs signed up with Travel Planners at the show. One RTA that I had had a very contentious email fight several months back, actually hugged me and said I was right all along and she was done with YTB and her four friends who were in YTB are going to be getting out as well. To be honest, as she was coming up to me, I was not sure what to expect and hoping for a kick to my good knee! To Nia, if you are reading this--thanks for your honesty and for the hug. For the record, I do not hug and kiss men as some others may.

I did not see any YTB Police presence. If they were there, they were well undercover and likely not doing their job. There were no green t-shirts, and at the travel events (classes, meal functions, trade show) there was no recruiting. But up near Einsteins Bagels, a Rep was running what amounted to a three card monte game. He had his laptop open and was showing the presentations--he was surrounded by other Reps and RTAs all hanging on his word and agreeing that it was the best investment anyone could make, etc. Then he offered to to pay for a CLIA membership to anyone that signed up under him before the end of the show. Granted, this was not at the show technically, but it was in a high traffic area where those attending the show (and the NeoCon conference as well) would pass to get to the classrooms and ballrooms.

Which brings me to the point I made yesterday about the huge loophole for CLIA and their membership. This YTB Rep was offering to pay $399 for a membership because he earned much more from having the downline. The new RTA then needs no training, no enrollments in the ACC or MCC program to obtain the identification card. This loophole will not work in a SOT state (MD, VA, DC, NJ, and DE are not). CLIA acknowledged this loophole but felt that few RTAs would pay the additional $399 to become members.

Let's take a look at getting a CLIA card the right way through YTB, the loophole way, and Monte's way:

Option 1: Attend FCT at a cost of $149. Take a CLIA exam online at a cost of $30. Enroll in the ACC or MCC program at $65. Apply for the identification card at $49. Total cost is $293.00. Now keep in mind, in order to maintain this credential, you need to complete the ACC or MCC program which include numerous courses (additional money), numerous ship inspections at your expense, several personal sailings at your expense, and actually selling. Without knowing the details, the cost of these extras is probably close to $2500 at a minimum.

Option 2: If you are in a non SOT state, open a business checking account and pay CLIA $399 for an agency membership. Apply for the identification card at $29--it's a reduced price for the first two cards. Total cost is $428. Yes it is more, but there are zero requirements at this point. Yes you need to renew it annually, but renewals are discounted. And if you are in it for the perks (as most are) one reduced rate sailing would more than pay for the membership and the card. And if the ACC requirements are $2500 you can renew CLIA for nearly 7 years!

Option 3: Let Monte pay your $399 and you fork over the $29 for a card. Total cost $29

I had the pleasure of overhearing many of the questions being lobbed at CLIA at their booth and one I heard a lot was, "What forms do I need to fill out to get the free cruises/discounts?"  No inquiry on the requirements, what CLIA does, the training, the changes. Mostly about how to get the perks. A Traverus member even argued with the CLIA representative that he indeed did have a CTA because he bought the Traverus website.  I am still at a loss why The Travel Institute allows that to go unchecked. There was another argument from a current CLIA cardholder that was very upset about the production requirement for her to renew the card through YTB. The end result was she was told to "suck it up and sell some cruises".

CLIA Close This Loophole

It was just brought to my attention that CLIA has a gaping loophole in their new requirements for the identification card.  This is the policy for 2009 and the bold emphasis is mine:

Please remember, prior to submitting your application for a 2009 CLIA photo ID card, the following qualification requirements must be met:

1. The individual agent or agency management must be affiliated with an active CLIA travel agency holding 2009 membership. Please encourage your travel agency to join or renew their CLIA membership early to avoid any delays in your application processing.

2. ID Card applicants will be required to complete and pass the exam for at least one annual recurrent CLIA live training seminar or CLIA online training program not previously submitted prior to applying for their 2009 cards.

3. 2009 ID Card applicants are required to be enrolled in, or to have achieved a designation (ACC, MCC, ECC, ECCS) in CLIA’s Cruise Counselor Certification Program.

4. In recognition of the owners and managers of CLIA member travel agencies who manage the agency business but are not necessarily front-line sellers of travel, each CLIA Travel Agency is entitled to a management allocation of no more than four CLIA ID Cards for which the above Certification qualification is not required although annual CLIA recurrent training is necessary. Promotional codes to facilitate this management allotment are available to CLIA travel agency management via e-mail confirmation with online membership renewals and within the 2009 CLIA membership kit sent to the agency upon membership renewal.

As this relates to YTB, they have "upwards of 117,000" independent business owners that would qualify according to point 4 above. So for $399, any RTA can join CLIA as an "agency" and receive 4 identification cards.

Since YTB claims that $149 will get you CLIA Application APPROVAL, I wonder if they are not indeed subsidizing this.** As they have lost the ability to market the perks (IATAN, production requirements, and the new CLIA requirements), perhaps they made a business decision to move the training online behind a firewall, charge $149 for it (although once production costs have been recovered there is no real cost), and then subsidize the balance of a CLIA membership (not an ID card) for the RTAs that take the class.

** YTB Corporate is not subsidizing this, but I do know for a fact that some resourceful Reps are indeed doing it. From the HBTA show this week, a Rep was holding a "recruitment session" outside the Einstein Bagels kiosk at the Convention Center--he was not recruiting on the floor or approaching anyone, but like a 3 Card Monte game on the street corner there was enough buzz to generate a crowd. Well sure enough, he was offering to pay anyone "full CLIA dues" to get the ID card if they signed up with him before the end of the show. More details on the show to come!

YTB's New Presentation

YTB launched a new presentation on all of their marketing sites last week. I watched it and it is a great presentation and I suspect that it will lure in a lot of people. They touched the hot spots--failing economy, bank failures, job losses, etc.

They showed a graphic of an upswinging stock chart--not sure whose it was.

They featured a lot of the Royal Caribbean ships in the video as well. Has there been a change since Kim's demonstration of tap dancing? Does the new marketing guy (who apparently made this video) realize that YTB cannot sell them?

Absent was all of the promise of riches and perks which is a good thing and they really did focus on selling travel. Now if they might be a little bit more forthcoming and let the prospect know how much they could earn it would be better. There was no mention of recruiting, but there is another video highlighting that--just click on the "Take A Look At YTB" link.

They also touted the $226M and $414M in travel and they said that those numbers represented travel sold "through their websites". And we know that is not true because according to Travel Weekly, the RTAs (both personally and through their websites) only sold $211M last year.

But it is another step in the right direction. Did it go far enough to call off the dogs that are suing them? Doubtful. I see this like a rapist that is caught red handed and now before trial claims that becasue he promises to not do it again and has not done it for a while he should be set free.

What do you think? Go to www.ytb.com and click on "Company Presentation".  Let's discuss!

A Contradiction

I keep reading about all the fortunes to be made with MLM and travel. Even the comments in yesterday's post brought out claims of $100K (revised down to $75K) worth of travel sold by an RTA.  Despite what the public record shows, it seems everyone is making tens of thousands of dollars each month. If this is the case, why is it that these same people all seem to favor Barack Obama in the upcoming election? If you look at the two tax plans, the folks in the MLMs should be supporting McCain.

Look at this chart from the Washington Post comparing the two.

Unless, the claims might not be as true as they say. Makes one wonder!

Travel Weekly Virtual Summit

Well there was a recap posted on this blog. I know that there were many people on the call, so let's discuss. Did Kim do a good job? Was he honest? Did it resolve any of the "misconceptions"?

If you missed it, the talk is archived here. But if that does not work, try this link and navigate to the Auditorium and then click on the white panels on the stage to get to the last one.

Let's discuss in the comments!

Did CLIA Sell Out? Probably Not!

NOTE: The title has been changed, and this morning I received a response from Jim Smith, CTIE, Director of Marketing for CLIA who offered the following:

Contrary to what was posted on your blog and for the record - when it comes to CLIA certification, membership and all related programs - the rules are the rules for everyone. There are no exceptions.

Jim Smith, CTIE

I thank CLIA for clearing that up, but now I direct my attention to YTB and the misinformation they presented in their Travel Compass.

Being in Washington, DC, you get used to politicians sliding in a little pork for their constituents. I was not expecting it from CLIA however.

According to the YTB Travel Compass (10/23/08) where they overview the FCT training program they slipped and showed a little pork. Apparently, for people that want to get a CLIA card without bothering with all of the pesky requirements like selling cruises, they can do it through YTB for $149--unless you are in California.

The industry praised CLIA on upping their requirments, but now I wonder what the reaction will be when they see this? I mean, it may almost be less expensive to join YTB and pay the $149 to watch the FCT Video and get your credentials than to bother with selling cabins.

And while I felt that the FCT was a small step in the right direction for YTB, apparently it was merely some more smoke and mirrors to grant the perks that they use to sell the program. Now, when I join YTB for $449.90, I get an Affiliate Card and 60%. But by paying then an additional $149, I can get the RTA card that they claim is so valuable, can call myself a Referring Travel Agent, and not have ANY production requirements. As an added bonus, they will throw in a CLIA Card.

I have a message into Terry Dale as this is being posted to verify if this is indeed true, or merely another round of misinformation coming from YTB!

WHAT ARE THE FIRST CLASS BENEFITS I WILL RECEIVE?
There are many travel business advantages given to you upon completion of FCT. They include a new commission structure for the RTA (RTAs receive 70% of the travel commissions paid to YTB Travel Network), direct relationships with vendors, group booking advantages, access to enhanced features in the Travel Portal, CLIA application approval (except in California where production requirements must be met) and more.

and

REFERRING TRAVEL AGENT (RTA): A Referring Travel Agent is an Affiliate who has enrolled, paid for, and completed a First Class Training. An RTA who has accomplished this will receive 70% of the travel commissions paid to YTBTN for travel booked and completed by the RTA's customers and may apply for the "RTA" credential (no production requirements are necessary to reach the RTA designation).

Traveling Mom Has Traveled On

Who knows how long this will stay up on her blog, but it appears that she does not like YTB messing with the way she does business. She has moved on now and apparently YTB is no longer the best thing out there. I wonder what that one recruit she landed thinks?

She now blames Firemedic for the problems and states that she does not understand why YTB is hassling her becasue she "is not making any money"

I need a trip I book it with somebody. Don't need hassle in my life right now. I am an independent person I don't like being told what to do never have especially if I am talking up your business and putting it in good light it is not making me rich. I am so turned off right now and I can't see how I am going to get back into this business because I am still angry about the way that stuff went down about my blog. Call me one week about something and then wait a week and a half later to call me about the same stuff that was on their when you call me the first time. If it was a problem why did you not mention it then. I know why because those reps read NOMLM and SCAM.COM and thanks Firemedic for putting me out there with NOMLM because he found my blog through you who suppose to be for the company. I just had to say my peace now I can move on.

Kim Needs To Bone Up On His Numbers

Well, Tuesday, when asked how many RTAs YTB had at the present time, he again did not know the answer and replied with with an oblique "upwards of 117,000".

Well, either YTB had a bad day or Kim did not ask the right person for the numbers, but as of today the number is 112,300.

As of today they are down to 112,300. The numbers are so bad there is no longer a cancellation department. If you want to cancel, you have to speak to a live person which results in a continued pitch and plea to stay even if it means staying on for free for a certain amount of time.

It seems YTB is doing whatever it takes to keep the numbers up. After all, the RTAs are what keeps the company afloat--$50 a month!

138,000 - 112,000 = 26,000 loss since June 30th. That is 6500 RTAs per month or about 216 per day. Obviously this has accellerated since August 5, 2008.

Just The Facts Ma'am!

As Joe Friday would say.....

I am putting out a thumbs up to the newly formed YTB Police (according to Kim's talk yesterday)!

Apparently, the blog, Traveling Mom Home Based Travel Business has been deleted. The charges stemmed from being...FOS.

But the Marketing Site is still active, so apparently there is some value to YTB.

Sigh...You Would Think They Might Get It....

YTB is full of contradictions.  They have jazzed up the Biz Reports and I just got the jazzed up version of the Travel Compass on Thursday saying that they are a TRAVEL company and so forth.  Here is the banner (emphasis theirs):

Welcome to the YTB Travel Compass, a newsletter dedicated solely to TRAVEL and to helping you, the RTA, grow your YTB travel business. We will provide you with information that is vital to the growth of your travel business, from Booking Engine updates to Vendor spotlights to Travel Training Schedules. Watch upcoming issues for RTA Spotlights, Guest Columnists, Seminars at Sea, and so much more! At YTB, travel IS our business!

And then I see that there is last week's press release. They have hired a Chief Marketing Officer. Well, one would think that a company faced with the issues they are faced with might hire someone in marketing that might have some background in..oh I don't know, maybe TRAVEL? Am I out of line in my thinking that the #26 largest travel company according to Travel Weekly might have an executive that have a background in travel? Maybe a Board member? Not a one of them!

Here is the background on the new Chief Marketing Officer, James M. Tackett:

• Avon (MLM)
  
• Nikken (MLM)
  
• Herbalife (MLM)
  
• Pre-Paid Legal (MLM)
  
• Shaklee (MLM)
  

and a real shocker....

• Primerica (MLM)

Oh, and he helped produce some in-flight entertainment for United.

But then again, it does not specifically say that this MLM Guru was hired to market travel.  Maybe he is going to work on the next venture for Tomer & Son!

Tin E-Livin Thangs Eye Did Nut No Till I Readed Dem On De Interweb

1. On September 6th, I learned that YTB was on target to do $1B in sales
2. On September 27th, I learned that Donald Trump endorses network marketing
3. On October 6th, I learned that famous athletes, business owners, and celebrities are joining YTB because of their health insurance plan
4. On October 8th, I learned that YTB is one of the best ways to retire from a job because you can start a full fledged legitimate business with your own travel web site
5. Also on October 8th, I learned it is usually cheaper to book all your travel together on one website
6. On October 14th, I learned that for the third year in a row, YTB received the prestigious Carnival Cruiseline Pinnacle Award
7. On October 16th, I learned that our company is sound and we are a great company
8. Again on October 16th, I learned people that have home based business can get at least $4000 back in taxes. There is only a few months left in this year hurry and start your business today!
9. On October 17th, I learned the average Power Team leader in YTB earns $1325 a month! Also the average Coaches Corner member earns $5465 per month, and the average YTB Director earns $29,187 per month!
10. On October 19th, I learned the economy does not matter people are still going on vacation and want to spend money on toys. Ladies you know what I mean.
11. On October 21st, I learned that I have autism. Def def definitely awesome. Five minutes to Judge Wapner. *
    

And something I learned last week--most of these links likely will be gone by the time you read this!

*Thanks for the heads up Ainsworth. She's complaining she cannot find me now and the other day she had the FBI, her husband the cop and the cyber police all on the trail. Honestly, I am not that hard to find. But for the Village Idiot....

First Class Training Overview

Well, this weekend YTB launched their First Class Training. My personal feeling is that it is a small step in the right direction, but it is a long way from being where it needs to be. But one does have to wonder why a "travel" company has been in existence for 7 years and only now (after $225 million dollars worth of lawsuits have been filed) they begin to consider training.

The training will be completely online and hence no opportunity to ask any questions or interact with the people doing the trainign. The exam is self monitored and you can take it as many times as you like to pass it. Yesterday they offered the training live in several cities prior to it going solely online and following are my notes from the 4 hour session:

• An overview of the new "titles". An "Affiliate" is what is now known as an RTA. These people will refer to their sites and all transactions will be handled online. They will not be permitted to work with clients or vendors. They will earn 60% of the commissions received by YTB.   The new version of the RTA will be allowed to book groups and contact vendors directly. They will become RTAs upon completion of the First Class Training  and exam. They will earn 70% of the commissions received by YTB. Down the road, a future exam will be created allowing the RTAs to drop the "R" and call themselves "Travel Agents".
• An overview of a revamped RTA website. The new "technology" will allow RTAS to place their actual contact number on the website. A cost for this new site was not mentioned, however I suspect it will be an additional monthly cost for an "enhanced" site similar to the Rep site.
• The First Class Training will be taken online, and there is no time limit for completion nor is there any monitoring of the exam.
• The "training", while better, was certainly very light and offers no immediate benefit to the consumer. A YTB director narrates the video sessions and introduces a very few select vendors who overview the product they sell. CLIA's Terry Dale presented a recorded overview of CLIA.
• E&O was glanced over and it was briefly mentioned that the YTB policy only covers transactions booked by clients online. So, if any RTA books direct, they are NOT covered. This was a minor point and not emplasized at all.
• Marc Mancini had a recorded session explaining how geography training was important. It was recommended that RTAs view the classes in YTB's e-Campus for more detailed travel training. It is important to note that Marc did not present ANY geography training or travel traingin in this recording for First Class Training.
  
• A brief overview of select vendors was presented. These were not the earlier vendor presentations but essentially a listing of the vendors that work with and "understand" the YTB business model.
• Group travel was covered for a long time. They did not go over the nuts and bolts, but emphasized the ability to earn greater profits from group bookings and highlighted some of the difference between individual and group bookings. They told everyone where to find the forms in the Back Office. If YTB is going to focus on groups as they have in the past, I think this is a huge lapse in judgement and in depth group travel training needs to be covered. Look at what happens when a RTTA tries to book groups--Baltimore....Houston....Nashville!
• Recruiting was covered, but it was certainly not the focus as it had been in past classes.
• They encouraged people to attend the Funshine Events and the CLIA 360.
• They encouraged RTAs to take advantage of FAMS and ship inspections.
• YTB indicated that they would arrange private YTB only ship inspections.
  

 All in all, it is a small step in the right direction. I am curious as to how the vendors feel now that YTB is encouraging the RTAs to pay the fee for this training and then call the suppliers directly. 

Notably absent from this training was:

• Any mention of how to run a business including liability insurance, local and state licensing, etc.
  
• Client problem resolution
• Industry jargon and lexicon
• Geography (as stated above)
• In depth liability discussion
• Responsibilities of the RTA to clients and vendors and YTB
• Accounting methods
• SOT issues and requirements
  

Now I know that all of this cannot be included in the 4 hours they allot for the training. It is a disservice to the vendors and the consumers to allow RTAs to go out in the world with this minimal training. It is a little more than was offered before, but not much more.  The RTAs are now emboldened to do more and the potential to create more mistakes is huge.

There is no supervision and there was no mention of being able to rely on YTB (other than the recoreded videos) for any help. With a legitimate host, when an agent has a problem, he can speak with the host and their staff , other members of the host, or look to the other many resources that are available to legitimate travel professionals and not YTB. Networking among RTAs is ineffective--you cannot expect a kindergarten class to solve a calculus problem. Contacting YTB headquarters is also ineffective as their management has no background in travel and very few (if any at this point) of their call center people have any background. Without a means of support, the consumers are on their own.

But hey, again, it is a reactive measure based on an Attorney General's lawsuit and a few class action lawsuits. It took the non-travel executives and Board 7 plus years to decide that training on "travel" might be an appropriate thing for a "travel" company.  For me it seems a day late and a dime short!

It also should be noted that the "Award Winning" Candi May or Bob The Travel Guy were not featured in any of the training. "Dr. Seligman" was also not featured!

Hey CLIA--Over Here!

If you are going to rescind Joystar's appointment for not following your rules and regulations, what about YTB? In your agreement it specifically states that the Reps and RTAs are not allowed to use the CLIA logo. (A curious requirement in and of itself)

On Page21/Slide 61 of the CRTA Training Manual (which is still in effect for a few more days) it specifically states:

Your Responsibility
DO NOT use CLIA to enroll RTAs
CLIA membership if for travel agents only
CLIA is not a discount card or travel club
CLIA's name or logo can not be used:
In any ads
On any website
Conduct yourself professionally
When introducing yourself as a CLIA member
Upon completion of your RTA Certification
Print the CLIA Application from the Downloas section of your back office.
Comeplete form and submit to YTB for processing

So, why is this allowed when Joystar gets the boot? Royal Caribbean saw that they were using their ship image and had it removed, now I wonder if CLIA needs to take a look.

To be truthful, this is the first website or ad that I have seen the actual logo, but CLIA is used as a recruiting lure in practically every aspect of YTB.

NOTE: The author of the blog in question has been posting and removing posts at a blinding speed. She was using a RCCL image illegally, the CLIA logo illegally and both have been pulled.  But the blog is an interesting read in any event. A recent post says that by joining YTB, I can get a $4000 tax refund on my 2008 taxes!

Basic Math Part 2

$8.50 - $0.44 = $8.06

-94.82%

August 3, 2007 to October 15, 2008

The News-Press of Ft. Myers Has Saunder's Number

In this morning's News-Press they take Burt Saunders to task on his "inaccuracies" regarding his involvement with YTB. I wonder if there will be any response from Burt or from YTB.

Granted, this is a response from his opponent's Campaign Manager, but he does accurately document the following discrepancies:

• Burt says he owns no stock. The SEC says he does.
• Burt says he began with YTB in June 2008. Records show his involvement dating to 2007.
• Burt says the only compensation he received from YTB was $11K from his Board service this year. Records show that he received much more dating back to 2007as a "consultant".

Jeff Cohen sums it up pretty well when he says:

Between his work as a paid consultant and the due diligence he presumably performed before agreeing to join YTB's board, Burt Saunders should have understood instantly that YTB was a house of cards. He should have come to learn about the countless Better Business Bureau complaints lodged against YTB. He should have known about the countless legal complaints that have flooded the Florida Attorney General's Office and other law enforcement offices in other parts of the country. Burt Saunders should have known about the unethical pattern of insider business dealings at YTB that helped to enrich other board members. He should have known that it was only a matter of time before law enforcement officials would take action to stop the YTB pyramid scheme in its tracks. It's also troubling that as a former candidate for Florida's attorney general, Burt Saunders fails to see the myriad problems with his involvement with YTB, even as the Illinois attorney general is pursuing an investigation into this pyramid scheme and in the wake of the California attorney general's lawsuit to shut down YTB. A simple Google search of YTB is all it would have taken to see this company for what it is really.

This Can't Be Right?

I just came across this flyer on a blog and I do believe that is the Voyager of the Seas. I find it hard to believe that Royal Caribbean refused to do business with YTB yet allows them to use their images in their recruitment drives. How strange is that? To view a larger more detailed image you can click HERE! What is even more confusing is that while the blog displaying this flyer seems to be pro-Royal Caribbean, Travel-Pro just had a post dissing Royal Caribbean yesterday.

More Heat For Burt Saunders

While some will say this is politically motivated, and I am sure to a degree it is, this is just not good news for Florida State Senator Burt Saunders. Apparently, he is not a stranger to shady deals and screwing his constituents, so is it any wonder why he may have been drawn to YTB?  And there still is the lingering question out there--was Burt's appointment to the Board (and his prior "consultancy") a payback from Coach and Rick Ricketts for a favor granted?

Brent Batten of the Naples News did a piece on the Great Pyramids of Wood River last weekend and he really nailed it!

Check out some of the comments from Burt's constituents:

• By the same token though, he thinks the $700 billion federal government bailout that broke the debt clock and crashed the stock market was a good idea too.
• Of course, let's not forget that he thought it was ok to skip out on last year's special session to go on vacation in China, leaving Collier and Lee counties without a voice during crucial negotiations in Tallahassee.
• Oh, and that's right, he even thought it was ok to be a registered lobbyist and a state senator at the same time.
• Well, Burt's rose colored glasses may distort his view of what's right and wrong, but the rest of us can see it clearly in black and white.
  

This Is Why We Have A DD

Coach has his "corner" and invites select members to become members of "Coach's Corner". A while back, we were feeling a bit left out and the "Dumbass's Den" was created. Over the past few months, membership in the DD has been increasing faster than a false claim out of a Reps mouth.

The reason DD was created was because so many people in MLM really just do not get it. No matter how hard they try, it just ain't gonna happen.  Two weeks ago, we highlighted the "professionalism" of the YTB crowd as they made their video debuts on YouTube.

Apparently, one of our Charter Members of the DD did not understand that we were highlighting "unprofessionalism" in "recruiting". He felt left out and I think his feelings were hurt. So, he did a post on his own video editing skills (which, by the way are admirable and most in YTB could take a lesson from him) and highlighted one of his videos and deftly pointed out that there was no recruiting in it at all.

Absolutely true. As a matter of fact, it had maybe 6 words (I think they were "Are we crazy or what? Yeah!") and mostly a great soundtrack.  But he was not recruiting. He was not promoting his rent-a-travel website. As a matter of fact, this video was produced before he even got into YTB.

So I need to ask, what's the point?  But if you could, please make this member happy and look at his video.  Send an email and maybe he will include it in his "I'm so great I need to remind everyone "  "Happy File".  Feel all better now?

YTB is Hurting Senator Burt

According to a poll on the Naples Daily News, at the time of this post, Burt Saunder's involvement with YTB will affect the vote of 49% of the respondents.

So, again will Burt Bail? My guess is the potential of a Congressional Pension far outweighs the false promises of a false Coach who produces false claims to false travel agents who attend conventions to see false statues.

Poll: Will the allegations of misconduct against State Sen. Burt Saunders affect your vote in the District 14 U.S. House race on Nov. 4?

Response		Percent	Votes
Yes		49%	137
No		33%	91
Drill, baby, drill!		11%	31
I'm undecided		5%	16
total votes: 275

More Financial Woes For YTB

When it rains it pours. Directors quitting, stock sliding, RTAs fleeing, and an Attorney General that is hell bent on proving his point. And that is only the tip of the iceberg.

Last month, we posted about the only source of funding for YTB being investigated for improper loans and unsound banking practices. Well, it seems that Meridien Bank, whose owners represent 22% of YTB's Board of Directors, also don't like to play by the rules. The bank was closed yesterday morning by the Federal Government and taken into receivership.

Sure times are tough for banks, but Meridien was given ample warning to comply with federal regulations but apparently they were either a little too late, or just did not want to. Thankfully, their depositor's money is safe because the FDIC has taken the reins before the unsound practices could continue.

According to the St. Louis Post Dispatch, in a recent SEC filing, YTB said it can draw "no further amounts under that loan," and that it has no other credit available.

With a market cap that is dwindling each day, no access to credit, $225M in pending lawsuits, not many (if any) sources will be willing to lend any capital. What is next? Will the FDIC begin to foreclose on the new Headquarters?

And how long will the bank's principal's remain on the Board? Will Clay Winfield and Tim Kaiser feel the same heat that Burt Saunders currently is and undoubtedly the same heat that John Simmons did? Well, at least Simmons may get a nice house out of his deal.

Another Board Member Feels The Heat

Burt Saunders, one of the latest additions to the YTB Board of Directors is feeling some heat. As he mounts a campaign for US Congress, the question about his affiliation with an alleged pyramid scheme is becoming an issue.

Now I wonder what Burt will decide. What is the better gamble, becoming one of the Coach's Millionaires (at 48 cents a share)? Or partaking of the cushy pension and benefits of a US Congressman?

The story has created quite a flury of news in the Naples Florida area. You can read about it here, here, here, and here.  But Burt is keeping pretty mum on any of his dealings with YTB. Stay tuned!

Naples is no stranger to YTB. Remember, Rick Ricketts lives in  the area and he was investigated by the Attorney General and agreed to "settle" for $400K--do innocent people settle for nearly a half million dollars?. And we cannot forget the YTB Director and convicted gambling kingpin Chris Paraldi.

Ouch!

On August 3, 2007, Michael Brent sold 16.650 shares of his YTB stock:

3-Aug-07 16,650 YTBLA.OB Sale at $8.48 - $8.48 per share.
(Proceeds of about $141,000)

On October 1, 2008, Michael Brent sold 16, 667 shares of his YTB stock:

1-Oct-08 16,667 YTBLA.OB Sale at $0.60 per share.
(Proceeds of $10,000)

This is the stock of a company that:

• Claims they are poised to take over the travel world
• Is supposedly ranked #26 according to Travel Weekly
• Is facing a $25M lawsuit from the California Attorney General
• Is undergoing an investigation from the Illinois Attorney General
• Has seen a rapid exodus of RTAs and Reps
• Has lost their IATAN accreditation
• Has been "fired" by several vendors
• Has many complaints from the BBB
• Is mired in all sorts of insider deals
• Paid $6M (or maybe it was $8M, or maybe it was $2M) for a foam statue that no one wants
• Encourages deceptive recruiting, or at least looks the other way--Seligman anyone?
• Pays their average RTA slightly more than $100 a year
• Pays their average Rep less than $100 a year
• Collects 74% of their income from recruiting
• Claims they are not a pyramid scheme
  

Hmm..did I forget anything?

YTB's Latest Recruiting Program

This is just too good not to post. This comes from my latest favorite blog:

I look at Network Marketing this way if you were broke. And you invested in a company started your own business for $500. Then your broke friend started her company. Then she got more broke friends to join the company. As I see it nobody will be broke after the first 12 people.

So why people can't see this it is beyond me. Everybody is struggling out there right now but they won't try. My company has no inventory it is on a computer how easy is that.

Read my blog and make sure you watch this video called the Power of One it is awesome.

And all it takes is one broke friend a month. Come on the money is right there for you. See it believe it I have seen it with some friends that is why I signed up as a broke friend. And I am signing up more broke friends.

So here you have it, Danielle Mangum, from Waldorf, MD (I am disappointed she lives in my state) is recruiting broke people for YTB. She wants to find more broke people and con them out of $500 and $49.95 a month. I have to say that I am pretty sure that Mr. YTB does not even endorse this.

NOTE: The author has updated the original post. Can anyone translate for me? It is funny that she tells the story of a success story in YTB (one of the few) and does not even know Juliette's name. She also must be unaware of the the controversy surrounding why JSJ was "homeless". Someone ought to set her straight!

A Real Host Speaks Out on YTB

In Travel Trade, Travel Planners International spoke out on the damage YTB is doing to the industry. Some of the comments made by their President, Ken Gagliano include:

• It's the MLM hype or the dream of not having to work and make millions that lure these people in and end up tarnishing all of the hard work we committed professionals do.
• I have no compassion for the thousands who bought this and found out that they got burned - it's foolish that people buy this stuff and it's even more ludicrous the number of suppliers that actually work with the MLMs. Are they actually that desperate for the little amount of business that actually comes in?
• With the MLMs, consumers are misled to believe that they are working with a true travel agent, when in fact it's just a booking engine. It might be a different story if the MLMs would actually provide fundamental training on the industry, supplier training along with B2B booking tools. For the most part, they provide the training on how to recruit others and provide a consumer Web site as their booking tool.
  

As usual, here is yet another person that is dead on. He even acknowledges that there are a few good agents in YTB that just made a very poor decision. He said THAT is the challenge, weeding out the few good from the thousands of bad!

On another forum, there was some speculation that there was a forthcoming partnership or other "association" with TPI because they apparently were seen at the YTB Funshine. Well, it appears they were only there (if indeed they were there) looking for one or two of the good ones!

YTB In The News (Or Not)

There can be no doubt that YTB has been in the news more often since August 5, when this blog broke the news about the California Attorney General lawsuit than any other time in their history. Certainly there have been more posts here and the traffic has increased substantially.

YTB has been in complete spin control as was evidenced by the pulling of many videos highlighted last week. They have also "ordered" their Reps and RTAs to modify their blogs and websites to adhere to their message. As I have said for a long time, one of the issues is that there is no way to control that many people. There are still blogs out there that are going against the grain--even Regina Osei seems to be skirting the issues by offering a free laptop to join her team. Oops, it seems that she must have been slapped down as the link is not longer valid.

What is interesting to note, is the frequency of press releases issued by YTB since August of last year. To me it appeared that every time Coach had to use the men's room there was a press release. Well if you look at the frequency over the year, you can see that he must have solved that problem.

August 2007-5
September 2007-1
October 2007-2
November 2007-3
December 2007-3
January 2008-6
February 2008-5
March 2008-3
April 2008-5
May 2008-4
June 2008-1
July 2008-1
August 2008-1
September2008-1

It is also interesting to note that according to YTB's SEC filing about the lawsuit (they did not issue a press release on that) they say that negotiations with the Attorney General fell apart 45 days prior to being served. That would have put it in the neighborhood of early June--just when all the press releases stopped.

No Child Left Behind? Here's One!

Blogs by definition are usually more casual than the printed media. However, to be successful, it should be at least readable. I recently discovered a blog that is painful to read. I tried to run the text through the Google Translator and even Google had no idea on some of the language. Here is what I am talking about:

• So understand it what you do to make it how hard you work we have people working it parttime and doing great.
• So those people made a decision right their to change their lives today can I get an AMEN.
• You see what have I been saying throughout this whole blog find your own way make your own money because these companies don't care about you if you work there 20 years to save them money you are out the door.

But the lack of professionalism aside, if you read some of the posts and comments you will see that like most other RTAs, the author does not know the facts about the industry and her own company.

• Once you sign up as an RTA you schedule the First Class and you have to book $1500 in Travel to recieve you CLIA card. That is it that simple. And you can do that on your first booking.
• Remember people airline tickets do not give good commission because the airline don't want to pay good commission remember that.
• The commission rates are set by the Industry everyone gets the same commission rates.
• I am telling you airline tickets don't get you much commission so don't even think it.
• Imagine you booked lets say $3500 in travel on carnival commission is 16% or $560 Now you might say $560 but look at this way if you had a travel agency with overhead you have to pay for lights phone rent or lease business taxes county taxes and some more stuff that isn't alot. That why Travel Agents charge you a fee. To get more money out of you. Okay working with YTB you get 60% of that is $336 Did you earn $336 when you booked the trip with Expedia no.
  

Let's put the whole issue of the legality and legitimacy of YTB and other MLM agencies aside for a moment. Let's address the level of professionalism we have seen from the videos last week to the blog highlighted today. Really, as a consumer, would you be willing to book a $3500 cruise on Carnival with a person who has a hard time forming complete and legible sentences? Would you be willing to book a trip with someone that is either deliberately or accidentally posting false information? What happens when you sign up thinking you are receiving a $336 commission check for that Carnival cruise and you get only $150? What about those "air commissions"?

The author does speak the truth when she says people need to seek out the truth. However, her blog is not the place to do so. Take a read, if you can, and feel free to comment on her blog and ask the hard questions, post the real truth, and see what comes up.

Fair And Balanced

Fox News claims they are fair and balanced. I like to think this blog is as well. We present facts, backed up by documentation and we are willing to make corrections when we make an error. Of course there is a great deal of opinion as well.

Speaking of opinion, the publisher of Travel Research Online has a very fair and balanced opinion piece on how the industry has arrived at the place we are today. Certainly the MLMs are an issue and they are called out. But are they the cause of the problem? Not at all.

We have said that the suppliers and associations are the ones that have allowed the problem to get out of hand. We have said that the suppliers and associations are the best suited to fix it.

Mr. Earls tends to agree and in this piece entitled "A State of Disarray", he challenges the industry suppliers, the industry associations and the industry at large to get their act together and police themselves