Recruit 2000 people in 12 months and get $100,000
Recruit 5000 people in 24 months and get $250,000
Recruit 10,000 people in 36 months and get $500,000
Yes, recruit enough people to give Coach $5 million dollars and receive $850,000 in return.
We all know how well the last "incentive" worked, I wonder how this one will? You can read the fine print of the latest one here.
A pyramid scheme is a fraud based on recruiting an increasing number of investors.
ReplyDeleteTypically, new recruits pay a sum of money to join the "program" and become a distributor of a product or service, and are told that they'll make money based on the number of new recruits they in turn bring in. The basic idea is that the higher up on the pyramid you are, the more money you'll make.
In reality, what happens is that only the originators of the pyramid scheme make money and the rest lose theirs when the pyramid scheme collapses. Eventually ALL pyramid schemes collapse, as the recruiters on the lower levels fail to bring in enough new participants to support those above them.If the company places more emphasis on recruiting others into the business than in selling the product, consumers should be on the alert.
The compensation should be on the sales of the product or service, not on the mere fact that they bring people in.
There must be a clear definition of "retail sales" that exempts purchases made by the paricipants or distributors or members for their own use from being considered as legitimate retail sales. In other words, you cannot claim to be operating a legitimate MLM marketing a product or service where most of the income is generated from purchases made by the "distributors/members" themselves.
Tell me that the above does not describe YTB!
Good God.
ReplyDeleteSpending the holiday weekend posting things about YTB. How sad your life must really be. Must make you feel better to pawn off all your frustrations on YTB. If YTB were to go away I bet you would be even more sad since you would have to find someone else to attack in order to feel like you matter.
ReplyDeleteAttack the Blog owner again as usual, little YTBer. What ever you do, ignore the subject and the facts of the post, deflect away, and make personal attacks. Pathetic.
ReplyDelete"Typically, new recruits pay a sum of money to join the "program" and become a distributor of a product or service, and are told that they'll make money based on the number of new recruits they in turn bring in."
ReplyDeleteProblem is John keeps on ignoring the fact that he didn't pay a dime to join the YTB program and become a distributor. (Go ahead, ask him how much money he lost.)
You can ignore it all you want Anon, but doesn't make it fact. John is helping the myth and lies about this pyramid phobia, and you're to blind to see the legal letter of the law because you, like all the others here are to wrapped up in your own emotional issues.
I fully realize that there is no cost to become a rep. However, YTB says they are a "travel" company and the SEC filings prove that they are not. YTB is using travel as a means to an end for their pyramid.
ReplyDeleteThe two businesses are so tightly interwoven. How does one make any serious/legitimate/reasonable money in YTB? It is by recruiting.
If YTB wants to be a "travel" company, why are they not putting out an incentive that if you sell $1M a year, YTB will offer you $X dollars? Because when you get down to it, YTB is NOT about travel at all.
Anon--serious question, look at all of the travel incentives YTB has sponsored. And then compare them to the recruiting incentives.
Ask any of the directors or PTL or Coach's Corner members how much travel they personally sell in a year? I bet you will be surprised!
I am willing to bet that not one person in YTB is able to recruit 2000 people next year. Not one.
ReplyDeleteKate,
ReplyDeleteThat's a safe bet ... and why I'm sure YTB was willing to make this offer ... it's unlikely they'll have to pay a single bonus, but they can look good to their flock by making the offer all the same.
“I fully realize that there is no cost to become a rep. However, YTB says they are a "travel" company and the SEC filings prove that they are not. YTB is using travel as a means to an end for their pyramid.”
ReplyDeleteAs it applies to pyramid laws John, your point is mute. Your perception and concerns don’t apply to the letter of the law. Your statement is simply an opinion or a concern that you and some others have that you don’t like. It doesn’t however have any legal bearing concerning pyramid laws.
As a matter of reference, this is what YTB “says”.
The YTB companies offer two unique and powerful opportunities, that of referring travel agent or "RTA" and that of independent marketing representative or "REP". The travel agent opportunity has an initial fee under $500 and a monthly license fee of $49.95. There is no fee or travel agency purchase required to be a REP. You may choose to participate in one or both opportunities.
If we could convince one of our Travel Suppliers to offer a $1 Million Dollar bonus for selling travel, I’m sure the company would jump all over it. It’s unfortunate because we don’t control commission percentages from suppliers, the best we can do is offer a $5000 matching bonus for those that produce $5000 in travel commissions.
You offer something similar don’t you? ;-P
Seems the Department of Justice in California does not agree with you YTBER.
ReplyDeleteLOS ANGELES--California Attorney General Edmund G. Brown Jr. today announced a lawsuit against YourTravelBiz.com for operating a "gigantic pyramid scheme" that recruited tens of thousands of members with deceptive claims that members could earn huge sums of money through its online travel agencies.
“YourTravelBiz.com operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else,” Attorney General Brown said. “Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam.”
YourTravelBiz.com and its affiliates operate an illegal pyramid scheme that only benefits members if and when they find enough new members to join the scam. Once enrolled, members who join the pyramid scheme earn compensation for each new person they enlist, regardless of whether they sell any travel. The company lures new members by offering huge income opportunities through online travel agencies yet the typical person actually makes nothing selling travel.
According to company records there were over 200,000 members in 2007 who typically pay more than $1,000 per year--$449.95 to set up an “online travel agency” with a monthly fee of $49.95. In 2007, only 38 percent of the company’s members made any travel commissions. For the minority of members who made any travel commission in 2007, the median income was $39.00--less than one month’s cost to keep the Website. There are at least 139,000 of the company’s travel Websites, all virtually identical, on the Internet.
Brown charges the company, its affiliates, and the company’s founders J. Lloyd Tomer, J. Scott Tomer, J. Kim Sorensen and Andrew Cauthen with operating an “endless chain scheme,” an unlawful pyramid in which a person pays money for the chance to receive money by recruiting new members to join the pyramid. Brown also charges the company with unfair business practices and false advertising practices including:
* Deceptive claims that members can earn millions of dollars with the company
* Operating without filing legally mandated documents with the attorney general and the Department of Corporations
* Selling an illegal travel discount program
But then I am sure as a member of YTB you would know more than the Department of Justice and the Attorney General and his staff of lawyers who investigated YTB for 18 months! P.S. Can't wait to see YTB in Court in January.
The online travel company, YourTravelBiz.com (YTB) is the subject of government action in one state and consumer complaints from over 31 states, territories and provinces. Consumers report that YTB misled them with offers of inflated earnings, refused refunds once consumers realized the program was not as advertised, and was difficult to contact. The firm is headquartered at 1901 E. Edwardsville Road, Wood River, Ill.
ReplyDeleteIn the past 36 months, the Better Business Bureau of E. Missouri & S. Illinois (BBB) has received more than 90 complaints and reports about YTB, more than 40 of which were received in 2008. The firm has an unsatisfactory record with the BBB due to unresolved issues, and the pattern of complaints has continued. The firm also failed to respond to a recent BBB letter asking for clarification concerning certain aspects of the company’s financials and business affiliations.
YTB has two main subsidiaries: YourTravelBiz.com, which, through a network of sales representatives sells travel agencies and signs up other representatives, and, YTB Travel Network, which manages sales for YTB’s 139,000 referring travel agents, or RTAs. Individuals become Referral Travel Agents (RTAs) and start a Web site that allows consumers to book travel.
The firm states that RTAs then receive 60% of the commission received by YTB on travel booked through their Web site. The cost of becoming an RTA is an initial fee of $449.95 with a monthly license fee of $49.95. Individuals also may become Independent Marketing Representatives (Reps) who sponsor others to become RTAs. According to the firm, becoming a Rep is free of charge and Reps make money based on the sales of the RTAs that they have sponsored.
A Fallbrook, Calif., woman complained to the BBB that after a day-long seminar, she purchased a Web site from YTB for $499 in order to become an online travel agent. She said she thought this would be a good way to make money from home and obtain travel discounts for personal travel. She said that she needed to book $1,200 a month through her Web site in order to be eligible for personal discounts, but everyone that she told about her site said that they “did some research and found that they could book travel more cheaply elsewhere.” She also said that “IATA (International Air Transport Association Network) rescinded their affiliation with YTB and that was the main way for us to obtain travel discounts.” The BBB assisted her in obtaining a refund.
When contacted by the BBB, a representative of the IATAN confirmed that their relationship with YTB was severed due to “failure to maintain standards of accreditation.” In an official statement IATAN indicated that YTB was terminated for “violating the standards which provide that ‘IATA numeric codes shall not be lent, subcontracted, or hired to a third party.’" Furthermore, IATAN “found that the Referring Travel Agents recruited by YTB -- and to whom YTB gave credentials which contained the IATA numeric code -- were "third parties" over whom YTB had no control.” YTB disputed IATANS actions, but upon review the actions were upheld.
For the first quarter of 2008, only 12.5% of YTB’s net revenue was derived from online travel sale commissions, while almost 80% came from the recruitment of people joining its online travel business. Based on the number of RTAs listed in these filings, the average amount made by each RTA through the sale of travel through their Web site for the first quarter was $27.75; on pace for a yearly income of $111, according to filings with the Security and Exchange Commission.
J. Kim Sorensen is the president of YTB, J. Scott Tomer is the CEO and J. Lloyd Tomer is the chairman of the board, according to the company’s Web site.
On August 4, 2008, California attorney general, Edmund G. Brown charged in a civil lawsuit, YTB, its affiliates, and the company’s founders, J. Lloyd Tomer, J. Scott Tomer, J. Kim Sorensen and Andrew Cauthen, with operating an “endless chain scheme,” an unlawful pyramid in which a person pays money for the chance to receive money by recruiting new members to join the pyramid.
In the lawsuit Brown also charged the company with unfair business practices and false advertising practices, including deceptive claims that members can earn millions of dollars with the company; operating without filing legally mandated documents with the attorney general and the Department of Corporations; and selling an illegal travel discount program. Attorney General Brown is suing YourTravelBiz.com to get a court order that bars the company from making false or misleading statements; assesses a civil penalty of at least $15,000,000 and at least $10,000,000 in restitution for Californians who were damaged by the company. This case is pending and YTB has not yet filed a formal response in court.
A Copiague, N.Y., woman reported to the BBB that she attended a YTB presentation and was repeatedly told that you make “60% commission on everything you book through your Web site.” However, once she signed up and received her packet from YTB, she found out it was 60% of what YTB gets, and that is only about $3 per airline ticket. She said that she tried to cancel, but the firm refused saying that it was past the five-day cancellation period, however, she did not receive her packet informing her of the cancellation policy until after this five- day period had expired. YTB disputed this claim, saying the woman was required to read the online terms and conditions, before paying, which included the cancellation policy.
The BBB and the Federal Trade Commission offer the following advice concerning multi-level marketing plans:
* Avoid any plan that includes earnings primarily based on commissions for recruiting additional distributors. It may be an illegal pyramid.
* Be cautious of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through sales of products you make yourself.
* Beware of plans that claim to sell miracle products or promise enormous earnings. Just because a promoter of a plan makes a claim doesn't mean it's true! Ask the promoter of the plan to substantiate claims with hard evidence.
* Beware of shills -- "decoy" references paid by a plan's promoter to describe their fictional success in earning money through the plan.
* If you decide to become a distributor, you are legally responsible for the claims you make about the company, its product, earnings claims and the business opportunities it offers. That applies even if you're repeating claims you read in a company brochure or advertising flyer. Verify the research behind any claims about a product's performance before repeating those claims to a potential customer.
The BBB also suggests that consumers looking to become travel agents consider the following:
* Do not be fooled by promises of glamour and wealth, with little or no effort.
* Be skeptical of offers that require you to purchase an identification card and claim that, by doing so, you will be a “travel agent” in good standing who is “official,” “certified,” “accredited,” or “endorsed” by the travel industry.
* If the business promises huge earnings, ask what you will be paid for. Will you actually be selling travel to the general public? Or are you being asked to recruit others into the business?
* Before buying a “travel agent” card, comparison shop for several trips using traditional travel agencies, online travel sites and other information sources. Will the additional cost of the card be offset by savings on travel services of comparable value?
* Ask if the hotel, airline or other travel provider you want to use will accept the card as the basis for a discount.
Contact the BBB at 314-645-3300 or www.stlouisbbb.org for a customer experience report on a company with which you are considering doing business.
An MSNBC Report entitled "Top 5 Travel Scams" describes one scam this way:
ReplyDeleteBecome a travel agent
This is a scam that is running rampant now. Once you pay a fee to a company, it will issue “credentials” allowing you access to travel agent freebies and discounts and commissions on selling travel. First off, the days of freebies and discounts are done — trust me, they are few and far between. Secondly, in order to sell travel and be recognized by a supplier, you need to be affiliated with either a travel agency or be registered as an independent seller of travel with either the Cruise Lines International Association or the Airlines Reporting Corporation. Believe me, this is a perfect example of the old axiom, "if it seems too good to be true, it probably is."
The American Society of Travel Agents (ASTA) has published a paper entitled "Travel Industry Card Mills" in which they state:
It’s easy to see why the allure of travel to exotic destinations at reduced rates and with special levels of service, often accompanied by a promise of actually making money, could appeal to consumers. Ads promise glamour and the high life at a bargain, and the chance to make money with little effort. But the allure is a façade, and the promise an illusion perpetuated by sellers of deceptive travel agent credentials — card mills.
What Are Card Mills?
Card mills are businesses that sell deceptive identification cards, sometimes accompanied by a package of worthless "training" materials that falsely identify the purchaser as a "travel agent." These offers often say "travel like a travel agent" and are designed to permit buyers of travel services to pass themselves off as sellers of travel services.
These cards are represented as enabling the holder to obtain discounts, upgrades and other courtesies reserved by travel suppliers for professional travel agents who actively promote the suppliers' services.
What ID Card Is Accepted by Most Industry Suppliers?
IATAN provides the travel agency community with the only personnel registration service in the industry. IATAN-accredited agencies periodically provide IATAN with a list of personnel who are eligible to obtain an IATAN ID card. For many airlines, the IATAN ID card is the only form of identification accepted for reduced rate or free transportation. The IATAN ID card is also accepted by many other industry suppliers for discounts and other considerations. In order to obtain an IATAN ID card, travel agents must meet eligibility requirements outlined at http://www.IATAN.org. A list of travel suppliers that accept the IATAN ID card can be found at: http://www.IATAN.org No travel agency can guarantee that it can provide valid IATAN cards or numbers to anyone.
Travel Industry Card Mills
And when contacted regarding any relationship between ASTA and YTB.com, they responded:
"ASTA considers YTB a card mill company whose primary marketing message is the sale of memberships rather than travel. In early 2006, ASTA filed a complaint with the Federal Trade Association regarding YTB business practices in which we asked that they consider enforcement action under their authority against activities that ASTA believes constitute an unlawful pyramid scheme."
http://www.stclairrecord.com/news/216111-ytb-international-class-actions-set-for-status
ReplyDeleteYTB International class actions set for status
11/26/2008 2:00 PM
By Steve Gonzalez
An attorney for YTB International is asking a federal judge to set a status conference in class actions that alleges YTB is an illegal pyramid scheme.
YTB's attorney, Judy Cates of Swansea, argues that a status conference is necessary to coordinate defendants' responses to the two complaints filed against YTB.
According to Cates, the separate actions have been substantially similar.
Faye Morrison and Kwame Thompson filed one of the suits Aug. 8. They seek to represent a putative class who allege YTB operates an illegal pyramid sales scheme and employs an illegal chain referral sales technique in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act.
Morrison, of St. Louis and Thompson, of Atlanta, acted as both independent marketing representatives (IMRs) and referring travel agents (RTAs) for YTB.
Their suit seeks at least $100 million in damages on behalf of the putative class.
Morrison and Thompson have retained Rex Carr, Christian Montroy and Michael Marker of East St. Louis to represent them. In addition, Jay Kanzler, Jr., and Brian Massimino of St. Louis will assist in representing the class.
According to their Web site, YTB provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, Bermuda, the Bahamas, the U.S. Virgin Islands, and Canada.
The company operates through three subsidiaries, YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc., all of which are also named as defendants in the case.
The second class action against YTB and its subsidiaries was filed by Jeffrey and Polly Hartman. Their suit is almost identical to the first class action, however they are represented by different lawyers. They filed their case seven days after the first one.
John Carey, Tiffany Marko and Francis "Casey" Flynn of Carey & Danis in St. Louis represent the Hartmans.
Cates argues holding a status conference in both cases would "ensure the orderly consideration of the likely motions to dismiss."
"Plaintiffs will suffer no prejudice if the Court grants this Motion," Cates wrote.
U.S. District Judge G. Patrick Murphy agreed, and on Nov. 21, set a status conference for 2 p.m. on Dec. 8.
Anonymous said...
ReplyDelete“I fully realize that there is no cost to become a rep. However, YTB says they are a "travel" company and the SEC filings prove that they are not. YTB is using travel as a means to an end for their pyramid.”
As it applies to pyramid laws John, your point is mute.
I love it when these ytb idiots try to impress with language. Honey, go buy a dictionary and use it. The term you're looking for is MOOT, not MUTE. Look it up.
Anon is trying to impress by using words he does not know the meaning or spelling of. Kind of like 'travel sales' huh?
ReplyDeleteMaybe what he meant was that anything John says to him falls on deaf ears.
ReplyDeleteWhat is interesting to the incentive is all the fine print. The sales have to be split into at least 3 "legs". No more than 1/3 of the sales can come from any one "leg".
ReplyDeleteIt's all these restrictions and "legs" and stuff like that which makes MLM just ridiculous. Give me a company that concentrates on the sale of its products over recruitment any day. Oh, that's right, travel stores are the product for YTB, not travel. Silly me for forgetting that for a second.