Wednesday, November 5, 2008

Two Companies or Just One?

We have been told over and over again that there are two separate companies to YTB. There is the YTB Travel Network which has all the travel sites owned by the RTAs, and there is YourTravelBiz which is the company of REPs that sell the RTA sites.

So, are they really separate, or like some siamese twins, are they joined at the hip? Let's take some time and examine this.

So, What is a YTB Independent Marketing Representative?

According to the YTB Compensation Plan,

A person who has signed an Independent Marketing Representative agreement with YourTravelBiz.com is called a Representative. (We will use the term “Rep” from now on).
  • Reps may sell online Travel Agencies, enroll RTAs, and sponsor other Reps
  • Reps do not receive travel credentials and cannot sell travel.
And, What is a YTB Travel Network Referring Travel Agent?

A Referring Travel Agent (RTA) is a person who has purchased an online Travel Agency in an agreement with YTB Travel Network of Illinois and pays the $49.95 monthly license fee for a personalized online travel website and its “Back Office”. (We will use the term “RTA” from now on).

RTAs refer people to their website (online Travel Agency) to book travel and earn commissions on travel booked through their personalized site.

So far, so good. They certainly look separate according to those definitions. So what's the problem?

Well, it seems that an RTA can become something that used to be called a CRTA or Certified RTA. Now, the training program has been renamed to First Class Training. So why should an RTA take the First Class training?

According to this page,

You will learn how to:

Earn substantial income from travel sales:
Put your online travel agency on autopilot
10% override on all travel sold by RTAs referred by your PowerTeam Reps
$500 and $5000 bonuses by helping those RTAs succeed

Save incredible amounts on your personal vacations and travel:
Only RTAs who have taken the First Class can apply for their CLIA card
The proper way to ask for industry rates and upgrades
Where to find, and how to book FAM trips

Dramatically and legally reduce your personal income taxes:
Home-based travel business tax advantages
Convert current personal expenses to tax deductible business expenses

The cost of the First Class training is $149 and comes with a 2-Way Money Back Guarantee.
If you are unsatisfied for any reason, tell us at the end of the certification and receive a 100% refund.
Personally enroll 3 who have taken the First Class training and receive a 100% reimbursement.


This alone shows exactly how the two are tied at the hip. From the above I note the following:

1) 10% override on all travel sold by RTAs referred by your PowerTeam Reps

RTAs don't have Power Team reps, only REPs have power teams. So, this can mean only 2 possible things. Either nobody can ever get this 10% override because RTAs don't have Power Teams, or the RTA position and the REP position are tied together so they can. Also, since REPs can't sell travel, why should they get overrides on the travel sold by RTAs? They already get overrides on RTA sites sold by their downline REPs. Sounds like YTB just can't decide which head of the siamese twins does what.

2) $500 and $5000 bonuses by helping those RTAs succeed

According to another site that I found, these bonuses are based on RTAs in your downline selling certain amounts of travel. Gee, I thought that only REPs had downlines, and that they consisted only of other REPs. Apparently, the assumption is that all REPs are RTAs and all RTAs are REPs. We know that is not entirely true, as there are examples of REPs that are not RTAs and RTAs that are not REPs. However, it is obvious that these bonuses are for those that are both.

3) Personally enroll 3 who have taken the First Class training and receive a 100% reimbursement.

How can an RTA enroll other RTAs? I thought only REPs could do that. Perhaps the two companies aren't as separate as one would think.I'm sure that these are only a few of the arguments that the California Attorney General will be making in the lawsuit. I'll bet they find a few more.


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20 comments:

  1. It looks as though Blogger has finally fixed the problem with posting comments! Have at it folks!

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  2. Apparently blogger had issues today. But they are fixed now.

    YTB has two companies when it benefits them and they have one when it benefits them!

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  3. Steve you whole post is wrong because every thing you referenced is outdated and no long in effect.

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  4. Excuse me, then why is all of that still posted? Where would the correct documents be?

    Don't tell me that I am wrong without giving me the new information. Note that at least one of those links goes straight to the YTB site.

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  5. You are wrong whether I give you the new ones or not. Whether or not you have the updated policies makes no difference, you posted old stuff and therefore your post is inaccurate. Sorry.

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  6. I posted what is currently available on the websites in question, including that of YTB. So unless you can show me that these policies have been replaced, then I stand by them as the most currently available information. Stating that I am wrong without offering something to back that up is simply blowing hot air.

    If the compensation plan has been replaced, then what does that say about the IMR Bill of Rights that said that it would never change?

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  7. ...and why has YTB done nothing to correct these egregious errors? My guess is that if it helps the bottom line and gets a new recruit....all's good

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  8. LOL John. You so want that to be true.

    I am just giving you a hint that what you are posting is inaccurate and thought you might want to know. But if you are okay with banking your claim with inaccurate information then I am okay with it. The new information is out there if you look for it. I was just throwing you a bone.

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  9. Hello....
    The information I got was directly from the YTB site.
    Where else should I look to find information on YTB? Bones don't do me any good, as I am not a dog. Specific URL's would be much better.

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  10. As far as I know Steve the only place I find the P&P's for the REP and RTA positions are in our back-office. With that being the case I don't know exactly where you will find it. Perhaps one of John's moles could send you a copy. But I can just about guarantee the CA AG has seen them. Why you can still find old stuff? I don't know. Perhaps they leave it as a gift to those that would post inaccurate info. I don't know.

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  11. So, how about educating us and explaining the differences between the old and the new? At the same time, please address why things have changed despite the promises in the Bill of Rights. Finally, please address the reasons for the change, other than being reactive to the lawsuits from the CA Attorney General and others.

    If you would like to get the copies from your back office and send them to me, I'd be happy to do the correlation for you. You can find my email address in my Blogger profile.

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  12. Steve, I am not at liberty to be the spokesperson for all the changes for the company. I am sure you could call the office and perhaps they would send you a copy. If you choose to continue to make your case off of old information, that is up to you. I was just merely letting you know it was no longer accurate.

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  13. Until you can prove to me that I am wrong, that the information that YTB still has posted is wrong, I consider your claim to be specious.

    Provide me the documentation that I have old and outdated information by providing the correct information, and I will gladly re-write my post.

    I'm not going to hold my breath waiting for that to happen.

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  14. I have received from an unnamed source, copies of the Ammendment to the Bill of Rights, and the latest RTA and REP Policies and Procedures. The latter two are dated 10/22/08. The ammendment to the Bill of Rights is from 2007, and I had seen that before.

    There is nothing in any of those 3 that changes anything in the Compensation Plan linked to in the original post. In fact, the two Policies and Procedure Documents refer to that plan and incorporate it by reference.

    There is no specific information to state that any of the other bonuses referred to in my original post have been cancelled or changed, as these documents do not discuss compensation.

    So, if these are the documents that were supposed to prove that I am wrong, I'm afraid that they don't. I'm willing to admit that there may be other documents that update the Compensation Plan or other bonus plans, but these don't address them. Based on the recent date, I assume that these new Policies and Procedures have been issued as a reaction to the lawsuits.

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  15. "Based on the recent date, I assume that these new Policies and Procedures have been issued as a reaction to the lawsuits."

    You seem to have this fixation on the word "reactive". When was the last time you were able to drive down the highway without keeping your hands on the steering wheel? How many times do you readjust your course? Would it be fair to say that your "reacting" to you getting off course is bad? What about the fact that Microsoft has been "reactive" to many many lawsuits? Do you realize how many different policy changes they have made due to the FTC fines and anti-trust suits? How many companies or people you know that have never had to change actions because everything they do is on target all the time?

    John loves to use this "reactive" thing. It, like many of the arguments on this site, are frivolous.

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  16. "So, if these are the documents that were supposed to prove that I am wrong, I'm afraid that they don't. I'm willing to admit that there may be other documents that update the Compensation Plan or other bonus plans, but these don't address them."

    First of all, I had a feeling it wouldn't take you long to get the documents. Second, I do believe you will find the new rules in the compensation plan. There were, however, several new updates to the P&P's.

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  17. I did not claim that a reaction to the lawsuit was a bad thing. Simply that it was a reaction. John's point in this regard is that the company should have known better what would cause problems and been proactive in changing their policies, rather than reactive.

    I had never seen the previous P&P's so I can't say what is new and what is old. However, there do seem to be fairly stringent rules regarding what REPs and RTAs are allowed to say and do. I suspect that a lot of that is new. That is a good thing, if they are really enforced. Given the recent date on the document, only time will tell on that account.

    I have not seen any update to the Compensation Plan, so until I do, I must assume that the one posted on the YTB website is the most current.

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  18. "
    I have not seen any update to the Compensation Plan, so until I do, I must assume that the one posted on the YTB website is the most current."

    Well, ever heard of what happens when we "assume"? It has changed Steve and its out there.

    I do want to say Steve that out of almost all of the travel agents on here, you seem to be the most professional in your posts. I disagree with you on many things but I respect you for you conduct and your civility. You don't seem controlled by your emotions like most on here. You can debate the issue without attacking the person and it's appreciated.

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  19. "I do want to say Steve that out of almost all of the travel agents on here, you seem to be the most professional in your posts. I disagree with you on many things but I respect you for you conduct and your civility. You don't seem controlled by your emotions like most on here. You can debate the issue without attacking the person and it's appreciated."

    Thank-you. I'm probably one of the older ones on here too. I have long ago found that emotional arguments really don't hold any sway. Debating facts is really the only way to go.

    With regard to the Compensation Plan, if a new one ever finds it way to me, I'll be happy to look it over and see what has changed. In the meantime, I can't comment on something I haven't seen. If the one that is still on the YTB website is not current, then they really should take it down and put the new one in its place.

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  20. I agree with taking down the old stuff and I cannot comment as to why it's still there.

    What I do know for sure is that the 10% override for power team travel sales is no longer in effect.

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