Exactly Who Owns YOUR Travel Biz?

Just before Christmas, we reported that it seemed YTB was changing their name to CTB. We reviewed the document and all we can say (in the immortal words of Rick Ricketts---Wow!, Just Wow!) As I mentioned before, if you are interested to see the 49 page documement that replaced the 6 page one, please send me an email.

To any of the YTB Affiliates, RTAs, or soon to come "Travel Agents" reading this blog, I suggest that you take this document to your attorney and get advice. One thing you need to know is that YTB reserved the right to change the terms (at their whim) when you originally signed up. By continuing to participate in the program, you are essentially agreeing to the new terms. Please get some professional advice, it will be the best $100 you ever spend.

With a 49 page document, you can imagine that there are a lot of issues. I will discuss (by page) the ones that seem the most critical to me.

• Page 7. CODE OF ETHICS. While they say that the founders of YTBTN have strong convictions, it does not seem to flow outward to the TSOs. There are still all sorts of questionable behavior and promotion going on. I feel that YTBTN does not care, until it becomes an issue.
• Page 9. Section 1.4 DELAYS. This is a frightening section as it allows YTBTN to default on any payments owed to the TSO for any number of reasons. Notably, government decrees or orders.
• Page 10. Section 2.1REQUIREMENTS TO BECOME AN AFFILIATE. It states to become a "Travel Agent" you must complete, enroll, and pay for ALL E-Campus modules. Currently there is no timeline for when all the modules will be available. Is YTB certifying people as "Travel Agents" when they complete only those available?
• Page 11. Section 2.4 GENERAL RESPONSIBILITIES OF A TRAVEL SITE OWNER. Section "b" prevents you from engaging any supplier in a dispute. Honestly, this is what agents do for their clients. Section "c" prevents you from advertising any trips online.
• Page 12. Section 2.6 TALENT RELEASE. I am not sure I woudl be willing to give YTBTN "lifetime" rights to my images, thoughts, and statements.
• Page 13, Section 3.2 ADVERTISING. This section precludes a TSO from using any promotional materials that were not produced by YTB. It further clarifies it that TSOs are not allowed to produce their own literature, ads, sales aids, promo materials, or internet web pages.
• Page 14. Section 3.3 INTERNET WEBSITES AND E-MAIL COMMUNICATIONS. This section says that the ONLY internet web page that you can use is the replicated site provided by YTBTN. TSOs are not allowed to design any other web site that that uses the YTB name, logos or promotes YTB either directly or indirectly.
• Page 15. Section 3.5. BLOGS, CHAT ROOMS, SOCIAL NETWORKS, ONLINE AUCTIONS, and OTHER ONLINE FORUMS. This prevents you from utilizing any blogs (Doug are you listening?), chat rooms, or essentially ANY internet means to to "market, sell, advertise, promote, or discuss YTBTN's products or services. Say goodbye to commenting on this blog by name, signatures on forums, the YTB room in WAHM, the YTB Family Ning Forum, all blogs and essentially all websites owned by TSOs that mention YTB.
  
• Page 15. Section 3.6 DOMAIN NAMES AND E-MAIL ADDRESSES. Gone are the days of having YTB featured in any of your email addresses or domains.
• Page 19. Section 3.16 CONFLICTS OF INTEREST NON-SOLICITATION. TSOs are not allowed to recruit other people from YTB or their customers into any other MLM company. Further, you are not allowed to recruit or solicit anyone in YTB or their customers for a year after you leave. This might actually make you an employee. Does not sound too independent to me.
• Page 20. Section 3.16 CONFLICTS OF INTEREST NON-SOLICITATION. You are not allowed to sell any competing products. With the addition of the lotions and potions and so forth, it seems that YTB is competing everywhere. And then there is the crazy (section "c") requirement about talking about other network marketing opportunities within 2 hours or 5 miles of any YTBTN event.
• Page 20. Section 3.18 GOVERNMENTAL APPROVAL OR ENDORSEMENT. Well, it is apparent that the California Attorney General is not endorsing YTB any time soon, but how may recruiting meetings have taken place where they say that YTB is legitimate and has been approved and been registered with "the Attorney General in all 50 states"?
• Page 21. Section 3.20 INCOME TAXES. Well, with the average TSO earning $139 a year in income, I suspect YTBTN saves a lot of money on printing these 1099s.
• Page 21, Section 3.21 INDEPENDENT CONTRACTOR STATUS. From a lot of the other rules in this document, it seems that you are not that independent at all. I also find it interesting that they state you are not buying a franchise or a business opportunity. What is the opening line of every YTB presentation--we offer two separate "business opportunities"?
• Page 21. Section 3.22 TRAVEL SITE OWNER'S NAME. You cannot advertise that you are part of YTB in the phone book nor are you allowed to answer the phone like you are part of YTB. Hopefully, little Timmy will not answer a ringing phone, "Hello, YTB Travel"
  
• Page 23. Section 3.24 CONFIDENTIALITY. This is the most frightening page in the document for any one that is interested in selling travel. It specifically states that your customer information is the "exclusive property" of YTBTN. So, you work hard and find customers and YTBTN takes them from you and then owns them. Of course clients will do what they want, but EVERY other legitimate host has a provision that states that the clients belong to the agent. But you can be sure that if you leave, YTBTN will be marketing to your clients very heavily.
  
• Page 26. Section 4.8 SALE, TRANSFER OR ASSIGNMENT OF TSO'S BUSINESS. While the concept of someone actually selling this "business" is amusing in an of itself (I mean why would you not just buy a new one on sale for $250?), there is a clause to protect the upline at all costs. Also notable is the the clause that requires the purchaser to assume "all" obligations. I am not sure how YTBTN can legally require that a buyer assume all obligations. Most business sales are typically asset only transactions; liabilities remain with the seller.
• Page 30. Section 5.2 NON-DISPARAGEMENT. This says you are allowed to talk nice of YTBTN, but if you discover something that you disagree with, they will not address it at all. You are simply not allowed to voice any concern if they feel it is negative.
• Page 31. Section 5.4 VENDOR CONFIDENTIALITY/COMMUNICATIONS. You are no longer allowed to divulge the commission levels paid by vendors. So much for every recruitment presentation along with the examples.
• Page 32. Section 6.1 TRAVEL SALES. Customers must not be abandoned under any circumstances. (Unless they are in Atlanta and then that is ok because someone will step in). But my question is if YTBTN is serious about this, perhaps they ought to offer a method to contact the TSO on the websites. If you look at any site, there is still no way to contact the TSO and the minimal help offered still suggests to call the supplier directly for issues.
• Page 33. Section 7.1 BONUS AND COMMISSION QUALIFICATIONS. If you are not in COMPLETE compliance with all 49 pages of this document, YTBTN can elect to not pay you commissions or bonuses owed.
• Page 33. Section 7.2 ADJUSTMENTS TO BONUSES AND COMMISSIONS. This says that if the client cancels travel and the client is entitled to a refund, no commission will be paid. As any travel professional knows there are several instances where a client receives a refund and the commission is still paid.
• Page 34. Section 7.6 REPORTS. Apparently the big SAP program is not all that. Any reports not really guaranteed to be accurate. So if your client cancels and you do it through the Back Office, there is a possibility it might never make it.
• Page 36. Section 9.1 DISCIPLINARY SANCTIONS. This is a pretty extensive list and it seems they left out water boarding.
• Page 40. Section 10.2 SALES TAXES. I suspect (hope) this is a mistake, but this says YTBTN collects sales taxes on ALL transactions and remits them to the proper states. Well, many (if not most) states do not assess sales tax on travel. If YTBTN is collecting it, where is it going?
• Page 41. Section 11.1 EFFECT OF CANCELLATION. While most legitimate hosts will work with an independent contractor, YTBTN has refused to transfer any bookings. This further emphasizes that the clients do indeed belong to YTBTN.
  

In The Hot Seat with John Frenaye!

Recently, it was leaked that John Frenaye had indeed jumped the ship like Vicki Freed did several months ago and joined forces with YTB. Rather than rely on rumor and innuendo, we decided to call John and ask him directly. He agreed to an interview with periodic contributor, Kate Holmes. Kate asks the hard questions and puts John in The Hot Seat.

Q. John, after years of a very outspoken campaign against YTB, you decided to join YTB as a rep. What prompted you to make this move? Well, I can't really talk about that, and I heard that news too. But thanks for asking.

Q. Now that you are in YTB, can you tell us more about the franchise model? Well, all I can say is that YTB knows how to recruit and knows network marketing.

Q. Where do you see YTB in a year? The future is hard to predict with so many positive and great changes coming out at the convention, but I am suspecting at 1901 E Edwardsville Road in Wood River.

Q. The travel industry has never embraced YTB despite its claims. Could you explain this? All I can say is that YTB knows how to recruit and knows network marketing.

Q. Can you please explain the reason for your switch to YTB? Well, I can't really talk about that, and I heard that news too. But thanks for asking.

Q. We've all been waiting to hear more about this franchising manual. Now that you are in YTB, can you tell us more about it? All I can say is that YTB knows how to recruit and knows network marketing.

Q. How many people do you currently have in your downline? Well that is not a very easy number. The economy has not been too good lately but I have heard that YTB has more now than they had a while ago. And that came straight from the President's mouth!

Q. How many people in your downline will become franchisees? I can't really talk about that but I do know that if people do not participate they will be no worse off than if they hadn't participated in the first place.

Q. How much of your YTB sales comes from travel? From website sales? I cannot really discuss any income that I may or may not make; but you can be assured that any income I do make does indeed come from somewhere.

Q. We understand YTB recently paid itself over 6 million dollars for a giant hunk of foam to honor the troops. Can you please tell us a little more about this? Are you anti-American? Do you not support the troops? Do you feel honoring them is a bad thing? And the correct figure I have heard is $8 million plus transportation, installation, and taxes. It has also been said that YTB HQ is a green building.

Q. How are the upcoming changes to the CLIA card going to affect YTB's recruiting efforts? What perk will you advertise now? Well, perks are really a fluid concept depending on the prospect. You need to determine the touch points and go from there.

Q. You recently became an ordained minister. Who has influenced you more in this decision? Was it Coach? Regina Osei? Father Guido Sarducci? My ascension into the ministry is a personal decision and it was influenced by none of the above. I also heard that chicks dig men in robes, we get some awesome tax write offs and some great parking spots at the local mall.

So, there you have it from the source. All of the confirmation anyone needs about John's recent switch to YTB.

John is a swingin’ bachelor, father, mentor, coach, ordained minister, and makes a mean lasagna! He wears a lot of hats but loves them all! To learn more about more about fabulous opportunities please join his downline at www.ytb.com/jfrenaye.

--Kate Holmes

Encouraging Tax Fraud? You Tell Me!

Well, I think this "travel sales" message speaks for itself. The whole tone of the message in so tongue in cheek. We sell you a "job" (wink wink). You can travel and deduct everything (wink wink). Come on, together we can pull one over on "the man" (wink wink). Meanwhile. the only man that is involved is Coach and he is pulling one over of hundreds of thousands!

Hey John,
So We have shown you the amazing compensation plan and the booking engine you will have at your fingertips. We have also told you about your "job" so experiencing all of the travel products you can sell.

AS AN RTA THAT'S YOUR JOB!

Well, maybe that doesn't sound like a job, but that's what Travel Agents have been doing in our industry for decades in order to help clients know what to expect and help them feel comfortable about THEIR vacation.

And because you are going to Sandals, Disney, Alaska or Europe on "business" that qualifies all your vacations, err, "business trips" as a tax deduction with the IRS!

John, that's not all the deductions you can possibly claim with the IRS. Wouldn't your Booking Engine be hosted on the Internet? Wouldn't you need phone service to talk with your prospects and clients? Wouldn't you need a portion of your home for some type of office to work in?

DO WE HAVE YOUR ATTENTION NOW?

Sometimes, it's not about the money you can make, it's about all the money you can save simply by changing what you are currently spending your money of from pleasure or necessity, to a legitimate business.

Don't believe it, check with your Certified CPA and ask them how owning a Home Based Business can potentially save you THOUSANDS per year on your taxes. The longer you delay, the less likely of a chance you have of making a decision to start your business and you will stay in the same tax bracket and financial position you are in right now.

Just call me and if I am on the phone, leave me a message and I will call you back. Okay John?

I look forward to speaking with you.

All the best,
XXXXXX & XXXXXX XXXX
XXX-XXX-XXXX

Some Outrageous Comments

Earlier this week, there was an article in the Post-Tribune of Northwest Indiana regarding YTB and their Statue of Liberty. I spoke with the author over a month ago between then and now, she did her research and came out with the article that is really pretty much dead on. I only saw the article yesterday, and what really amused me were some of the comments from the pro-YTB crowd. Their reactions, albeit predictable, are certainly eye opening. It is a standard modus operandi for them--attack, deflect, lie, attack again, and if all else fails, lie some more!

In regards to any individual formerly affiliated with YTB who stole money from unsuspecting people; it is true- THEY stole money from those people, but YTB dissolved their affiliation with those people AND refunded all the money to those folks who were taken. Why did you not report that fact?

Oh really? Where was the follow up story on the students from Tennessee? The bus drivers from Houston? Yes, they did reimburse the Baltimore woman, but what about the rest?

I went to the lady who invited me to the meeting via the Statue of Liberty flyer and asked her for other sources of information and she directed me to literature and websites and gave me good info. She even gave me the opportunity to go to the Home Office in Wood River, Illinois to meet the founders of the company and have lunch with them at their expense. Really!

Come on. So now Coach is paying for prospects to come to Wood River? And what references were given? BBB reports? News reports of the scams? Financial reports? Letters from Royal Caribbean? IATAN endorsement? My guess is it was the YTB website and a Success From Home magazine.

She handed me several articles that she authored and asked me to read them along with an article from an entrepreneurs magazine.

Ah yes, that beautiful example of journalism, Success From Home where you too can buy the cover and content for the right price. As to her "authored" articles....I woudl like to see them. I know that the insurance industry is big on this, is YTB trying out that scam too? Having someone ghost write a column and for a price they put your photo and name on the byline?

I researched it and found also that YTB does not hand out Travel Agent credentials, but you must EARN them by selling travel via your own website. That fact sealed the deal. Then I found out that they are a publicly traded company on the stock market and that was all I needed.

They claim to not hand out credentials. BUt they do. Just buy a trip for yourself, deduct it on your taxes and whammo--RTA Credential. BUt let me get this straight, NOT giving out credentials sealed the deal? And then knowing they were publicly traded was all they needed? I have some Enron stock sitting around for you!

It’s very apparent your homework assignment was submitted as incomplete making you a very weak species in your profession…….if you could call your work a profession. Very sad that your job description requires you to attack and place primary focus on being PESSIMISTIC as an angle to get a story printed.

Attack attack attack. What is your suggestion, all sit around in a circle at Coach's Corner and kiss his ass some more?

You attack YTB as being a card mill and not selling travel when MAGICALLY, they sold over $14 million in cruises with Carnival Cruise Lines setting a 1-day record in Cruise history last November 8th. Sure sounds like YTB is packed with slackers….NOT.

Thye did not sell $14 M in cruises in one day. Remember it was 6500 cruises. And most were certificates, and Carnival did most of the selling because RTAs cannot sell their way out of a paper bag!

While attending the same meeting you attended; there were witnesses who saw you picking your nose in the corner because you weren’t paying FULL attention to note ALL of the valid TRUE details that were provided in its entirety and you opted to be deceitful in your story.

Attack attack attack. Glad the nose police are there. I can't blame the reporter, it was probably more entertaining and factual than the presentation. But no doubt she picked the wrong one to attend as well becasue we all know...(all together now) I don't do my presentation that way!

You are the one working in scam land. The man at the top receives a higher pay for all of your deceitful articles and your pay is not enhanced. Hhhhmmmmmm – whats wrong with that picture ???

What IS wrong with that picture? How much is the man at the top of YOUR pyramid making? I am guessing the publisher of the Post-Tribune is not flying all over in a Lear jet.

Strangely enough, YTB is such a scam ---- there are many celebrities, professional athletes and organizations enjoying the abundance this company offers.

And celebrities are always involved on the up and up. Is Michael Vick a member yet?

YTB is strong and stands by their word. They back you 1 million percent. They treat everyone on their team like family and make all of us very proud to be associated with this escalating dynasty.

Just a point of order here. YTB has proven time and time again to be math challenged. There is no such thing as a million percent. It is 100%. Maybe you are just used to adding all those zeros to inflate your income, but there is no such thing as a million percent.

Bill Gates had a vision that every home would own a computer one day. People laughed at him. Now you access the internet via a cell phone, every home has a computer if not multiple units and they also carry them around.

Uhm. every home has a computer? What dream world are you living in? Or was this somethign you were told at a recruiting meeting along with the "fact" that 300,000 travel agencies are out of business.

The accusation and the fake letter by YTB's attorney surfacing on the net is another ploy to make YTB look bad. The letter was a phony and it was intended to sway people who don't know any better. You believed it, right?

Ted Lindauer's letter was very much a real document. Saying it is not is a lie. Don't make me post the photo of the kid flipping the bird again!

This John Frenaye mentioned in the article- I know well. We have had communications in the past. He does sit on a board but I want to also mention that he is a traditional travel agent and owns a travel agency. He asked me to drop YTB and come to work for him! Interesting. I have the documented proof. Another wash!

I know this John Frenaye well too. Bring it on! So if you know me so well and have corresponded wiht me, please, please post the email (including headers) on here that "proves" I tried to hire you away from YTB. I double dog dare you! (That was my favorite comment)

We NEVER support dropping cards under windshield wipers...how unprofessional is that? Dropping them in a post office to mail - yes, but under windshield wipers? Really.

Yes you do. Read the comments on this blog. Search the terms "soccer + tax" and read the comments!

I would like to leave you with this thought. If YTB is so shady, why have they not been investigated by the FTC? Why is it that they have not been shut down and moved off the Stock Market by the SEC? They have been compliant with everything they do. They follow the laws and run their business right.

Just because they have not been shut down does not mean they are not corrupt. It does not mean they are not under iunvestigation. All it means is that the legitimacy of the company has yet to be proven--or disproven.

The statement about the Ricketts paying anything is not accurate. They were investigated but found to be innocent of the charges. No payout.

Can't say anything about that, but the dates and times are somewhat suspicious. Wasn't that about the time YTB began to court their very own Florida State Senator Burt Sauders?