MLM Back Up

Wednesday, January 7, 2009

More Independent Views

I just discovered a somewhat dated post in another blog that does a good job analyzing YTB. And the blogger posted a recent update as well.

This guy is not in YTB, he is not in the travel business. He just took a look at the opportunity for what it was worth and commented on his findings.

No spin from either side here. What do you think?

Tuesday, January 6, 2009

Did The MLM Industry Toss YTB Under The Bus?

Wow, Randy Gage, the MLM Guru certainly tossed YTB under the bus in his January 2009 publication The MLM Revolution: A Manifesto by Randy Gage.

In the document, on his page 12, he states,

A perfect example here is a travel deal that's all the rage right now. They are facing serious legal challenges, and getting a great deal of negative publicity. They're playing the aggrieved party and acting like they are being unfairly prosecuted. But if you look at the actual annual report they publish, you can see that most of their sales--and most of the commissions paid out to their distributors--come from selling their marketing websites to the distributors themselves, not actually selling travel. This "mining the miners" rap is one of the biggest challenges in perception we legitimate network marketers face right now.

Wow, I can't believe such a heavy hitter in the MLM industry would do that. Unless....

Monday, January 5, 2009

See You In September

Not A Record But....

Revised YTB Commissions From ALL Vendors--Shhhh, It's A Secret!

Well apparently, the edict from Wood River did not take hold as two RTAs (David and Sherri Ogg who are DIRECTORS and also teach the First Class Training) have made a fantastic post outlining all of the confidential commissions that various travel vendors pay to YTB. Of course this blog will be removed within a few hours of this posting, so catch it while you can.

What is interesting is that they are still claiming that WCT is the fulfillment engine behind the air and car rentals. And noticeably absent from this list, is Globus and Cosmos. Could they have been one of the suppliers who may have decided to end their "partnership" as I suggested in early December? Globus has not been active with YTB since mid-November.

But I am confident that Carnival, Norwegian, Cunard, Holland America, Costa, Disney, Princess, Auto Europe, Crystal, Apple Vacations, Collette Vacations, Pleasant Holidays, Trafalgar Tours, Travel Impressions, Disney, and Travel Guard all appreciate that David and Sherri Ogg have let the world know just how much money can be earned in YTB.

WORLD CHOICE TRAVEL DOMESTIC $5 per ticket
WORLD CHOICE TRAVEL INTERNATIONAL $10 per ticket
AIRPORT PARKING 40% of 1st day service fee
AUTOEUROPE 17%
WORLD CHOICE TRAVEL CAR 2.5- 5%
CARNIVAL 16%
COSTA 17%
CRYSTAL 13%
CUNARD 15%
DISNEY 15%
HOLLAND AMERICA 16%
NORWEGIAN 10%
PRINCESS 15%
WORLDWIDE GOLF VACATIONS 10%
GOLF SWITCH 10%
GROOPLE 1.5-4%
HOTELS.COM <10%
GDS Booking <10%
Vacation Rental <10%
HOT RATE HOTELS <10%
WORLD CHOICE HOTELS <10%
ANNIVERSARY WISHES REGISTRY 20% of service fee
ARTIKO 15%
BISTRO MD 25%
BLOOMING BUDS 15%
CAMANO ISLAND COFFEE 20%
CHECKS UNLIMITED 20%
CHINESE LAUNDRY 17%
CLARINS PARIS 25%
THE CRAB PLACE 11%
DINE WISE 15%
DINO'S 24 KARROT CAKES 15%
DIRECT GARDEN DECOR 16%
EQUIFAX 22% of item sale/montly subscription
EZ FOREX (FOREIGN CURRENCY) 40% of service fee
FRESH TOPIARY 11%
THE FRUIT COMPANY 15%
GINA ALEXANDER 25%
GOLDEN MOON 20%
GORMET STATION 20%
GREAT BIG CANVAS 10%
HABERVISION 15%
HALE GROVES 15%
THE HARTFORD; AUTO INSURANCE $12 PER LEAD
HOME BLINDS OF AMERICA 15%
HONEYMOON WISHES REGISTRY 20% of service fee
INHABIT LIVING 11%
JUST FINE, INC 10%
LACENSE BEEF 25%
LAUREN HUTTON 18%
LIFELOCK $32 per sale
MODERN RUGS 12%
MY BUTCHER 16%
NIMLI 10%
O&H DANISH BAKERY 10%
OLD TIME CANDY 10%
RAFAELLO TIES 10%
RESTAURANT.COM 15%
PASSPORTS/VISAS 15% of service fee
PORT PROMOTIONS (SHORE EXCURSIONS) 12%
SHIMMER & STONE 15%
SHOEBOXED 50%
SKINCAKE RX 20%
TOBI 10%
WELLWISHERS/Bon Voyage Gifts 15%
YOUR TRAVEL WEAR 10% of item price
YTB CARS $500 per car sale
YTB FLOWERS 20%
YTB OUTDOORS 10% of merch. and trips
ZCHOCOLAT.COM 10% of merch. and trips
ZENOBIA NUTS 10%
APPLE VACATIONS
Charter Package 10-15%
Contracted Scheduled Air 13-14%
Group Booking 5%
Insurance 10%
Land Only 13-14%
Published Scheduled Air 0-5%
BRANSON ONLINE 17%
COLLETTE VACATIONS 10%
CUSTOM TRIPS 6%
KENSINGTON TOURS 11%
LAST MINUTE DEALS 6%
PLEASANT HOLIDAYS
Air 0-5%
Land 14%
Air & Car 7-10%
SPAQUEST 10%
SPRING TOURS
Land Only 25%
Special Requests 12%
TRAFALGAR TOURS 10%
TRAVEL IMPRESSIONS
Online Booking 15%
DISNEY 10%
LAS VEGAS 12%
FLORIDA 12%
WYNDHAM'S RESORT VACATION E-CERTIFICATES 25%
TICKETS & ATTRACTIONS (WORLD CHOICE) 3.5%
TICKETS NOW (TICKET BROKER) 10%
AIG Travel Guard 20%

And what is the deal with all the potions and lotions. I thought YTB was a "travel" company, just taking a quick look, it seems that travel only represents about 40% of their "business"--and I am being generous there.

In this economy, where we are looking for the consumer's discretionary income, do the travel suppliers really want to compete with Modern Rugs, Checks Unlimited and a Chinese Laundry?

Saturday, January 3, 2009

Blog Note

Thanks for your patience in putting up with the inane anonymous comments for the past few months. Effective on Monday, January 5, 2009, we will revert back to requiring a registration to post comments on this blog. Of course, as always we will not be moderating or picking and choosing what comments to publish--we can leave that to the other guys!

However, I do encourage anyone with an opinion (on either side of this argument) to register, post and let your voice be heard. While I can see the allure of anonymous posting, to me it somewhat indicates a certain amount of cowardice--especially when all that is really required is a simple google registration.

Friday, January 2, 2009

Tomer and Madoff: A Common Thread

With the recent arrest of Bernie Madoff, it is hard not to notice the similarities between Madoff's ponzi scheme and YTB. Apparently this did not go unnoticed by others either as is evidenced in a recent press release calling for more stringent enforcement by the SEC and the FTC against pyramid schemes.

The release states that with the current economy, the proliferation of these schemes will only increase and the end game will be more money lost by more consumers who can ill afford to lose it.

Some excerpts:

The Bernard Madoff Ponzi Scheme is the tip of a far wider pattern of pyramids and Ponzis. In a letter to the chairmen of the FTC and SEC, PSA charges that the lapse of FTC and SEC regulation has led to an epidemic of pyramid frauds, and it demands renewed regulation.
Eight "direct selling" companies that operate as endless chain recruitment schemes are now listed on major stock exchanges or on the over-the counter markets. The aggregate capitalization of these eight schemes is approximately $5 billion. One of these, Your Travel Biz.com, is currently prosecuted by the California Attorney General who called it "a gigantic pyramid scheme." The other publicly trade companies using the pyramid model operate with impunity.
The basic fraud of a pyramid or Ponzi can be revealed only upon closer examination of the operations. Reliance upon complaints or blatant financial irregularities as cause for government action leaves the public exposed and allows the schemes to operate unfettered. Normal market mechanisms such as word of mouth warnings from consumers that were harmed or obvious indicators such as bankruptcies or police records of promoters do not apply in the white collar and well disguised world of pyramids. Until his first indictment, the infamous Charles Ponzi never missed a payment to investors in his namesake fraud of the 1920's and, therefore, did not generate "complaints."

A letter has been sent to both the FTC and the SEC calling for greater enforcement and can be found by clicking here.