Make Your List YTB – And Check It Twice!
One thing I absolutely LOVE about YTB is the way this company figures out a way to pay out more money to the field. If you’ve every heard Coach or Scott speak, or had an opportunity to speak with them one on one – you’ll realize that they’re “Reps” at heart. When you spend 20 some years as Reps like they did with AL Williams, the feeling doesn’t leave you.
They’re unlike any CEO – President or Executive I’ve ever seen. You take one look at them on the street and you’d never know their net worth. They look – act – and befriend you just like anyone else. Average people at best.
But there is nothing average about how they take care of the field, giving those that are motivated by sales – be it travel or team building – the Founders of YTB create every possible avenue they can think of to put money in the hands of those who want to go out and get it. If it’s too hard, they figure out a way to make it easier. If not enough are qualifying, they change it or enhance it. One segment goes down – they create another segment to compensate.
It’s always been about how much money they can pay out to the field. YTB is constantly tweaking – enhancing – making it better, easier, and more lucrative for anyone who is willing to go out and get it.
Honestly, it’s been so lucrative, that it’s gotten us in trouble. California assaulted the company with it’s hideous claim of being a “gigantic pyramid scheme” in an attempt to end the companies existence. When you pay out 70% of what cames in instead of the 10% average the travel industry pays – that’s going to garner some attention. What do we hear all the time from the critics? “All the money is in the recruiting” right?
Well, yes – and it’s not hard to do when the travel industry pays out a max of 16% and you pay 70%. Duh?!
What’s so amazing to me is that even after the assault from California – not only did the Founders protect the compensation, but they enhanced the comp plan for new IMR’s, (Independent Marketing Representatives) cutting the requirements in half in order to get to the bonuses into the Power Team quicker. As a result, what once took twelve sales to get your first $1000 bonus – now only takes nine sales.
As a side note: For anyone who’s thinking of the 60% rule where 40% of the nine couldn’t be both Reps and TSO’s. At most three of the nine (33%) would actually qualify as both. (If that) After seeing this rule in action since the settlement, it’s been nothing more than window dressing and never been a factor in anyone’s organization. I know it can be a real chore dealing with all the ignorance surrounding Reps, Affiliates, Associates, TSO’s and IBC’s. In this case ignorance enabled the company to settle with California and agree to terms over a perceived issue that ultimately had no consequences in compensation. California nor anyone outside of the company truly knows how teams are built, nor how many are actual “recruiters”.
In this case – a critics ignorance truly is bliss. ;-P
If that wasn’t enough, Convention came and the Founders not only increased the Travel Commission Contracts, but created contracts up to 100% commission, with full life and health benefits. It’s still unmatched in the industry when you factor cost, benefits, and percentage all in one. I’m still waiting for a legitimate contender to beat these contracts. Instead, I get excuses about not being allowed to offer insurance to non-employees. Even better – that only ONE person qualifies for the insurance in the entire company. (While the income disclosure lists BOTH the Affiliate and RTA categories with individuals who exceeded $25K annually.)
For the true lovers of travel – you just can’t beat these contracts in the industry.
Let’s not forget the $10K Challenge for the newcomers and the mentoring money for the veterans who are helping them. I’ve never seen something so simple and easy as handing out one DVD a day and collecting a name and e-mail. To spend $4 in tools and training per DVD and turn it around for a profit of $29.33 per DVD just for collecting a name and e-mail address is also unmatched in business. (More about how to do that is found here.) For the mentors, there’s additional money for training, and if you do your job correctly, there are overrides on all product sales from each business center.
Are you beginning to see how much money is available for anyone who wants to go after it? These aren’t some impossible, unreachable goals here. (Unless you can’t ask someone to watch a DVD.)
Well hold on to your hats folks – because Coach, Scott and Kim did it again.
Remember the interview and article Travel Weekly wrote over the weekend about Scott and Noah Mantos up in New York? Nadine quoted Scott saying the company would roll out new features and it’s vision for the future in Las Vegas in January.
Part of that vision was announced this week on a Directors call and it’s a Christmas bonus like no other I’ve ever seen.
Some of you need more than 6 sales to earn a $1,000 Leadership Bonus because of fall off. You know, the people who bought a Business Center who quit after two months because they couldn’t figure out that it takes additional training and work. (It’s always been part of this business.) Well, the $1,000 Leadership Bonus is no more than 6 sales away. Yep, the company is going to reset everything just before Christmas so you can get a bonus.
But it gets better. Whenever you earn a Leadership Bonus, the sales associated with that Bonus will be locked away. No more replacing the sales that fall off from any previous Bonus. (And you know how that works when you get into the high teens and twenties.) This works exactly the same way as it currently does at 30 sales BUT NOW it happens at 6 sales. And as extra incentive – all sales made after October 31st will count toward your next Bonus. If a Site Owner makes a $99 payment and it is one of their first four payments, it will count as .25 toward the current bonus. All sales made prior to November 1st will not count toward any Bonus unless they are one of the 6 that count for your current Bonus. Those sales will count toward the $10,000 Bonus.
The program is good through the first quarter of 2010. (Maybe longer.)
That’s one heck of a Christmas bonus – because you’re in control of it!
I’ve read that Coach, Scott and Kim are evil con men. Just this week as a matter of fact in the comments section of Nadine’s article in Travel Weekly. (That oddly enough is masquerading as a “press release” because critics need more excuses to be angry and bitter.)
Sure doesn’t look that way to me – how ’bout you?
So what do you say? Make your list – check it twice, and go show someone how they can earn a $1000 bonus this Christmas!
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Tags: Christmas, Travel Agent Commission, YTB Marketing, YTB News
December 4th, 2009 at 9:57 am
-When you pay out 70% of what comes in instead of the 10% average the travel industry pays – that’s going to garner some attention. What do we hear all the time from the critics? “All the money is in the recruiting” right?-
The above caught my eye when reading this today. Can you give us a mathematical example on how a suppler commission payout is different between YTB commissions earning on a travel sale vs. an agency commission earning?
Say the product total was $1000.00 net sale.
Are you saying an agency earns anywhere between 10-16% / $100-$160 dollars on a $1000.00 net sale, but YTB’s arrangement is much different when you mention 70%. What does that 70% really mean?
Or
Are you saying YTB pays back to you 70% of YTB’s earnings from your sale by that supplier. If that is the case since you say 10-16% is the industry max, the income you receive is anywhere between $70-$112.00 off the $1000.00 net sale, correct?
Just curious
December 4th, 2009 at 1:11 pm
Not quite Spectator. I guess you have to be in the industry to understand how poor the commissions are in the Travel Industry.
In 2008 YTB sold $424 million in travel. Of that the company earned $28 million in commission from suppliers. (Under a 7% average)
The same year YTB sold Travel Website and earned money from hosting fees to the tune of $122 million and paid out $80 million. (Paying an average of 65% of all revenue earned out to the field.)
YTB sold 72% more in travel sales that year than it did in websites and fees for a fraction of the overall revenue earned. While YTB has very little if any control over the commission percentages (other than performance volume) with suppliers, everyone harps on how much more revenue is earned selling Travel Websites over Travel services and packages.
The two revenue streams don’t compare when it comes to an average percentage.
December 4th, 2009 at 4:50 pm
I guess your right, I need to understand a bit more, so if you could educate me a bit.
Make it simple for me to understand so use the standard 16% commission you talked about earlier on a product that netted $1000.00, meaning that is what the supplier paid commission on.
If I own a YTB travel business and I sell the travel product above what would I earn in commission when YTB cuts me a check for that single sale?
In the same token what would I earn if I own what is called a brick and mortar agency and I have always been under the impression the supplier pays these business directly?
December 4th, 2009 at 11:47 pm
The average commission split in the industry is 74%. Meaning the Agent is paid 74% and the Host (or brick and mortar) keeps 26%.
I have a 75% commission contract with YTB – So I receive $120 and YTB keeps $40 based on your example.
You are correct, the supplier pays the brick and mortar directly and the host then pays the agent.
December 5th, 2009 at 9:13 am
Okay starting to get it.
What your saying is, if I “own” a brick and mortar agency and the supplier pays me, the agency owner directly, the owner receives the full amount of commission or $160.00 @ 16% on $1000.00 sale. Then if I was what you term host I would pay a commission to an independent agent that made the sale 74% of the commission I received as owner, correct?
Whereas, in your setup. Your the owner, but though YTB. Since your the owner why do you have to split the commission with YTB and not get the full commission like the owner above does? This does not make sense to me.
I’ve mentioned before, I own a few businesses. In two of our companies we use independent or sub-contractors who are under contract with my business. They receive a commission from a sale. But they are not in any way shape or form an owner or employee of our business. It almost appears this is the way it is set up in your company with YTB, or am I missing something?
Finally, in your example above the difference between an agent being paid 74% commission, and you receiving 75% of the commission is only $1.60. Not enough to squalk about is it. Being a business owner for many years, in my opinion if I’m the owner of the business I would want 100% paid directly to me not through some third party, as I’m the one taking the libality on the sale.
December 5th, 2009 at 12:20 pm
Spectator;
To create a site with the vast amount of suppliers and portals provided by YTB or another host would cost millions.
I am an independent contractor, as many in this industry are. I do however come from the mindset that I “own” the business – as it creates a mindset of responsibility and self reliance.
Nobody’s “squalking” either. Just educating you on the industry average. YTB like the rest of the industry has several commission splits ranging from 50% to 100%. I’ve been under a 60% – 70% and am currently under a 75% contract.
December 5th, 2009 at 1:18 pm
Okay, now this all makes perfect sense. I just could not understand with the terms being used if you where the owner of a business you had to share your earnings off a sale with someone else. But, being an independent contractor with a company now makes sense.
Squalking – I only mean the difference of $1.60 was nothing to worry about in the scope of things, did not imply anyone was personally squalking about $1.60.
Thanks for enlightening me.
December 5th, 2009 at 1:35 pm
Makes perfect sense to me too. ;-P