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.

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.

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.

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.

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?

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.

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