I guess I’m extremely callous. After all these years of reading Anti-MLM Zealots perceptions, predictions, and outright exaggerations about life and how they perceive this world – I can pretty much count on the exact opposite view or perception being the one that’s accurate. As a marketer and online entrepreneur, the last few months have been rather interesting as I’ve read, watched, and gained insight to the new FTC Guidelines concerning Blogging, Affiliates, and Advertising that went into effect yesterday, December 1st.

It might surprise you that advertising guidelines haven’t been updated since 1980 – which we all know is long before most of us even had a computer in the home or at the office – let alone internet access. Needless to say, these new guidelines for the internet have been long overdue. For some who like to live on the edge – like it or not – their way of doing business needs to change or they’ll face some hefty penalties if they don’t.

What’s so astounding to me is the reaction of a few really valuable bloggers, affiliates, and marketers, and what they have done recently because of these new guidelines. All of the sudden they’re running scared – some to the point of ending their blogs and affiliate programs because they’re fearful of what the FTC might do. Why? Because they’ve bought into all the fear mongering, half truths, myths, and flat out lies about what the new guidelines from the FTC are actually designed to do.

Based on what I’ve studied over the last few months concerning these new guidelines – those of us who have been doing business ethically and properly, have nothing to worry about. A simple disclaimer that states “duh – I get paid when you purchase from this link on my blog” (or something to that effect) will cover most of what you see on a blog like this one.

Yes, I know that adds (like the ones to the right) are painfully obvious. It might surprise some that there are people who take issue with the concept of sharing a portion of what they purchased with the person who introduced them to the product. YTB and other Travel MLM critics provide a perfect example of this type of stupidity and wealth envy. The thought that I get paid commission when I simply point someone to my “Booking Engine” and receive actual money when a service or product is purchased from my site is unethical and deceptive to them.

Why? Because in their mind I didn’t do anything that warrants a commission. I didn’t “work” for that sale in the same way they’re familiar with. They call it lazy – cheap – and a scam.

Look, I’m a marketer and entrepreneur and I use various marketing materials and subscribe to various entrepreneurial publications and sites. I’m going to obviously write on occasion about these materials and publications that I like. Why they’re a benefit to me and possibly you. If you find a link to the material, publication, product, or service – there’s a very high probability that it’s an affiliate link and when you find that the benefits, services, products that I talk about will benefit you as well – if you purchase the product like I have, I’m going to receive a commission for referring you to that product.

Now I know that the vast majority could of you care less about me and what I make because every single one of us (including me) are selfish and more interested in our own features and benefits – and what the product is going to do for “me”. (In this case “me” actually means “you”, not “me”.) However, there are those who believe it would be deceptive – unethical – immoral – or otherwise fraudulent that someone would be paid for writing and promoting such products without actually telling you that they are getting paid when you purchase these products, services, publications, or materials.

So let’s just cut to the chase here, and tell you that I believe that I provide a very valuable service and product with both this blog and my weekly and monthly newsletter. While I do enjoy and find writing extremely rewarding and gratifying – simply writing without adds, products, services, and other materials in hopes that you will find value and eventually purchase them for yourself, producing income for myself and my family – this blog and newsletter wouldn’t garner the type of quantity and quality that it does because it wouldn’t be worth my time and energy.

The bottom line here is that you’re going to have to tell people upfront that you’re going to be paid or that you received a perk (free copy, or promotional piece) when you write about these products from here on out. For the vast majority of people, they’ll not only find it refreshing and incredibly admirable (which in turn adds more credibility for you) but it helps build your relationship with your readers and subscribers.

For those who have the wealth envy complex and issues with an average guy like me actually obtaining monetary compensation or a perk for writing may never understand or accept this concept or technology. You simply need to accept and understand that their fears and phobias are their own.

If you want a very good overview and explanation of what these new guidelines consist of and what they mean to you as a marketer, blogger, and affiliate the best resource I’ve found was from Jim Edwards. (Through my tax guy affiliate, Ron Mueller) Jim has a great interview with Rich Cleland, Assistant Deputy at The Federal Trade Commission. Rich and Jim will not only give you the best in depth interview I’ve found, but puts the whole FTC Guideline issue into the proper perspective.

You may find, like I do, that these new guidelines are designed to help your business and credibility – not hurt it. You’ll also find , like I have, that there is very little that you’ll need to change in order to adhere to the new guidelines if you’ve been using your noggin and practical common sense.

And no, I’m not being paid or compensated to tell you that. ;-P

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Welcome to the next phase of YTB 2.0.

A year ago YTB announced the “contemplation of a franchise” in a press release issued just before last years convention. Today that “contemplation” moves one step closer to “reality”.

We touched on this with Sunday’s newsletter and wanted impress on you how this phase of YTB 2.0 will change how many perceive our model. By this time you have come across people who have a difficult time understanding and accepting Network Marketing as a legitimate business model. People don’t actually know that the nations oldest Network Marketing Company started as the California Perfume Company back in 1886. (In 1939 they changed their name to Avon.) Mary Kay is another example of a very powerful and stable MLM that not only markets to the same demographic, but was founded 46 years ago in 1963. Neither company has run out of woman to recruit, while basically limiting both companies to half the world’s population. (There may however be a few males mixed in with either company.)

Yet there are those that fear that someone will be crushed by a huge pyramid when there is no one left.

The suit filed by California was a perfect example of the ignorance our society has surrounding MLM Models. Without verifying, without even looking at our two models, the “Description of the Action” in the settlement stated “Defendants’ marketing scheme effectively requires participants to purchase a website from Defendants and pay monthly fees for the opportunity to recruit others”.

You know that’s not true; we know that’s not true. (Not to mention illegal.) The fact remains however, that because California said so, a portion of society will take this as fact instead of verifying if a statement has value.

Even now, with California behind us, with YTB still standing, still sending out checks, still winning awards, still growing as a travel company, there are those that still allow a tiny portion of society to dictate what they think and what they believe.

If you’re reading this right now you have endured a smear campaign of ignorance and fear mongering that included false claims of a gigantic pyramid scheme which both pro and con believed would finish the company. We want to congratulate you for holding on to your dreams, your vision, and your beliefs. Nobody should have the power to take that away from you, and we know many have tried.

It’s time to raise the bar. It’s time to look for better quality, better intelligence, and better business minds.

We now have a tool in place that can turn the tables, promote professionalism, character, and strength and it starts with you.

Moving forward, all potential California participants are required to wait 14 days before they are able to purchase a YTB Travel Store, or become an Associate who sells Travel Stores. So what does the 14 Day cooling off period have to do with Franchises? We’re glad you asked. (And even if you didn’t we’re going to tell you anyway.)

During this time, potential participants will be given all the facts and figures concerning the purchase of a franchise. In the settlement agreement which was filed with the courts the Description of the Action it states:

“Defendants have operated an on-line travel agency franchise without having registered as a franchise with the California Department of Corporations, in violation of California Corporations Code Section 31005 et seq.;”

We didn’t realize that we bought an on-line travel agency franchise until this was documented in the settlement. This is however a claim (Description of the Action) documented in the settlement filed with the courts.

We found the following reference in Franchising for Dummies by Michael Steid, and Dave Thomas. We’re NOT using this reference because we consider you a dummy, but because of its ability to describe franchising in a clear concise manor that we believe everyone will understand.

“Included in the regulations governing the sale of franchises is a cooling-off period called the ten-day rule. Franchisors are required to give their prospects a copy of the UFOC the first time they have a “personal” face-to-face meeting to discuss the purchase of the franchise, although most franchisors will provide the UFOC much earlier in the course of their discussion with a prospect. Franchisors must wait a minimum of ten business days after giving a prospect the UFOC before allowing the franchisee to sign the franchise agreement or pay any money to the franchisor. The purpose of the ten-day rule is to give you time to think about your decision.”

Please note that the 10 day rule requires 10 business days to expire. During the course of 10 business days you will have two weekends during that time for a total period of 14 days. If you would like to describe this as “10 business days” instead of “14 days”, you are welcome to do so, just as long as the word “business days” is made clear not to include Saturday or Sunday. (Six of one; a half dozen of the other.)

As we moved forward, the Settlement made with California also states:

8. Registration as a Franchise

No later than 30 days from the entry of Judgment, Defendants shall see the approval of the California Department of Corporations (DOC) and shall make their best efforts to obtain approval from the DOC to sell franchises. Any additional conditions or restrictions that my be required or imposed by the DOC for Defendants’ operation of a franchise shall also be required of or imposed on Defendants as part of this Judgment. If the DOC grants its approval for Defendants to sell franchises in California, Defendants shall begin offer such franchises for sale no later than 90 days from the date of the DOC approval. Neither the decision by the DOC regarding Defendants’ application to sell franchises in California, not the timing of that decision shall affect Defendants’ obligation to comply with any of the previsions of this Judgment.

There are 14 States that require Franchise Disclosures which include California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. Because of the one time expense of creating such materials, and our belief that a franchise model will increase retention because of it’s perceived value, YTB is moving forward with a franchise model both nationally and internationally.

This will take some time, and we do not know the exact date of the National completion at this time. However, once complete, YTB will be the largest franchise in history.

Some of you may be able to remember the 1984 Presidential Election between Walter Mondale and then sitting President Ronald Reagan. During the course of the debates that led up to the election, Mondale began to make Reagan’s advanced age an issue. President Reagan was the oldest President in history, and some of his staff commented that he was tired after the first debate with Mondale. In their second televised 90-minute debate in Kansas City, Reagan and Mondale debated on international policy and national defense.

Again the issue of age came up during the debate.

Reagan in his best awe shucks tone said, “I want you to know that also I will not make age an issue of this campaign. I am not going to exploit, for political purposes, my opponent’s youth and inexperience.“

Many didn’t like Ronald Reagan. (And you may be one of them.) Ronald Reagan was however a master in reframing and turning the tables on his opponents both within the political arena and around the world. Successful people and businesses turn apparent weakness into strength. They change history, and they change lives. We see California’s weakness and have now turned it into a strength moving forward.

Will everyone see it? Absolutely not. We were right on mark with the resurgence of activity and excuses on the forums, boards and blogs. Some still want to take your dreams and the power we talked about earlier. Some will still insist that YTB is nothing more than a “pyramid scheme”. Some will still laugh at you. If you want to give them that power, that’s entirely up to you. Why anyone would be willing to let others control and dictate what you think and how you feel is a completely foreign concept to us. Especially in a country such as ours during a weekend when we celebrate our Independence.

Remember, we need to raise the bar, not lower it. We joined YTB to pursue dreams not crush them. In the course of pursuing our dreams of owning a Home Based Business we bought into an MLM. What we’re going to end up with is a franchise.

The way we see it Scott was right…we’re bigger – stronger – superior in every way.

Who knew?

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Whatever happened to personal responsibility? When did we start blaming everything and everyone else but ourselves for problems? I found a gem the other day, and come to find out that it’s not the lack of service, it’s not all the time we spend on the internet posting our opinions, it’s not because we forgot just who our clients are and what our customers actually want. And it certainly can’t be because our clients are capable of doing what we do for a living on their own through the likes of web sites called Travelocity, Orbitz, and Expedia.

No, it’s none of that. What it all boils down to is none other than Travel Weekly. Who knew?

Interesting that after a years worth of hammering suppliers to choke out the pariah of untrained and uneducated Yahoo’s to little or no avail, (Royal Caribbean, Perilo, and Celtic Tours were the only three that headed the pleas.) we now move to the media outlets and industry publications to what looks like a new desperate attempt, begging if you will, to stop promoting these blasted MLM’ers who are ruining their business.

It’s not the first time suppliers have turned their back on the traditional travel agents, suppliers need the business, especially in this economy. Speculation that it was the suppliers fault stemmed from the ASTA who took a stand against MLM back in 2005 going all the way to the FTC. The blame fell squarely on the backs of suppliers after their attempt fell flat. Today, the largest cruise line in the world has teamed up with the largest Travel MLM in the world to promote gift certificates to increase sales for both the cruise line and the agency in the 4th Quarter.

A battle that I can only guess critics have resigned themselves to finally let go of.

Now that some have moved past the fact that suppliers just aren’t going to listen, the focus now turns to trade publications as they blast away at one of the most prominent and respected industry publications in the industry, Travel Weekly.

What was thought to be a fluke back in 2007 when YTB suddenly appeared on the pages of Travel Weekly’s Power List at #35 was dismissed as being nothing more than recruiting fees by those who needed to forgive Travel Weekly for their grave error. When news broke later in the year concerning Royal Caribbean’s termination of YTB, the company and its founders were suddenly catapulted to the front pages of just about every travel publication on the market. Most by the way praised the RCL move, as it was believed that this would be the first step in the avalanched of suppliers who would now agree that Travel and MLM’s are in fact a bad mix.

Instead of an avalanche of suppliers, what was found was more media coverage for Kim Sorensen who was named one of the 33 most influential in the travel industry and when you compare that to just 3 suppliers who sided with PATH, most everyone can see how lopsided that slap in the face was.

To add insult to injury the media coverage by Travel Weekly didn’t stop in 2007. While many critics speculated that Travel Weekly had “seen the light” and the nightmare of all this free publicity was now over, not only did Travel Weekly yet again document sales of $414.5 million in travel sales for YTB, but informed the masses that this speculation of “fees” were unfounded. No, the editors took the time to inform and educate critics when they stated that they check “numerous times” and $414.5 million are in fact “travel sales” not the “fees” that were being pitched.

Dag gummit!

I guess the final straw for these agents was Kim Sorensen being named to Travel Weekly’s Virtual Leisure Summit this fall. I could also speculate that this one name brought in a good number of participants who would have never given this new virtual summit a second thought if it weren’t for a name like Kim Sorensen being attached to it. Now I don’t know this for a fact, but I have to wonder just how big the smile were on editors faces over the frenzy this one name created all over the internet. If you know anything about marketing and media, they LOVE people and circumstances that go against the norm. That’s what makes it newsworthy. (I just listened to an audio from Joe Vitale, AKA: “Mr. Fire” yesterday that eluded to this very subject.)

If you find something that works, you keep doing it. A big reason why Kim will be participating in the upcoming “Preview 2009” December 18th and 19th. It’s got people talking all over the internet once again, as the article above pitches the show, and the buzz has also prompted Mark Murphy, President and CEO of Performance Media Group a competing publication to mention both YTB and Travel Weekly in its own publication.

What’s unfortunate is that Mark, like most who’ve never been involved in Network Marketing simply perpetuates more myths about the industry. He’s obviously unaware that A.L. Williams is no longer A.L. Williams, but now Primerica. Nor did he realize that this form of sitting across the kitchen table helped A.L. Williams gain the number one spot in Whole Life Insurance for 7 straight years.

Even sadder, and I see this all the time from ignorant (not stupid) people who don’t know any better. This use of the 2007 Income Disclosure Statement is almost always documented to show that all YTB does is recruit people into the business. I’ve yet to see any outsider realize that this document actually contradicts the very myth their trying to promote. Those I speak with who’ve heard this myth suddenly realize that this fear about everyone recruiting is inevitably washed away when they see that only 20% of the company actually recruits a single soul.

I don’t know if the ASTA was actually informed by the FTC about these recruiting fees back in 2005, based on how their pitch fell flat. I suspect the facts will come to light for everyone once again via California that it doesn’t cost anyone a dime to recruit new members into YTB. Some of our critics already know this as they may be counted in the 2008 Income Disclosure Statement as making squat. But that’s yet another story for another post for 2009.

In the meantime, well enjoy the press and the talk about YTB as it continues to make headlines and front page news for going against the norm and creating its own entity in the travel industry.

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There are times when I read or hear about something, and it just doesn’t sound right. I’ve been attempting to get my head around this California complaint off and on since the Convention. Something just didn’t fit. It’s a single state, with the help of Illinois who is still on the sidelines, and we’re still doing business in California. (More business by the way than any other state in the country I might add. ;-P)

If you’ve been involved in the Travel Industry for any length of time, you know who the major players are, who gets along with whom, who hates who, and who just doesn’t amount to squat in the Travel Industry. It’s no secret that the ASTA has put together quite a propaganda campaign against these so called “Card Mills”. Doesn’t matter that YTB now has minimum booking requirements before “cards” are issued, YTB is used because we happen to be the most visible in on the internet and in the trade publications. (Legislation YTB was able to overcome and win in California I might add.)

I had an opportunity to read the complaint that was filed some time ago and one term stood out for me that made me think of one particular organization right off the bat. Since I didn’t have anything substantial at the time, I passed it off as nothing more than a logical guess. However based on this organizations educational piece (choke) the complaint read very similar to the 2005 propaganda that is now being regurgitated oddly enough based on similarities to the California complaint.

Like many now who “think” they have the upper hand now that they have a complaint, it’s not surprising that this group feels safe in promoting their position on the issue, along with a few on the internet appear to be rather boisterous.

I do have to add that I also believe that this “announcement” from this group was also predicated by a need to “out” a former President of their organization for coming over and supporting the very company and model they feel is damaging their industry. (Please note: YTB didn’t make the connection or initial statement, a seasoned Travel Journalist did.)

Oh…did you hear the Davidoff’s are now going to conduct three classes on the company Seminar @ Sea? (Check the latest Travel Compass or my Newsletter this weekend.) Like Marc Mancini and his Geography Bowl down at Funshine in a few weeks, looks like this excuse about lack of training from the other side is just that, an excuse.

Unlike the above industry leaders who offer solutions instead of a steady stream of complaints, the ASTA has a rather long history in attempting to derail the MLM business model. The majority of damage however has been nothing more than propaganda that I suppose some people have taken heed in. With such a powerful force, and I use the term loosely, you would think they would have had more of an impact on ridding the travel industry of the “Card Mills” they report to have damaged them so.

Now we have documentation direct from the horses a… err mouth that they’ve already filed one suit some time ago in California, and while not directly implied, sure looks like they feel mighty proud of the weight they are pushing around once again in California.

I caught wind earlier in the week of the ASTA making claims to have filed a complaint with the FTC back in 2006 about this ever so popular “pyramid scheme” excuse everyone likes to throw out. (The e-mail was copied and pasted in the blue response at the bottom of this post.) It wasn’t until yesterday however that I finally got something a little more substantial.

And a whole lot more.

I want to address this complaint with the FTC as to why nobody every heard a word about this from the FTC, and highlight the excuse. (It’s pretty funny actually.) Here’s the gem as it’s worded from the ASTA.

“We also complained to the Federal Trade Commission, but our request for a trade regulation rule was denied in large part due to lack of support from the supplier community.”

I find it hysterical that they blame the suppliers, the very life blood of their business for letting YTB slip through the cracks. Had nothing to do with the fact that they couldn’t come up with valid complaint the FTC would listen too now would it? Nor could it be that are mistaken or more accurately don’t have a clue what a “pyramid scheme” actually is.

You can’t fit a square peg into a round hole. I do have to wonder however why they just didn’t announce a “do over” like they did in their past election.

Did the FTC not realize that this was the ASTA? Look, it doesn’t matter how big and bad you try to make yourself, you still have to prove your case in this country, (THANK GOD) before the Government will find you guilty and actually enforce action.

Why do you think we’re still doing business in California even with such a large amount of money up for grabs?

I often find a blurb from the SEC posted on the Internet concerning the FTC’s stance on pyramid schemes. Why do they use the SEC you might ask? Don’t really know, but my guess is that it “sounds better” than what the FTC has up concerning illegal pyramids.

Again…I need to add that the graphic the SEC has up concerning more participants than the world population has yet to happen in a single solitary MLM. Many of whom have been around for decades. (But don’t let that stop you from listening to a Zealot when they post something like this for you.)

So, the ASTA fails in getting the FTC involved, (as I’m sure many other Zealots have attempted to do) and they spend the next couple of years hitting up any State that would listen and finally found one desperate enough to file a suit. Call it whatever you want. Stupidity – greed – political advancement – I don’t care, but since the FTC, Florida and now Illinois have never stepped up to the plate, what do you think ol’ Gerry has in regard to this complaint?

Nothing more than a very dry bone of contention.

While I know some laugh at this notion that a group or organization in the Travel Industry would have the kind of pull or clout to lobby Politicians. I find it interesting that we have a second article within the last week of more lobbyist throwing money at Politicians, although from the supplier end, but a cool $297K Q2 adds up to organizations getting exactly what they want through what ever Government agency (State or Federal) they think they can purchase.

Those who subscribe to my Newsletter know my stance concerning these suits being nothing more than a personal attack. A complaint filed in an attempt to slow or even destroy a company that is “growing to big too fast”. (The AG’s statement, not mine.) I realize that like terrorists, some flat out deny any involvement, and I’ve stated that I would agree some were not involved. (Not that smart, and not their mode of operandi.)

That doesn’t mean however that there is an organization that does have just enough clout (or money) to push something like this out into the public eye. Unfortunately for them, that’s about as far as their going to get based on the failures they’ve faced concerning past efforts. Which include the FTC, other states who never moved past the investigation mode and California Legislation that was merely a blip on the radar screen and clearly separated YTB from this notion of being nothing more than a “Card Mill”.

Oh, before I go. I did happen to send this “gem” up to the home office with an idea of getting everyone together on the Seminar @ Sea with the Davidoff’s and sending the ASTA a postcard from the Seminar entitled “Greetings from Cozumel”.

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