Remember the group of ambulance chasers who followed California’s play with a class action law suit of their own just days after Jerry Brown made his bold attempt to topple what he called a “gigantic pyramid scheme”?

We all know by now how successful California was in shutting YTB down.

In June, the court ruled that the groups initial class action “failed to provide sufficient factual allegations” concerning those who were not Illinois residents. The group has re-filed once again and “corrected their deficiency” by amending the first filing to give it a go once more. The first filing did not have standing to sue because the plaintiffs brought their case under the Illinois Consumer Fraud and Deceptive Business Practices Act. In addition, after spending over one hundred hours pleading and arguing, counsel for the ambulance chasers realized they had framed their clients relationship and argument with YTB incorrectly. The new suit now holds claim that the relationship between YTB and RTA’s are under consumer laws, (business-to-consumer) even though the RTA-YTB relationship would typically be viewed as business-to-business.

Do words like “failed”, “corrected”, “deficiency”, “amending”, “incorrectly”, and “realized after 100 hours of arguing”, give you a warm fuzzy concerning the counsel that is representing this group?

After admitting so many errors in the first filing, it appears that Counsel is just as clueless about the Network Marketing Industry as our critics who have been yammering about pyramids and scams for years. They may have even sought advise from the likes of Robert Fitzpatrick, Jon Taylor, and heaven forbid, John Frenaye. (After Wednesday’s post, you know what a huge mistake that would be.)

The suit filed back in August of last year went after the same four executives California did, Lloyd Tomer, Scott Tomer, Kim Sorensen and Andrew Cauthen. The new filing has added a smorgasbord of other names and companies to include two former board members, Timothy Kaiser and Clay Winfield, as well as their companies, Meridian Land Company and Winfield Development. The list also includes Beryl Martin, the printing company owned by Sorensen and Tomer, and while none of the defendants have been with YTB since October 2008, our new co-CEO who just joined back in April, Robert Van Patten has also been named in this new plea.

We’ll call it what it is: a shotgun approach.

Counsel certainly didn’t get any help from the plaintiffs in this action concerning YTB’s marketing model or opportunity. When we looked at the list of Plaintiffs in the filing we found an average of eight months worth of experience with the company. Two gave up in just four months, and decided playing the role of victim was a much easier option to make the millions they were after when they signed up.

• Courtney Speed – 4 months
• Kwame Thompson – 4 months
• Grace Perry – 5 months
• John Stull – 6 months
• Faye Morrison – 11 months
• Jeff and Polly Hartman – 18 months

Surprised? Not me.

I got a call yesterday afternoon from a client who debarked in the port of Miami with his family of three. He called to tell me that I was right, a five day was too short, and he’ll be booking a seven day with me just as soon as he can. Of course, I’ve been with YTB for four years, not four months. So it’s not surprising that this group who “dabbled as a travel agent” for an average of eight months were not as productive. I think back to my first year, and remember how slow bookings were. But I was also new to the industry, and spent a considerable amount of time learning, not selling. What I did sell was from pure passion about a product I loved.

I found a couple of humorous concepts in the filing which I’d like to share with you just to show how ridiculous this new suit is.

The claim states that BandBVacations.com is not a business that sells products or services. Since YTB strictly controls my actions, they are the ones who are selling the products and services. Therefore, the call I got from my client from Miami apparently was routed through the home office and not directly to me. According to the claim, everything goes through the home office in Wood River. I couldn’t get the call, couldn’t book the cruise, and won’t be seeing the commission since I’m an “agent of the travel agency”. I don’t offer a 100,000 ton cruise ship product, YTB does. The service of an excellent vacation to the Caribbean, also YTB’s.

Poppy cock! My clients don’t even know who YTB is, but they do know Doug and Ronda with BandBVacations.com, and Illinois will have a tough time finding anyone who has a better relationship with someone at the home office over any one of our RTA’s.

As an RTA I’ve made a net profit from travel sales, but the suit claims that this is impossible for most, if not all, RTA’s. I would agree that that it would be impossible for any RTA who spends less than six months in this business. But to say it’s impossible for the 25th Largest Seller of Travel in the Nation with $425 million in gross product and services sold, and a net of $27.9 million is a farce. I know the margins in the industry stink, but that’s not because it’s an illegal pyramid. Unless of course you want to call Carnival, Pleasant Holidays, Disney, Sandals, and Holiday Inn a scam. (I will agree however with a growing number about United and American Airlines.)

I’d would assert that a number of RTA’s have figured out how to make a profit, including yours truly. Instead of complaining about it, why not find someone who is making a profit and learning how to do what they do?

And finally in a very strange twist, while the suit claims that we don’t sell a product or service. (In order to make it sound like a “pyramid scheme”) The suit deducts and supports it claims that it’s impossible for RTA’s to make money selling travel in the following mannor.

(You’re going to LOVE this…)

YTB Defendants marketed and sold products to the travel purchaser market generally. As of 2007, YTB was considered the 26th largest travel agency in the United States, and their market share continued to grow. YTB Defendants directed their operations at the travel purchaser market generally by marketing and selling their products and services, such as airline tickets and cruise packages, to the public at large. Moreover, YTB Defendants’ illegal pyramid scheme injured both their travel agency competitors as well as travel consumers. YTB Defendants stole market share from brick-and-mortar travel agencies, putting many out of business. Moreover, by eliminating their competition, YTB Defendants increased the cost of travel for travel consumers at large. As such, Defendants’ illegal pyramid scheme was directed at the travel consumer market generally, effected the consumer market and otherwise implicated consumer protection concerns.

Give me a second here…I have to dry my eyes.

Do you see what they’ve done here? By taking the products and services away from us, (the RTA) the suit slaps YTB Corporate with not only defrauding consumers, (our clients) but Corporate is solely responsible for Cruise Value Center closing, Liberty Travel layoffs, and the Joystar bankruptcy. They all sold a product and service that YTB not only took away, but YTB is now increasing the cost of that product or service to these consumers.

Picture Ron Head or Coach here when I say “WOW!”

Come to think of it, this IS filed with the courts now, so this idea that YTB is putting Travel Agencies out of business has to be true right? (Nah…it doesn’t cut the mustard when John Frenaye pull that stunt, so why should it with me.)

The point here folks is to show you how absolutely absurd this new filing is, and this is a second swipe at it after the first attempt needed to be amended. If you want to buy into this crap, I’d have some serious reservations about how much common sense you actually have. This entire claim is nothing more than a fishing expedition to save face for those who wouldn’t take that time to learn a craft that frankly is very easy to talk about. And because it’s easy to talk about, simply opening your mouth and telling someone that you sell travel will give you the same shot as Travelocity when they see some Roaming Gnome on TV.

And to the Plaintiffs in this case, the quote is NOT “punt”, it’s “try, try, again”.

Idiots.

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Do You ZamZuu?

I’ve worked in several different industries throughout my adult life. I spent the vast majority of that time in the radio industry from the early 80’s to the mid 90’s. I also spent time in the Golf industry, and later in the Security and Home Automation industry before I found YTB. I quickly realized that each industry has it’s share of bickering and finger pointing. Every industry has it’s share of people who do nothing but start rumors either to discredit or get a leg up on the competition.

If you combine all the years I spent in the other industries, it doesn’t hold a candle to what I’ve seen in the Travel Industry in the 4 years I’ve been involved with YTB. The backstabbing, the ranting and raving, and the accusations that are thrown around in this industry is like nothing I’ve ever experienced.

I have to hand it to the Traditional Travel Agents, they are an extremely passionate group. Please don’t take that as any form of admiration however. Any type of admiration turns very sour when the passion is as misguided and so dysfunctional that you see grown adults belittle and scorn each other in public forums. Because all they do is bicker the industry is left fragmented and unorganized. Travel MLM’s have come and gone for over a decade now. The industry has been outraged over the MLM model and Card Mills, but because nobody can agree with one another, Travel MLM’s are not only still around, they’ve gained considerable traction in the industry.

I was looking over the data I have on how people find this blog earlier in the week. Several search terms popped out at me for consideration for an article. Before I had an opportunity to research the story, a “Google Alert” came last night that put all the pieces together in one very well written article in Travel Agent Central.

In the article Peter Stilphen, an industry advocate, seems to be convinced that OSSN (Outside Sales Support Network) now caters to the MLM industry and has said so publicly in an open letter. OSSN of course denies the allegation and is going to great lengths to shut Mr. Stilphen up. OSSN has even gotten legal counsel involved to contact Mr. Stilphen numerous times to confirm the allegations with documentation and facts. Typical of most critics however, Stilphen has ignored the request for verification. What this has boiled down to is nothing more than an “Am not” – “Are too” type of argument that once again is being played out in the open for everyone to see.

Why am I not appalled over this type of conduct? Because I’m sorry to say it’s more the norm than it is the exception. Once again, instead of promoting solutions, benefits, or guidelines that have been a real sore in this industry for well over a decade now, we have more bickering and finger pointing.

Once again…we have to ask…”How’s that working for you so far?”

I’ve read numerous times that Travel MLM’s give professionals a black eye. When you look at something like this, you have to wonder why some don’t look in the mirror and realize that professionals are doing a fine job of punching themselves and providing plenty of back eyes of thier own.

I’m not a member of OSSN, but I have gotten updates and e-mails from this organization for years. They’ve been beneficial to me in as much as to provide information about industry trade shows and supplier training that educate and enable me to be more productive in the travel industry. While there have been many offers to join the organization, thier policies prohibit anyone involved in MLM’s from joining. While they do offer a “TRUE” credential, I can’t justify switching to anther host simply to carry a “TRUE” card. For someone like myself, CLIA offers the best training and accreditation now that they’ve upgraded and enhanced thier program. As we’ve learned however, even an organization like CLIA isn’t immune to the fighting and bickering going on between “professionals”.

The last time I wrote about Peter Stilphen was well over a year and a half ago when Royal Caribbean decided to pull the plug on YTB. At the time Peter was on the Board of Directors of an association called PATH. With Peter’s urging, PATH convinced Royal Caribbean that they needed to terminate it’s relationships with Travel MLM’s and Card Mills. To this day, we’ve only been able to verify two agencies that have ever been terminated by RCL while over a dozen other Travel MLM’s are still in good standing and booking with the cruise line. One of the agencies terminated being Joystar and the other being YTB.

Worked out well, don’t you think?

Although Peter has been a very outspoken critic of both Joystar and YTB over the years, I really don’t pay much attention to him personally. He’s simply lumped into the mix of outspoken critics who buys into the social “meme” I wrote about on Wednesday. He is however, one of the longest tenured critics surrounding Travel MLM’s that I know of. He and Bill Alverson (CEO of the now bankrupt Joystar) started the rumblings over a decade ago when Bill started the first Travel MLM called TravelMax. (Also long gone.)

Back in March I picked up another open letter to the industry from Paul Henderson of ProTravel Network, who has also grown tired of finger pointing and the bickering in the industry which adds further proof that the industry has no clue how to resolve the issue of industry credentials. Because the industry hasn’t been able to come up with guidelines, anyone associated in the industry is fair game when it comes to pointing fingers. Peters most recent crusade to eliminate “cards” has him yelling at OSSN now, an association that’s promoted by PATH by the way.

I honestly can’t tell you if the industry is ever going to get along with each other. I find it a real shame that an industry which evokes so many good memories and emotions for it’s clients in the form of vacations and exotic locations, has such a difficult time finding it’s “happy place” when it comes to communicating and getting along with each other. I’ve never seen such enormous ego’s, and so many experts in all my life. For me, it’s another reason why I stick with YTB.

You would think that some of these old dogs would wake up and learn some new tricks after so much time spent doing what they do with no answers or resolutions in sight. Unfortunaly that’s not my call or within my control. Because of the suppliers and clients I spend most of my time with, the professionals end up being a nessasary evil in the industry that I simply endure while learning, growing, and making my own way in the travel industry.

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Do You ZamZuu?

After looking around the internet the last few days, I’ve come to the conclusion that not much has changed since I went off on my Super Bowl run. While it was nice to get away, move off in another direction, take a break and actually enjoy myself, I see that some are still stuck in a rut. While there is always something going on in this industry, there are certain people you can count on for dragging their feet, kicking and screaming bantering about the same ol’ same old.

If you’ve been following the industry with me, we know how much turmoil is going on in the industry right now. Sure the economy has a lot to do with some of the issues going on and only the strong will survive. (Some might even thrive in this environment.) Back in November Liberty Travel decided to close a number of it’s poor producing Agencies, and while it’s CEO is adamant about leaving on her own terms, Cathy Pelaez will resign at the end of the week. Mid November Cruise Value Center closed it’s doors overnight, leaving cruise customers without a lifeboat to rescue them. And Friday will also be the last day of full operation for TripTailor and Vacation 59, as Sabre closes it’s wholesaling business.

US Airways posts a $220 million loss, Continental reported a loss of $96 Million, and JetBlue lost $49 million. Car Rental companies are being sued after filing bankruptcy and with the credit crunch slashing new car orders. Royal Caribbeans profits fall 98%, and Starwood drops by 46%.

Joystar is yet another black eye in the industry these days after it’s Agents file a petition for “involuntary bankruptcy”, and cruise lines have to fight courts in order to switch bookings to other Agencies so the agents can actually get paid. And while both myself and Travel Weekly wrote about an agent who broke into IHG system, stealing more than $163K in hotel bookings, we find yet another North Carolina Agent who stole some $512k from NCL, and $70k in chargebacks from Blue Sky Tours.

So what’s the problem you might ask?

Isn’t it obvious, it’s MLM.

It never ceases to amaze me how some people can be so obsessed about an issue that they can’t gain a proper perspective of the entire industry. MLM is the only model that has any type of issues like we have referenced above and if they rid the industry of this pariah, everything will be hunky dory once again. Depending on their mood, or possibly what position suits them at the time, they will either proudly accept or deny the role of “MLM Expert”. If challenged or called out by someone such as myself about how little they know, they deny it, as referenced in the comment section of my ariticle concerning IHG last week.

“I never professed to be an expert except in my own travel business.”

I have no idea who John is trying to kid here. He’s been attempting to tell me how things are since October 2007 here on this blog, while both myself and time has now shown that his comments some 16 months ago were certainly proven wrong. Along the way, we’ve seen posts like “Black Gold”, and one of my favorites from the industry itself, “The Cookie Jar”. And through it all, he just keeps coming back for more embarrassing moments while his followers hold him up in honor and appear to be proud of his antics of flipping the bird to Christians, and having links to other blogs with explicit titles and a niche subject matter concerning animal intercourse.

Pure class if you ask me.

What’s even more astounding is how blind the industry is concerning how clueless, foul and dirty this man is. As sad as it is, the industry does consider him an expert. I have not yet decided or figured out if the industry is either proud of his antics, or just so desperate about their own situation, that they simply look the other way whey he strays out of bounds like he does. (Based on what I’ve come to know about cynics and zealots, I tend to favor the latter.)

I’m only aware of one blog, board, or forum that John doesn’t have something to say about either YTB or MLM. That one forum would be WAHM and based on the subject of Work at Home Mom’s, I’m thankful that he at least knows his sexual orientation. However, the rest of the internet is fair game for this snake as he slithers all day long from site to site, and posting and promoting his hideous blog. This promotional tactic of linking back to his blog he uses, is ridiculed as sleazy when someone like myself would do the same, but for him, he’s obviously above reproach since his cause if more important than mine or YTB’s.

And now, oddly enough, just after denying his self proclaimed expertise, he’s elevated his own mind to writing about the MLM model in both TRO and getting his buddy George Dooley to post an article in Travel Agent Central. The basis of the article is not an actual warning about supporting MLM’s but the “hidden costs” of dealing with MLM’s.

It’s a been a topic of conversation for some time and try as they may they keep on promoting this bogus notion that YTB costs them money. The problem with this idea is that one of the sheep that follow John actually works with a supplier that’s offered on YTB’s booking engine. What’s comical about this relationship is that the employee that works for Pleasant Holidays calls himself “No Moron Here” but he keeps on contradicting what John is attempting to promote. It’s fun to read and I wrote about what his employer has told him in the past about his own misconceptions and fears about our company. We got a glimpse of what suppliers are actually saying behind closed doors some time ago. For as much whining this guy does about MLM’s he was told point blank that he didn’t have a say in who his employer does business with.

“The MLMs don’t bring in enough business to worry about them.”
“We don’t treat them the same way as our traditional agencies.”
“We will take their bookings (money) and supply them our product.”
“Stop worrying about them.”
“You are not to discuss the MLMs with the agents or agencies.”

Since his misconceptions have been cast aside, he lowered himself to forming relationships with other zealots who are just as clueless, angry and bitter as he is. The problem however, is that once again, he’s given incredible insight concerning the truth about supplier and MLM relationships. Take a look down towards the bottom of the comments section and what this employee from Pleasant Holidays wrote.

I guess a buck is buck and when they don’t have to put any money into YTB, they can still scrounge a few bucks off the so few bookings you morons place.

So while John attempts to convince everyone that YTB costs suppliers money, a supplier himself provides a rather unique Freudian slip and let’s the cat out of the bag that suppliers don’t hire YTB, suppliers don’t provide Co-op advertising to YTB, and suppliers only pay YTB for what YTB produces. That’s my friends is a model that suppliers NEED in an economy such as this, and the smart suppliers that actually get that concept such as Carnival Corporation, Globus, Trafalgar, MSC Cruises, Apple Vacations, Disney, and many other preferred suppliers reap the rewards of our business model. I can’t remember the last time Pleasant Holidays was even mentioned in a Travel Compass, a training call, or at Funshine. They do sit on our site, but nobody pays any attention to them because nobody from the company is promoting their features, advantages, and benefits. In all honesty, how much would it cost the company to get on a conference call the we provide, or hop in front of a camera for a video that we produce?

But no…they would rather spend thousands with a bunch of struggling Agents who demand co-op dollars in order to promote them with no guarantees of any return of their investment, when one call, or webinar would drive traffic and sales to help thier bottom line costing them virtually nothing.

I know this type of promotion from John frustrates many of you in YTB with the false claims and misrepresentation of our company and our model. I don’t know why he does it either, but you have to take it with a grain of salt, and be thankful that the truth about our model is known by the suppliers that not only understand our model, but support us. For those who don’t, they end up on the sidelines like NCL and eventually end up looking for answers somewhere else, when the diamonds in the rough are right under their noses.

Some may never get it, but with the Convergentware upgrade released late last year, some already have and many more will realize very soon just how powerful our model really is. As YTB continues to expand this solution to cruises, tour opperators, and other offerings with direct connections, trust me, thier eyes will be wide open and there will be very little anyone can do to promote otherwise.

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Do You ZamZuu?

This stinks on several levels. I had planned on writing about my Pittsburgh Steelers who have safely touched down in Tampa for this weekends Super Bowl and with “Media Day” scheduled, I wanted to write about some of the lesser known “characters” with the team. I have no idea if Jeff Reed will show up on NFL Network or ESPN or not, but if you do a little research, you’ll find a fun guy, who also likes to play practical jokes.

I still have most of the week to write about MY Pittsburgh Steelers, but for today, I have an update on the Travel Industry, more specifically Joystar which I wrote about a couple weeks ago. I’d also like to clarify some things that I’ve read out there on the internet to help separate fact from fiction. It astounds me that people either don’t know how to read, or don’t know how to research.

First, InterContenential Hotel Group (IHG) has won their suit in U.S. District Court against Joystar and a judgment has been ordered for $179,000. In a report filed by Travel Weekly, who by the way got it right, states that it was one of Joystars Agents, not Bill Alverson or Joystar themselves who committed the offense. (The Agent was a former IHG employee who hacked the IHG system.) You may be asking why Joystar is even involved if that’s the case. Well, Joystar became more or less an accessory when they failed to return $115,000 of the $163,000 that was claimed improperly. If Joystar would have done the right thing and returned all he commissions, they more than likely would have gotten a slap on the wrist, and charges would have landed solely on the Agent. (The commissions were charged to go to the Agent and his wife.)

In another case Joystar sought more time to prepare its response to an involuntary bankruptcy suit filed by a group of agents. Joystar owes individual Agents thousands of dollars in unpaid commissions. 85 agents have submitted sworn statements about money they are owed. Thus the word “involuntary” in front of the word bankruptcy. You might think that all bankruptcy should be considered involuntary, and many I’ve seen comment on this apparently don’t know the difference. True involuntary bankruptcy occurs when an individual or organization is made bankrupt at the request of their creditors, in this case the Agents who have filed the petition. In the case of Chapter 7 involuntary bankruptcy the debtor will be required to liquidate their assets in order to pay off their creditor.

In other words, the agents themselves are forcing Joystar into bankruptcy, and when assets are sold, they are the ones who get paid. If you didn’t catch the last paragraph in Travel Weekly’s report on IHG, if the petition is won, and judement is made forcing JoyStar to file bankruptcy, both the Agents and IHG become “judgment creditors”.

And finally, three major cruise lines — Carnival Cruise Lines, Holland American Line and Princess Cruise Lines discussed how to handle pending commissions and bookings still on the books. In filings with the court, the cruise lines had said that they needed the stay lifted so clients can make final payments on cruises so that they can take those cruises. The cruise lines’ court filings said that they also want to be able to transfer current bookings to individual Joystar agents themselves, withhold payment of commissions to Joystar and to pay commissions to agents once their clients have made final payments on their cruises or once the passengers have sailed. In court, lawyers also discussed putting those commissions withheld from Joystar into an escrow account for a short period of time, as well as logistics for transferring bookings from Joystar to the booking agents.

A long term solution should be address concerning this mess on February 10th.

Bill Alverson was present, and asked for a 20-day extension to prepare its response to an involuntary bankruptcy filing. Judge Raymond Ray, the presiding judge, gave them a three-day extension, and the next hearing in the case is set for Thursday.

At this point, it remains up in the air if I’ll report on this Thursday or Friday. it’s not that I don’t care about what happens here, but I do have more important things on my mind at the present time. ;-P

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Do You ZamZuu?

Remember the rumor late last year that a MAJOR supplier was going to send notice to a MAJOR MLM/Card Mill that they will be parting ways January 1?.

While a name was not mentioned, you certainly know the drill.

Who could it be?

Is the cookie starting to crumble?

Are suppliers beginning to see the light?

The same unsubstantiated and bogus claims and speculation that’s simply thrown out there to cast doubt. You would think a former journalist would know how to confirm information with a “reputable source“, but that’s not important when you need to squash a company and a business model you don’t agree with.

Turns out the rumor of a major supplier cutting someone in this industry off was true. But it wasn’t YTB.

Sorry.

If there’s any rumor or bad news going around the Travel Industry, YTB seems to always pop up as the one who it’s got to be about. If someone hears about downsizing, it’s got to be YTB, not Liberty Travel. If a company is rumored to disappear in the middle of the night without warning, it’s got to be YTB, not Cruise Value Center. If someones not paying their Agents, it’s got to be YTB, not Joystar.

While all three of these agencies have lawsuits pending in court, who is everyone is talking about?

YTB.

I guess it’s true that dogs don’t bark at parked cars.

Most recently the hope was that if a supplier is going to cut anyone off, it had to be YTB. o supplier was named a few days ago after a dot was left missing, (Omitted from a list along with dozens of other suppliers we do business with) which conveniently justified pinning the supplier where they wanted, on YTB. Even after myself and others questioned the validity, the rumor persisted, until it was finally squashed by the supplier themselves.

Now there’s a novel idea, instead of guessing, ask the source. Who knew?

News confirming the supplier/agent rumor came late afternoon first by phone, and then confirmed by a trade publication that Carnival has cut off Joystar in this absolutely hideous and embarrassing chain of events.

Because Bill Alverson has a ties to a failed MLM back in the 1990’s, you can bet your bottom dollar that this will somehow give MLM a black eye. For the record, I never considered Joystar an MLM, it’s just not the same structure, and I don’t know if anyone would be able to accept that it management that runs a company into the ground, (think Enron here) not a model.

For the record, Carnival is not terminating Joystar because it’s a “card mill”, Carnival is doing what right for the Agents who booked their clients with the cruise line. Joystar has not and is not paying it’s agents their commissions owed them. Those who were with Joystar and now with another host can move future bookings, if they have not been paid in full, to the other host “upon written authorization of the traveler”.

I’m still attempting to put together a legal liability due to an involuntary bankruptcy petition that was filed on January 2nd. From what I understand the liability in this “involuntary bankruptcy” could land on Carnival if they continued to accept bookings from Joystar. If true, (and I’m still attempting to verify at the time of this writing) we could see other suppliers follow Carnivals lead terminating Joystar from future bookings. “Involuntary Bankruptcy” is not all that common and I’m sure there are links out there, but I don’t have the patience to understand “legal talk” right now.

Just don’t be surprised if you see more suppliers make this move.

Because I’ve written about Liberty, Cruise Value Center, and now Joystar issues in our industry, I’ve received both e-mails and phone calls from former Liberty Travel employees, Cruise Value Center clients, and now Joystar Agents who simply don’t know what to do. Clients with Cruise Value Center are the easiest to direct, as long as they have a booking number, but Liberty Travel and Joystar appear to be in a real quandary right now. What’s frustrating for me is that very few seem to care. These Agents, especially Joystar, have had income suddenly cut off.

Agents with Joystar have been without commissions since September and are struggling right now to come up with the money to fight for what’s owed them. If you’d like to help or if you are one of the Joystar agents that are owed commissions, you can find information here.

Maybe it’s time to start looking at and taking care of some of your own?

Author’s Edit: It appears that Norwegian Cruise Line has also ceased doing business with Joystar as just reported in TravelPulse. Effective immediately, “The company will no longer accept new reservations from Joystar or any of its affiliated agents,” an NCL spokesperson said. “NCL will continue to service existing Joystar reservations booked prior to Jan. 5, 2009.”

In another developing story, Wheel of Fortune has also gotten into the mix after a sister company of Joystar, VacationCompare.com, failed to provide the prizes to Promotion Consideration, who arranges prizes for game shows like Wheel of Fortune.

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Do You ZamZuu?

I happen to be out of town, (without internet access!) but enjoying the Holiday with family none the less. I decided to schedule something for today before news became old news next week. First and foremost however, I hope everyone had a wonderful Christmas, and although at the time of this writing, presents are still wrapped under the tree, by the time this is posted and you are reading, I’ll be enjoying gifts my kids had made for me, and of course finding what Santa brought.

That being said, don’t think for a second that there isn’t something to talk about over this extended Holiday weekend.

Are you kidding me? This Industry?

While the jury may be out if some made Santa’s “Naughty” or “Nice” list, after what I’ve been reading the last several months, it’s time to bring this “Naughty” Agency to the forefront after a year long hiatus.

Back in October 2007 this blog gained considerable notoriety after tackling the issue head on concerning Royal Caribbean who terminated its relationship with no more than four Agencies. Two of those agencies came to light very quickly and the industry outrage on the internet concerning “Card Mills” came to a head.

Although it’s been documented that Royal Caribbean did in fact terminate four Agencies, Lisa Bauer, VP of Sales with Royal Caribbean at the time, skirted the direct questions asked by Travel Weekly concerning just who these Agencies were. To this day, there has been nothing to verify, although there has been plenty of speculation, any more than two Agencies. That being of course YTB and the other being Joystar.

Other than YTB, I can’t think of another Agency that has been the target of more controversy than Joystar. If you look at the founders history, you’ll get a better understanding to just why, and I did document his exploits with the first Travel MLM (TravelMax) back in the mid 1990’s. It looks as if both Bill Alverson’s and Joystar’s issues have not subsided, but in fact increased a year later.

While you found nothing concerning any new issues on this blog, there has been plenty to write about concerning Joystar a year after being terminated by Royal Caribbean. In addition, no less than three headline news stories broke back in October of 2008 concerning the Host Agency. One, October 9^th, reported that Joystar failed to pay commissions owed to its independent contractors along with laying off 14% of its staff. Later in the month, on October 23^rd, it was reported the CLIA revoked Joystar’s Membership for not renewing its Seller Of Travel License with California. (Although it appears that SOT’s have been made current as well as its association with CLIA.) The very next day, October 24^th, it was reported that InterContinental Hotels Group filed a federal lawsuit against Joystar for claiming more than $163,000 in improper commissions.

And some think YTB has problems?

Actually, that’s what a small group would like you to believe as they obsess over anything they can drum up to cast fear and doubt because they’re convinced the YTB “model” is flawed…doomed to collapse. (Yet the “model” started to take shape over a century ago, and still standing tall.) Part of drumming up anything these poor folks can think of is this notion that after more than a year of inactivity, suppliers will again take up the cause of these Agents and Associations and start terminating relationships with Agencies critics simply don’t agree with moving into 2009.

One of the favorite ploys of critics is not implicating YTB directly, but word posts and threads in a way that gives them an out if egg is then thrown back in their face. Naughty for sure after reading comments, as there appears to be no question just who they hope the Agency is. Just one of the dozens of posts I sent to Santa this year for the “Naughty List”. As they wait to see if the rumor is true with gleeful anticipation, Santa more than likely coaled the entire lot of them for lack of good cheer.

I never like this type of speculation and rumor. It’s far too easy for hearsay like this to come back and bite you when documentation squashes the rumor you’re attempting to spread. Especially when you find out that the rumor started in an attempt to point the finger at one host, was initially about an entirely different host.

It appears the glass slipper that some are attempting to slip on YTB belongs to Joystar.

Agents are using the Joystar community board to voice their complaints. One posting dated Dec. 17 claimed Carnival Cruise Lines was prepared to cease doing business with Joystar if the agency did not make good to agents. When queried about the posting, Carnival declined to comment.

To be fair, there is nothing to substantiate ANY rumor that Carnival or any other supplier for that matter will be terminating anyone. Instead, I would look at the last year and ask just how many suppliers terminated its relationship with any Agency in 2008.

Of course that answer is Zip…Zilch…Nada…not one.

Yet there are some who still want to hang onto this small glimmer of hope that suppliers might come around. If the rumor is true about Carnival terminating its relationship with Joystar, can you blame them? (That would be “No”.) It’s been documented that Carnival believes these Agents, no matter what host they’re associated with are the life blood of their sales force.

But how much would you want to wager, that if Carnival does terminate Joystar because its failed to pay the commissions owed its Agents, the speculation will be that YTB is next in line? It’s what some will do I’m sure in order to restore this whole fiasco about suppliers “getting it” to surface yet one more time. I know that sounds irrational, but you have to understand the anger and resentment that creates such illogical thinking. Just accept that this is another small thread critics reach for in their attempt to pin someone else’s misfortune to YTB.

With the news out Tuesday about Joystar being down to just 5 employees and the thousands of dollars in commissions owed its Agents, I have to wonder if Peter Stilphen, (a pompous and overzealous Joystar critic who’s been plastering both Bill Alverson and Joystar for years) will be having a Merry Christmas this year?

I don’t know if there will be anyone really posting about this over the Holiday’s or into next week for that matter. I guess I’ll have to check and update you when I get back first of next week.

In the meantime, I’d like to enjoy my time with family and finalize some goals I have moving into 2009 while I have some time away from the internet and all it’s trappings.

It will be interesting to see what 2009 will bring, and while there are some who claim to know what’s going to happen, take some time to do what a couple of my favorite mentors have taught me over the years.

“Don’t believe a word you hear, unless you can verify it on your own to be true.”

Which I suppose is one of the reasons why people like this blog so much. Instead of spreading rumors and hearsay about what they’ve heard about or read about somewhere else, without a single shred of documentation to back it up, they come here for documentation and truth.

That’s why I’m on Santa’s “Nice List”.

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First of all, I’ve got to tell you…I LOVE the internet. I love the way information flows on this puppy. Technology has made it available for anyone to access just about any information and documentation they could possibly desire in this day and age. (Thus the term “Information Superhighway”?) Based on information we all have access too, we could acquire PhD’s in just about any field of study we choose. It’s all there, you just have to find it.

I read a book last year from Author T. Harv Ecker, “Secrets of The Millionaire Mind” and I also listen to a syndicated talk show host here in Atlanta named Neal Boortz. I’m a firm believer that if you want to be successful, you listen to people who are more successful than you are and do what they do. Both of these successful individuals have told me this:

“Don’t believe a word I say, unless you can verify it to be true on your own.”

If you’re like me, your scratching your head after reading the “In The Hot Seat” Interview with Lisa Bauer, Senior V.P. of Sales with Royal Caribbean International stating that “The Letter” terminating “Card Mills” was ONLY sent to THREE Travel Agencies. In addition, she never names the three agencies.

Secondly, we find another report with Joystar responding to RCCL dropping them, a bona fide Host Agency, hardly the “MLM” or “Card Mill” everyone is talking about in all the doom and gloom circling around the internet concerning the death of Travel MLM’s.

No, something just isn’t right about how all this is unfolding. Logically, it doesn’t make sense to me. If you’re trying to cut the legs out of these “Card Mills” by only using one cruise line, three Agencies, and one of them isn’t even a “Card Mill”, that’s hardly the “Shock and Awe” I would expect. Again, something I read about in “Secrets of The Millionaire Mind” was that we need to take “massive action”, not some hodge-podge trickle like this.

What was most disconcerting to me was the way Royal Caribbean handled the situation with Bill Alverson, chairman and CEO of Travelstar, Joystar’s parent company. In the article it states:

“It took about three minutes for us to learn that RCI had absolutely zero intention to listen to our side of the story or to ask questions we could answer to clear up the matter,” Alverson said. “When Mr. Fishkin [President] asked what led Royal Caribbean to this decision, we were told they did not have any particular concern they could identify, that we have never done anything to harm their brands, or hurt them financially, but they were terminating the relationship anyway….When we asked for clarification, we were told by [Lisa Bauer] that she has decided to ‘broaden the definition of what a card mill is’ and considers Joystar and ourEnterprise members to be one….”

When this “Card Mill” fiasco first broke on October 10th, with news that the ARTA applauds RCI’s policy to remove sales relationships from MLMs and Card Mills, I boldly stated that YTB’s relationship had been strengthened the week before with news that the home office would handle all the Group Bookings for RCI. In the report listed above Bill Alverson also stated:

“I tipped my hat to Royal Caribbean management as I read their email announcing they were sending termination letters to travel industry “card-mills,’” he wrote. “After all, it was about time suppliers took a stand on behalf of real travel agents.”

Like YTB, their relationship had also appeared to be strengthened based on a PowerPoint Presentation given by Royal Caribbean’s management to Bill Alverson less than 60 days prior.

So, why the sudden change in heart by Royal Caribbean by not one but now two Agencies who are producing a combined $23 Million in revenue for Royal Caribbean? (Documented sources and reports of $13 Million by YTB, and $10 Million by Joystar.)

About the only concrete information I could gather as to why RCI would terminate Joystar was based on their Enterprise program. Knowing what the Enterprise business model with Joystar employs, I will tell you that it does allow for Sub Agents. Kind of like a mini-Host within a Host Agency in which the Parent Host allows someone to create a Sub-Host for others to help sell travel within this Mini-host. Sub Agents make the majority of the Travel Commissions while the Sub-Host takes a cut. (For those of us in YTB, it’s very similar to a Power Team Leader making a 10% override on all Travel Commission produced within your own Power Team.) The Enterprise business model however, only goes one level deep to the Sub-Agent, unlike “Multi-Level” in Network Marketing.

While Affiliations and Organizations are protesting the use of “recruiting”, some actually make it a requirement as a member of their Organization that they have a minimum number of these “Independent Contractors” in order to even be considered to be a Host Agency. An Organization called The Professional Association of Travel Hosts (PATH) for example require a minimum of 25 Independent Contractors in order to even join their particular organization.

No, I’m sorry, but there has GOT to be something MORE going on here and enquiring minds like mine want to know! (Thanks for letting me steal that comment by the way!)

I needed a couple more pieces to this puzzle in order to complete the picture that was forming in my head, and at this point, probably like yours, it’s was very clouded and murky and there were more questions than answers. I told you I knew just enough to be dangerous about Joystar. There was something else about this company I was missing. So I did some more digging.

Apparently, at one time Bill Alverson was the CEO of a Travel MLM called TravelMax in the mid-1990’s which is now defunct and from what I understand one of the first MLM’s in the Travel Industry to operate. While researching, I also found that there certainly isn’t any love lost between our “Star Villain” in this story and Bill Alverson. There is a considerable animosity between these two. While reading Bill’s Blog to the field, I found this post, which I agree, reflects A FEW of these “Professionals” out there who are crying about all the business being taken away by “Card Mills”. (However this entry is clearly directed at one particular person, our “Star Villian”.)

ALL RIGHT ALREADY! I’ll cut the “Star Villain” charade and let you know who I’m talking about here. It’s someone I’ve mention here a couple days ago; Peter Stilphen, who much has been written about from the CEO Bill Alverson, and he even created his own web site dedicated to Peter. So yes, there’s no love lost. (Sorry Mr. Alverson, it IS out there.)

But how does this connect with Royal Caribbean?

I might be the ONLY YTB RTA that’s registered with CruisingPower.com, (according to Lisa Bauer), but I didto find this answer. Along with “The Letter” there is an FAQ section, (also found via Google without access to RCI.) which for those of us who are caught up in this fiasco NEED TO READ so you know what’s going on. In the FAQ it mentions that Royal Caribbean has joined the same organization mentioned above called PATH, The Professional Association of Travel Hosts. access Royal Caribbean’s “Agent Only Area”,

I have been reading about this organization from various publications, Blogs, and message boards with some good, and not so good reviews. In particular, and most recently (8/27/07) while reading Bill Alverson’s Blog he states at the very bottom of his post directed specifically at PATH:

“Stay tuned for information on ill-conceived trade associations and the Antitrust violations including price fixing, unfair competition, restraint of trade and other potential criminal charges all association members may face because of the potential criminal activities of a few very bad eggs.”

To be completely honest, I know nothing about all these claims, and I’m simply not going there. (Right now) But it did pose the question, “Just who is this group called PATH?” So I start digging around on their web site.

Imagine my surprise when I take a look at just who is not only on The Board Of Directors but standing President?!

None other than Peter Stilphen.

I don’t know about you, and I’m no lawyer, but doesn’t this whole “Royal Mess” start looking like “Royal Scandal” and the start of unfair competition and restraint of trade to you?

Before you come to this conclusion however, take some advice from a couple of mentors of mine:

“Don’t believe a word I say, unless you can verify it on your own!”

PS - If you're involved with YTB, sign up for our FREE Newsletter. As a Website Owner or Website Seller, we'll keep you up to date with all the latest news, acquisitions, and developments with YTB.

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