Archive for the ‘Kool-Aid’ Category

K.I.S.S.

Monday, February 16th, 2009
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When NASA began the launch of astronauts into space, they found out that the pens would not work at zero gravity (ink will not flow down to the writing surface). To solve this problem, it took them one decade and $12 million. They developed a pen that worked at zero gravity, upside down, underwater, in practically any surface including crystal and in a temperature range from below freezing to over 300 degrees C.

kiss1What did the Russians do to solve the same problem?

They used a pencil.

One of the most memorable case studies on Japanese management was the case of the empty soapbox, which happened in one of Japan ‘s biggest cosmetics companies. The company received a complaint that a consumer had bought a soapbox that was empty. Immediately the authorities isolated the problem to the assembly line, which transported all the packaged boxes of soap to the delivery department. For some reason, one soapbox went through the assembly line empty. Management asked its engineers to solve the problem.

Engineers worked hard to devise an X-ray machine with high-resolution monitors manned by two people to watch all the soapboxes that passed through the line to make sure they were not empty. No doubt, they worked hard and they worked fast but they spent an exorbitant amount tf money to do so.

But when a rank-and-file employee in a small company was posed with the same problem, he didn’t use X-rays and cameras, but instead bought a strong industrial electric fan and pointed it at the assembly line. He switched the fan on, and as each soapbox passed the fan, it simply blew the empty boxes out of the line.

When I sobered up some 20 years ago everyone, including myself at the time spent a considerable amount of time discussing and contemplating what it would take to become one of those “old timers” in AA. When I was fresh out of rehab I joined a Home Group up in Pittsburgh that had one of those “old timers” in it. His name was Sam P. and at the time, he had been sober for some 25 years. Sam was great, and everyone looked up to him and boy did he have some stories. (We all did.) We hung on his every word and constantly asked what it would take for us to become an old timer like he was.

His response was classic, and I can still hear his high pitched sarcastic voice all these years later when he would reply with:

“Don’t pick up, and don’t die!”

I guess after 20 years of not picking up, and the fact that I’m still here is proof that his very simple method works. There isn’t a day the goes by that I don’t think about being a recovering alcoholic, but I can’t remember the last time I craved a drink or a drug. It’s just not an option any longer.

Now I drink Kool-Aid, and frankly, it’s a much better alternative than the poison I use to consume. It clouded my judgment and made me paranoid. I would also obsess over the smallest of things, always focused on the problem, never the solution.

I also learned about K.I.S.S. in AA. If you don’t know, K.I.S.S. stands for Keep It Simple Stupid. Today I can spot within seconds how some can make things much harder than they need to be, and have a tendency to complicate things. I guess they need to prove either to themselves or someone else that they’re smarter than everyone else. Sometimes it can be extremely funny, but more times than not, it’s rather sad to watch, knowing there is a solution out there, and it’s much simpler than most could conceive.

I’m constantly told by others how to fix the issues with YTB. Oddly enough, most of the criticism and comments come from people who don’t have any practical experience on the MLM side of our business that can offer anything worth while. Yet their focus, attention, and problems are always on the MLM side of our business. It’s a huge distraction for most and emotions can run very high causing some really nasty conversations that honestly don’t do anything more than make one side feel better about themselves while they attempt to shame the other side into submission.

That being said, the answer for YTB lies on the non MLM side of our business, the one you actually pay for, the one that’s set up like any other host agencies out there. (Nexion comes to mind.)

The answer is simple, sell travel.

Mind you, selling travel will not put to rest and resolve anything for some. Some I’m afraid might never come to grips that YTB is a part of the travel industry and will never accept any of it’s members as peers. Honestly, I don’t know why those opinions really matter, being as miserable as they are. (Who wants to hang with attitudes like that??) But for those who can look at the facts, for those who don’t need to make excuses, or try to spin and justify things in order to simply belittle and malign, most will look at Travel Weekly, notice what Carnival is doing, and pick up how YTB lookes and acts like a bonified Host.

Keep it simple. Focus on the main goal from our Founders, and that’s to be the number one Travel Agency in the world. Oddly enough, you need to sell travel in order to do that. (Who knew??) By doing so, it will resolve the problems and issues of those who matter, and for the ones who don’t matter…well there’s really not much we can do now is there? So why worry about it?

I know of some who are still carrying around resentment and anger over what happened to them some 20 years ago when AL Williams took over the Insurance Industry. Can you imagine? Who wants to live like that? I sure don’t, and if you think you can learn something from anyone who does, you’re sadly mistaken.

Let it go already, and Keep It Simple Stupid.

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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Doug & Ronda Bauknight
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
Book Your Travel & Vacations With


TSO #588629
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Don’t Look Now…

Friday, December 12th, 2008
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I’ve been told that the travel industry is just swimming along famously. No problems, no concerns, (other than those pesky MLM’s of course) and everything is just drifting along quite well. I was wondering what planet some of these Travel Agents live on. If you’d like to participate and only focus on one company, one issue, one glass of Kook-Aid you too might come to the conclusion that our MLM model is the ONLY model that has some of issues listed below.

Typically I see single posts or threads about MLM topics so folks can rant and rave about how horrid MLM is. Problem is, as I was reading through some of the trades this week, there were so many similar topics I’ve seen about MLM, it might take weeks to write single posts about each one separately. Don’t really want to spend the time or energy writing about problems, as I happen to be a solutions kind of guy.

dont-look-hereI know it’s a long shot for some, but wanted to see if we could take the blinders off to look outside of MLM and Travel and see what’s going on with the entire industry. Blinders can be great, but sometimes it’s a good idea to look around if nothing more for a status check to gauge how well, or how poor your single perspective might actually be.

Since I don’t want to boar readers, we’ll just give you the Readers Digest condensed version of each of the following topics, and as usual, you’ll find the third party links to actually documentation instead of trying to dig it up yourselves or just taking my word for it. (Remember, don’t believe a word you hear, unless you can verify it on your own to be true.)

First we have Frank Serio, a former owner and operator of Travel Concepts in Rhode Island who was sentenced in federal court to 15 months for wire fraud and defrauding airlines and Amtrak out of $571,000. According to Travel Weekly, he bought tickets at steep discounts and then obtained refunds based on full fares.

Serio had purchased tickets using other names and fictitious names and used phony voucher numbers or numbers reserved for airline/train employees and their relatives.  He also reported the sales through ARC and paid with a business or personal credit card.

Soon after each purchase, Serio requested full-price refunds through ARC, said the U.S. Attorney’s Office. In this way, he extracted $571,000 in refunds from American Airlines, British Airways, Continental, Delta, Royal Jordanian, United, US Airways and Amtrak.

The FBI investigated the case and ARC cooperated. Frank reports to prison on Jan. 5.

I’ve seen the word bankruptcy used all too often, for years in fact. Advantage Rent A Car has filed a voluntary petition with the U.S. Bankruptcy Court seeking Chapter 11 bankruptcy protection. 440 people nationwide received layoff notifications this past Monday. Advantage will explore alternatives during the company’s reorganization, including the possibility of a sale or merger.

In addition to seeking Chapter 11, Advantage has decided to consolidate its network of car-rental locations nationwide — keeping open only its most profitable store locations.

“The current economic environment has dramatically affected the travel industry,” said Jon Austin, a spokesman for Advantage. “We have been hit with a simultaneous drop in leisure travel, with greatly increased costs and frozen credit markets. These factors are affecting many industries and companies and we are not immune from these forces. These painful steps are a recognition of that reality.”

Advantage will employ only 460 people at the remaining locations and its corporate offices in San Antonio.

Some might consider Advantage a small player in the market, and simply can’t compete with some of the big boys in the market. Not necessarily the case, as news of Budget Rent A Car also announced they will be closing it’s contact center in Wichita Falls, Texas early first quarter 2009. (Some 1,400 jobs will be lost overall at Budget due to their cost cutting measures.)

Why one jet is raising a considerable amount of fuss, United has sold 15 Boeing 757s to East Shore Aircraft to raise $150 million in capital. They appear to agree that selling off some assets is a good way to to raise some much needed cash. United has raised more than $250 million of the $300 million by selling off assets in the fourth quarter of 2008.

I also realized that the ASTA is the be all and end all for some. I was shocked to find out that this association hasn’t cleared a profit since 2002. The ASTA took a loss of about $800,000 in 2007 and will take an additional hit of between $400,000 and $500,000 this year. It’s also reported that it’s spent some $2.5 million of it’s reserves to balance it’s budget in just two years time.

And while some can’t see paradigm shift going on in this industry right now…

Maloney said ASTA was “locked into the old World Travel Congress model” through 2005, at a time of “the collapse of the agency system” through disintermediation, and hence a declining pool of agencies from which to recruit members. This occurred, he said, in tandem with the rise of consortia and the conviction of many agencies that, if they had to choose, consortia were more important to the bottom line.

The news also brought to light that it’s lost support from the supplier end, focusing more on the Agencies themselves. Possibly because the ASTA appears to me at least to be completely out of touch and out of sync.

This last article about Royal Caribbean lending a hand to Agents in these difficult times, I couldn’t help but think of my good freind Candi May who was given the same type of lip service when she was struggling, and was told by her peers that “business couldn’t be better”.

I’ve always liked Vicki and it appears that most of the traditionalists respect her as well. But I wonder if her quote about things not being so rosey will wake some of the Agents I’ve seen who are in such denial about the state of thier business right now.
“This economic environment is unprecedented, and our travel agent partners need our unprecedented support,” said Vicki Freed, senior vice president of sales for Royal Caribbean International, in a statement. “Like everyone, they are feeling the pain, and we need to help them through this.”

The only pain some appear to have are those pesky MLM’s who are to blame for all thier troubles. Instead of being grateful for what Royal Caribbean has done for them, on many levels I might ad, my guess is that the focus will continue to be how MLM is a bad mix. Honestly, from what I’ve seen, the obsession, anger, and resentment is only getting worse, and hit an all time low yesterday. (Too embarassing to elaborate, so don’t even ask.)

With all the chatter and focus on how crooked and poorly managed MLM is, it appears that some might need to take the blinders off and look around. (Ya think?)

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.

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
Book Your Travel & Vacations With


TSO #588629
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Don’t Pick Up…and Don’t Die!

Monday, February 4th, 2008
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I started a huge task weeks ago when I promised John Frenaye that I would get his questions answered. ALL his questions. Over the next couple weeks due to the length of this list, I’m going to focus on each of these questions one at a time. My goal here is not only to answer the question, but also point out why this question is even asked in the first place.

This will also be an excellent opportunity and tool for anyone with additional comments about each of the specific questions to get better clarification. Use the comments section to discuss each of the questions in greater detail. I remind you that I learned how to accomplish such a huge task from Brian Tracy and his courses, which teach that you focus on the each task one at a time, focus on the solution, break it down into manageable chunks, and before you know it, you’ve achieved your goal.

It should be a really fun debate, and for those of you in YTB, take this information and documentation and use it. Here are the questions we have gone over thus far.
Question #1 – Why a compensation plan takes 12 pages to define?

Question #2 – How YTB arrived at $226 Million in travel sold for 2006. (Still waiting.)

Question #3 – Why so little of the “training” at the annual convention was for travel. (OK, YTB only believes in training at other meetings. We can let this one go.)

Question #4 – How nearly 150,000 RTAs can pay in the course of 9 months $79 million dollars in website sales, fees, and training; and receive $9.3 million in return. (This is huge…anyone?)

Question #5 – And for those that say I don’t get the math, I did not learn how nearly 150,000 people paid in $79 million dollars and only got $64 million in return. (Hello? Anyone? Bueller? Bueller?)

I felt it was important to put these two questions together simply to prove that “numbers” can used to mean just about anything you want. To John’s credit, at least he recognizes that there are Marketing Commissions that are paid out to the field, which most of the Anti-MLM crowd does not. Most everyone that I come across simply point to the $9.3 in travel commissions and totally ignores amounts of $55.3 Million that were paid to the field for building our organization.

First, I want to address this myth that 150,000 RTA’s produced $9.3 in Travel Commissions. I’ve been over and over how this works, time and time again pointing out that Travel Commissions are not reported to the SEC until YTB is paid and has money in hand. I booked a small group in August of 2007 to sail in August of 2008. Until final payment is made, some 60 days prior to sailing, YTB does not realize commission in hand. Therefore a booking made in Q3 of 2007 will not show up on the SEC filings until Q3 of 2008.
John’s a smart guy, and certainly knows this, but the question keeps popping up to see who’s going to simply spit out “You don’t understand.” The reality of John’s years of experience in the Travel Industry however means that he does understand, but simply wants to put the question out there for those who truly don’t understand, and won’t take the time to investigate themselves how Travel Commission have always been paid in the industry.
Done.
Now on to this $55.3 Million that we pay the field for building the business. To be honest what I’m somewhat surprised with, is how short sighted John, or for that matter just about everyone who brings up this variance is. I guess it’s to be expected in this day and age of instant gratification and this myth about Network Marketing being a “Get Rich Quick Scheme”. If you’re not making the big bucks within your first few months, you’ve been scammed and John, among others are perpetuating that myth.
Can you keep a secret?
What if I told you that the average person wasn’t going to “get rich quick” in this business? What if I told you that the SEC financial numbers actually prove that if you treat this like a traditional business model, and given just a slightly more long term approach, you and everyone else in your organization will be just fine. Don’t think so? Trust me Bueller, this is not a day you want to skip class because it could give you an opportunity of owning your own Ferrari rather than having to borrow your father’s. (Or in John’s case a Cocaine White Bentley.)
So how much more time is slightly? That could vary yet for the purpose of this post and example we’re going to use a time frame of one year, simply because these are the numbers we have access to and what everyone but a few seem to miss when looking at the numbers.
First we need to look at the numbers everyone is talking about, and for this particular exercise we are looking at the 9 months ending September 30, 2007. As you can see, short term, 9 months, it looks pretty bleak. Clearly, not everyone who paying all this money is getting all of their initial investment back within the same period of time. Most who oppose Network Marketing want you to stop right there. They don’t want you looking at ALL the numbers because if you do, it looks quite promising.
Take a look at the column to the right, the one that shows 2006 numbers, and the percentage of growth YTB has had over the same period the year before. Notice the increases of 207%, 172%, 251% over the year prior for “income” and increases of 183% being paid out to the field, also known as “expenses” show an entirely different story.
Here’s another little secret I’m going to share with you…all you have to do is get your foot in the door and play the game to take advantage of these percentages. Those that got in the game
and worked this like a business in 2006 where paid off the efforts of those that got into the game in 2007. Some took advantage of this, while others got in but didn’t play the game or didn’t want to put forth the time and effort to profit off of some $55.3 Million from YourTravelBiz and $9.3 Million from YTB Travel Network. In other words, $64 Million went to somebody in the company or a percentage of the 39,613 who joined in 2006 capitalized on the 105,756 who came on board with YTB in the first nine months of 2007.
Somebody put these people in their YTB business and there is nothing that says that it can’t be you.
What John and others are counting on is that you don’t look past the initial nine month plan, spiting out that “the numbers don’t lie”. And to a degree he’s right. If you make an average of 1 sale a month to start, that’s $50 per month. Six months later, you’ve only made $300 but invested $900. (Now expand that to investing $69 Million and only receiving $55 Million in return.) Mathematically John’s right, but the problem is he stops right there. (And so do people in YTB, but we’ll expand on that on later question and post.)
Just like the years of losses that YTB had for what seemed like ages, people got wrapped up in what appeared to be the bottom line, and didn’t see the big picture. Today, YTB is profitable and making money, and so can you if you can handle sticking with the game long enough to get past the initial investment period. Some do it very quickly, but the vast majority that have joined my organization have been slower in becoming comfortable and confident enough about YTB that you are really doing the average person a favor for signing them up in this business. (This blog is riddled with reasons why, take a look around.)
Today, YTB is profitable, and you can be profitable in this business too, if you give it the same dedication and time that other successful people before you have given it.
I’ve shared here before that I’m a Recovering Alcoholic. Back when I first sobered up in 1989 I use to go to a meeting were a guy had some 25 years of sobriety. Everyone would ask “Sam” how in the world he became what we referred to as an “Old Timer”. Sam would get all worked up over this question, and his voice would go up an octave or two and he would respond with “Don’t pick up…and don’t die!”
The same principle applies to Network Marketing folks. Don’t pick up this glass of Kool-aid that they are pouring for you. You have to be consistent, you have to work at it, be consistent, and you have to give it time before you really see any fruits of your labor to become one of the “Old Timers” in Network Marketing. If John or anyone else in YTB would keep going at the same pace as the first 6 months, you’ve made $1600 without any further investment. (Please refer to the 12 Page Compensation package to see how.)
Now before all of you Anti-MLM’ers start pouring all this “it won’t last”, “YTB will run out of recruits” or that “the pyramid will eventually collapse” Kool-aid over my head, somebody needs to give me just one example of a Network Marketing Company that’s collapsed because it’s run out of recruits. I hear this bunk all the time, but nobody seems to come to my aid when I ask this question. (Funny how that works.) In truth, Network Marketing (or any company for that matter) collapses because of poor management or bad business practices; it’s never collapsed because it’s run out of people to sell too.
It’s always been a source of amusement for me when people bring up a Government Agency such as the SEC who perpetuate this myth, and they should know…the origins of a pyramid scheme was actually traced back to the French Government in the early eighteenth century. I wonder if the Government can explain away the following examples.
122 years ago, (1886) David McConnel started the California Perfume Company, based out of New York. In 1906 he had 10,000 sales representatives selling 117 different products. The California Perfume Company changed its name to Avon Products in 1939. How many people do you know that sell Avon today? At what point do you think it’s going to collapse because Avon will run out of people? (I’ll even let you guess at when it’s going to run out of just Women!)
102 years ago (1906) Alfred C. Fuller was another former peddler who greatly influenced future sales organizations. Fuller started the Fuller Brush Company and hired 270 dealers throughout the U.S. to follow his business plan on commission only. By 1919, the Fuller Brush Company had made $1 million in sales; by 1960, $109 million. In 1992, the door-to-door sales method was replaced with an innovative new direct marketing plan called Fullshare, with a chance to generate unlimited incomes by sharing those products with others and developing their own marketing networks.
74 years ago (1934) Carl Rehnborg started the California Vitamin Corporation selling what today are known as vitamin supplements. In 1939 the company changed its name to Nutrilite Products Company, Inc. (Today owned by Amway/Quixtar)
52 years ago (1956) Dr. Forrest Shaklee developed a method of extracting minerals from vegetables and used MLM to distribute his products. 44 years ago (1963) Mary Kay Ash creates Mary Kay Cosmetics. By 1996, company sales were in excess of $2 billion dollars.
(A special thank going out to Tim Sales & First Class MLM for this information.)
None of these companies have run out of people, and yet they all seem to be competing for the same people that YTB is somehow going to run out of. While the new kid on the block, YTB already has more than 44 people making between $250,000 and $3,400,000 in income for 2007, and this week we move into Canada. Those that want to bring up this myth about YTB running out of people any time soon, I have two words…
“Save it.”
When and if the time ever comes that YTB is down to its last person on earth that hasn’t joined YTB, maybe you should be concerned because I’ve already got dibs on John Frenaye. Until that time comes however, YTB have some 303,000,000 recruits to go after first and that’s just here in the US.
I wonder if Sam would want to join YTB? I’ll have to look him up after all these years because I can just hear him now when someone asks the question about how to make it in YTB.
“Don’t pick up…and don’t die!”

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br />Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker

Phone: 678.458.5812


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