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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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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Over the last few days, I’ve had some very productive dialog with John Frenaye (at least for me) and I have a much better understanding of the complaints and concerns our group of Retail Travel Agents are having. I have to hand it to John, he’s at least looking closer at our model. Part of problem I see with skeptics and cynics is that there are a lot of pre-conceived notions about what Network Marketing is. While John has certainly not changed his position towards Network Marketing, he has verified that maybe terminating vendor relationships may not be the best alternative.

We shall see.

You like me may have noticed that no other supplier has come up to bat for these Retail Agents. From all the talk and news a few weeks ago you would have thought the sky was falling with what was circling around the internet. It’s been three weeks now and next Saturday will be a month since “The Letter” was sent out to just 3 Agencies terminating their vendor agreement without cause or reason. What’s even more intriguing to me at this point in time is that we only know the location of two of the three letters. The third to this date is still shrouded in secrecy. Seems to be a very smart move on the part of our third recipient at this point.

About the only news of interest to anyone this week concerning any news about Royal Caribbean’s decision is a Travel Weekly article naming PATH and Peter Stilphen as partners in this attempt to separate themselves from Travel MLM’s. For those of use who have been following this story with me, that’s old news however.

While we keep on waiting for the other shoe to drop, we just keep waiting. Why?

A while ago I found an excellent article from Arnie Weissmann who not only understands our business model, but brought up a number of key points. I’ve been meaning to compliment Arnie for his work, and actually did personally, but have not really given his piece the credit it deserves here.

The timing of the Royal Caribbean termination announcement was directly after YTB’s Funshine Trade Show in Orlando, Florida. I’ve personally attended these Trade Shows and find them to be an excellent source to not only meet our suppliers personally, but become better educated in who they are, what they offer, and how to promote their particular product or service. Like me, Arnie picked up on how hungry everyone is for knowledge of our industry and how receptive our suppliers are in working with us. The fact of the matter is, YTB and other models like us do a considerable amount of business with them. A little here, and a little there certainly adds up.

Just this morning I found this gem from Vicki Freed, and in this published article “Freed said she attended YTB’s conference in early October and saw more than 1,000 attendees in each educational forum. “The desire to learn about the travel business was evident even after I spoke to the general session (over 6,000 attendees) when the CLIA instructor followed me on stage and taught niche marketing,” Freed wrote. “No one left the room, and in fact, the overflow ballroom with big screens set up was packed as well. These folks paid for the conference, and there were no free meals or give-aways.”

It is “rumored” that this CLIA training in Orlando with YTB was the largest single group ever to be trained at one time by this Association.

And while CLIA (Cruise Lines International Association) was quoted in Modern Agent this morning, that its Oct. 17 World’s Largest Cruise Night (WLCN) is expected to generate 17,852 bookings, which translate into an estimated $22.3 million in sales and more than $3 million in travel agency commissions it makes one wonder what a single company like YTB could do in one day.

The entire industry generated 17,852 bookings in one day.

Why only 17,852 for the entire industry? Because these Retail Agents are too busy slamming Vicki on her Blog instead of focusing on making money. I called out our own agents here in my last post for being unprofessional. I feel it’s only fair after reading the threats and the down right harassment towards Vicki that someone needs to tell these Retailers.

“KNOCK IT OFF!”

As an entrepreneur, I’ve always been one who looks at solutions, not problems. Vicki clearly gave these agents an opportunity to make money with her, but chose instead to focus on the Travel MLM problem.

Good Grief.

While the tide certainly hasn’t turned by any stretch at this point, it certainly looks like it’s lost any momentum it had a few weeks ago.

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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!”

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