Archive for the ‘Pyramid Scheme’ Category

If You Don’t Like The Heat…

Monday, March 8th, 2010
46
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You best stay out of the kitchen.

Being one of the more visible YTB blogs on the internet, I have my share of readership. Most readers are supporters and enjoy my insight and information about our company.

I also have my share of detractors. Some I would safely say detest my existence for one reason or another. If you’re in the public eye, you can’t be everything to everybody and there will always be those who don’t agree with you. What makes my sort of activity and exposure dangerous is when emotions enter into the mix.

Emotions have too many variables. You can’t expect emotions to remain constant over time or from one person to another. Each individual perceives and reacts to each situation differently. Logic and facts however always have a base or a core that remain constant. One of the things we’re finding through our journey together with YTB is that the facts of our business model are able to withstand the misconception, half-truths, and lies that we see from those who use perceptions and opinions as their core defense.

As expected, John Frenaye took exception to my article on Friday and boldly laid claim that I’m the one who “spins”. He added that his blog was more “legitimate” and his was the only viable option where people had to ability to “judge for themselves”.

He’s also a tad upset at what he’s deemed a “personal attack” and eventually, “my lies” will catch up with me.

My – my – my. How easy it is to dish it out.

It’s interesting to me how quickly this group pulls the “personal attack” card when challenged. I’m not sure if they think they’re too pure, or we’re to take pity and look the other way when their blatant misrepresentations about our people, our Founders and our company are created by their hands. I hate to break it to this group – but they leave some enormous “stinkers” out there on the web. Their activities have left some laughing, and others appalled. We DO know right from wrong, ethical from unethical, what is morally right and what’s morally bankrupt.

To illustrate how bold and brazen John has become over the years, we’ll reference one of the most legitimate and honorable sources I know – our court system. What was forwarded to me last week clearly illustrates why our Home Office made the decision to turn down his requested interviews and why others have come to the conclusion that John can’t be trusted to “report” anything concerning YTB in an unbiased or accurate manor.

Case in point: This was written by John last week on his blog:

Of course, back in August of 2009, we reported on the story where Coach had a ramshackle home and was able to convince a church to make the repairs in return for a lease. But Coach reneged on the lease and got his home fixed for free.

I don’t know about you, but I wouldn’t call his post entitled “Once Upon a Time” an actual “report” but ironically – a “Fairy Tale”. If you strip away John’s “report” and look at the court documents which are linked in the word “TRUTH” it reveals John’s elaborate web of deception – not Coach’s.

Yes – John’s the one deceiving the flock – pouring Kool-Aid if you will. The “truth” shows that Coach and Chris “donated” the parcel in question to the church for a Minister and his family use as a parsonage. More troublesome; the word “lease” never even appears in the actual court documents, although conveniently inserted by John in his – “report”.

True, the home needed electrical upgrades to meet code, and a gas furnace needed to be converted to propane. There was never any lease however, and Coach and Chris never received a penny for their generous donation to the Church and its family. Consequently, the court concluded:

“the parcel here in issue and the house thereon qualified for exemption during all of the 1998-assessment year either because it was in the process of adaptation for exempt use or because it was actually used by the Church as a parsonage for Rev. Casey.”

I know I’m going out on a limb, but you be the judge here. Which do you find more “legitimate”? John’s “Once Upon A Time” fairy tale – or – documentation from “The State of Illinois“?

What’s so astounding to me, is the man doesn’t appear to understand how anyone could possibly question his “reporting” as wrong or even inappropriate. To question anything he says or does is challenged with a very coy rebuttal and continued claims that HE is the most fair and unbiased source concerning YTB in the land. According to John, he’s proven how Coach has a long history of deception and he’s proud that his flock agrees that Coach should be thrown in jail for doing what he did to this church.

And yes, that type of arrogance is frustrating – even for me.

We can’t forget another court ruling regarding YTB’s business model and claims of an elaborate pyramid scheme that wasn’t just dismissed but tossed out as “redundant, immaterial, impertinent, or scandalous matter“. Again we find John and others on the wrong end of an argument calling the absurd complaint “powerful”.

Here’s how the Honorable Judge Murphy described the complaint:

“The First Amended Consolidated Complaint, filed July 15, 2009, is an ungainly monster of 39 pages containing 133 paragraphs (many of which have subparagraphs) that likely does not pass muster under the familiar federal “notice pleading” standard.”

True to form, John “disagrees” with the court’s ruling, and makes no apologies for his position or opinions. John falls right in line with the type of hideous and outrageous accusations Counsel tried to pull in its second go around, after the first complaint was dismissed. Their answer to the problem – a bolder, more brazen attack.

So which do you find more legitimate? John’s statement, or Judge Murphy?

From John’s point of view, it’s YTB that is “crafty” and “sly”. The only reason why YTB is still around is due to changing our model or living on the very edge of the law. Regardless how much change or how close we “appear” to be, it’s still the right side of the law. YTB’s model has never required “payment for the opportunity to recruit others” from day one. You may not agree with that – you may not understand that – and you may never accept that. But because yours is only “opinion” and not “fact” – you do have to continue to deal with YTB.

Finally, John recently found out that the law is the law, and everyone (including him) must abide regardless of opinions or perceptions. The creation of a fake Zam Zuu fan page to mock and poke fun at our company violated ZamZuu’s trademark causing a confusing similarity. His defense – a space between “Zam” and “Zuu”. (And no, I’m not kidding.)

John, you don’t just stink – you absolutely reek of lies, deceit and a perception that the laws of this land simply don’t apply to you. It’s a double standard that I will not turn away from and I will not make any apologies for in calling you out. We all make mistakes (even me) but there comes a time when you have to stop blaming others or being a victim and take personal responsibility for your own actions.

You are in the public eye and there will be those who will disagree and oppose you. There will also be those who will hold you accountable for your actions. If you don’t like it, either toughen up or stop what you’re doing and go back into hiding.

As it stands right now – you have proven to me, our company, and several outsiders who have no beef one way or another with YTB that you should not be trusted due to your attitude and your actions documented above.

For every action, there is a reaction. So if you don’t like my reaction, stop acting the way you are!

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
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The Scarlet Letters

Wednesday, March 3rd, 2010
13
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I don’t know how many actually remember reading “The Scarlet Letter“, nor how many have actually read this classic Nathanial Hawthorne novel. It takes place in Boston in the seventeenth century. A woman named Hester was sentenced to wear a large Scarlett Letter on her breast after it was discovered that her child was conceived from having an adulterous affair. She was deemed a sinner, and was publicly displayed as such. As a result, the town would hurl insults to humiliate her for having sinned.

Hester was publicly shamed – socially isolated and alienated for her indiscretion.

Three centuries later, most of us would consider such a public display barbaric – or at the very least uncivilized. I still see plenty of examples, mostly from my kids experience in school with one child’s attempt to shame another in front of their peers. (Remember seeing the “Kick Me” signs on the back of the class nerd?) As adults, we develop a higher sense of self-worth and self confidence in our own abilities that such behavior is no longer necessary.

The act of shaming another person is an attempt to gain power over another. The desire is to alter and shape another’s behavior or belief. It’s a way to communicate who is the outcast and who are the elite. Who is down-and-out and who is one-up. It produces an immense sense of power and control for the person dishing out the insults – using the other as a punching bag – while deflating the self-esteem and self-worth of the person being shamed.

I’ve never bought into shaming another person as a form of control – it’s just not something that I believe is effective or worthwhile. My recovery from alcoholism 20 years ago enabled me to develop a higher standard of self-worth, self-esteem, and self-confidence. My recovery also changed my perspective when dealing with individuals who attempt to shame others.

It was during that time I found they were the ones who are weak and insecure – not the other way around.

Think about it – if your position and confidence resided where you felt secure there wouldn’t be a need to fill any type of void by stepping on someone else to prop yourself up. Likewise, there wouldn’t even be a need to respond because your own experience and beliefs override any outside attempts to change that belief.

You’d already be whole or complete.

Seeing random acts of humiliating and alienating has increased for me over the last few years. In part, because I’m involved in a very emotional industry which provides average people an opportunity to run a home based business. On the one side, these same average individuals see an opportunity to get themselves out from under the bottom of the pyramid known as traditional business. (Starting at the bottom and never finding a way to work their way up the ladder, or pyramid.) On the other side, you find those who have either failed themselves in a short stint with MLM, or have bought into all the myths and stereotypes they find from reading.

A simple observation will quickly form the conclusion that those who have the least experience on either side are by far the ones who are the loudest and most obnoxious. Why? They don’t have enough experience or documentation to fall back on to support their beliefs or convictions.

Look at Coach, Scott, and Kim. All three have been extremely successful in MLM and their experiences extend back to the early 1980’s with A.L. Williams. Attempting to insert any of the myths, rumors, or stereotypes about MLM into their belief system is like trying to tell YOU the sky is purple. The opposition can jump up and down – scream at the top of their lungs – provide example of others who also think the sky is purple but you’re not going to budge. All those years of looking up to the sky and seeing blue simply can’t be overwritten or changed.

Think that example is oversimplified or outrageous? Possibly – for you. But those of us who’ve been a part of this industry and work it the right way know exactly what I mean. It’s something you can’t explain – like how kids will change your life. You have to experience it to realize the importance or relevance.

I was talking with my father last week about all the egg tossing and mudslinging that I see others get so wrapped up in. He told me he sees it all around us, and is thankful that he’s somewhat isolated now with my younger brother on their farm up in Pittsburgh. While my father is now retired, he still writes and teaches to keep himself occupied during the winter months on the farm. He sent out a publication to his subscriber base yesterday (of which I am a part of) and this one paragraph struck a chord with me after our conversation last week.

I know that rancor and incivility has existed before in the history of this nation’s politics. But seldom if ever has it been in the ugly stalemate we now experience. Neither major party will allow the other party to press any part of its agenda. Senators who argue vociferously on the floor of congress no longer later sit down to lunch or dinner with their other-party colleagues. The scene is ugly and disappointing.

Ugly and disappointing is something our entire Country appears to be trapped in right now. Incivility certainly isn’t reserved for critics of YTB or MLM. It’s a trait that’s been learned and developed throughout the years that frankly, like my father, makes me sick to my stomach. How humans can treat other humans in this fashion is deplorable and unconscionable. For someone to demand respect or a voice by using these tactics goes beyond any boundaries I’ve ever known. It’s a big reason why I have the rules that I do on this blog.

I’ve spent years documenting about my experience and what I know to be true about YTB and MLM here on this blog. You don’t have to agree with it or even read it if it bothers you. But it does have boundaries for those who are incapable of being civil or rational. It’s simply not a trait I’ve been willing to tolerate since I started this blog – and I’m certainly not going to change that position now.

For the life of me, I can’t think of a single example of how insults or humiliation changed or resolved anything. All it did was heighten emotions, not logic. You’d think some would get that. But as we’ve seen – even the brightest, most talented, most promising of individuals fall woefully short of reaching any resolution because they’re just too wrapped up in their own egos.

We can only hope (and pray) that someday they might grow up to become confident, respectable adults.

You never know…it could happen.

In the meantime, just put these people aside and focus on the things you can control and find enjoyable. There’s no pleasure or knowledge in reading insults.

If I can do it, so can you, and you’ll never know how much better life can be until you actually let it all go.

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
Learn How To Become A Travel Agent

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If At First You Don’t Succeed…Punt?!

Friday, July 17th, 2009
13
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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.

punterDo 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.

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
Learn How To Become A Travel Agent

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The Easter Egg Hunt

Monday, April 13th, 2009
6
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A couple weeks ago, I got an e-mail from good friend Charlie Howe with a very funny mock ESPN Press Release that President Obama and Roger Gadel would be dividing Pittsburgh’s 6 Super Bowl Trophies to teams that were less fortunate. Namely, the Detroit Lions who went 0-16 this past season.

The Pittsburgh Steelers, who by virtue of hard work, excellent team play, stellar draft choices, responsible investing of free agents, careful hiring of coaches and excellent community service and commitment to their fans, has prospered greatly during the past 30 years and have won six Super Bowl Trophies. But President Barack Hussain Obama’s plan calls for the Pittsburgh Steelers to carry the larger burden of the NFL’s less successful teams. Obama went on to further proclaim, “In these difficult times we are all in this to work together. We must reclaim the NFL Championship Dream for every team, for every city and for every fan.”

easteregghuntWhile something like this sounds obsurd I began to realize a couple years ago that that’s exactly what we are teaching our children. One holiday tradition that I first noticed this was the Easter Holiday we just enjoyed yesterday. Before my children entered into grade school, they were enrolled in an academy which had an Easter egg hunt for the kids. I also noticed the same practice in our neighborhood egg hunt for the kids.

Parents would go out and hide the eggs based on a level of difficulty appropriate for the age before sending the kids out in a group to collect and find the eggs. Watching the event, you would see kids who were going all out in gathering up the eggs, while others seemed to wonder aimlessly around not really all that concerned with the activity at hand. At times two kids would race towards the same egg, but only one was able to put the egg in their basket.

After the event the kids would gather with their baskets. A few baskets would be overflowing with eggs, while others would have a paltry one or two eggs.

Not to worry, as the baskets were collected by adults the kids were whisked away to another activity while the adults divided all the eggs equally between the baskets, giving each child the exact same amount per basket. No matter how hard or little each individual child worked to collect the eggs, each was granted an amount deemed appropriate and fair.

For children, I really don’t have a problem with dividing up the eggs, until this equal division of property, money, or belongings becomes a right as an adult. I realized what an early age we teach our young this idea of taking from the “haves” to give the “have-nots”. This practice should be used with children as a lesson in sharing and giving of our resources. It becomes a problem however when it’s taken out of context and this “larger burden” is taught throughout our school years, trapping many as they grow up with this limiting belief into adulthood.

I’ve seen this type of limited thinking for years, but it’s become especially prevalent since the economic recession hit and a gallup poll I found support that thorey of growth. And for some reason, this increase has nothing to do with what they themselves are doing to create that perception. (Heaven forbid we take responsibility for our own circumstances.) Just like the Super Bowl Trophies, it’s not an excellent work ethic, stellar choices, responsible investment of money, careful attention to picking the right mentors to model and learn from, or a commitment to their family to prosper to become one of the haves instead of the have-nots.

Unless an individual actually learns what natural abundance is all about, people are held hostage by this limiting thinking. For those who have learned that it’s not a problem with limited resources (only beliefs) they don’t have a problem with sharing resources, money, or knowledge. We realize that like Doritos, you can eat all you want, we’ll make more. For some, it almost seems effortless, natural in a way. If you look at nature, it doesn’t struggle, it doesn’t hoard, nor does there seem to be any shortage of resources for each blade of grass, leaves growing on trees, or flowers blooming during this time of year. You do have to provide the proper amount of sunlight, water, and nourishment while nature takes care of the rest without any further effort on your part. You couldn’t stop it even if you tried.

My newsletter is a perfect example of abundance. By giving away what I know in knowledge about YTB to others based on my years of experience with the company, I’ve been given other opportunities and resources that support me. The more poeple I help, the more resources I have at my disposal. Old beliefs would have kept me from offering this out to everyone because the belief was there’s not enough. But because I understand the context of the teaching as a child during the egg hunt, I now reap the rewards.

We run into this fear of not enough especially in Network Marketing, all the people at the top who got in early, make all the money. They obsess over this “fact” not realizing that the theory they’re so fearful of has ever come to true. Yet they spend a considerable amount of time and energy warning everyone that comes across their path that someone is going to loose out. And like the innocent children who wondered around aimlessly during the egg hunts that were held all over the country, they as adults are left with empty promises and no money to speak of because their too distracted about what they learned while growing up.

Most NFL fans only look at the 6 Super Bowl Trophies right now and if you’re a fan of another team, look in envy of the 6 Super Bowl Trophies. Especially Cowboy fans. (Isn’t that right Charlie?) They look at the last 40 years when Chuck Noll was hired as head Coach and the dynasty that he started back in the 70’s. Nobody considers the first 40 years of their existence in the NFL when they lived in the basement with only a handful of winning seasons during their first 40 years. They were certainly one of the have-nots during that time and the laughing stock of the NFL.

When Chuck Noll was hired in 1969, he changed that way the team drafted, the way they practiced, and the way they thought about basic techniques and drills. In making these small adjustments, he changed the direction and the destiny of the team from a basement dweller to Super Bowl Champion. Instead of looking for a handout, taking from the haves as a have-not, change those childhood memories and thinking that there’s not enough and begin to think and work like those more successful than you are. That my friend is the REAL American Dream of Hope in this country. You don’t need a hand out, you don’t need the Government, and you certainly don’t need that limiting belief any longer. If you do what other successful teams or people do, you’ll begin to reap the rewards of their success.

It’s never too late to start, and your chances of creating something based on proper thinking and action, instead of waiting for some hand-out will greatly enhance your chances of success and happiness. It’s not easy, it takes some time, and there is a considerable amount of doubt the creeps in from a considerable amount of screaming and yelling going on by those who only want what’s fair based on what they were taught as a child.

It’s time to grow up and become an adult and stop complaining and start creating.

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
Learn How To Become A Travel Agent

Book Your Travel & Vacations With


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Do You ZamZuu?
TSO #588629
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“Professionals” Come Forward…

Friday, August 29th, 2008
0
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There are times when I read or hear about something, and it just doesn’t sound right. I’ve been attempting to get my head around this California complaint off and on since the Convention. Something just didn’t fit. It’s a single state, with the help of Illinois who is still on the sidelines, and we’re still doing business in California. (More business by the way than any other state in the country I might add. ;-P)

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

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

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

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

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

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

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

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

And a whole lot more.

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

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

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

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

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

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

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

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

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

Nothing more than a very dry bone of contention.

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

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

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

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

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
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Isn’t this special?

Wednesday, August 6th, 2008
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What I find so ironic is this “news” was embargoed Until 10:00 p.m. Pacific Time on August 4, 2008.

Nice timing huh?

I need to be very careful and general here concerning the events of August 5th. Travel Trade did a decent job of highlighting both sides of the story, including the 8K that YTB had filed yesterday afternoon.

A couple things have been running through my head and while John, the other TTA’s and I are not talking right now, maybe someone could ask John, Kate, Bruce and a new player in the TTA mix, Mark this question.

How much did it cost any of them for a “chance to receive compensation to introduce one or more” into YTB? From what I understand, John has been very busy recruiting people into our company right now. How much has the bottom of his pyramid lost? How much has John made from all the recruiting he has done?

YTB has worked with this AG concerning both RTA and CLIA qualifications that are now rolled out Nation wide, yet we are deemed to “operate a “travel card mill” to permit and encourage consumers to hold themselves out as sellers of travel through the use of credentials”.

I would also like you to view this video of Rick Ricketts presentation and note the statements at both 3:00 and at 3:15 in this video. Both done for the benefit of California and now rolled out Nation wide.

Yet, we are driving around Porches and flashing checks according to the suit filed.

Please remember that this is a civil case folks and the State needs to prove that these “claims” are misleading and unfair. The buzz here at the Convention after reading the wording of the suit is the States claims are misleading and unfair, not ours.

I have to agree with our Legal Counsel in California, that we have a very strong position in this case, and based on the events and changes to comply with any legal matters concerning a “pyramid scheme” that concerns California or any other State will be left unfounded.

This case could settle once and for all any claims about YTB being a “pyramid scheme”.

Knowing what I know about the wording from the FTC and the State at this point, I like our chances.

We shall see.

Off to class!

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
Learn How To Become A Travel Agent

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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
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Phone: 678.458.5812


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