That life is boring at YTB. ;-P

I apologize for not getting something out sooner – the kids had early release the last two days and we had projects planned. I also have a business to run and don’t have the vast amount of time in my profession that others apparently have. I have however been trying to sort out fact from fiction from various sources I know and trust via phone since the latest episode of “Days of YTB” has hit cyberspace.

Before we get started…I think it’s appropriate for the proper background music due the nature of what’s happened this week. For your listening pleasure, I’ve resurrected an oldie but goody that I’ve used before when there’s so much talk about YTB.

Apparently there was a mass exodus of wackos over the last 36 hours that have put out some pretty outrageous stuff. As usual, those of us who have a firm grasp on the situation are left to clean up the mess. Due to time restraints, I need to warn everyone that I have not read – but merely heard some of the rumors I’m about to squash. Therefore, please understand that some of what I might comment on – may not have ever been written in the vast space we call the internet – nor can I reference just who said it.

The following is a list of what I have heard and what I know to be true.

YTB’s CFO, John Clagg has resigned effective February 2nd. I’ve heard of various scenarios on how this came about. Some reasonable and some outlandish. The reasonable would consist of being burned out. With what the company has gone through since the California Law Suit was filed the day before the 2008 National Convention, and a new CEO who has a keen eye on the companies bottom line – it’s understandable that it would drain anyone.

Another reason I’ve heard is that John saw the writing on the wall – meaning, YTB isn’t going to make it.

Please…

One, the company has secured a $650,000 loan based on the expectant sale of the former home office located at One Country Club Drive. Which is odd – because it’s been widely publicized for years on various boards and blogs that YTB doesn’t have any assets to speak of. (Who knew?)

Two, it was announced on a company call yesterday, and corresponding documentation will be available to the field of some 300 $1000 Quick Start Bonuses will be in mailboxes across the country today. The ZamZuu e-commerce platform announced at the Coach’s Birthday Bash in early January has provided a much needed stimulus package for the field. When the field is making money, the company is making money. The enhanced commission structure enables the average person to attain a bonus, and that builds momentum.

You certainly don’t need to be a CPA to understand that cash flow isn’t the current problem at this point in time. (Still tight, but there is light at the end of the tunnel.)

An interesting observation from some time ago – I remember the exiting CFO being chastised by critics as “unqualified” for the position. It’s rather convenient that the ridicule and lack of qualifications are quickly tossed aside now that John has decided resign. I just love how folks can play both sides of the fence when a new position appears to benefit them. Happens with Directors too. All of the sudden these liars, scammers, and cheaters suddenly turn into Saints simply by leaving the company for another.

It would make any John Kerry supporter proud.

While there is a rumor of massive trading from our Directors due to this news, I’d hardly consider 29,300 shares massive. While John did resign on February 2nd, it was well after the closing bell on Tuesday. (3:00 Central time) I’ve never really understood just why this type of rumor persists with our Directors. I just chalk it up to ignorance and a way for critics to create more drama. Day traders have a ton more fun with this stock than any Director. Due to the timing of our CFO’s resignation and how suddenly (although not surprising) the resignation developed – nobody had any chance to benefit one way or another from this news. Based on the volume, between the verbal resignation and the release of the 8K – the numbers certainly don’t indicate insider knowledge.

Current CEO Robert Van Patten will fill in as interim CFO of the company until a replacement can be acquired. Mr. Van Patten is well equipped to fulfill the roll as CFO for YTB International, and has been in charge of much larger corporations in the past. His leadership is the largest reason why YTB has been able to acquire – all be it small – profits the last two quarters even with revenue down in 2009.

Another rumor floating around is that Ron Head, YTB’s Master Distributor has been terminated. While this may be the case after a thorough investigation – at present any word of termination is premature. Ron has I’m sorry to say been suspended due to possible cross recruiting.

If I’m getting e-mails and calls from every Tom, Dick, and Harry about the next “Big Thing” I can’t even begin to imagine what kind of carrots our Directors are seeing. How much greener the pastures are – how well everyone BUT YTB is doing in this economy – or all those “special positions” reserved for “true leaders” in the industry. I’ve seen and heard some real WHOPPERS in regards to rumors about what’s going on with YTB – including one I’ll mention later – that aren’t created by critics of MLM – but other MLM companies to lure people over to their company.

Attaining a Circle of Champion Director from YTB is a HUGE feather in the cap of any company because – as we all know – YTB created massive amounts of income for those who went to work. So much so, it caught everyone’s attention. Especially in an industry that understands and wants “recruiters”.

A personal note here – and this has nothing to do with Ron or any specific Director who has since left YTB for “greener pastures”. I have yet to hear of see any of YTB’s former Directors leave and actually stay with the next best thing they left YTB for. Several Directors that I know of have been with several different companies since leaving YTB and I can’t think of one (NOT ONE) who is currently better off today than they were the day they left YTB. Nor, with the exception of Corr, who just launched his new venture this week, is currently with the same company they moved on to.

That’s not to say they won’t be able to find another home. For some, I sincerely hope they do. It should be noted however that all of the fanfare up to this point has been nothing more than a passing fancy for every single Director who has left YTB for the next big thing.

Another very curious rumor floating around was that Coach, Scott and Kim were forming another MLM. Honestly, I just can’t wrap my head around this one. Critics, I could understand – they’ve always thought that our Founders would eventually call it quits. Some speculated retirement on some remote island with all our $50 checks in tow – while others speculated another industry entirely to rape and pillage. I’d expect that kind of stupidity from them.

It appears that rumor has also been squashed as Coach has been appointed the newest Master Distributor of…

Wait for it…

YTB.

Sigh…Coach will be recruiting again and honestly, it’s what he does best. I realize that frustrates some, and I know the fears and phobias surrounding the word “recruiter”. People slap that word on me all the time – and truth be told – yes, I do recruit. I recruit for Carnival, Princess, Sandals, Collette, Delta, Air Tran, Holiday Inn, Avis, Sears, Home Depot, Best Buy, and YTB. (Among others, but you get the idea.) We all recruit in some form or fashion and I fail to see what the concern or deal is when it comes to word “recruit”.

I can only hope that at some point in time they come come to grips with their “issues”. But don’t expect me to own that type of stupidity and fear just because it makes someone angry or bitter. The heightened outbursts and emotions I see reflects more about them, then it ever will me.

In closing, for those of you in YTB for reasons only you have a right to decide and place judgment on – don’t lose your focus or the sight of your dreams. Many of you got into YTB to sell travel and/or e-commerce. Others have found a new spark in the e-commerce platform that has triggered bringing people into a very promising opportunity that like travel a couple years ago was attractive to the masses.

If you’re like me, you see all the deposits waiting to turn into cash when these vacations are consumed this summer. Like the company, you need to think long term and tighten up to stay in the game in order to capitalize on the deposits your sitting on. Others saw checks in the form of cash back this week for doing what you already do – shop. More of the same is coming on the 11th when the residuals for being a business owner are sent out not only for your own shopping but all those who shopped on your sites.

By the way you realize they too got cash back checks this week from their own shopping experience with ZamZuu right?

Call them up…ask them if they think this works.

I got to tell you, it’s a much better alternative than searching the internet right now, trying to get a feel from a bunch of cowards who don’t have the guts to put a real name behind what they plaster all over the internet or talk about on the phone.

Because I had another post scheduled for today, it’s been bumped to Monday. I think you’ll like it and it drives home why ZamZuu is right on mark and why big name companies are going to a model just like ours to sell their product or service. You don’t want to miss it!

Hope to see you again on Sunday in your e-mail box with this week’s wrap up and the Just Picture It Now Newsletter.

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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I received my ASTA SmartBrief this week and was floored at one of the columns highlighted in this week’s mailing.

Before I move forward, I need to put out some sort of warning here that readers should not be drinking any type of liquid at this point in time. (All the sugar in your Kool-Aid will ruin the monitor and cause the keyboard to stick.) When you find out who the author is, you’ll be just as surprised as I was. (As others have asked if this is the same now famous critic of YTB we’ve all come to know – but not actually love.)

Truth is, if there’s anything going on about YTB, you’ve got to know at this point in time that John Frenaye isn’t far behind. He’s pretty famous in our company for trolling the internet on anything YTB. It makes no difference if it’s one of his peers in the industry, a District Judge, an industry Power List, or an articulate member of YTB – John has an uncanny way of coming up with a “Yeah-But” or a “Look over here” piece to take the focus off the main subject and point you down a road that conforms to his own perceptions and beliefs.

Although this article is riddled with some pretty absurd perceptions of how MLM takes things to the extreme, you can judge from you own actions and experience if it has any value. Personally, I’ve never lost a friendship over YTB and nobody’s ever vowed to never speak to me again. Furthermore, I’ve never been approached by anyone about any opportunity while standing in line at that grocery store.

We can simply kick those perceptions to the curb for the time being.

I do however, have to give John some credit for pointing out some very basic and solid business skills that MLM does in fact excel at. Based on my own experience with YTB, my business looks very much like his “traditional business” in every aspect. Based on those of you I personally know in this company, I think you’ll agree that yours does too.

All the snide and exaggerated comments and perceptions aside – there is something for the new recruit here to learn about why MLM works.

Referrals are as simple as John says they are. Do you know anyone who might be interested in selling travel, or picking up some extra income on a part time basis? The beauty of MLM is that you work when you have time. It’s not like a regular part time job that you have set hours, and quotas that you need to meet. Which can also be a problem for some. It’s far too easy to think that you don’t have the time. The vast majority of our company work YTB on a part time basis with regular jobs and families to tend to.

Think about it…doesn’t asking for referrals sound much more attractive than hounding someone in line at the grocery store? (Who’s really tried that anyway?)

When it comes to follow-up, the company has a very cool system in place called the YTB System. I’ve used something similar to this my entire carrier with YTB. Not only does it capture qualified leads for you, but also notifies you when a prospect has looked at the program. Notifications are also sent when they’ve returned and what they’re looking at while on the site. Using a system like this allows you to sort, not chase. For those who work YTB part time, this puppy is a real time saver. You’ll find yourself working with and talking to qualified prospects who are truly interested in what you have.

It’s all about working smarter not harder. However, the entire system is wasted if you don’t follow-up. It doesn’t have to be nearly the nine times John talks about. (I personally only spend half that much time before moving on.) But the money truly is in the follow-up.

Lastly, I’ve never seen a company with more products, or more streams of income than YTB. All I bought 5 years ago was a booking engine to sell travel. I was also given the opportunity (meaning it was a free opportunity) to sell booking engines as an added stream of income. Today, I’ve got something for hunters, golfers, newlyweds, and with the addition of shopYTB, just about any other product under the sun. If it’s available online, I probably have it. Heck, I’ve even got beef jerky if that’s what you’re into. (Or in John’s case – girdles!)

Yes, I know there some ribbing going on about that sort of thing. Honestly, neither the jerky nor the girdles get me all that excited. But I’m certainly not going to knock the women of YTB for going nuts about girdles. (I know better – and if John was still married, he probably would too.)

These skills, principles, and the model really DO work. It’s why Avon is still around after more than 120 years. It’s the same reason Earl Tupper pulled Tupperware off store shelves in 1951 and has been sold via the MLM and the Direct Sales model for almost 60 years. After a decade of selling Nutrilite Products via MLM, two guys founded the American Way Association in 1959, which we know today as Amway. (Amway now owns Nutrilite Products Corporation.) In 1963 Mary Kay Ash started with 9 “beauty consultants” which today has expanded to 32 countries. In 1977 a good ol’ southern boy for Georgia founded A.L. Williams and just two years later, J. Lloyd Tomer joined the group just before the company outsold the entire insurance industry for 7 straight years in a row during the mid to late 1980′s.

And today you have a little company based in Wood River, Illinois who has been able to sell $424 million in travel in its 8th year in business.

There are hundreds of companies who sell via this model because MLM does have it right. (Take a look at the DSA list for more than 200 of them.)

True, it’s sad that John and others can’t seem to get out of their own way at times when it comes to some of the ridiculous and outlandish beliefs. Just remember, don’t take it personally. (Unless you’re the one person who pestered him in the grocery line. ;-P)

Truth is, MLM is more like their traditional business than they’ll ever know.

The only difference is some get that, and some don’t.

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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In case your wondering…no you didn’t miss some secret National Convention – Funshine – or some special Birthday Bash this week with YTB. With all the news in the past week, you’d think that there should have been something to get everyone together to celebrate what’s been going on.

Think about it…last Friday we release the new Group Cruise Page with Convergentware and posted a 10Q profit. Tuesday, the company hosted another Carnival Sail-a-thon and tied the Facebook phenomenon into the mix for a very cool and creative way to promote the best vacation money could buy.

Then yesterday, the company rolled out a wish list if you will. A small group of enhancements and improvements that those of us out in the field wanted to see to streamline prospecting and provide information in various departments and topics.

To end the week long list of promotions, enhancements and upgrades we come back to a topic that has been on the mind of many for quite some time.

It’s been over a year now since we first heard about YTB contemplating a franchise model. Soon after, California slapped a $25 million lawsuit with claims of some “gigantic pyramid scheme” in with it the day before the 2008 National Convention. I’ve heard rumor that the franchise announcement was nothing more than a “ploy” to stop the impending litigation which also produced a stance from the same clowns that it would never happen. By the time a settlement was reached (something else clowns never said would happen.) the court documentation that came out verified that a franchise model was required in California because in their eyes YTB was operating an on-line travel agency franchise without registering as one.

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

By the way, I have no knowledge of any other company ever being accused of being both a pyramid scheme AND franchise at the same time – but leave it to California to be the first to do something like this. ;-P

So, we’ve been hearing about YTB implementing a franchise model for quite some time, and for months the home office has been preparing documents, manuals, and registrations for this new development.

Today, it’s time to take one more step towards making franchise a reality.

Starting today, November 13, 2009, there will be a link to a franchise seller disclosure form in your Rep Back Office. All Reps have to do is log in, answer a few questions, and submit the form. Once YTB officially implements franchise next year, (a little more that a month and a half away) we will be ahead of the game. (And yes, I intend on registering.)

The link will only be active for a limited time. And, you won’t want to miss out on your opportunity to be one of the first to officially register as a franchise seller with YTB.

PLEASE NOTE: All Canadian Reps who might sell a franchise in the United States should fill out this form in their Back Office. Once YTB implements the franchise model in the United States, only registered franchise sellers will be able to market the YTB Affiliate opportunity.

One last clarification – you’ll only be able to register for this document from the YTB Marketing side of the business. You will not find it from the Travel Portal. Remember Reps sell Internet Business Centers – and Travel Agents sell travel. They are two separate opportunities and models.

Wait – you already knew that didn’t you? Sorry – as you were.

Actually – log into you back office and get yourself registered…

Nice job, once again YTB! Thanks for all the info and opportunity to show folks that you’re not only still around, but have plans to be around for a long – long time. It’s been an awesome week.

Got to run…there’s a newsletter to produce with a ton of new content.

C-ya!

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Direct Sales date back thousands of years with roots in Egypt, Syria, Babylonia and India. Traders, merchants and caravans are examples of the early direct seller who formed this ancient tradition and basic need to exchange goods. Fast forward to a century ago here in the U.S. and you’ll find the birth of The Direct Selling Association (DSA) who will celebrate it 100th birthday next year. As a fan of Direct Sales, I wrote an article about one of the oldest Direct Sales Companies still in existence today. Founded in 1886, they’re a real powerhouse today – producing $10.7 BILLION in annual sales. Never heard of The California Perfume Company? They changed their name to Avon in 1939.

With all the economic news that this country has had to endure over the last year, it’s refreshing to see one business model that’s not only surviving, but thriving in these tough economic times.

Direct Selling News just released a comprehensive list of the the worlds top direct selling companies with wholesale revenue of $100 million or more. On the list we find some very old and prominent companies such as Avon, Mary Kay, Primerica Financial Services, Herbalife, Tupperware, Nu Skin, Shaklee, ACN, Pre-Paid Legal, Market America, Keller Williams, Pampered Chef, Southern Living At Home, and oh…lookie here…YTB International.

If you’ve never heard of this list before – well, it’s never been out before. Think Travel Weekly Power List here, but for the Direct Sales Industry. For the first time, Direct Selling News decided to come up with a list of it’s own for the Direct Sales Industry. I realize that for some, Direct Sales doesn’t amount to much, (in fact, it’s despised by some who just plaster the word “pyramid” on what ever they like) but when you look at these sales by the numbers, and compare them with some of the dates these companies were founded, you have to admit it’s pretty impressive list of “Networkers” who some claim will eventually run out of people.

The purpose of the list in Direct Selling News was to “journal the might of the direct selling industry”. In the report, YTB International ranked #46 overall with $162.5 million in sales. Not too shabby for a company that’s been a very heated topic in the travel industry, had it’s share of legal battles and has been a daily rant for a select few with a false and limiting belief that Direct Sales is a sham. While YTB’s numbers are fairly straight forward, reporting it’s numbers to the SEC as a publicly traded company, like the travel industry, very few Direct Sales companies do the same.

Like Travel Weekly, Direct Selling News made every effort to verify sales in this industry with checks and balances via sources like Hoover’s Company Records and Dun & Bradstreet, SGA Executive Tracker Companies, Standard & Poor’s Descriptions Plus News, Company Briefs–Gale Group, Global Duns Market Identifiers, Market Guide Company Profiles, America’s Corporate Finance Directory and Directory of Corporate Affiliations.

According to Direct Selling News, one thing became clear during their research: A number of Direct Sales companies are still growing despite the economy and despite all the misrepresentations and myths surrounding the industry.

“Almost miraculously, our organization has continued to grow,” says Joe Urso, Aerus Chairman and CEO. “Selling high-end products is not easy, especially in a down economy. Our team has continued to grow by inspiring others to pursue the opportunity for a better life that we offer.”

The report also states that USANA recorded its sixth consecutive year of record sales, Pampered Chef had a 5 percent increase in recruiting and Tastefully Simple product sales bumped up 5 percent. And like YTB’s Founders are telling their field or TSO’s and Website Sellers right now, Executives from other companies are telling people that despite the economy, their companies are not only larger in regard to revenue, but are coming out of this recession better than ever.

From the report.

And many direct selling executives tell us they believe the industry will emerge from the recession bigger, faster and stronger. “Over the course of the next few years,” says USANA President Fred Cooper, “we anticipate USANA—and the network marketing industry in general—to continue to show patterns of growth.”

Emerging bigger, faster and stronger has special meaning for those of us in YTB. The company wasn’t fighting just the recession and the poor economy. Just over a year ago YTB was in another club, sued for $100 million by a bunch of ambulance chasers who wanted a quick buck. A year later, the class action thrown out for being redundant, immaterial, impertinent, and scandalous, YTB is prominently placed in a $100 million club for actual sales with another prestigious group of peers.

My how things have changed for YTB as the debate over pyramid crumbles and legitimate rises from the ashes.

Congratulations to all 65 members of this list. You’re the cream of the crop in the Direct Sales Industry who have collectively produced billions of dollars in revenue – one person – one sale – one day at a time.

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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One of the most powerful skills you can learn in this day and age is DISCERNMENT. Knowing when you’re hearing truth or lies is a necessity, not a luxury. One of the things I pride myself on is providing third party documentation to validate what’s being written.

Back when California agreed to settle it’s lawsuit with YTB and the final papers were filed, I gave you direct access to the legal documents that were signed by all parties involved. I did this so everyone could read for themselves what the settlement actually said instead of relying on all the garbage that was being posted on the Internet. (Which started with the very person who filed this nonsense about YTB being some sort of “gigantic pyramid scheme” and the “Press Release” that said so.)

It’s been said before that when YTB sneezes, the entire industry catches a cold. News reports soon followed concerning the settlement that YTB had been stopped by the California Attorney General and created a media frenzy of mass confusion on forums, message boards and blogs.

I attempted to cut out all the nonsense and spin by asking everyone to actually read the filing instead of following the propaganda and spin elsewhere. For the most part, people did actually take the time to read the settlement and some of the bullet points that I documented at that time.

Yet we still have a few stragglers who either can’t seem to grasp, or more likely, don’t care to grasp the reality of what this settlement has actually done for YTB. You need to remember that the promise from the California Attorney General was to shut the company down. (Or at least that’s what we had to endure for 10 months.) Those who were convinced about the power Jerry Brown had have been shown otherwise once the settlement was reached. You would think some would man up and consider the possibility that they might not know as much as they think or claim. The California AG did come up considerably short in shutting the company down and $25 million the suit was seeking dwindled to $1 million in the process, so you certainly can’t claim any type of victory there.

Still the initial suit was brought about which attempted to cut the legs out from under the big recruiting commissions being paid to the field. The entire focus, because of something I call “wealth envy”, were the millions paid to YTB Reps for building the business, and not enough money being generated from actual travel sales. Therefore the settlement addressed this phobia directly in what has become known as the “60% Rule”.

(f)(2) Defendants may pay a Website Seller compensation based on the Website Seller’s Total Personal Sales Volume (the dollar amount paid to Defendants that month as a result of the Website Seller’s personal sales) only if the Website Seller has met that requirements of subparagraph (f)(1), [compensation other than a $50 flat fee] immediately above. Defendants shall not pay a Website Seller the full amount of such compensation unless at least 60% of the Website Seller’s Total Personal Sales Volume is derived from Website Owners who are not also Website Sellers. If more than 40% of a Website Seller’s Total Personal Sales Volume is derived from Website Owners who are also Website Sellers, the amount of such compensation Defendants may pay the Website Seller shall be reduced so that the amount of such compensation derived from payments by persons who are also Website Sellers does not exceed 40% of such compensation paid to the Website Seller in any month.

I explained in the article that addressed the settlement when it was announced how worthless this particular clause was, but put there anyway to address the common misconceptions and fears surrounding our company. The hope of this clause was that it would curb the hefty recruiting commissions.

Defendants shall not pay a Website Seller the full amount of such compensation unless at least 60% of the Website Seller’s total personal sales volume is derived from Website Owners who are not also Website Sellers. Meaning that you now need to limit the amount of Website Sellers in your business. You actually want people that are solely interested in selling travel. If you look at the Income Disclosure Statement from 2007, it documents that 80% of the people in YTB didn’t recruit a single person you quickly realize that’s not going to be hard to do.

The idea here is an attempt to limit the amount of income Website Sellers make. (Also known as “recruiters”.) Clearly, California and the “experts” who designed this didn’t bother looking at the Income Disclosure Statement when they designed this rule. With only 20% of the company acting as Website Sellers, it’s not going to be very difficult for Website Sellers in the company moving forward to make that 60/40 split. Unfortunately for California and other critics who have a phobia about “recruiters”, they got too caught up in the actual income and not how the large sums of income were actually made.

When we go back a few years and look at the breakdown between those who sell travel, those that recruit, and those that do both the 2007 income disclosure statement documents more than 80% of YTB were “Website Owners who were not also Website Sellers”. If we go back just one year to the 2008 the income disclosure statement the percentage of both “Website Owners who are not also Website Sellers” increases to 89%. Both the 80% from 2007 and 89% from 2008 assumes that everyone is Website Owner. (RTA/TSO)

Moving forward with the new requirements in the settlement, if we again assume that everyone wants to be both a Website Owner and Website Seller each individual who accomplishes this must first refer 3 other “Associates” who wish to do the same. If successful and that Associate upgrades to a Website Seller and is also a Website Owner, only one person in their organization (out of 4 meaning 25%) qualify as both a Website Owner and Website Seller, far below the 40% that the settlement addresses.

So you can take your pick here. 20% were both in 2007, 11% were both in 2008, and moving forward we increase to whopping 25% ratio between Website Owners who are not also Website Sellers. At best we see gap of 15% below the 40% required to appease the new “60% Rule”. (Also assuming that everyone wants to be both a Website Seller and Website Owner.)

You may be asking yourself at this point; if documentation and the facts provided are informing me that this “60% Rule” isn’t a legitimate concern, why should I care?

Because “The Stalker” says so. (More on that name a little later…)

In a post written yesterday, we found a very creative play on why YTB will be re-activating Travel Sites that have gone inactive over the last year. More than likely these sites have lapsed simply due to falling for this idea that California had the power and resources to topple YTB and a decision was made by the Website Owners to move on.

This new take is as follows, as the self proclaimed “expert” on YTB and MLM.

Rather than comply directly with this requirement, they are simply artificially inflating the number of travel sellers (RTAs/TSOs). There are many people that simply quit YTB without an official notice. Maybe they canceled their cards or disputed the transactions.

Well, now YTB appears to be turning on all of these sites back on (after all they never got an official notice to turn them off) and can re-assign them at will to the appropriate Power Team Leaders who may not comply with the 60% rule. Shrewd. Very Shrewd.

Now, I have to ask you: based on what we know based on documentation dating back to 2007 concerning those in YTB who actively participated as both Website Owners and Website Sellers, how is this possible? Why on earth would YTB now need to inflate the RTA numbers? Because critics have said so and without being aware of what’s being spun, most people would not be able to discern the truth from the lie created.

This idiot (along with the other dolts who blindly hang on his every word) have given us yet one more example of their ignorance. It’s not that they’re incapable of figuring this out, it’s that they are unwilling to look at YTB as anything other than flawed. These desperate attempts to spin and create doubt as specifically designed for anyone who might be looking into YTB and does not have access to the documentation that discredits it. (Note: not one link or reference to any actual numbers in the post. Just an observation from some numb nut who thinks he’s got it all figured out.)

I did make a small attempt to engage in the conversation there after receiving several e-mails asking how this “creative take” could be accurate. But upon returning several hours later, the conversation wondered off to Steals and Deals, the Can Spam Act, and claims that my life has fallen to new lows. (They never were very good at staying on topic.)

Instead I found the exercise above more productive.

Look, I know your tired of dealing with the lies, the misinformation, and the spin just as much as I am. You might as well resign yourself to the fact that there are those who are determined to throw this type of mud out there. They can’t help themselves and it’s becoming obvious that they need some sort of 12 step program or a good shrink to cure what ails them. Unfortunately, the first step is an awareness that you have a problem. I’ve been enduring this dolt going on two years now and I just don’t see any of them coming to grips with what YTB truly is any time soon.

In fact, it’s been getting worse rather than better now that YTB has once again shown how clueless this “expert” really is.

I mentioned “The Stalker” a little while ago. That’s the new name the Home Office has given John Frenaye. We’ve come up with this name because he’s reporting information on his blog from my newsletter based on the access he’s obtained. We also had a new revelation that he’s now a fan of Coach on the new Facebook page. That should tell you that his desperation and obsession is getting worse not better. It had been discussed that we de-fan him, but he’d only appear once again as some “John Doe”, so he’ll remain as is. (Much like he has with my newsletter.)

Just be aware that he’s joining these groups designed for YTB members, in an attempt to continue on with his charade that MLM’s and Travel don’t mix. If you’re like me, you begin to find the claims about YTB always being the one who reacts and responds odd. Truth is, it’s the critics and the industry that always responds to what YTB does. Not the other way around.

The trick is knowing when you’re hearing the truth or just another lie.

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The 1999 Texas Electric Choice Act, which went into full effect in January 2002, changed the electricity and power industry. In 2005 Rob Snyder committed $1.5 million of his own equity and after clearing a few hurdles with the Texas Public Utilities Commission, Stream Energy had a REP license and company to sell energy to its customers. They began switching customers over to their new energy plan with 40,000 customers by June. In August of that same year, Katrina hit, devastating the area and threatened to do the same with this new emerging MLM.

Even after so many hurdles, Stream made it through its first number of years and today is flying high. If you’ve never heard of Stream Energy, they’re a retail electricity and gas provider in Texas and Georgia. Stream is now the 29th largest private company in the Dallas/Fort Worth area based on revenues of more than $800 million in 2008. Stream’s marketing division, Ignite, has fueled Stream’s growth through what the company calls a “multilevel marketing program.”

There they are…those three little words…”multilevel marketing program” also known by three letters: “MLM”. One would think it was four letters based on the reactions of some extremely overzealous critics. Because YTB is also a “multilevel marketing program”, you’re well aware of how it brings out some real nut cases who for whatever reason feel they need to save everyone from themselves. Some of us have mothers who use to be in in charge of protecting us as children. Apparently mom needs help now that we are grown adults as some try to warn us of the danger surrounding Multilevel Marketing. (I actually asked someone last week if they were my mother.)

Attorneys from Houston’s The Clearman Law Firm have announced a federal class action lawsuit filed last week under the Racketeer Influenced Corrupt Organizations Act against Dallas-based Stream Gas & Electric, Ltd., Ignite Holdings, Ltd., their related companies and several affiliated individuals. The press release issued by Clearman looks to be a simple copy and paste from the pages of Wikipedia or Scam.com.

“Some of the individuals at the top of the Stream and Ignite pyramid earn millions of dollar a year, while most of those that are now joining the scheme will likely never recover their investment,” says Scott Clearman of The Clearman Law Firm, lead counsel for the plaintiffs. “Stream promises recruits that they can make vast sums of money, but the fact is that most will lose their money.”

Nothing new there. It’s the same line we’ve heard for years from a select few who are too stupid or too lazy to figure out that companies like Avon, Mary Kay, Tupperware, Fuller Brush, Amway, NuSkin, Primerica, and Pre-Paid Legal have been operating as an MLM for far longer than this myth about running out of people has been pitched. None of the listed companies have hit this invisible bottom few claim to be inevitable.

I absolutely LOVED the response from Rob Snyder that I found which points directly to the ignorance we find surrounding the MLM model.

The fact that the Texas Attorney General’s office has previously confirmed the legitimacy of Stream Energy’s network marketing effort speaks volumes to the veracity of Mr. Clearman’s assertions. Moreover, the further reality that Stream Energy serves as a Provider of Last Resort as requested by the Public Utilities Commission of Texas also attests as to Stream Energy’s standing and repute within the state’s deregulated retail electricity market.

Simply put, the direct selling models used by firms such as Mary Kay and Stream Energy have been repeatedly found to be unquestionably legal. And, unfortunately, it seems these days that any clown with a bow tie can file a lawsuit on behalf of a purported class of injured parties.

We look forward to seeing Mr. Clearman in court.

While I’ve yet fully investigated this situation I suspect there are a few Reps with Ignite who were unsuccessful in obtaining customers in the first couple of weeks. Instead of improving themselves with knowledge, sales skills, or self-confidence, it was easier to find an Attorney who could file a law suit on their behalf so they could play the role of victim.

I actually know a couple of people who are with Ignite and have been asked to become a Rep and/or a customer of the company. While I did take a look, both the program and product didn’t tickle me the way a cruise would. Energy, like phones, cable (or satellite), and internet service are commodities that most everyone uses and I’m sure there is money to be made in all of these areas. Personally, I’ve always gone after things that I have a passion for. (Trust me, it helps in the sales process.) Entrepreneurship however, does solve a problem with a solution. The timing was right back in 2005 for Ignite to capitalize on a market shift after the deregulation of power and many made money with this MLM.

The lawsuit filed in the U.S. District Court for the Southern District of Texas in Houston alleges that Stream and Ignite induced the plaintiffs and others to invest in the “Ignite Services Program” at a cost of $329 and purchase an “Ignite Homesite” web page for a charge of $29 per month. The lawsuit claims that a large portion of the $329 is paid to those higher in the pyramid.

I found another article while researching and invite you to read what it took to start Stream Energy. (Found in the middle of the article in Arial font.) The millions of dollars invested to start and maintain a power company makes $329 and $29 per month literally chump change. We’re not even talking about the monthly overhead and lapse in time between being charged for the power used and when the customer actually pays (if they pay) their bill. But because the company uses “multilevel marketing” with thousands of independent representatives who now have a legitimate power company they can invest in and sell power through, (which in turn generates revenue for the investor), it’s a raw deal.

The way I see it the raw deal here are the idiots who think they need to save you from yourself instead of educating and training you to become self-sufficient. Like I said, I’m not a part of Ignite or Stream Energy, but I would place very good odds that this company’s focus is empowerment (pun intended) not some bogus pitch that you don’t have what it takes.

It will be interesting to see how all this unfolds. But like we’ve seen with YTB over the last year, we know that these types of allegations (and that’s all they are at this point) take time to reveal the truth. However, I can’t predict the future for Ignite or Stream. My hope is however, it will serve as a notice to others who can’t get past their own fears and self-imposed limitations that multilevel marketing is not only here to stay, but a legitimate business model.

All the best to Mr. Snyder, the Corporate Heads of the company, the independent representatives of Ignite and the customers of Stream Energy.

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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Monday we talked about owning your own travel business with YTB. Today were going to talk the phobias surrounding building a sales team that sells travel websites as a Rep with YTB Marketing. The recruiting that is a part of the parent company has been a real bone of contention for some time. But before we dive into the phobias, let’s look at a couple of very cool features with YTB Marketing.

1. There is no cost or upfront fee to become an Associate or upgrade to a Representative.

2. There is the potential to make as much money as you wish with no caps or ceilings.

3. You create leverage with others who help you sell and you make money off thier sales efforts.

By no means does that guarantee that this will happen if you become an Associate or upgrade to a Representative with YTB because your success depends on how much effort YOU put into building and working. However, the potential is there, and we have some incredible success stories with YTB Marketing and real people who have made millions doing this.

I know all about the phobias, anger, and fears about this side of the business when you bring up MLM or Network Marketing. Many just follow along with what they’ve been told by someone else. A few give something like this a try for a few weeks, maybe a couple of months, and because they themselves don’t make millions within that time, it’s not good enough for them to simply say “no not for me”…they need to make sure that everyone knows it’s not for them either.

I had the pleasure of watching a PBS special this weekend with Dr. Wayne Dyer and “Excuses Begone”. While watching, I discovered a new word and a new concept called a “meme“. A meme is a unit of cultural information, such as a cultural practice or idea, that is transmitted verbally or by repeated action from one mind to another. It’s very much like a computer virus that spreads and from one computer to another, that multiplies itself and infects everything it comes in contact with. Memes are often considered as factual, (that’s how prevalent most of them are) but if you actually take a look at look at data, (or lack of data in some cases) you find no facts whatsoever to support the belief.

There is certainly a meme attached to Network Marketing and more importantly YTB when it comes to the myths surrounding this idea that everyone in the business simply recruits others. It’s so firmly entrenched that even the California filed a $25 million law suit in attempt to stop it. What made the meme spread even faster in recent months is that California is perceived as being some sort of “authority”, and there was a perception that because California said it was so, it had to be true.

What California did for YTB was a huge favor now that we have documentation that separates the two business models. What California gave us were tools to help put an end to the meme that is spreading now that the settlement has been reached. If you think that the settlement alone will help put a stop to the myths, you’re partly correct. Nothing in the settlement specifies any pyramid scheme and YTB was never found guilty of running such a scheme. Huge plus in YTB’s favor.

The underlying problem however isn’t so much the pyramid scheme but the perception that everyone who joins YTB is recruiting hoards of other people into the business. Those that fear pyramids the way the do have all seen the chart from the FTC and the SEC documentation which tells them that it’s impossible to recruit everyone in the world. Doing so, would eventually exceed the worlds current population. Because it’s mathematically correct, most accept this as fact and we somehow need to be concerned that it’s going to happen to us if we get involved in MLM. But typical with most memes, when asked to produce an actual case where something like this has happened, they come up empty handed. (Actually, they ignore the question, but you get the idea.)

We Network Marketers on the other hand, DO have several case studies that should calm the fears and correct the memes surrounding this phobia of running out of people. I wrote some time ago about Mrs. Albee, the first Independent Representative with Avon (then the California Perfume Company) back in 1886. Yet I’ve never even been approached to sell Avon, and most likely you haven’t either. There are dozens and dozens of other Network Marketing companies out there that haven’t run out of people either, yet the business continues to not only survive but grow.

Mary Kay, Tupperware, Primerica, PrePaid Legal, Amway, Herbalife, NuSkin, EcoQuest, Fuller Brush, Melaleuca, NSA, Oxyfresh, Shaklee, Stanley Home Products, USANA Health Sciences, and Usborne Books have all been around for decades and not one has exceeded the worlds population. Yet the fear of running out of people is still being propagated based on what they believe is a flaw in the model.

The same fears and phobias are pitched for YTB of course with the added caveat that recruiting others is all we do in YTB. (Or at least that’s the major focus.) In both the suit and the settlement with California most of the attention was focused on how to stop the recruiting. A plan was devised in an attempt to chop the legs out from under the “recruiters” in the company, which would limit the amount of income Representatives are able to make. Based on the meme that everyone in YTB both buys a travel website AND recruits others to sell travel website the solution was to limit the income based on that beleif. Since everyone is both recruiting and owning websites, this would “fix” the SEC filings that 75% of the income comes from recruiting and help increase the percentage of travel income in the company.

The basic rule that California put in place is 40% of any Sellers compensation in any month could not come from both Website Owners who were also Website Sellers. This apparent “cap” on income would limit the number of big recruiters in joining the business.

All one needs to do here is look at the 2008 Income Disclosure Statement to show any “recruiter” that exceeding the 40% of both Website Owners and Website Sellers, (the big bad recruiters) is nothing more than a pipe dream. YTB Marketing had a total of 209,545 who were either Associates or Website Sellers at year end 2008. Of the 209,545, 188,538 participate only as Associates in our company who are not Website Sellers. (Meaning of course they were not recruiters.) The Income Disclosure Statement documents that only 10% (21,007) could actually qualify as both Website Seller and Website Owner who need to be concerned with the limitation imposed to only recieve 60% of thier compensation paid due to the new “rule”. (Assuming that all 21,007 are also Website Owners with YTB Travel Network.)

While many pitch this myth that everyone recruits everyone else, and that’s all YTB is, the numbers actually show that a small fraction of the entire company are actually “recruiters”.

What critics and now that Government who is blindly following along because of the social outcry of a few ignorant people actually have is nothing more than a “meme”. A false belief, a social perception based on myths, fears and phobias.

The question we now have to ask ourselves is if we can elimiate the virus that’s spread and correct the false belief that all YTB does is recruit others. I can’t honestly tell you that we can. Truth is that the 2007 Income Disclosure Statement also showed that very few people actually recruit others. While some can read and realize that what they are being told proves to be nothing more than a myth based on the documentation in both the 2007 and 2008 reports, not everyone is willing to let go of the socially acceptable belief that recruiting is all we do. It’s a shame that some feel it’s more important to follow social norms than it is to look and accept the facts here. That’s a totally differnet “meme” for another article and another day.

Like I told you on Monday, we’re not looking for “average” or those that want to follow along blindly based on social norms or beliefs. We want people who can think and act on thier own.

I know the pitch is that we’re the “blind sheep” here. That’s nothing more than a pitch to cast doubt and bring you back into the fold. In time, when critics see this the “fix” they’re so sure is going to stop the recruiting falls flat, some may come around. But I wouldn’t count on that, and most are in this way too deep right now. To look at the Income Disclosure and have that change thier beliefs would be a huge step in the right direction. That however, would mean they would have to take personal responsibiilty. Just not going to happen based on what I’ve seen the last couple of years.

The good news however is that there is an abundance of people who are willing to look at the facts, and don’t get wrapped up in the social norms. There are even more still, who like me have undergone an awakening and have questioned many of the social beleifs that have turned out to be completely false. Focus your time and your efforts on that, and you’ll begin to attract others who think and act the way you do. Given time, those that can’t or won’t get past thier own false beleifs will fall by wayside. Before long, you’ll find yourself surrounded by a whole new “social norm” that supports you and doesn’t get wrapped up in what I now know is a “YTB meme”.

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!

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