Most all of you have read my tribute to Andy Cauthen. I’ve personally spoken with him and he’s adjusting to the drastic change from corn fields to cement and tall buildings. In my tribute, I mentioned that the only explanation critics would get was a Press Release to gnaw on that really won’t say much other than we’re sad to see Andy go, but wish him well in his future endeavors.

Something you need to understand about critics: they always have to be right. That’s why they have the last word – and they never let anything go.

My comment about critics only deserving a Press Release was actually perceived as a challenge by the ring leader of this group. Probably because they also have another obsession over trying to prove me wrong. Andy was in fact contacted during his last week of employment for an “interview” to answer some questions. Andy being Andy obviously agreed at first because he’s a professional and sincerely wanted our field to understand and look at his move in a positive light.

After careful thought and some time reading on this critics blog, it became apparent that any type of fair or balanced interview wasn’t likely by this individual. What he saw were half-truths, blatant misrepresentations, and some flat out lies about our company that made him extremely uncomfortable about his decision and interview. So Andy, very politely, and respectfully declined his interview with our head critic.

The word “No” isn’t a word critics like to hear. They’re like children, and “no” doesn’t actually mean “no” – it means go ask another parent. So our interviewer went on to another prospect at the home office for this “interview” about YTB.

Again, he was turned down. But this time he was told more truthfully that his past “reliable sources” for inside information have never been accurate and they [YTB] do not feel that their answers as written would be quoted completely or fairly…but rather changed to meet his own agenda. It was also decided that based on his trademark infringing and deliberately misleading “Zam Zuu” Facebook fan page (which by the way is finally gone thanks to Legal and a Cease and Desist) he could not be trusted to objectively report on any news or opinions about YTB in a fair and unbiased manner.

If that sounds harsh or stern, it is. I can’t tell you how many times something I’ve actually written here has been twisted to meet this individuals “agenda”. (After three years, I’d need more than my entire family’s fingers and toes to count.) The man is extremely gifted at taking words and comments and twisting them to mean something completely different.

So, since he can’t seem to find anyone to answer for him, he’ll do what he’s always done. Take all these rumors and beliefs, and publish them as questions as a public display of humiliation, and an “oh my, what’s wrong with YTB now?” While a handful of followers cheers him on thinking that nobody has answers concerning what they sadly believe as the truth.

Problem is, and I think you’ll clearly see this, these questions aren’t really questions. Better stated, they’re accusations that he’s asking the company to defend. That’s the critic’s way. Most of what you’ll see has no documentation or evidence to support the statements. Because its critics we’re dealing with, nobody needs supporting documentation.

Well, I’ll let you decide, because I got a copy of the questions.

For fun, I decided to answer as many as I could. Some as you’ll see couldn’t be answered because they don’t actually exist. Pay particular attention to the way each question is worded and you’ll quickly see why the home office thinks this guy is a joke. By the way; that’s how this should be consumed, with amusement, not anger or resentment. Part of our critics problem is that their anger consumes them and they can’t think logically or rationally. Seen it time and time again and it turns a complete fabrication into an emotional outburst that has no rhyme or reason.

So if you’re angry about this guy’s obsession over YTB, and his constant ridicule with every aspect of our company and our people, just move on to something else. This won’t help. If you understand like I do that this is nothing more than a fishing expedition and a desperate attempt for more drama to occupy his time and energy, by all means, read on!

Q: Over the last month, YTB has lost the CFO, the Master Distributor, the President and COO, and the SVP of Training and International Expansion. Is Bob Van Patten handling ALL of these tasks now?

I admire how much you think of Mr. VanPatten. From what I here, he is the single biggest reason you still have something to write about on your blog. He’s managed to keep YTB alive long after all of the critic’s predictions of impending doom. Bob VanPatten is the CEO of YTB International. As CEO he administrates, and puts the best people qualified in the positions needed. As you well know, the only position Mr. VanPatten has taken a close eye on is that of our former CFO. His background and experience dictates he is well suited for that position. (Not to mention our last two financial statements with him as CEO which have shown profits.)

In case you have not heard, Coach Tomer is our new Master Distributor. (I wrote about it here.) It’s a position he thrives in and is well suited for in my opinion. The field also gets to see much more of him now. I can’t think of a better “recruiter”.

Furthermore, as an outsider, I don’t expect you to know that the position of SVP of Training was furloughed several months back by the company. (We’ll address this “furlough” again for you a little further down.) The SVP position in question was vacant due to Mr. VanPatten making that choice, not the other way around.

Q: What has this done for the morale of the home office? The field?

For someone who trolls each and every Facebook page, blog, and forum that YTB has, you know exactly what it’s done. We adapt, we move on, and we move forward. We focus on things we can control and stay positive about. If you need proof here’s a thread from this past weekend I’m sure you saw. (It would make a great screen capture for your next blog post!)

Based on those comments, I’d say moral is mighty high right now, wouldn’t you? The same weekend Andy left too.

Q: YTB is continuing to lose about 100 RTA/TSO’s per day. What do you feel can be done to stop that?

Aside from getting a gag order prohibiting you and the handful of Zeolots from throwing mud and trash out there without any documentation or regard for the truth, I don’t know if there’s anything that can be done. I will say that much of your trash has been cleaned up thanks to the court system and because YTB is still around. People are starting to realize just how absurd some of your speculation and comments really are. As a result, it appears that a number of those “loses” are re-engaging in the company once again.

We call it F.E.A.R. which stands for False Evidence Appearing Real.

Q: I understand you are actively trying to sell the HQ building. What are the plans when it is sold? Where will YTB/Zam Zuu move? Certainly for a technology company, you don’t need that type of space. With Coach out of the Riverhouse now, are you planning to move to FL?

You understand? How do you “understand” without any documentation to support what you’re asking? Truth is, it’s nothing more than exploring some options.

So let’s turn this around and assume you’re right about the sale of the Home Office. My question for you would be – how will the sale of the home office advance your desire to see YTB killed off? A large influx of cash from this asset, along with the 56 acres the company also owns outright, would be a serious blow to someone like you who would like to see the company suffocate. It could be a real game changer. As you’ve said – as a technology company we don’t need this type of space and we could certainly use that “cash” to speed things up and moving in the right direction.

Think of it as “blog security”. ;-P

Q: By all measures, Zam Zuu seems like it was thrown together in a matter of days. Domains bought at the last minute for short durations. Lack of foresight in securing social networking URLS, etc. Do you feel Zam Zuu is in it for the long haul?

Read this article and then this article and note the dates they were published. Then help all of us undertand how you can measure that time span in “days”? I understand that a year consists of 365 “days”, but nobody uses “365 days” and “thrown together” in the same sentence without looking ridiculous.

You can also read this article and it will all come together for you very nicely. It should put to rest this absurd notion that the company didn’t think this through. And by the way, a company initially named “Cadabra” (as in “abracadabra”) was reluctantly changed at the last minute back in 1994. Do a little research on Amazon.com, and you’ll find what they did worked out just fine.

ZamZuu was a result of a years’ worth of testing, study, and a realization that we had another market shift. Kind of like travel was for us, and you saw what this company did with that. And regardless of any comments to the contrary, you did take notice. It scared the daylights out of you. You post and dribble about this company incessantly because of it.

Q: What sets Zam Zuu apart from any of the other online cash back “malls”? Even some of your stores are offering better cash back deals directly. IE: Last week, Best Buy had a 25% cash back program, while Zam Zuu was at 1.5%.

And just where is that 20% now?

Gone.

ZamZuu offers it’s Best Buy 1.5% all year long. (Sorry, that’s 365 “days” for you.) Furthermore, you’re assuming that by accessing BestBuy.com through our ZamZuu portal customers won’t have access to the special 20%? You’re assuming incorrectly if that’s the case. There is nothing that prohibits a ZamZuu customer from seeing or receiving that 20%.

Oh…and one other thing. I just checked my Best Buy e-mail folder, I can’t find this deal from them. Care to provide this “offer” just to keep things documented? Thanks!

Q: How do you explain to the field the incredible departure of directors and the change in the compensation plan? This plan was marketed as “copyrighted and on file with every Attorney General in the US and cannot ever be changed.” I think several departed directors might have a different opinion.

It’s no secret that YTB has assembled some of the best recruiters the industry has ever seen. They had a key role in YTB’s dramatic rise to the top and HUGE contributor to the insensate hammering by critics who fear recruiting and large sums of money like you. With the lawsuits, it became open season for other companies to recruit these leaders and bring them over to their teams. A huge feather in their cap snagging a YTB Director for sure. I can’t think of one Director who wasn’t bought off in some regard by money or position to make the switch.

While it’s sad to see some of these people go, I can’t blame them for taking some very attractive and lucrative offers. They’re tough to turn down when the offers grow in size and frequency.

Yes, the compensation plan has been increased and enhanced several times through my tenure with YTB. I would also speculate that you are correct that even the departed Directors would consider overrides on more products and higher commission splits on travel a plus. It’s never diminished in any form or fashion from the day I started.

Q: Can you comment or are you aware of the pending investigation by the Dept. of Justice?

Really? Which division? Antitrust? Civil Rights? Natural Resources? National Security? Or maybe Tax? Tell you what. When this “pending” turns into a “real” investigation and you have something more than just a rumor from one of your buds who heard it from another bud, we’ll discuss it then. For now, we’re limiting the questions and discussion to things that actually exist. Not some rumor or fantasy that gets you all excited and seething.

I know you’ve got finger and toes crossed that it’s true, but you also thought California was going to be your savior shutting YTB down, and look how that turned out.

Q: Are you finding it difficult to keep the momentum going? Since the settlement, the recruiting has been hemorrhaging.

Since the settlement, the hemorrhaging has actually stopped. You even wrote about it during the last quarterly report. Don’t revert back to something you admitted isn’t accurate. California was going to shut the company down, and when that didn’t happen people popped their heads out of their boom shelters and found that the scare you created was nothing more than a false alarm.

I’m happy to report that due to the launch of ZamZuu and the clarification from YTB Travel Network President Kim Sorensen, momentum isn’t a problem. By the time you find evidence of that in the quarterly reports, it may be too late for you to spin it another way however. (I certainly hope so.)

Q: Looking to the future (be that 5 days or 5 decades), how do you describe YTB? I know for years the focus has been on Travel and the mantra was “we’re a travel company”. I think that focus has changed. What kind of company will YTB be in the future?

Truth be told, you’ve never considered YTB a travel company, only a recruiting company. It doesn’t matter if it’s 5 days or 5 decades, your “thinking” is the only thing that won’t change in that regard. Nothing YTB ever does as a travel company is ever good enough for you. You’ve been harping about the Travel Weekly Power List for the last three years, but have never once even considered resolving your issue with them. Why not? What are you afraid of? Do you or don’t you want an answer?

Most likely, you don’t. Because it’s not about answers, it’s about questions. The more questions, the more chaos. The more chaos the more drama for you and your pals to stir up the pot.

Case in point, you were on the YTB Travel webcast last Sunday night and were given answers first hand from Kim. You heard about our plans and where we intend to be as a Host Agency. Do you expect us to answer any differently for you simply because of your inability to listen and actually learn like the rest of us?

Stop asking questions that you already have answers for. I know you don’t like the answers, but good grief, grow up and accept that we’re not going to change because you think we should. You’re not that important and there’s no amount of bitching that’s going to change that.

Q: Are you planning on hanging around?

Hanging isn’t word that resembles someone who is passionate and motivated. Too many people just “hang around” and that’s why we see the poor income disclosure statements that you like to slobber all over. So in that regard, no, I won’t hang around. I do however have a strong desire to continue to learn and grow with this company. I feel it’s an important aspect of success.

Q: With the cruise industry’s Wave Season in the beginning of the year; what was the rationale behind terminating 25% of YTB’s travel customer service people? I understand the economy and scaling back, but for a “travel company” to cut back on the travel staff just as the economy is picking up did not make sense to me.

Can you document for us which department was actually terminated? You found out the SVP of Training for YTB’s RPM program was part of that “termination”. RPM is not part of YTB’s travel customer service and neither were others I know at the home office.

You’ve got to do a better of collecting data and finding better sources. You’ve just proven you don’t actually know what department YTB decided to cut back on, so your question and accusation makes you look arrogant to some and foolish to others. (Not to worry, you still have a handful of faithful who like you, don’t care about facts, they just like to be part of the insults and slander.)

Q; How many RTAs/TSOs do you currently have? How many new Zam Zuu sites have been sold since the launch?

This qualifies as “insider information” and is not something a public company will disclose to anyone outside of the SEC filings.

Q; Do you have any comment on the income disclosures? Both the Marketing and Travel ones are showing that it costs more to be involved with each successive year, yet the average income declines each year as well.

I’m very happy to report that due to YTB Travel Networks commitment to training and upgrades, our new Travel Agent incomes have actually increased to a level that now exceeds the monthly service charges and fees as an average group. We owe much of that to the industry which help resolve and works with the industry instead of tearing it down. And we actually listen and then respond appropriately to the concerns and questions that the industry has. (Imagine that!) It’s especially gratifying to see this type of growth through a turbulent and difficult year that saw prices drastically reduced – thus cutting all of our commission by a substantial amount.

If you would like to compare 2008 numbers to 2009, you are welcome to do so. 2009 was a very trying and difficult year that saw many companies crumble and tens of thousands of jobs lost. To pin our decrease on our business model is narrow minded and one sided.

Word has it, and I’m certainly showing that 2010 could be a real game changer in that regard thanks to the hard work and enhancements now in place courtesy of the Home Office at YTB.

###

So there you go. I hope you enjoyed reading this as much as I enjoyed writing it. It’s been a long time since I had an opportunity to actually tear into somebody like this. (And after such a nice post like Wednesday…what a shame.)

I suspect there will be more pointed questions concerning my answers around the various blogs and forums. A lot of “Yeah butts” and “What about this” type stuff in an attempt to keep me engaged. Let me state for the record that I don’t expect them to consider my answers acceptable. Thing is, I didn’t answer the questions for them; I did it for those who comprehend and read accurately and correctly.

Like I said, it’s not about answers. It’s about drama, rumors, and doubt that these questions are asked. Most as you’ve seen had already been answered – several times.

I’m also sorry about the long post – but I wanted to get it over an done with in one shot. I get calls and e-mails all the time about his behavior and his accusations and there’s just not enough time to pick up after this guy. So I just let it go and you should too, especially after seeing how wrong he actually is.

Onward and upward on Monday and looking forward to getting back to our regularly scheduled programming.

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Do You ZamZuu?

One of the best aspects about being part of YTB are the friendships I’ve been able to form over the years. I’ve never been with a company with more quality leadership than with YTB.

One of those at the very top of my list is Andy Cauthen.

In my humble opinion, Andy missed his true calling. He should have been a comedian. He’s one of the funniest, most witty men I’ve ever met. I once asked him why he never pursued comedy as a carrier. He responded that he has a severe phobia about being in front of people, and his parents demanded that he get a “real job”. I can promise you, if he did pursue comedy, he’d be one of the highest paid comedians to date. Through our years of phone conversations and e-mail correspondence there have been far too many rolling on the floor laughing moments to mention.

Our witty exchanges over the years made our correspondence not only memorable but incredibly entertaining and I can’t think of another person I enjoyed communicated with more than Andy.

Andy’s other key attribute is his attention to detail. I’ve never seen anyone who’s more organized. He’s constantly taking notes and if he doesn’t have the information himself, he knows exactly where to access it. Up until this past year, YTB’s conventions were directed and organized exclusively by Andy. Coordinating something like YTB’s conventions requires a very special dedication and skill. He was perfectly suited with those traits and it wasn’t until last year’s Convention that Andy found someone “worthy” of being charged with its undertaking.

Most importantly for me however, Andy is a trusted friend. Because of our friendship, I’ve been privileged to gain insight on our company that not many people have. You see, like so many of you, Andy (as well as others at the Home Office) is a fan of this blog and our newsletter. Hundreds of new subscribers came into our database due to Andy’s recommendation, and because of his blessing, I’ve been able to gain insight from key people to ensure both timeliness and accuracy when writing about our company.

That’s why this article is bitter sweet for me. For reasons I’m not going to go into completely, I knew yesterday was inevitable. Andy is very much like our Directors in the sense that he had been flooded with offers and courted by other companies. Someone like Andy (or our Directors) is a HUGE feather in the cap of another company. They’re proven Leaders who get incredible offers from all sorts of companies. A longtime friend finally had an offer that he couldn’t pass up. It not only returns him to his home State, but it moves him closer to his family and his mother and father who are getting up there. I admire and respect that his family was a big part of his decision.

While our company has lost a great Leader, I couldn’t be happier for Andy personally. It’s a quality move for both him and his wonderful wife who’ve I’ve also come to know through the years. During both a private conversation with Andy, and during a company call yesterday afternoon there’s an inner peace I can feel in Andy that this is the right move for him and Kathy.

But don’t take my word for it. You’ll be able to see and judge for yourself on this week’s Saturday Morning Leadership Show.

One of Andy’s other attributes is honesty. I can’t think of a better way to get the truth than being able to see and hear Andy speak about his decision and this move from him personally.  From what I hear, Andy taped a very powerful and emotional show done yesterday afternoon with Scott Tomer. Andy is extremely concerned about how this move will be misconstrued and manipulated by those who get their panties bunched up over anything YTB does. Andy asked, and to Scott’s credit, he was granted an opportunity to speak with those he cares most about (the YTB field) so we have a true understanding about his choice and decision – not some emotional bantering that creates questions and uncertainty that I’m certain you’ll find elsewhere on the internet.

Andy’s well aware of the drama created by those who can’t seem to find anything better to do with their time. He also knows how skilled critics are at manipulating, misleading and twisting anything YTB does way out of proportion. Because both Andy and I have come to enjoy how easily distracted these critics can get, consuming their own valuable time, the decision was made to make this video a private communication between our Executives and the field. The only ones who matter or are worthy of getting any type of real answer.

So to the critics, yes, we know it’s probably going to annoy and upset you that your “demands” for answers won’t be heard or answered. All you’ll get is some Press Release to gnaw on that really won’t say much other than we’re sad to see Andy go, but wish him well in his future endeavors. Frankly – that’s about all you arrogant bunch of babies deserve. (Although, most have gained unethical and unauthorized access to just about every aspect of YTB to feed their uncontrolled obsession.)

To the YTB and ZamZuu field. You’ll have a chance to hear from Andy directly, and you have earned the respect of our former President and COO who admires and respects you. Log into you back office for a link to Andy’s message in the next day or two. You’ll hear directly from him concerning his decision. You can’t ask for much better than that.

In closing, I’d like to leave you with one of my favorite pieces Andy has ever done. He absolutely hates this video and claims it’s his goofy twin “Randy”. For me, it highlights a spirit that I think most of us forget all too often. One, enjoy what you do. There is nothing like turning your passion into a profession to make you happy. And two, don’t take yourself too seriously. If you can’t poke fun at yourself every once in a while, you’re not all the confident about who you are and what you do.

And Andy, like it or not, this is how I’ll always remember your tenure with us at YTB. ;-P

Love ya Buddy!

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Do You ZamZuu?

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.

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If you’re not part of our newsletter, you need to stick close this week. I know it’s been kind of slow – but things are starting to heat up a bit up in the Home Office and you need to be aware of the upgrades, advancements, and promotions that are going on – particularly this week. Those that plug in will be able to take advantage of the opportunities that present themselves. (Take a look at Friday’s post and the new Group Cruise Page to get a taste of what I’m talking about.)

Also released late Friday was YTB’s 10Q for the 3rd Quarter. What most investors want to see is how a company responds to it’s current conditions. I’m happy to report that YTB has responded with a small but important profit for the 3rd Quarter and an increase in net income by 26%. I want to advise you that what we saw from Friday’s upgrade and the Group Cruise page, and the the announcements coming up later this week are a direct result of available cash on hand that YTB invested back into the company in previous quarters. While critics were predicting bankruptcy, the Founders and Executives of YTB have been laying the foundation of what we will be seeing in the weeks and months to come.

What most people don’t realize (or refuse to acknowledge) is that YTB operates off of working capital. With the one exception of the Home Office building, YTB is completely debt free. What I’m also seeing more and more of in the Quarterly reports is more self reliance – meaning that what the company use to sub-contract out for is now being brought in house. This self reliance in turn controls expenses.

As a result the pieces are starting to come together. The years of making hard choices and investing millions back into the company is paying off. YTB posted a 3rd Quarter profit of $362K which is coming out of a very turbulent point in it’s history and very difficult economic times.

If you recall the previous quarter, YTB reported a $1.2 Million profit before they bit off $2.6 million in contract termination costs for the disposal of REZconnect, which resulted in one time loss for “discontinued operations”. Also gone is $1 million in legal expenses for California’s attempt to shut the company down with claims of being a gigantic pyramid scheme. $250K still remain of the $1 million settlement made in May which squashed the Attorney General’s attempt to end YTB’s existence.

While some have speculated that items such as these were insurmountable, the company continues to show that it’s able to answer the speculation in the black.

I can’t knock those that have left. It appeared that everyone and their mother was telling us that YTB’s days were numbered. It’s human nature to buy into the doom and gloom – especially when you’re bombarded with bias media and overly obsessed and obnoxious critics. Even “experts” like our auditors, didn’t have confidence that YTB could pull this out.

Yet, here we are three quarters through 2009. Yes there’s been a decrease in Travel and Travel Stores out there due to the harsh external conditions over the last two years. What has also decreased general and administrative expenses of $9.5 million to answer that and keep the the company solvent. That’s called corporate responsibility and when you show profits of any kind, it provides a very resounding answer to all the negative speculation.

If there’s one thing I’ve learned after all this time it’s this. You can’t talk your way in or out of anything – you have to do it. Talk is cheap, and while walking the walk may take longer to show results, it produces a much better result.

What we saw on Friday and will continue to see throughout this week are some very solid tools and answers on what the company intends to do to keep the company solvent and viable. YTB didn’t react – it responded. (And there’s a huge difference in that.) There have been some very significant and important changes at the top of the company that puts key people in roles in which they excel. Scott and Coach are recruiters – and are now out in the field doing more with the field. Bob Van Patten has taken over the day to day operations, and manages the income and expenses. (He also appears to be in complete control of that aspect based on YTB’s bottom line.)

Like last weeks Group Cruise page – now comes the value these changes produce for those of us in the field. We’ve seen plenty of it with RPM Trainings, the Sail-a-Thons, shopYTB, and site upgrades like YTB Golf.

Like I told you at the top of this post – stick close this week – there is more to come!

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I always knew this day would come. I had no idea when or how it would evolve, but I knew it was coming. J. Lloyd Tomer, or “Coach” has handed over his Chairman of the Board title to his son, Scott Tomer so he can take some time to enjoy his “4th Quarter”. Coach will do what is true to his heart and what he does best: Mentoring the sales force through Coach’s Corner while increasing his efforts to the Company’s philanthropic division, Passport to Giving.

That’s who Coach is. Those of use who know him, know how much he’s given back to the community. He’s been a teacher and mentor most of his life and it’s fitting that he moves into this phase of his life during his 4th Quarter. News of Coach handing over the reigns to his son Scott Tomer as Chairman of the Board and Robert Van Patten being names as CEO of YTB International came out today in an 8K filing.

After looking over some of the articles and news documented here, this move has been in the works for some time. We’ll review the changes and moves the last six months for you below to help you understand how well planned and thought out the new changes are. However, this has been something that was understood by Coach, Scott and Kim from the very beginning when YTB was founded back in February of 2001.

With Coach at the age of 75 and new book finally out, a Co-CEO who’s had 6 months to evaluate the company and it’s assets, the new Board not only in place, but with time under their belt so everyone could become acclimated, the timing was right to pull the trigger on this. The new changes also move key personnel into positions and talents they are best suited for.

From what I know of all the executives involved in the new changes announced today, virtually nothing about YTB as we know as TSO’s or Reps here in the field will change. Scott, Coach and Kim will still be around doing what they do best as Reps. (In fact, Coach will still be here in Atlanta in early November.) However, with YTB being publicly traded, YTB International now has a Chief Executive Officer and President in Robert Van Patten, who not only understands Wall Street, but from what I know, thrives in this atmosphere.

Back in April I wrote about Robert Van Patten, and actually had a chance to briefly thank him for all he’s done for the company while at this years Convention. Mr. Van Patten brings over 25 years of senior management experience to YTBI and was previously President of IMC Agribusiness, an $800 million dollar division of IMC Global. IMC was also listed on the New York Stock Exchange. The company now has someone with the experience and temperament to deal the day to day issues of running a publicly traded company. While few have laid claims to the demise of YTB, with predictions of bankruptcy, we owe a tremendous amount of thanks and gratitude to Scott and Coach for stepping aside to allow Mr. Van Patten to make the hard choices and decisions he has over the last 6 months, but also owe the same to Mr. Van Patten for insight to make these difficult choices.

New Board Members Thomas Baker, Jack Humes, and Patricia Williams who were appointed the YTB’s Board of Directors in June also have vast experience in finance, accounting, entrepreneurial business development, and legal services to corporations and governmental bodies. Their new insight and experience brought to our Board also played a key role in the changes made to YTB.

To Coach, Scott and Kim’s credit – They not only understood that Mr. Van Patten was best suited for this new role – they allowed him to execute the changes necessary.

Make no mistake however. The move announced today by YTB and it’s Board we’re carefully thought out and planned by Coach, Scott, and Kim. If they didn’t believe this was the right move for the field and the company as whole, none of this would have happened. They’re Reps at heart. After a fight and successful settlement in place in California which not enabled YTB to continue doing business in the state, but kept our compensation plan in tact, there’s sufficient prove the Founders have held true to their heart.

By handing over the reigns to Mr. Van Patten to deal with the day to day operations of the company as CEO and President of YTB International, Scott moves over as CEO of YTB Marketing, and Coach is completely freed up to do what he loves – and that’s being with the field.

Key people in key positions – doing what they do best. What a concept!

It will be nice to have both Coach and Scott back here in the field. Coach will not only be doing a book tour with his new book “The Fourth Quarter”, but also has plans for 12 Day Tour to Israel and Jordan in April of 2010. (Check your Travel Portal for more details.)

All in all, it’s a great move for YTB, especially with the way this all this developed. This isn’t some band aid or hasty move that didn’t have input or thought from everyone involved. Not with the Board of Directors YTB now has. Gone are the “good ol’ boys” and “buddy system” and in with some very promising and talented executives. 

Congratulations to Scott, Kim and especially Coach for making this choice, and thank you for your ability to let go. It shows this Rep and TSO you really do care and have my best interest at heart.

And Coach – enjoy your 4th Quarter. ;-P

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The week before the Convention Scott Tomer joined our team on a conference call. I remember Scott telling the group that he couldn’t put his finger on the exact moment or particular event that shifted the momentum back to YTB. He (like me) could sense a change, a shift in direction after all the baseless attacks and bantering going on concerning our company. Back in April, YTB announced Robert Van Patten as their new Co-CEO. Mr. Van Patten brought 25 years of senior management experience to the company and had been charged to oversee many of the administrative, accounting and corporate governance issues of the company.

Few people realize that YTB and Mr. Van Patten agreed to terms the very day word came of the tentative settlement of the civil lawsuit filed in California. As I thought about today’s topic I remembered both the e-mail that came in about the tentative settlement, and the conference call that followed with news of both the pending settlement and Mr. Van Patten’s appointment as Co-CEO.

One of Van Pattens first orders of business was an internal audit and review of YTB International. We’ve seen many changes in the company since Van Pattens arrival. If you looked at the Q2 financials that were released a week ago, you’ll see Roberts fingerprints all through that document with cutbacks, cost cutting, even the disposal of nonperforming subsidiaries. (A traditional Brick and Mortar model.)

I can also assure you that Van Patten had a hand in the newly appointed Board Members who add a tremendous amount of business savvy to our Board of Directors. Our new Board was introduced to everyone at the Convention and I had an opportunity to catch up with Robert and our CFO John Clagg after Friday afternoons general session to thank him for all the hard work and difficult choices he’s made to ensure that YTB comes out the other side of the economic slump. When you combine the economy with the bizarre accusations and constant obsession of our critics on the internet, that’s not an easy task.

Day before yesterday, I got word from Mr. Van Patten regarding the company appointment of Damian Jones as Director of Corporate Affairs. Damian starts his new roll today at the home office, however, he’s no stranger to the company. I met Damian back in February and learned that he was instrumental in the development of YTB Golf and the creation of this viable niche site for our Travel Store Owners who love the game. Damian spent several years with Perry Golf, a premier golf destination travel company we offer on the site. Damian was also instrumental in the introduction of Proam Golf for golf equipment, and Worldwide Golf Vacations for golf resorts and spas now offered on our site. His background also includes management of construction projects as well as business development and legal affairs. (He’s a graduate of Louisiana State University with a degree in architecture and he received his law degree from Tulane University.)

According to Robert Van Patten:

In the role of Director of Corporate Affairs, Damian will first develop a new Company Business Plan, incorporating the franchise concept the Company is moving towards.  Also, he will work with staff to develop a communication protocol so that all home office personnel are aware of new and changing programs that take place in the field.

Both of these issues were the top two concerns of key management personnel during the internal audit review that took place earlier this year. After these assignments are well underway and/or completed, Damian will assist me in managing the legal issues of the Company, including the registration of the franchise model that will be rolled out in all states at the start of 2010.

I wrote back in April about the Master Mind Group that was highlighted in the classic book “Think and Grow Rich”. The idea of the Master Mind is to tap into the expertise of others in order to help the overall good of the group. (Or in this case company.)

Since the implementation of the 2020 Vision Group that was formed from the idea in the book, the Master Mind concept been one of the most significant changes in the history of YTB. Damian’s appointment as Director of Corporate Affairs is yet another example of YTB’s commitment to put the ball in the hands of play makers who can effect change and make things happen. He not only brings experience and knowledge to the role, but a passion I’ve witnessed personally. In my opinion, (among others I’ve talked to over the last few days) this is a perfect fit.

Please welcome Damian to our staff and wish him much success in this new opportunity with YTB International.

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YTB’s Quarterly financial report came out on Friday. During this years Convention, Scott Tomer announced a Q2 profit on earnings before income taxes. He was correct, as YTB did post a $1.2 million net income from continuing operations. What he may or may not have known until after the Convention however was a $2.6 million in contract termination costs for the disposal of REZconnect, which resulted in a “discontinued operations” line item resulting in a loss of $2.8 million total dropping the $1.2 million profit into a $1.5 million loss overall for the quarter. The current portion of the $2.6 million liability balance is $608,000 and is required to be shown in our SEC filing based on future commitments.

REZconnect has been somewhat of a sore spot in years past. Micheal Brent had been selling off shares like it was candy. Rumors surrounding the subsidiary also pointed to a net loss in revenue for the entire company for years. This was the first time the subsidiary had been broken out to show it’s contribution. REZconnect operations reported net revenues of $869,000 and a loss from operations of $463,000. The Board of Directors made a strategic decision about the REZconnect business model, which they stated was serving primarily brick and mortar travel agencies, and felt it was not compatible with YTB’s current and future plans.

“As a result, the Company expects to realize cash savings of $2.4 million over the next 5.5 years based upon the cash payments to be made under the employment severance agreement versus the cash payments that would have been required under the original employment contracts.  Thus, while the Company has recognized significant expenses in the current period, the cash savings in the coming 5.5 years will serve to contribute a significant savings in terms of liquidity, helping to strengthen the Company’s position.”

In this current economic climate companies need to cut dead wood. While I have not seen, nor do I really care to see what others will be saying about YTB’s financial condition, I’m willing to bet you that they’ll be pointing to the huge loss in revenue over the last year do to the pyramid crumbling. While they will most certainly be pointing YTB’s “business model” as the cause of the loss in revenue, you should take a look at other company revenues to compare what they’re doing in this current economic climate. Royal Caribbean’s revenue (and profit margins) have declined significantly, resulting from large profits plummeting to significant losses over the last four quarters.

People are not spending in this current economic climate. Period.

It should be noted that the hemorrhaging of our RTA’s has slowed significantly in part due to the California settlement. While there was an enormous amount of speculation over California winning it’s argument of a gigantic pyramid scheme and successfully shutting the company down, the truth (as always) finally came to light. In addition, the “ungainly monster of 39 pages and 133 paragraphs” that was submitted as a class action law suit was also thrown out by the courts. Current RTA’s are just now starting to realize what I’ve known all along.

If you’d like to read my analysis of what our critics actually know about MLM and YTB in general, I invite you to read my e-book entitled “What the Critics Know About YTB“.

To further illustrate my point, I did take note of a couple of things in the notes section that critics were speculating (as they always do) about YTB’s financial condition and what the company would and would not be able to do.

Once Scott mentioned “profits from continued operations” our second payment for the California settlement was brought up. Some wondered if we happened to skip that payment in order to show profits. It should be pointed out that it was in fact paid and half of the settlement money is behind the company. Payment of $250,000 was paid as scheduled before the June 30 quarter ending.

In March, YTB’s credit card processor increased it’s reserve requirements, resulting in a $2.7 million balance to be held in reserve. While it was speculated that YTB would not be able to acquire the funds necessary to obtain the balance, that request was also achieved during this quarter. This too is now behind the company.

One of the funniest twists found in the financial statement that I doubt you will find anywhere but here is the saga of the proposed Conference Center that was envisioned by YTB to be built on land the company currently owns. Back in November, YTB sold a 9.9 acre out parcel of the 59 acres it owns to an undisclosed buyer. In late July, we found out through the media and the blogs that the buyer plans to build a Holiday Inn Express and a Country Kitchen gas station on the land that has been purchased. When news came out that the Wood River City Council voted to approve a funding agreement with Aventurs Development LLC. nobody bothered to check if the land in question had in fact been paid for.

“In addition to other consideration, the Company received a $500,000 promissory note dated November 24, 2008 as proceeds for the sale of land situated in Madison County, Illinois, which was non-interest bearing so long as there was no event of default thereunder.  Principal and other amounts under the note, collateralized by the related land sold, was due and payable on March 24, 2009.  On April 22, 2009, the Company sent a notice of default under the promissory note and mortgage to the purchaser because the purchaser failed to satisfy all obligations under the note within 120 days.  The notice required the purchaser to cure such non-payment within five business days of receipt of the notice, as required by the mortgage.  On May 6, 2009, the Company filed a complaint for foreclosure in Madison County, Illinois Circuit Court under the terms of the promissory note and mortgage because the purchaser failed to cure the non-payment within the required five business days.  On June 2, 2009, a notice of foreclosure was recorded against the land.”

Of course, like everything else that backfires on our critics for drawing conclusions based on what he reads and hears on the internet without checking actual facts, mums going to be the word on this. Instead, they’ll continue to focus on yours truly and the gross error I made when I didn’t check my source. As I’ve learned over the weekend, thanks to many comments, e-mails, and phone calls, it’s much better to surrender defeat in cases such as this in order to move on and get back on track.

Lastly, it should be noted that the company has made significant advances in curbing it’s spending and keeping an eye on the bottom line. Those of us who were at this years Convention saw evidence of that. With the current details listed in the notes section of the quarterly report just filed, we see more documentation of YTB doing what it needs to do in order to survive. Many of the hard choices made in prior months have proven to be significant, and while time will tell if the elimination of REZconnect will help YTB’s bottom line, the future looks to be significantly better than a single number found at the bottom our financial report.

A major key in YTB’s survival and prominence in the industry is educating those who may be looking for opportunities as the country starts to come out of the current economic condition. With YTB’s new tools and upgrades just announced at Convention, it may prove to be significant in showing the company’s strength instead of weakness.

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