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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I had something else ready to post this morning, but found a fairy tale that was just WAY to funny that I needed to share with you. It never ceases to amaze me how low some people will go to bend and twist documentation in an effort to pitch their own perceptions and limiting beliefs.

It’s no secret that there is a segment of our society that think rich people are greedy. Because this segment of society has never actually known anyone that thinks in terms of “net worth” instead of some “hourly wage”, this same segment also assumes that rich people got their money through unethical and dirty business practices. It’s one of those social memes I wrote about some time ago.

Now, take the myths and social memes surrounding rich people and combine it with Network Marketing and you’ve got yourself one heck of a double whammy when it comes to anger, bitterness, and resentment.

Case in point, our very own J. Lloyd Tomer.

While Coach is certainly loved and admired through the ranks of YTB members, there is a segment of society who spend an exorbitant amount of time attempting to knock this man off his perch because he’s obtained his wealth through Direct Sales or Network Marketing. For those of you who don’t know his story, you can Google “J. Lloyd Tomer, AL Williams” to find his bio. Here is one on the first pages that I found on Portfolio.com. (emphasis mine)

J. Lloyd Tomer, Chairman of the Board of Directors, has been a Director of YTB since December 2004. He is the father of our Chief Executive Officer, J. Scott Tomer, and is a seasoned veteran of direct sales and marketing. After spending thirteen years in the ministry, he became an agent of the A. L. Williams Company (now known as Primerica Financial Services (“Primerica”) in January 1981. He achieved the level of Senior National Sales Director in 1985 and maintained that position through 2001. While at A. L. Williams he built a successful sales organization numbering in the thousands, whose combined life insurance sales was measured in the billions, with assets under management of $750 million. He sold his agency in Primerica in January 2002. Thereafter, Mr. Lloyd J. Tomer devoted his marketing expertise to YourTravelBiz.com, Inc. He attended Anderson College in Anderson, Indiana.

Here’s a guy who build an immensely successful organization with sales in the billions and assets in the millions through Direct Sales from 1981 through 2002 thanks to capturing the dream of Art Williams back in the early 80’s. Even after the sale of the business to his son Frank in 2002, the assets and money generated from this organization were used to help fund the start of YTB in the early years.

Fast forward to today, and we find a select few are upset with Coach, an outsider, for infiltrating their business segment with a bunch of Travel Agent wannabes’. (Or so they claim.) What we end up with are obscure twists on how this man attained his wealth, lived his life, and given back to the community.

I learned a long time ago from Harv Ecker that part of the rewards of being rich is the ability to donate money or assets to organizations and associations that are important to you. When you think about it, what makes a bigger impact – $10 in the offering plate or $10 million in stock options to pay off a mortgage? Obviously creating wealth can and does have a bigger impact for those who desire to make a difference in people’s lives.

Those of you who have met Coach, spent time with him, or listened to his leadership call’s: Would it surprise you that new documentation has come to light of Coach’s generosity?

In a link provided just this morning to a court document, it has been revealed that Coach and his wife Chris donated a parcel of property to Midwest Community Church in 1998 so that the Pastor and his family could have a parsonage (a home) in which the Rev. Casey, his wife, his son age 16, and daughter age 13 could live. The property was bought by Coach in 1995, and when Coach was elected as Trustee of the Church in 1997 he donated 100% of the use of this parcel to the church.

According to the document revealed we also found the condition of the property.

Initially the yard needed to be cleaned up. All of the lights outside the house had been broken. Inside the house there were numerous electrical problems that violated the electrical code and which needed to be corrected. The house had two furnaces. One furnace to heat each side of the house. A new natural gas furnace had been brought in to heat one side of the house. It was anticipated that natural gas would soon become available in this neighborhood. However, that did not happen.

The document also reveals that at the time the land was donated, Coach’s desire was to assist in the development and growth of Church’s religious organization. Pursuant to the agreement, this parcel could be used for any purpose the Church deemed appropriate, including but not limited to a parsonage, youth retreats, church administration, or marital retreats. In return, the Church was responsible for all expenses, repairs and maintenance costs, and was to maintain adequate insurance on this property, naming the Tomer’s as a loss payee.

Because I can actually read and comprehend the documentation provided, I can deduct that Coach was enjoying a tremendous amount of success and creating substantial wealth which enabled him to purchase the property in the first place. I can also conclude that the church obviously respected his financial position by appointing him as trustee to the church. I can also assume that Coach believes in sharing his wealth and supports religious organization with very generous donations to a number of church organizations.

Not a bad way to live your life if you ask me.

Now I know this is going to upset some of you, but I need to remind you that we’re not dealing with individuals who are playing with a full deck here. (Not the sharpest tools in the shed, if you know what I mean.) I do however think it’s important to reveal how desperate and delusional some people are when it comes to mud slinging and slandering individuals who they’re obviously jealous of. They need to peck and poke in an attempt to bring others down with an obvious twist on what actually happened.

I’d advise you that you put down any drinks or food at this point because it may end up on your computer screen. Here’s the introduction of the post I found this morning concerning what happened:

Once upon a time in a land far away, there lived a man in a ramshackle house. The house was in such bad condition, that the local authorities would not issue occupancy permits. When the time came to pay the tax man, the man in the ramshackle house could not afford to pay the property taxes.

Destitute and without too many options at his disposal, he turned to God and the Church. Knowing that Church property was exempt from taxes, he “donated” this ramshackle property to his Church for only a year who decided to worship on the property and to fix up the house for their minister and his family to occupy as a parsonage.

While I can’t disagree that this donation was a “tax deduction” for Coach and Chris, (donated in December of 1997) but to claim that Coach was destitute at this time with an AL Williams business generating millions, and an elected Trustee of the church is a pile of manure that only critics can step in. What makes it comical for me is the way this guy capitalizes “TRUTH” at the end of the post which links and documents what we’ve uncovered here.

The truth is, this “expert” doesn’t expect people to actually read the document he’s provided because he’s bend out of shape as the “be-all-and-end-all” when it comes to YTB. (Arrogant and cocky I know, but that’s what he thinks of himself.) What it turns out to be is yet another documented example of the lies, deceit, and misrepresentations that are plastered all over the internet to pitch Coach as some sort of scammer. If you look at the URL that links to the court document that clearly recommend that Madison County Parcel be exempt from real estate taxation in 1998 it’s linked by hims as http://www.singleparenttravel.net/wp-content/uploads/2009/08/Tomer-Church-Scam.pdf.

I might not be the best speller in the world and I’ve been known to make a mistake or two over the years. But at least I can read and comprehend what’s truth and what’s pure spin. And how are the critics going to answer to this blatant attempt to spin and slander? My guess is that what we’re going to find as a rebuttal is a dog’s tail isn’t spelled “tale” in an attempt to take the focus off them and back on our Founder in YTB and me.

Think it’s gonna work?

Me neither, but the faceless, nameless cowards who support this jerk as some type of crusader against the evil YTB will be jumping for joy that they’ve found more documentation and truth, when it’s obvious to me, their simply chasing their own “tales”.

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According to YTB’s 10Q filing with the SEC, the office of the Illinois Attorney General has agreed to extend the date by which YTB must respond the Illinois complaint to this Wednesday, August 26, 2009. If you’re not aware, or forgotten due to last months Convention and the improvements YTB is currently enjoying we wanted to prepare you that another chapter is about to revealed for discussion of both pro and con on blogs, forums and message boards all over the internet. (We are talking about YTB after all!)

Before the ink was able to dry on the California Settlement on May 14th, Lisa Madigan, the Illinois Attorney General, filed their civil complaint against YTB and the Founders the same day. Many of the claims and allegations were a mirror image of what was found in the California complaint. Although Illinois had opened an ongoing “investigation” that started just days after the California complaint filed last August, 2008, Illinois apparently chose a “wait and see” attitude. (Possibly in the hope that California would be successful in shutting YTB down.)

YTB management obviously can’t discuss legal matters publicly or with the field. However the two words we hear over and over from the Founders and Executives is “very optimistic”. We would agree with this optimism based on the successful settlement agreement in California, and the Illinois class action that has already been thrown out. The allegations brought against the company are based in fear, myths, and deception and one needs to keep in mind that the foundation of court rulings and decisions are based on fact and documented law.

We’re not going to bore you, (or for that matter insult or taint your intelligence) with the gross misrepresentations and allegations made against YTB. Other than claims that YTB continues to promote Royal Caribbean, NCL and IATA as a benefit of joining – the premise of the entire complaint is based on the belief that one must to “pay to play” for the opportunity to recruit others into the YTB business. (The “gigantic pyramid scheme” mantra.)

We possibly need to elaborate for you, like YTB will this week with the courts that the YTB model, as it has always been from day one, does not require payment for the opportunity to recruit others. Nor does YTB “pay” someone simply to recruit.

The $449.95 provides a travel website and $49.95 a month provides the continued maintenance of a travel website in order to sell travel. (Travel sales generated from these travel websites were documented at $424 million in 2008) Payments to the field as either an Associate or Website Seller (Rep) are dependent on the travel site (or product) being sold and maintained. Most Host Agencies such as Uniglobe, Travel Planners International, Nexion, MTravel, Expedia Cruise ShipCenters, and Dugan’s Travels are also dependent on the sale of sites being sold to others (in order to therefore generate travel sales) and all charge a startup fee and monthly maintenance fee for website hosting and maintenance of a booking engine, support, training, licensing, and/or E&O insurance for their product or service.

As we’ve found so many times before, all the focus and attention is pinned directly on the Network Marketing aspect of the company while all rules, customs, and normal business practices are thrown out the window. Instead of YTB keeping the money generated from payments of $449.95 and $49.95 a month as other hosts do, YTB pays field representatives for sales they produce and maintain in their own organization. Limiting beliefs are compounded by critics, Attorney Generals, and former Reps who failed, based on the fear that everyone does not have the same opportunity to generate income in this fashion. There are additional phobias based on the MLM model running out of prospects, instead of realizing that it takes personal responsibility, action and effort to build an organization. To compound the emotion of these fears and phobias, the model in some cases does generate millions of dollars of income for common everyday individuals who go to work, promote and build a business of other websites under them. (As documented in both the 2007 and 2008 Rep Income Disclosure Statements.)

The cost for such an opportunity? Not a single penny.

Avon, Mary Kay, PrePaid Legal, NuSkin, EcoQuest, Amway, Primerica, Fuller Brush, and HerbaLife have all built their business via the Network Marketing and Direct Sales model for multiple decades, generating billions, no…TRILLIONS in income. However, fears concerning the window of opportunity for YTB will soon end for someone at the bottom of the pyramid. Because of this unfounded and undocumented belief, there are those who feel its up to them to step in and protect others from something that has never – EVER happened.

Is there any question that YTB believes it has meritorious defenses to the claims and intends to vigorously defend its case based on fact, not perception?

Regardless of your keen understanding and intelligence to see YTB for what it truly is, YTB should be able to successfully defend the misrepresentation and limiting beliefs made in the complaint filed by the Illinois Attorney General. Unlike the many blogs, forums, and bizarre emotional outbursts we see concerning the YTB company, it’s Founders, and the people involved, on the internet – the legal system instead must favor on the side of actual documentation and facts, not perception.

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This has been one of the wackiest weeks I’ve seen in some time. I have been rather quiet about spending time with family this week during Spring Break, and have no idea why all this news needs to hit during my vacation.

Late Monday afternoon, I along with hundreds of Directors and Coach’s Corner Members received word that a “tentative settlement” had been reached concerning the California Litigation. News spread very quickly over the internet and the boards that a settlement was pending and the litigation would soon be over.

Critics of this news have been extremely busy trying to distract everyone with rumors of Directors leaving, (2 confirmed) and just this morning I found out that the SEC will most likely get a number of complaints that someone named “Travel Pro” was busy buying up shares of YTBLA.OB based on insider information. (I knew there was something I should have been doing instead of writing!)

The big stink currently is that the Attorney Generals office laid claim there is was no settlement, and would never allow YTB to continue in what it claims is a “gigantic pyramid scheme”.

While critics are holding out hope that YTB will now be punished by leaking news about the “tentative settlement” they had no idea that papers were filed in Superior Court on April 8th at 8:30AM, that California and YTB International have reached a tentative agreement to settle pending litigation by none other than James M. Toma, Deputy Attorney General. The Attorney General’s office asked the court to postpone the trial date to allow more time for the parties to work out final details of an agreement. The state has scheduled a number of depositions for April which would be costly to the state and would prove unnecessary if a final agreement is made.

My hat’s off to Nadine Goodwin of Travel Weekly who decided to go to the source to get credible information via the courts, the AG’s office and YTB Attorney’s instead of just regurgitating what she has read by those who do nothing more that write in order to get attention and spew slanted and unconfirmed stories.

As much as I’d love to slam Jerry Brown right now, I’ll bite my tongue. (As much as possible anyway.) How anyone could say one thing and his office do another really burns me. To now find out that a tentative settlement statement has actually been filed with the courts, by the AG’s office no less, is a point of concern that I’ll save for a later date.

Regardless, the papers have been filed with the courts via Mr. James Toma, and the tentative settlement is still in the works. (Although a little longer than originally anticipated.)

A very important lesson for our everyone involved right now. (Including me by the way.)

Don’t count your chickens until they’ve been hatched.

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It’s been a lot of fun to watch all the activity over the last 36 hours. The disbelief of our critics at first was absolutely priceless. None of them had a clue that there was any type of mediation going on between YTB and the Attorney Generals office. No need to even think there would be, everyone of them were convinced that this case would go all the way to trial. Denial was the first reaction of many as if it were some cruel joke that YTB was playing on everyone.

Next came the demands for proof and I’m quite certain the by 9:00am California time the AG switch boards and servers were flooded with both calls and e-mails with pleas of “Say it aint so!” After all, very reliable and dependable sources had no idea that mediation between the AG office and YTB was even going on. (A point that shows me just how clueless our critics really are.)

Then came the scrambling and excuses to try to deflect attention from the upcoming settlement and accusations of, get this, “insider trading”. Last I checked, the type of insider trading (there are two variations) critics have brought up was that news of the tentative settlement was only given to Directors and Coach’s Corner Members (well after the closing bell)…who proceeded to disperse this information all over the internet Monday night, so by the time the bell rang Tuesday morning, anyone who had an interest in YTB or YTBLA had news of the tentative agreement within a few clicks form both insiders and outsiders. Kind of difficult for anyone to prove insider knowledge when the entire industry had word something was up. Regardless, an 8K was filed with the SEC and posted by the close of business yesterday. I would assume that some are a bit upset that it took them so long to get out of the denial phase and into action mode when they saw the stock price jump more than 50% in one day.

My how creative critics can be when backed into a corner.

And finally, in an interesting twist, Jerry Brown’s office felt the need to tell everyone that a settlement was not actually finalized…yet. It was my understanding that’s what the word tentative meant. Before finding this little nugget to throw back at YTB, many from the opposite side of the fence realized the meaning as well and used the word “tentative” to defend any acknowledgment that the settlement was any good. All sorts of questions came up to defend themselves from the egg on their face for not having any idea that a settlement was even in the works. Some even speculated that the settlement would be a penny short of $25 million and we’d claim that as a victory. Funny how now that the AG office has spoken, most likely to calm all the attention it received during the day thanks to these same overly zealous critics; they have this new hope that things will go back to the way they were and YTB will be pounded into oblivion, never to be heard from again.

I don’t think our critics have been able to deduct, or simply want to ignore, that a hearing for the case is scheduled for next Tuesday April 14th in Los Angeles. In my update yesterday afternoon, I did inform everyone that the process would take about 5 business days to complete and then we can possibly have everything “finalized”. Since this came from the AG office, I would assume that everyone involved on both sides here will take this as “fact” since their article documented the hearing and not YTB.

So Tuesday, not September 21st, will be the day that the courts will hear about the tentative agreement and make a determination if California actually knows what they’re talking about.

That’s what our legal system is designed to do, and from what I’m able to gather, it was the legal system and the participants involved that got YTB to this point so quickly. (At least far better than September!) It’s out of YTB’s hands and Jerry’s hands right now. It’s up to the legal system, and honestly, with what I know about our model, I really like our chances. An opportunity to take all the emotion out of the equation and work through the process logically. Something critics have a hard time doing or even comprehending, and if nothing else I’m extremely grateful we have a chance to have things viewed and heard by people that have some wits about them.

I’ve grown extremely tired or the retoric and spin from the critics and it’s my hope (although a HUGE long shot) that this will put the entire matter to rest.

Always the optomist, aint I? ;-P

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UPDATE: I have been informed that the Press Release that was scheduled to be released has been postponed until all documentation has been filed with the courts and settlement is final. From my understanding, this should take 5 business days. An 8-K was filed today with YTB’s statement that a tentative agreement has been reached. While critics are still somewhat shell shocked that something like this was even a possibility, the Trade Publications are picking up and running with this story. (I assume after verifying with all parties?)

After all, this is YTB and it’s bound to be newsworthy.

You may now exhale.

It was a day I’ll always remember, it was August, and the day before the National Convention was about to open in St. Louis when news spread of a $25 million lawsuit filed by the California Attorney General with claims that YTB was nothing more that a “gigantic pyramid scheme”. The timing of the release of this suit was impeccable and the strategy in releasing it during the National Convention was meant to deflate the ranks then and there, at the National Convention and an attempt squash the big bad YTB.

Over the last 7 months, we’ve heard all kinds of bogus claims that everyone and their mother wanted in on the action, every state in the Union would be joining in, and a couple of Civil Suits were filed in Illinois to the tune of $100 million each by a number of ambulance chasers. News also came at the beginning of the year that a trial date was set for September 21st, and there would be no way that YTB could last until that date, only to fold long before it ever came to trial.

Just last week, I saw a post from one of the more outspoken critics who laid claim that:

“suffice to say I have it on good authority that there is no impending arbitration or settlement.

YTB has no money for any sizable fine. Your ignorance of the CA SOT laws is evident. The RTAs would never need to pay a monthly fee to California, and quite likely as a result of this, they will get back all of their fees paid to YTB because YTB assured them that they were legally operating.”

The guy simply likes to look like he has all the authority in the world. I had official word that YTB would be in California the very next day, and his post was further clarification that this dolt was simply running his mouth off…again. The guy is a sucker for any rumor that’s started, and has no idea who’s an authority and who isn’t. (Though I hear he likes to play one on his blog.)

Fact is that “official word” right now is the legal counsel of YTB and CEO Scott Tomer are pleased to announce that we have a tentative settlement agreement with the State of California as of today, Monday, April 6, 2009.

YTB will continue to focus on its objectives and move forward with it’s Reps and RTA’s in building a great company.

So much for the Jerry Browns intent to shut YTB down completely. (Although some didn’t understand his authority was limited to California.) In a way, this is very good news for our critics who couldn’t wait until the September because now they don’t have to wait to find out that the suit that they had so much faith in didn’t have the teeth they thought it did. It was very clear to me that the AG didn’t have a clue when a week ago when they were interviewed in a FOX News piece when Deputy Attorney General James Tomas said:

“YTB is an endless chain scheme…a program where someone pays in order to have a chance to make money through the recruitment of additional people.”

Problem with it is, I’ve never paid a dime for a “chance to recruit other people”. I paid for a booking engine so I could sell travel.

I handed my CPA two 1009’s last week, one from YourTravelBiz.com, which I am paid for selling Booking Engines. (Anyone of you could do the same, free of charge.) Another was from YTB Travel Network, which I did pay for a web site to enable me to sell travel. The two separate 1099’s have been that way ever since I’ve been with YTB. (2005) One I paid for, just like I would with any other Host Agency of like services.

The other hasn’t cost me a dime, nor do I make a dime unless I sell a booking engine.

It’s extremely difficult, if not utterly impossible to loose money when there is no money exchanged for a chance to recruit other poeple.

Details of the settlement are still coming in a I type, and an official Press Release will be issued on Tuesday about the settlement. Needless to say, the mood at the Home Office is very upbeat and we can now focus on taking back what we lost during the time when these false and misleading accusations were thrown up against the company.

As for the critics. I’d venture to say they’ll come up with a gazillion questions, reasons why it’s a mistake, question the justice system, and how YTB couldn’t afford a settlement because they have no money. (Or so they think.)

I’ve been waiting seven long months to say this, and those of you who know me best know what I’m about to say to our critics who have been just as obnoxious and condescending as anyone could possibly be, because they were certain that my days with YTB were about to come to an end.

I know it’s unprofessional, and I know I should take that high road on this, but whey their road is so slimy and low to begin with, this IS a step up.

Na – Nah – Na – Nahh – Naahhh – Naahhhhhhh!

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YTB’s Annual Report (YTBLA.OB) came out last week with a 15% increase in total revenue for the year of $162.5 million, and an increase of more than $7 million travel commissions. This during a very difficult year not only for the company, but the entire economy. If you keep up with financial data and the Annual Reports of late, you would be hard pressed to find a company that is thriving in the current economic climate. Taking the time to look around the industry right now, (and this is just the Travel Industry) you find a net loss of $121 million for Avis/Budget, even worse for Hertz who lost $1.2 billion in Q4, the MGM Mirage lost $1.15 billion, Expedia, the third largest Agency in the country took a hit for $2.76 billion, and Joystar who is now bankrupt showed up with $535 dollars in cash.

About the only good news out there for Agencies right now is the life vest thrown their way by the new Administration with $15 billion in stimulus money in the hope that this will be enough to keep those still around alive. Unfortunately it was to little too late for Joystar, and Cruise Value Centers, while a report late last weekend documented that Liberty Travel closed 4 of it’s 7 Maryland locations, (closing 31 Liberty locations in all) Safe Harbors Travel Agency was also hit with layoffs, and AAA of the Mid-Atlantic is reducing its staff’s hours.

So with all this doom and gloom surrounding how tough things are right now, anybody want to take a stab at the reason for YTB’s $4.5 million loss?

Because it’s MLM.

I kid you not, and apparently there are people who are very serious that it’s the “flawed business model” that has placed YTB in a very vast and growing list of companies that are attempting to survive these very troubling economic times. (And some wonder why I don’t get wrapped up in all the fuss any longer.) When you’ve been reading the garbage on the internet about YTB for as long as I have, you develop an immunity to the venom thrown your way. The negative speculation never ends up the way critics predict, and I don’t see any reason why I should start now with the type of track record they have. Before YTB’s 2007 banner financial year, YTB endured criticism quarter after quarter that they wouldn’t make it into the next year…then the next year…and the next.

And apparently all eyes are on YTB as we’re at it again via the direction of a “going concern” letter that was issued by YTB’s Auditors in it’s Annual Report. Would it surprise you that “going concern” letters are becoming more commonplace with companies like DayStar Technologies, and General Motors, with others to follow according to Greg Milmoe, a partner at Skadden, Arps, Slate, Meagher & Flom? That’s not to say that a company that gets a “going concern” letter is doomed to bankruptcy. Sanyo turned things around late last year, along with Eddie Bauer who worked through the doubts and stigma associated with such an opinion.

A letter such as this is part of an Auditors job, to provide it’s professional opinion on the health and viability of company, and it’s up to the company to follow that direction if they want to remain solvent and in business. We’ve seen a number of changes in the way YTB has done business with drastic cuts in spending with the illumination of CRTA Trainings and opting for First Class On-line Training. Another notable absence this year was Coach’s Birthday Bash in which expenses usually sore into the millions. The company has also shored up capital reserves, evidenced by major cutbacks in the second half of the year, such as a halt to the building project at the Home Office.

Other changes involved the elimination of non-current inventory, which resulted in one time losses of $3.0 million due to the legal issues the company is facing at this time. But the word “pyramid scheme” keeps popping up even with a company statement that has been in front of everyone viewing YTB for the last couple of years that you pay for a Travel Agency (the product) not the opportunity to recruit as a Rep. There are those who either aren’t intelligent enough or simply want to ignore this fact of two separate companies. Personally, it’s hard to ignore the separation when you’ve received two separate 1099’s since the very beginning to hand over to your CPA come tax time. One 1099 is for the travel you sold, and one for the team building you’ve done.

Yet the spin is to mesh the two together, and that everyone is paying money to recruit, recruit, recruit, because there’s a phobia about building a team of people to work with that’s reserved only for the Direct Sales model.

Direct Sales is a model the founders of the company know very well, and have been successful in for close to 30 years. It’s amazing how failures that are more than 3 decades old come to the surface in an attempt to prove some point that Coach isn’t all that smart or can’t be trusted as a business man. It’s as if the mentoring by A.L. Williams in the early 80’s never existed as a lesson on how to build a successful business that produced a team of agents with annual sales of $2.5 billion during a 20 year career with what is now known as Primerica. It’s hard to fathom how anyone can skip over two decades of success, but we are talking about MLM here, and for critics you never focus on the successes, only the failures in order to keep everyone in line with their own perception of reality.

Over the last week I’ve seen a number of comments that “the writing is on the wall”. Oddly enough, none of the writing documents the 20 years with A.L. Williams, the Travel Weekly Power List, the membership with the DSA, the investments into both SAP and Convergentware, cruise sales with both Carnival and now Princess later this week, (be on the lookout here about Princess here later this week) and a the new print on demand site with Mailpound that was announced at Red Carpet Day last week, in front of 1500 passionate TSO’s.

Maybe because what they call “writing” is nothing more than graffiti designed to cover up what I’m actually experiencing with the company right now. That’s what graffiti is designed to do, to show evidence of decline.

We certainly have our work cut out for us in cleaning up the graffiti all over the internet right now. It’s time consuming, it’s uncomfortable, and one always needs a shower after dealing with such toxins. That’s why I don’t like to get wrapped up in it any longer. Like everything else that the company has had to deal with, time and natural progression will wash much of it away when you take the right steps and make the right choices.

In these tough economic times, only the strong will survive. With so many eyes and focus right now ONLY on YTB, it’s hard for some to take the blinders off and see the entire picture. Challenges come in many different forms and YTB has certainly had it’s share of challenges. It’s what you learn and how you adapt to the challenges that can make a person and a company stronger. When you take the proper steps to answer the chanllenges, there is very little anyone can do to when you reach the other side.

I know it’s hard for some to see that other side because the end is near according to some. Stuck in a forest of trees that keep falling all around them.

Me, I just keep my eye on the light I see off in the distance because that’s what I’ve been taught by every mentor I’ve ever come accross in my years of this experiance we call life.

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