I’m a man of my word and while I never thought that John Frenaye would accept my challenge…he did.

My purpose of this Blog is to speak the truth and sometimes in getting the truth out, we need to hear the other side of the story. And since this story has captivated so many people here, I feel it’s not only fair, but my responsibility to let the other side speak.

While I am not going to “publish” Johns comments in the comments section, I am going to copy and paste word for word what he expressed (unedited) to let him get his side of the story out. I hope that John will find my response to his comments both helpful and without offense to him.

Not sure if you will post this or not, but I figured I could respond to you. First, when I comment on your blog, I will identify myself. I don;t do the anonymous thing like many do. Thanks for all the credit as to what I said on a prior comment, but most of it was not me. THe line about the Koolaid–nope.

I’m sorry John, but your first comment on my Blog was “anonymous”. Being that both comments were posted one after the other in time frame and similar in content. I conveniently included you into some sort of “stereotype”. Being accused of things you never do is something we in the Network Marketing Industry have gotten accustomed to. It was wrong for me to fall into that same trap.

A. The suppliers have allowed the discounts and FAMS. It is NOT your fault for taking advantage. I blame the suppliers and we are encouraging suppliers to take a similar stand as RCI or to re-evaluate how they dole out the benefits. If you make the cut–fine!

I have no problem with any supplier cutting FAM’s to those who do not give back to the industry the way our Professional obviously have. It is a privilege, not a right. It is courtesy, not an expectation. It is a tool, not a perk. If Royal Caribbean simply took away “FAM” privileges to YTB or other Card Mills, while we certainly wouldn’t like it, it could have benefited RCCL in both sales and respectability. What RCCL did in Terminating MLM’s to even do business with YTB and Joystar did nothing more than cut their own throat.

I realize this is of little consequence to you, but Royal Caribbean will never do business with YTB again.

Never.

B. When I talk about top tier commissions. I am not talking about your fluctuating numbers. I am talking about commissions. As a “travelpro”, you ought to know that the very companies you cite (Amex, CWT, etc) negotiate commissions on behalf of their agencies. These commissions are tiered any typically begin around 12% and rise to 17% or 18%. It is up to the INDIVIDUAL agent (or agency) to support a supplier to earn a top tier commission. IE: I sell a lot of Carnival and earn 16%. I sell one HAL and I earn 12%. With your program, I earn top tier from day one. This is not fair, costly to the supplier, and deceitful when you get an RTA that has sold nothing, yet “buys” a cruise only to have the commission rebated to him.

YTB does the same thing as anyone else in the industry. We are given quotas and we’ve exceeded those quotas with every single cruise line we carry. I’m sorry you don’t like or you don’t think it’s “fair” that we benefit from the shear numbers we have, but as an “Agency” we certainly earn top commissions. I have seen those commissions rise in some cases over the years as we get bigger and “sell” more cruises.

I know you’ve been told that all we do is “buy” our own cruises to get the “rebate”. If you look at our Groups Booking page, you will find that clearly as an “Agency”, we do far more than that.

C. I talked about the lack of any customer service. Most of the RTA websites do NOT have any contact information. No phone, address, or even an email address. It is the cookie cutter site out of the $500 box. When a consumer clicks on HELP, there is a list of supplier toll free numbers. If a client calls and is asked for an IATA number, they likely will not know and the client is left stranded. But on the bottom it does say to contact the RTA. But again, with no means to do so, it is a non-offer.

My friends, family, former co-workers already have my number. My business cards and promotional flyers also have my phone number along with my web address. I’ve also found a way to embed my phone number into my booking engine right above the URL in Internet Explorer. Most of them call me in the first place and while I do book directly with suppliers, most often, I book directly off my own web site just like they can.

I was unaware that the 800 numbers on the booking engine are “Agent Only Numbers”. I honestly have not checked to verify. One of the beautiful things about our new web site is that I can write a support ticket and have the home office change this more to your liking. (And I do find that your non-offer valid.) We have made many changes to our booking engine since it’s new upgrade at the National Convention. It will continue to be a “work in progress” and is now one of the best “cookie cutter sites for $500″ I’ve ever seen.

Let’s see if I can make this happen. Deal?

D. You are soliciting clients and new members and it is a bit deceitful. I have heard (not confirmed, so please treat it as rumor and hearsay at this point) that the DSA is investigating your business practices and the adherence to their Code of Ethics.

John, please read the Press Release from the DSA.

“Each of these companies completed the one-year pending period required for full membership in the association. During this time, the marketing and business plans of applicant companies are reviewed to ensure compliance with all provisions of DSA’s Code of Ethics.”

Our application was approved on 9/18/07. Trust me…what you’ve heard is nothing more than “rumor and hearsay”.

E. Soliciting existing agents to your downlines. We dust don’t want to be a part of it. We did not get into this industry on a $500 Visa charge.

While YOU certainly don’t want any part of it, please don’t lump everyone in the Retail Travel Industry into this. You don’t know everyone in the industry, specifically the former B&M Agents on my team. While Ruth Z is not part of my team I invite you to read her comments on my Blog.

F. Your pitch to people for booking and for people to join the ranks is why let aunt Mary book someplace else when she can book with me–her favorite nephew. Well, if she does, she is NOT booking with you. You are just giving her access to Expedia (or is it Travelocity). Aunt Mary thinks that you will be handling her travels and that could not be further from the truth. When Aunt Mary runs into a problem and seeks out some help…she is SOL. See point C above.

Aunt Mary has my number and she knows that her favorite nephew will take very good care of her. While Aunt Mary does book here flights and some hotels with World Choice, she does book her River Boat Cruises with me, who I in tern contact Majestic America, or Uniworld directly to book for her. (Neither company is available from our web site.)

G. Have you ever watched any of your videos? Looked at one of your sites? How can you say there is not an emphasis on free and discounted travel? While I realize that for “YTB Sanctioned” material, there is some numeric code, how do you explain the thousands of YouTube Videos out there by YTB RTAs screaming about the discounts and free travel. Did they just make it up? Or perhaps it was told to them. It is there. Look at the sites?

Those of you in YTB or any other MLM I want you to read that quote again.

I’m sorry gang, but I have to agree with John 1000% on this issue. I can defend a lot of issues, but this right here has absolutely no defense. (Not even for me.) I not only agree with this statement but so does the home office and that’s why we came out with Approval Codes. I know exactly what he’s talking about and I am just as embarrassed as he is about some of these videos. (I kid you not, I honestly am!) I see videos, message board postings, e-mails, and absolutely hideous web sites that are not only unprofessional but down right wrong.

We have 127,000 “Independent” RTA’s out there, it’s impossible to control everyone, and people do some really stupid, unprofessional things don’t they? I know the e-mail referred to in my last post was only “originated” by John, but sent by someone else. I can assure you he can appreciate how frustrating and embarrassing it is to see this “garbage”.

Can we please make a concerted effort that as we mature and grow we will have better control over this. When I see something like this, I either report it and let the company deal with it or there are times when I have personally called out individuals on message boards and forums to tell them to “knock it off”.

Our President Kim Sorensen has even stated in his Travel Weekly Interview…”Guilty as charged”. Please accept our apologies and understand that we are trying to correct this very blatant eye sore.

I also want to rehash the sales numbers a bit. Per YTB in the TW article, the $226M was derived from several sources and sort of put together for the issue. It was NOT verified by TW as they took you at your word. And to your credit, YTB did state in that reporting to TW that $176M of the sales numbers was from the sale of third party websites. THIS number is born out in the SEC filings for 2006.

I’m sorry, but both Travel Weekly and YTB have documented several times that the numbers were verified.

I agree, that the income is not realized until the commission is received (and travel typically complete), but this is most certainly accounted for in the SEC filings. Under the Income there is travel commission income. Under expenses, there is travel commission expenses. The expenses are very close to 60% of the income which is consistent with the compensation plan of YTB. YTB tried to say that the income side was THEIR share of the commissions, but then why would you pay an additional 60% out of your net income? Makes no sense.

While I know what you are saying, and I know what your missing. I’m at a loss right now in exactly how to explain this without being very long, very drawn out, and potentially misleading you even more. It may be beneficial for you to contact our CFO, John D. Clagg about this issue.

And finally, I want to be clear that this is not a YTB issue like you and so many of the other RTAs feel it is. This is about the concept of MLM and travel and how it does not work. The petition had ZERO to do with any decision by RCI. Do you really think that they made that decision in the two days between the time I put it up and gained 100 signatures and the deliverance of the letter? I am flattered that you feel it yielded that much power. But, it did not. Certainly I applauded the move and I chalked it up to an incredible sense of timing.

I would respectfully disagree that Travel MLM does not work. It’s one of the finest business models I have ever seen and affords me some of the best leverage, training, freedom, and experiences of my entire life.

I do agree that YTB is not the issue, I understand that YTB needs to be mentioned only because we are the biggest dogs on the block. Get YTB the rest will follow. I have also corrected the issue here before that your petition had nothing to do with the RCCL issue. Your petition is merely a symptom, not the cause.

I’ve been with this company since January 16th, 2005 John. I’ve seen this company grow from 8000 to 127,000 RTA’s. I’ve seen three booking engine upgrades, two marketing web site upgrades, three home office upgrades, dozens of CRTA certification classes, National Conventions, Travel Seminars both on Land and by Sea, vendors and suppliers come and go, team members come and go, my income both on the Travel and Marketing side increase each and every month, new training programs, memberships to organizations which add credibility, rankings in Travel Publications, medical benefits for our RTA’s, and have personal spent time with Founders who I will stack up against anyone in the Business arena MLM or otherwise.

You do not find anyone finer in the Industry than Coach, Scott and Kim.

I love the Travel Industry just as much as you do and I have no less respect for it than you do.

While I am a professional, you mess with my company, you mess with me, and as you have seen, I can and do bite back, and I’m far from over. So are the rest of the 127,000 RTA’s with YTB. Coach has called a play and we now have a game plan in place to prove once and for all, our model DOES work and so do our PEOPLE.

Thank you for coming at least this far into our world and at least showing an effort in gaining a better understanding of who YTB is and what YTB does. Because I feel you have been not only sincere but fair, you have been given your opportunity to share “The Other Side of the Coin”.

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I had mentioned in my last post that at the time of that post, I was unaware that any other suppliers or vendors have joined RCCL terminating “card mills”. If you have been following this story with me, you should know by this time how I’ve have an uncanny way of digging up documentation and information via the internet. (It’s a gift.) While I have heard of several companies from various message boards and forums throughout the course of “water cooler gossip” I have yet to see anything verified by a source I’m willing to trust at this point.

Over the weekend I found another link in which I’d like to share, and while I certainly consider this to also be nothing more than “water cooler gossip” especially concerning the source, I’d like to have some fun shooting all the fish in this barrel. While some may take this as nothing more than another personal attack, or ask why I’m giving so much energy to something I first decided to ignore, I believe those of us who are under attack by this individual should be aware of not only what we are being accused of, but the positioning and tactics being used in regards to YTB specifically.

As both Kim and Coach were able to express thanks to Travel Weekly last week, there are a lot of misconceptions about Network Marketing. Here is a listing of just a few of the common misconceptions regarding our industry as it’s related to what they “think” we are doing.

A. Suppliers allowing them discounts, free travel, FAMS, and other perks merely for referring themselves and their family to a website.

While the problem is originated at the supplier level for “allowing” discounting, it’s suddenly becomes a problem with MLM and not the supplier. See how that works? All the problems are directed at MLM because the supplier can’t differentiate what is a legitimate IATAN or CLIA credential, and one of our “ID Cards”.

These petitioning Agents certainly can’t blame the supplier, they are the life blood these Agents. So they put a gun to the suppliers head, tell the supplier “us or them” and when supplier caves to forfeit a combined $23 Million in sales, suppliers are sung praises for finally being able to say “no”. The supplier was unable to regulate just who is “giving back” and who is “taking advantage” of the discounting, therefore, MLM is taken out of the loop completely because these Agents believe MLM is the real problem.

B. Suppliers paying top commissions from day one, when we have to work years for a few points.

It’s my understanding that only “YTB consistently changes it’s “sales” numbers to appease different audiences”, not the other way around. If you recall when this story first broke, here is what we were told via comments on this very Blog.

“Why would I want to be YTB to earn 60% commission of 13%, when I now earn 80% of 16% and higher? Stupid. Ya’ll keep drinking your koolaid.”

I’d like to note that fingers are now being pointed at me for posting our commission percentages on this very Blog. They are upset with me for showing these top commissions, as these percentages apparently are a closely guarded secret in the Travel Industry. If this is the case, I don’t know how anyone would actually know WHAT commissions YTB actually makes.

While it may look like a “Catch 22″, I didn’t open this can of worms, and I don’t mind at all commenting or documenting how slimy the worms are.

Why does YTB get “top commissions”? If you joined American Express, Carlson Wagonlit, or any other Agency in the Top 50, they are also paid top commissions. Agencies earned these commission levels based on Sales Volume. Sell “X” amount of cabins, earn “Y” amount of commissions. Increase the amount of cabins sold, Agencies qualify for a higher amount. Carnival has awarded YTB their Pinnacle Award as one of the Top Agencies the last three years in a row, 2005, 2006, and 2007.

Because YTB is MLM, we don’t deserve top commissions along with the Award for Top Sales? YTB obviously qualified with every Travel Supplier we have on our list. Kudos to the RTA’s of YTB for making this happen!

C. The MLM companies idea of help to the consumer is to refer them to the Travel Agent Only toll free number of the supplier.

I have no idea if Agent Only numbers are given out or not. Doing so isn’t at all productive. If, by some slim chance they are, the “customer” who calls will be asked for either an Agency Phone Number or Agency IATA number, (depending on the supplier) and since this is the first question asked by an inside service representatives, no further information is given without first supplying either of these two identifiers.

I realize there are over 60,000 new RTA’s who have joined YTB in the last 9 months. If you have a question, we have our own phone number or support ticket system along with a newly renovated 120,000 square foot Home Office with hundreds of support staff to assist you. The founders and Corporate Heads of YTB have set in place one of the best training systems and support programs available to anyone wishing to get involved in the Travel Industry. Additional thanks going out to Dr. Marc Mancini and TheAcademy.com for their support and assistance in this leading edge training technology to help those who have recently joined our ranks. span>

D. The solicitation of our clients with slick unethical and misleading marketing materials.

We must have missed the Memo from the DSA announcing YTB as members of their prestigious organization. YTB is clearly attempting to raise the bar joining the DSA in abiding by their Code Of Ethics.

How sad to see that our counterparts in the Retail Industry are not joining us in our efforts.

“In the wake of RCI’s decision to yank the privileges of “card mill” outfits, I got spammed with an email from a group that purports to be lobbying more big travel sellers to follow suit (see email below). Did anyone else get this? I don’t understand what is motivating this campaign–if I’m a legit TA, why do I need to waste my precious time joining a grassroots organization to cheerlead the big travel sellers for making a decision I like? I am also trying to figure out where they harvested my address from….”

I couldn’t have said it better myself. Thank You.

E. The solicitation of travel agents themselves to join their “downline”.

Finally something worth talking about! Absolutely!

We understand the plight of the Retail Travel Agent, and while they are spending time servicing important high ticket, high touch clients, these same clients can now be referred to their very own “booking engine” for air, hotel, cars, event tickets, even flowers without lifting a finger. These clients have been booking these services themselves for years now. If Retailers choose to simply let Travelocity, Orbitz, Expedia have it, that’s fine too. For a minimal cost, and loyal clients, it makes sense for those Retailers who want to retain all of their clients travel with minimal effort.

By the way…many of these Agents “get that”. There are obviously a few old school who want to continue to struggle and end up selling T-Shirt’s and creating their own Blogs, while at the same time left wonder why annual cruises booked by agents has dropped to about 90% and continues to decline.

F. Consumers believing that they are booking with a “friend” and ultimately it is being handled by an untrained person in a res center.

- Expedia booked $17.2 Billion in their Res Center.

- Travelocity booked $10.1 Billion in their Res Center.

- Orbitz another $10 Billion in their Res Center.

- Priceline finishes out the Top 10 Res Center Agencies with $3.3 Billion.

Over $40 Billion was spent last year in a Res Centers and that ONLY includes Expedia, Travelocity, Orbitz, and Priceline who are all Top 10 Agencies. Our friends have not only trained themselves, it appears that their training over the last few years was extremely effective.

MLM is apparently under a completely different set of rules and guidelines here when it comes to using Res Centers.

G. The promotion of their business with the focus on “free travel” and “traveling like an insider”.

Take a look around here, take a look at the YTB Marketing site, take a look at our Booking Engine…do you honestly believe obtaining “free travel” is YTB’s focus? Yes, I want to show you how to “travel as an insider”, to help you sell travel. This is what I was taught to do from the very beginning, take a FAM and then comment on my experience. This Trip Report is still being accessed to this day, and I still get sales off this article two years later. I see nothing wrong with organizing a large group and obtaining a conductors rate for yourself. I see nothing wrong with getting rebates in the form of commissions for your own travel. If they can do it…so can I.

Oh…that’s right…YTB is MLM.

Sorry….

While these Petitioning Agents are relying on “luck” and signatures, YTB has verified numbers of $226 Millionis sales in 2006, and a conservative number looks like that number is going to double to $550 Million for 2007.

In closing, I’d also like to note that while I’ve enjoyed exposing these Anti-MLM Zealots, a considerable number of fingers are also being pointed back at me.

Here is what I’m actually very proud of.

With years of posting about YTB, they have only been able to come up with one legitimate complaint about what I’ve done when it relates to all the myths, rumors and lies they are spewing about YTB.

Last year I submitted a Press Release on going full time with YTB. In the copy, I stated that YTB estimated $500 Million in sales for 2005, and expected to exceed $2.5 Billion in sales for 2006. While it looks like I either grossly exaggerated my sales numbers, (or simply missed these figures by a year of two) I am both humble enough, professional enough, and man enough to admit and correct any misrepresentation I have made about a company and industry I love, admire, and respect.

Actual verified sales number for 2006 was merely $226 Million in sales, and estimates for our current year have only doubled to $550 Million.

I appologize.

How long will we have to wait to see the same class, dignity or professionalism from our opposition?

Time will only tell.

Let’s just hope they correct this before others like Ms. Diana, Publications like Travel Weekly and suppliers like Carnival begin to figure out what’s really going on.

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While nothing has been officially announced by YTB at this point, it is my understanding that our relationship with Royal Caribbean International has been flushed.

Buh-Bye.

Currently, it simply doesn’t matter what Royal Caribbean does, and based on what we know they have and have not done, YTB feels it’s best to simply remove ourselves from a company who selectively chooses to single out a few Agencies, while making exceptions for other companies who also offer a Home Based Business opportunity. While the Retail Travel Professionals are gleaming with the apparent support over Royal Caribbean’s decision, it’s quite evident both from documentation found, and from what I’ve been reading on from other members of card mills that this “card mill” issue is neither sweeping or consistent.

While all the doom and gloom over what Royal Caribbean has chosen to do is still swirling, we must not loose site that the truth about our business model and our company has also begun to surface. Earlier this week, Travel Weekly gave YTB a chance to defend our model, and it’s quite clear based on what’s been happening, “there are many misconceptions about who we are and what we do”.

If you recall, I lambasted the organizer of the petition being signed by various Retail Travel Professionals for his lack of basic knowledge and understanding about our business model. This supposed “authority” in the travel industry stated on this very Blog “If you read the TW report, it says that $176M of that was from website sales and from monthly website maintenance fees. These are NOT travel sales. These are website sales.”

While I can’t be certain, I find it hard to believe that anything being said about my Blog or our company behind closed doors gives any acknowledgement that several sources, including Travel Weekly, confirming that the $176 Million is both “verified” and also “Travel Sales”, not Network Marketing or Recruiting sales. Unfortunately, such clarification about facts has little bearing for those who are so adamantly opposed to seeing yet another threat in even more business being taken away from a struggling and dieing market segment.

It’s been documented here before that over $40 Billion in travel services are now being done on-line with just 4 of the Top 10 Agencies currently taking away business from these Retail Travel Agents. The days of “Personal Service”, “Travel Agent Expertise” and “Credibility” is clearly a dying market with over 75% of these Agencies closing their doors. And while some have chosen to attack with misleading the public, comparing our business models to other models that haven’t even launched, (E-Trips Network) the more attention YTB gets, the more individuals will begin to question the validity of the arrogant and uninformed who are touting such propaganda.

Much has been joked about all the news and what YTB’s Travel Numbers currently are, and critics point fingers at one YTB spokesman stating sales of $1 Billion for 2007 while another states only $550 Million, they fail to realize that even at $550 Million, that still puts YTB Travel Network in the Top 20 in next years Power List. Ask any College Football fan, and they’ll tell you, you’re nobody until you make the Top 25 Poll. They clearly point to net losses of millions of dollars without an credence to $169 Million in Market Capitalization, nor do they realize how rapidly YTB is expanding and growing it’s infrastructure to support a growing RTA field by nearly 400 to 500 new RTA’s per day.

YTB simply “offers” fully paid medical benefits for those of us who produce $25,000 per year in Travel Commissions. Surely no one is even earning IATAN credentials with YTB and RTA’s like Vivian Clark, Daphene Jackson, Ronnie Williams, and Carl Dennis are just “lucky”. While Royal Caribbean claims they have strict rules against discounting to “card mills” they certainly don’t have a problem with “conductors rates” for those of us who organize and book groups of 30 cabins or more.

Those making claims against our model think training is kept to a minimum across the country to help the thousands of new RTA’s who have recently joined our ranks, and we certainly
wouldn’t want them to know anything about our continuing education which was designed and written by Dr. Marc Mancini and TheAcademy.com. What these “Professionals” don’t understand is that I’ve been able to find ample support and greater encouragement from YTB than any other system I’ve ever looked at previously. When I first looked at getting into this industry years ago, I was stuck without the required experience, and now that I have it, it’s not good enough because it’s “Network Marketing”.

Nice.

Sorry guys…you had you’re chance many years ago. Now that I’ve created my own business with my own clients and my own team of Agents, thanks to the support of YTB, I’m here for the long haul. The leadership of this company both at the home office, and in the field won’t be going anywhere. It takes a special tolerance to deal with all the myths and misconceptions surrounding the Network Marketing industry and you have seriously underestimated the resolve of the entrepreneurial spirit.

YTB is already 127,000 strong, and we all have Fathers, Mothers, Brothers, Sisters, Sons, and Daughters who will continue to do business with us over anyone else. The more knowledgeable and mature we become, the more business we will dictate goes where and with whom.

Currently the only supplier who has chosen to be on the outside looking in is Royal Caribbean. While rumors continue to swirl at the time of this writing, no other supplier has made the choice to do the same some two weeks later. That’s not to say it won’t happen, but the longer this takes, the lower the probability that any other supplier will be foolish enough to alienate themselves from an obvious growing market shift.

As my good friend Charlie Howe stated “The Fat lady hasn’t even inhaled at this point!” and our Retailer’s are cheering about major, sweeping changes. Trust me…they’ve done little to change our growth or resolve. If anything, they’ve strengthened our desire to be the largest Travel Agency in the world.

Those associated with YTB, please check your back office for some BIG plans with the #1 Cruise Line in the world. While I’m not going to tip our Retail Agents just what has been laid before us, they will find out soon enough what 127,000 untrained, unprofessional, and unqualified RTA’s in YTB can do. It’s my hope and my mission to help our opposition understand what “Shock and Awe” is meant to look like.

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Imagine my surprise today when one of our RTA’s sent me this e-mail:

Subject: Job Listing: Franchise Development Manager at Royal Caribbean Cruises, LTD.

I saw this cool job today and thought you might want to check it out:

Franchise Development Manager at Royal Caribbean Cruises, LTD.

I found it on http://www.simplyhired.com/, the world’s largest search engine for jobs.

Am I to gather from this correspondence that while Royal Caribbean is terminating relationships with a select few Agencies they’ve labeled “Card Mills” they have a vested interest in other home based business networks?

“Royal Caribbean MAGICJohnson Travel Group L.P. Magic Johnson Travel Group is the first home-based travel agent franchise network specifically targeting multicultural franchisees and customers. We strive to cultivate organic growth in the minority travel segment and empower entrepreneurs and new travelers across America.”

I guess that includes us in YTB and Joystar? (Although they are focused on reaching out to the African American, Hispanic American and Asian American communities as new sellers and buyers of home-based travel, everyone is more than welcome to become a part of this unique business opportunity.) You will also have an opportunity to “speak to individuals and groups on behalf of customers to stimulate interest in franchise ownership.”

Since it’s focus is minorities, that makes it okay?

I’ve known about the Magic Johnson Travel Group since May of 2006, when it was launched. I was until this morning, unaware that Royal Caribbean still has a vested interest in this opportunity.

At the time, President of Royal Caribbean International Adam Goldstein stated, “Royal Caribbean International believes this venture will cultivate new sellers and buyers of travel in Urban America and fill a large void in the agency community. We share Earvin ‘Magic’ Johnson’s vision and enjoy a strong partnership with the multicultural communities we serve.”

With this “Job Listing” being posted on October 20th, well after the Terminations letters have been sent out, I would have to assume this statement is still true.

Isn’t THAT “special”?

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First of all, I’ve got to tell you…I LOVE the internet. I love the way information flows on this puppy. Technology has made it available for anyone to access just about any information and documentation they could possibly desire in this day and age. (Thus the term “Information Superhighway”?) Based on information we all have access too, we could acquire PhD’s in just about any field of study we choose. It’s all there, you just have to find it.

I read a book last year from Author T. Harv Ecker, “Secrets of The Millionaire Mind” and I also listen to a syndicated talk show host here in Atlanta named Neal Boortz. I’m a firm believer that if you want to be successful, you listen to people who are more successful than you are and do what they do. Both of these successful individuals have told me this:

“Don’t believe a word I say, unless you can verify it to be true on your own.”

If you’re like me, your scratching your head after reading the “In The Hot Seat” Interview with Lisa Bauer, Senior V.P. of Sales with Royal Caribbean International stating that “The Letter” terminating “Card Mills” was ONLY sent to THREE Travel Agencies. In addition, she never names the three agencies.

Secondly, we find another report with Joystar responding to RCCL dropping them, a bona fide Host Agency, hardly the “MLM” or “Card Mill” everyone is talking about in all the doom and gloom circling around the internet concerning the death of Travel MLM’s.

No, something just isn’t right about how all this is unfolding. Logically, it doesn’t make sense to me. If you’re trying to cut the legs out of these “Card Mills” by only using one cruise line, three Agencies, and one of them isn’t even a “Card Mill”, that’s hardly the “Shock and Awe” I would expect. Again, something I read about in “Secrets of The Millionaire Mind” was that we need to take “massive action”, not some hodge-podge trickle like this.

What was most disconcerting to me was the way Royal Caribbean handled the situation with Bill Alverson, chairman and CEO of Travelstar, Joystar’s parent company. In the article it states:

“It took about three minutes for us to learn that RCI had absolutely zero intention to listen to our side of the story or to ask questions we could answer to clear up the matter,” Alverson said. “When Mr. Fishkin [President] asked what led Royal Caribbean to this decision, we were told they did not have any particular concern they could identify, that we have never done anything to harm their brands, or hurt them financially, but they were terminating the relationship anyway….When we asked for clarification, we were told by [Lisa Bauer] that she has decided to ‘broaden the definition of what a card mill is’ and considers Joystar and ourEnterprise members to be one….”

When this “Card Mill” fiasco first broke on October 10th, with news that the ARTA applauds RCI’s policy to remove sales relationships from MLMs and Card Mills, I boldly stated that YTB’s relationship had been strengthened the week before with news that the home office would handle all the Group Bookings for RCI. In the report listed above Bill Alverson also stated:

“I tipped my hat to Royal Caribbean management as I read their email announcing they were sending termination letters to travel industry “card-mills,’” he wrote. “After all, it was about time suppliers took a stand on behalf of real travel agents.”

Like YTB, their relationship had also appeared to be strengthened based on a PowerPoint Presentation given by Royal Caribbean’s management to Bill Alverson less than 60 days prior.

So, why the sudden change in heart by Royal Caribbean by not one but now two Agencies who are producing a combined $23 Million in revenue for Royal Caribbean? (Documented sources and reports of $13 Million by YTB, and $10 Million by Joystar.)

About the only concrete information I could gather as to why RCI would terminate Joystar was based on their Enterprise program. Knowing what the Enterprise business model with Joystar employs, I will tell you that it does allow for Sub Agents. Kind of like a mini-Host within a Host Agency in which the Parent Host allows someone to create a Sub-Host for others to help sell travel within this Mini-host. Sub Agents make the majority of the Travel Commissions while the Sub-Host takes a cut. (For those of us in YTB, it’s very similar to a Power Team Leader making a 10% override on all Travel Commission produced within your own Power Team.) The Enterprise business model however, only goes one level deep to the Sub-Agent, unlike “Multi-Level” in Network Marketing.

While Affiliations and Organizations are protesting the use of “recruiting”, some actually make it a requirement as a member of their Organization that they have a minimum number of these “Independent Contractors” in order to even be considered to be a Host Agency. An Organization called The Professional Association of Travel Hosts (PATH) for example require a minimum of 25 Independent Contractors in order to even join their particular organization.

No, I’m sorry, but there has GOT to be something MORE going on here and enquiring minds like mine want to know! (Thanks for letting me steal that comment by the way!)

I needed a couple more pieces to this puzzle in order to complete the picture that was forming in my head, and at this point, probably like yours, it’s was very clouded and murky and there were more questions than answers. I told you I knew just enough to be dangerous about Joystar. There was something else about this company I was missing. So I did some more digging.

Apparently, at one time Bill Alverson was the CEO of a Travel MLM called TravelMax in the mid-1990′s which is now defunct and from what I understand one of the first MLM’s in the Travel Industry to operate. While researching, I also found that there certainly isn’t any love lost between our “Star Villain” in this story and Bill Alverson. There is a considerable animosity between these two. While reading Bill’s Blog to the field, I found this post, which I agree, reflects A FEW of these “Professionals” out there who are crying about all the business being taken away by “Card Mills”. (However this entry is clearly directed at one particular person, our “Star Villian”.)

ALL RIGHT ALREADY! I’ll cut the “Star Villain” charade and let you know who I’m talking about here. It’s someone I’ve mention here a couple days ago; Peter Stilphen, who much has been written about from the CEO Bill Alverson, and he even created his own web site dedicated to Peter. So yes, there’s no love lost. (Sorry Mr. Alverson, it IS out there.)

But how does this connect with Royal Caribbean?

I might be the ONLY YTB RTA that’s registered with CruisingPower.com, (according to Lisa Bauer), but I didto find this answer. Along with “The Letter” there is an FAQ section, (also found via Google without access to RCI.) which for those of us who are caught up in this fiasco NEED TO READ so you know what’s going on. In the FAQ it mentions that Royal Caribbean has joined the same organization mentioned above called PATH, The Professional Association of Travel Hosts. access Royal Caribbean’s “Agent Only Area”,

I have been reading about this organization from various publications, Blogs, and message boards with some good, and not so good reviews. In particular, and most recently (8/27/07) while reading Bill Alverson’s Blog he states at the very bottom of his post directed specifically at PATH:

“Stay tuned for information on ill-conceived trade associations and the Antitrust violations including price fixing, unfair competition, restraint of trade and other potential criminal charges all association members may face because of the potential criminal activities of a few very bad eggs.”

To be completely honest, I know nothing about all these claims, and I’m simply not going there. (Right now) But it did pose the question, “Just who is this group called PATH?” So I start digging around on their web site.

Imagine my surprise when I take a look at just who is not only on The Board Of Directors but standing President?!

None other than Peter Stilphen.

I don’t know about you, and I’m no lawyer, but doesn’t this whole “Royal Mess” start looking like “Royal Scandal” and the start of unfair competition and restraint of trade to you?

Before you come to this conclusion however, take some advice from a couple of mentors of mine:

“Don’t believe a word I say, unless you can verify it on your own!”

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Like it or not, I have to give equal time to another one of our villains in this thickening plot I’m now going to title “One Royal Mess”. What I just uncovered NEEDS to be addressed, and I’m quickly finding that this whole ordeal is not about “FAMS”, “MLM’s”, or “Card Mills” it’s looking more like “personal vendettas” from a select few of our “Retail Travel Professionals”.

Overnight, I received one e-mail and one PM (Personal Message) from someone I know on the message board forums. Little did I know how the two were related, but BOTH led me to dig a little deeper. Since I had documentation and a verifiable source of the first story I started to write about about the Travel Weekly article, an “In The Hot Seat” Interview with Lisa Bauer, Senior V.P. of Sales with Royal Caribbean International. What was so interesting about this interview for me was that “The Letter” terminating “Card Mills” was only sent to three Agencies.

Yeah…THREE! So we know that one letter was sent to YTB for sure…but who got the other two?

Please select you’re choice from the list of Travel MLM’s/Direct Sales companies listed below.

Now, one of them is on this list, but since all I’ve been hearing so far is “rumors” on the boards, (doesn’t anybody know how to link to documented sources on these forums anymore?) and I’ve also heard from pretty reliable sources who this company is, so I’m 99.9% sure. But since nothing has been publish by the company themselves, or in any trade magazine as yet, they shall remain nameless here. (Just in case my “sources” are incorrect and I have to eat more crow.)

The second company was named late yesterday as well, and based on their own agents voicing objections to getting “The Letter” it was simply a matter of time. What I found interesting was an e-mail forwarded to me from one of my team members from our “Star Villain” in this thickening plot concerning news that a Host Agency named JoyStar had been sent “The Letter” concerning termination with Royal Caribbean. Now, if you’ve been in the Travel MLM industry for a while like I have and don’t recognize Joystar as an MLM, you are correct, they ARE NOT a Network Marketing company or Card Mill, but a traditional Host Agency.

Wait a second, am I trying to tell you that Joystar, a traditional Host Agency and not MLM are one of the three sent packing by Royal Caribbean for being a “Card Mill”?

Yes…Yes I am. Joystar is neither an MLM or Card Mill. Period.

Joystar maintains membership and business relationships with American Society of Travel Agents (ASTA), Cruise Lines International Association (CLIA), International Airlines Travel Agent Network’s (IATAN), Outside Sales Support Network (OSSN), National Association of Commissioned Travel Agents (NACTA), and they use both Amadeus and Sabre Travel Network as their global distribution system (GDS). (Something MLM’s simply don’t use, not in the “traditional” sense anyway.) Based on the report below, their agents are also producing at least $2000 per Agent in revenue for RCI. (Not the $40-$50 Per Agent VP Lisa Bauer told Travel Weekly a “Card Mill” does.) Nor do they have any Representatives who recruit others into JoyStar in which to earn addtional commissions. To call them an “MLM” or “Card Mill” is an absolute joke.

Then why in the WORLD did Royal Caribbean just terminate their contract?

Well, I was certainly asking the same question, especially after reading just HOW and WHY they were terminated both from the e-mail forwarded by our “star villain” and the news article I found from Modern Agent voicing almost word for word what the e-mail stated which was forwarded to me. If your calculating the revenue Royal Caribbean is terminating so far, that’s $23 Million between two Agencies. ($13 Million in revenue with YTB and $10 Million in revenue with Joystar.)

As much as I’m dieing to fill you in on this new development…I need you guys to read both of these articles before I move forward. I want you pay particular attention to Royal Caribbean’s “positioning” on these terminations, and how Bill Alverson, chairman and CEO of Travelstar, Joystar’s parent company tried to correct this “mistake” (and it is a mistake) along with his experience and thoughts on this.

Here are the two articles.

In the Hot Seat with Lisa Bauer – Senior V.P. of Sales with Royal Caribbean International

Joystar Responds to RCCL Decision to Drop Agency

Have fun and feel free to comment on what YOU think is going on.

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Our industry has been a buzz over the events of this last week. The Association of Retail Travel Agents (ARTA) has successfully put the screws to Royal Caribbean International with a petition to make them choose between their collective group of an estimated 700 (and growing) Brick and Mortar Agencies or the handful of Multi-Level Marketing companies who sell travel via internet web sites. News came out on Wednesday in a Travel Daily News article with quotes from Chairman Barry Richcreek applauding Royal Caribbean’s decision to terminate it’s relationship with “a scheme which denigrates the stature and role of the legitimate travel retailer.

PS - If you're involved with YTB, sign up for our FREE Newsletter. As a Website Owner or Website Seller, we'll keep you up to date with all the latest news, acquisitions, and developments with YTB.

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