The Direct Selling Association celebrates its centennial this year. One of its founding members was The California Perfume Company. If you don’t recognize the company, they changed their name in 1939 to something you may be more familiar with.

Avon.

The Direct Selling Association was first formed in 1910 in Binghamton, New York as Agents Credit Association. Over the years the Association changed its name a few times, but became what we know today as the DSA in 1968 when it moved to Washington, DC where it’s made its home for the last 41 years.

Some 200 Direct Sales and Network Marketing companies are members of the Direct Selling Association today. YTB International applied for membership more than three years ago, and was granted membership to this prestigious organization in September, 2007. The company remains a member to this day.

So why has an Association like the DSA and companies like Avon been able to withstand the test of time?

Simple – it’s one of the purest forms of distribution there is.

Period.

Manufactures who choose a Direct Sales company to distribute their products or services have major advantages over traditional channels. Both advertising and distribution costs are controlled – unlike “traditional” models. A manufacture only pays for product that’s actually sold instead of forking over hundreds of thousands (often times millions) in advertising to get the word out. Distribution costs are also controlled going “direct” and don’t pass through an elaborate maze of middle men who each take a cut along the way. Middle men only increase the cost to the end user. The variance between a manufacture and the end user can be so substantial that often the commissions earned in a Direct Sales company can be substantial, while being less expensive than other similar brands found on store shelves to consumers.

Tupperware is probably the best example I can think of – because it’s been done both ways. Invented in 1946, Earl Tupper took a gamble (or so he thought) by taking Tupperware off store shelves in the 1950′s and followed the “party plan” of Direct Sales. The line exploded and it’s a big reason why Tupperware is a house hold name today. It’s now sold in 100 Countries worldwide and has more than $1 billion in sales annually.

So if Avon has been around for 120 years, Tupperware started its Direct Sales program more than 50 years ago, and dozens of other companies like Mary Kay and Amway have been able to not only survive but thrive in the Direct Sales model call MLM for multiple decades – why even entertain the ignorant dolts who claim that MLM is a house of cards that can’t be sustained?

True the theory of exceeding the world’s population they all point to looks logical – but when has it EVER happened? This theory they all yammer about is nothing more than myth in an attempt to evoke fear into the one reading it. The hope is the reader just might think they’d be the one person left on this earth without anyone to recruit into their business of choice.

I use to enjoy going round and round with Zealots who use examples like the one found on SEC website to prove their point. It was great fun asking for a real life example. Quite often the silence was defining. Other times they just dug themselves deeper when they brought up examples that didn’t even come close with less than one hundred thousand participants. Even better – I’d bring up examples like Avon and Mary Kay that cater to a particular demographic – and ask how two similar companies couldn’t even capture half of the world’s population.

Ultimately frustrated and completely void of options – I’d end up being called every name in the book and chastised for being stupid.

Sucks being right. ;-P

Being a member of the DSA doesn’t protect you from being spit at as one of these “gigantic pyramid schemes”. Ironically, another government entity, Jerry Brown, the California Attorney General spit at YTB the day before our 2008 National Convention with those exact words. Concerned about YTB’s dramatic growth and rise, like all the others who buy into myths and theories, slapped a $25 million lawsuit on the company to protect consumers from the evils of fraudulent pyramid schemes.

As it turned out, the $25 million was settled out of court for a mere $1 million and while there was plenty of fanfare a year ago about putting an end to our company, I’m reminded of his words to this day every time commissions are loaded onto my YTB pay card. Hard to believe that it’s been a year since we “lost” that argument. (That’s the claim anyway.)

And yes, May 15th marks the one year anniversary since he spouted off that he ended everything. Gone but not forgotten, I just look at the commissions I continue to produce and earn, think about Jerry’s rhetoric and self-absorbed hype and say “Thanks for sharing”.

California is happy too. Of the $1 million YTB paid – $875 thousand went directly to California – not the “victims” they were intending to “protect”.

I know I really don’t have much of a voice with the DSA, as I’m only one person. But if there was anything I could ask them to help us out with over the next 100 years it’s this:

Could you make a push to help inform the general public between fact and what’s pure myth and hype? It’s not that hard to do. Ask the SEC to either produce an example of a company exceeding the world’s population or request that this bogus theory is taken down – never to implant false and misleading beliefs about Network Marketing and MLM’s again.

Help educate the general public that if you join a company like YTB for free as a Rep – there is no payment required for the opportunity to recruit others. Sounds painfully obvious I know – but there are plenty of examples I can provide where some simply don’t use their thinking caps – but instead wear dunce caps.

Bottom line is that there is still plenty of ignorance and false beliefs out there surrounding a very legitimate, viable, and profitable business model we call Direct Sales.

As an Association that has reached its centennial anniversary and provide tools and boundaries for those of us who uphold your ethics and standards, it’s time to expand our message to the general public and educate them on the difference between fact and fiction.

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

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

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

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

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

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

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

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

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

From the report.

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

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

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

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

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I realize that everyone wants my take on the 10-K that was filed on Monday. I’ll be happy to get to the 10-K once I’ve had a chance to actually read the document. I’ve been out of town the last few days, and would like to check a couple of facts. Although I have had an opportunity to read some of the posts already out; I have to say that I’m not impressed with some of the analysis from either critics or experts. (And particularly critics pretending to be experts.)

There will be plenty of time for my critics to make excuses about my take in due time, but for those of you who respect my analysis, I’d rather take the time to digest and find a little more documentation for you to combat the narrow minded thinking out there on the internet right now.

Deal?

Instead I’ll be promoting one of my favorite celebrities, and one of the few shows I actually watch for entertainment. This article on the Celebrity Apprentice was originally scheduled for today, since the show this weekend was of particular interest to those of us involved in MLM and Direct Sales. I got a big laugh out of a post on Tuesday, knowing that this article and episode was scheduled. Odd that the author of the post didn’t know that this episode was being aired this weekend. Kind of one of those “ouch” moments if you ask me. Yet the claims persist about him being some sort of an MLM expert.

I happen to enjoy it when MLM goes ‘main stream’ no matter who they are, because it helps all of us who actually work in this industry. It’s been said many many times that “The Donald” actually supports the MLM or Direct Sales business model. It’s my guess, and it’s JUST as guess, he STILL supports the model since the ACN Video Phone will be featured on this weekends episode of Celebrity Apprentice. (Gee, ya think?!)

The celebrity contestants will be tasked this weekend with developing a launch event to showcase the new ACN Video Phone technology. The hope is that this new ACN Video Phone will change the way people communicate by allowing them to see the person they are talking to, not just hear their voice on the line; therefore celebrity contestants will be judged on how much energy, excitement and emotional appeal they convey in their unveiling.

“The Celebrity Apprentice is an opportunity for ACN like none other. We are excited about having the celebrities unveil our ACN Video Phone to the world. This is a break-through technology that will literally revolutionize the way we communicate and will be in millions of homes in the near future,” said ACN President and Co-Founder, Greg Provenzano.

I have no idea if it’s going to revolutionize the way we communicate or not, but the fact of the matter is that this video phone is distributed though a network marketing business model and another member of the DSA. The company itself isn’t bad either, as I have lots of friends with the company and ACN has been in business nearly two decades and operates in 20 countries on three continents. My guess is that after all these years and so many countries it would be much harder for Greg Provenzano to skip town with all the millions he’s made off the backs of the Reps who actually get suckered into this type of marketing scheme. (One would think that he would have run off with all this money long ago based on what some claim about MLM Founders, but some still hold out hope I’m sure.)

ACN offers everyday services including local and long distance calling, Internet and wireless services, satellite TV and home security. In addition, the company offers digital phone service with video phones – the very latest in communications technology that is simple to use and requires a high speed broadband connection.

“I’ve come to know Greg, Robert, Tony and Mike, the Co-Founders of ACN, very well. They have built a terrific company and their new ACN Video Phone is amazing. I simply can’t imagine anyone using this video phone and not loving it. I can’t wait to see how our Celebrity Apprentice Teams launch it to the world!” stated Donald J. Trump.

If you’ve ever read “Why We Want You to Be Rich” you would know why Donald Trump supports and believes in the MLM model. (Although it’s not a book about MLM, but about being in business for yourself.) MLM is simply a business model, like any other, and some of the features Trump likes about MLM’s are low startup costs, being in business with others, and the opportunity to make as much as you want based on results. Nor does the book sugar coat any ideas of smooth sailing or false promises in business. You may have read that Trump Entertainment has filed for Chapter 11 Bankruptcy Protection, (for the third time no less) and l recently found out that GoTrump.com is now defunct. In case you hadn’t noticed, these are some tough economic times, but even in the midst of these times, Donald Trump doesn’t seem to stop moving forward with ideas and principles that have made him his BILLIONS to begin with.

I would imagine there will be some who will attempt to distract you with this Chapter 11 Bankruptcy in an attempt to discredit Donald Trump as being someone you should listen to when it comes to financial independence. It’s entirely up to you if you want to listen to that. Myself however, I’d consider the net worth of the person who’s attempting to keep you at the same level they are, which is more than likely broke.

Instead, I’d suggest you not only watch this Sunday night form 9 to 11PM EST, but find a product in the Direct Sales Industry that you can be passionate about and get to work on creating something for yourself. It may not happen for you the next day, the next week, the next month, or even the next year, but if you stick with it and do what other successful people do it will come.

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You may be wondering, who in the WORLD is Mrs. Albee? She’s certainly not a household name. As a matter of fact I never heard of the name before her name popped up doing a little research yesterday. Before I divulge who this Albee woman is, I saw in interesting commercial yesterday afternoon, with a message similar to the one I was introduced to at the National Convention.

How to recession proof your income.

Take a quick look at the video found on the AVON web site (bottom right hand corner) and a solid argument why AVON is a great way to produce the extra income needed in these difficult times. With all the news about layoffs, bankruptcies, and the recession it’s difficult to find solutions to combat the worst economic condition this country has faced in 70 years. While there are a number of companies who were around 70 years ago, not many know that there were a couple of Network Marketing Companies around at that time, one of them being AVON. Although AVON was known as the California Perfume Company back then. The name was changed to AVON back in 1939.

While YTB has taken a considerable amount of flak for producing our “Recession Proof” DVD to offer a legitimate alternative to our economic times, this message was produced to help the members of the Director Selling Assoication. (An Association who’s been around since 1910.)

I know there are a lot of critics out there who spend a considerable amount of time posting and telling you that Network Marketing is nothing more than a pyramid scheme. If you find one of these critics, you might want to ask them about their personal experience in the industry. I find it interesting that I can’t be called a Travel Agent because I don’t have the proper experience or training, but these same individuals have no problem telling me that Network Marketing is a scam without one ounce of experience in my industry.

For some reason the same rules don’t apply to them. They’ve been given a pass, simply because they “researched” the industry. (From the likes of guys like Fitzpatrick or Taylor more than likely.) Trust me, I’ve had my share of experience with critics, and while I do enjoy a good debate, after you’ve been in this industry for as long as I have, critics start running out of excuses and start with personal attacks. Why because they can’t answer the tough questions.

Here’s a good example; Have you heard this story?

Network Marketing companies are doomed to fail, flawed, because the model will eventually run out of “suckers” to recruit.

If that’s the case than WHY has AVON, been around since 1886 and STILL not run out of people (sorry, suckers) who sell this product to consumers? I mean come on people, when does the statute of limitations run out on this type of baloney? The truth is, this notion of running out of people has never happened in the entire history of the MLM model, which is more than a century old. For a listing of some of the oldest and most prominent Network Marketing Companies in the industry, you can find a listing on the DSA web site. And none of them have “run out of suckers” even if they’ve been around for decades.

Yet this notion about the pyramid crumbling still abounds by those who choose to ignore the most prominent and respected companies in the industry today.

Another interesting note about these companies; I can’t seem to find any information about any of them laying off any of their representatives. Strange how that works. Why haven’t we seen stories like we have for Liberty Travel or the long list of layoffs connected to the traditional models popping up with Network Marketing Companies? It was my understanding, according to critics at least, that working for a traditional company was more secure, a better deal? Based on the list I posted last month, there were more than 200,000 jobs lost due to pink slips, (and that’s just a sampling of the total amount) yet, not one word about any Network Marketing Companies laying off its Independent Representatives. True, there are those that quit on their own, but not one was forced or pressured to do so to help the company remain solvent.

And as you’ve seen in this AVON commercial, like my agreement in YTB, I don’t have to worry about being laid off due to downsizing.

Which of course brings up the suits that are floating around right now that our critics would like you to believe will crush my tenure with YTB. My guess is that they choose to ignore the same stories said about Pre-Paid Legal back in 2002 when the company faced more than $750 Million in damages, far more than the $40 Million in assets it had. More recently, USANA faced the same type of suits from distributors in California. Funny how critics slammed both these companies at the time, but are not only still in business, but are profitable today.

Like much of the misinformation and spin out there on the internet from critics who have nothing better to do with their time but promote the doom and gloom, I’ll let those with the proper knowledge and experience, and time handle that mess. The simple filing of a lawsuit certainly doesn’t produce innocence or guilt, that’s what the legal process is for. While many didn’t give YTB a chance to make it this far, according to some, the company should have folded YEARS ago, it dosen’t seem to bother or stop the company from executing plans that have been in the works since its inception.

I’ve seen plenty of changes and advancements with YTB over my years. Like AVON, it’s a work in progress. We simply roll with the times.

I wonder what Mrs. Albee would think of AVON today? Wonder if she would even recognize the name or the products for that matter?

And just who is Mrs. Albee? AVON’s first Independent Representative of the California Perfume Company. The date, was 1886, and if she still survived, she’s have one heck of an organization under her.

I guess getting in early does have it’s advantages. ;-P

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I read somewhere that someone was a little frustrated over the hiring of James Tackett as YTB’s Chief Marketing Officer. The premise as it’s always been with the analyst who always has an opinion on just about…sorry, make that every move YTB makes is none other than “lack of experience”.

There’s a new twist huh?

Being highly visual and auditory in my kinesthetic learning I’ve always enjoyed quality production work. Being introduced to James work during the 2007 National Convention, I knew instantly that our company would have been wise to cultivate its relationship with what was then Video Plus. All the big dogs in the industry use them and they certainly add a level of professionalism in the Direct Sales Industry you don’t find anywhere else. To attract talent from the Video Plus pool to work full time with our company speaks volumes about what he thinks about the direction of our company.

After seeing what James has just rolled out, maybe the self proclaimed analyst should have held off just a bit to see what our Marketing Officer could produce for our company before he lodged yet another foot the increasingly overweening mouth of his. (It never ceases to amaze me how he does this, poor guy!)

YTB has two new PowerPoint presentations to market; one for our Travel Company selling travel, and a second for those who would like to market the Travel Company. DVD’s of this presentation can be acquired by the end of the week. The look and feel of these two presentations are dead on mark both visually and in content. When I saw them, I had to e-mail James that I wanted to kiss him.

Although he declined the kiss, he was very appreciative of my gratitude.

What’s most impressive about all this is how he actually took the time to listen to those of us out in the field, industry leaders, and key studies to implemented stats and experiences that were “must haves” due to the current conditions of YTB and the industry as a whole. You may notice a key phrase “If you had more time and more money”, and you may also notice key industry stats from a group called PhoCusWright during the presentation.

And yes, the current state of our critics.

While the PowerPoint and DVD doesn’t really drive this home the way our flash presentation does, I find it fitting that we are telling it like it is on the very medium they are, over the internet.

Ours message however, happens to have a lot more class.

You can now enjoy a brand new flash presentation on your own Marketing site. (Found under the blue “View the Company Presentation” button.) Pay particular attention at around the 1:30 mark and again around the 5:00 mark and enjoy.

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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The Direct Selling Association has just approved the application for YTB as a member of it’s prestigious organization.

DSA is the national trade association representing companies that manufacture and sell products and services sold directly to consumers, primarily through an independent contractor sales force. It is estimated that 14.1 Million Americans participate in a Direct Sales Organization of some type and the numbers are increasing rapidly each year. Currently, membership has been limited to only 216 organizations out of the thousands of companies who participate in Direct Sales.

The mission of the DSA is ‘to protect, serve and promote the effectiveness of member companies and the independent business people they represent. To ensure that the marketing by member companies of products and/or the direct sales opportunity is conducted with the highest level of business ethics and service to consumers.’ Each DSA member company pledges to abide by the Code of Ethics’ standards and procedures as a condition of admission and continuing membership in DSA. This Code of Ethics speaks to both the consumer and the seller, and ensures that member companies will make no statements or promises that might mislead either consumers or prospective sales people.

The DSA Code of Ethics expressly prohibits pyramid schemes, deceptive or unlawful consumer or recruiting practices, misrepresentation of earning or sales potential, inventory loading and unreasonable entrance fees.

All applications take well over a year to complete, and during this time, the marketing and business plans of YTB were reviewed to ensure compliance with all provisions of DSA’s Code of Ethics.

Other companies who were recognized as part of the DSA and are new members with YTB Travel Networkinclude:

• Agel Enterprises, LLC (Nutritional Supplements)
• B’s Purses & Accessories (Fashion Accessories)
• Big Ear, Inc. (Custom Ear Products)
• Blessings Unlimited (Giftware, Religious Books/Gifts)
• CyberWize (Nutritional Supplements, Health/Wellness/Fitness)
• Family and Friends Financial (Financial Services)
• Genesis Secret (Nutritional Supplements)
• Jeunique International, Inc. (Nutritional Supplements, Cosmetics, Jewelry, Lingerie/Sleepwear, Skincare)
• Livinity, Inc. (Health/Fitness/Wellness, Personal Care)
• Traci Lynn Fashion Jewelry, LLC (Fashion Accessories, Jewelry)
• YTB, Inc. (Travel)

If you are part of this list feel free to give a shout!

Whooo Hoooo!

Congratulations to all who have joined the DSA!

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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