They simply find the people who are ready for them.

As I sit here on the eve of another YTB / ZamZuu National Convention in St. Louis, I’m astounded how this company has changed my life to look for opportunity. How it’s prepared and molded my mind for business success. I’ve now overcome the fear of the word “no”, and in that same vein – it’s helped me help others who were willing and open to opportunity themselves.

Not everyone has taken advantage of the opportunities presented to them. I think it was Edison who said “Opportunity is missed by most people because it is dressed in overalls and looks like work.” There’s a reason why the word “work” is placed in this industry we call Net”work” Marketing.

If you really study the MLM model, and become a student of the industry you’ll find that this model instills a work ethic and business savvy that you won’t find in any school. It lays a foundation of real – practical business principles and practices that you just can’t find anywhere else.

That being said – I realize that there are so called “experts” out there who will attempt to argue the points I’ve laid claim to above. You (and they) know the ones that I’m talking about. The obnoxious loud mouths who believe they know better than we do – who have it all figured out. Keep in mind that these are the same jerks who warned everyone three years ago that YTB was going to be shut down by the California Attorney General on the eve of the 2008 National Convention. Their experience has taught them that a company that finds themselves in the midst of a $25 million lawsuit will fold like a wet noodle.

I’ve seen instances of companies actually crumbling for far less money and vicious accusations or monetary compensation – but then again, the examples I can recall are traditional business models – not Network Marketing companies.

Companies like Amway, Herbalife, PrePaid Legal, USANA, NuSkin, and YTB have all been victimized by lawsuits claiming they’re some sort of scam and survived because these so called “experts” who get their little panties in a wad aren’t the business minds, or protectors of industry and justice they claim to be. At most, they’re opportunists themselves who take advantage of people’s fears and insecurity instead of instilling rational and logical thinking. It’s simply a chance for them to grab the spotlight and make themselves feel important.

There’s an ancient Chinese proverb I saw just the other day. “Those people who judge a books by their covers…..have difficulty reading!” When it comes to my experience with YTB and critics, that’s about as close to reality as it comes. With some of the outlandish, bizarre and irrational statements I’ve seen over the years surrounding not only MLM but YTB specifically by these people, that proverb pretty much nails it.

Something else I’ve learned over the years about these “experts”. When it comes to owning up to mistakes, inaccurate speculation, or just plain lies – they’re cowards. Actually, their mind, (more accurately “ego”) won’t allow them to admit they might be wrong. This perception they have is the only thing they have to hang on too.

Let me give you an example.

Last week, I was talking with one of our Directors about the once infamous John Frenaye. If there’s anyone who’s fallen prey to speculation and rumors it’s John. The guy would fall for just about anything posted on the internet as “truth” or “fact” if it has a negative ring to it. Even when there nothing there, he’ll manage to create it just to grab some attention. You can only imagine how “excited” John must have been when word of the California lawsuit was announced the night before the 2008 Convention. You’d think the simple filling of this suit meant it was a done deal the way he sensationalized the cover of this suit.

But those of us who went beyond the simple cover, and actually read the verbiage and actually comprehend our business had a completely different take. So much so, that this Director made a bet with Mr. Frenaye.

Sometime after the suit was filed, the two made this gentlemen’s bet. If the suit was indeed accurate, John would get what he wanted. The total and complete illumination of a so called pariah in an industry he actually doesn’t own but merely works in.

If however the suit wasn’t successful in shutting down YTB like Jerry Brown boldly proclaimed he could do – there would be a public apology by John at the next National Convention in St. Louis.

While there was an attempt to make some sort of assurances that John would keep his word on this – according to the account of the Director who made this bet – John’s enormous ego wouldn’t permit him to even speculate any possibility that YTB could survive the cover of the claim.

The National Convention in St. Louis this week will be the third since the suit was first announced in 2008. Along the way there was a $100 Million Class Action filed which has been thrown out of court more times than a cat has lives, and another suit filed by the Illinois Attorney General that honestly just sat there collecting dust for two years before it quietly went away.

John being the gullible and clueless soul that he is obviously took the bet. In his mind – the cover matched his perception, and there was just no way on God’s green earth that he’d ever have to muster up any type of apology with these kind of stakes stacked up against a bunch of lowly MLM Yahoos.

Now I can understand the absence of a full-fledged apology in 2009. While John had certainly speculated that bankruptcy or the YTB Founders riding off into the sunset with everyone’s money was an absolute certainty by the time we all got together in St. Louis at the time, none of the facts about our model had really come to light a year later. Nor were any of the suits either settled or thrown out of court outright.

I’ll even let 2010 slide. He was after all holding on to a thread of hope that the laws as they’re currently written in Illinois would magically change or be re-written in his favor.

However, it’s now 2011 and all three suits have either been settled both legally and monetarily or been pummeled to death by the court system as being “redundant, immaterial, impertinent, or scandalous matter”.

So that begs a very serious question. Could this be the year that YTB gets the apology from this once infamous critic who now finds himself on the wrong end of this bet?

Honestly, I doubt it. Cowards like John and the other critics who have quietly removed themselves from the soap boxes they once stood on just don’t have it in them. The opportunity to correct the years of slander, malicious abuse and misleading information posted on No Travel MLMs will never go away.

Unfortunately, I don’t see John being ready. A far better alternative is to just quietly fade away like he has. However, because YTB will continue to hold National Conventions like the one this week in St. Louis – the opportunity for him to man up and do so will never go away. ;-P

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UPDATE: It’s a miracle!! The witch is not dead. Actually – I think the proper word right now would be “irritated”. (By yours truly.) Within two hours of posting this – our boy John pulled up a month and a half old rant he never bothered to publish to save face. (Hell, even my wife warned me that what would happen.)

Not too upset. He’s supplied some of the best content and some really great laughs over the years. Based on his history, and the outdated rant, I see no evidence that will change.

~~~

Honestly, I never thought this day would come. I’ve run into my share of zealots and cynics over the years, but have never seen the likes of anyone so obsessed and disturbed as the “Coach” of the Anti-MLM Travel crowd. By default, anyone in YTB would know that person to be John W. Frenaye. One of the most arrogant, confused, and condescending dolts I’ve ever witnessed during my tenure with YTB.

I first caught a glimpse of John’s irritation with YTB back in 2007 with an article he wrote using MSNBC as his platform. It was his last article for MSNBC. You can only imagine how unamused the editors of MSNBC were with anyone “double dog daring” folks like John did for that soap box article. His last rant on MSNBC however was only the beginning of the type of outlandish and eccentric stunts pulled over the next 3 to 4 years of a one man battle to rid the industry of Travel MLM’s.

A few short months later John showed up as a commenter on our blog in an apparent attempt to educate me on his “issues” with Travel MLM’s. I still remember the coy attitude and the intimidation tactic – as if he had it all figured out. It was to become a trademark of the almighty Frenaye. At the time however, I did see John as both a challenge and an opportunity to correct not just misconceptions and misrepresentations the industry had about MLM – but bold face lies about our people our Founders, and our company.

I’ll always give anyone the benefit of the doubt. Call it an asset or a fault, but I did befriend John because I did agree with a few minor points and issues that needed to be cleaned up in our industry. One of those issues being a love of travel and service to others. Perks in our industry known as FAM’s are a privilege and a tool to sell more travel to paying customers – not a right simply because you call yourself a “Travel Agent”. MLM is a business, not some discount program or get rich quick scheme.

And that’s how our discussions began.

When it was my turn to clear the air that nobody actually paid for the opportunity to recruit others, or that gross travel sales were actually 4 to 5 times the amount of travel website sales – that’s where we ran into problems. See, John, like so many other zealots who think they’re the bees knees find it difficult to communicate, learn, and educate themselves to find a resolution. I suppose the reason for this is that if they actually did – there wouldn’t even be an issue. Zealots need controversy in order to maintain their charade.

I don’t know if you’ve ever seen the movie Network. It’s a 1976 film that takes a cynical look at TV networks exploits that stars a very deranged ex-TV anchor. The film has one very famous quote that I’m sure you’ve heard of: “I’m mad as hell, and I’m not going to take it anymore.“

That’s John Frenaye in a nutshell. What John saw in YTB at the time, was the biggest – baddest Travel MLM out there. Remember, nobody was able to do what YTB did – they all folded before YTB Travel came along. Sure, other Travel MLM’s were a nuisance and frustrating – but since they were so short lived – they weren’t any real threat.

YTB was a different animal all together – it had legitimacy attached to it. Carnival Pinnacle Awards and listings smack dab in the middle of Travel Weekly’s Power List aren’t something Travel MLM’s are even capable of doing in the eyes of an anti-MLM zealot. And because YTB was morphing into a host agency powerhouse, the only thing John could do was go on a rampage for the next couple of years, finding (or fabricating) any issue he could dream up to shame YTB into submission.

I can’t complain too much because he gave me some fabulous content to show how you should never just walk – but run from zealots like John if you want anything close to sanity or the truth.

Some of my favorites include:

• An amended Class Action suit John dubbed was “powerful” yet was thrown out of court just days later for being “redundant, immaterial, impertinent, or scandalous matter”. (Boy – does that shoe fit huh?!)
• The claims that Candi May couldn’t possibly be a legitimate Travel Agent, or had been courted by Carlson Wagonlit only to find YTB as a better alternative.
• When CLIA slapped John with his hands in the cookie jar over claims that CLIA was playing favorites with YTB and not abiding by the rules set for all agencies.
• The church parsonage which Coach Tomer and Chris donated to a church – which John conveniently spinned into a “lease”. (The idiot even provided the court documents himself to show it was a legitimate donation.)
• The perfect “Gotcha” turned sour. An outdated 32 year old law in Rhode Island which John dug up that required all Agents to be bonded. That is, until John brought attention to it – and instead of enforcing it, Rhode Island repealed the outdated law.
• And of course we can’t forget John’s hopes and the dreams that were dashed in both California and Illinois shutting YTB down and ending our existence all together.

I’ve lost count how many times we were warned that Coach, Scott, and Kim would ride off into the sunset. The warnings of bankruptcy. How the stock was being manipulated. And the ultimate dream – how YTB would get out of the travel industry all together.

Aside from being proven wrong and outed for outlandish and false claims so many times over the years – probably the straw that broke this dolts back was the revelation that John really wasn’t the saint he claimed to be was made public.

Look – nobody’s perfect and we all make mistakes. Lord knows I’ve made my share in my lifetime and so has YTB. The key difference between someone like me and a company like YTB is that we can at least acknowledge we’re not perfect and either make amends and/or correct the mistake.

And it’s that type of acceptance and humility that enables me to keep writing here and YTB to keep selling travel during events like we had last night with Sandals.

John, on the other hand has apparently moved on. While his charade and escapades will be documented on the Internet forever, like the comments section that he was once so proud of haven’t been updated in almost a month. Best I can tell, he’s found another hobby with yet another startup and another site called Eye On Annapolis. It has nothing to do with travel or MLM’s thank goodness. It’s more like a city beat type thing and frankly – I’m pulling for him that it works.

I honestly don’t know if John will ever come to terms with the MLM model. A good portion of these types of Zealots never do because emotion often overrides logic and common sense. In that same vein however – logic never changes like emotions do and that’s why MLM and Direct Sales has survived for more than a Century.

Letting go of a three or four year obsession however is a step in the right direction. The daily rants and spinning have finally come to an end for both John and YTB. The end of another chapter in our journey together in an industry I still love and respect – both MLM and travel.

John’s relevance in the travel industry started to erode with his “double dog dare” in 2007. It’s been a very slow and arduous process over the years. I’m not going to speculate his escapades are completely dead like the Wicked Witch of the West (although it’s a fun title) but the further we get away from this type of behavior the better off the travel industry as a whole will be.

It’s a bad mix nobody really needs.

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Not many companies make it past their first year in business. Even fewer make it past year 3. If a company manages to make it through year 5, most business experts will tell you that the company has passed their litmus test concerning “risk”.

Some will tell you MLM has even a slimmer chance of making it past year one. Even if it does make it past the first year, there’s this myth that MLM is nothing more than a house of cards that will eventually topple. These aren’t “experts” mind you, (not by any stretch of the imagination) they’re just people who regurgitate what they were told or what they’ve read somewhere else.

Truth be told, when you look at Amway, Avon, Mary Kay, Tupperware, NuSkin, PrePaid Legal, and Primerica, these examples dispel the myth with documented cases that MLM can be built to last for decades. In Avon’s case, more than a century.

Before YTB, not a single MLM Travel Program made the cut in the travel industry. I can’t tell you all the reasons why these MLM’s failed, mostly because they were here and gone long before I came into the picture in January 2005. I’ve read about dozens of them over the years and can only guess at this point what sealed their ultimate demise. When YTB Travel Network entered the picture however, there was an enormous shift in the way people actually booked travel – moving from “brick and mortar” to “click and order”. There was also a simple shift in mindset and the companies focus.

In 2001, it was the first really big wave of retail sales moving to the internet. Companies like Priceline, Travelocity, and Expedia were making massive jumps in sales as people found it much more convenient to book their own travel on line. Today, Expedia tops the list of Travel Agencies – doing more business than any other “brick and mortar” out there.

Me? I just wanted a small slice of the pie. So I signed up, bought a domain, and BandBVacations.com was born in January 2005. Other than my first full year in business, I’ve made money selling travel every year since. The only reason why my first year didn’t produce a profit was because all the travel “booked” in 2005 were for trips to be “consumed” in 2006. (You don’t get paid in this industry until after the travel has been consumed.) Once a stream of bookings were created after the first year, it’s been profitable every year since – selling “travel”.

From what I’ve read and heard elsewhere, the problem with Travel MLM’s was they were nothing but “card mills”. Pitching that the average “Joe” had an opportunity to travel on the cheap using travel agent credentials. That wasn’t YTB’s focus however. (Although some in the company did abuse that privilege.)

YTB’s goal was much bigger and far more threatening to the industry – to become the largest supplier of travel in the world.

Pretty big goal to be sure. Some would say it was outrageous – even outlandish. Regardless of either opinion, it’s the one key difference that cemented YTB’s success in the industry, making YTB Travel Network the first Travel MLM – and to this day, the only Travel MLM that really matters in the industry.

So, how did YTB Travel Network do in accomplishing its goal of being the largest supplier of travel in 10 years? Depends on how you look at it. While it’s true the company fell woefully short by billions in taking over the number one spot – by projecting and reaching for such a massive goal, the company has solidified itself smack dab in the middle of some of the biggest, most respected agencies in the country.

Not bad for a bunch of MLM Yahoo’s. ;-P

That doesn’t mean however, that YTB Travel Network totally escapes what I’ve come to recognize as nothing more than “guilt by association”. The Network Marketing industry is riddled with a plethora of myths and misconceptions. Combine that with the negative impact other Travel MLM’s had when they entered and then abused the travel industry. What you stir up are intense emotions in traditional sectors of the industry – and quite frankly rightfully so.

You can’t slap a standard – one size fits all label on YTB however. The company broke that mold when it was founded 10 years ago. If the company and its model was indeed the same as all the others, it would have suffered the same fate. I might add that that the company has withstood what most would assume would be insurmountable odds over the last few years. In reality, losing a single cruise line couldn’t possibly have the impact the industry was hoping for. True, it might have worked if everyone would have piled on like traditionalists had hoped for. But when you’re dealing with true business minds and logic instead of pure emotion and anger, that ship never sailed. Vendors weren’t that dumb. Didn’t matter what the “perception” was – YTB as a whole sold a boat load of travel.

Then there’s IATAN. Again, if the perception was correct as stated by IATA that the company was in the business of “selling” credentials to third parties, the company would have folded long ago. Others may have done it, but in YTB – the only way to obtain that credential was to earn it like everyone else – by selling travel. When the company tried to correct the error and appeal – they snubbed their nose at us. Since credentials, and free rides was merely a perception or label, we moved on and continued with our core model and product – producing even more sales and more bookings without the almighty IATAN at our side.

After the attempt to cut off suppliers and IATA failed, California filed a $25 million law suit with claims the company was illegal pyramid just one day before the 2008 Convention. Problem with that was Jerry Brown, the Attorney General at the time who filed the suit, figured out that nobody has ever paid for the “opportunity to recruit others”. (A very common myth in the industry.) Regardless, California still collected $875 thousand in the deal for themselves, leaving the last tenth of the million dollar settlement to the victims Jerry Brown boldly claimed he was trying to protect.

The Government will always get theirs – and since we did nothing illegal we kept our business.

Biggest problem I see with critics who enjoy slamming and shaming the company and its people – is they can’t correlate “BandBVacations.com” with an actual “product”. Never understood that – really. Nexion sells several hosting plans, TravelQuest does as well, even Expedia sells “booking engines” to those looking to get into the travel business.

But try to do that with an MLM – and suddenly the “value” is nonexistent simply because these minions fear the word recruiting. A phobia some never really overcome or grasp. Reality is, all those Hosting Agencies above are attempting to “recruit” you. They need new blood – new recruits in order to maintain and build their brand.

Regardless of what appears to be an obvious oversight regarding the word “product” or even “value” the company has learned how to “dumb it down” so that anyone, (including staunch critics) can understand what we are selling and being paid on moving into its next 10 years of business. (Truthfully, nobody’s really that dumb, they just like to play dumb on the Internet.)

As the parent company YTB International moves into the next 10 years of business, it’s expanded it’s product offering to another huge boom on the Internet.

Online shopping.

Like Travel, YTB or ZamZuu isn’t the first to market this type of product in the industry. Nor will the company be the first to successfully market an online shopping experience in the industry. But there will be a key difference in how commissions are paid to the Representative who sells it.

What hasn’t changed is the “fee” to become a Representative of the company. It’s free – nor are there any requirements to purchase any of the products associated with the company. But the company has finally come up with a way to ease the fears and phobias surrounding paying commissions in Network Marketing with what’s called a Z-Kit.

It’s silly really – not the actual product mind you, but the idea that people actually need a physical product they can feel – touch – and grasp in our industry in order to calm the nerves. Government and society has a lot to do with that. People like me (or others in the company) who can think on their own in logical, rational terms are in the minority. We have to appear to be like everyone else in order to be accepted – or in this case – to be able to keep jerks like Jerry Brown and Lisa Madigan from filing outlandish lawsuits with claims that it’s some sort of pyramid.

What ever happened to logic, and independent thinking?

The problem isn’t the industry – it’s outsiders who perceive the industry through a fixed lens that create the problems. While Royal Caribbean, IATA, Jerry Brown and Lisa Madigan all made bold claims about who we are and what we do. None of them hit the nail on the head.

How can I make such a bold claim? I don’t – but my website does. See, it’s still here – regardless of all the overzealous and wild claims to the contrary.

While I didn’t join the company when it first evolved 10 years ago – my bet is that it will still be here during the next 10 years. That excites some, and terrifies others. Regardless of which end of the spectrum you fall in – BandBVacations.com isn’t you’re choice to make.

It’s mine – and will be for decades to come. And for that I am grateful that there is somebody out there that still relishes and promotes independence, logic, and value in this world.

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I mentioned Tuesday that YTB always has a number of blockbuster announcements during Coach’s Birthday Bash. Word has started to get out about some of the upcoming releases and the company isn’t wasting any time in getting out the good word.

Not only is the company gearing up for its annual Birthday Bash next week on January 11th – but a date has been set for another ZamFest party the last half of January – from the 17th to the 31st. (Also found on www.ZamZuuTV.com.) The theme for this party is geared around better health. With the New Year, we’re all thinking about New Year’s Resolutions. For many, that resolution centers on better health. To kick off the New Year, ZamFest is throwing resolutions out the window and focusing on solutions. We don’t just talk about improving our health; we’re actually doing it.

The company will close out the month with Carnival for a Winter Warm Up Sail-A-Thon January, 27 from 6:00 pm to 10:00 pm Central with some great deals to Europe and the Caribbean in 2011 and beyond. More information can be found here, or on BandBVacations.com during the week of the event.

Speaking of Carnival – sales are up. We know that because YTB Travel Network’s commission percentage went back up to previous levels. (You can find the percentages in your Travel Portal.) All the doom and gloom last year from the peanut gallery (minus the “pea”) was nothing more than hype. They never can figure out which way is up or even accurate. We however, told you sales were on the rebound, and based on this commission percentage increase – we were right on mark. Regardless of right or wrong, it never would have happened if our Agents didn’t take responsibility on their own and give a little more love to a great cruise line that has taken very good care of us over the years.

We didn’t whine about it – we actually did something about it to rectify the situation so that everybody wins. That’s the YTB way.

And lastly, you’ll notice a change in our air, car and hotel products.

Back when we first started with YTB, I remember a bidding war between Priceline and Travelocity for the privilege to host these products on our sites. Priceline was a good vendor for us then, but Travelocity wanted it more. A bidding war broke out between the two and what ripped Priceline off our sites and slid Travelocity in was a better deal for the Agents.

After a four year relationship with Travelocity, Orbitz has now taken over the huge influx of air, car and hotel bookings made through YTB Travel Network.

Orbitz Worldwide has replaced Travelocity Partner Network as the provider of air, car and hotel products and is now the exclusive provider for these commodity products on the YTB Travel Network booking engine. YTB Travel Network has also negotiated a contract with Orbitz Worldwide that, effective February 1, 2011, will include a commission on airline bookings while continuing the elimination of a service fee. Please see the updated commission rates in the Commission section of the My Account tab in the Travel Portal.

Commissions earned on air, car and hotel products will now be paid based on the date of consumption, not the booking date. The date of consumption is defined as the date of completed travel. Nothing new there – as it’s in line with how the rest of the industry pays.

Customer Profiles was a huge factor for years for the field and it looks like Orbitz came through for us here as well. The initial launch of the Orbitz Worldwide Customer Profile is coming in February 2011. The new profile feature will provide the ability to use a basic customer profile that will store the customer name and credit card. Later this year this feature will be greatly enhanced. The new functionality will allow:

• Storage and use of TSA-relevant information (including birth date) for booking
• Storage and use in booking of multiple credit cards
• Storage and use in booking of loyalty program information for Air, Hotel and Car

Other new features supplied by Orbitz are marketing and promotion which will also be rolled out during the year.

The Orbitz deal utilizes the NeatAgent application tailored specifically for traditional bricks and mortar travel agencies. According to their website “These traditional agencies provide comprehensive travel services for their clients in person or over the telephone and represent more than 60% of today’s travel distribution”.

In other words – when you read the hype from traditionalists – just know they use it too. Just tell them “Thanks for sharing” and get back to work. (An idea they may want to consider to rectify their own dismal existence.)

Speaking of traditionalists – they never dreamed YTB Travel Network would even see 2011. We were supposed to be long gone according to them. (Wishful thinking at this point.) YTB Travel Network is alive and well and as long as they let us – we’ll continue play the role of thorn in side. (It’s their choice after all – not ours.)

The way I see it – looks like YTB Travel Network is packing more powder to shoot more cannon balls across their bow to let them know we have absolutely no plans of going away.

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The internet is a real beast. I’m absolutely amazed at how this virtual world, with its bits and bytes of information, zoom all over the world at a moments notice. On Friday I wrote about watching the Emmy Award-winning ‘America’s Game’ and “The Story of the 2008 Pittsburgh Steelers”. During the program Ben Roethlisberger talked about a poem called “Don’t Quit”. Wanting to find out more, what do you think I did?

A.) Pick up the phone and call Ben cause we’re pretty tight.
B.) Access the huge library of poems and literature I have here at the house.
C.) Write a letter to NFL Films requesting a copy of the poem.
D.) Slide the laptop over and Google “Ben Roethlisberger Poem “Don’t Quit”

Of course the easiest and most logical answer here is the Google search, and while I’m not claiming any type of scientific data to back this up, it appeared to me at least, that this was the most logical answer for the vast majority of people who also watched the program wanting to read this poem. I typically have a slower readership on the weekends, but due to Google, Yahoo, and Bing searches, (and a first page ranking of my article) I saw a huge increase in traffic over the weekend.

While this is just one example, I see it all the time for all kinds of topics. When the Amended Class Action was thrown out, it created a huge frenzy of hits and activity. Same thing with the Travel Weekly Power List. Even the Expedia Settlement and the legal fiasco that Mann Bracken got themselves into has created traffic to this very site.

Fact is, the internet is ingrained into our culture and a very common tool for information and research.

We also use the Internet for buying the products and services we are researching. Back in 2001 three guys saw a paradigm shift from “Brick and Mortar” to “Click and Order” for the purchase of vacations and travel needs. Today, 4 of the Top 10 travel agencies are internet based, combining for $45 billion in travel services and vacation product sold. (Expedia, Travelocity, Priceline, and Orbitz.)

Because of this shift, YTB has expanded their product offering via a partnership with Asile19, and the development of shopYTB. The shopYTB program enables you, the online shopper, to access the “click and order” internet sites of hundreds of stores. (Sears.com, BestBuy.com, Walmart.com, Target.com) through a special portal that not only enables you to buy directly from the stores themselves, but provides cash back to you for shopping online.

While actual numbers concerning the amount of products and services sold on the internet are difficult to obtain, (or at least difficult to figure out who has the right number) we are seeing clear signs that the internet is a viable choice for purchasing product and services.

Over the weekend, I saw a very funny commercial that once again, prompted me to do a internet search to watch it again. After I was done laughing, I began to wonder why a company like Visa would even create a commercial promoting online buying? Could it be because there is a large enough segment of the buying public who are now looking to the Internet to make thier online purchases?

Nah, that’s just silly talk.

Speaking of silly, here’s the commercial. Hope you enjoy it as much as I did and that it not only puts a smile on your face, but makes you think…why did they create a commercial about purchasing product online?

Think about it.

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Welcome to the next phase of YTB 2.0.

A year ago YTB announced the “contemplation of a franchise” in a press release issued just before last years convention. Today that “contemplation” moves one step closer to “reality”.

We touched on this with Sunday’s newsletter and wanted impress on you how this phase of YTB 2.0 will change how many perceive our model. By this time you have come across people who have a difficult time understanding and accepting Network Marketing as a legitimate business model. People don’t actually know that the nations oldest Network Marketing Company started as the California Perfume Company back in 1886. (In 1939 they changed their name to Avon.) Mary Kay is another example of a very powerful and stable MLM that not only markets to the same demographic, but was founded 46 years ago in 1963. Neither company has run out of woman to recruit, while basically limiting both companies to half the world’s population. (There may however be a few males mixed in with either company.)

Yet there are those that fear that someone will be crushed by a huge pyramid when there is no one left.

The suit filed by California was a perfect example of the ignorance our society has surrounding MLM Models. Without verifying, without even looking at our two models, the “Description of the Action” in the settlement stated “Defendants’ marketing scheme effectively requires participants to purchase a website from Defendants and pay monthly fees for the opportunity to recruit others”.

You know that’s not true; we know that’s not true. (Not to mention illegal.) The fact remains however, that because California said so, a portion of society will take this as fact instead of verifying if a statement has value.

Even now, with California behind us, with YTB still standing, still sending out checks, still winning awards, still growing as a travel company, there are those that still allow a tiny portion of society to dictate what they think and what they believe.

If you’re reading this right now you have endured a smear campaign of ignorance and fear mongering that included false claims of a gigantic pyramid scheme which both pro and con believed would finish the company. We want to congratulate you for holding on to your dreams, your vision, and your beliefs. Nobody should have the power to take that away from you, and we know many have tried.

It’s time to raise the bar. It’s time to look for better quality, better intelligence, and better business minds.

We now have a tool in place that can turn the tables, promote professionalism, character, and strength and it starts with you.

Moving forward, all potential California participants are required to wait 14 days before they are able to purchase a YTB Travel Store, or become an Associate who sells Travel Stores. So what does the 14 Day cooling off period have to do with Franchises? We’re glad you asked. (And even if you didn’t we’re going to tell you anyway.)

During this time, potential participants will be given all the facts and figures concerning the purchase of a franchise. In the settlement agreement which was filed with the courts the Description of the Action it states:

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

We didn’t realize that we bought an on-line travel agency franchise until this was documented in the settlement. This is however a claim (Description of the Action) documented in the settlement filed with the courts.

We found the following reference in Franchising for Dummies by Michael Steid, and Dave Thomas. We’re NOT using this reference because we consider you a dummy, but because of its ability to describe franchising in a clear concise manor that we believe everyone will understand.

“Included in the regulations governing the sale of franchises is a cooling-off period called the ten-day rule. Franchisors are required to give their prospects a copy of the UFOC the first time they have a “personal” face-to-face meeting to discuss the purchase of the franchise, although most franchisors will provide the UFOC much earlier in the course of their discussion with a prospect. Franchisors must wait a minimum of ten business days after giving a prospect the UFOC before allowing the franchisee to sign the franchise agreement or pay any money to the franchisor. The purpose of the ten-day rule is to give you time to think about your decision.”

Please note that the 10 day rule requires 10 business days to expire. During the course of 10 business days you will have two weekends during that time for a total period of 14 days. If you would like to describe this as “10 business days” instead of “14 days”, you are welcome to do so, just as long as the word “business days” is made clear not to include Saturday or Sunday. (Six of one; a half dozen of the other.)

As we moved forward, the Settlement made with California also states:

8. Registration as a Franchise

No later than 30 days from the entry of Judgment, Defendants shall see the approval of the California Department of Corporations (DOC) and shall make their best efforts to obtain approval from the DOC to sell franchises. Any additional conditions or restrictions that my be required or imposed by the DOC for Defendants’ operation of a franchise shall also be required of or imposed on Defendants as part of this Judgment. If the DOC grants its approval for Defendants to sell franchises in California, Defendants shall begin offer such franchises for sale no later than 90 days from the date of the DOC approval. Neither the decision by the DOC regarding Defendants’ application to sell franchises in California, not the timing of that decision shall affect Defendants’ obligation to comply with any of the previsions of this Judgment.

There are 14 States that require Franchise Disclosures which include California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. Because of the one time expense of creating such materials, and our belief that a franchise model will increase retention because of it’s perceived value, YTB is moving forward with a franchise model both nationally and internationally.

This will take some time, and we do not know the exact date of the National completion at this time. However, once complete, YTB will be the largest franchise in history.

Some of you may be able to remember the 1984 Presidential Election between Walter Mondale and then sitting President Ronald Reagan. During the course of the debates that led up to the election, Mondale began to make Reagan’s advanced age an issue. President Reagan was the oldest President in history, and some of his staff commented that he was tired after the first debate with Mondale. In their second televised 90-minute debate in Kansas City, Reagan and Mondale debated on international policy and national defense.

Again the issue of age came up during the debate.

Reagan in his best awe shucks tone said, “I want you to know that also I will not make age an issue of this campaign. I am not going to exploit, for political purposes, my opponent’s youth and inexperience.“

Many didn’t like Ronald Reagan. (And you may be one of them.) Ronald Reagan was however a master in reframing and turning the tables on his opponents both within the political arena and around the world. Successful people and businesses turn apparent weakness into strength. They change history, and they change lives. We see California’s weakness and have now turned it into a strength moving forward.

Will everyone see it? Absolutely not. We were right on mark with the resurgence of activity and excuses on the forums, boards and blogs. Some still want to take your dreams and the power we talked about earlier. Some will still insist that YTB is nothing more than a “pyramid scheme”. Some will still laugh at you. If you want to give them that power, that’s entirely up to you. Why anyone would be willing to let others control and dictate what you think and how you feel is a completely foreign concept to us. Especially in a country such as ours during a weekend when we celebrate our Independence.

Remember, we need to raise the bar, not lower it. We joined YTB to pursue dreams not crush them. In the course of pursuing our dreams of owning a Home Based Business we bought into an MLM. What we’re going to end up with is a franchise.

The way we see it Scott was right…we’re bigger – stronger – superior in every way.

Who knew?

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The annual Power List from Travel Weekly currently ranks YTB International #25 for 2008 out of a record number of agencies this year with 62 companies with travel sales of more than $100 million. All of the agencies in this years Power List faced a common enemy during the latter part of the year, that being the economy. As we are now at the half way point of 2009, many on this years list are not as optimistic as they once were about travel sales and expect a decline anywhere between 15% – 25% between 2008 and 2009.

The economy is one thing, but when a company such as YTB has to endure fear based attacks from a small, yet extremely loud group of critics who desperately need to control free enterprise and exaggerate every move the company makes, is another. With the legal attacks combined with the mud thrown up on the internet via blogs, forums, and message boards, a year over year increase of any amount should show the stability and resolve of our model for anyone who has two wits about them.

Regardless of which side of the fence you reside, the following numbers appear in Travel Weekly’s 2009 Power List.

– 2008 Sales: $424.1 million
– Employees: 317
– Previous Ranking: 26
– ARC sales of $2.76 million
– 85% of sales from leisure travel
– Hosts 92,383 travel sellers
– Owns Rezconnect Technologies Inc.
– Publicly held

True, some spent the last year focused on creating excuses and never gave YTB a chance to survive and/or make this years Power List. Accusations of bankruptcy or being prohibited from conducting business outright started the second claims were filed by the State of California which magically appeared the day before the YTB’s National Convention in August of 2008. Its sad, but some appeared to have missed or simply forgot that there was a legal process that needed to take place. As we’ve seen so many times before, relying on negative speculation rather than facts can damage ones credibility as some sort of expert.

Few have also knocked the legitimacy of the Power List with any excuse they could come up with. It was last years list with a huge jump from #35 to #26 and 84% growth that more than likely had something to do with the desperate pleas posted for anyone who would listen to in order to stop YTB from co-existing with names like American Express, Carlson Wagonlit, Expedia, Travelocity, Orbitz, and Priceline.

With so much press and attention on YTB it’s not surprising that Travel Weekly once again made special note of our company in this years list.

One company that has seen its share of headlines recently is YTB (No. 25), a publicly traded multilevel marketer with and ARC appointment and a reported $424 million in travel sales, most of it through a network of tens of thousands of small hosted, work-from-home recruits.

A source of unending controversy since it first gained national attention a few years ago, YTB recently settled an action brought by the State of California that accused the company of operating an illegal pyramid scheme. Even if YTB succeeds in transforming itself into a franchise operation and fulfilling the other terms of the California settlement, the company is likely to remain a galvanizing force for friends and foes alike.

For the purposes of the Power List, however, only one thing matters: total sales. Although this number is not included in YTB’s annual financial report to the Securities and Exchange Commission, it is consistent with a company statement to the SEC.

“During fiscal 2007, the aggregate value of retail travel services that have been booked by our RTA’s and independent franchises surpassed $400 million”. YTB reported in the statement.

The company has stated that the total represents retail travel sales and excludes revenue from other activities.

Like it or not, YTB continues to make headlines in this industry because YTB is a major player when it comes to actual travel sales. A few clearly don’t understand the difference between gross sales and actual income generated from those sales reported in our SEC filings. If some can’t comprehend that it takes $424 million in sales to generate $27 million in actual revenue in the travel industry, I’d question how much they truly understand thier industry. However, because there’s a very clear and distinct fear surrounding MLM and recruiting, all focus and attention points directly at revenue generated from recruiting compared to income generated from travel. Those of us that can make the distinction between the two revenue streams have understood for years how silly such comparisons are. Why the perceptions between apples and oranges and these fears persists after all these years is a question I’ve long given up asking. 

I couldn’t possibly tell you what type of excuses will come from this years list. You can be assured that like other years, something will be pointed out here that will attempt to question the validity and accuracy of this report when it comes to YTB. In order to come up with these excuses however, desperate critics will need to toss out the fact that YTB is one of very few that are publicly traded companies who answer to the SEC. They will also toss out YTB’s appearance on this list for it’s third straight year. And lastly, the special notes surrounding YTB in Travel Weekly’s introduction, like last year will be completely ignored and the beliefs and opinions of these few critics will appear to some as an overriding and dominant fact, instead of desperate pleas for attention to make all things right with thier own little world.

There comes a time when you should stop and look at the reports such as this and compare them with all the excuses we’ve seen over the years. Demands for clarification or additional questions directed at YTB and Travel Weekly have played out for far too long. Both YTB and Travel Weekly don’t appear to be all that concerned, and continue to stick with the same qualifications they always have despite the pleas and concerns.

Some will continue as they always have because changing thier beliefs would be far too upsetting and create too much turmoil. Others however, will begin to see things for what they truly are. If you’re of the latter, I welcome you to the idea of MLM and Travel as major player in the Travel Industry.

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

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

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