A settlement that was suppose to set the record straight concerning YTB, it’s model, and it’s business practices is still somewhat of a circus out on the internet by a few clowns who think they’ve got this company pegged. Now that we have the settlement out in the open, and the public has access to the legal documents that were filed, I’m beginning to wonder how someone can in good conscious keep pitching the lies and myths about what YTB is or isn’t.
The twisting and spinning started at the very top with Attorney General’s press release that critics want to pitch as the be-all-end-all concerning the settlement, while most in YTB want to bring up the actual court documents that were filed as the final say in the matter. When the settlement was final I wrote that I was “taken aback” by the press release when I read a copy and paste of the Attorney General’s interpretation on one of the blogs. It wasn’t until I dug a little deeper and found the filing from the Attorney Generals web site that I found the actual court papers. Only then did I realized how the press release and the court documents didn’t match up. (And I’m stating that as politely as I possibly can.)
Even with the court documents, there are those that need to hammer away at their square peg to make it fit this round hole. I’m not sure at this point if some of the critics are just playing dumb or if they have no clue what’s about to transpire on Monday when YTB 2.0 is launched. I’ll help clue them in on Monday when all the income disclosure statements are made public and the terminology between Associate and Rep is made clear. What they think is going to handcuff the top recruiters in the company from earning what they want is shown to be yet another myth. I’m willing to bet there will be some outbursts about loopholes and how we should be drug into court for having a better understanding of the new rules than they do.
Oh…it’s going to be fun to watch! ;-P
In the meantime, since we all get a reprieve from “recruiting” this weekend due to the maintenance going on with our marketing sites, I wanted to share these gems with you. We found them on Yahoo Finance and I thought it would be a good read for helping separate fact from fiction. (There’s been a lot of that going on lately.) I thought it might come in handy for those times that someone finds the Attorney Generals press release and takes what is written as fact. Remember, you also have the court filing too, but this was actually well written and helps clarify what the new income disclosure statements have to say before they are released to the public on Monday.
Setting the Record Straight – Part 1 25-May-09 08:46 pm
In his opening statement and throughout his press release, Attorney General Brown continued to make disparaging and misleading comments (sixteen to be exact) about YTB and its operations – this in spite of the fact that his the CA AG agreed to and signed the Stipulation and Final Judgment which reads, “Nothing in this Stipulation or the Judgment shall be construed in this or in any other proceeding as an admission by any of the parties of any fact, conclusion of law, issue of law, or violation of law, nor shall compliance with the Judgment constitute or be construed as an admission by any of the parties of any fact, conclusion of law, issue of law, or violation of law.” View Court document: http://ag.ca.gov/cms_attachments/press/pdfs/n1737_ytbstipulatedjudgment.pdf
Let us not forget the fact that the State alleged certain wrong-doings and the Defendant denied any wrong doing in this filing, and after a series of meetings wherein all parties gained a better understanding of the facts, concessions were made on both sides, and the parties agreed to a settlement. If YTB were in fact guilty of operating a gigantic pyramid scheme, there would not have been a settlement.
Allow me to set the record straight on a few other points made in the CA AG press release
Setting the Record Straight – Part 2 25-May-09 08:49 pm
CA AG: “Until now, the only way that consumers could demonstrate the website is if they had already purchased one for $449.95. The stipulated judgment requires YTB to establish a free demonstration website that must be used when recruiting others.”
CA AG: “By contrast, recruiting others to purchase websites, and having those purchasers recruit others to purchase websites (and so on), was much more profitable. Members earned money based on how many websites they sold, as well as how many websites those they recruited sold. These multi-level sales, combined with the required purchase of the $449.95 website, formed the foundation of YTB’s pyramid scheme. “
FACT: Reps (those who sell travel websites) are NOT required to purchase the $449.95 website, and they are NOT charged a fee to become a Rep. Reps have access to existing websites, although many do want their own website for the same reasons as those who are purchasing a website to run a travel business.
FACT: YTB had 209,595 Reps at year end in 2008, and it had 89,826 travel site owners (TSOs), which means that 120,000 Reps did not purchase a website. Furthermore, not all of the TSOs are Reps, so the number of Reps who did not purchase a website is actually greater than 120,000.
Setting the Record Straight – Part 3 26-May-09 03:55 pm
CA AG: “YTB falsely promised customers they could get rich quick by selling travel online,” Brown said.
FACT: YTB makes it very clear at its meetings that this is not a “get-rich-quick” opportunity; it involves a lot of hard work. Anyone who has ever attended a convention or Red Carpet Day event knows this for a fact, because this is covered in detail at meetings, which are on video and verifiable. Disclosure statements are also posted at meetings.
CA AG: “In 2007, the annual median income for those selling travel was $39.00, less than one month’s cost to operate the website. The majority of consumers who purchased YTB websites made no money through the sale of travel, and many lost money through continued website operations.”
FACT: In 2008, the annual income of Referring Travel Agents (RTAs) who attended First Class Training was as follows: Low $7.92; Average $490.32; and High $26,966.10. The Annual Income of Affiliates (website owners who had not taken First Class Training) was as follows: Low $0.00, Average $143.37; High $25,368.62. In 2008, 43,670 (49%) of all website owners made no income, thereby reducing the average annual income to $111.26 (median income $49).
FACT: Travel Site Owners (TSOs) are free to cancel their websites at any time. There is no long-term commitment, and they can cancel at any time by notifying their bank or simply calling YTB customer service.
Setting the Record Straight – Part 4 26-May-09 03:56 pm
CA AG: “Until now, YTB has made wildly misleading claims about how much people can earn from selling travel. This included videos of YTB agents driving luxury cars and holding up $10,000 checks, and making misleading statements about millions of dollars earned in commissions.”
FACT: Reps do make high commissions by selling travel websites, and many of them do drive luxury cars, many earn $10,000 bonus checks, and many do live lifestyles that some people envy. This happens to be ONE of the business opportunities that exists at YTB; and if someone has the type of personality and ambition to build an organization of Reps to sell travel websites, then their income potential is only limited by the amount of time and effort they put into it.
FACT: People join YTB to sell travel, sell travel websites, or both. If someone wants to become a Referring Travel Agent (now called a Travel Site Owner) and build a travel business, they pay a $495 one-time fee and $49.95 per month for their travel website. The success of their travel business is based entirely on their efforts, and YTB provides them with an outstanding travel site with travel portals, search engines, exclusive YTB travel deals, and great training. Whether one signs up to sell travel or travel websites, YTB rewards Reps and TSOs with bonuses based on their levels of achievement. Remember that YTB sold $425 million in travel in 2008.
FACT: YTB has spent millions of dollars on the development of its sophisticated travel website and its business model, and they are continually making improvements to it. They provide training and benefits for those who want to sell travel and to those who want to sell travel websites. It’s unfortunate that the CA AG wants to penalize an individual for pursuing both opportunities.
Setting the Record Straight – Part 5 27-May-09 03:59 pm
CA AG: “Most YTB travel sellers make no money, and in fact rack up high costs.”
FACT: Those who are truly serious about building a travel business and put forth the time and effort can be successful. As stated previously, of the RTAs who took the time to complete and pass the First Class Training in 2008, the average annual income was $490.39, with the low being $7.52, and the high being $26,966.10. Some will see the TSO opportunity as a way to supplement their household income. Not everyone needs a five- or six-figure income, although with hard work, group bookings, and enough people booking through one’s site, it is possible.
FACT: A one-time fee of $495 is hardly unreasonable for a business start up, and the monthly cost of $49.95 for an online, professional travel website with all of the features mentioned above is extremely reasonable. I would hardly call that “racking up high costs,” as the CA AG has stated. Remember that YTB sold $425 million in travel in 2008.
FACT: A lot of people want the travel website so that they can book their own travel and refer family and friends to their site. They can plan family cruises or trips to places all around the world, and YTB offers a number of exclusive travel packages to places like China and the Holy Land. Additionally, YTB has partnered with a number of nationally-recognized companies to benefit YTB online store owners. To be more specific, following are just some of the benefits that are available exclusively to TSOs: Limited Medical Benefits that offer affordable coverage with no underwriting or pre-existing conditions; a discount program saving up to 60% on entertainment, theater, or online shopping; discounts on tax preparation, cellular service, office supplies, computers, and shipping; and, of course, an online shopping mall, where TSOs can earn cash back on virtually all their purchases at over 600 stores (Wal-Mart, Macy’s, Target, etc.), and they will earn a commission on purchases made by customers they have referrred, plus those who were referred by their customers and so on. One could own a travel site, pay $49.95 a month and never sell a penny’s worth of travel and still enjoy benefits that offset the monthly cost of the site.
Some people purchase a travel site with good intentions, but they never take the time or get serious about building a business. They love having the site, however, because it’s convenient to book their own travel, the site is easy to use, and it’s fun and exciting. It gives them an identity and something to share with others. And, let’s not forget about the other benefits listed in the previous paragraph. Since when is it a crime to buy a business, pay a monthly fee for a website and not generate any significant income? But let us not forget that YTB sold $425 million in travel in 2008.
The important point to remember is that no one is forced to stay with the program. A TSO/RTA has the ability to cancel his/her website at anytime by notifying his/her bank or simply calling YTB Customer Service.
Setting the Record Straight – Part 6 27-May-09 06:10 pm
CA AG: “Prohibiting YTB from – Stating or implying that their travel rates are comparable with those of travel booking sites such as Expedia or Orbitz.” And, per the Judgment itself: “Defendants shall not state or imply that rates or costs available through Defendants are the same as, or comparable to, other major travel booking websites, such as Expedia or Orbitz, unless Defendants also state in a clear, conspicuous manner, that rates differ and that the Defendants’ travel rates are not necessarily the same or cheaper than other travel websites.”
FACT: YTB doesn’t proclaim their prices to be better than Expedia or Orbitz; in fact, at meetings, they say YTB’s prices are comparable. The fact of the matter is that YTB’s booking portal leads the shopper to many of the same vendors used by Orbitz, Travelocity, etc; and in most cases the prices are the same. They certainly ARE “comparable.”
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!
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
|