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.

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You’re well aware by now how much I appreciate the internet and the information that flows on this puppy. I can find information on just about any subject I care to look into. This technology has become so ingrained into our culture we’re tweeting about subjects we find interesting and important to us. We’re able to communicate with people from all over the world instantly at all hours of the day and night.

We hook up with “tribes” on the internet, and share our experience and knowledge. We read blogs, newspapers, and even prefer to watch news and sports clips on the internet rather than TV.

I was an early adopter of the internet and have been using this medium as a source to gather information and educate myself on a variety of subjects. Today, one of the first places most people go to research is the internet.

There are a number of companies that specialize in gathering information about internet use and combine statistical data based on what they find. I’ve written about PhoCusWright a number of times on this blog, and love how it corrects the many many myths and misconceptions that others put out there. I don’t know why a few stragglers spend thier time twisting and spinning, or why they’re so afraid of the truth. Some do spend a considerable amount of time trying to distract you with thier own perception and opinions rather than sticking with the facts. I guess it works for them.

Me, I like facts from independent sources. Travel Weekly has done a terrific job in documenting for us the last couple of years. I found another company yesterday while reading the trades that has once again corrected the myths about self service travel. Travel Agent Central did a piece on Burst Media who publishes Online Insights which highlights emerging trends in online media and eCommerce. One of the most recent being summers travel plans.

Would it surprise anyone in YTB that 80.3% of “summer travelers” say they will use the Internet to help plan their summer vacation? Maybe because that’s a lot higher than what we’ve discovered in the past. (Even from PhoCusWright) But once again, we find statistical data from independent companies who don’t have any motives to bend or twist the truth for personal gain.

I also find in rather interesting that the higher the income, the more likely they are to use the internet for research. (As depicted in the graphic in the article.) Right or wrong, many correlate income with how smart someone is, and based on that belief, (or meme) the smarter someone is the more likely they are to use the internet for planning their summer vacation. The most popular features among the respondents was destination information and the ability to check flight, hotel and car rates and availability.

Respondents were asked what features and content of a travel website make them return they specified destination information (46.3%), the ability to check flight, hotel and car rental rates/availability (45.2%), and travel promotions and specials (44%) as reasons. Quite honestly, I can see this as a huge benefit for most consumers who are planning because a good portion of the Traditional Travel Agents are spending more time posting on blogs and message board forums than they are answering phone calls or talking with walk-ins who visit thier establishments.

You also have to wonder, with so many “consumers” researching rates, promotions, and destination information on thier own quite comfortably, why there’s a need for all the specialized training we wrote about Monday. Based on this report, most consumers don’t need no stinkin’ Travel Agent because they’ve been able to find all the information they need on thier own via the internet.

Which brings us back to the beauty of YTB. For someone like me who’s been a pied piper of sorts on the features, advantages and benefits of cruising for over a decade now, YTB gave me the opportunity to get paid when I told someone about why “a cruise was the best vacation money could buy”. It’s not rocket science folks, it’s travel and vacations. Travel is something that everyone does, and vacations are something that everyone loves.

All I have to do is open my mouth and tell someone that I we own an Online Travel Agency and the very next thing out of thier mouth is “Really, can you get me a deal too ______________?” We would more than likely talk about it what we have to offer, but the vast majority of the time, I simply hand them a business card with my website address, and if they find my prices competitive, I’ll find a booking in my back office without doing anything further.

Why, for the very same reasons Burst Media pointed out in their report.

Consumers are actively using the Internet as an information resource and a place to make travel purchases. Take advantage of the Web’s ability to target specific travel audiences – such as families and the affluent – with content that is highly meaningful and engaging to the viewer. Also, take advantage of the Web’s ability to deliver information by utilizing advertising creative the user can interact with, draw information from, and possibly complete a travel transaction.

There you have it. Another independent source with practical information and data you can use to build your business that documents stats and facts, not a bunch of hype and spin. It’s rather simple to implement if you know how to do it.

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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Monday we talked about owning your own travel business with YTB. Today were going to talk the phobias surrounding building a sales team that sells travel websites as a Rep with YTB Marketing. The recruiting that is a part of the parent company has been a real bone of contention for some time. But before we dive into the phobias, let’s look at a couple of very cool features with YTB Marketing.

1. There is no cost or upfront fee to become an Associate or upgrade to a Representative.

2. There is the potential to make as much money as you wish with no caps or ceilings.

3. You create leverage with others who help you sell and you make money off thier sales efforts.

By no means does that guarantee that this will happen if you become an Associate or upgrade to a Representative with YTB because your success depends on how much effort YOU put into building and working. However, the potential is there, and we have some incredible success stories with YTB Marketing and real people who have made millions doing this.

I know all about the phobias, anger, and fears about this side of the business when you bring up MLM or Network Marketing. Many just follow along with what they’ve been told by someone else. A few give something like this a try for a few weeks, maybe a couple of months, and because they themselves don’t make millions within that time, it’s not good enough for them to simply say “no not for me”…they need to make sure that everyone knows it’s not for them either.

I had the pleasure of watching a PBS special this weekend with Dr. Wayne Dyer and “Excuses Begone”. While watching, I discovered a new word and a new concept called a “meme“. A meme is a unit of cultural information, such as a cultural practice or idea, that is transmitted verbally or by repeated action from one mind to another. It’s very much like a computer virus that spreads and from one computer to another, that multiplies itself and infects everything it comes in contact with. Memes are often considered as factual, (that’s how prevalent most of them are) but if you actually take a look at look at data, (or lack of data in some cases) you find no facts whatsoever to support the belief.

There is certainly a meme attached to Network Marketing and more importantly YTB when it comes to the myths surrounding this idea that everyone in the business simply recruits others. It’s so firmly entrenched that even the California filed a $25 million law suit in attempt to stop it. What made the meme spread even faster in recent months is that California is perceived as being some sort of “authority”, and there was a perception that because California said it was so, it had to be true.

What California did for YTB was a huge favor now that we have documentation that separates the two business models. What California gave us were tools to help put an end to the meme that is spreading now that the settlement has been reached. If you think that the settlement alone will help put a stop to the myths, you’re partly correct. Nothing in the settlement specifies any pyramid scheme and YTB was never found guilty of running such a scheme. Huge plus in YTB’s favor.

The underlying problem however isn’t so much the pyramid scheme but the perception that everyone who joins YTB is recruiting hoards of other people into the business. Those that fear pyramids the way the do have all seen the chart from the FTC and the SEC documentation which tells them that it’s impossible to recruit everyone in the world. Doing so, would eventually exceed the worlds current population. Because it’s mathematically correct, most accept this as fact and we somehow need to be concerned that it’s going to happen to us if we get involved in MLM. But typical with most memes, when asked to produce an actual case where something like this has happened, they come up empty handed. (Actually, they ignore the question, but you get the idea.)

We Network Marketers on the other hand, DO have several case studies that should calm the fears and correct the memes surrounding this phobia of running out of people. I wrote some time ago about Mrs. Albee, the first Independent Representative with Avon (then the California Perfume Company) back in 1886. Yet I’ve never even been approached to sell Avon, and most likely you haven’t either. There are dozens and dozens of other Network Marketing companies out there that haven’t run out of people either, yet the business continues to not only survive but grow.

Mary Kay, Tupperware, Primerica, PrePaid Legal, Amway, Herbalife, NuSkin, EcoQuest, Fuller Brush, Melaleuca, NSA, Oxyfresh, Shaklee, Stanley Home Products, USANA Health Sciences, and Usborne Books have all been around for decades and not one has exceeded the worlds population. Yet the fear of running out of people is still being propagated based on what they believe is a flaw in the model.

The same fears and phobias are pitched for YTB of course with the added caveat that recruiting others is all we do in YTB. (Or at least that’s the major focus.) In both the suit and the settlement with California most of the attention was focused on how to stop the recruiting. A plan was devised in an attempt to chop the legs out from under the “recruiters” in the company, which would limit the amount of income Representatives are able to make. Based on the meme that everyone in YTB both buys a travel website AND recruits others to sell travel website the solution was to limit the income based on that beleif. Since everyone is both recruiting and owning websites, this would “fix” the SEC filings that 75% of the income comes from recruiting and help increase the percentage of travel income in the company.

The basic rule that California put in place is 40% of any Sellers compensation in any month could not come from both Website Owners who were also Website Sellers. This apparent “cap” on income would limit the number of big recruiters in joining the business.

All one needs to do here is look at the 2008 Income Disclosure Statement to show any “recruiter” that exceeding the 40% of both Website Owners and Website Sellers, (the big bad recruiters) is nothing more than a pipe dream. YTB Marketing had a total of 209,545 who were either Associates or Website Sellers at year end 2008. Of the 209,545, 188,538 participate only as Associates in our company who are not Website Sellers. (Meaning of course they were not recruiters.) The Income Disclosure Statement documents that only 10% (21,007) could actually qualify as both Website Seller and Website Owner who need to be concerned with the limitation imposed to only recieve 60% of thier compensation paid due to the new “rule”. (Assuming that all 21,007 are also Website Owners with YTB Travel Network.)

While many pitch this myth that everyone recruits everyone else, and that’s all YTB is, the numbers actually show that a small fraction of the entire company are actually “recruiters”.

What critics and now that Government who is blindly following along because of the social outcry of a few ignorant people actually have is nothing more than a “meme”. A false belief, a social perception based on myths, fears and phobias.

The question we now have to ask ourselves is if we can elimiate the virus that’s spread and correct the false belief that all YTB does is recruit others. I can’t honestly tell you that we can. Truth is that the 2007 Income Disclosure Statement also showed that very few people actually recruit others. While some can read and realize that what they are being told proves to be nothing more than a myth based on the documentation in both the 2007 and 2008 reports, not everyone is willing to let go of the socially acceptable belief that recruiting is all we do. It’s a shame that some feel it’s more important to follow social norms than it is to look and accept the facts here. That’s a totally differnet “meme” for another article and another day.

Like I told you on Monday, we’re not looking for “average” or those that want to follow along blindly based on social norms or beliefs. We want people who can think and act on thier own.

I know the pitch is that we’re the “blind sheep” here. That’s nothing more than a pitch to cast doubt and bring you back into the fold. In time, when critics see this the “fix” they’re so sure is going to stop the recruiting falls flat, some may come around. But I wouldn’t count on that, and most are in this way too deep right now. To look at the Income Disclosure and have that change thier beliefs would be a huge step in the right direction. That however, would mean they would have to take personal responsibiilty. Just not going to happen based on what I’ve seen the last couple of years.

The good news however is that there is an abundance of people who are willing to look at the facts, and don’t get wrapped up in the social norms. There are even more still, who like me have undergone an awakening and have questioned many of the social beleifs that have turned out to be completely false. Focus your time and your efforts on that, and you’ll begin to attract others who think and act the way you do. Given time, those that can’t or won’t get past thier own false beleifs will fall by wayside. Before long, you’ll find yourself surrounded by a whole new “social norm” that supports you and doesn’t get wrapped up in what I now know is a “YTB meme”.

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!

Book Your Travel & Vacations With

It’s official.

YTB 2.0 is now live.

There were some who guessed we’d fold and never make it to this day, but we’re actually here now and the sites are up. Over the next couple of articles we’re going to discuss the features, advantages and benefits of YTB 2.0. Because YTB now has to make a clear separation between our business models, we’re going to split the opportunities here into two separate articles.

Before we begin on what’s new with the launch of YTB 2.0 I need to clarify that some of the more stubborn critics will more than likely promote that YTB is not following the new guidelines and rules based on the settlement that we reached with California in the middle of May. About all I can say is, let them.

Let them vent, let them report, let them turn in everything they find on the new sites into whatever authority the see fit. What YTB has is compliant and as we move forward, we’ll notice very little has been modified or changed in regard to content. While critics like to throw the word “pyramid scheme” around, we’ve seen how successful that turned out to be. I don’t know if any of them will come to grips with what’s transpired with YTB 2.0, but that’s not our concern.

It’s theirs.

Today we’re going to focus on my first true love, what got me into YTB in the first place…the travel business that I bought some 4 years ago. The new business presentation can be found at www.justpictureitnow.info. You’ll notice a short introductory video that provides just enough information for someone to want to find out more. If you do want more, you need to submit a simple e-mail address and verify yes or no that Douglas and Ronda referred you to the site to take a look.

If you agree to submit a simple e-mail you are then taken to the next step that provides information about running a home based travel business on the internet. A turn key web site, that provides all the all the resources you need to run a successful travel business.

A side note here about the term “successful travel business”. Is that a guarantee that by buying a travel business through YTB you will be successful?

Because success in YTB also depends on what you actually do with the tools offered and how you implement what you’ve learned in the process, that would be “no”. If someone earns $0, and another person earns $26,966 in commissions (according to YTB’s TSO Income Disclosure Statement) the one variable here is YOU.

If someone wants to get caught up in “averages” or “median” incomes are in the Income Disclosure that’s available, I’d probably just let those poeple go. Anyone concerned with being “average” doesn’t have the right mindset or belief in themselves, and are already looking for excuses to fail before they even get started in the business. If average works for you, great. I’m not one, nor am I looking for anyone who wants to be average.

I love what Scott Tomer said a couple of years ago when he told everyone that we’re looking for “Travel Agents” not “Secret Agents”. Meaning if you keep the fact that you actually own a Travel Store a secret and don’t tell anyone, the likelihood of earning anything in this business is slim to none. But because very few want to take personal responsibility for why their not making a dime, it’s YTB’s fault.

Sorry, try again.

What you find on our sites are the same seats on the plane, the same room at the hotel, the same cabin on the cruise for a comparable price. The difference is that when friends, family, co-workers buy from you instead of the other sites, you get paid.

When 4 of the top 10 Agencies in Travel Weekly’s Power List are nothing more than booking engines that point people to sites to combine for sales of over $45 BILLION in travel, that’s a big clue right there that you don’t need to know everything, just how to point poeple to your site. A good starting point would be opening up your mouth and telling someone you own a site they can book travel from 24/7/365.

In the new launch with YTB 2.0 there are 4 video’s for anyone who wants to find out more about owning a Travel Agency with YTB including a “Test Drive” of all YTB has to offer. “Great Escapes” are also explained that are exclusive to YTB. In addition we cover the hours and hours of “Training” that’s provided, and and lastly more about the “Opportunity” that exists with owning a Travel Store. What I like is that everyone has the opportunity to view a live working site, to check what’s offered, compare pricing, and see how simple this puppy is to use. Anyone who’s been on Travelocity, Orbitz, Expedia, or Priceline (the same sites that combined for $45 BILLION in travel in 2007) and booked travel with them, will certainly know how to navigate the YTB Travel Network.

The new site is clean and rich with content via the videos that are available. A picture is worth a thousand words, and when you get to see what’s offered in the videos, hear testimonials from real Associates and RTA’s about their business, and a clear, concise explanation of how our model works compared to everyone else out there, the answer is pretty simple.

You’ll also notice that it’s all about the product. What you get for less than $500 to start and $49.95 a month. If you wanted to create something like this on your own and come up with a cost, you’re more than welcome to. I can’t even begin to imagine what that cost would be when you factor in design, hosting, and securing contracts with all those vendors you get for $49.95 with YTB.

Take a look at the new YTB 2.0. What you decide to do is up to you. We have all the tools, training, and information available to help you make an informed, educated, business decision about our model. 

What you do with the informaiton and the tools is entirely up to you.

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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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.”

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You just never know where the next round of “news” is going to come from these days. Of course when I say “news”, there is no news in the travel industry unless it contains three letters…Y-T-B.  The flurry of press this past month has been so immense that it can be difficult keeping up with it all. Two weeks ago when our financials were released and the final settlement was announced, there were 35 Google Alerts for YTB for the week. (News stories that wrote about YTB.) Everyone from industry publications to main stream media sources had something to say about a company that many thought would be written off by now.

The apparent “lock” on putting an end to YTB with Jerry Browns suit back in August and claims of a “gigantic pyramid scheme” had staunch critics giddy. It was abundantly clear that the goal of this suit was to shut YTB down. What was supposed to be a suit filed for all the Reps and RTA’s that lost out due to unfair and misleading marketing practices came up $14.9 million short of it’s intended goal.

In addition, I’m seeing some real frustration now in our critics over how were still recruiting people into the business. I have to admit, and I know it’s shallow, but I am enjoying seeing how frustrated critics are over their recruiting phobia.

California was suppose to put an end to all that. Yet, here we are, still in business and continuing to sell travel web sites as a “website seller” to anyone who wants one. Our booking engine continues to work without a hitch. (Keyed in a new cruise booking for a former co-worker last night as a “website owner”.) For those of us who have been working this business the right way all along, there really isn’t much that’s changed, except for the verbage we us.

Those that took my advice weeks ago when the settlement was announced and actually looked at the legal documents instead of the spin, realized how little has changed. Sure, we’re a far different company than we were 2 years ago. Much of that is due to the discussions we had with California when they changed some legislation at the beginning of 2007. Once we were able to work through the issues over credentials we continued to make changes with an income disclosure document. We also added a statement that you could be an RTA for under $500, and there was no cost to become a Rep with the company. You could be one, the other, or both. In addition, there has been a California statement that not everyone makes money with YTB in place for well over 18 months now.

I’m certainly not a mind reader, and by no means did I have any type of inside track when it came to what California was attempting to do with all these changes. My guess is that they wanted to slow the recruiting down, and because what they mandated didn’t slow the company in the least, the suit was filed as a last resort. Truth be told, the changes actually made the company better, and it’s no coincidence that California came to the forefront recruiting wise when the changes in credentials, income disclosure, the disclaimers about two companies, and the disclosure about income potential worked to our advantage instead of disadvantage. Who knew?!

In fairness, the suit worked to a certain degree. The mere mention of a law suit scared a lot of people and many left because of the uncertainty. Guys like me however stuck around to see how California was going to pull of this miracle of proving that someone pays YTB for the opportunity to recruit others into the business. A very tall order indeed. I wish I could say it was fun to watch, but that wouldn’t be honest. Frustrating was more like it. But as in everything that happens in life, the truth always has a way of coming to the surface. Because we’re still in business, I’ll take the settlement as a firm “NO” we are not a pyramid scheme.

While keeping up with the blogs and message boards, I see far too many excuses, and far too much spin for me to really stomach right now. I do wonder why so many of the critics need to put things into their own words instead of relying on the actual court documents to prove their point. My guess is that the documents don’t mean what they want it to, so they insert their own words so they can have their way. Now that we have the legal document to show folks, it makes little difference to me what they say. The court document filed is all anyone needs to be concerned with when it comes to what YTB is or isn’t, what YTB can or can not do. Critics who want to make excuses or make it sound like something else can go pound sand.

Sorry…

Now that the dust is starting to settle a bit and the flurry of activity surrounding YTB has died down, some are looking at our company once again. Some may be doing it because they were told we were shut down, but yet find me still writing about the company. Others have heard so many variations as to what this settlement means that their head is spinning and want to find out what really happened. Still others, got so sick of the trash talking that they wanted to remove themselves from all the emotion and wait until tempers settled before they took the time to look at what really happened.

Others are actual reporters who want to help set the record straight. I have to tip my hat to Nadine Godwin once again for a very fair and mostly accurate article she posted yesterday. I know Nadine was in the dog house during the week of the settlement with most of our company. To be honest, I was even taken a little aback with the way she reported during that week. She’s a reporter, and she’s going to write what she feels is the best way to report the news at the time. It’s not her fault that the information supplied by Jerry Brown and his press release was a complete fabrication of what actually happened. I can’t expect anyone outside of the company to have the same understanding of who we are and what we do. Nor can we expect everything reported just the way we want it to be. I happen to like Nadine and think both her and George Dooley from Travel Agent Central write the most balanced pieces out of anyone I’ve read who reports on YTB.

Do I agree with everything they say? No.

Do I like everything they write? No.

Have both of them pulled what I consider bonehead moves when it comes to reporting? Absolutely.

They’re human, and like the rest of us, they have the freedom to form their own conclusions about what they read and hear. Just because they write something I don’t like however, doesn’t mean I have to hate them, nor do I have to take ownership of what they write. Both Nadine and George have been around this industry for a long time. Nadine not only writes for Travel Weekly, but she’s also a published author, (Travia: The Ultimate Book of Travel Trivia) and the fair and balanced pieces she’s done far outweigh the one sided articles.

I invite you to read her findings, without edit or input from me. I would encourage you to steer clear of the comments that are starting to roll in at this time. When people can’t figure out that Travel Weekly reports “gross” sales numbers and the SEC filing report the “revenue” generated from those sales, the people commenting might not be the best source to consider taking advice from. (Not the sharpest tools in the shed.)

While I don’t agree with everything in this article, nor do I understand why we can’t compare $414 million in gross travel sales against $122 million in gross website sales as a barometer of what YTB focuses on, I’m not going to argue the point here an now.

There are many myths about our company, and we need to take baby steps when educating those who truly want to find out the truth about YTB.

Like the settlement filed with the courts, this article is simply one more step to help set the record straight. The Travel Weekly Power list will be out in late June for 2008, and I’ve heard of what was submitted to Travel Weekly to help clarify things even further for everyone. We’ll help clarify things for everyone once that is released and we see how YTB stacks up against the others.

For now, take what Nadine has written to help dispel many of the myths and lies we’ve heard about. But please, don’t worry yourself with pointing any of this out to the critics. I can assure you, they have no interest in being called out or corrected about what they’ve been spinning.

That’s a rock you can leave alone. Just know that the truth is starting to uncover the lies, myths and misconceptions that are out there and with a little more work and documentation that will continue to come out, most will have a clear understanding of who is spinning and who isn’t.

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UPDATE: If you were on the Thursday Night Training Call with Ann Sedgwick last night or if you read the Travel Compass sent out last evening, you now know that BookCCL.com is open for YTB RTA’s to register once again. (Even if you did not have a previous booking or group already registered through their site.) Registration is reserved for RTA’s who have taken the appropriate training and upgraded from the Associate position who now qualify for the 70% commission level.

Instructions can be found in either the Travel Compass or in this weekends Newsletter sent out for Just Picture It Now Newsletter Subscribers.
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If your read Monday’s article, you knew that I was up in Wood River for Red Carpet Day Tuesday. I enjoy these events because I’m able to actually see many of the organization face to face. I get a chance to look people in the eye, instead of talking with people over the phone, or corresponding via e-mail. Events such as Red Carpet, Convention, and other local meetings are important to me simply because like the documentation I have here, seeing the energy, the excitement, and passion in someone’s own eyes completes who we are and what we do.

Now that the company has overcome the allegations in California that some claimed would put YTB out of business, (the California AG’s and critics goal by the way) Wood River was a buzz.

Seeing is believing. I’m sure there will be those who simply take what they read in the media, blogs, and forums for face value. If you want to believe that YTB is banned in California, shut down, or has ended, you’re free to do so. As we move forward, and people see that YTB’s still around, still making headlines, and obviously still operational – I would imagine that it would only cement that critics aren’t the sharpest tools in the shed.

The same type of myths were planted on the internet surrounding YTB’s relationship with Carnival Cruise Lines. Attempting to state anything other than a very solid and stable relationship with the World’s Most Popular Cruise Line has been considerably more difficult to spin however. There’s been plenty of evidence over the years that Carnival not only enjoys, but values it’s relationship with YTB. Most of the evidence is private in the form of e-mails to the field directly from Ann Sedgwick, or the Saturday morning training calls she conducts on the company conference call number. Other evidence is available for everyone via several Sail-a-thons with Carnival and Princess who promote their product during these events.

Critics, as always, will persist however with their own agenda. Attempts have been made to make it look like our relationship with Carnival will soon fall like it did with Royal Caribbean. A few months ago, we decided to revamp and clean up the BookCCL.com accounts. Now that we have a Home Office staff large enough to handle the volume, YTB took on more responsibility asking Associates and TSO’s to call our own Travel Department for any Carnival related questions and bookings.

One of the overzealous critics who’s been on the “24/7 YTB Watch” found a segment in our internal communications and decided they could spin it to mean something else. This new twist with the company’s correspondence to the field is a perfect example of what Andy Cauthen talked about when they distort your response to their own agenda, and render your intentions worthless.

What was initially intended to strengthen our relationship and features was spun as Carnival distancing themselves from our company. They no longer wanted to work with the uneducated Yahoo’s who only want to recruit and pretended to be a Travel Agency.

It was also speculated by critics some time ago that the Home Office created an elaborate story about the Carnival Pinnacle Award. YTB first earned the award back in 2005, and there was a press release and pictures taken of Kim Sorensen and our BDM Ann Sedgwick. The story went that nobody could confirm the 2006 or 2007 award because there wasn’t any press release or additional pictures to match up. Truth of the matter was that over 11,000 National Convention attendees saw the award being given in 2007 and about another 6000 witnessed it down at Funshine in Orlando later that same year. Because one critic said he couldn’t confirm it with Vicki Freed at a trade show, (who I’m sure had a reports of past awards available at that very moment) the rumor was that YTB was blowing smoke.

Some can’t bring themselves to admitting that their mode of confirmation might not have been the best way to document the lie they wanted everyone to believe. But like most of what we read, there was no further documentation, not further verification, and if we wanted to prove them wrong, it was up to us to clean up their mess.

Just like the settlement agreement in California, we need to stop trying to prove to everyone who is right and who is wrong. Remember, when you get into a fight with a pig, you both get dirty, and the pig loves it.

Let our years and our status with Carnival speak for itself here. Type up a support ticket, ask them yourself what’s going on. Anyone who took the time to type up a support ticket or call the Home Office to end the myth that Carnival no longer wants YTB calling or booking through BookCCL.com found out it was a maintenance issue rather than the hand slap critics wanted it to be. Those who had existing bookings and groups through the site were immediately granted access once they submitted a support ticket with proper booking numbers. In addition, many of us have developed relationships with Team Carnival who are always a pleasure to speak with.

On Tuesday, 1500 Website Sellers and Website Owners witnessed Ann Sedgwick not only hand Kim Sorensen a Pinnacle Award, but also heard her say it was our fourth year in a row. She then took time to speak with all of us at Red Carpet about how YTB DOUBLED our production over 2007′s numbers. Kim’s goal in 2008 was to be the number one with the number one, and while we didn’t quite make that number in 2008, if we keep pace with the growth we have, we’ll attain that honor as well.

I can’t think of another supplier or vendor who has more clout, more pull, more credibility in the Travel Industry than Carnival. Disney, who we also work with comes close, but Carnival is one of the largest, most respected leaders when it comes to public perception and respect. They’ve provided hundreds of training calls, a number of ship inspections, semiars at sea, and have been able to provide a very solid solution to the “issues” Travel Agents have concerning FAMS and discounted travel. This five minimum booking policy with each vendor has been compnay wide for over a year now, so why critics still have an “issue” with us getting discounted travel, I couldn’t tell you. To me it’s just further validation that critics simply want to shove their own illusions down everyone’s throat and ignore what YTB is actually doing in the industry.

I’ve been telling you for years about critics, their illusions and their agendas. Andy Cauthen chimed in last week when we saw how our settlement with California was spun by these same critics and the media. It appears the our CEO, Scott Tomer also agrees with how lame the misinformation, myths, and lies are that’s thrown out there to distract everyone from what’s really going on with YTB.

I’ve got to ask you at this point…

Do you know any of these critics personally? Do you have any clue who many of them even are?

They wanted California to shut us down. They want Carnival to dump us.

Do you think it worked?

Then why on earth do thier illusions about who we are and what we do even matter?! Like California, and Carnival, the myths and the lies are catching up with our critics and the tide is starting to turn.

There is more we need to overcome and prove wrong. The battles are far from over. With California and Carnival as the latest examples of why people need to dump the self importance of the overzealous critics, you need to do what I do when I read the lies, the spin, the missinformation created to distract you.

It’s three simple words and it goes like this…

“Thanks for sharing”.

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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