Just Picture It Now

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

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

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

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

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

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

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

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

Never.

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

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

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

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

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

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

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

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

John, please read the Press Release from the DSA.

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

Our application was approved on 9/18/07. Trust me...what you've heard is nothing more than "rumor and hearsay".

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Doug & Ronda Bauknight
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Labels: Card Mill, John Fenaye, Royal Caribbean, Travel MLM

Posted by TravelPro on Tuesday, October 30, 2007 at 11:32 AM | Permalink