Just Picture It Now

I had mentioned in my last post that at the time of that post, I was unaware that any other suppliers or vendors have joined RCCL terminating "card mills". If you have been following this story with me, you should know by this time how I've have an uncanny way of digging up documentation and information via the internet. (It's a gift.) While I have heard of several companies from various message boards and forums throughout the course of "water cooler gossip" I have yet to see anything verified by a source I'm willing to trust at this point.

Over the weekend I found another link in which I'd like to share, and while I certainly consider this to also be nothing more than "water cooler gossip" especially concerning the source, I'd like to have some fun shooting all the fish in this barrel. While some may take this as nothing more than another personal attack, or ask why I'm giving so much energy to something I first decided to ignore, I believe those of us who are under attack by this individual should be aware of not only what we are being accused of, but the positioning and tactics being used in regards to YTB specifically.

As both Kim and Coach were able to express thanks to Travel Weekly last week, there are a lot of misconceptions about Network Marketing. Here is a listing of just a few of the common misconceptions regarding our industry as it's related to what they "think" we are doing.

A. Suppliers allowing them discounts, free travel, FAMS, and other perks merely for referring themselves and their family to a website.

While the problem is originated at the supplier level for "allowing" discounting, it's suddenly becomes a problem with MLM and not the supplier. See how that works? All the problems are directed at MLM because the supplier can't differentiate what is a legitimate IATAN or CLIA credential, and one of our "ID Cards".

These petitioning Agents certainly can't blame the supplier, they are the life blood these Agents. So they put a gun to the suppliers head, tell the supplier "us or them" and when supplier caves to forfeit a combined $23 Million in sales, suppliers are sung praises for finally being able to say "no". The supplier was unable to regulate just who is "giving back" and who is "taking advantage" of the discounting, therefore, MLM is taken out of the loop completely because these Agents believe MLM is the real problem.

B. Suppliers paying top commissions from day one, when we have to work years for a few points.

It's my understanding that only "YTB consistently changes it's "sales" numbers to appease different audiences", not the other way around. If you recall when this story first broke, here is what we were told via comments on this very Blog.

"Why would I want to be YTB to earn 60% commission of 13%, when I now earn 80% of 16% and higher? Stupid. Ya'll keep drinking your koolaid."

I'd like to note that fingers are now being pointed at me for posting our commission percentages on this very Blog. They are upset with me for showing these top commissions, as these percentages apparently are a closely guarded secret in the Travel Industry. If this is the case, I don't know how anyone would actually know WHAT commissions YTB actually makes.

While it may look like a "Catch 22", I didn't open this can of worms, and I don't mind at all commenting or documenting how slimy the worms are.

Why does YTB get "top commissions"? If you joined American Express, Carlson Wagonlit, or any other Agency in the Top 50, they are also paid top commissions. Agencies earned these commission levels based on Sales Volume. Sell "X" amount of cabins, earn "Y" amount of commissions. Increase the amount of cabins sold, Agencies qualify for a higher amount. Carnival has awarded YTB their Pinnacle Award as one of the Top Agencies the last three years in a row, 2005, 2006, and 2007.

Because YTB is MLM, we don't deserve top commissions along with the Award for Top Sales? YTB obviously qualified with every Travel Supplier we have on our list. Kudos to the RTA's of YTB for making this happen!

C. The MLM companies idea of help to the consumer is to refer them to the Travel Agent Only toll free number of the supplier.

I have no idea if Agent Only numbers are given out or not. Doing so isn't at all productive. If, by some slim chance they are, the "customer" who calls will be asked for either an Agency Phone Number or Agency IATA number, (depending on the supplier) and since this is the first question asked by an inside service representatives, no further information is given without first supplying either of these two identifiers.

I realize there are over 60,000 new RTA's who have joined YTB in the last 9 months. If you have a question, we have our own phone number or support ticket system along with a newly renovated 120,000 square foot Home Office with hundreds of support staff to assist you. The founders and Corporate Heads of YTB have set in place one of the best training systems and support programs available to anyone wishing to get involved in the Travel Industry. Additional thanks going out to Dr. Marc Mancini and TheAcademy.com for their support and assistance in this leading edge training technology to help those who have recently joined our ranks.

D. The solicitation of our clients with slick unethical and misleading marketing materials.

We must have missed the Memo from the DSA announcing YTB as members of their prestigious organization. YTB is clearly attempting to raise the bar joining the DSA in abiding by their Code Of Ethics.

How sad to see that our counterparts in the Retail Industry are not joining us in our efforts.

"In the wake of RCI's decision to yank the privileges of "card mill" outfits, I got spammed with an email from a group that purports to be lobbying more big travel sellers to follow suit (see email below). Did anyone else get this? I don't understand what is motivating this campaign--if I'm a legit TA, why do I need to waste my precious time joining a grassroots organization to cheerlead the big travel sellers for making a decision I like? I am also trying to figure out where they harvested my address from...."

I couldn't have said it better myself. Thank You.

E. The solicitation of travel agents themselves to join their "downline".

Finally something worth talking about! Absolutely!

We understand the plight of the Retail Travel Agent, and while they are spending time servicing important high ticket, high touch clients, these same clients can now be referred to their very own "booking engine" for air, hotel, cars, event tickets, even flowers without lifting a finger. These clients have been booking these services themselves for years now. If Retailers choose to simply let Travelocity, Orbitz, Expedia have it, that's fine too. For a minimal cost, and loyal clients, it makes sense for those Retailers who want to retain all of their clients travel with minimal effort.

By the way...many of these Agents "get that". There are obviously a few old school who want to continue to struggle and end up selling T-Shirt's and creating their own Blogs, while at the same time left wonder why annual cruises booked by agents has dropped to about 90% and continues to decline.

F. Consumers believing that they are booking with a "friend" and ultimately it is being handled by an untrained person in a res center.

- Expedia booked $17.2 Billion in their Res Center.

- Travelocity booked $10.1 Billion in their Res Center.

- Orbitz another $10 Billion in their Res Center.

- Priceline finishes out the Top 10 Res Center Agencies with $3.3 Billion.

Over $40 Billion was spent last year in a Res Centers and that ONLY includes Expedia, Travelocity, Orbitz, and Priceline who are all Top 10 Agencies. Our friends have not only trained themselves, it appears that their training over the last few years was extremely effective.

MLM is apparently under a completely different set of rules and guidelines here when it comes to using Res Centers.

G. The promotion of their business with the focus on "free travel" and "traveling like an insider".

Take a look around here, take a look at the YTB Marketing site, take a look at our Booking Engine...do you honestly believe obtaining "free travel" is YTB's focus? Yes, I want to show you how to "travel as an insider", to help you sell travel. This is what I was taught to do from the very beginning, take a FAM and then comment on my experience. This Trip Report is still being accessed to this day, and I still get sales off this article two years later. I see nothing wrong with organizing a large group and obtaining a conductors rate for yourself. I see nothing wrong with getting rebates in the form of commissions for your own travel. If they can do it...so can I.

Oh...that's right...YTB is MLM.

Sorry....

While these Petitioning Agents are relying on "luck" and signatures, YTB has verified numbers of $226 Million is sales in 2006, and a conservative number looks like that number is going to double to $550 Million for 2007.

In closing, I'd also like to note that while I've enjoyed exposing these Anti-MLM Zealots, a considerable number of fingers are also being pointed back at me.

Here is what I'm actually very proud of.

With years of posting about YTB, they have only been able to come up with one legitimate complaint about what I've done when it relates to all the myths, rumors and lies they are spewing about YTB.

Last year I submitted a Press Release on going full time with YTB. In the copy, I stated that YTB estimated $500 Million in sales for 2005, and expected to exceed $2.5 Billion in sales for 2006. While it looks like I either grossly exaggerated my sales numbers, (or simply missed these figures by a year of two) I am both humble enough, professional enough, and man enough to admit and correct any misrepresentation I have made about a company and industry I love, admire, and respect.

Actual verified sales number for 2006 was merely $226 Million in sales, and estimates for our current year have only doubled to $550 Million.

I appologize.

How long will we have to wait to see the same class, dignity or professionalism from our opposition?

Time will only tell.

Let's just hope they correct this before others like Ms. Diana, Publications like Travel Weekly and suppliers like Carnival begin to figure out what's really going on.

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Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812

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Labels: "Card Mill", Anti-MLM, John Fenaye, MLM Myths, Petition, Travel MLM

Posted by TravelPro on Monday, October 29, 2007 at 12:25 PM | Permalink