Just Picture It Now

Doug--The Dell, Staples, TomTom, Sprint deal is a perk for YTB and a business decision made by those companies. Those products also afford a much greater markup than travel ever has or ever will see so there is more room to work. When was the last time you ever "paid" for a cell phone? Been a long time because the markup on the service is so great that they can give them away and recover any costs in a year.

But, if you began to sell these perks to your customers, I am sure they would have an issue. And as we speak, I am sure many Reps/RTAs are indeed using this program as an enticement to sign up. As your blog title suggests, I can picture it now:
If you sign up tonight, you will be able to get your travel credentials without ever having to sell a lick of travel. Imagine the tax benefits of owning your own home business. If you recruit someone, you will earn half of everything they earn. But who do you know that does not have a computer, cell phone or use office supplies? No one. But when you join YTB, you will get a discount on all these items. Just in school supplies alone, you can save $100. This discount essentially pays for your sign up fee.

And yes the suppliers would be ticked off if you marketed their discount as such. In that scenario, that is EXACTLY what YTB is doing to the travel suppliers. You are selling the benefits to the customers. Isn't it true that the most successful RTA/Rep will have one client (himself) and all the other "clients" are actually RTAs in his downline? It certainly seems that way.

“Isn't it true that the most successful RTA/Rep will have one client (himself) and all the other "clients" are actually RTAs in his downline?”

John;

I can only speak with certainty about MY downline and I can assure you that you couldn’t be further from the truth. I do see a handful of Power Team Names on the list, and most RTA’s do book something off their own web site before they market it to others. I also see a lot of the same “last name”, which I would imagine are mothers, fathers, brothers, or sisters, but the vast majority are names I do not recognize in the least.

If I look outside my downline and look at the Groups Booking Page on our booking Engine it certainly wouldn’t fit your perception either. I see several Class Reunions, and American Legion Group, and several Weddings on this page. At last count, there were 575 groups on this page run by one RTA each with 30 or more cabins per group.

Those cabin’s are all RTA’s? Doubtful.

Of the hundreds of names and e-mail addresses who subscribed to my “Steal and Deals” newsletter, I do have a handful that are now part of my team, and I do subscribe myself. Again the overwhelming majority are “Travel Customers” and not associated with YTB in any other way.

Even if you perception is true, it still does not answer the question posed.

How do these top commissions paid by the suppliers end up “costing” the supplier money?

I don’t believe you! Everyone knows that’s how it’s done!

Otherwise PROVE IT!

Liar.

If you would like to believe that all the cabins on our Groups Booking page are held for YTB RTA’s, be my guest.

John asked about “Successful RTA’s” in our company, and Groups are exactly how some of the better RTA’s in our company do it.

I have several Power Team Members on that list. While the RTA is going for Port Charges and Taxes, the rest of the group is paying “full fare” and none of them are involved with YTB.

The SEC numbers tell a different story...$82 per year!

Liar!

Anonymous;

I’ve been nothing but truthful and bitterly honest here. I’ve also been respectful and I would ask that you do the same if you want your voice expressed here.

The Group Bookings page tells the story concerning the subject of how much an RTA makes and how many FAM’s YTB RTA’s take.

Without knowing how many RTA’s were with the company at the time bookings were actually made, any RTA average in regard to what is earned is worthless. Furthermore, commissions earned between all of 2006 and the first ¾ of 2007 have already doubled. We are currently on pace to come very close to earning via commissions the $226 Million reported as booked by our vendors in 2006.

First off anonymous--what's with the "liar" bit? Doug has an opinion as do you and I.

Doug--I was not speculating on the current successful RTAs, but stating that if there were a perfect RTA/Rep he would only sell to himself and all of his "clients" would be in his downline again only selling to themselves. That would maximize the earning capabilities under the comp plan...no?

As to the question, I did not say that paying top commission cost them money. Without looking, I think I said something along the lines of not getting their money's worth. When a supplier pays a commission, it is generally accepted that they expect something in return. IN the travel biz, it is usually for someone to act as an intermediary between the client and the supplier--hence the term "agent". While some RTAs do act as true agents, most do not. Most are merely referring someone to their website and have zero concern on the client's needs.

I know they are a thing of the past, but remember when there were two prices at the pump--full serve and self serve? Did the gas jockey get paid for the self serve people? Or did he get paid on the full serve people? Well, his salary likely came from both but the lion's share comes from the full service kitty.

I am not 100% sure of this but, I believe that Geico pays a small commission to local agents for area clients that sign up for insurance online. Where did the client get the impetus--was it by seeing the Geico sign on his office, the funny commercials from HQ, or the irritating banner plane that was flying overhead? Hard to know, so they give the agent a small spiff for the business. If the agent writes the business, the full commission is paid. When the client does it himself, the info is passed to the agent who then tries to upsell them or to sell them other lines.

Real Estate. Traditional or Help-U-Sell same deal. Full service commands 6% to 8% here. Help-U-Sell commands 3% to 5%.

IF an RTA wants to offer full service they are absolutely entitled to the full commission.

If they want to point to a website and say "do it yourself", then they are not. Are they entitled to something? Sure it may be business the supplier might not have had--they might have, but one never knows.

Sandals offers an affiliate program. The local Bait N Tackle shop can put a Sandals Banner on their site. If a Bait N Tackle client clicks on the banner, it tags the source and the booking is handled by Unique. Just like YTB. The difference is that the3 Bait N Tackle Shop gets (and I am going on memory here so it may not be exact) 1% of the commissionable rate. THAT is the difference.

But, since the vast majority of folks in YTB are the point and ignore types, there is no real way to police that.

And on your groups, how many are ultimately canceled? I know that more groups than not are usually canceled. So of the 525 groups, how many go? Also, are there any real attrition numbers floating out there?

Anonymous...

How childish can you be? Is this how you "Professional" treat people?

Doug, I don't see what the big deal is who is making the bookings as long as they are paying "full retail" and not taking FAM's. Money is money. I think we do so much as a company and it's my understanding that we've EARNED those high commissions for booking so much with our vendors.

It's like you said it's volume.

I was not speculating on the current successful RTAs, but stating that if there were a perfect RTA/Rep he would only sell to himself and all of his "clients" would be in his downline again only selling to themselves. That would maximize the earning capabilities under the comp plan...no?

I’m sorry John; I misinterpreted what you were trying to communicate. Thank you for clarifying.

But the answer is still "no". (Sorry ;-P)

Our compensation on the Travel side (RTA’s) is not weighted any differently for those either “inside” or “outside” of YTB. All travel commissions are either 60% on sales made from your own booking engine, and the 10% override for bookings made in your Power Team’s booking engine, regardless of participation or involvement with the company.

There is far more incentive for us as RTA’s to be “Travel Agents” not “Secret Agents” and keeping this all to ourselves. Having even a small group of family and friends book with all Power Team Members increases one's circle of influence dramatically.

I will have to pass at this time on the rest of your comments. I would like to study them a little further, and who knows, I may even feature it. (As I like to do with you.)

PS – Anonymous apparently is not willing to participate in our adult conversation, and therefore will not have a voice until he/she is willing to act like one.

Thanks!