More Press For YTB!
We have another columnist in our midst who believes he has all the answers and proper positioning when it comes to Multi Level Marketing. In the last few weeks James Gilden has regurgitated an article in the LA Times and the Chicago Tribune with his experience and insight into YTB in particular. Because, Mr. Gilden's piece is published in well respected publications like the LA Times and Chicago Tribune, (and from my understanding to be published as well in the Kansas City Star) Mr. Gilden MUST not only know what he's talking about, but his views and opinions should be taken as gospel.
I have to admit, I came very close to violating one of my own golden rules, which is "Never believe a word I say, without verifying it on your own to be true". In the process of "verifying" this article part of my due diligence was checking into Mr. Gilden's "credentials" so to speak. What's amusing (to me at least) about Mr. Gilden is his focus is on internet Travel specifically and is dubbed "The Internet Traveler". James first began using the Web as a travel resource in 1996, when United Airlines introduced the United Connection software for booking airline tickets online. (About the Writer) His own statistics state the following:
"The number of travelers like you who are booking travel online is staggering – more than 91 million made a travel reservation online in 2005, according to the U.S. Census Bureau. Half of all travelers now use the Internet to buy – not just research – travel, according to a November 2006 survey from market research firm J.D. Power and Associates, up from 46% in 2005. Online travel spending in the U.S. in 2006 will be $68 billion, up about 15% over the previous year, according to comScore Networks."
If anyone should get that Internet Travel is changing this industry, he certainly should.
However, James, like so many others can't get this Network Marketing
aspect of YTB out of the way long enough to take a serious look at why it's not only smart, but potentially lucrative to own your own Travel Agency where these same 91 Million people made travel reservations in 2005. Because YTB has three dirty letters (MLM) attached to it's name to promote and build our business, these opportunities in Travel couldn't exist for someone like me because the model is not only flawed, but will inevitably collapse on itself.
It was my understanding that the second articles released in both the Chicago Tribune and Kansas City Star were to be a "much expanded" retort on our company. I don't see much expanded, other than a quote or two from one of the most influential in the Travel Industry, J. Kim Sorenson, and it's not all that surprising that our Company President isn't shown in the best light. Why anyone would expect anything more, given the limiting beliefs about Network Marketing in general would be asking a bit too much.
About the only other change between the first LA Times article and the "expanded" article was a note that a former RTA was actually refunded money after giving his YTB Business a short 3 month stint to see if he could get discounts. YTB cerainly didn't have to refund any money to this individual, as it's clearly stated in our terms and conditions he is limited to 5 days in order to be eligable for a no questions asked "refund". I'm not aware of any investment who will refund any money after 30 days let alone 90. If there is...let me know.
John Frenaye made a couple of comments on his Blog about the article(s) and not surprising, he's of the same limiting belief of Mr. Gilden. Apparently no one knows, (including Kim Sorenson) where the $7 Trillion a year number about our industry comes from. (Anyone, who does their own research can find this number in a report from The World Travel & Tourism Council.) This report by the way, is quite extensive and also supports other numbers of interest.
We are also directed once again to look at the company financials comparing revenue from Marketing with revenue generated from Travel. YTB currently has 575 Group Cruises "on the books" for 2008 (minimum 30 cabins per group) and not on our financials until next year when commissions will actually be paid. I've been over this so many times my head hurts from the wall that's put up by those who simply "don't get it".
Side note: I have clients in Germany this week who booked this trip with me in November of 2006. I got a card from them today expressing how much they enjoyed their first night on the Rhine looking at all the beautiful Christmas lights. However, it won't count until it shows up on the Q1 2008 financials when we have some 150,000 RTA's (instead of the 60,000 at the time of booking) who have been paid for Marketing the company, and not selling any travel.
Oh well...
We are left to assume that the "average RTA" only earns $82 per year and the following RTA's don't exist because the system is flawed.
- Tina from Houston, TX. Her total earnings for 2007 are $18,777.88 or an average of $1,707.08 per month for 2007.
- Ruth & Floyd from Frontenac, MO. Total earnings for 2007 are $12,995.65 with an average of $1,181.42 per month for 2007.
- Carol from Fort Lauderdale, FL. Total earnings for 2007 are $11,480.89 with an average of $1,043.72 per month for 2007.
- Lenore from Pearl City, IL. Total earnings for 2007 are $14,044 with an average of $1,276.72 per month for 2007.
So how did I come up with numbers like this? We have another columnist in our midst who actually took the time to ask what the travel numbers are, direct from J. Kim Sorensen himself, Travel Trade senior editor George Dooley. (George by the way is the same Senior Editor who interviewed me back in November.)
That being said, which article do you think might help in regards to helping you make an informed, educated, business decision about YTB? Who do you think might have done a better job in asking questions? Who do you think might be more credible based on what is being reported?
Before you answer, we'll take a closer look at George Dooley's interview from "The Man" himself, J. Kim Sorensen within the next day or two.
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Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
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Labels: Chicago Tribune, Kim Sorensen, LA Times, Travel MLM, Travel Trade, YTB Travel
Doug,
Thank you for posting some dollar figures. Up until now, when queried about income, the response from most YTBer's has been that it is "illegal" to disclose income. None of these people responding, however, have been able to cite any federal, state or local statute that says as such. The response is "go find it yourself", which I don't think would fly in a court of law. I feel when someone makes a statement to support their stance, the burden of proof is on them to substantiate the statement.
Now, my questions. Are these dollar amounts commissions from TRAVEL SALES only, or are they a combination of travel sales and sales of the websites, and any Rep bonuses? If they are from the sale of TRAVEL (air, car, hotel, cruise, tours, rail or any combination thereof) only, can these figures be independentally verified? Can the amounts listed be shown on some official form that states TRAVEL SALES COMMISSIONS?
I would also have to assume (which I know is dangerous) that these people listed are only working in travel part time, because these numbers are certainly not a "livable" full time wage.
I hope that you understand that I am not asking these questions to be "snarky", but just for clarification.
Posted by
Anonymous |
Wednesday, December 12, 2007
Dear “Snarky”;
(Sorry...couldn't resist!!!)
I’ve seen several links on various boards and Blogs about posting earnings and income claims. One that comes to mind off the top of my head is from Rod Cook. As an individual, I can not post my earnings unless I can find other examples that I can post that can also document the same level of earnings.
Yes, these are “Travel Commissions” not “Networking Commissions”. You would have to ask Mr. Sorensen if they can be independently verified, as he is the one who made these statements. Since these numbers are now documented and published, there isn’t any legal precedence that I need to be concerned with. Knowing Kim the way I do, I can assure you he would not make such a statement without being able to verify and document the statement as the legal requirement is now his own. (You may notice he referenced several individuals who are earning the same level of Travel Commissions thus staying within the legal requirements of “income claims”.)
I do not know if these individuals are full time or part time, and would agree that this income is not a “livable wage”. However, it is enough to make a house payment, a car payment, or a considerable amount for a retirement investment. It’s added income to their bottom line and I’m certain this income makes a substantial difference in their quality of life regardless, especially for a “Part Time Income” with no set hours, quotas, or Management to answer to. It certainly answers the dilemma of not having an extra $500 to begin with that I hear all too often from people who are working for someone else 9-5.
I’ll begin expanding just how and why this works in my next post, which I’ve yet to be able to even start. It’s my hope that I can help clarify even further for you and everyone else then.
Posted by
TravelPro |
Wednesday, December 12, 2007
Doug--nice explanation. I agree that it is a good house payment or a car payment, etc.
I would be curious to know as well, how much it cost these folks to market their business to achieve that. If they are spending an average of $1500 a month--well Houston, we have a problem.
The YTB fee, the YTB marketing material purchased,printing and so forth. I would not consider a computer, phone, internet, etc part of this as they likely had them in any event. Just the added expenses to be in the program and to bring in the clients that will let them earn that money.
Also, do you know if these folks are now "average" or above or below. The only thing I have seen is that July statement on the YTB site that really does nothing to impress anyone!
Posted by
John |
Wednesday, December 12, 2007
John;
I couldn’t tell you how much or even if they are spending any of that income on advertising, but it makes little difference even if they are. Any form of Marketing such as this would certainly be considered a “business expense” and would qualify as a legitimate tax deduction with the IRS. Any Marketing Expenses would be written off, with additional write offs for a computer, phone, internet, etc. Other deductions include my signup fee, and my monthly fee, car mileage and even part of my mortgage for having a “home office” qualifies according to my CPA.
There are two systems of taxation in our country: One for the informed and one for the uniformed.
Those that are informed can easily qualify and keep $5000 more in their own pocket each and every year.
For more information as to what actually qualifies as a legitimate Tax Deduction and why running a Home Based Business is one of the last great tax shelters in our country you may find interest in a two part series I did this past April in just how to convert your personal expenditures into allowable deductions.
Part ONE Can Be Found Here
Part TWO Can Be Found Here
Please Note: All tax matters should be reviewed by your tax professional. If you do not have one; get referrals from people you know and trust, and hire a tax advisor.
In regards to your question about average income, I've never bothered to consider what would be "average". YTB enables me to make as much money as I want, and I’m not interested in what the average RTA does, only what the best RTA’s does.
Being "average" stinks. I want to know what’s possible, and from what I know and have seen, the possibilities are endless.
Posted by
TravelPro |
Wednesday, December 12, 2007