Wanna Get Lucky?
I started a huge task weeks ago when I promised John Frenaye that I would get his questions answered. ALL his questions. Over the next couple weeks due to the length of this list, I have focused on each of these questions one at a time. My goal here is not only to answer the question, but also point out why this question is even asked in the first place.
This will also be an excellent opportunity and tool for anyone with additional comments about each of the specific questions to get better clarification. Use the comments section to discuss each of the questions in greater detail. I remind you that I learned how to accomplish such a huge task from Brian Tracy and his courses, which teach that you focus on the each task one at a time, focus on the solution, break it down into manageable chunks, and before you know it, you’ve achieved your goal.
It should be a really fun debate, and for those of you in YTB, take this information and documentation and use it. Here are the questions we have gone over thus far.
Question #1 - Why a compensation plan takes 12 pages to define?
Question #2 - How YTB arrived at $226 Million in travel sold for 2006. (Still waiting.)
Question #3 - Why so little of the "training" at the annual convention was for travel. (OK, YTB only believes in training at other meetings. We can let this one go.)
Question #4 - How nearly 150,000 RTAs can pay in the course of 9 months $79 million dollars in website sales, fees, and training; and receive $9.3 million in return. (This is huge...anyone?)
Question #5 - And for those that say I don't get the math, I did not learn how nearly 150,000 people paid in $79 million dollars and only got $64 million in return. (Hello? Anyone? Bueller? Bueller?)
Question #6 - Why it is a good thing to have your top executives selling off stock. (There were no takers on this one, so I am gonna assume that it probably is NOT a good thing as everyone initially thought.)
Question #7 - Why a 3:1 split was a good deal when two of the three shares are worthless. (Thanks to Doug for the most reasonable explanation of this. The split may have been a good deal but with the current value of the stock, it is anyone's guess.)
Question #8 - Why employees at YTB could not sell me a cruise on November 9th. (Still no answer on this one yet other than they don’t do anything till an RTA sells it. Well, the YTB site said to call them. Coach in an interview was touting how the res center is all staffed with professional agents. So, why is it that they cannot sell me a cruise, and how is it that they do not know that cruises do not depart from Phoenix?)
Question #9 - Why when presented with facts and figures, the argument mysteriously turns to "you don't understand". (This is another one that we will just have to say...because that is the way it is.)
Question #10 - How many RTAs drop out in a month...a year..... (This number I fear will NEVER be known.)
It’s amazing to me how John still doesn’t know this answer with all the “research” he’s done about our company. Of course, I think I know why he still doesn’t know. The numbers are found in those pesky financials nobody knows how to read. I’m very glad he hasn’t seen these numbers because he would certainly botch them, (like he’s done in the past with our financial numbers) and wouldn’t know what these numbers really mean, or how someone who is looking for an opportunity for growth should clearly understand. What John also doesn’t realize is that he’s had this number right under his nose for quite some time, and either just didn’t realize it or is simply putting the challenge out to us in YTB (as he so often does) to see if we actually know the answer.
Over the last several years, and also during my research on this particular topic, I’ve seen and heard all kinds of percentages bantered around about MLM drop out rates. If you Google “drop out rate for MLM” you’ll see percentages of 97%-98% bantered all over the internet. It’s been noted on several of these sites that most MLM companies hide these numbers (because they are so dismal and don’t want you to know) but they still post this percentage of all MLM’s anyway. (Interesting how they’re still so certain they’re correct about this percentage however. Hmmmmm.)
I’ve also seen MLM’ers come to the defense of our model with claims that 90% of ALL businesses fail or go out of business. Well, sorry to say, that’s not all that accurate either. The truth of the matter is, it’s very difficult to calculate and determine any percentage of success or failure in any business model. Throughout my years of experience in this industry and trying to start several businesses of my own in the past, I’ve come to realize that “averages” really don’t mean very much in terms of my success or failure. What’s more important to me is what all these authors in the right hand column of my blog tell me what I should be focused on, and that’s something called “Socratic Law of Causality”. Well, that’s according to the Greek philosopher Socrates, its better known today as “The Law of Cause and Effect”.
John (and others who oppose our business model) seem to have this notion that if you can simply point out to people how dismal your “chances” are in becoming successful or making any money in Network Marketing, your going to choose not to do it. I was reading one of the links during my research on this subject, trying to have a better understanding of “the other side” and I literally laughed out load at this author’s 3 key points in determining what it takes to become successful in MLM.
1. Work incredibly long days, day after day.
2. Talk to everyone you come in contact with, no matter who it is.
3. “Get LUCKY”
It’s never occurred to him that the reason they are “lucky” is because they actually work! MLM’ers who are successful in this business are just like any other successful business minded person or entrepreneur. They put in the time and effort to make it successful. (Cause and Effect)
One last point before we let everyone in on this “failure rate” everyone is dying to know about, and I have to go back to one of my many mentors again, Brian Tracy, who explains the “Pareto Principle”, which is better known as “The 80/20 Rule”. In 1895, Pareto noticed that 80% of the land and wealth in Italy was actually owned by only 20% of the people. This principle has been expanded over the years in study after study, and I personally use this rule when working my YTB business. 80% of my income, comes from 20% of my downline. 80% of my referral links comes from just 20% of the links I have out on the internet. Are you beginning to get the picture here? If you focus most of your time and effort on the most important tasks you have at hand, they will produce that largest return on your investment in time and or money.
Applying what we now know concerning both the “Socratic Law of Causality” and the “Pareto Principle” I will now direct you to YTB’s 2007 Income Disclosure Statement that John was given when he went to see Scott Tomer in Maryland during the founders tour in January.
In the very first column of this document, I want you to look at “average hours worked per week”. Notice that the more hours you actually work your YTB business, the more money you make? Is it any wonder why those who did not make a single dime in YTB are working less than 1 hour a week while those who are working 40 hours a week (Cause) as a Level One Director make on average of $85K (Effect)?
It’s amazing to me how you create your own luck. After an interstate highway was built to bypass his hometown, a gentleman sold his service station on the same day that he receives his first social security check for $105. After paying debts owed, he is virtually broke. He decides to go on the road to sell his “Secret Recipe” and got 1006 “No’s” before he made his first sale on a handshake agreement of a nickel for each piece of chicken sold. (If you haven’t figured out who this “unlucky” guy is, it was Colonel Sanders of KFC.)
Opportunities only go to those that are ready for them when they appear. It has nothing to do with “luck”.
Okay, drum roll please...
Now look at the middle column which lists the “Percentage of all Reps”. While this does not represent exactly how many RTA’s drop out per year or by month, it does show those who are now inactive since YTB’s inception. (February of 2001) Note the percentage of inactive Reps, 80.92%. Also note that the percentage of Active Reps (the column to the left) who are making the least amount of money is 77.17%. (They are also the folks who are working just 2 hours a week to create their own “luck”.)
Knowing what we now know in regards to “Socratic Law of Causality” and the “Pareto Principle” is it really fair to blame a particular business model, in this case MLM, or is this a severe case of mistaken identity by those who have no idea what they are talking about?
While I know that this topic and my positioning will rub some people the wrong way, it’s nothing new when speaking of these “Laws”. That’s common when you force people to think through the logical consequences of their thoughts and behaviors. It was one of the reasons why Socrates was put to death. (Beheadings have got to hurt!)
I’ve never worried about the 80%. I have (as should you) tried to figure out what it takes to make that 20% mark. That’s where my focus, my energy, and my time is devoted to create “luck” in this business. Tony Robbins calls it “modeling”, meaning that you find someone who is in that Top 20% and do what they do. It’s like baking a cake, if you put the same ingredients (Cause) into baking this cake, with the same measurements, in the same order, you will get the same results. (Effects)
Announcing Revolutionary New “Building On A Budget” For Home Business Owners:
This will also be an excellent opportunity and tool for anyone with additional comments about each of the specific questions to get better clarification. Use the comments section to discuss each of the questions in greater detail. I remind you that I learned how to accomplish such a huge task from Brian Tracy and his courses, which teach that you focus on the each task one at a time, focus on the solution, break it down into manageable chunks, and before you know it, you’ve achieved your goal.
It should be a really fun debate, and for those of you in YTB, take this information and documentation and use it. Here are the questions we have gone over thus far.
Question #1 - Why a compensation plan takes 12 pages to define?
Question #2 - How YTB arrived at $226 Million in travel sold for 2006. (Still waiting.)
Question #3 - Why so little of the "training" at the annual convention was for travel. (OK, YTB only believes in training at other meetings. We can let this one go.)
Question #4 - How nearly 150,000 RTAs can pay in the course of 9 months $79 million dollars in website sales, fees, and training; and receive $9.3 million in return. (This is huge...anyone?)
Question #5 - And for those that say I don't get the math, I did not learn how nearly 150,000 people paid in $79 million dollars and only got $64 million in return. (Hello? Anyone? Bueller? Bueller?)
Question #6 - Why it is a good thing to have your top executives selling off stock. (There were no takers on this one, so I am gonna assume that it probably is NOT a good thing as everyone initially thought.)
Question #7 - Why a 3:1 split was a good deal when two of the three shares are worthless. (Thanks to Doug for the most reasonable explanation of this. The split may have been a good deal but with the current value of the stock, it is anyone's guess.)
Question #8 - Why employees at YTB could not sell me a cruise on November 9th. (Still no answer on this one yet other than they don’t do anything till an RTA sells it. Well, the YTB site said to call them. Coach in an interview was touting how the res center is all staffed with professional agents. So, why is it that they cannot sell me a cruise, and how is it that they do not know that cruises do not depart from Phoenix?)
Question #9 - Why when presented with facts and figures, the argument mysteriously turns to "you don't understand". (This is another one that we will just have to say...because that is the way it is.)
Question #10 - How many RTAs drop out in a month...a year..... (This number I fear will NEVER be known.)
It’s amazing to me how John still doesn’t know this answer with all the “research” he’s done about our company. Of course, I think I know why he still doesn’t know. The numbers are found in those pesky financials nobody knows how to read. I’m very glad he hasn’t seen these numbers because he would certainly botch them, (like he’s done in the past with our financial numbers) and wouldn’t know what these numbers really mean, or how someone who is looking for an opportunity for growth should clearly understand. What John also doesn’t realize is that he’s had this number right under his nose for quite some time, and either just didn’t realize it or is simply putting the challenge out to us in YTB (as he so often does) to see if we actually know the answer.
Over the last several years, and also during my research on this particular topic, I’ve seen and heard all kinds of percentages bantered around about MLM drop out rates. If you Google “drop out rate for MLM” you’ll see percentages of 97%-98% bantered all over the internet. It’s been noted on several of these sites that most MLM companies hide these numbers (because they are so dismal and don’t want you to know) but they still post this percentage of all MLM’s anyway. (Interesting how they’re still so certain they’re correct about this percentage however. Hmmmmm.)I’ve also seen MLM’ers come to the defense of our model with claims that 90% of ALL businesses fail or go out of business. Well, sorry to say, that’s not all that accurate either. The truth of the matter is, it’s very difficult to calculate and determine any percentage of success or failure in any business model. Throughout my years of experience in this industry and trying to start several businesses of my own in the past, I’ve come to realize that “averages” really don’t mean very much in terms of my success or failure. What’s more important to me is what all these authors in the right hand column of my blog tell me what I should be focused on, and that’s something called “Socratic Law of Causality”. Well, that’s according to the Greek philosopher Socrates, its better known today as “The Law of Cause and Effect”.
John (and others who oppose our business model) seem to have this notion that if you can simply point out to people how dismal your “chances” are in becoming successful or making any money in Network Marketing, your going to choose not to do it. I was reading one of the links during my research on this subject, trying to have a better understanding of “the other side” and I literally laughed out load at this author’s 3 key points in determining what it takes to become successful in MLM.
1. Work incredibly long days, day after day.
2. Talk to everyone you come in contact with, no matter who it is.
3. “Get LUCKY”
It’s never occurred to him that the reason they are “lucky” is because they actually work! MLM’ers who are successful in this business are just like any other successful business minded person or entrepreneur. They put in the time and effort to make it successful. (Cause and Effect)
One last point before we let everyone in on this “failure rate” everyone is dying to know about, and I have to go back to one of my many mentors again, Brian Tracy, who explains the “Pareto Principle”, which is better known as “The 80/20 Rule”. In 1895, Pareto noticed that 80% of the land and wealth in Italy was actually owned by only 20% of the people. This principle has been expanded over the years in study after study, and I personally use this rule when working my YTB business. 80% of my income, comes from 20% of my downline. 80% of my referral links comes from just 20% of the links I have out on the internet. Are you beginning to get the picture here? If you focus most of your time and effort on the most important tasks you have at hand, they will produce that largest return on your investment in time and or money.
Applying what we now know concerning both the “Socratic Law of Causality” and the “Pareto Principle” I will now direct you to YTB’s 2007 Income Disclosure Statement that John was given when he went to see Scott Tomer in Maryland during the founders tour in January.
In the very first column of this document, I want you to look at “average hours worked per week”. Notice that the more hours you actually work your YTB business, the more money you make? Is it any wonder why those who did not make a single dime in YTB are working less than 1 hour a week while those who are working 40 hours a week (Cause) as a Level One Director make on average of $85K (Effect)?
It’s amazing to me how you create your own luck. After an interstate highway was built to bypass his hometown, a gentleman sold his service station on the same day that he receives his first social security check for $105. After paying debts owed, he is virtually broke. He decides to go on the road to sell his “Secret Recipe” and got 1006 “No’s” before he made his first sale on a handshake agreement of a nickel for each piece of chicken sold. (If you haven’t figured out who this “unlucky” guy is, it was Colonel Sanders of KFC.)
Opportunities only go to those that are ready for them when they appear. It has nothing to do with “luck”.
Okay, drum roll please...
Now look at the middle column which lists the “Percentage of all Reps”. While this does not represent exactly how many RTA’s drop out per year or by month, it does show those who are now inactive since YTB’s inception. (February of 2001) Note the percentage of inactive Reps, 80.92%. Also note that the percentage of Active Reps (the column to the left) who are making the least amount of money is 77.17%. (They are also the folks who are working just 2 hours a week to create their own “luck”.)
Knowing what we now know in regards to “Socratic Law of Causality” and the “Pareto Principle” is it really fair to blame a particular business model, in this case MLM, or is this a severe case of mistaken identity by those who have no idea what they are talking about?
While I know that this topic and my positioning will rub some people the wrong way, it’s nothing new when speaking of these “Laws”. That’s common when you force people to think through the logical consequences of their thoughts and behaviors. It was one of the reasons why Socrates was put to death. (Beheadings have got to hurt!)
I’ve never worried about the 80%. I have (as should you) tried to figure out what it takes to make that 20% mark. That’s where my focus, my energy, and my time is devoted to create “luck” in this business. Tony Robbins calls it “modeling”, meaning that you find someone who is in that Top 20% and do what they do. It’s like baking a cake, if you put the same ingredients (Cause) into baking this cake, with the same measurements, in the same order, you will get the same results. (Effects)
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Labels: John Frenaye, MLM Myths, Travel MLM, YTBLA
Doug..the document was about REPS who pay nothing to be in the system. What about the RTAs who are paying $500 and $50 a month?
Does YTB require timecards? As a member of Coach's Corner, are you only working 10 hours per week on average? You seem to indicate that this is a full time effort for you.
Where do the hours come from? And conversely, I might suggest that the people that are making greater than the $85K are working MORE than an average of 40 hours per week.
So the question remains--how many RTAs drop out of the program? We already know that Reps do not drop--they are kept in indefinitely since there is no cost to join. This has been stated over and over again by Proud to be YTB and LB Travel on my blog.
Posted by
John |
Sunday, February 24, 2008
John;
Your question WAS “How many RTA’s drop out in a month…a year?”
My apologies.
I have made an additional entry that specifically addresses that number of “RTA’s” who have dropped out.
Posted by
TravelPro |
Monday, February 25, 2008