Just Picture It Now

There are times when I read or hear about something, and it just doesn’t sound right. I’ve been attempting to get my head around this California complaint off and on since the Convention. Something just didn’t fit. It’s a single state, with the help of Illinois who is still on the sidelines, and we’re still doing business in California. (More business by the way than any other state in the country I might add. ;-P)

If you’ve been involved in the Travel Industry for any length of time, you know who the major players are, who gets along with whom, who hates who, and who just doesn’t amount to squat in the Travel Industry. It’s no secret that the ASTA has put together quite a propaganda campaign against these so called “Card Mills”. Doesn’t matter that YTB now has minimum booking requirements before “cards” are issued, YTB is used because we happen to be the most visible in on the internet and in the trade publications. (Legislation YTB was able to overcome and win in California I might add.)

I had an opportunity to read the complaint that was filed some time ago and one term stood out for me that made me think of one particular organization right off the bat. Since I didn’t have anything substantial at the time, I passed it off as nothing more than a logical guess. However based on this organizations educational piece (choke) the complaint read very similar to the 2005 propaganda that is now being regurgitated oddly enough based on similarities to the California complaint.

Like many now who “think” they have the upper hand now that they have a complaint, it’s not surprising that this group feels safe in promoting their position on the issue, along with a few on the internet appear to be rather boisterous.

I do have to add that I also believe that this “announcement” from this group was also predicated by a need to “out” a former President of their organization for coming over and supporting the very company and model they feel is damaging their industry. (Please note: YTB didn’t make the connection or initial statement, a seasoned Travel Journalist did.)

Oh…did you hear the Davidoff’s are now going to conduct three classes on the company Seminar @ Sea? (Check the latest Travel Compass or my Newsletter this weekend.) Like Marc Mancini and his Geography Bowl down at Funshine in a few weeks, looks like this excuse about lack of training from the other side is just that, an excuse.

Unlike the above industry leaders who offer solutions instead of a steady stream of complaints, the ASTA has a rather long history in attempting to derail the MLM business model. The majority of damage however has been nothing more than propaganda that I suppose some people have taken heed in. With such a powerful force, and I use the term loosely, you would think they would have had more of an impact on ridding the travel industry of the “Card Mills” they report to have damaged them so.

Now we have documentation direct from the horses a… err mouth that they’ve already filed one suit some time ago in California, and while not directly implied, sure looks like they feel mighty proud of the weight they are pushing around once again in California.

I caught wind earlier in the week of the ASTA making claims to have filed a complaint with the FTC back in 2006 about this ever so popular “pyramid scheme” excuse everyone likes to throw out. (The e-mail was copied and pasted in the blue response at the bottom of this post.) It wasn’t until yesterday however that I finally got something a little more substantial.

And a whole lot more.

I want to address this complaint with the FTC as to why nobody every heard a word about this from the FTC, and highlight the excuse. (It’s pretty funny actually.) Here’s the gem as it’s worded from the ASTA.

“We also complained to the Federal Trade Commission, but our request for a trade regulation rule was denied in large part due to lack of support from the supplier community.”

I find it hysterical that they blame the suppliers, the very life blood of their business for letting YTB slip through the cracks. Had nothing to do with the fact that they couldn’t come up with valid complaint the FTC would listen too now would it? Nor could it be that are mistaken or more accurately don’t have a clue what a “pyramid scheme” actually is.

You can’t fit a square peg into a round hole. I do have to wonder however why they just didn’t announce a “do over” like they did in their past election.

Did the FTC not realize that this was the ASTA? Look, it doesn’t matter how big and bad you try to make yourself, you still have to prove your case in this country, (THANK GOD) before the Government will find you guilty and actually enforce action.

Why do you think we’re still doing business in California even with such a large amount of money up for grabs?

I often find a blurb from the SEC posted on the Internet concerning the FTC’s stance on pyramid schemes. Why do they use the SEC you might ask? Don’t really know, but my guess is that it “sounds better” than what the FTC has up concerning illegal pyramids.

Again…I need to add that the graphic the SEC has up concerning more participants than the world population has yet to happen in a single solitary MLM. Many of whom have been around for decades. (But don’t let that stop you from listening to a Zealot when they post something like this for you.)

So, the ASTA fails in getting the FTC involved, (as I’m sure many other Zealots have attempted to do) and they spend the next couple of years hitting up any State that would listen and finally found one desperate enough to file a suit. Call it whatever you want. Stupidity – greed - political advancement - I don’t care, but since the FTC, Florida and now Illinois have never stepped up to the plate, what do you think ol’ Gerry has in regard to this complaint?

Nothing more than a very dry bone of contention.

While I know some laugh at this notion that a group or organization in the Travel Industry would have the kind of pull or clout to lobby Politicians. I find it interesting that we have a second article within the last week of more lobbyist throwing money at Politicians, although from the supplier end, but a cool $297K Q2 adds up to organizations getting exactly what they want through what ever Government agency (State or Federal) they think they can purchase.

Those who subscribe to my Newsletter know my stance concerning these suits being nothing more than a personal attack. A complaint filed in an attempt to slow or even destroy a company that is “growing to big too fast”. (The AG’s statement, not mine.) I realize that like terrorists, some flat out deny any involvement, and I’ve stated that I would agree some were not involved. (Not that smart, and not their mode of operandi.)

That doesn’t mean however that there is an organization that does have just enough clout (or money) to push something like this out into the public eye. Unfortunately for them, that’s about as far as their going to get based on the failures they’ve faced concerning past efforts. Which include the FTC, other states who never moved past the investigation mode and California Legislation that was merely a blip on the radar screen and clearly separated YTB from this notion of being nothing more than a “Card Mill”.

Oh, before I go. I did happen to send this “gem” up to the home office with an idea of getting everyone together on the Seminar @ Sea with the Davidoff’s and sending the ASTA a postcard from the Seminar entitled “Greetings from Cozumel”.

PS - If you’d like to keep up to date with all the latest news, acquisitions, and developments with YTB feel free to sign up for my FREE Newsletter. Just like here, it’s loaded with food, water and sunshine to grow your YTB business.

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

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Travel Reservations: 1.800.243.4450
RTA #24635

Labels: "Card Mill", ASTA, FTC, Pyramid Scheme, Travel Agent Issues, Travel MLM, YTB International

Posted by TravelPro at 5:35 AM | Permalink

In this day and age of high tech gadgets, you just can’t ignore what technology has done for us. I’ll be the first to admit that I LOVE technology. This laptop for example is like my right arm, and when my old laptop bit the dust back around Christmas I was like a fish out of water.

I can certainly remember growing up when we had one phone in the family kitchen, rabbit ears on top of the TV to get maybe 4 television stations, (PBS was big when I was growing up.) days when we actually went inside the bank to open my first savings account from money made from my first job, and mail had a stamp instead of an “e” attached to it when it came.

I’m sitting here as I type this evening with my son on the desktop computer in the office as he plays a couple internet games with Curious George. (PBS is still big my household.) My daughter is so well versed in recording her favorite shows on the TiVo, and while her shows are never overridden by MY favorites, (NFL Football and the Pittsburgh Steelers) I do find myself having to weed through a ton of kids shows before I find anything to my liking.

At times I have to admit I get a little jealous over the fact that my two kids have these types of entertainment options. By the time McDonald’s Playplaces started to show up, I was already way to big to fit inside the tubes. (Yes, I’ve tried.)

I firmly believe the one technology advancement that has made more of an impact on our daily lives today are computers and the internet. I barely even touched a computer until I went back to school in the very early 1990’s and at the time thought I was behind the times. I’ve since realized that I was very much of an early adopter of this technology and while just about everything I’ve learned concerning computers has been “self taught”, I happen to know far more about how to communicate effectively than the average person.

There is no question that computers and the internet has reshaped the way we communicate, purchase products, and acquire information. I can’t remember the last time I actually saw a weather forecast for example, but had a very close eye on Faye this past weekend as it skirted south of Atlanta. We needed it to hit here in a big way. You need to look at Lake Lanier to see why.

Back in November I pulled up a 2007 report which documented how on line travel sales not only reached a whopping $146 billion, but for the first time in history, nudged out offline sales with 52.5%. PhoCusWright has been surveying and reporting on travel trends for the last 10 years and in their latest report, there doesn’t seem to be any slowdown of the trend towards online travel sales. Frequent travelers and seasoned online buyers continue to dominate, but now the former “diehard” offline users have begun to use the Internet as their usual method for travel shopping and purchasing.

There has been a lot of talk of how inferior people are who purchase travel on line. It’s been speculated that the level of intelligence and net worth of people who actually purchase on line is far less than those who use a Traditional Travel Agent. We are less educated, make less money, and don’t have the proper resources available to us to make an informed educated decision about our personal travel or vacations.

It appears that we now have some actual data of just who purchases online travel. While I can’t supply the actual data from this report (costing a pretty penny) I did find a nice outline of this report which I found rather enlightening.

I’ll let you read the outline on your own, but wanted to highlight what I thought was the meat of this report for you here.

“According to the survey, these "next generation" travelers are highly educated (30 percent with a four-year college degree; 20 percent with at least one year of graduate school), affluent (30 percent of households with an annual income in excess of $100,000), and are equally likely to be Echo Boomers (18-28 years of age) as Baby Boomers (43 to 61 years of age), thereby debunking the belief that the usage of new technology is concentrated among younger travelers. They have a zest for travel (75 percent would travel more if they had more money; 62 percent would travel more if they had more time) and spend, on average, over 50 percent more on travel services annually than their less tech-savvy counterparts.”

It’s odd to me how planning a vacation should be reserved for those who have the proper training and credentials which are touted to be equal to being a Medical Doctor or Rocket Scientist. It just can’t be done without the help of our “Professionals”. (After what I’ve experienced this last year, yes, I use the word “Professional” very loosely these days.)

After reading the bits and bytes from this article, it appears that those that make their own bookings are quite educated and thanks to technology and this sharing of information on the internet, the long kept secrets of our “Professionals” are now available to everyone. “EP” for example, is now spelled out as being nothing more than a “European Plan” for the average consumer.

Last Wednesday, I highlighted how Arnie Weissmann believes our model of self service is here to stay with or without YTB. Now it appears that PhoCusWright is providing the proper demographic might add some validity to his case.

PS - If you’d like to keep up to date with all the latest news, acquisitions, and developments with YTB feel free to sign up for my FREE Newsletter. Just like here, it’s loaded with food, water and sunshine to grow your YTB business.

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

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Travel Reservations: 1.800.243.4450
RTA #24635

Labels: Network Marketing, Social Networking, Travel Agent Issues, Travel MLM, YTB Travel Network

Posted by TravelPro at 6:13 AM | Permalink

Being the Internet Marketer I am, I can always tell when people are talking about either what I write, or about me specifically. Such was the case yesterday, when I found a few hits from one of the old watering holes.

I’m not quite sure what I should take from this post. I’ve heard this type of talk of “common ground” before from the author, and it’s been commented several times about getting together to hammer out how mutually getting along could go a long way in easing the animosity and anger we’ve all come to know.

Problem as I see it however is no matter what YTB does, it’s never going to be good enough. I’ve learned an awful lot about this small group of Traditionalists in the past year, and no matter what YTB does, no matter what YTB comes up with, no matter what advances YTB makes in the Travel Industry, it’s always met with this “Yeah But” Syndrome. (YBS for short.)

Take the Davidoff’s training at the National Convention for example. A good article from someone who obviously knows something about the Travel Industry also who sees something positive in the MLM model and recommends the model deserves close study, not condemnation.

What do we get?

“Yeah, but they were paid!”

What’s so frustrating for me specifically about this author, and the mindset of these few Traditionalists was summed up on one comment in the original post.

“But if indeed they are seeing a future for YTB, maybe it is time for them to inform the rest of the world, and not via a sound bite for an article.”

One, THEY seem to be the only one’s who can’t accept one of their own who was able to get past their own limiting beliefs. And two, if it really was that important, why don’t they just pick up the phone and ask? Is it really that hard to do?

Apparently yes, because that would mean they would actually have to do something in order to be informed, and that’s exactly why these few Traditionalists are no farther along than they are concerning acceptance or even tolerance and why we’ve been round and round in circles for almost a year now.

I once heard the definition of insanity explained like this.

Doing the same things over and over again and expecting different results.

If the answer is finding some common ground here, maybe it’s time to change the way we are doing things?

YTB has made many changes since I’ve been associated with the company. It’s constantly growing and evolving. While I understand some view the company as being “reactionary” that’s not always the case, and it’s not always a bad trait to have when it comes to building a business.

Case in point; Marc Mancini was hired to do our E-Campus Training before all the attention YTB was getting about not being focused on Travel. The announcement of Royal Caribbean as well came just after our second Funshine Travel Show of the year. YTB has always had Travel Training for those that want to focus on that aspect of our business.

“Yeah, but it’s not your only focus!”

I’ve also mentioned here before that the California Legislation passed in January of 2007 and the outcome of minimum booking requirements. These requirements for RTA’s concerning credentials not only put California on the map in terms of number of RTA’s, but were so successful; YTB rolled it out company wide. It added legitimacy for the average person that our Traditionalist’s react with this “Yeah, but $2,500 isn’t very much.”

As a side note: did anyone pick up that the California complaint does make the old claim that YTB is nothing more than a “Card Mill”? As if the minimum requirements they were responsible for didn’t exist?

Suppliers and Associations alike have also made solid changes to help curb the illusions that all YTB is after are perks. Carnival for example installed new minimum requirements for FAMs back in January, and now CLIA has installed requirements for Accreditation for those of us who want to gain added respectability.

“Yeah, but how many of you are really going to achieve that?”

I really didn’t want to go into the “reaction” of these Traditionalists when YTB hit Travel Weekly’s Power List in 2007.

“Yeah, but those are fees not Travel Sales!”

That’s still ringing in my ears. Even Travel Weekly got tired of backlash when the 2008 Power List came out.

“YTB has to be singled out because it faced another year of controversy because of the structure of its business – losing IATA and Royal Caribbean accreditation. Editors checked with the company multiple times to ensure that its reported total represented only direct travel sales, not referrals or any other nonqualified revenues.”

Arnie Weissmann knows all too well just why this quote was inserted into the Power List. In October, Arnie made the mistake of writing about YTB right after YTB was front page news in all of the travel publications. At the time I don’t think he understood just why suppliers tend to shy away from defending the YTB business model. Over the last year, Travel Weekly has had to endure what Arnie has described as “colorful” comments. A sampling of words used in these comments would include “lazyass,” “parasites,” “pushy,” “jealous,” “stupid,” “cowards,” “misleading and malicious,” “idiots,” and “wannabes.”

By the way Arnie, thank you for teaching me a new word. ;-P

I happen to agree with Arnie that the animosity and anger towards YTB really doesn’t solve much of anything. I also agree that YTB has brought some of this on themselves with some of what I’ve seen by a very small group of people. While I know it’s perpetuated as the majority of YTB, but in reality we’ve been labeled with examples of far less that 1% of the company.

Look, we know our model works, there’s no doubt about that for us. I understand the frustration about not getting the respect we want, but we can’t do that by talking about respect, we have to DO it.

In no way am I condoning the tactics of the Traditionalists here. I find what they do not only unprofessional, but frankly childish and extremely unproductive. What I’ve learned in the past year is that there are some people who need to bully and “out” the faults of others in order to make themselves feel better about who they are.

It’s a fault and a trait that isn’t our responsibility to change. Some have been at this for over a year now, and they are no closer to accepting YTB as a legitimate model than they were when this whole ordeal erupted.

With this small group, we’re always going to hear the “Yeah, but’s” because that’s what they’ve been trained to do. Remember, we’re the ones who are brainwashed and have had this type of thinking cleaned from out thought processes.

It’s a big reason why YTB continues to move forward.

By the way, for those who want to promote all this doom and gloom about the stock price and the suits, take a look at what another so called “pyramid scheme” not only endured, but overcame back in 2002 with no less than 31 suits filed against them and $20 million for construction of a new corporate headquarters, heralded as the "first skyscraper" in Ada, the rural Oklahoma town where the company is based.

Any guessed were some of the investors who sold that stock are kicking themselves right now based on all the hype they bought into?

Labels: Critics, Travel Agent Issues, Travel Agent Training, Travel MLM

Posted by TravelPro at 5:45 AM | Permalink

Back in November I had the pleasure of speaking with George Dooley in an interview concerning Travel MLM’s. I was impressed with George’s open mind and his willingness to not only listen, but his sincere desire to understand the MLM business model as it applies to Travel. He like me understands and recognizes both the Pro’s and Con’s concerning what YTB has done in the industry.

I’m pleased to see that George is still learning and reporting, and apparently objective, although via a different Trade Publication and attempting to provide both sides of the YTB story in a fair and unbiased manor. Of course, I can’t blame him for the focus and subject matter, YTB has been a very hot topic for months now, and there’s always something interesting to write about concerning this particular Travel MLM. (I should know. ;-P)

Personally, I have no problem with both sides of the story, as long as it’s intelligent, and it appears that most of YTB doesn’t have a problem with it either. Last Thursday, George interviewed the current President of PATH, Andi Mysza concerning his opinions of YTB and the litigation going on. I happen to agree with Andi concerning his quote:

"Today's travel professional should be focusing on knowledge, education and building a relationship with the customer while selling the experience. If your host is not encouraging this, you need to step back and reevaluate your choice in hosts."

Based on the lack of comments concerning the article, I don’t see much opposition to this particular statement. Sure there were a few from both sides, but the few comments posted had praise for both PATH and the California AG for the attempt to rid the “pariah” known as YTB.

George’s next piece regarding YTB, published the very next day, which not only favored YTB, but highlighted a couple of industry veterans appeared to have peaked a little controversy. The piece highlighted Davidoff Associates, who are working with YTB to enhance its travel agent program along with another respected educator, Marc Mancini, who is also assisting YTB in creating a comprehensive professional education and training program.

Comments include:

“I guess the Davidoffs and Mancini have drank the kool-aid.”

“The Davidoff's and Mancini's last check probably just cleared the bank so they felt safe in making those remarks. They are paid stooges.”

“Welcome to the cult Mr and Mrs Davidoff.”

And my favorite from the same “author”…

“All this really doesn't matter as YTB will be gone in the next couple of years as is the history of MLMs.”

I have to ask…why is it that seemingly intelligent individuals can’t work towards a solution but instead always focus on the problem? I’ll be the first to admit that YTB isn’t perfect, (do you know any business model that is?) but why the negativity and hostility towards anyone who apparently wants to make a contribution to help?

The excuses some people come up with, and the unwillingness to resolve and correct issues, right or wrong, is sad to see. What’s even worse is how I see time and time again this label of “shame” that’s thrown around for anyone who supports the MLM model. I’ve seen it for years, and for the record, this “shaming” of people, is more telling about the author who doesn’t have a legitimate reason or complaint towards the opposition.

It’s a last resort based in anger or ignorance.

The history of MLM is rich (pun not intended) with companies like Avon (1890), Mary Kay (1963), Nutralite (1934), Amway (1972), Shaklee (1956), Herbalife (1982), Fuller Brush Company (1905), and Tupperware (1945). All companies still going strong and thriving in the MLM business model.

So what gives?

Here’s the real problem as I see it as taken from the Davidoff’s.

“YTB may well be the future of retail travel sales and deserves close study by the industry— not condemnation.”

That’s what scares most of the Traditionalist to death and they see it, make no mistake about it. When Travel Weekly came out with the Power List this summer and they saw that YTB not only made it AGAIN, but the jumped 9 spots it was time to hit the panic button. To make matters even worse and add insult to injury, Travel Weekly even stated that they singled out YTB to make sure that the numbers that were reported were actually “travel sales”.

In addition, they see 300% growth in the ranks year over year, and as the California AG’s office said, “They got too big, too fast” so something has to be done.

I don’t know if you know this or not, but when I stated that this complaint was a planned attack on YTB to coincide with the National Convention, some laughed at me. (Imagine that...) The excuse given was that the small minded group who stated this, thought I was talking about them. Truth be told, it’s not THAT groups M.O., and honestly, none of them have it in them. They’re perfectly content wallowing in their own Poor Me Stuff (PMS) and shaming anyone who tries to make some type of intelligent dialog.

As it turns out, it looks as if there is some discussion going on now in Legal circles for a growing call for AG reform.

No kidding. I have a Readers Digest Condensed version of the write up for anyone caring to read, and you know me, I had to check it out from a reliable source to make sure it wasn’t all smoke and mirrors.

So now we have documentation that California, among other states have been on the take from “Special Interest” groups, or hand over Legal Suits to their “pals” in order to make additional income for the AG’s.

Say it isn’t so!

Well, I will say this. There’s nothing to prove at this point if this happens to be the case between the California AG and YTB. The two go quite nicely together however based how the suit is riddled with MLM myths and legends to bring down the “pariah” that some just can’t seem to get rid of.

I don’t know if we’ll ever find out the truth about it from the Attorney General however. Like always, it’s up to us [YTB] to prove things. ;-P

We may however see, as the plot thickens and as YTB turns the industry on it’s ear.

Labels: ASTA, MLM Myths, PATH, Travel Agent Issues

Posted by TravelPro at 5:17 AM | Permalink

While I was reading this week, I caught a couple of threads with the infamous “predictions” of what our Quarterly Reports would look like. One fruit cake actually speculated a $6 million loss…for the quarter. It’s one of the reasons I don’t like to put things like this out there, you look like a real ass when reports like ours come out.

Of course we’ve learned that “critics” like this spend all their time promoting negative information and spin, and while the “spin machine” hasn’t gotten into full swing concerning the numbers, I’m quite confident that it will be more doom and gloom. Truth of the matter is; it appears that YTB has curbed some of the spending it could in order to reduce losses from the proposed $6 million, to less the $200 thousand.

There are of course expenses that YTB could not control based on the foundation it put into place back in 2007, such as 135,000 square foot home office renovation that should be complete in 2009. It’s odd how critics who know so much about us Network Marketers like to talk about the Corporate Jet purchased that Coach, Scott, and Kim will escape in when the imaginary house of card begins to crumble. Somehow they ignore the $5.7 million in property and equipment spent this quarter alone which should be a big clue that they Founders intend on staying right were they are. Salaries and benefits increased by $2.1 million, while building overhead increased approximately $900,000 due to the increase in employees and number of locations in which YTB operates.

It’s interesting that Travel commissions and services for the first six months of 2008 increased $5,754,019 or 68.5% to $14,148,444 from the $8,394,425 reported in the comparable prior year period. While travel commission increased, the number of RTA’s has decreased.

This is a very important development, not because “the house of cards” is crumbling as some will probably predict, but because directly correlates to what I’ve been telling everyone for years. Please take note of a line on page 9 of the quarterly report that I’m very happy to see. I have to wonder if this line was specifically intended for a new critic we have?

“Revenues generated from the direct sales of travel are recorded as deferred revenue until recognized in the period the travel departure takes place.”

Meaning, travel commissions are not reported on our SEC filings until AFTER we actually have the money in hand to report as revenue. While the percentage of Marketing Commission (74.5%) and Travel Commissions (19.7%) have narrowed slightly the SEC report now states that recorded revenue from actual sales are not reported at the same time.

Who knew?

Proper knowledge of how our industry works could prove to be a very important element in California. Actually, some in California already know how this works based on the Legislation that went into effect back in January of 2007 when YTB was able to continue to offer credentials after minimum “booking” requirements were met.

Some however, must not have gotten the memo.

Overall, not a great quarter, but certainly not the horrible showing that was predicted. The key is going to be retention as it is with all companies. I do admit, it’s going to be somewhat difficult due to those who don’t verify what they’ll read from the critics. Proper education in just how we operate and what our model reports to the SEC will be key, and I’ll steal a line that our critics like to use all the time.

"The numbers don’t lie."

Truth be told, they've been lying for years, and it's my hope that when the suit is either thrown out, or YTB is found to be a ligitimate business model based on proper understanding of how revenue is reported, we'll find out just who has been lying to who.

Labels: MLM Myths, SEC, Travel MLM, YTB International

Posted by TravelPro at 6:19 AM | Permalink

Now that I’ve returned home from the National Convention and got a game plan together, I had an opportunity yesterday to surf a little on the internet. The drama going on in cyberspace concerning the doom and gloom surrounding everyone’s favorite subject has escalated once again. I must say that our critics are a very accomplished bunch. It shouldn’t surprise anyone that along with being Travel Experts, they also happen to be the be all and end all concerning the IRS, Franchising, and now of course both Civil and Class Action Law.

I continue to be amazed and dazzled in just “What Our Critics Really Know”.

With so much time being focused on our company right now, surfing and posting day after day, checking every news outlet, and posting on any number of blogs and message boards, I have to seriously question how financially feasible this activity really is. The obsession has escalated to a point that I find it hard to believe some are even sleeping at night.

And we’re the ones who have the problem. ;-P

It appears the new hero for our critics is the California Attorney General, and while the Civil complaint has only been filed, the mere news of the event has many cackling like little school girls. (Or is that “old hens”?) The drama going on right now is certainly at an all time high, and the speculation is running wild once again, just like it did when the entire supplier industry was going to terminate Travel MLM’s. Which today has been reduced to “IATA, Royal Caribbean and others” since the hope of any other supplier actually making the same mistake has long been gone. (Note the word “others” leaves room for just about any number of suppliers one can imagine.)

Now we find a Class Action suit filed in Illinois from two individuals I like to refer to as “ambulance chasers”. The hope is to collect group of individuals who only wish to capitalize in the perceived turmoil surrounding a company. It’s nothing new or unique as I’ve personally participated in a Class Action suit, although it revolved around the more commonly accepted scheme.

It’s a perfect opportunity to play the role of victim to make money.

I was forwarded a YouTube video on Monday to help educate me on why I need to get out of YTB. I have to admit, I did get a good laugh from this quote from the Attorney Generals Office in California when a representative commented and stated that YTB is, and I quote “Is growing out of control. It’s getting too big, too fast.” I’m guessing it’s better to be small and slow?? If so, you might want to check into one of our counterparts in the industry.

The growth of YTB the last two years scares the daylights out of some people and they believe it needs to be stopped. It’s not unlike the growth of Travelocity, Orbitz, Priceline, and Expedia, however the difference is that YTB involves Network Marketing, and many make the mistake that because it’s MLM, it can be toppled. There’s the perception of this house of cards and due to attrition, the general public needs to be warned it won’t last.

The same myths and misconceptions were said about A.L. Williams back in the late 70’s and early 80’s and although the company was folded into what is now known as Primerica, the foundation appears to be rock solid. We also can’t forget companies like Avon, Mary Kay, Pre-Paid Legal, Tupperware, and Amway who to this day still hasn’t run out of victims in their own house of cards.

While the sharks are swimming around the waters right now smelling blood and speculating the end of YTB, just because a complaint has been filed, or there is what appears to be bad news for the sharks to feed on, I have to wonder where YTB will wind up a year from now.

The Office of the Attorney General in Texas sought to shut down Mannatech an “elaborate scheme to defraud innocent consumers across the nation” (Here is the actual suit) In a similar case in Texas, the same Attorney General filed suit against BioPerformance that it’s merely a smokescreen to trigger the recruitment of more and more paying members into what appears to be an illegal pyramid scheme.

I mentioned USANA here before, and while “critics” attempted to shut them down via the SEC, the Securities and Exchange Commission closed its investigation without any further action. Like YTB, there were a couple of “ambulance chasers” who also attempted to capitalize on the negative news and spin out there concerning their investigation. Playing the role of victim appears to be a popular move weather you’re inside or outside Network Marketing.

We also can’t forget the mess Herbalife went through with allegations that their product contained lead!

The battle in California started over 18 months ago when legislation was passed concerning credentials. The legislation which went into effect in January of 2007 was meant to deter companies who simply hand out credentials to anyone who forks over money. Of course YTB was caught up in this mix, and it took several months of work for the company to hammer out an agreement which has now been taken Nation wide with minimum booking requirements.

I’m sure the theory based by Legislators in allowing YTB to provide credentials to those who book anywhere between $1500 and $2500 in sales would finally put an end to the heavy recruiting in the state. The perception was that even these minimal requirements would slow YTB’s rapid growth. We now know that their plan backfired as California exploded in 2007, largely due to separating ourselves from other “card mills”.

Oooops.

Now it appears to some that YTB has come to an impasse in the road. Cornered with no escape…yet again. I can’t say that I’ve lost count how many times I’ve heard this before, because I have been counting, and you should too.

YTB has always prevailed in the past, and this blip on the radar is no different. I think we might get our first taste of just how mislead our critics are come Friday when YTB files its Quarterly report. Rumor has it that there will be an even larger loss than Q1 by the self proclaimed “Head Critic”.

Should be a enlighting for sure!

Labels: Critics, MLM Myths, Travel Agent Issues, Travel MLM

Posted by TravelPro at 6:14 AM | Permalink

The 2008 National Convention ended with a bang!

Since “some” don’t want to take my word for the mood of this convention, (you know me, the spinner and liar that I am. ;-P) I’ll gladly step aside here with a report from St. Louis in an actual paper. (You know, the kind without any spin or hype thrown in for effect.) Here’s the report from a St. Louis paper on how he thought the 2008 Convention went, which I’ll let you read on your own.

I do find it amusing that any positive Press is instantly contacted, and then spun the other way. The report of 18,000 here has instantly been downgraded to 7500 based on the “friends and family plan”. Problem is, the Edward R. Jones Dome has turn styles to get a very accurate count of just who was in attendance this weekend, and numbers are numbers.

Some are also spinning that this suit being filed is the largest in Network Marketing history. ($25 Million) I haven’t really had much time to devote to checking into that allegation, but I suspect that it’s inaccurate. I did however instantly remember a suit for $2.75 BILLLION filed against with MonaVie. (Although true, company against company.)

USANA, also publically traded, is enduring a situation similar to that of ours from the Zealot crowd of Fitzpatrick, Taylor, and Minkow. We simply change the last names at this point to Frenaye, Ewing, and Holmes.

The YTB suit, I suspect, will be fought much the same way, on the internet, and in the media. They have a new trump card to throw out and based on what little I’ve seen, they’ll attempt to take full advantage of this new development to slow the growth.

They are DESPERATE to make this convention, into a failure.

If you remember the weeks before this Convention, word was that both GreenPeace and ELF were going to be here protesting how environmentally unfriendly we are for damaging our Environment because Lady Liberty was going to end up in a landfill.

Anybody, want to take a stab at any type of news or people showed up for the HUGE protest that was going to be formed in front of the Edward R. Jones Dome?

If your answer is any more than ZERO, you’re mistaken.

Just like everything else that is pitched as a HUGE problem for our company, when it’s all said and done, there’s really not much to it, is there?

One last thing before I pack the laptop up. When I told everyone to check the newsstands and bookstores; that meant getting off the computer and actually getting your lazy butts to a bookstore to see who is on the front cover of “The Saturday Evening Post” this month. I know it's hard to stay away from the keyboard to spin stuff out here on the Internet.

We’ve learned here many times, that you just can’t Google something to find what’s really going on in the real world.

Talk with you soon!

Posted by TravelPro at 7:46 AM | Permalink

Don't have much time this morning, but I know there's been plenty of talk and news about this for months! If you want to find out more details on the actual announcements, you'll have to subscribe to my Newsletter. (Which by the way got me an Award and a free cruise last night!)

Posted by TravelPro at 5:54 AM | Permalink | Comments

The General Session opens this morning for the 2008 National Convention. The last two days have been spent in training classes from some of our Directors that have been exceptional to say the least. While everyone here is aware of the carefully orchestrated events that started this week in an attempt to dampen our National Convention, after a couple of days of looking around at the crowds here (some 18,000 so far just for Training) the mood is extremely upbeat.

The plan to insert fear and doubt here in St. Louis is noticeably absent, and quite honestly, I’ve seen more of a steely eyed smirk on most of the faces here. Anyone who reads this case and knows anything about the Network Marketing industry knows and understands the common catch phrases used by “critics” who buy into all the myths, rumors, and hearsay about our industry.

It really doesn’t take a rocket scientist to see the holes. I asked a question here on Wednesday about how much money a small group lost. Maybe I missed it due the fact that I really haven’t had much time to look, but me thinks just like everything else that is presented that brings home facts instead of spin and hype, they ignore key questions and deflect to something they can spin.

Again, it’s been a really busy couple of days, and while I haven’t been able to read much that’s out there from our critics, about all I can tell them at this point is this.

Thanks for sharing and thank you for your concern, but were gonna be just fine.

Honest.

Of course, that won’t register and is probably nothing more than lip service for the few it’s intended for. As history has proven time and time again with our company, critics often have to be shown and not spoken to. I made a list about a month ago of all the times this company was down for the count, out of business, finished, kaput.

Based on that kind of track record, I’d recommend for those of us on the right side of this, to just let them rant and blow their own horns. If they have nothing better to do with their time then point fingers at you, they obviously don’t have anything worth while going on for themselves to keep them occupied. Why would you or anyone want to take the advice from someone who is obviously board, killing time, and/or obsessed with destruction instead of building, creating, or growing?

Which I remind you, growing is exactly what we are doing and why they are trying to stop this company. Facts don’t lie and they see this train coming. Our Annual Report produced $141 Million in revenue and they see our Reps size getting bigger and bigger. They see $414.5 Million in travel sales, with 83% growth which means their piece of the pie getting smaller and smaller. Fear of loss is a HUGE motivator.

Again, I’ve been able to read very little concerning our critics right now, but I think it’s save to say that the arrogance and victory from these self proclaimed judges and jury right now across the board is premature. They seem to miss the fact that it’s really not up to them to decide this case as it goes to court. They don’t have to power to decide for you, and while they would like you to believe that this will be decided in the court of public opinion, California needs to decide in our Judicial System which in this Country states the we are “innocent until proven guilty”.

Network Marketing folks has a target on it’s back, and if you don’t believe me, just take a look at how USANA and Herbalife were attacked this last year. (And more importantly, where they are now!) All the talk right now is nothing more than and attempt to bring you down to a level we chose to rise above when we joined our respective companies.

Here’s a little exercise I learned a couple days ago during the training that I want to try on you. See if you can finish these sentences for me.

Money doesn’t grow on _________.
Rich people are ________________.
If it sounds too good to be true, ___ _____________ ___.
It’s is better to give than _____________.
Get a good education, get good grades, and find a good ______.
Money doesn’t buy _______________.

Notice how you’ve been able to finish every one of those sentences? And they say WE’RE the ones who are “brain washed”! The garbage you’re reading on the internet right now came from the same people who gave you the answers to the sentences above.

I will not only readily, but GLADLY tell any one of the arrogant and self absorbed bunch of critics that yes, my brain has been washed from the filth and garbage they’ve attempted to implant in my head since I first took breath on this earth. That’s what washing and cleansing does.

Dah!

I got a chance to see some of what is going to be rolled out over the next few days last night at the Coach’s Corner Dinner. A group the size of our National Convention 2 years ago with over 4000 in attendance with people who helped build this business for the same price a couple of our critics paid a few weeks ago. I’m not going to leak what was said, what is going to be rolled out, or what we have to look forward too at this time. (Based on the numbers I saw coming in last night, there are too many of you with this company already here to see first hand this morning.)

Liberty and Travel for All is our theme this year. From the looks of it, we’re ready to celebrate what this company has achieved, what we have overcome, and the direction we are going. Make no mistake, YTB is on the map folks and if by chance, you are not here in St. Louis today, head on over to any newsstand and book store and take a gander at who is on the front cover of the Saturday Evening Post this month.
It’s a good read, and I think everyone might want to take a look at just who the California AG is up against when it comes to making false and misleading claims about his company and his people. If it aint true don’t say it. If it aint right don’t do it.

Is it any wonder we feel awfully proud of who we are and what we are doing?

From St. Louis…Have a happy day! Doug & Candi May

PS - If you’d like to keep up to date with all the latest news, acquisitions, and developments with YTB feel free to sign up for my FREE Newsletter. Just like here, it’s loaded with food, water and sunshine to grow your YTB business.

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

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Travel Reservations: 1.800.243.4450
RTA #24635

Labels: MLM Myths, Travel MLM, YTB National Convention

Posted by TravelPro at 6:39 AM | Permalink

What I find so ironic is this “news” was embargoed Until 10:00 p.m. Pacific Time on August 4, 2008.

Nice timing huh?

I need to be very careful and general here concerning the events of August 5th. Travel Trade did a decent job of highlighting both sides of the story, including the 8K that YTB had filed yesterday afternoon.

A couple things have been running through my head and while John, the other TTA’s and I are not talking right now, maybe someone could ask John, Kate, Bruce and a new player in the TTA mix, Mark this question.

How much did it cost any of them for a “chance to receive compensation to introduce one or more” into YTB? From what I understand, John has been very busy recruiting people into our company right now. How much has the bottom of his pyramid lost? How much has John made from all the recruiting he has done?

YTB has worked with this AG concerning both RTA and CLIA qualifications that are now rolled out Nation wide, yet we are deemed to “operate a “travel card mill” to permit and encourage consumers to hold themselves out as sellers of travel through the use of credentials”.

I would also like you to view this video of Rick Ricketts presentation and note the statements at both 3:00 and at 3:15 in this video. Both done for the benefit of California and now rolled out Nation wide.

Yet, we are driving around Porches and flashing checks according to the suit filed.

Please remember that this is a civil case folks and the State needs to prove that these “claims” are misleading and unfair. The buzz here at the Convention after reading the wording of the suit is the States claims are misleading and unfair, not ours.

I have to agree with our Legal Counsel in California, that we have a very strong position in this case, and based on the events and changes to comply with any legal matters concerning a “pyramid scheme” that concerns California or any other State will be left unfounded.

This case could settle once and for all any claims about YTB being a “pyramid scheme”.

Knowing what I know about the wording from the FTC and the State at this point, I like our chances.

We shall see.

Off to class!


PS - If you’d like to keep up to date with all the latest news, acquisitions, and developments with YTB feel free to sign up for my FREE Newsletter. Just like here, it’s loaded with food, water and sunshine to grow your YTB business.

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

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Travel Reservations: 1.800.243.4450
RTA #24635

Labels: "Card Mill", John Frenaye, Pyramid Scheme

Posted by TravelPro at 6:14 AM | Permalink