Just Picture It Now

Friday, August 29, 2008

"Professionals" Come Forward...

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

Wednesday, August 06, 2008

Isn’t this special?

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

Monday, March 03, 2008

Looking For Keys In The Dark

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.

While I hoped this would be an excellent opportunity and tool for anyone with additional comments about each of the specific questions to get better clarification, I seem to have been doing an outstanding job. Very little has come from the "other side" to contradict what I have to say. The comments section to discuss each of the questions in greater detail has been lacking at best. I think they've learned early on in this process that documentation beats conversation any day of the week.

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.)

Question #11 - How long does an RTA continue to pay the fee before canceling? (Answered. They continue to pay as long as YTB continues to charge them and they jump through the hoops to get them to stop.)

Question #12 - How it is a misunderstanding with IATAN and Royal Caribbean. (Answered. It apparently was NOT a misunderstanding and RCCL called a spade a spade and it is what it is. YTB has moved on and said they would never do business with RCCL again.)

From what I’ve learned about the IATAN and Royal Caribbean situations, I believe YTB needs to take blame for IATAN, and Royal Caribbean needs to take blame for Royal Caribbean. John is correct however, that YTB has clearly moved on and while everyone thought this would devastate our business back in October and November, here we are months later, still selling travel, still being paid on travel, and still finding new people who want to become a part of this company. Unofficial word currently is that YTB’s first month in Canada brought in some 9000 new RTA’s into the fold.

While IATA and Royal Caribbean have certainly been uncomfortable for most people, it’s had very little effect on day to day operations and abilities YTB as a whole.

I find it amusing that everyone wants YTB RTA’s to answer these questions concerning IATA and Royal Caribbean. While all the attention is focused on YTB RTA’s, demanding why this and why that, all these demands are focused in the wrong area. Dr. Wayne Dyer has given the best analogy I’ve ever read in his book "The Power of Intention".

Dr. Dyer tells a story of how someone has lost their keys inside the house. As they are looking for their keys, the electricity goes out and it’s dark inside, making it useless to search for anything let alone keys. As they ponder what to do, they see a street light outside and the idea pops in their head that they can see with the light on. So they go outside to look for their keys.

After a few minutes a neighbor friend comes over to ask what they are doing, and the person looking explains “I’ve lost my keys.” Being the good neighbor, the neighbor offers to help and now they are both looking for keys under the street light.

A few minutes go by and the neighbor says, “I don’t see them anywhere here. Were did you loose them?”

The man responds “I lost them inside the house, but I can’t see a thing in there so I figured I’d look here under the light.”

The keys were lost at IATA and Royal Caribbean folks, and while everyone is looking at the spotlight that’s focused on YTB, the answers are inside with the keys at IATA and Royal Caribbean. All IATA provided was something about violating accreditation standards forbidding the "improper lending, subcontracting or hiring to a third party of an IATA numeric code by agencies." What that probably means based on what I gather is that YTB RTA’s were trying to book direct with a vendor as “ABC Travel” and when asked the IATA number, they were giving YTB’s IATA. I by the way have always told vendors and suppliers that I’m an outside agent with YTB Travel Network, not I’m the owner of BandBVacations.com.

Yet, those that oppose our company and business model demand answers and when given the answers provided by the company, it’s not good enough. (Any wonder why it’s not good enough and they want more?) At this point, anything further is mute. I’m still able to book travel directly with vendors, I’m still booking travel on my booking engine and I’m still being paid on this travel. Furthermore, YTB’s been able to attract the largest vendor in China with an exclusive partnership here in the US, and YTB has expanded into Canada, Bermuda, Bahamas, Guam, American Soma, and Virgin Islands since this accreditation was lost in the dark secrecy of IATA.

Maybe it’s not nearly as important as some would like you to believe. (Who knew?)

Royal Caribbean on the other hand is in my view turning out to be a “Royal Mistake” on their part. While everyone thought this was the beginning of the end back in October when it first happened, no other major suppliers have followed suit nor have any more than four Agencies been terminated. What followed after Lisa Bauer sent out just 4 letters, Carnival hooked up with YTB less than a month later for our One Day Sale, Lisa Bauer then moved into Hotel Operations in early December, and Vicki Freed then moved into her position just a month later. Even Joystar, the only other Agency named publically in the “Royal Mistake” believes it was nothing more than a “misunderstanding” and hopes to enter back into the fold with Royal Caribbean.

Traditionalists in the industry will never look at any of this as back peddling, and why should they? They (the Traditionalist’s) believe YTB is only about selling web sites and not selling travel. It’s comical how Traditionalists know this as “fact”. I’ve been round and round trying to help them come to grips that the $226 Million sold in Travel Weekly’s Power List as “travel sales”, but they insist they know better than I do. Suppliers on the other hand seem to have a quite different perspective based on what data they have available to them. Vicki, being politically correct as always, finds their view “interesting”. She pointed out that was published that YTB booked $13 Million with Royal Caribbean during the first 9 months of 2007, about 18,000 7 week equivalent weeks for Carnival. Last I heard YTB has 40,000 7 week equivalents with Carnival alone so far for 2008.

Wonder what these Traditionalists who have stuck their head in the sand will do when YTB comes in this year with somewhere around $550 Million in “verified travel sales”? Based on the 2007 Travel Weekly report, that would put YTB in the Top 20, and when YTB reaches its goal of $1 Billion in Travel Sales for 2008 (with or without Royal Caribbean or IATA) puts YTB in the Top 12 Agencies.

It may take a little time, much like the profits that showed up this year. I just keep the main thing, the main thing, and that’s building my YTB business. Everything else will take care of itself.

Subscribe to Just Picture It Now for additional announcements and details!

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", Dr. Wayne Dyer, Lisa Bauer, Modern Agent, Royal Caribbean, Travel MLM, Travel Trade, Travel Weekly, Vicki Freed

Posted by TravelPro at 6:00 AM | Permalink | Comments

Sunday, February 03, 2008

Don't Pick Up...and Don't Die!

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’m going to focus 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?)

I felt it was important to put these two questions together simply to prove that “numbers” can used to mean just about anything you want. To John’s credit, at least he recognizes that there are Marketing Commissions that are paid out to the field, which most of the Anti-MLM crowd does not. Most everyone that I come across simply point to the $9.3 in travel commissions and totally ignores amounts of $55.3 Million that were paid to the field for building our organization.

First, I want to address this myth that 150,000 RTA’s produced $9.3 in Travel Commissions. I’ve been over and over how this works, time and time again pointing out that Travel Commissions are not reported to the SEC until YTB is paid and has money in hand. I booked a small group in August of 2007 to sail in August of 2008. Until final payment is made, some 60 days prior to sailing, YTB does not realize commission in hand. Therefore a booking made in Q3 of 2007 will not show up on the SEC filings until Q3 of 2008.

John’s a smart guy, and certainly knows this, but the question keeps popping up to see who’s going to simply spit out “You don’t understand.” The reality of John’s years of experience in the Travel Industry however means that he does understand, but simply wants to put the question out there for those who truly don’t understand, and won’t take the time to investigate themselves how Travel Commission have always been paid in the industry.

Done.

Now on to this $55.3 Million that we pay the field for building the business. To be honest what I’m somewhat surprised with, is how short sighted John, or for that matter just about everyone who brings up this variance is. I guess it’s to be expected in this day and age of instant gratification and this myth about Network Marketing being a “Get Rich Quick Scheme”. If you’re not making the big bucks within your first few months, you’ve been scammed and John, among others are perpetuating that myth.

Can you keep a secret?

What if I told you that the average person wasn’t going to “get rich quick” in this business? What if I told you that the SEC financial numbers actually prove that if you treat this like a traditional business model, and given just a slightly more long term approach, you and everyone else in your organization will be just fine. Don’t think so? Trust me Bueller, this is not a day you want to skip class because it could give you an opportunity of owning your own Ferrari rather than having to borrow your father's. (Or in John’s case a Cocaine White Bentley.)

So how much more time is slightly? That could vary yet for the purpose of this post and example we’re going to use a time frame of one year, simply because these are the numbers we have access to and what everyone but a few seem to miss when looking at the numbers.

First we need to look at the numbers everyone is talking about, and for this particular exercise we are looking at the 9 months ending September 30, 2007. As you can see, short term, 9 months, it looks pretty bleak. Clearly, not everyone who paying all this money is getting all of their initial investment back within the same period of time. Most who oppose Network Marketing want you to stop right there. They don’t want you looking at ALL the numbers because if you do, it looks quite promising.

Take a look at the column to the right, the one that shows 2006 numbers, and the percentage of growth YTB has had over the same period the year before. Notice the increases of 207%, 172%, 251% over the year prior for “income” and increases of 183% being paid out to the field, also known as “expenses” show an entirely different story.

Here’s another little secret I’m going to share with you…all you have to do is get your foot in the door and play the game to take advantage of these percentages. Those that got in the game and worked this like a business in 2006 where paid off the efforts of those that got into the game in 2007. Some took advantage of this, while others got in but didn’t play the game or didn’t want to put forth the time and effort to profit off of some $55.3 Million from YourTravelBiz and $9.3 Million from YTB Travel Network. In other words, $64 Million went to somebody in the company or a percentage of the 39,613 who joined in 2006 capitalized on the 105,756 who came on board with YTB in the first nine months of 2007.

Somebody put these people in their YTB business and there is nothing that says that it can’t be you.

What John and others are counting on is that you don’t look past the initial nine month plan, spiting out that “the numbers don’t lie”. And to a degree he’s right. If you make an average of 1 sale a month to start, that’s $50 per month. Six months later, you’ve only made $300 but invested $900. (Now expand that to investing $69 Million and only receiving $55 Million in return.) Mathematically John’s right, but the problem is he stops right there. (And so do people in YTB, but we’ll expand on that on later question and post.)

Just like the years of losses that YTB had for what seemed like ages, people got wrapped up in what appeared to be the bottom line, and didn’t see the big picture. Today, YTB is profitable and making money, and so can you if you can handle sticking with the game long enough to get past the initial investment period. Some do it very quickly, but the vast majority that have joined my organization have been slower in becoming comfortable and confident enough about YTB that you are really doing the average person a favor for signing them up in this business. (This blog is riddled with reasons why, take a look around.)

Today, YTB is profitable, and you can be profitable in this business too, if you give it the same dedication and time that other successful people before you have given it.

I’ve shared here before that I’m a Recovering Alcoholic. Back when I first sobered up in 1989 I use to go to a meeting were a guy had some 25 years of sobriety. Everyone would ask “Sam” how in the world he became what we referred to as an “Old Timer”. Sam would get all worked up over this question, and his voice would go up an octave or two and he would respond with “Don’t pick up…and don’t die!”

The same principle applies to Network Marketing folks. Don’t pick up this glass of Kool-aid that they are pouring for you. You have to be consistent, you have to work at it, be consistent, and you have to give it time before you really see any fruits of your labor to become one of the “Old Timers” in Network Marketing. If John or anyone else in YTB would keep going at the same pace as the first 6 months, you’ve made $1600 without any further investment. (Please refer to the 12 Page Compensation package to see how.)

Now before all of you Anti-MLM’ers start pouring all this “it won’t last”, “YTB will run out of recruits” or that “the pyramid will eventually collapse” Kool-aid over my head, somebody needs to give me just one example of a Network Marketing Company that’s collapsed because it’s run out of recruits. I hear this bunk all the time, but nobody seems to come to my aid when I ask this question. (Funny how that works.) In truth, Network Marketing (or any company for that matter) collapses because of poor management or bad business practices; it’s never collapsed because it’s run out of people to sell too.

It’s always been a source of amusement for me when people bring up a Government Agency such as the SEC who perpetuate this myth, and they should know…the origins of a pyramid scheme was actually traced back to the French Government in the early eighteenth century. I wonder if the Government can explain away the following examples.

122 years ago, (1886) David McConnel started the California Perfume Company, based out of New York. In 1906 he had 10,000 sales representatives selling 117 different products. The California Perfume Company changed its name to Avon Products in 1939. How many people do you know that sell Avon today? At what point do you think it’s going to collapse because Avon will run out of people? (I’ll even let you guess at when it’s going to run out of just Women!)

102 years ago (1906) Alfred C. Fuller was another former peddler who greatly influenced future sales organizations. Fuller started the Fuller Brush Company and hired 270 dealers throughout the U.S. to follow his business plan on commission only. By 1919, the Fuller Brush Company had made $1 million in sales; by 1960, $109 million. In 1992, the door-to-door sales method was replaced with an innovative new direct marketing plan called Fullshare, with a chance to generate unlimited incomes by sharing those products with others and developing their own marketing networks.

74 years ago (1934) Carl Rehnborg started the California Vitamin Corporation selling what today are known as vitamin supplements. In 1939 the company changed its name to Nutrilite Products Company, Inc. (Today owned by Amway/Quixtar)

52 years ago (1956) Dr. Forrest Shaklee developed a method of extracting minerals from vegetables and used MLM to distribute his products. 44 years ago (1963) Mary Kay Ash creates Mary Kay Cosmetics. By 1996, company sales were in excess of $2 billion dollars.

(A special thank going out to Tim Sales & First Class MLM for this information.)

None of these companies have run out of people, and yet they all seem to be competing for the same people that YTB is somehow going to run out of. While the new kid on the block, YTB already has more than 44 people making between $250,000 and $3,400,000 in income for 2007, and this week we move into Canada. Those that want to bring up this myth about YTB running out of people any time soon, I have two words…

“Save it.”

When and if the time ever comes that YTB is down to its last person on earth that hasn’t joined YTB, maybe you should be concerned because I’ve already got dibs on John Frenaye. Until that time comes however, YTB have some 303,000,000 recruits to go after first and that’s just here in the US.

I wonder if Sam would want to join YTB? I’ll have to look him up after all these years because I can just hear him now when someone asks the question about how to make it in YTB.

“Don’t pick up…and don’t die!”

Subscribe to Just Picture It Now for additional announcements and details!

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, Kool-Aid, Pyramid Scheme, Travel MLM, YTB, YTB Travel Network

Posted by TravelPro at 2:16 PM | Permalink | Comments

Tuesday, January 29, 2008

Letting It Go...

I started a huge task last week 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’m going to focus 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. (By the way...I just got an e-mail from Brian regarding a New Years Coupon to Save 20% on all his courses!)

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.)

While we are led to believe that there was “little” training at the annual convention, I pulled up the schedule to see if I or anyone else could spend a day or two just focused on travel. Here is a list of “Travel Related” topics from our National Convention.

Flight 150
Avoid Turbulence in Booking Cruises

Flight 675-1
Get Familiar with Your Booking Engine and Travel Portal - Know Your Product

Flight 927-1
How to Sell Escorted Tours: Emphasis on Australia/New Zealand

Flight 7889-1
What is Your Niche?

Flight 826-1
High Altitude Earnings through Group Travel

Flight 1179-2
Mastering your Booking Engine

Flight 978-1
International Consolidator Airfares–Passport to Profits

Flight 388-1
Easy $ailing: Charting Successful Group Cruises

Flight 815-1
Groups: They Do a Business Good!

Flight 8408
What’s New with Apple Vacations and our #1 Top Selling Destination Cancun

Any RTA who wanted “Travel Training” during YTBU, (YTB University) not only could have gotten it, but spent the entire time focused on nothing but “Travel Training”.

In addition, major announcements were made concerning our Travel Business during the General Sessions of the convention, including free Health and Life Insurance for those RTA’s who produce $25,000 in Travel Commissions, (just like our Directors who build teams), a travel sales contest for the Coach’s Birthday Bash, new RTA Credential qualifications and minimum booking requirements, a Two Fly Free Program for our clients, introduction of Fun & Travel Magazine with a focus on Travel, not recruiting, a new booking engine upgrade with a totally new look, and a very generous offer to all those Traditionalists out there to join YTB, one of the largest Travel companies in the country right now.

(Word has it that we’ve doubled our Travel Sales from $226 Million to $550 Million in just one year, but we’ll be rehashing that in June, don’t worry.)

Oh…and that “other training” nobody wants you to know about…
Last year YTB held two travel trade shows called Funshine. One was held in April in San Diego, and the other was held in October in Orlando. Funshine is a “Travel Show” where our suppliers conduct seminars, and it’s also an opportunity to gain first hand knowledge of vendor specific products.

Check out what an Industry Insider said about YTB’s Travel Training.

Freed said she attended YTB's conference in early October and saw more than 1,000 attendees in each educational forum. "The desire to learn about the travel business was evident even after I spoke to the general session (over 6,000 attendees) when the CLIA instructor followed me on stage and taught niche marketing," Freed wrote. "No one left the room, and in fact, the overflow ballroom with big screens set up was packed as well. These folks paid for the conference, and there were no free meals or give-aways."

Isn’t that the same Vicki Freed who just came on board with Royal Caribbean?

In addition, YTB holds two travel training calls each week, one is “Getting Started” on Monday nights, and the other is vendor specific call held on Thursday nights. In addition, YTB launched E-Campus, which was designed by Dr. Marc Mancini and built by TheAcademy.com. (Another course recently added YTB, check it out in your Travel Portal!) CRTA Training is held each weekend across the country with all the emphasis during the morning season focused on Travel.

Those who don’t recognize how much Travel Training YTB actually does doesn't mean it doesn't exist. Most of our Traditionalists are too wrapped up in all the recruiting we do, and that’s not too shabby either, growing by about 40,000 since the National Convention. Based on the massive numbers and growth YTB is experiencing, even with all the adversity they attempt to throw our way, YTB keeps getting bigger, better, and more powerful at every turn.

While “letting it go” is a good start, there is still plenty to let go of before some will realize what YTB is truly all about.

Subscribe to Just Picture It Now for additional announcements and details!

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", Funshine, National Convention, Travel Agent Training, Travel MLM, Vicki Freed

Posted by TravelPro at 5:52 AM | Permalink | Comments

Friday, January 25, 2008

Still Waiting? What the....

I started a huge task on Wednesday when I promised John Frenaye that I would get his questions answered. ALL his questions. Over the next couple of days, okay maybe weeks due to the length of this list, I’m going to focus 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. (By the way...I just got an e-mail from Brian regarding a New Years Coupon to Save 20% on all his courses!)

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.)

Most of us know by now that the numbers were taken directly from our suppliers who we asked to provide numbers for us. Tabulating numbers that were directly booked off our web sites is easy to track and report. If that’s all YTB RTA’s did, it would be easily tracked and verified electronically. As our company matures and RTA’s get more and more comfortable with the concept of being a “Travel Agent”, many RTA’s are stepping out and speaking with and booking directly with vendors. (Our Group Cruise page is a perfect example of needing to arrange directly with the vendor first to secure price and availability for our clients for actual bookings.)

I’ve been dealing with accusations from those outside of our company for years about what YTB actually books. All anyone looks at is our SEC filings, which everyone “should know” as commissions, not gross sales, and these commissions are not reported to the SEC until YTB actually has the commission in hand. Doing otherwise, or what we “expected to receive” in commissions from booking made in 2006 is highly illegal and would put YTB in a bunch of hot water.

While Travel may have been booked in 2006, it is not reported to the SEC until the commission is received. Again, our Group Cruise page is a perfect example of what YTB has “booked”, but until these groups or clients have paid all deposits, commissions can not be reported to the SEC until YTB physically has the commission in hand. The Frye Thanksgiving Cruise for November 2008 is a perfect example of some 40,000 7 Day equivalent cruises YTB has booked with Carnival alone for 2008. (Did you catch that? 40,000 7 day Equivalent Weeks with Carnival and it’s only January.) While Carnival reports this group as a booking for 2007, it won’t show up on our SEC filings until Q4 2008.

When YTB’s number was given to Travel Weekly early in 2007, it certainly raised some attention on their end. So much so that on January 8, 2007 Kim Sorenson was interviewed by Travel Weekly after they found out how much business YTB “claimed” they did. Apparently the $250 to $300 Million that we “claimed” raised enough eyebrows that Travel Weekly wanted to investigate further. (Can we all agree you don’t just take a “Networkers” word for it?) So we know that Travel Weekly was aware of what YTB first reported at the beginning of 2007.

A full 6 months later, on June 25, 2007 Travel Weekly reports “verified” numbers of $226 Million for YTB, ranking them at #35 overall, and all hell breaks loose. I invite anyone wishing to find out more about how Travel Weekly came up with these numbers to read the bottom of page 25 of the report. You will note that Travel Weekly “sought to confirm accuracy whenever possible”, and also “reviewed responses for consistency and used whatever resources they had at their disposal to ensure accuracy”. You may also note that BCD Travel was not certified (#4 on the list) but the $12 Billion number was one they “generally give out”. (I don’t see any huff over that number anywhere.) You may also notice after further review there are several notations throughout the list concerning other companies that did not meat or exceed the required certification needs which was noted…but nothing mentioned about YTB?

Could that be because YTB satisfied all of Travel Weekly’s requirements concerning accuracy of $226 Million in Travel Sales?

October 22, 2007 Arnie Wiessmann described how over 8000 RTA’s flooded our Funshine Travel Training which had suppliers “gushing” about what YTB is doing concerning travel. (However, none would be willing to go “on record” for fear of the backlash they would get from Traditionalists in the market.)

November 2, 2007 Vicki Freed was quoted “It has been published that they [YTB] sold over $13 million of business with another cruise line and I can assure you that we also have millions of dollars in cruise revenue generated as well”

October 24, 2007 Kim Sorenson interviewed again by Travel Weekly as HE explains that the numbers were “gleaned” from many different sources, and they were “verified sales”. It should also be noted that Kim specifically addresses that these numbers come from travel and not “net revenue” from our marketing side. (Why should a Travel Publication even consider networking revenue?)

November 20, 2007 I went into great detail how these numbers were acquired, verified, and totaled.

November 20, 2007, (Same day) Kim Sorensen was named one of 33 “Most Influential” and warns that suppliers are now forced to decide if they want our business or not with a Top 50 Travel Agency.

December 7, 2007 Kim Sorensen was again interviewed, this time in Travel Trade, again quoting a $226 Million dollar figure in Travel Revenue and warns that 2007 numbers will reach approximately $550 Million in sales. (Putting YTB in the Top 20 overall.)

January 9, 2008 Carnival saves face AND its YTB business with a brilliant move by imposing new booking requirements for FAM’s. Clearly Carnival does not want to follow the Royal Caribbean lead made months earlier.

January 17, 2008 John is still waiting for an answer.

With all the sources and documentation out there concerning the $226 Million YTB sold, I if find it hard to believe that anyone is still waiting on this answer. If there is any question about the validity or accuracy, maybe those that want to contradict or discredit this number need to ask Travel Weekly and not YTB RTA’s?

Labels: "Card Mill", Power List, Travel Bookings, Travel MLM, Travel Trade, Travel Weekly

Posted by TravelPro at 6:44 AM | Permalink | Comments

Thursday, January 10, 2008

YTB offers FREE Cruise with Carnival...

I thought that might get your attention… ;-p

I’ve got a couple of questions.

I’m wondering if Carnival has a chance in the next couple days to get the word out about their new sales requirements for FAM’s to those of us in YTB? I’m also wondering what most of YTB will think of Carnival for making this move after our Top Producers enjoy a cruise with them for free. I couldn’t tell you if this has ever been done before, and I imagine that it probably has, but I’m wondering how often Carnival or any other cruise line reserves and entire ship for one company?

Wow…I have a lot of questions today, don’t I?

I spend a lot of time reading comments and posts on forums, message boards, and blogs and I find some of the positioning about what Carnival announced on Wednesday about their new requirements concerning FAM trips. For some reason, everyone who opposes the YTB business model thinks (in general terms) that Carnival is “putting the screws” to YTB for making this move, “turning up the heat” if you will.

Chaaa…right!

What Carnival is doing is trying to let the rest of the travel industry know they hear and understand the issues that Traditional Travel Agents have. For good reason too, Vicki Freed was hammered so bad on her Blog that she had to remove all comments from irate Travel Agents who condemned Carnival for supporting YTB and other Travel MLM’s. The problem is that Carnival knows exactly who and what YTB is. Not only has Carnival awarded their Pinnacle Award to YTB for the last three years in a row, but Carnival was also the company who came to YTB’s aid back in November to help prove to the rest of the industry that YTB sells travel.

Guys, they threw Travel Agents a bone, and they can chew on it all they want. Like I said in my last post, Carnival figured out a way to have their cake and eat it too. The issues are not either/or, and there is a way to have both.

I have to wonder when some will wake up and smell the coffee. They need to open their eyes and look at what just transpired. Can they not only see support Carnival gives YTB or the supporting documentation Travel Weekly and Modern Agent have provided with quotes about MLM’s producing impressive numbers for suppliers? Even long time opposition to YTB Travel Trade now understands the impact of YTB and our growing sales numbers.

Some also believe this is the beginning of the end of the impressive recruiting numbers that YTB has been producing, more than doubling our sales force from 60K to over 135K in 2007 alone. Little do they know, (or simply ignore) that YTB has been laying the ground work for what’s currently going on for months.

Back in August, at the National Convention, the Coach’s Birthday Bash was announced. While the contest does reward our top Power Team Builders, that’s only HALF of the ship. The other half of the ship this weekend are top Travel Sellers with our company. Winners of Travel sales were based on the number of bookings (double occupancy) for all cruises, tours, and vacation packages booked. Air, car, and hotel were ONLY included in the total if all three are booked together. No other combinations of air, car, and hotel applied.

Other Travel related programs introduced back in August included:

- In addition to our Directors who build teams, now any RTA who earns $25,000 in travel commissions in a 12-month period will qualify for fully paid health insurance with Blue Cross Blue Shield. Commission level must be maintained to continue to receive this benefit.

- Effective January 1, 2008, new requirements were placed in order to qualify for a YTB Referring Travel Agent credential card. RTAs joining as of January 1, 2008 must sell a minimum of $1,500 in travel before applying for the RTA credential card. ($2,500 for CLIA requirements)

- Fun & Travel Magazine was introduced as a twice annual publication all about TRAVEL! (And ONLY Travel) This magazine discusses travel trends, features preferred vendors, and reviews the hottest travel destinations.

- RTAs were also introduced a new opportunity to sell a one-year subscription in a Two Fly Free program for a $300 fee. This will allow for free airfare from select cities when purchased in conjunction with a 7-10 night hotel stay (international destinations are also available).

Many also don’t realize that YTB already had it’s own requirements in place for FAM’s. Any RTA who wanted a FAM trip with Carnival, or any other cruise line, needed to abide and follow the following company requirements.

“Book only two cruises (two cabins) at regular fare for your customers and you’ll be qualified to take another discounted cruise.

In order to book a discount cruise on Princess Cruise Lines you must have sold a minimum of FOUR (4) regular rate cabins on that cruise line. Holland America requires a minimum of FIVE (5) previous bookings of regular rate cabins to qualify.All Reduced Rate cruise requests must be made through the corporate office of YTB Travel Network.

Please submit your request to reducedrates@ytb.com for verification. Any reduced rate requests made directly to the vendor risk cancellation (penalties may apply).”

All announced to YTB Reps and RTA’s long before any of the current issues surrounding Travel MLM’s came to light from the other side. And we still grew like gangbusters in spite of these new requirements and policies that the other side thinks “turns up the heat”.

I have a good friend who’s outside of the industry, (cruisinman) who’s been a real advocate of Travel MLM’s for years. He understands the model very well, as he was with other Travel MLM’s in the mid to late 90’s. For as long as I’ve known Tom, he’s been predicting that suppliers would either turn off, or require exactly what Carnival just announced concerning the FAM issue. If you look at the thread I’ve linked to and comments concerning Tom, you can easily come to the conclusion that not only do Traditional Travel Agents not like him, but he also doesn’t care what they think.

I say “Bully Mr. Coleman for your insight." While Tom hasn’t been on mark, (Nor have I) all the time, he does have a much better overview and understanding of the entire industry. He had this Carnival move pegged years ago, and I’m willing to bet that not one Travel Agent that he irritates will recognize that.

But I will.

Knowledge and understanding is power. For those of us who have a firm grasp of what’s really going on in this industry right now like YTB, this Carnival move helps YTB separate itself from all those “Overpriced Travel Clubs” that Nadine Godwin mentioned in her predictions on Monday. I suppose we will always have individuals who take predictions like Nadine’s and twist them to mean something entirely different. Verbiage like “in some cases” automatically translates to “YTB”, the phrase “impressive sales” translates to “some sales”, and “players” translate to Travel MLM’s not Suppliers.

If Travel Agents need to view the issues surrounding Travel MLM’s from this perspective, it’s certainly within their right. In the meantime, YTB just keep chugging along, doing what we do, and while I recognize what’s being said, I have to question the validity of the translations by those opposed to our model.

Make no mistake about how 2008 is starting out for YTB. While there are plenty of issues remaining and more work to be done, some of the dust is starting to settle and we are only know beginning to see what is clearly a change for the better for everyone involved in this industry.

Subscribe to Just Picture It Now for additional announcements and details!

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