Wednesday, November 14, 2007

Excuse Me...But She's Only Inhaled....

The calls and e-mails have been coming in droves over the last several days. News of our Carnival Sale was originally stated to be announced yesterday. A minor glitch has come to our attention which to my understanding has no bearing on our ability to sell or get paid on travel. (Nor does it lack the ability to be corrected.) This in turn has detoured our efforts with Carnival in announcing these numbers.

For those of you who truly understand the forces out there who have been slinging mud lately, certainly you understand. The rumors and accusations that I've seen been thrown around the internet are amazing, especially in light of the fact that there has been no definitive announcement made by anyone concerning anything. People "think" they know what's going on and while some are calling for a concert from the Fat Lady, others who know what has happened realize, it's a little naive to make assumptions without having all the facts. That has little bearing however, when you have an opportunity to point fingers and create your own story to advance the cause.

I don't really know the proper word or phrase to describe the announcements made concerning YTB, both last Thursday, November 8th, and then again yesterday November 13th concerning YTB. Ironic, maybe. Coincidental, possibly. I think our good friend John Freyane and our Petitioning Agents may consider the news "exquisite timing" however.

Therefore, the company has decided to keep a very tight lip as speculation and rumors continue to mount while YTB prepares to answer all the questions circling around the industry. While some of us wait confidently, unfortunately, at this time, I must take a back seat and allow my company to issue statements concerning the future growth and dominance in this industry. As an Independent Representative of the company, it's not my place to speculate to anyone what our future plans are.

I will tell you this. Based on what I know, I personally feel not only very good about what will transpire, but confident that the company will answer in a way that is both accurate and meaningful in regards to just who YTB is, and how we will continue to play a major part in the Travel Industry for the coming months and years.

The first part of our answer has come this evening just after the market close, with news of our second profitable quarterly report in a row, with record revenues of $39.9 Million and our best profit to date of $2.1 Million. ($1.6 Million year to date.) All this, while we continue to grow and expand our infrastructure to support our valued Reps and RTA's.

More importantly, Travel Commissions are starting to support the $226 in sales from 2006 on our SEC filings. I'm sure we will have those who botch these numbers throwing out figures from this filing that support their cause, while ignoring the growth of Travel Sales by those that that have been with this company for more than 9 months. I've seen these numbers and filings ransacked many many times over the years.

We may have to provide a special course on what these numbers actually mean for some of our guests here to enlighten them, but that's another post at another time.

More news to come, I'm sure, and I believe based on the release of our quarterly numbers, it will be sooner than later.

Till then.


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Doug & Ronda Bauknight
AKA: TravelPro
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Friday, November 02, 2007

Sleeping With The Enemy...

Over the last few days, I've had some very productive dialog with John Frenaye (at least for me) and I have a much better understanding of the complaints and concerns our group of Retail Travel Agents are having. I have to hand it to John, he's at least looking closer at our model. Part of problem I see with skeptics and cynics is that there are a lot of pre-conceived notions about what Network Marketing is. While John has certainly not changed his position towards Network Marketing, he has verified that maybe terminating vendor relationships may not be the best alternative.

We shall see.

You like me may have noticed that no other supplier has come up to bat for these Retail Agents. From all the talk and news a few weeks ago you would have thought the sky was falling with what was circling around the internet. It's been three weeks now and next Saturday will be a month since "The Letter" was sent out to just 3 Agencies terminating their vendor agreement without cause or reason. What's even more intriguing to me at this point in time is that we only know the location of two of the three letters. The third to this date is still shrouded in secrecy. Seems to be a very smart move on the part of our third recipient at this point.

About the only news of interest to anyone this week concerning any news about Royal Caribbean's decision is a Travel Weekly article naming PATH and Peter Stilphen as partners in this attempt to separate themselves from Travel MLM's. For those of use who have been following this story with me, that's old news however.

While we keep on waiting for the other shoe to drop, we just keep waiting. Why?

A while ago I found an excellent article from Arnie Weissmann who not only understands our business model, but brought up a number of key points. I've been meaning to compliment Arnie for his work, and actually did personally, but have not really given his piece the credit it deserves here.

The timing of the Royal Caribbean termination announcement was directly after YTB's Funshine Trade Show in Orlando, Florida. I've personally attended these Trade Shows and find them to be an excellent source to not only meet our suppliers personally, but become better educated in who they are, what they offer, and how to promote their particular product or service. Like me, Arnie picked up on how hungry everyone is for knowledge of our industry and how receptive our suppliers are in working with us. The fact of the matter is, YTB and other models like us do a considerable amount of business with them. A little here, and a little there certainly adds up.

Just this morning I found this gem from Vicki Freed, and in this published article "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."

It is "rumored" that this CLIA training in Orlando with YTB was the largest single group ever to be trained at one time by this Association.

And while CLIA (Cruise Lines International Association) was quoted in Modern Agent this morning, that its Oct. 17 World's Largest Cruise Night (WLCN) is expected to generate 17,852 bookings, which translate into an estimated $22.3 million in sales and more than $3 million in travel agency commissions it makes one wonder what a single company like YTB could do in one day.

The entire industry generated 17,852 bookings in one day.

Why only 17,852 for the entire industry? Because these Retail Agents are too busy slamming Vicki on her Blog instead of focusing on making money. I called out our own agents here in my last post for being unprofessional. I feel it's only fair after reading the threats and the down right harassment towards Vicki that someone needs to tell these Retailers.

"KNOCK IT OFF!"

As an entrepreneur, I've always been one who looks at solutions, not problems. Vicki clearly gave these agents an opportunity to make money with her, but chose instead to focus on the Travel MLM problem.

Good Grief.

While the tide certainly hasn't turned by any stretch at this point, it certainly looks like it's lost any momentum it had a few weeks ago.


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Doug & Ronda Bauknight
AKA: TravelPro
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Tuesday, October 30, 2007

The Other Side of The Coin...

I'm a man of my word and while I never thought that John Frenaye would accept my challenge...he did.

My purpose of this Blog is to speak the truth and sometimes in getting the truth out, we need to hear the other side of the story. And since this story has captivated so many people here, I feel it's not only fair, but my responsibility to let the other side speak.

While I am not going to "publish" Johns comments in the comments section, I am going to copy and paste word for word what he expressed (unedited) to let him get his side of the story out. I hope that John will find my response to his comments both helpful and without offense to him.

Not sure if you will post this or not, but I figured I could respond to you. First, when I comment on your blog, I will identify myself. I don;t do the anonymous thing like many do. Thanks for all the credit as to what I said on a prior comment, but most of it was not me. THe line about the Koolaid--nope.

I'm sorry John, but your first comment on my Blog was "anonymous". Being that both comments were posted one after the other in time frame and similar in content. I conveniently included you into some sort of "stereotype". Being accused of things you never do is something we in the Network Marketing Industry have gotten accustomed to. It was wrong for me to fall into that same trap.

A. The suppliers have allowed the discounts and FAMS. It is NOT your fault for taking advantage. I blame the suppliers and we are encouraging suppliers to take a similar stand as RCI or to re-evaluate how they dole out the benefits. If you make the cut--fine!

I have no problem with any supplier cutting FAM's to those who do not give back to the industry the way our Professional obviously have. It is a privilege, not a right. It is courtesy, not an expectation. It is a tool, not a perk. If Royal Caribbean simply took away "FAM" privileges to YTB or other Card Mills, while we certainly wouldn't like it, it could have benefited RCCL in both sales and respectability. What RCCL did in Terminating MLM's to even do business with YTB and Joystar did nothing more than cut their own throat.

I realize this is of little consequence to you, but Royal Caribbean will never do business with YTB again.

Never.

B. When I talk about top tier commissions. I am not talking about your fluctuating numbers. I am talking about commissions. As a "travelpro", you ought to know that the very companies you cite (Amex, CWT, etc) negotiate commissions on behalf of their agencies. These commissions are tiered any typically begin around 12% and rise to 17% or 18%. It is up to the INDIVIDUAL agent (or agency) to support a supplier to earn a top tier commission. IE: I sell a lot of Carnival and earn 16%. I sell one HAL and I earn 12%. With your program, I earn top tier from day one. This is not fair, costly to the supplier, and deceitful when you get an RTA that has sold nothing, yet "buys" a cruise only to have the commission rebated to him.

YTB does the same thing as anyone else in the industry. We are given quotas and we've exceeded those quotas with every single cruise line we carry. I'm sorry you don't like or you don't think it's "fair" that we benefit from the shear numbers we have, but as an "Agency" we certainly earn top commissions. I have seen those commissions rise in some cases over the years as we get bigger and "sell" more cruises.

I know you've been told that all we do is "buy" our own cruises to get the "rebate". If you look at our Groups Booking page, you will find that clearly as an "Agency", we do far more than that.

C. I talked about the lack of any customer service. Most of the RTA websites do NOT have any contact information. No phone, address, or even an email address. It is the cookie cutter site out of the $500 box. When a consumer clicks on HELP, there is a list of supplier toll free numbers. If a client calls and is asked for an IATA number, they likely will not know and the client is left stranded. But on the bottom it does say to contact the RTA. But again, with no means to do so, it is a non-offer.

My friends, family, former co-workers already have my number. My business cards and promotional flyers also have my phone number along with my web address. I've also found a way to embed my phone number into my booking engine right above the URL in Internet Explorer. Most of them call me in the first place and while I do book directly with suppliers, most often, I book directly off my own web site just like they can.

I was unaware that the 800 numbers on the booking engine are "Agent Only Numbers". I honestly have not checked to verify. One of the beautiful things about our new web site is that I can write a support ticket and have the home office change this more to your liking. (And I do find that your non-offer valid.) We have made many changes to our booking engine since it's new upgrade at the National Convention. It will continue to be a "work in progress" and is now one of the best "cookie cutter sites for $500" I've ever seen.

Let's see if I can make this happen. Deal?

D. You are soliciting clients and new members and it is a bit deceitful. I have heard (not confirmed, so please treat it as rumor and hearsay at this point) that the DSA is investigating your business practices and the adherence to their Code of Ethics.

John, please read the Press Release from the DSA.

"Each of these companies completed the one-year pending period required for full membership in the association. During this time, the marketing and business plans of applicant companies are reviewed to ensure compliance with all provisions of DSA’s Code of Ethics."

Our application was approved on 9/18/07. Trust me...what you've heard is nothing more than "rumor and hearsay".

E. Soliciting existing agents to your downlines. We dust don't want to be a part of it. We did not get into this industry on a $500 Visa charge.

While YOU certainly don't want any part of it, please don't lump everyone in the Retail Travel Industry into this. You don't know everyone in the industry, specifically the former B&M Agents on my team. While Ruth Z is not part of my team I invite you to read her comments on my Blog.

F. Your pitch to people for booking and for people to join the ranks is why let aunt Mary book someplace else when she can book with me--her favorite nephew. Well, if she does, she is NOT booking with you. You are just giving her access to Expedia (or is it Travelocity). Aunt Mary thinks that you will be handling her travels and that could not be further from the truth. When Aunt Mary runs into a problem and seeks out some help...she is SOL. See point C above.

Aunt Mary has my number and she knows that her favorite nephew will take very good care of her. While Aunt Mary does book here flights and some hotels with World Choice, she does book her River Boat Cruises with me, who I in tern contact Majestic America, or Uniworld directly to book for her. (Neither company is available from our web site.)

G. Have you ever watched any of your videos? Looked at one of your sites? How can you say there is not an emphasis on free and discounted travel? While I realize that for "YTB Sanctioned" material, there is some numeric code, how do you explain the thousands of YouTube Videos out there by YTB RTAs screaming about the discounts and free travel. Did they just make it up? Or perhaps it was told to them. It is there. Look at the sites?

Those of you in YTB or any other MLM I want you to read that quote again.

I'm sorry gang, but I have to agree with John 1000% on this issue. I can defend a lot of issues, but this right here has absolutely no defense. (Not even for me.) I not only agree with this statement but so does the home office and that's why we came out with Approval Codes. I know exactly what he's talking about and I am just as embarrassed as he is about some of
these videos. (I kid you not, I honestly am!) I see videos, message board postings, e-mails, and absolutely hideous web sites that are not only unprofessional but down right wrong.

We have 127,000 "Independent" RTA's out there, it's impossible to control everyone, and people do some really stupid, unprofessional things don't they? I know the e-mail referred to in my last post was only "originated" by John, but sent by someone else. I can assure you he can appreciate how frustrating and embarrassing it is to see this "garbage".

Can we please make a concerted effort that as we mature and grow we will have better control over this. When I see something like this, I either report it and let the company deal with it or there are times when I have personally called out individuals on message boards and forums to tell them to "knock it off".

Our President Kim Sorensen has even stated in his Travel Weekly Interview..."Guilty as charged". Please accept our apologies and understand that we are trying to correct this very blatant eye sore.

I also want to rehash the sales numbers a bit. Per YTB in the TW article, the $226M was derived from several sources and sort of put together for the issue. It was NOT verified by TW as they took you at your word. And to your credit, YTB did state in that reporting to TW that $176M of the sales numbers was from the sale of third party websites. THIS number is born out in the SEC filings for 2006.

I'm sorry, but both Travel Weekly and YTB have documented several times that the numbers were verified.

I agree, that the income is not realized until the commission is received (and travel typically complete), but this is most certainly accounted for in the SEC filings. Under the Income there is travel commission income. Under expenses, there is travel commission expenses. The expenses are very close to 60% of the income which is consistent with the compensation plan of YTB. YTB tried to say that the income side was THEIR share of the commissions, but then why would you pay an additional 60% out of your net income? Makes no sense.

While I know what you are saying, and I know what your missing. I'm at a loss right now in exactly how to explain this without being very long, very drawn out, and potentially misleading you even more. It may be beneficial for you to contact our CFO, John D. Clagg about this issue.

And finally, I want to be clear that this is not a YTB issue like you and so many of the other RTAs feel it is. This is about the concept of MLM and travel and how it does not work. The petition had ZERO to do with any decision by RCI. Do you really think that they made that decision in the two days between the time I put it up and gained 100 signatures and the deliverance of the letter? I am flattered that you feel it yielded that much power. But, it did not. Certainly I applauded the move and I chalked it up to an incredible sense of timing.

I would respectfully disagree that Travel MLM does not work. It's one of the finest business models I have ever seen and affords me some of the best leverage, training, freedom, and experiences of my entire life.

I do agree that YTB is not the issue, I understand that YTB needs to be mentioned only because we are the biggest dogs on the block. Get YTB the rest will follow. I have also corrected the issue here before that your petition had nothing to do with the RCCL issue. Your petition is merely a symptom, not the cause.

I've been with this company since January 16th, 2005 John. I've seen this company grow from 8000 to 127,000 RTA's . I've seen three booking engine upgrades, two marketing web site upgrades, three home office upgrades, dozens of CRTA certification classes, National Conventions, Travel Seminars both on Land and by Sea, vendors and suppliers come and go, team members come and go, my income both on the Travel and Marketing side increase each and every month, new training programs, memberships to organizations which add credibility, rankings in Travel Publications, medical benefits for our RTA's, and have personal spent time with Founders who I will stack up against anyone in the Business arena MLM or otherwise.

You do not find anyone finer in the Industry than Coach, Scott and Kim.

I love the Travel Industry just as much as you do and I have no less respect for it than you do.

While I am a professional, you mess with my company, you mess with me, and as you have seen, I can and do bite back, and I'm far from over. So are the rest of the 127,000 RTA's with YTB. Coach has called a play and we now have a game plan in place to prove once and for all, our model DOES work and so do our PEOPLE.

Thank you for coming at least this far into our world and at least showing an effort in gaining a better understanding of who YTB is and what YTB does. Because I feel you have been not only sincere but fair, you have been given your opportunity to share "The Other Side of the Coin".


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Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker

Phone: 678.458.5812


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Monday, October 29, 2007

Travel Professionals "Trying" to Unite.

I had mentioned in my last post that at the time of that post, I was unaware that any other suppliers or vendors have joined RCCL terminating "card mills". If you have been following this story with me, you should know by this time how I've have an uncanny way of digging up documentation and information via the internet. (It's a gift.) While I have heard of several companies from various message boards and forums throughout the course of "water cooler gossip" I have yet to see anything verified by a source I'm willing to trust at this point.

Over the weekend I found another link in which I'd like to share, and while I certainly consider this to also be nothing more than "water cooler gossip" especially concerning the source, I'd like to have some fun shooting all the fish in this barrel. While some may take this as nothing more than another personal attack, or ask why I'm giving so much energy to something I first decided to ignore, I believe those of us who are under attack by this individual should be aware of not only what we are being accused of, but the positioning and tactics being used in regards to YTB specifically.

As both Kim and Coach were able to express thanks to Travel Weekly last week, there are a lot of misconceptions about Network Marketing. Here is a listing of just a few of the common misconceptions regarding our industry as it's related to what they "think" we are doing.

A. Suppliers allowing them discounts, free travel, FAMS, and other perks merely for referring themselves and their family to a website.

While the problem is originated at the supplier level for "allowing" discounting, it's suddenly becomes a problem with MLM and not the supplier. See how that works? All the problems are directed at MLM because the supplier can't differentiate what is a legitimate IATAN or CLIA credential, and one of our "ID Cards".

These petitioning Agents certainly can't blame the supplier, they are the life blood these Agents. So they put a gun to the suppliers head, tell the supplier "us or them" and when supplier caves to forfeit a combined $23 Million in sales, suppliers are sung praises for finally being able to say "no". The supplier was unable to regulate just who is "giving back" and who is "taking advantage" of the discounting, therefore, MLM is taken out of the loop completely because these Agents believe MLM is the real problem.

B. Suppliers paying top commissions from day one, when we have to work years for a few points.

It's my understanding that only "YTB consistently changes it's "sales" numbers to appease different audiences", not the other way around. If you recall when this story first broke, here is what we were told via comments on this very Blog.

"Why would I want to be YTB to earn 60% commission of 13%, when I now earn 80% of 16% and higher? Stupid. Ya'll keep drinking your koolaid."

I'd like to note that fingers are now being pointed at me for posting our commission percentages on this very Blog. They are upset with me for showing these top commissions, as these percentages apparently are a closely guarded secret in the Travel Industry. If this is the case, I don't know how anyone would actually know WHAT commissions YTB actually makes.

While it may look like a "Catch 22", I didn't open this can of worms, and I don't mind at all commenting or documenting how slimy the worms are.

Why does YTB get "top commissions"? If you joined American Express, Carlson Wagonlit, or any other Agency in the Top 50, they are also paid top commissions. Agencies earned these commission levels based on Sales Volume. Sell "X" amount of cabins, earn "Y" amount of commissions. Increase the amount of cabins sold, Agencies qualify for a higher amount. Carnival has awarded YTB their Pinnacle Award as one of the Top Agencies the last three years in a row, 2005, 2006, and 2007.

Because YTB is MLM, we don't deserve top commissions along with the Award for Top Sales? YTB obviously qualified with every Travel Supplier we have on our list. Kudos to the RTA's of YTB for making this happen!

C. The MLM companies idea of help to the consumer is to refer them to the Travel Agent Only toll free number of the supplier.

I have no idea if Agent Only numbers are given out or not. Doing so isn't at all productive. If, by some slim chance they are, the "customer" who calls will be asked for either an Agency Phone Number or Agency IATA number, (depending on the supplier) and since this is the first question asked by an inside service representatives, no further information is given without first supplying either of these two identifiers.

I realize there are over 60,000 new RTA's who have joined YTB in the last 9 months. If you have a question, we have our own phone number or support ticket system along with a newly renovated 120,000 square foot Home Office with hundreds of support staff to assist you. The founders and Corporate Heads of YTB have set in place one of the best training systems and support programs available to anyone wishing to get involved in the Travel Industry. Additional thanks going out to Dr. Marc Mancini and TheAcademy.com for their support and assistance in this leading edge training technology to help those who have recently joined our ranks.

D. The solicitation of our clients with slick unethical and misleading marketing materials.

We must have missed the Memo from the DSA announcing YTB as members of their prestigious organization. YTB is clearly attempting to raise the bar joining the DSA in abiding by their Code Of Ethics.

How sad to see that our counterparts in the Retail Industry are not joining us in our efforts.

"In the wake of RCI's decision to yank the privileges of "card mill" outfits, I got spammed with an email from a group that purports to be lobbying more big travel sellers to follow suit (see email below). Did anyone else get this? I don't understand what is motivating this campaign--if I'm a legit TA, why do I need to waste my precious time joining a grassroots organization to cheerlead the big travel sellers for making a decision I like? I am also trying to figure out where they harvested my address from...."

I couldn't have said it better myself. Thank You.

E. The solicitation of travel agents themselves to join their "downline".

Finally something worth talking about! Absolutely!

We understand the plight of the Retail Travel Agent, and while they are spending time servicing important high ticket, high touch clients, these same clients can now be referred to their very own "booking engine" for air, hotel, cars, event tickets, even flowers without lifting a finger. These clients have been booking these services themselves for years now. If Retailers choose to simply let Travelocity, Orbitz, Expedia have it, that's fine too. For a minimal cost, and loyal clients, it makes sense for those Retailers who want to retain all of their clients travel with minimal effort.

By the way...many of these Agents "get that". There are obviously a few old school who want to continue to struggle and end up selling T-Shirt's and creating their own Blogs, while at the same time left wonder why annual cruises booked by agents has dropped to about 90% and continues to decline.

F. Consumers believing that they are booking with a "friend" and ultimately it is being handled by an untrained person in a res center.

- Expedia booked $17.2 Billion in their Res Center.

- Travelocity booked $10.1 Billion in their Res Center.

- Orbitz another $10 Billion in their Res Center.

- Priceline finishes out the Top 10 Res Center Agencies with $3.3 Billion.

Over $40 Billion was spent last year in a Res Centers and that ONLY includes Expedia, Travelocity, Orbitz, and Priceline who are all Top 10 Agencies. Our friends have not only trained themselves, it appears that their training over the last few years was extremely effective.

MLM is apparently under a completely different set of rules and guidelines here when it comes to using Res Centers.

G. The promotion of their business with the focus on "free travel" and "traveling like an insider".

Take a look around here, take a look at the YTB Marketing site, take a look at our Booking Engine...do you honestly believe obtaining "free travel" is YTB's focus? Yes, I want to show you how to "travel as an insider", to help you sell travel. This is what I was taught to do from the very beginning, take a FAM and then comment on my experience. This Trip Report is still being accessed to this day, and I still get sales off this article two years later. I see nothing wrong with organizing a large group and obtaining a conductors rate for yourself. I see nothing wrong with getting rebates in the form of commissions for your own travel. If they can do it...so can I.

Oh...that's right...YTB is MLM.

Sorry....

While these Petitioning Agents are relying on "luck" and signatures, YTB has verified numbers of $226 Million is sales in 2006, and a conservative number looks like that number is going to double to $550 Million for 2007.

In closing, I'd also like to note that while I've enjoyed exposing these Anti-MLM Zealots, a considerable number of fingers are also being pointed back at me.

Here is what I'm actually very proud of.

With years of posting about YTB, they have only been able to come up with one legitimate complaint about what I've done when it relates to all the myths, rumors and lies they are spewing about YTB.

Last year I submitted a Press Release on going full time with YTB. In the copy, I stated that YTB estimated $500 Million in sales for 2005, and expected to exceed $2.5 Billion in sales for 2006. While it looks like I either grossly exaggerated my sales numbers, (or simply missed these figures by a year of two) I am both humble enough, professional enough, and man enough to admit and correct any misrepresentation I have made about a company and industry I love, admire, and respect.

Actual verified sales number for 2006 was merely $226 Million in sales, and estimates for our current year have only doubled to $550 Million.

I appologize.

How long will we have to wait to see the same class, dignity or professionalism from our opposition?

Time will only tell.

Let's just hope they correct this before others like Ms. Diana, Publications like Travel Weekly and suppliers like Carnival begin to figure out what's really going on.


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Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker

Phone: 678.458.5812


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Friday, October 26, 2007

The "Royal" Flush...

While nothing has been officially announced by YTB at this point, it is my understanding that our relationship with Royal Caribbean International has been flushed.

Buh-Bye.

Currently, it simply doesn't matter what Royal Caribbean does, and based on what we know they have and have not done, YTB feels it's best to simply remove ourselves from a company who selectively chooses to single out a few Agencies, while making exceptions for other companies who also offer a Home Based Business opportunity. While the Retail Travel Professionals are gleaming with the apparent support over Royal Caribbean's decision, it's quite evident both from documentation found, and from what I've been reading on from other members of card mills that this "card mill" issue is neither sweeping or consistent.

While all the doom and gloom over what Royal Caribbean has chosen to do is still swirling, we must not loose site that the truth about our business model and our company has also begun to surface. Earlier this week, Travel Weekly gave YTB a chance to defend our model, and it's quite clear based on what's been happening, "there are many misconceptions about who we are and what we do".

If you recall, I lambasted the organizer of the petition being signed by various Retail Travel Professionals for his lack of basic knowledge and understanding about our business model. This supposed "authority" in the travel industry stated on this very Blog "If you read the TW report, it says that $176M of that was from website sales and from monthly website maintenance fees. These are NOT travel sales. These are website sales."

While I can't be certain, I find it hard to believe that anything being said about my Blog or our company behind closed doors gives any acknowledgement that several sources, including Travel Weekly, confirming that the $176 Million is both "verified" and also "Travel Sales", not Network Marketing or Recruiting sales. Unfortunately, such clarification about facts has little bearing for those who are so adamantly opposed to seeing yet another threat in even more business being taken away from a struggling and dieing market segment.

It's been documented here before that over $40 Billion in travel services are now being done on-line with just 4 of the Top 10 Agencies currently taking away business from these Retail Travel Agents. The days of "Personal Service", "Travel Agent Expertise" and "Credibility" is clearly a dying market with over 75% of these Agencies closing their doors. And while some have chosen to attack with misleading the public, comparing our business models to other models that haven't even launched, (E-Trips Network) the more attention YTB gets, the more individuals will begin to question the validity of the arrogant and uninformed who are touting such propaganda.

Much has been joked about all the news and what YTB's Travel Numbers currently are, and critics point fingers at one YTB spokesman stating sales of $1 Billion for 2007 while another states only $550 Million, they fail to realize that even at $550 Million, that still puts YTB Travel Network in the Top 20 in next years Power List. Ask any College Football fan, and they'll tell you, you're nobody until you make the Top 25 Poll. They clearly point to net losses of millions of dollars without an credence to $169 Million in Market Capitalization, nor do they realize how rapidly YTB is expanding and growing it's infrastructure to support a growing RTA field by nearly 400 to 500 new RTA's per day.

YTB simply "offers" fully paid medical benefits for those of us who produce $25,000 per year in Travel Commissions. Surely no one is even earning IATAN credentials with YTB and RTA's like Vivian Clark, Daphene Jackson, Ronnie Williams, and Carl Dennis are just "lucky". While Royal Caribbean claims they have strict rules against discounting to "card mills" they certainly don't have a problem with "conductors rates" for those of us who organize and book groups of 30 cabins or more.

Those making claims against our model think training is kept to a minimum across the country to help the thousands of new RTA's who have recently joined our ranks, and we certainly wouldn't want them to know anything about our continuing education which was designed and written by Dr. Marc Mancini and TheAcademy.com. What these "Professionals" don't understand is that I've been able to find ample support and greater encouragement from YTB than any other system I've ever looked at previously. When I first looked at getting into this industry years ago, I was stuck without the required experience, and now that I have it, it's not good enough because it's "Network Marketing".

Nice.

Sorry guys...you had you're chance many years ago. Now that I've created my own business with my own clients and my own team of Agents, thanks to the support of YTB, I'm here for the long haul. The leadership of this company both at the home office, and in the field won't be going anywhere. It takes a special tolerance to deal with all the myths and misconceptions surrounding the Network Marketing industry and you have seriously underestimated the resolve of the entrepreneurial spirit.

YTB is already 127,000 strong, and we all have Fathers, Mothers, Brothers, Sisters, Sons, and Daughters who will continue to do business with us over anyone else. The more knowledgeable and mature we become, the more business we will dictate goes where and with whom.

Currently the only supplier who has chosen to be on the outside looking in is Royal Caribbean. While rumors continue to swirl at the time of this writing, no other supplier has made the choice to do the same some two weeks later. That's not to say it won't happen, but the longer this takes, the lower the probability that any other supplier will be foolish enough to alienate themselves from an obvious growing market shift.


As my good friend Charlie Howe stated "The Fat lady hasn't even inhaled at this point!" and our Retailer's are cheering about major, sweeping changes. Trust me...they've done little to change our growth or resolve. If anything, they've strengthened our desire to be the largest Travel Agency in the world.

Those associated with YTB, please check your back office for some BIG plans with the #1 Cruise Line in the world. While I'm not going to tip our Retail Agents just what has been laid before us, they will find out soon enough what 127,000 untrained, unprofessional, and unqualified RTA's in YTB can do. It's my hope and my mission to help our opposition understand what "Shock and Awe" is meant to look like.


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Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker

Phone: 678.458.5812


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Tuesday, October 16, 2007

YTB Cynic Comments on My Blog...

The comments made in this post and this Blog are my own, and should not be viewed as those of YTB International, Inc. I would also like to state, for the record that I have met many Travel Retail Professionals in my years with YTB, and these statements in no way reflect EVERYONE in the Travel Retail Profession, which I not only admire, but respect. However, just like any large group, there are a select few that have chosen to follow the path of one particular individual. It is nothing new, and I/we deal with ignorance all the time in the Network Marketing industry.

Update: The organizer of the petition against Travel MLM's has found me, and decided to post a couple of comments on my Blog. Due to the activity this Blog has been getting since Thursday, I'm not all that surprised he found me, but I am actually impressed that he took the time to not only read, but comment.

I hadn't decided if I was even going to recognize John Frenaye at all, since I don't find his "opinions" about travel MLM's worth responding too. (Coach, Scott and Kim certainly wouldn't.) Anyone who "Double Dog Dares" us needs to go back grade school instead of trying to waste our time and energy. While his syndication on MSNBC as a columnist gives the appearance of someone of either knowledge or of authority, his perceptions of who we are and what we do are skewed and inaccurate. Like most Anti-MLM Zealots who protest too much, John work's by categorizing, separating, hiding, judging and condemning, attacking and rejecting. When zealots are in trouble like they are with YTB and other MLM's, they try to distract everyone and blow the whole situation out of proportion. By making a lot of noise, they think everyone will miss what is really going on.

Mr. Frenaye doesn't realize that I cut my teeth some time ago with both angry and misinformed individuals, and while I find that responding to such views and opinions need to be left on forums and message boards dedicated to such subjects, I also believe he has given me the perfect opportunity and platform in dispelling some of the myths, rumors, and misconceptions these "Professionals" have about those of us in YTB and the Network Marketing industry.

Sit back and enjoy!

I'm human, and this circle of controversy has many layers and subplots associated with it. I've attempted to provide both insight and documentation to the best of my ability when writing about this. When wrong or inaccurate in reporting what I know to be true at the time, I'm both confident and professional enough to admit it, and correct it. (See Saturday's post.)

John has certainly set the record straight, for which I would like to thank him, as he comments "The petition was NOT ARTA's idea. It was mine and done by me."

So there you have it...here is the organizer, the self proclaimed leader. The Retail Professionals version of Coach J. Llyod Tomer. I apologize to John publicly for not giving him the credit he both deserves and apparently wants concerning what's going on.

John also states "The decision by RCI happened long before the petition--so they are mutually exclusive events that happened to have exquisite timing."

I don't know if we will ever know the real story, as I can't investigate at this time why Royal Caribbean would give the YTB home office Group Sales privileges one week and the next week pull the plug completely as it appears another decision was made before this whole ordeal blew up. It has been documented that YTB has $13 Million on the books with Royal Caribbean so far this year, and 67% of that are groups, so we may possibly have to let the dust settle a bit before we find out the real story behind Royal Caribbean. (Preferably from Royal Caribbean.)

That's about does it for the corrections and subtractions concerning John's comments and what I have posted here. I think it's only fair that since I was able to set things straight in John's behalf, I should be given an opportunity to correct and subtract other comments made on my Blog made by John. If someone is going to make comments here, I would ask that they be not only be accurate, but documented if possible.

"YTB consistently changes it's "sales" numbers to appease different audiences. I have to assume the numbers reported to the SEC are correct. And if so, they came nowhere close to selling $226M in "verifiable travel sales" in 2006. Looking at their commission revenue it is closer to $50M in sales."

Really? Does YTB change numbers to appease an audience, or does the audience not understand the numbers? There are very strict and rigorous guidelines that YTB must abide by when concerning SEC filings. (Much fun was poked at YTB last year when these guidelines were not met.) Likewise, the $226 Million in sales were verified by the CFO of Travel Weekly. So while it is stated that YTB changes numbers, we find the SEC and CFO of Travel Weekly are also changing numbers to appease an audience?

Doubtful.

As someone who has been in this industry for only 3 years (January of 2005) even I know gross sales were calculated and to my understanding verified by the CFO of Travel Weekly at the time off booking, (If they were not verified it would be noted) and earnings do not show up until after the travel has been consumed and then paid. Calculating and posting earnings to the SEC before hand to appease John and the rest of our Travel Professionals would have serious legal ramifications.

I'm sure our Travel Professionals understand how this works, with all the years of experience, training, and certification they have, but some of you may not, so let me elaborate by this example.

I booked an 11 day riverboat cruise for clients from Cologne to Nuremberg directly with UniWorld in November of 2006. While only a deposit was made at the time of booking, a gross sales number was generated and this cruise booking is part of the verified travel sales that went on the Travel Weekly report. While a commission percentage and number was known at that time, the actual commission numbers did not show up for YTB (or me) until the cruise was paid in full a month ago on September 3rd. (Typically made 60-90 days before sailing)

On December 1st, my clients with several other couples will be flying to Cologne to enjoy this holiday cruise and when they return, UniWorld will then issue a check to YTB in commission and I in turn receive my 60% cut from YTB. While it's possible that this commission will be paid in December of 2007, it's more likely UniWorld will pay YTB 30 days after, January of 2008.

While "verifiable travel sales" show up in 2006, the SEC filings will not see earnings until Q1 of 2008, so it's highly unlikely that John is correct and YTB, the SEC, and Travel Weekly are all wrong.

"However, if you are trying to sell the program, the $226M sounds a lot better. If you read the TW report, it says that $176M of that was from website sales and from monthly website maintenance fees. These are NOT travel sales. These are website sales."

Here is the Report, which mentions nothing about monthly website maintenance fees. Furthermore, I don't know why a Travel publication would post anything to include Network Marketing? It's a separate business model altogether, unrelated to anything a Travel Publication would even want to consider. The $176 Million ARE travel sales from Hosting Outside Agents, also known as RTA's. Website sales and maintenance fees can only be found on our SEC filings which according to our 2006 Annual Report (Form 10KSB) website sales and maintenance fees consisted of $36.8 Million for the same calendar year of the Travel Weekly report.

"Why would I want to be YTB to earn 60% commission of 13%, when I now earn 80% of 16% and higher? Stupid. Ya'll keep drinking your koolaid."

I was unaware that John D. Rockefeller was either involved in Network Marketing or drinking Kool-Aid when he stated "I would rather earn 1% off a 100 people's efforts than 100% of my own efforts." Coach, Scott, and Kim have given us 10% instead of just 1% from the people who book travel in our Power Team. I can certainly see why John would want to go it alone, and if 80% produced all by himself works, I'm not going to ridicule anyone who is happy with that.

If John was smart like some of the Retailer's who have actually joined our ranks, he'd sign up with YTB, offer his vast experience, expertise, training and support to help someone earn their IATAN with YTB. He'd help them earn $5000, and in return, he would also profit off what they did with $6340 in his own pocket in Travel Commissions and Bonuses for helping them. That's close to 80% and someone else did most of the work. Rockefeller was a very smart (and rich) dude and certainly would have seen value in this. Unfortunately, some individuals can not work past the myths, rumors, and common misconceptions surrounding what Network Marketing, or MLM really is, settling instead with what they have heard about from someone else.

I would also have to assume that John's never looked at the commission percentages YTB makes based on comments made that YTB only earn 13%, and not the 16% YTB's been earning on all the cruises I and other RTA's have booked with them. (I am assuming reference to RCI of course.)

The $176 Million ARE website sales, which is the premise of our whole argument concerning how much training is required in this day and age concerning booking travel. Just like Travelocity, Orbitz, Expedia, and Priceline who produced over $40 Billion in website sales, YTB produced $176 Million from our websites. These Petitioning Agents can have the business that requires "high service and high touch", all YTB and other MLM's are looking for are the growing numbers booked on the internet, which clearly does not require any specialized training or certification from the millions of American's who "click and order" day after day.

If Aunt Betty can book a flight, a car, a hotel, or cruise on the internet with my web site just as easily as she can with a Roaming Gnome, I fail to see why any Retail Professional would be concerned about any training, certification, or experience I have regarding the Travel Industry.

I am not only grateful but give many thanks to vendors, industry publications, Training Programs, and even other Retail Professionals in our industry, I have been fortunate enough to elevate myself beyond a simple "click and order" web site booking.

"Our petition has over 1000 signatures, and represents sales amounts that YTB could never dream of hitting!"

While this can't be documented at this time, it's my understanding that YTB has the same number of Travel Professionals who have joined our ranks. Furthermore, I would hope that John and others go watch this movie. We aren't dreaming of merely hitting, we are dreaming of crushing those numbers. I also see many direct correlations between what's going on in real life from this film in both content and movie critics alike.

I doubt John or any of the other Petitioning Agents will ever admit that I or anyone else in YTB would even have any worth or certification regarding this industry which I/we love and support. While my Travel Commissions certainly support this, unfortunately, these professionals don't know that sending them check's or IRS documentation to prove how much I make is a big "No No" in the MLM industry. It's considered "income claims" and none of the 127,000 RTA's with YTB would purposely put their spare time, part time, or like me full time opportunities in jeopardy.

Speaking of income claims, while John has attempted to promote these myths here, he has been found other various places on the internet, including the MSNBC article which is far too long to devote the time and energy to try to dispel everything there. He did "Double Dog Dare" us to send him our travel commission checks.

I have found a short post off his own web site that should serve as an example of his "marketing". John comments that "The Tomer favorite phrase is that "everyone has a minister and 6 pall bearers--sell to them". But realistically, you have a limited number of people to which to sell."

Anyone who actually knows the Tomer's would recognize THIS as their favorite phrase:

"If it aint true, don't say it.
If it aint right, don't do it" -- Coach

By the way, I'm wearing a T-shirt with this quote on it this morning as I finish this post up. I bought this shirt at the National Convention as a member of Coach's Corner, and was wondering if John would like to investigate working out a co-op with YTB to sell these same T-shirts on his web site? Or do we need to contact someone else for this gem?

Guys, this is the self proclaimed "Ring Leader" who is using the same marketing methods we use to build our business. Word of mouth and presentations to recruit others. I find it hysterical he is using the same tactics that he obviously so adamantly opposes and claims we do. A leader should be better informed and educated about a subject before they recruit others into any organization. Clearly, this man knows nothing about Network Marketing, and there's plenty more of this filth being spewed as he duplicates the hatred towards a system and individuals here clearly has no contact with.

Do you now have a better understanding of why there is such hatred and animosity towards Travel MLM's?

Step off your Shinning White Horse John and stick around here for a while. I've worked very hard to document what's REALLY going on with YTB, and if you would take the time to do just a little study instead of knowing all you "think" you need to know already, you just might find a new perspective.

It's a long shot I know, but someone has got to say it.

"Get a clue".

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
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Book Your Travel & Vacations With


Travel Reservations: 1.800.243.4450

RTA #24635

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