Just Picture It Now

Looks like I have to give credit where credit is due.

Sort of…

This morning I brought attention to a blatant accusation by one of the better known critics of YTB that they were paying off CLIA. Apparently “The Spin Master” has obtained the following confirmation from Jim Smith, CTIE via an e-mail correspondence from CLIA. I will quote from “The Spin Masters” blog and do believe this correspondence to be accurate.

“Contrary to what was posted on your blog and for the record – when it comes to CLIA certification, membership and all related programs – the rules are the rules for everyone. There are no exceptions.”

Interesting that Mr. Smith references the blog itself and not YTB or the Travel Compass. You would think that if he agreed with “The Spin Master” he would have made reference to YTB misleading or misinforming the general public as the “The Spin Master” appears to state.

Instead, we see another absolute refusal to take any responsibility in what was posted or insinuated. No, that appears to bounce off him and land squarely in MY lap.

I have to wonder if Mr. Smith himself was the one who corresponded with YTB directly when YTB posted a PDF of the new CLIA Requirements in both the 9/18 and 9/25 issues of the Travel Compass. A PDF of the new requirements can also be found in the Travel Portal under “Breaking News” as of the last several weeks for those that might have missed either of those issues.

And apparently, someone has. ;-P

Both the publication and secured access to the Travel Portal are intended for those of us who are members of YTB. Why this company correspondence is now blasted all over the internet with its own little twist in an effort to warn the general public or to promote and/or slander CLIA is rather arrogant. CLIA does have strict rules in promoting its membership, and I would have to agree, the rules are the rules for everyone.

There are no exceptions.

Its quite clear what was posted on “the blog” was an insinuation that YTB acted like “politicians sliding in a little pork for their constituents” and/or YTB “slipped and showed a little pork”.

But alas, as we so often see from these overly obsessed and arrogant mud slingers, the message sent by Mr. Smith and CLIA just doesn’t seem to register.

You can picture it now, a 5 year old with his hands over his ears yelling “Blah Blah Blah” just after he was caught red handed with both hands in the cookie jar.

Labels: CLIA, John Frenaye, MLM Myths, Travel Agent Issues

Posted by TravelPro at 11:56 AM | Permalink

Kim Sorensen’s “Meet the Press” type interview with Travel Weekly Editor in Chief Arnie Weissmann turned out to be very civil, even if it was loaded with some pretty pointed questions. The 20 minute segments consisted of three heads of home agent groups in back-to-back-to-back conversations which filled the hour. Participants could also ask questions as Scott Koepf, president of NACTA; Kim Sorensen, president of YTB; and Van Anderson, co-president of Americas Vacation Center talked about each of their prospective companies.

Arnie opened Kim’s segment stating that whenever he writes about YTB in any of his columns he is bombarded with e-mails and much of it is “highly emotionally charged”. I can’t argue with that point of view and have experienced the emotions surrounding our company for some time.

I do believe Arnie did articulate very well just why emotions get so charged concerning the Traditional base. The problem as Arnie see’s it, and I would agree, is that I was once a consumer of travel and now represent myself as a “Travel Agent”. The perception of course is that I don’t take travel as seriously nor have I invested the time and energy into qualifying myself to the same standards the Traditional Base did in order to be considered an equal in their eyes.

Right or wrong, and I’m not going to get into my personal views concerning this perception, that’s seems to be a very accurate description based on what I’ve seen from the most outspoken Agents but I do have to give Arnie credit for defining what the core issue is regarding our Traditionalists.

Kim did address the issue that we are not competing with the traditionalists and those of us who are “greenies” who join YTB simply point people to their web site and let friends, family, neighbors decide for themselves. If someone like myself wants to take our YTB business to another level, YTB and the industry as a whole has the proper training and tools in place to accommodate us that regard.

I think back to my first days of being a “greenie” with YTB and where I am today, and thanks to the training provided both by the company and the industry, I have a very nice niche in the travel business and do consider myself a “Travel Agent” today. I have every intention to learn and grow both my knowledge of the industry and my business. I think I’ve mentioned before some time ago, that I looked at becoming a Travel Agent at one time, but didn’t “qualify” back then either. YTB both opened the door for me and enabled me to create my own path into the industry.

Part two of the question concerned the California complaint of labeling YTB one of those “pyramid schemes” and of course questions surrounding the classic misconception of how our business model is mathematically impossible.

Kim answered this question admirably in stating the MLM model has been in existence for a number of years and pointed out that A.L. Williams started out in 1977 and is now part of Citi Company, known as Primerica. To this day they still recruit new Reps into their business. While some can’t get past how MLM is mathematically impossible I’m still waiting for someone to PLEASE provide just ONE company that has run out of people? When you look at Tupperware, Avon, Mary Kay, Amway, Pre-Paid, Fuller Brush and all the other companies out there that have not only been around for decades, but still thriving with new recruits day in and day out, you have to wonder how much longer this myth is going to continue to be an issue for some.

Kim was also asked just how many RTA’s there are. Based on our business model and the shear numbers we have at any given moment, Kim quoted 120,000. Again, I believe this stems from the fears and misconceptions of the words “pyramid scheme” and the mathematical impossibility. Those of us involved in it need to be just as focused as they are about just how many we have actually in the business.

Questions of if we would ever drop the MLM business model and become more traditional (legitimate was also used) came up several times during the conversation. Arnie even came right out and asked if YTB will simply ignore the concerns (phobias) about our marketing methods. Based on what I’ve seen over the last year, I wonder if they think we’re getting tired of being pummeled as the pariah of their industry. Unfortunately, one cruise line, a $25 Million complaint or very pointed public questions are not going to cave us or force us to change our model. The summit panel and the attendees didn't seem to comprehend that Kim, Coach, and Scott built a business with Primerica for 20 years and that same model awarded A.L. Williams / Primerica the number one spot 23 out of 25 years.

Kim did state that YTB intends on building and being competitive in a very large scale using the Network Marketing business model. It was very clear that this change has never been in question.

Next came the questions from the attendees. The first was how the company intends on controlling our Reps and RTA’s with all the YouTube and Craigslist misinformation out there. Kim did agree that there is some pretty lame postings and information out there. (So do I for that matter.) We have systems and checks and balances and dedicated staff in place to control that, and I’ve personally seen instances that when asked, people do take posts down or delete videos.

Just a matter of reference to our critics who read this by the way; when you see something taken down, or corrected, acknowledge it as a good thing and don’t ridicule the person for not having the guts to stand up to the company with this free speech garbage. Damming us if we do and damming us if we don’t isn’t how this works kids. If you want it taken down, don’t egg them on and try to be the example for once concerning professionalism and ethics.

Next came a question of how YTB could be “growing like gangbusters” if the number of RTA’s is actually declining. Again, this stems to the phobia about the MLM side of our business, and while the focus is purely on recruiting for them, I loved Kim’s answer to this. YTB has spent $30 Million in the last 30 months investing in our 120,000 square foot Home Office, purchases of surrounding land and property in the area, new technologies, new accounting software, booking and marketing platforms, booking engine upgrades and enhancements, and expansion into International markets. Furthermore, even with a decline in the number of RTA’s YTB has doubled our production with Carnival over last year and we still have almost a full quarter to go in 2008.

I realize growth only means one thing to some, and that’s how many get involved in the pyramid. Smart business people and trade magazines like Travel Weekly recognize what real growth is.

A question that was pretty cut and dry consisted of the Rep overrides of the RTA’s. That was part of the clear separation between Rep and RTA that both legal analysts and our critics have such a problem with. It was quite clear and direct, that this however is not our practice.

One comical note towards the end was one attendee question that asked why Royal Caribbean and Disney terminated their relationship with YTB. No, that’s not a typo, and yes this attendee actually asked if Disney has made the same mistake that Royal Caribbean did. Kim did note that this was news to him as well and wondered if Nadine Goodwin would be calling with some type of exclusive scoop. I think mentioning Disney was more wishful thinking much like wanting us to change our business model than a blatant attempt to misinform the audience.

And finally a question was asked, why so negative? We never got an answer to that, mostly because it was directed toward the traditionalists and not Kim. The point of this “Meet the Press” type interview was an attempt to help them relieve some of their constipation surrounding the MLM side of our business model. Kim was willing to put himself and our company on the line to help them. Not many people or companies would subject themselves to what was building up to be and certainly turned out to be a fairly uncomfortable environment.

What I am grateful for was the opportunity to get our side of the story out there without the blatant hostility. As I type this, I’m sure there are others crafting plenty of hostile remarks concerning the interview and our Travel Company President. You can count on that, which provides more assurances that some have no desire to have their phobias or personal misgivings about our model resolved.

Not everyone is going to like our model, nor does everyone have to. Direct Sales is a big industry and it’s getting bigger every single year. There’s no question that YTB is not only the biggest Travel MLM out there, but it’s also the most talked about. With our continued growth in travel, and just a little more of this kind of publicity and press from Travel Weekly, we’ll remain a clear target for critics and advocates alike. Like the Travel Weekly Power List and our #26 spot, YTB appears to be right in the middle of it for now.

For those of us in YTB out in the field, it’s up to us if we want to forge ahead or fall back. From what I’m gathering from Kim in this interview, Kim has no intent in hiding out or falling back.

Labels: Critics, Kim Sorensen, MLM Myths, Travel MLM, Travel Weekly, Virtual Summit, YTB Travel Network

Posted by TravelPro at 5:43 AM | Permalink

I had this forwarded to me via one of my Newsletter Subscribers yesterday morning. Yesterday started very early for me with my son needing to have a couple “sugar bunny’s” (cavities for us adults) filled, and it didn’t stop until late last night. I had planned on another post, but didn’t even have the time to start what I wanted, but when I saw this, I thought it was appropriate with all the trash talking going on over the internet.

I realize this can be easier said than done, even for me, but this puts everything into a great perspective. It’s not surprising that this came from one of YTB’s Top Directors, and a female to boot.

Juliet St. John.

The Funeral Story

Many years ago I was a sales manager for a company in Baltimore, Maryland. I would pull my team together from several states every quarter for a day of relationship and team building exercises as well as general sales training.

Labels: Home Based Travel Agent, Juliet St. John, MLM Myths, Travel MLM

Posted by TravelPro at 4:13 AM | Permalink

Have you ever seen or heard something and went…"Shut – UP"!? I don’t mean shut up like close your mouth shut up; although what PhoCusWright has now clarified for us will do that as well. No, I’m talking about “Shut – Up” meaning, “No Way!” or “I don’t believe it!”

You know...“Shut – UP!”
That’s exactly what came out of my mouth when I found this gem in Travel Trade last night. The reaction stems from the bonehead Traditionalist who's been trying to pull the wool over everyone's eyes for the last year and that guys like me wear these "rose colored glasses". We couldn't possibly have a better understanding than he does. Nor could online sales even remotely come close the kind of dominance he and the others spout off because of the "service" or the "knowledge" they provide.

It appears that PhoCusWright has dispelled their misinformation-and debunked the online travel myths we see all too often from our Traditionalists during the first-ever Analyst Forum, held September 10 in New York City.

Oh how our Traditionalists have been reaching for something…anything…that would substantiate their claim that market share is moving back to them. Well, sorry folks…just not happening and the jig is up.

I’d like to introduce to you our MythBusters…AKA: PhoCusWright.

Enjoy, and see if you don't say the same thing. ;-P

6 Online Travel Myths Unmasked at PhoCusWright Analyst Forum

Myth #1: The number of online travel buyers in the U.S. is declining. In fact, that number is on the rise, as documented in The Consumer Travel Trends Tenth Edition recently published by PhoCusWright Inc. In 2007, approximately 70% of online travelers (that is, adults who have taken a commercial air trip and stayed at a hotel for leisure in the past year, and used the Internet in the past 30 days) bought travel online, compared to 63% in 2006.

PhoCusWright dispelled this piece of misinformation-and debunked five additional online travel myths-at it’s first-ever Analyst Forum, held September 10 in New York City.

In addition to the misconception that online travel buyers are declining, The PhoCusWright Analyst Forum corrected these five other online travel myths:

Myth 1. The number of online travel buyers in the U.S. is declining. In fact, that number is on the rise, as documented in The Consumer Travel Trends Tenth Edition recently published by PhoCusWright Inc. In 2007, approximately 70% of online travelers (that is, adults who have taken a commercial air trip and stayed at a hotel for leisure in the past year, and used the Internet in the past 30 days) bought travel online, compared to 63% in 2006.

Myth 2. More and more online travel shoppers use supplier sites than online travel agencies. While this belief is widespread in the travel industry, it is simply untrue, according to PhoCusWright, the travel industry research firm. In terms of popularity, online travel agencies are making a comeback (source: The PhoCusWright Consumer Travel Trends Survey Tenth Edition or "CTTS10").

Myth 3. Travel agencies are experiencing a resurgence as travelers return to traditional purchasing channels. Not so. In reality, even many formerly exclusive offline buyers are migrating online for travel shopping and buying, according to CTTS10.

Myth 4. The next generation of travelers prefers to do everything online. The truth is, less than half of what 18-28 year olds spend on travel is spent online, according to The NEXTgen Traveler(TM) report, jointly published by PhoCusWright and Ypartnership.

Myth 5. Social networks and travel reviews have the greatest influence on travel decision-making. The NEXTgen Traveler(TM) report reveals that while social media is widespread, destination Web sites and online travel agencies are favored by nearly half of next generation travelers during the travel shopping process.

Myth 6. Online travel markets need high credit card and Internet penetration to succeed. The structure and ambitions of the travel marketplace are even more important drivers than infrastructure. Case in point is India, one of the most dynamic online travel marketplaces today, where roughly 98% of the population does not use credit cards or have access to the Internet.

The sold-out Analyst Forum provided attendees with a clearer understanding of the realities of the online travel marketplace, offering facts, figures and insights for strategic planning and decision-making, especially as attendees find themselves engaged in 2009 budget planning.

"Nobody wants to make strategic errors based on bad information," said Lorraine Sileo, vice president, research for PhoCusWright. "Through this Analyst Forum, we were able to educate attendees about online travel myths and the realities in consumer behavior and to paint a picture of the new distribution landscape so that they can better assess their channel partners, such as travel agencies.

"PhoCusWright's Analyst Forum will continue to take place on a quarterly basis in New York City featuring research and analysis on a variety of travel, tourism and hospitality topics.

Aint THAT somethin’?

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

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

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Travel Reservations: 1.800.243.4450
RTA #24635

Labels: MLM Myths, PhoCusWright, Travel MLM, Travel Trade

Posted by TravelPro at 5:11 AM | Permalink

It appears that someone is still frustrated with me because I won’t let him spout off here on my blog. So in order to make this person feel better about himself, I’m going to highlight his entry for everyone to see.

Please note, that he’s sworn off writing about me on his own blog so that’s why you find it on this forum. (Not really, but I really wish they would for their own sanity.)

The spin, ignorance, and flat out lies are getting old and rather worn. However, the man obviously wants an audience, so I’ll oblige at this point. And I'd like to ask my own question not only to the poster, but all posters who like to hide behind thier computer keyboards. (Later)

I have to wonder why everything I post needs to be commented on these days. It was my understanding that nobody reads this blog any longer, but every time I post, somebody’s commenting on what I’ve said. They just HAVE to respond with some sort of rebuttal to correct what they believe to be gross errors and lies that I post here in my own little corner of cyberspace.

In contrast, do I need to correct some of the gross errors I’ve seen out there made by some of the same people who think they have a better vantage point than I do?

Not really…

Keeping up with John and all his posts is a full time job in its own right. How the man makes any money with all the time he spends reading and posting on the internet is a complete mystery. A bigger mystery for me is how this man formulates some of the ideas he has.

Like most people, he takes what he’s heard as actual fact, but never seems to check to see if it’s even remotely accurate.

I had a good laugh over his assumption that R&B Marketing stood for “Rick and Brenda”, and even went as far as stating that he checked the Nevada registration.

Not that it would matter if Phil & Doris Davidoff are REP’s or RTA’s, he’s convinced that they are because of the Freedom Awards we handed out to during the National Convention. Not comprehending that Frank Brummett, Bob Federico, and UHY, LLP are also Freedom Award winners.

And, what does it say about someone when other Zealots need to help him out and start correcting him?

None of these false, misleading or at the very least deceptive claims however appears to stop the man from spouting off all day, every day over his obsession and illusions about YTB.

I could follow behind with a shovel and dump truck cleaning up all the crap this guy posts, but I’ve resigned myself to the fact that it’s never going to stop, and I honestly, it’s not much fun or profitable working the garbage detail.

What is amusing to me however about this rebuttal is how much time he spent trying to justify his position.

Let’s not forget that this poster laid claim that he couldn’t find ANY positive press on Coach. I could care less if I found 1 or 10 positive articles; it’s four more than he even cared to admit.

I LOVED the looooong drawn out explanation about a phone book. Maybe he spent all the time he did on this because he didn’t want anyone to look at why Rhode Island repealed its Travel Agent Bonding law? (That would be a 40% decline in Travel Agencies over the last 5 years.)

Nor do I recall ever posting here this notion about 80% of all travel being booked on line. (I’m not going through three years of posts however to make sure.) I do find it odd that he conveniently missed my post less than a month ago on actual on line booking stats, or the type of client demographic that make these purchases.

I would like to answer one question John asked in his post which was directed specifically at me.

“But what about this Doug...the next time you are in the Corner, why not ask Coach to host a series of meetings to address his critics.”

You don’t have the guts do you John?

Why is it up to me, Firemedic, or any other YTB’er to do that? Dude, you’re the one with the problem with YTB, not us. I find it very odd that you took the time to see Scott Tomer, was in the same room with the man, but didn’t say word one to him. I find it odd that you know the e-mail address of the CEO, but can’t send a simple e-mail to ask yourself? You have the address, and the phone numbers, heck, you claim to get calls from inside the Home Office, but can’t ask them to forward a message to Coach to arrange such a meeting?

I wish I could say I was kidding, but sadly, that’s how lame this guy really is.

John, I’m sorry buddy, but I just can’t condone or help someone who doesn’t have enough of a spine to take advantage of all the opportunities you’ve had to set this up on your own. So I’ll have to decline your request and state that the only reluctance I see is your own.

What has become very clear, is that you, the other Traditionalists, and the Zealots you have following you are scared to death about what you might find when you actually come face to face with a man who has more integrity, more character, and more ethics in his pinky finger, than whole lot of you combined.

If we have a problem, we pick up the phone like Von Nickleberry, or maybe someone like Regina Osei and at least attempt to straighten things out like an adult. But not you John, you’re too good, you’re too busy, you’re too special, you want it handed to you on silver platter because you’re the great and powerful John Frenaye.

Great and Powerful Oz is more like it.

If it meant that much to you, it would have been done. But instead, you hide behind a keyboard and type away with all your little insults and spin about how YTB is destroying your precious industry, and you want us, meaning the field of YTB, to make it better for you.

I’m done with this “get a clue” idea.

I now have to up the ante to “get a spine”.

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: John Frenaye, MLM Myths, Travel Agent Issues, Travel MLM

Posted by TravelPro at 4:33 AM | Permalink

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

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

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

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

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

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

Comments include:

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

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

“Welcome to the cult Mr and Mrs Davidoff.”

And my favorite from the same “author”…

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

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

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

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

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

So what gives?

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

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

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

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

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

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

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

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

Say it isn’t so!

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

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

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

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

Posted by TravelPro at 5:17 AM | Permalink

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

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

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

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

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

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

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

Who knew?

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

Some however, must not have gotten the memo.

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

"The numbers don’t lie."

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

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

Posted by TravelPro at 6:19 AM | Permalink

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Oooops.

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

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

Should be a enlighting for sure!

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

Posted by TravelPro at 6:14 AM | Permalink

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

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

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

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

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

Honest.

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

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

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

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

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

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

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

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

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

Dah!

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

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

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

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

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

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

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Labels: MLM Myths, Travel MLM, YTB National Convention

Posted by TravelPro at 6:39 AM | Permalink