A Pleasant Update

Last week, there was a Sale-A-Thon for Pleasant Holidays and YTB. As I read some blogs, I could tell the excitement was almost too much to handle.

Well, here are some results:
Since 4-19-09 through 4-27-09, @ 10:30 a.m. PDT, Pleasant had registered the following bookings from YTB. These include internet bookings and call center bookings.

HNL 4 PAX no deposit received (2 bookings, 2 pax each)
OGG 4 PAX deposit down (1 booking, 4 pax)
MZT 4 PAX no deposit received (2 bookings, 2 pax each)
PVR 3 PAX deposit down (1 booking, 3 pax)
CUN 8 PAX 1 deposit, 3 holds (4 bookings, 2 pax each)
OGG 2 PAX no deposit received (1 booking, 2 pax)

92,000 RTAs were able to sell 25 passengers in 9 days!  WOW!  That's .0003 passenger per RTA. Anyone care to guess how many websites were sold in the same period?

MLMs & American Idol

If you have watched any of the reality shows you know the premise. The most talented singer wins. The best dancers win. The affable MacGyver type never gets voted off the Island. However, to get to the best singer, dance and the last person standing on the Island you have to watch a bunch of wannabes with marginal talent. While some do have talent the majority don’t. When the stakes get high and the pressure is on they can’t deliver. It’s painful to watch these people who are voted off the show. They stand numbly and mumble, “I am disappointed. I am really disappointed. I have talent. I have the goods.” Strange, the rest of us don’t see the talent or the “goods.” Neither, do the millions of people who didn’t vote for them. Or , their fellow “Survivors.”

What does this have to do with MLM’s you ask. Specifically, travel MLM’s. It’s the same premise. A bunch of wannabe travel agents with no training wanting to participate in an industry where training is crucial. They may have made it this far on dumb luck, recruiting and actually made some money. But, when the pressure is on—they can’t deliver. If a client is outraged what do they do? They pass that client back to the vendor. Real travel professionals deal with customer service issues every day. That includes outraged clients. We don’t pass them off to the vendor. We deal with them oursevles. What a novel concept. And, when one of our suppliers closes their doors-we reaccomodate our clients and make sure their vacation or honeymoon isn’t interrupted. We call the hotels and the airlines to make sure payment have been received. We do a lot of work on behalf of our clients. Same with airline schedule changes, passport , visa issues, weather delays, flight cancellations, missed cruise sailings etc. What happens when someone calls you and loves Celebrity Cruise Line and is adamant that you book it? Can you plan a customized FIT of Europe? Do you know where to start? What hotels to book? Where to find that hidden little gem in Tuscany? Did you know some of us actually had clients on the planes that hit the Twin Towers? What would an MLM pseudo agent do in that case? Direct them to the vendor? It’s all in a day’s work for us. We do it because we love it. Not because of the perks, fam trips, discounts, tax write offs or getting commission off of our own travel.

MLM blogs are full of comments telling us to keep on charging service fee and leave them alone. You clearly don’t understand that we provide a service. I called my attorney the other day and asked him a couple of questions over the phone. Guess what? I received a bill for his time. All professionals charge a service fee. Your remark about putting us out of business is absurd too. I have corporate clients that will gladly pay me whatever fee I charge because they don’t want to deal with their own travel and the airlines. You don’t have a clue. One blog was actually gloating and in favor airlines charging us. I hate to break it to you but if the airlines start charging us that affects the MLMs too.

When your directors are fleeing like rat’s off a ship and your down line is leaving—you stand bewildered and mumble, “I am disappointed. I really am disappointed” Or, you point fingers and say it is everyone else’s fault not (insert) MLM name. Time for a reality check. If you truly love the travel business like we do and want to be in it there are other options that offer training & credentials without all the nasty stuff in between. Who knows you might actual be still standing at the end of the day.

YTB & Customer Dis-Service

Out of curiosity, I called the YTB help line to see what their advice might have been on the Swine Flu issue. So I traveled to my favorite RTA site and of course there was no phone number to contact my RTA. So I used the number shown in this paragraph:

Having problems with a booking or reservation?

If you are having problems with a booking, please contact your TSO (Travel Store Owner) for assistance, our Travel Support line at 1-800-243-4450, or the customer support number on your itinerary for specific assistance.

I dialed and was immediately greeted by Coach thanking me for calling YTB. Then something in Spanish. Then Coach told me  that if I had questions that there was a fantastic team standing by to take my call.  He told me if I had questions about marketing I could press 2. He told me if I had questions about my Your Travel Biz business I could press 3. Then he warned me that the calls may be recorded to assure quality!  Then the autodialer came on and said if I knew the extension I could press 7 and for a company direcotry by last name I could press 8. Coach came back on and thanked me for calling and told me to have a "super great day".

Then it repeated!  So if I have problems with a booking or a reservation, I am SOL!  And just like the call center in the graphic, I guess no one is home at the YTB Call Center either!

And you wonder why MY travel is booked with a professional!

An Expert RTA Opinion

When you want some good advice on the status of the travel industry, who do you turn to? Travel Weekly? Travel Trade? Stan Plog? Henry Hartveldt? Laura Bly? Wendy Perrin? Peter Yesawich? Marc Mancini?

Of course not, you turn to Leigh and Pedro Mendoza, who just purchased their travel agency in a box in January from YTB and who are now "travel agents".  According to Mendoza, she’s not seen any decrease in residents’ travel to destinations such as Hawaii, Alaska and the Caribbean. “It hasn’t slowed down,” she said. “People are still traveling.”

So, I need to ask, you have not seen a decrease in travel compared to what? How many "residents" have you sent to Hawaii, Alaska, and the Caribbean? How are those January-March Alaskan trips working out for you?

For Sale Free: One Unwanted Statue

Well, the saga of Lady Liberty continues. The Chicago Tribune reported last month that Hammond, IN still has no takers for the behemoth and it likely will be shredded in a styrofoam shredder.

"I got a lot of calls, but I didn't get any bids," Hammond Mayor Thomas McDermott says of the recent eBay listing. "If someone wants to use it, God bless 'em. We'll give it to them."

So now to recap her saga:
Originally manufactured by Beryl-Martin (a private company held by Sorensen, Tomer, and Tomer) for a reported cost of $8 million
Revised cost to $6 million
Revised cost to $3 million
Donated to Hammond, IN (tax write off? for how much?)
Hammond tries to erect her on an island. Too expensive.
Hammond tries to eBay the hunk of foam. No takers.
Hammond tries to cut her in half for another idea. That must have fallen through.
Hammond cannot even give the foam away.

All in all a great deal for YTB. They were able to get an admittedly awesome stage prop for their big convention law suit party. The executives of YTB were likely able to pocket a very tidy sum of money by having their privately held company manufacture the overpriced prop. YTB got a tax deduction for donating suckering Hammond for the disposal.

But what is incredibly sad is that YTB touted that this statue was being produced as a tribute to the fallen soldiers, firefighters, and police. It was a tribute to the heroes. And now, the statue is homeless, unwanted, ignored, and collecting dust. Well done YTB---some tribute!

Interesting Post on SEO

Has anyone ever wondered why if you google the phrase "YTB" that the majority of the results are regarding it being a scam--or defending that it is not? Why don't any of the 138,000+ travel sites come up?

In an April 16, 2009 column for Small Business Trends, Janet Meiners Thaeler might provide the answer:

1. Multiple domains or subdomains with essentially the same content. These sites or pages have practically the same information but with different keywords. Here’s an example I saw when I was looking for a locksmith. When I type in a city name the same site comes up again and again. The only difference is they have a different domain for each city or state. They are not regional but contract out to various cities. The page for Denver is the same as the page for Las Vegas, only with the words “Denver” swapped out for “Las Vegas.” There are many variations on this tactic which may work short term but long term they are risky.  Example of duplicate content:
   www.completelocksmith.com/locksmith_city.php?cid=denver
   www.completelocksmith.com/locksmith_city.php?cid=las vegas

 Let's look at two YTB sites and see if we can spot any similarities:

• http://www.ytbtravel.com/justpictureitnow
• http://www.ytbtravel.com/swrtravel
  

See, same domain and EXACTLY the same content. What is odd is that if you rent a website, wouldn't;t you want traffic to go with it? Wouldn't it seem prudent to offer some form of SEO to attract traffic to your "travel" programs rather than the recruiting programs? For $50 a month and $500, I would think that one might expect more.

I know, YTB don't need no Google either.

BREAKING NEWS

UPDATE: For now, it appears that the person who was reported as leaving, is indeed still with YTB for the moment. As mentioned, the same message was brought forward by three separate people in a short time, so it seemed as if it might have some credibility. Back to the rumor pile!

UPDATE: This rumor was just brought to our attention by a third party. It appears that this rumor may be headed to the confirmed pile! We could be wrong, but since we are hearing it from several sources, it might have some credibility.

We are hearing that one of the highest paid directors in YTB is heading out the door. We are trying to confirm this right now, but it appears that as we head into the State of YTB call tonight, that there may be one less Director in YTB.

Instructions On How To Close The Deal

From Mike The "Travel" (wink, wink) Guy:

Solve the Problem

One way to handle an objection is to solve the problem. Here is an example of this.


Objection: I don't have any money to invest?

Response: I can appreciate that Mr. Prospect. Let me ask you a question. If you had money to invest would you like to get started? Let him respond. (he says yes) Great, here is what I can do for you. I can offer you a free consultation. During that consultation I will look at your finances and see if we can free up any of the money you are currently spending. I recently met with a client and we freed up $150 to invest on a monthly basis. (story technique) If I could help you free up some money to invest would that interest you? (trial close)

More Spin

Was not able to attend the call, but received this notification at 8:50PM--1 hour before the call was scheduled to start.  Did anyone hop on? Can anyone fill us in? Or was it more of the same old stuff--Scott Tomer saying everything was perfect and that he will be there for the Reps and RTAs till he dies?  Just curious.  No comment on "YTB are having"

Steve Branch & TV Wilson Call It Quits

The following email was distributed this evening at 5:09PM. Their resignation letter was dated April 19, 2009. This would make two of the Circle of Champions that have departed in two weeks--first it was Bill Hoffmann and now Steve and TV.

Just Released Breaking News:

Steve Branch & TV Wilson QUIT YTB!


To Whom it May Concern,

This Letter of Resignation is very difficult for us. We would have never imagined
that we would be at this point after 5 great years with YTB, and the Great mentorship
and friendships of Coach, Scott and Kim, that we would be resigning our entire "Circle of Champions" Director Positions and Incomes from ID #s 13610, 13611, and 13612. We personally feel forced to make this very tough and heart retching decision to leave one family to make sure we save our families. Even though, we expect various emotional reactions and accept the fact that most of you, our friends, corporate staff, co-independent contractors and family members, will all not understand why we are separating from a company we love, but rest assured with our genuine 20 plus years of integrity on the line, that this decision was not reached easily without much thought, counsel, research and deliberation.

We realize that we must submit our Letter of Resignation due to reasons that were
beyond the companies control and or ours, such as the current economy, the California Attorney General lawsuit, the resent audits, the negative YTB press, the drastic cuts in Director pay, low team morale, the principals of momentum, the reversal of some of the leaders 2008 Stock awards, and a few other issues have all combined together that created a very hostile environment for us to thrive at our peak performance level. Therefore, we must seek other means to provide for our families at this very difficult and unbelievable juncture in our lives.

We request that our YTB team stay intact and that YTB will use our Director's
Pay, Stock rewards and residual to be added to the Director's Pool, repay any outstanding debts we may have with YTB, and contribute in anyway to the survivability of the company and the independent contractor's that we helped guide and trained for 5 great years. Finally, we will be praying for YTB , its leaders and our many friends to have all the success possible building your YTB business.

For those of you who would like to keep in touch with us for our National Generic Network Marketing Trainings and Success Coaching ,we can be reached thru our assistants

A Question On Stocks

UPDATE 8:29pm: The January sales were apparently forfeitures of shares because YTB did not meet some criteria for them to retain the shares. However, Scott transferred over 6 million shares into a private LP controlled by him and his wife. It is undetermined if the LP still holds the assets. The timing of this transfer is suspicious--30 days after the AG files suit. And then Scott does not report this for 7 months. BUt he did say that the SEC was not his expertise.

UPDATE 5:24pm: Not to be outdone, Little Scotty is reporting that he sold 6.5 million shares as well. Wow, that is almost 54% of his holdings. (Note: Ainsworth pointed out the majority of Scott's shares were sold in 2007 but the sale is just now being reported.)

Why would the Chairman of YTB sell off 15% of his stake in this golden "opportunity" on January 3, 2009?

I dunno, probably for the same reason that the Vice Chairman did.

Seems like the leadership is not feeling too confident. Wanna bet when the next SEC reports are filed for Cauthen and Clagg?

Settlement Is A Slam Dunk Definate Maybe

According to Andy Cauthen, the CEO of embattled CEO, he is "pleased with the progress it is making on that lawsuit and anticipates a final resolution."

This according to a column in today's TravelPulse.

Anticipates a final resolution? Come on Andy, just 15 days ago you let all the Directors, Coach's Corner members and employees that you had a tentative agreement.  So which is it?

YTB Answers Questions For Travel Weekly

YTB is beginning to answer some questions about the departing directors, and it appears some of the directors are speaking to the press about the inner workings of YTB.

In a Travel Weekly article published on April 19, 2009, Scott Tomer verifies what we have reported over the past week.

Scott Tomer, the company’s co-CEO, estimated that less than 10% of about 180 top producers, called directors, have left.

When we reported there were 185 directors at the convention, we were quickly rebuffed by the newest DD member, "ttabuster" who, over the past several days, seems to have lost most of her credibility:

ttabuster said...

"So TTABuster is Conrad." Not even close.

Try 212 Directors as of the 2008 Convention. A big majority are still with us. 14 YTB Circle of Champions at the 2008 Convention . . . 12 are still with us. Not exactly what I would call "fleeing".

The article also cites 6 directors are now working with ViSalus, but we have comfirmed that the actual number is AT LEAST 15, so it appears the exodus is still underway.

Another interesting clarification comes from the Attorney General's office regarding the "tentative" settlement with YTB

Although California and YTB may be close to resolving their differences, the state has said it won’t agree to any settlement that does not change the way YTB markets and operates in the state. A significant restructuring also could undermine reps’ earnings.

YTB, who was quick to blast out the news of a settlement that has yet to be reached, did not comment on that. However, when asked about the issue of insider trading, Scott Tomer admitted that SEC compliance "is not my expertise", according to the article. Tomer did continue to say that he was sure no executives made any trades during the delay--but can't speak for anyone else. And they accuse this blog of spinning.

Is This Right?

YTB Charitable Golf Outing

I think it is very admirable that a YTB Rep wants to do something for a charitable cause; but why not just do it and reap the name recognition? Instead, he has opted to offer "all" proceeds to charity, BUT you need to listen to the "opportunity" speech.

Most charitable events will let you know how much of your fee will go to the charity; however this Rep claims "all" proceeds will go to charity. Very confusing.  But I am conflicted on this one. In the past, I have supported many charities and I woudl either make the donation directly or be happy with the name/brand exposure to the attendees. I never woudl have thought about putting strings on the offer.

What do you think?

PS:  Note to Rep Mike Kirchner...nice video of Kent and Kim McLaughlin--they are gone!

Does This Sound Familiar?

Take It For What It Is Worth

Here is a post from the WHAM Message Board from someone that was in an MLM company and has taken a bit of a hiatus due to personal circumstances.

Okay there are some that are doing great with the MLM travel companies. But what I realized since I first signed up in July, when I was all gung ho, is that I AM NOT QUALIFIED to handle people's travel plans. YES, I took the "test" the company offered. YES I went online to every different cruise line, Disney etc and was taking courses through them. BUT I DO NOT KNOW what I NEED to know to be a SUCCESSFUL Travel Consultant.

About 3 mos into signing on with the company I was with, I found out about "host companies". SO then I went online applied for the Travel Institute and got my books and was going to study, get my REAL certification and do it the RIGHT way.

But my dad passed, lots my mojo, and actually had someone wanting to plan a trip last month, and I realized HOW UNDER QUALIFIED I was. "those" companies make you "think" you are a real travle agent, with your little ID card they send you. But do you REALLY have the knowledge YOU NEED, to assist and help your customer the way you SHOULD be doing??????

If I ever get my mojo back and want to get into the travel business, I will get my REAL certification, and find either a host agency or a brick and mortar.

I don't want to really bash those companies, BUT they are sending out people that have no idea what they are doing. YES the training is there, but it's all scattered all over the place. And after recieving all my books from TTI, I realized how much MORE you NEED to know to get into this business. It's ALOT ...A TON more than just signing up for webinars.

So basically I am posting this, so that if there is someone that is truly interested in working from HOME as a travel agent: go to the travel institute website, sign up for their course, you can finish it in under a year, take your certification test and move on from there by checking out host companies. There are a ton of great ones out there.

Telling you this because I wasted,,hmmm lets see the $300 to sign up, the $59.95 a month after that. I DID sell a cruise, was working on a couple others that did not pan out. The cruise I sold, THANK GOD was a friend so I wasn't TOTALLY embarrassed as I would if it would have been a complete stranger. HEre I am selling a cruise, when I never been on one, didn't know anything about them, the terminology etc.

Just be careful before you dive in people. My advice, take it or leave it!

Stacey

Another Director's Explanation

We obtained this email and it has some interesting points (highlighted) that should be noted. Spelling errors in the email are left in tact. It is long but worth the read. Pretty emotional and at least from this perspective from a director (not a Coach Corner Member or a PTL) it seems that YTB is straying from the Coach's mantra of "if it ain't right don;t do it." But, then again if you have a big bonus to pay out and a looming settlement and no cash....I'm just sayin'

Hello Friends and business partners,

I am sending this letter to everyone in our team to let you know that Family First Marketing is no longer affiliated with YTB because we were unjustly terminated. This will take you about 5 minutes to read and I thank you in advance for reading it.

Before I explain the reason, I want to PERSONALLY apologize to you for sending an email instead of calling but it is easier for those that would like to speak with us to call than for us to call THOUSANDS of numbers in our team. This way we are sure to get to those that want to know right away about why this has happened.

I WOULD LIKE to speak with those of you who want to hear from us personally so I can tell you one on one why this decision was made the way it was. I am not going to type something on a page that may be misunderstood. I want everyone to be CLEAR on why we were unjustly terminated and I do not want to leave by saying things and bashing anyone or anything but I will speak the TRUTH and ONLY THE TRUTH. For those that worked closely with my brother and I, you know WHO WE ARE, how hard we worked, and how much we believed in what we were doing so you can imagine what this has done to us.

As I am sitting here typing this letter, I cannot believe the words that are appearing on this page. For 5 years, my family gave our heart, soul, and LIFE to YTB without question. Most of you that were on our calls, in meetings, went to events, and built with us side by side must be amazed by this but before you make any judgements, it is important that you speak with my brother and I so you know the TRUTH.

I will tell you that we DID NOT violate any policies or our Director contract. Our money and site were taken from us 5 days before we were to be paid and we were not even extended the courtesy of a phone call before it happened. We hit Director the truthful and honest way (the company gave us nothing and our rank was hit before we were promoted) and gave 5 years of our life and we did not even get a phone call.

I did receive and email from a friend in YTB corporate that said, "I am sad b/c I heard you were leaving?" Well if that is why we were terminated, I guess ALL the Directors should be terminated because they are all looking because this is a business and you have to address the "what if" on the outcome. "what if they win" and "what if YTB loses to California?" I have the email from the company which obviously has the Date and Time and NOW I DO HAVE AN ENROLLMENT DATE in the company we are now AGGRESSIVELY BUILDING!! So, I have proof that we were not enrolled or had plans to enroll but our hand was forced by the company.

Any business person is going to keep there ear to the ground when something like this happens. It is tragic that YTB was attacked by California but it happened and you have to address what the repercussions are and could be. This type of thing makes it difficult to take someones $500 b/c you don't know if they are going to win or not.

We were told to go out and recruit the world because we were going to "come through this". They would always say, "we cant say it out loud that we are going to win but you can hear what we are saying!" I apologize to those of you that have held on with us and came on board but I was sucked in by the all of the promises and words that were being said. We would listen to it and so many of the Directors were too. Why? You just don't want to believe that it could really happen but it can.

Why wouldn't YTB just say, "hey go book some travel and don't recruit anyone right now b/c if we lose it is most likely that we will be out of business because of income or everyone will leave b/c they will believe that many states will follow." Of course not, they kept giving us incentives to go recruit more and more. The Directors were given a "DOUBLE BONUS" to cycle. We were getting paid $2000 a cycle instead of $1000 to go put more people in the business.

That is also b/c 95% of the Directors are not making any money and every call is promoted like they are all making a ton. This has become a blessing in disguise to me and my family because I was blinded and was not looking at nothing but what I was led to believe. I have now discovered a BILLION dollar company, YES there is a HUGE difference in Millions and BILLIONS, that has a 4.5% greater pay out than ANY comp plan I have seen and guess what I CAN PROVE IT for those of you who believe in us and want to take a look. If not, I wish you the best but I would look at a few other companies because we preach having a "plan B" every day and when you company is under attack the same rules apply to MLM.

There is only ONE PERSON WHO REALLY KNOWS what the outcome is going to be and its not anyone at YTB. It is the good lord above. If you are not a Christian I apologize for the analogy but you know what I mean.

I learned a VALUABLE lesson through all of this and it is to do MORE DUE diligence than you have done and find people who can learn more than you can because they have greater resources. I have consulted with 5 MULTI MILLIONAIRES in the industry (not in YTB and with no financial gain with their info) about this situation and our LAST venture in this industry.

I take FULL RESPONSIBILITY for our business and want to speak with anyone that would like to hear what we have learned and where we are going. YTB is STILL delivering a "false" message of hope while there are Directors that have moved back in with their parents b/c they are not making enough money, 90 days behind on house payments, about to lose their cars because they are holding on hoping YTB wins. YTB took away the "Guaranteed" $2000 at Level 1 Director and it devastated many.

There were Directors that were being paid money that were not even qualified and I am the one being called a traitor and liar! Come on. I have truth on my side and my family. Thankfully, FFm is not in this position but there are those that are still hanging on.

Why is it so difficult to build? Well, it is almost impossible to recruit when someone goes to Google and finds this info and ALMOST EVERYONE does and if the don't YOU SHOULD SPEAK very FRANK with them so they know the possible outcome. My brother and I lost 4 that were going to sign right before we were terminated and one person would not even call me back b/c he thought i was just trying to take his money. That is what it looks like when they research. YES, it is tragic and I had planned on retiring with YTB but now I have seen the REAL truth about YTB by how I was treated.

I have still not received a phone call and don't expect one based upon how this has been handled. I was told by a friend it was because we were LOOKING at other companies. Well, they could have terminated me 2 years ago b/c I look at EVERY company that is sent to me, go to meetings of other companies, and fly to competitors to learn their strengths and weaknesses. That is what any great business person does.

We are NOT leaving the industry because of our belief in what is possible and love for helping people. However, my reputation, ethical standards, and passion for helping people are the most important thing to me and my family and I WILL NOT jeopardize that for ANYONE or ANYTHING!!!

As I stated earlier, the reason for sending an email vs. calling everyone is so that those that want to speak with us and learn what we know can call us. I would love to speak with each of you to share this and we are prepared to take THOUSANDS of calls.

Of course, we are building a team elsewhere b/c of our termination. We built a team in the thousands and we we will do it again with a 3yr old BILLION dollar company that has the most COMPLETE opportunity I have seen in 15yrs due to the financial backing, amount of reps, and timing in the company. Thank God that I was forced to look harder b/c if not our family would have missed it.

I have a team in place right now with Reps that I can place in your team right away, IT IS NOT A BINARY, and you will benefit financially from the residual and total group. NOT JUST A ONE TIME $50 dollars! Of course, TIMING is of the essence b/c it is first come first serve and I do not mean that as a "sales pitch". I can prove it to you. All you have to do is call but I will GUARANTEE EVERYONE AT LEAST GETS ONE BUT THOSE THAT ACT FAST WILL OF COURSE BENEFIT EVEN MORE!! I am so excited that I get to help so EVERYONE this time!

I have always lived my life by this motto, "you cannot make the best decision possible without having all of the facts in place". Do not prejudge without looking at this opportunity and allowing me to answer your questions.

I want to apologize to those of you that have a team on this email but I had to send this to let you know that we can no longer support you in building YTB. If you have a team in YTB with our team, a sponsor that is still active, or a situation that you would like to keep your team in tact and bring them to our new company, I will speak with your personally one by one to keep it in tact as much as possible.

If you have had NO SUPPORT from your upline in YTB, we will PERSONALLY sponsor you and place someone in your group RIGHT NOW and show you what type of upline and support team we really are.

I did not plan on sending an email of this sort but YTB put my family in this undeserving position and now it is a personal mission of mine to help as many as I can with a BILLION DOLLAR company.

It is true that more than one "Circle of Champions" is GONE along with more than 20 Directors which means with all of the other challanges and the amont of RTA's that have canceled (over 400,000 went through and less than 78,000 active), in my opinoin, you can still book travel of course, but as for building the YTB opportunity it is questionable at best not only b/c of California law suit but the auditors talk about the business practices of the company, the proven track record of investigations by several states, the amount of reps leaveing EVEN before the CA issue.

Having said that, if I do not hear from you, I want to wish you the best that life has to offer for you and your family.

For those that want to chat, I would ask that you send an email for an appointment based on the amount of calls we will recieve. I dont want to leave anyone out but if you are HIGHLY interested in building with us, by all means, CALL RIGHT AWAY becuase I can promise that you will not be disappointed.

Thank you for your time!

The Bellville's

Bill Hoffmann Explains

Bill has a new video out that explains a little (not much) about his departure from YTB. Apparently the "income for life" claims from YTB only mean when YTB wants to honor the agreement. That Bill of Rights does not seem to be too powerful.

To view the video, you need to fill out your name and email address, but it can be ANY name or ANY email address as the video will appear immediately.  If you put the correct email address in, Bill will begin sending you stuff on ViSalus!

Just Some Thoughts On the Past Week

Many in YTB are crowing about a "win" with a proposed settlement. First, without knowing the details of the settlement, no one can classify it as a win or a lose. By the very nature of a settlement, both parties need to be happy with the terms and the AG did comment that there were going to be changes in the business model of YTB in California. Depending on any fines issued, the settlement could be devastating--remember YTB does not have the cash position to handle a large fine without credit, which they have statesd is no longer available to them. And the company is likely not insured for the loss. Finally, a settlement is essentially a weak admission of guilt. If YTB was as pristine, ethical, legal and moral as they claim to be, why not fight it in court and let a jury decide once and for all that YTB is perfectly legal? I think the answer is obvious.

I had a long conversation tonight with a gentleman that had been involved in MLM for many years. At one point with SkyBiz, he earned a documented (yes he documented it to me) income of $65,000 per week from his downline. He was involved with them when they collapsed and had some unique insights. He too agreed that a settlement was an admission of guilt to a degree. He also said that now that YTB has shown a willingness to negotiate a settlement, the other states who are actively investigating them (I have heard IL, LA, PA, OH, NY, MD and FL all have some sort of investigation or inquiry in progress.) will likely file suit as well. They will not be looking to take it to trial, but to negotiate a settlement with YTB  as they too have consumers that need protection. Multiple suits may indeed spark the interest of the FTC as well.

YTB has lost two major directors (Hoffmann and McLaughlin) and two minor directors (Bush and Belleville) in the last three weeks. If these directors are successful in taking their downline to their new MLM (ViSalus and MonaVie) this can represent in excess of 50,000 RTAs. And remember, the bulk of YTB's income is derived from the fees generated by the monthly RTA fees. The most recent number I have seen regarding RTAs is just shy of 75,000--and this does not include any that may have left in April as they will be carried as active until the end of the month.

I asked my MLM expert if there was a formula to figure if the downline would go with the director. He said there was not any formula or any rule of thumb. However, he said the key is if anyone is making money. If an RTA or a Rep is making money, they will likely stay. If not, there is very little risk for them to leave and much to gain if the next MLM is better. The secret to success in MLM (as was told by YTB many times) is to get in early--the right place at the right time. So if a departed director can communicate that ViSalus or MonaVie is indeed a better place at a better time, they will leave. I suspect there will be a large exodus based on the apparent success of the Bushes in ViSalus and their upline director who just made National Director--she was in their downline at YTB.

I will reiterate my position that I feel YTB may be guilty of insider trading. It may not have been deliberate, but judging from the volume of shares traded between the leak of the memo to their hand selected individuals and the public release tot he SEC, it seems likely. If I were a shareholder, I would be furious that senior management is paying favorites like that. I called the SEC today and spoke with John Heine in the Press Office and specifically asked if there was an active investigation on YTB and he replied that "We cannot comment on any active investigations." Of course this is not a yes or a no and you can draw your own conclusions.

Another interesting event occured last night at 710pm. In late February, YTB filed a RTA stock option plan that was scheduled to be released on May 1, 2009. Well, last night, a memo went out advising that it was open for participation immediately. This struck me as odd to release something in the middle of the month like this. It went on to say that the timeframe to buy shares (min $1,000 max $10,000) was April 15, 2009. Why not a full month? Why only 5 days when two of them are weekend days when the markets are closed and one of them is a holiday? Could it be a move to hopefully increase volume so that the five times normal volume experienced after the leak does not look so out of place? I also question how many RTAs, in this economy, have $1,000 to $10,000 to invest in YTB in the next 5 days.  We won't even discuss the merits of the program which vest your options over a 10 year period.

Over the past few days, some of my old nemeses have resurfaced. I am not naming any names, because they asked me not to, but there have been four individuals that were VERY vocal on this blog and in direct emails to me about their passion and love for YTB. Well, now, they seem to be fans of this blog, and have said that in hindsight, YTB was a loser.

It is quite possible that the leak may have caused a change of hear for the AG. Well, the leak or the flurry of emails that went around from the Directors citing "Open Season on California" and "California Gold", and the emergency conference call instructing Reps on how to "Use California to explode your business." But regardless of the outcome, this does not reflect on YTB's acceptance in the travel industry. IATAN is not taking them back (and before the comments come about not needing IATAN, if they were so insignificant, why did YTB hire Al Anolik to appeal the decision?), RCCL is not taking the back, NCL is not taking them back, A Plus Tours is not taking them back, Perillo Tours is not taking them back, Fare Buzz is not taking them back, Qantas Vacations is not taking them back, and the others that have quietly dumped them are likely not taking them back either. They are still ineligible for membership in ASTA, OSSN, NACTA or ARTA.

With this settlement, it gets one monkey off their back--it may have opened the door for three or four monkeys to jump on,  but time will tell. Now they need to address the other items state by their accountants. The management needs to stop using the company as a personal piggy bank and learn how to take direction from the Board and be accountable to the other shareholders. They need to figure out how to improve their finances--a difficult task with a looming settlement/fine and a mass exodus of RTAs and Directors. They also need to see if they will have to re-state their financials yet again. The auditors stated they felt the information provided was not accurate and the veracity of the financials could not be guaranteed. So, they do have a lot on their plate.

And to put some numbers in perspective, with 138,000 RTAs (as they claimed in June 2008) YTB would bring in $6.9 million a month. With 75,000, the income is $3.75 million a month. And for a year in which they saw their fastest growth, they saw a loss close to $5 million.  So now, in a down economy, with large fixed payments looming, with a settlement looming, with almost half as many RTAs providing them income, how does one pull this out?

And a great big shout out to my friend Travelin Moms...she's been busy commenting on older posts so likely they are hard to find, but entertaining nonetheless!

Mysterious Van Seen In Annapolis

YTB And The SEC

Many have opined that the release of the memo was an effort to hold off the departing directors--there are reportedly 15 to 20 more departing in the next week to ten days. It is quite possible. However, it may have been one of their biggest "whoops" moves since it may technically be a violation of the Security Exchange Commission's (SEC) regulations on insider trading. By releasing the memo of a tentative settlement only to "certain" individuals a full 24 hours prior to announcing it to the public, YTB may have dealt insider information. And if you look at the volume of their stock (YTBLA.ob), you can see that there was significant action on it. The volume was nearly five times normal volume.

So, lets say that one of the "Travel Professionals" at YTB got a hold of this information at 3:47pm on Monday, April 6th when the stock was trading at 16 cents. Feeling that the stock could only go up on the public release of this news, a "Travel Professional" buys 20,000 shares for $3200.00. Let's say that the "Travel Professional" passes the word onto everyone he knows who also buys up the shares because YTB has not released the information yet. It might draw five times the volume on Tuesday April 7th. Late in the day on April 7th at 3:17pm, YTB finally releases the information that they distributed the memo 24 hours prior. Now that the information is public, the stock, predictably went up. Now just suppose that the "Travel Professional" sold his 20,000 shares on April 8th when the stock was trading at 34 cents. He would walk out with $6,800.00. That is a 112% gain in slightly more than 24 hours. And if the stock was held, it is likely to increase some more this week as the mystery surrounding the settlement fuels the market. To me, this seems like insider trading.

But what does the Securities Exchange Commission have to say? For those that are interested in investigating insider trading, you can visit the SEC's website. Here is what they have to say on "insider trading". Pay particular note to the first two bullet points:

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.

Examples of insider trading cases that have been brought by the SEC are cases against:

• Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments;
• Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information;
• Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded;
• Government employees who learned of such information because of their employment by the government; and
• Other persons who misappropriated, and took advantage of, confidential information from their employers.

The SEC even has a "bounty program" which offers cash rewards for tips that lead to convictions of insider trading. And it is even very simple for anyone to file a complaint right on their site. Technology is a great thing!

News From ViSalus

This just in from ViSalus--gosh the message sounds familiar. That whole "red carpet" thing rings a bell too! And look at #3, the names sound familiar as well! (if anyone knows the definition of the highlighted term, please let me know)

Team Visalus updates from
1. Team Visalus live conference call Monday April 6th at 6:00 pm Pacific, 712-580-8025, pin number 286113 #. Major updates and Blockbuster News. Hear from leaders on how they are creating success and getting free BMW'S.

2. A big congratulations goes out to Carmolita Caesar our newest National Director. Carmolita we are super proud of you.

3. Another big congratulations goes out to Ron and Phyllis Bush with Carmolitas team who hit Regional Director.Team they are BMW qualified in four days,WOW what a story.

4.Team we have another Red Carpet Day in Los Angeles on April 7th. We need anyone that you have coming to RSVP by tomorrow. You can do this at www.visalus.com.

Team Visalus is starting it's momentum run, and in every company that experiences this the people that are in at the beginning that go to work can get extremely wealthy.


Here is 1 major reason why we are starting momentum. Visalus has the first fully intagratable social network. The patented ViNet. A social network on the front end and the back. The back office is a social network. Instead of just a number on your back office how about seeing your teams goals, blogs and family pictures and being able to respond and congratulate them in real time.

Talk about retention on steroids. isn't that why we do this business. How about the Obama campaign. In the current issue of Fast Company magazine the cover has Chris Hughes one of the founders of Face book and how he and his company helped Obama win the election by creating momentum thru social networks like Face book.

Well Visalus has a social network and we will win the battle for networkmarketing market share the same way.
Table of Contents | April 2009
Features

Boy Wonder
The untold story of how Chris Hughes, today only 25 years old, helped create two of the most successful start ups in modern history, Face book and the Barack Obama campaign. By Ellen McGirt

Team every one of you joined for a reason. I believe things happen for a reason. What if this was your turn, maybe payback for something good that you did. You know deep down that this will be the future of MLM.

It won't be a product or comp plan that creates the next 7 to 10 billion dollar MLM company. It will be technology. Right now we have customers and reps shooting videos from their cell phones about are great products and opportunity and instantly posting them on their ViNet site to share to the world.

It isn't even a question if Visalus will catch on, just like YouTube, My space and Face book caught on. The only question is will you be on.
Get your share. Why wouldn't you.

Not So Fast

No Settlement In Place. No Final Agreement. YTB Jumped The Gun

According to LegalNews Line there has been no settlement reached between YTB and the State of Califiornia.

SACRAMENTO, Calif. (Legal Newsline)-Contrary to an e-mail sent to its sales force, the California Attorney General's Office said it has not reached an agreement with YourTravelBiz.com.

The Midwest-based Internet travel company claimed it has reached a settlement with the California Attorney General's office that would allow it to stay in business, according to a report in the St. Louis Post-Dispatch on Tuesday. The company's stock prices rose with the report of the settlement.

But Scott Gerber, director of communications for the California attorney general's office said the announcement was premature.

"Attorney General Brown sued YTB last year to block it from operating its illegal pyramid scheme," Gerber said. "There is no final agreement at this point, and the attorney general would not enter into any settlement that did not change how YTB markets and operates its business in California so that consumers are protected."

YTB's Settlement

YTB has just filed an 8-K report. While it references the settlement, this 8-K merely states that YTB circulated a memo. This was done to comply with insider trading laws.

On April 6, 2009, YTB International, Inc. (the “Company”) circulated an internal communication to its employees and certain members of its sales force indicating that the Company reached a tentative settlement agreement with the State of California as of Monday, April 6, 2009 in connection with the civil action filed on August 4, 2008 against the Company and certain executive officers of the Company in the Superior Court of California, County of Los Angeles, by the California Attorney General.

The information in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and shall not be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing.

YTB Says California Case Is Settled

From a Coach's Corner memo sent by Andy Cauthen last night, YTB has announced a tentative settlement of the California case. Terms have not been released nor has it been confirmed with California at this point. Here is the contents of the memo sent by Andy Cauthen to Coach's Corner members:

Coach's Corner Members:

The legal counsel of YTB and CEO Scott Tomer are pleased
to announce that we have a tentative settlement agreement with
the State of California as of today, Monday, April 6, 2009.

YTB will continue to focus on its objectives and move
forward with you in building a great company.

Andy

What Does This Say?

YTB makes an impression at cruise3sixty

And no, it was not necessarily a good impression.

I was in Ft Lauderdale for the full length of cruise3sixty (arrived April 1, returned home April 6). I anticipated there would be MLMers in attendance, but was surprised not to see any name tags with GTI, World Ventures, or any other known MLM named except for YTB. That doesn't mean they weren't there, just not as noticeable. Also, I do know there were a handful of YTBers there but with their own agency name on their name tags, not YTB (I know this because in direct conversations I had with them they said "oh, I'm with YTB....."). Throughout cruise3sixty I tried to keep an open mind, spoke with many members of YTB as well as professional travel agents.

So in the 6 days that I was in attendance, here are some direct observations:

1. Overheard one YTBer touting that she was both a Princess Commodore and a Cunard Commodore. Honestly I was impressed that she took the time to go through the extensive training required to reach Commodore status. Then she went on to brag about how you get free cruises when you become a Commodore (so now my bubble was busted, she sounded like the free cruises were the only reasons she became a Commodore), and she continued by saying that she was going to invite a friend to go on the free cruise with her but she was GOING TO CHARGE HER FRIEND FULL FARE AND POCKET THE MONEY (to cover her onboard spending).
2. Royal Caribbean sponsored a special event at the International Swimming Hall of Fame museum - a preview of the Aqua Theater entertainment onboard Oasis of the Seas. Before cruise3sixty we were sent invitations. I'm going to hazard a guess that YTBers were not sent invites since they cannot sell Royal Caribbean. We were not required to produce print outs of our confirmations for admission, so really anyone could have attended. Two YTBers heard "something" was going on and boarded our bus to the event. They had no clue where they were going and no foreknowledge of the event. We explained that it was a special event at the swim museum and was a preview of some Oasis entertainment. When we arrived at the museum they were disappointed we weren't actually boarding the ship (mind you this was at 8pm and all ships had left port hours ago, not to mention Oasis isn't completed and is still in Finland!). They didn't bother to get off the bus, and rode it back to the hotel. Had they known about the free food, alcohol, and give aways they might have stuck around.
3. None of the MLMers wear the obvious T-shirts any more, like the lime green YTB shirts that said something to the effect of "I traveled here for free - ask me how!" But one had large buttons on her purse (approximately 3" diameter). One said FUTURE YTB DIRECTOR and the other said GET PAID TO GO ON VACATIONS - ASK ME HOW. Now honestly, does that sound like selling travel is her focus? Or recruiting?
4. I had to chuckle over the unsuspecting YTBers that stopped at the Coral Sands Travel (host agency) booth, and signed up for Peter's email newsletter. Won't they be in for a surprise when they receive the next issue?
5. There were a small number of YTBers "quietly" looking for another host option. They approached several host agency booths for information, and I talked with several myself. They weren't ready to completely cut their ties with YTB (and no reasons were given about why), but they were looking for alternatives. A couple said they were looking for ways to book Royal Caribbean, Celebrity, Azamara, Norwegian Cruise Line, Qantas Vacations, etc. since they cannot book them through YTB any longer. Others wanted a 'back up" in place if (when) YTB declined even further or disappeared.
6. Several YTBers stopped at booths and asked verbatim "what can you do for us?" These were not supplier or host agency booths - these were support type groups (specifically witnessed at ASTA, NACTA, and several of the media booths). A rep at one booth tried explaining what services they offered to travel agents, and the YTBers kept harping on "what do you GIVE us?" and "do you offer 24/7 support?" (obviously not listening to what the rep had explained their services were). This went on for several minutes before the YTBers huffed off.
7. Many of the supplier reps have learned over the years - and this is directed at travel agent professionals and MLMers. Several suppliers now keep their "good tchatchkies" hidden under their tables. Anyone (professional TA or MLMer) that simply swoops & scoops (swoops in, scoops up flyers/brochures, tchatchkies, and keeps moving without talking to a rep) gets nothing but the cheap give aways on the table tops (key chains, candy, pens). Professional agents that stopped, spoke with the reps, and showed a geniune interest in their product were the recipient of goodies held in reserve under the tables - tote bags, shirts, coffee mugs, etc. I stood back and watched several different vendors and how they operated - when an MLMer stopped to speak to a rep, depending on their attitude towards the supplier and their conversation (i.e. questions about FAMs and TA discounts were an immediate turn-off) determined if the "good tchatchkies" stayed hidden. And more often than not, they stayed hidden.
8. If any of the YTBers stuck around for the entertainment after dinner Saturday night, they probably didn't like The Second City skit at the end.....they sang a song about how NCL loved professional travel agents. Ouch.

I'll give the YTBers credit - the heavy recruiting of past years was not obvious this year. I'm sure there were one on one discussions throughout the weekend, but then there were one on one discussions where we were trying to sway them to "jump ship" (yeah, pun intended) and look for a more respectable host. Heck, even one YTBer with a downline of supposedly 20+ (claiming they all focus on selling travel) was advised that SHE can become her own legitimate host agency (something she hadn't thought of before) if she and her "agents" were truly selling enough travel (to qualify as a TSI agency at least).

A New YTB Blog Of Note

While this new blog looks semi-official complete with the YTB logo, it is owned by a Rep in in Washington state. What is surprising is that they are seemingly re-encouraging people to make all the false claims they did in the past. You know the claims that got them in trouble in California!

Like this post:

Each has earned more than $1,000,000 in commissions, bonuses, and stock options in a 12 month period. There is a place of honor reserved for them and their story for all time in the YTB International World Headquarters.

And then there is this one that claims YTB will "rebuild" America. Seems like a stretch to me, but hey, Coach For President in 2012!

A great new website just launched called Let’s Rebuild America Now which includes 17 videos of average people who are involved in YTB. Listen to their stories and watch their videos, and meet the Real People in YTB.

So, it seems the embargo of public blogs has been lifted. Let the claims begin!

MailPound & YTB: Partners In Shenanigans

There has been some discussion in the comments about "forgeries". Well there have been some shenanigans but no forgeries. YTB and MailPound have been making all sorts of changes to the information they jointly released to reflect that there is NOT a relationship between the two. However, the two screen shots from below ought to set the record straight! Someone said that when you lay down with dogs, there is a good chance you might get fleas.

Screen capture of the YTB/MailPound video which was pulled from YouTube

Screen capture of the original YTB/MailPound partnership published in the Biz Report

Here Comes The Exodus

 UPDATE 2 : 8:03pm April 4, 2009.  It has been confirmed that Bill Hoffman did indeed leave YTB. His website www.billhoffmann.com is still up and references YTB, but his RTA site is down and several sources have confirmed he has switched MLMs and is now with ViSalus. Kent McLaughlin has also been confirmed as leaving for ViSalus.


UPDATE 8:25PM: There have been conflicting reports of the departing directors names. At this point, it is unsure if Bill Hoffman, PJ Jensen, and Kent McLaughlin are leaving. When we find out for sure, we will update.

Over the past few weeks we have heard rumblings of a mass exodus of YTB Directors. Some unconfirmed names were mentioned but now it appears that three of them have made it public. We are hearing that PJ Jensen, Bill Hoffman, and Kent McLaughlin have fled the grips of YTB to greener pastures.

It was just a few weeks ago that Ron and Phyllis Bush departed YTB and apparently they are very happy in the new MLM home with ViSalus. It was rumored that ViSalus was paying big guaranteed dollars for directors to bring their teams.

We don't know if PJ, Bill, or Kent will be going there but we do know that PJ and Bill are two of the top money earners EVER in YTB. We are not sure of their current director "level" but it is believed that both Bill and PJ are at least Level 5 which could represent a loss of 50,000 people to YTB. It is difficult to determine how many are reps and how many are RTAs.

Both PJ and Bill have been featured on numerous YTB marketing videos--PJ is the one on the speedboat with his kids and Bill is usually on the phone in his luxury car. We have heard that several other well known directors are leaving as well, but we cannot confirm that at this point.

Can YTB hold it together with this kind of news?

MailPound & YTB: A Secret Love Affair

UPDATE: It appears that Mailpound has been busy today. The link to the YTB page about the partnership has been revised to indicate a partnership with "Smart Travel Technologies" and the Whois page now has been anonymized. But that was to be expected. Let me post the original pages in a little bit for those that missed them.

A funny thing happened on the way to the YouTube studio. As soon as MailPound realized YTB was using them to further "legitimize" the alleged pyramid scheme, they insisted that the video be pulled down. One has to wonder if MailPound is ashamed of their relationship with YTB. Maybe they are concerned that the relationship may affect their own credibility with the true professionals who sell travel? Ya think?

Mailpound appears to be backing off from their YTB podium and this blog has obtained an April 1, 2009 email from Bob Maier (President of SMART Travel Technologies, Inc. and CEO of MailPound.com) addressing the infamous video. Included in his comments, Bob has some less than kind words for YTB--contrary to what another blogger has said:

First, MailPound and certainly no Travel Trade, has "partnered" with YTB. We are not stupid. If you check, the YouTube video you refer to has been taken down. As soon as we heard about it we contacted YTB and demeaned it be taken down. Also, they should also have removed any reference to MailPound on their website.

However, it is gratifying to us that so few agents have responded to the bogus information and thought that MailPound would be stupid enough to enter into a partnership with YTB. For eleven years we have supported all travel agents with a host of free services. Most agents appreciate that support.

But is Bob REALLY sincere? Or is this just more spin? Is MailPound partnered with YTB or not? Well when you go to the "new and improved" YTB Marketing site with which MailPound purports to have no "partnership", you see this. And lo and behold, not a single mention of MailPound. But dig a little deeper and you will discover that while MailPound claims they are not "stupid enough" to partner with YTB, apparently they are stupid enough to buy a domain for them. And in one of the most strange coincidences imaginable, Bob Maier seems to be the administrative contact for this YTB domain that has nothing to do with MailPound--complete with a MailPound email address. So, you tell me--is this a partnership? To me, if it looks like a partnership, smells like a partnership and talks like a partnership--seems like a partnership to me. What do you think? And if you are still not convinced, check out the latest Biz Report from YTB where they talk about the new and exciting video produced by MailPound's own Debbie Maier!

Registrant:Compset Systems12 East Stow RoadSuite 210Marlton, New Jersey 08053United StatesRegistered through: GoDaddy.com, Inc. (http://www.godaddy.com)Domain Name: YTB-EMARKETING.COMCreated on: 11-Mar-09Expires on: 11-Mar-10Last Updated on: 11-Mar-09Administrative Contact:Maier, Robert  kobrien@mailpound.comCompset Systems12 East Stow RoadSuite 210Marlton, New Jersey 08053United States
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