Blog homeThe other day I wrote a post about a vision of the future of travel distribution and travel ecommerce (2017). One of the comments from that post was from Earl Allen Boek (RobertsResorts) suggesting that companies such as YTBtravel.com - a multi level marketing (MLM) company working within online travel - are the future.
This therefore is my review of their system….. I appreciate that I am poking a stick into a hornet’s nest…. the Tripso.com forum has a 150 posts on the topic just in one thread - which ultimately lead to the thread being terminated and Earl being banned from their forum. However I wish to remain objective and see where we end up.
What is MLM?
MLM is defined by Wikipedia as a business model that combines direct marketing with franchising.
With YTB the model works as follows. An individual pays YTB $500 USD setup fees then $49 USD per month. You then receive a fully functional travel website….. which sells flights, hotels and car hire….From sales via this website you receive 60% of any commission earnt by YTB.
Additionally you can create a “downline” - which is people in your network you recruit - from whom you also earn money. There is therefore an incentive to build a larger downline as for each person who joins your network you receive income (regardless whether they sell product or not). This network pays you from ”multi levels” - hence the term “multi level marketing”.
What are the benefits of YTB?
According to YTB, the benefits of their programme are:
- You can now offset your own travel costs against pre-tax income (rather than buying your annual holiday out of post tax income) because you are now a travel professional (source: http://www.ytbvideo.com/). i.e. this is a personal tax reduction mechanism
- You can go on travel agent “fam” trips…. as you are now an “official” travel agent (although there is some discussion about this within the Tripso.com travel agent forums)
- Income for life (and afterlife as well….) - as long as you can build a big, fee paying, network
The negative press
MLM’s detractors suggest that what is actually happening is that there is a greater incentive for new user recruitment paying the fees rather than the incentive to generate product sales from travel consumers.
What about YTB?
There is little doubt that they are a large company. According to their investor relations site they did $226,000,000 USD in sales in 2006 - and estimate 80,000 cruise passengers for 2007. These cruise numbers for 2007 will be impacted as a result of Royal Caribbean Cruise Lines (RCCL) recently terminating their product supply contract. (source: Letter from J. Kim Sorensen, CEO YTB travel network, 12th Oct, on investor relations site)
[See financial update below]
My thoughts
As a travel ecommerce project manager I am always looking to clarify business objectives and requirements - letting the IT teams then define a solution that meets those objectives and requirements - and innovate within the boundaries given to them (this is preferable than business / commercial people giving a solution to an IT team - as then very little innovation can take place).
So - what are the YTB business objectives? Their proposition is that it would be better to buy your flights, hotels and car hire from someone you know - a friend - or your mum…. than from someone else such as a big brand travel website.
Right - I get that. This is a worthy objective. Whether your mum should be part of the product support system (such as dealing with lost tickets, payment issues, flight schedule changes etc) is another question - but going with the concept this is just a sales problem (not a support one) - this business objective makes some sense.
However, and its a big however, the execution is wrong - very wrong.
Importantly every single retail travel agent (RTA) from YTB has a similar website with minimal design differentiation and zero product differentiation. This can’t work in practice because we know that even large online travel agents struggle to differentiate themselves…..
Maybe though this differentiation isn’t important if you are selling to friends and family - but this does then restrict sales opportunities to those you know personally - rather than general public sales. (You also can’t market to unknown people because the commissions you are earning - 60% of actual commissions received by YTB - would not let you compete with other OTAs in a Pay Per Click bidding game - one of the major marketing mechanisms online).
What would I do?
I like the principle of buying from people you trust and have a personal relationship with. This is something that could be built on top of some of the social networks that are out there….. The core USP of social networks are their ability to let you access their knowledge of who knows whom - and how people are connected or related. This is exactly the information that YTB should be getting their agents to utilise.
Therefore if I was YTB I would drop the concept of fees based MLM and get into the social network application game. Build something like some of the itinerary sharing websites that I reviewed last week - 15 itinerary saving / sharing websites reviewed - let your retail travel agents create mini networks where they can invite friends and family - then let people market and sell to each other through their natural networks. This would probably work rather well.
I love giving away neat business ideas….. here is one that anyone can do. Create a YTB facebook application. There are already companies out there that build marketing tools on top of the YTB system - such as VacationMedia.net . I expect you would find it quite easy to get many YTB types to pay you $10 per month to access your facebook application.
Further reading
- Your Travel Biz scam - a blog post with 242 comments
- Tripso.com forum posting - 15 pages of comments mainly from travel agents
- John Frenaye’s column on msnbc - overview article from a well known travel columnist
- A petition signed by 1944 US travel agents - about MLM in travel
Please note. This is my blog. I will moderate / edit comments if I have to.
Update #1
Actually looks like YTB are not quite as big as previously stated…… According to figures found on Edgar online, you can see their 2005 / 2006 revenues. Follow the link and you can see. In essence out of $50 million USD income from 2006, $36 million was from store sales (i.e. MLM fees), $6 million USD on selling training and marketing materials and $7 million USD from travel agent commissions. Working on a 10% commission figure - this probably means they sold $70 million USD of travel products in 2006.
I am more than happy to print corrections etc - or use the comments below.
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Wow Alex you really have a grip on this. You, and I’m sure you’ve done it here to dozens before. You have a ability to size up something, quickly with thought and an impressive delivery. You should do this for a living. Smile
I agree with most of what you are saying, right down to community internet business, although I don’t think you call it that, exactly. We just call our members, FAMILY, but it really is a travel business community, isn’t it?
The tripso conversation ended twice, many of the members were very soft-skinned and I repeated the same question over and over, through-out the thread. The question I posted to the ‘ANYTHING GOES FORUM, which I now suggest they name, ‘ANYTHING WE SAY GOES’, the question was this, “Ok, John
Frenaye, Jr., The travel industry over the last 10 or so years has lost over 200,000 brick and mortor
operations and last year they lost 80 million customers to the click and order businesses like Expedia, Orbitz and others. Why attack the MLM industry that has an estimated fifty million Americans involved in
it. A business model you call illegal and a scam, and you damned sure know we’re not. Because we’ve been in business nearly 8 years in fifty states, and soon Canada, legally. I’ve repeatly told you, we are not a card mill. Which you also name us. Why lie about my industry and company and why attack us at all? if your so dang sure it’s a bad model, wouldn’t it just go the direction of the convential dinosaur travel model? Why now do you feel you need to attack us at all?
I also mentioned my hobby is marketing on the internet for fun and profit, more fun than profit, over the years. I really appreciate your even-handed approach to this topic. I am aware of the importance today to control the conversation on the topic. Travel. Now in Tripso’s case they are controlling the conversation, I am doing well there, just being involved in it..
In spite of that, there were post that made too much sense for John’s folks, like he has now started removing the post he does not agree with or like on the petition. I cannot imagine his real reasons for doing ithis, But it’s not his salvation. We already know how this story ends. John has just fired what I consider the first shot of what I call http://travelwar.info please, at least let them know here, it was the link to my marketing and recruiting site. I am using this Somewhat Negative Press to funnel business to my sites. People love certain things on the internet. Negative press almost on anything, Humor, Free Information can all be used as bait & hooks. In your business, you know doubt know more about topic I call Conversation Domination or Bending the Web or baiting the hook, somewhat what I used..the readers of Tripso, the MLM,YTB Atttack Petition For.
My comments on those meduims brought me over 200 hits to my travel marketing and company recruitment sites. I mentioned it an thanked John for the traffic. He finally figured out what I was doing
there, which he called, “Just strring up stuff” was actually Bending The Web and becoming involved in the conversation. Best of all to me was I used the meduim he pays for to do it with. He did not figure out what I was doing there until I bragged about it to him.
One of his posters said, “Oh,wow, You got an extra 200 hits…Big Deal” Now I’m going to address the one thing I think you and they are wrong about. When it comes to Mum or Orbitz, mom wins everytime. How do we compete with the likes of them, Expedia, and others.
200 hits in the 3 days is not much until you multiply it times 127,000. Now if you could do it that many times you’d have an additional, I get 25 million, 400 thousand Hits, In three days! And YTB has the same phone rooms and service center any of the big 10 have, maybe better. That’s 250 million hits a month! Close to the amount of visits the entire conventional travel industry get a month all together. The difference is this, I hear Expedia spends $5 mil a week to compete in the market. Now you think Mum wins and I say, “he who can reach more people with the product, service and the communication, as in community travel business booking, for free, wins.”
Why do you think John had to remove many signatures he didn’t like? Because I got on the petition and signed too. Which I was more than willing to do, if I could leave a comment and become involved in what had become a “real one way” conversation. Now the result of that petitions value will always be in question. Realize John only left the conversations and signatures he liked. He now expects RCCI, maybe Marriott and Best Western and a couple of other smaller cruise lines to take this twisted instrument as fact and the last say on the matter. I question any Vendor doing that. They should remember what has happened to their industry, happened on their and John’s watch, not YTB’S or the MLM’s.
Now John did kinda get me though…I think you call it tags. He wrote something on the thread that lead me to believe he had did a Google search on my name…so after I was removed from Tripso I thought,
“Well I don’t have anything to hide, but I’d like to see what he saw, so. On there was a link, back to the Tripso thread with the caption…”escorted off by staff and FBI..” Now that might really PO some…but alls fair in love and war.
From reading the post on the petition, I know I’m having a lot more fun doing this business than most of them are. Wish I could post a bunch of them here. One of my favorites was, from Lorene S. Of Unique Travel of Palm Beach, #390…Where she wrote, “These people are attending professional business networking seminars and it is a shame, as they are creating interest among professionals.”
Now John and his buddies can’t afford to let that happen, can they?
Earl Allen Boek
Roberts Resorts
530-378-1363
In our business…we too look at trends. Based on past experience and todays level of business and travel sales. I would be surprised if our total sales don’t exceed $1 Billion by this time next year and actually could be substancially more as our company name now seems to have become a house-hold word, for sure in the conventional industry and imagine what effect this war started by John and others,
I’m, sure he won’t take credit for it, But imagine it’s effect on the conventional MLM industry, with it’s huge market. Watch what happens as we begin to LEGALLY move into country after country.
When a company does what we have, I actually can’t take much credit for YTB’s success, though I too,
in 90 days feel I’ve had some, with 15 companies in maybe 10 states and 2 countries, soon. When a company like ours leave the formulation state and goes into the momentum stage. At that point it becomes viral anyway. Imagine using the 2.0 community based model with a business family of 50 mil already in the US add to that the power of what we also call Word of Mouth Marketing, You call MLM.
Why does the industy give out Fam trips, besides training, they like the power of the Travel Rep returning to their friends, relatives and business associates and talking about the trip, the food and the fun. Isn’t that just Word of Mouth Advertising for RCCL. I also expect a huge increase in travel bookings as our sales and marketing force continues training and learning their trade. Remember the same folks training them are now training us, plus our industry trainers, the best in the MLM industry, are also training the masses.
I’d say if I’m half-right, John has started a war his industry cannot afford to lose, but has already lost.
Ten-fifteen years ago, when the conventional insurance industry attacked the MLM company known as AL Williams. That company became even more committed, joined ranks and trained and put 500,000 licensed insurance agents on the streets of America. That company created 1000 millionaires and revolutionized the way insurance was sold forever. Our leaders, also from that company, have a goal of creating 100,000 millioniares in travel. Will we do it?
Stay Tuned.
GB
Earl Allen Boek
Roberts Resorts.Net
530-378-1363
Here is the just of everything sumed up quickly. The internet will become the dominant way that we purchase everything. Am I wrong? Look at the statistics of what it has done in only a few short years? How long have we been walking into stores and buying things? Since the beginning of time right? So why are people upset about the evolution of shopping. Ask a “Real Travel Agent” how he finds the deals and trips he sells. He will tell you he goes online and finds them and sells them to his customers. Where does he get his customers from? The internet I’ll bet. Brick and Morter travel agencies are dead or will be soon. If they were a thriving business to get into you would see them being offered as franchises but you don’t because the business model is dead.
Vinyl record producers claim that music sounds better on wax than on a digital CD. Maybe so, but I can’t burn my records onto my computer and make a compilation album without some sofisticated equipment, I also can’t easily transport them and play them in my car because they would skip and, oh yeah car manufacturers only produce cars with CD players now. How about if I want to go for a jog and listen to my records? Pretty tough to do. So I guess I can complain and whine about the CD industry and attempt to discredit it. Good Luck right? CD’s are here to stay and everyone with common sense accepts it.
In life you have choices. Choices to fight the betterment of man and try to keep him stuck where he is at or you can try to make the world a better place to live. The only thing that YTB is doing is trying to allow ordinary individuals, a chance at an extraordinary life, to take control of their life, to have a chance at “true freedom”. What is wrong with that?
There will be a day very soon where it will be hard to find a single person alive that uses a brick and morter travel agency. Not because they are bad but they simply can’t describe what the consumer can easily go and see for themselves. It simply does not make sense when the internet gives you so many options, pictures, videos, testimonials, so on and so on that allows the individual to choose where he wants to go. He can also quickly book his trip now. He doesn’t have to wait for “you” to call him and tell him the flight is full.
Ask yourself this question. If you owned a car dealership, where is your family (immediate and distant) going to buy their cars from? How about your friends? Will they at least give you a chance at earning their business first? Absolutely. If your car costs five dollars more than your competition are they going to still buy the car? Absolutely! What if the same car is cheaper? No Brainer!
YTB is the same cost or in most cases less expensive.
I hope you get it. If you are a traditional travel agent (brick and mortor), you will soon be unemployed. It may be 5-10 more years but it is coming. You know this to be true, so you attempt to try to get the vendors to save your job or company. The vendors are in the TRAVEL business. They listen to who is selling the most travel and who is having the most growth. Don’t forget that YTB is not the only MLM travel company around they are just the fastest growing with the most revenue and the most reps.
If you like what you do and you don’t want to stop why not tell all of your customers that you have found a new way for them to travel, save money and at the same time they can make money too.A lot of money! Let us be honest when you were a little kid you didn’t dream of becoming a travel agent. It is a means to an ends. If you are 100% honest you will agree that you do it for money. Sure you want your customers to be happy and have a great time and enjoyable travel but if you didn’t make any money doing it you would be doing something else. If you disagree with me, how many times have you given back your entire commission for someones vacation just because you felt like being nice? My guess is never if not never maybe once.
You have a choice. The choice is to fight it and be broke and looking for a new career or join us, help many people become financially independant, which will help them travel the world like they currently dream of and wish they could do.
Is that so bad? Are you so self centered that you can’t see the good that this would do for your clients? Are you going to take your clients family on a vacation when one of the parents jobs gets laid off, downsized, restructured, etc.. and they can’t afford the yearly vacations anymore.
The measure of a man is about what you are doing to help others. That is what defines greatness. The more people that you help will determine how wealthy you become. Let me help you help others to help even more. http://www.enterecomtravel.com
Eddie Holford
503-839-8745
Interesting annalyse;
In France, Multi level marketing (MLM) is forbiden by laws
Guess what !
Claude
FYI - Earl was banned from Tripso due to multiple infractions of the forum rules - both major infractions had to do with comparing the petition against YTB to the Holocaust. The first time he was banned for 24 hours, the second time he was banned for good.
FYI- I have not been banned for good…only for 30 days to my knowlege. I never compared, nor did I mention the word HOLOCAUST, but like Hilter was, some of these folks are masters, at mis-information. They also have chosen a innocent race (YTB & MLM) to attack, in what must be, a last-ditch attempt to get the conventional travel industry people to unite and fight, under one flag and for one purpose. Theirs.
Let it be known..First they came for my industry…I did nothing. Then they attacked my company and I did nothing. Next they attacked me and my why of life…Now they’ve really got a problem.
” I will stop when they bury my horse, me and the tip of my spear.” Otto Markgraf 1600’s My Ancestor,
who helped Mark and Graf and fight to establish a little berg in Europe known as Berlin today.
Right - Thanks for the feedback everyone. Interesting to get more quantity back than I posted originally.
Lets look at the points
1) Creating 100,000 millionaires in travel.
No - this just really isn’t at all possible from my understanding of the figures. Lets look at this from a pre-cost basis (i.e. what it would take to earn one million USD). I am going to exclude MLM fees. This would require each individual to sell $16 million USD of travel products (@ 6% commission - assuming YTB earns 10%, and an individual earns 60% of that 10%). This is a fairly large turnover for an individual…. Even if you do this over 4 years this is a large company for an individual to run - but this excludes 4 years of costs, staff, marketing expenses etc.
Of course, you may be talking about MLM fees. As I dislike that side of the business I have really just looked at what YTB could do if it was not so addicted to the MLM concept. I have also excluded multi level commission fees. More than happy if you would publish an income / cost model that generates a million USD in revenue so I can correct my own understanding.
2) Would I buy from my Mum? (or a friend?)
Maybe, if done right. I might even buy from one of mum’s friends - even if I don’t know that person - if they are part of a network where I can see some form of trusted credibility rating (like how ebay works).
However travel is moving away from a prime concern being transactions - and moving towards more “inspirational” travel support. Can your mum advise what the best hotel in London is? If I could see that someone in my “advisor network” knows about London hotels - I would book from them. However this is not how YTB is structured.
When you buy a car - you buy a known product. When you buy a holiday - part of that transaction is support during the travel phase….. I am not sure I want my mum involved in that….
Any other comments you would like me to respond to?
For all of you travel agents whinning because others are breaking into your biz, I say handle it! It’s not rocket science and you deserve nothing because others can now benefit. I was in IT years before there were even degrees at universities for these occupations. Now anyone can get into it. Now I do have to compete. I handle it. I adapt. I overcome. I’m still in technology making great money even as I reach out to help the newly graduated IT kids become suceessful it there own careers. What I see on this board is what I hated in technology several years ago and that is a bunch of old schoolers crying over privlage. Reach out, share adapt and if your worth your salt, you will succeed. That is how I sleep at night anyway…
Now I have seen it all….. I am “old school”?
“Quit crying” - if you had actually read any of this blog you will see that I don’t really consider myself old school at all (but obviously this is for others to decide). Indeed - I was actually suggesting how YTB could adapt to become legitimate in the minds of the rest of the travel industry. I am trying to remain objective (although beginning to fail)
Oh - and it wasn’t me that said YTB is not legitimate at this moment in time - it was the YTB CEO. The public letter of 12th Oct 2007, from J. Kim Sorensen, CEO of YTB Travel Network Inc.
“We have a firm belief that as our sales increase, the YTB concept will be legitimized.”
As I understand it - this is a future looking statement. It suggests to me that YTB is not legitimate at this moment in time. Others can decide what they want.
….. and yes….. “quit crying”……. you are more than welcome to comment on this blog - however I have a rule and that is you should do so in an open manner. I know you work for YTB as your computer address is from the YTB head office. As you failed to disclose this I will have to on your behalf.
Thanks. Alex
Horray for “Quit Crying”! You are so write. I hear the same thing in my website industry because I use templates that are customizable versus spending more money on a custum site although the naked human eye can’t tell the difference.
Ok Alex lets take it down a big notch and assume that we are going to help 100,000 people earn 200,000 dollars a year. That brings the total revenue to 20 Billion. The travel industry did 7 Trillion last year alone and now that the baby boomers have just entered into the picture what do you think the travel industry will do in the next 10-20 years? I will tell you it will quadruple, minimum. Regardeless, 100,000 people earning 200,000 dollars is more than a reasonable figure. Show me one way that a traditional business can change lives like that.
There is no marketing fees for me to tell everyone that I know about what I am doing and how they can earn the same amount of money, and when they get into business there is no marketing fees for them either, their is no advertising fees or expenses because we only use word of mouth advertising.
To work for yourself means that you have to invest something. Show me one business on the NYSE that was started for zero dollars and doesn’t invest back into the business. Fact is you can’t.
Accept the fact that MLM’s are responsible for more Milti-Millionaires, 500 Thousand dollaraires, 100 Thousand dollaraires etc… than any and all other industries combined. It is not a what if, it is a FACT!
I see now that you don’t understand the purpose or the power of MLM at all. It is not about making one person a multibillionaire and giving a few hundred people a job. The point is to give tens of thousands or hundreds of thousands or millions of people the opportunity to earn as much as they want. The ability to earn their life back. The ability to live a FREE lifestyle and not have to miss anything that they don’t want to miss because they “have to go to work”. I stress HAVE TO.
It is the fairest business in the world no matter who you are, your background, your race, religion, etc.. you all play on the same level playing field, and you all start from the beginning and work your way to the top.
You can’t do that in corporate america there isn’t enough room at the top for anyone except the CEO, and more and more people are starting home based businesses today because the secret is out.
79 Million home based businesses will start this year!
What are you waiting for? Let me help you help others to help some more! http://www.enterecom.com
Eddie Holford
503-839-8745 Anytime.
Alex: I believe the $300,000,000 that we figure is 1/3rd of each of the three main partners that started the company worth, has already convinced J. Kim Sorensen that it is a pretty legitimate, at least in most of our minds. He maybe was speaking in terms of the conventional industry and vendors like RCCI.
Yes, I will be happy to help you with the model. If I can’t find the answer I can ask Andrew Lacky who has 15,000 travel RTA’s under him and his wife, as we speak.
I really am not trying to dominate this thread. Tell me if you think i need to take a break…
Guys. Keep going. But please keep it short. My readers like well written, snappy, concepts that address the questions put - not pages and pages of text. You can always followup later if you think of something else to say.
Its not me you have to convince. Yes I do understand MLM. I am trying to ignore it because it works on the economic principle of the “bubble effect” (just as conventional software sales do - which is another subject I know a bit about). Hence I have focussed on what would make YTB a successful network marketing company selling travel but without having to rely on MLM fees. Hence my original suggestion of a facebook application - or indeed the “travel advisor network” mentioned in my last reply. These use “network effect” systems to do pretty much what MLM does - but without causing all the anxiety that MLM seems to with others. Travel agents would still worry about you - but at least you are would be trading in a non bubble manner. You would also be able to build a sustainable income - not one based on bubble economics.
OK - here is a question - rather than your next reply being about numbers (which I am not interested in really) - tell me how you are using your websites to attract new customers and customer bookings. Have you had any success in getting your friends and family to book with you? I advise companies on how to drive more online travel sales (rather than to offline travel agents) and would be genuinely interested to know how you are getting on.
This is your opportunity to demonstrate that you are more about product sales than MLM fees.
Every successful business operates on the “bubble” effect. Electricity, Running Water, Telephone, Cell Phones, Cars, etc. Why do you think they brought back the restyled Ford Mustang a few years ago? Have you noticed that all muscle cars of the past are now being reintroduced. It is because the buyers of the original design in the sixtees are now at an age where they are retiring and they want and need to relive their youth years again. They have no more use for the mini van because the kids are grown and out of the house.
What makes any for profit company successful is results. Results are based on numbers. Numbers are what it takes to get a sale. If you disregard the numbers then you don’t understand the basic principles of marketing. You can’t disregard the most key elements in the equation and then wonder why it doesn’t equate!
The costs associated with YTB are not FEES! They are hard costs or business expenses. Every business has expenses. YTB has invested millions into the business and they allow you to use their millions of dollars worth of hardware, employees, offices, etc.. for mere pennies.
Driving traffic to each individuals website is not rocket science. How does every other small business drive traffic? Word of mouth, pay per clicks, blogs, craigslist, myspace, facebook, business card, flyers, etc..
I don’t know and have not heard of one person who ever got paid from facebook, myspace or craigslist.
Lastly, why would my family and friends buy from someone else versus me when the products we are selling are the same and less expensive? They simply won’t. It doesn’t make sense to.
Would you like to cash in the fastest growing business opportunity in the world? One that promotes fun and excitement. One that has no limits on how much you can EARN! If so then please call me. Let me help you help others! http://www.enterecomtravel.com
Eddie Holford
503-839-8745
Eddie - OK - do all your friends and family buy travel from you? Or not?
If not, what percentage of their travel do they book from you?
Alex: Just want to say. Your overview and review of our business model has been, and continues to be very even-handed. Having see how others can operate makes me appreciate it even more.
You deserve an answer and Eddie, on of my associates is very able, as you can see to defend his position, so I will speak for myself.
I am a marketer first. Does not matter, if I believe in it, I can market it. There are two great business opportunities attached to the YTB business model. We can book travel, we can recruit and book travel or we can recruit. When you recruit only, at least starting out, you are said to be building your business from the top down, sooner or later your new recruits also become your new customers. When you just show and teach others how to use the travel booking site, mum, dad and the rest, you are selling travel first, then looking for business builders, out of that lot.
Because I know Eddie and I are both marketers first, with shorter stents in the company than some, I’ve asked Mr. Doug Bauknight and his wife Ronda to join the conversation, if you don’t mind and answer your question. He does a great travel blog himself and you can see his review on the conventional travel industry and what they have done to YTB. You can see more info at hope that’s right. The Baulnight’s have been in our YTB family for over a year at least and I think you’ll enjoy the addition. You can expect them on within the hours. Best Al Boek, Roberts Resorts
OH MY GOD…Wait until you hear what RCCI has pulled on the convential travel industry and YTB. I’ll let Doug or Alex explain it. First the airlines did it to em…Now their new best friend. Can’t say we didn’t warn you.
Al Boek
Roberts Resorts
530-378-1363
Alex;
To answer your question, yes, most of the travel booked by my family is through me. How do I ensure this?
I don’t pick them up at the airport if they book with someone else. (Whatever works right?)
In addition I have neighbors, fellow church members, former Co-Workers, and other friends who at least give me a shot at the business. If I can be competitive, I’ll get it. If I’m not, which really only happens on air, I’ll tell them to book the lower fair.
Nobody knows anyone at Travelocity, Orbitz, Expedia, but they do know me. All they want is a supplier they can trust, and a price that is competitive.
To address Earls comment above: While Royal Caribbean is sending termination letters to “Card Mills”, “Host Agencies”, or any other company RCCL deems inappropriate, they have a VESTED interest in other home based business networks.
I found a “Job Posting” dated October 20th which states: “Royal Caribbean MAGIC Johnson Travel Group L.P. - Magic Johnson Travel Group is the first home-based travel agent franchise network specifically targeting multicultural franchisees and customers. We strive to cultivate organic growth in the minority travel segment and empower entrepreneurs and new travelers across America. Although we are focused on reaching out to the African American, Hispanic American and Asian American communities as new sellers and buyers of home-based travel, everyone is more than welcome to become a part of this unique business opportunity.”
Candidates will also have an opportunity to “speak to individuals and groups on behalf of customers to stimulate interest in franchise ownership.”
It lists the Royal Caribbean company address and phone number for contact information.
Wonder if all these “Petitioning Agents” saw THIS coming?
I’ve worked really hard to help everyone understand just how outrageous this situation really is. If you’d like to learn a few more “tid-bits” about what I’ve dug up concerning Petitioning Agents, Associations who claim to support them, and RCCL, simply click on my name to go to my Blog.
It’s all there, links with documentation, quotes, numbers, the works.
Alex, you will find other posts concerning my Travel Experience on this Blog as well. At the present time however, how I book the tons of travel I do seems mute compared to what RCCL is doing right now.
Warm Regards Everyone!
The travel agents complaint in a nutshell:
- travel agents are given perks from suppliers for selling travel, most suppliers require a IATAN or CLIA ID card for these perks
- for an agent to earn his IATAN card, he needs to earn $5,000 in commission per year (thats $40k-$50k in sales)
- CLIA only requires a yearly fee and a training course, this may be changed to include sales levels soon
- the YTB card has the YTB IATAN number on it, and looks like the real IATAN card
- YTB agents are promised that they can “travel at true discounted travel agent rates” and “enjoy exclusive trips and resort stays at exotic places” - many sign into YTB just for these perks; the figures from the SEC filings show that most are earning very little commission per month from travel
- many travel agent shows and FAM trips have many YTB agents flaunting this by wearing shirts that say “I traveled here for free - what about you?”
- RCCL (Royal Caribbean/Celebrity/Azamara Cruises) has just implemented a no-sell policy against YTB; other suppliers are following suit
- these suppliers are also tightening the availability of reduced price FAM trips to agents who can prove that they have earned them
I have no problem with the MLM model, for some its the right thing to do. However, don’t join YTB expecting to travel for free or at TA rates - the suppliers have caught on and will be making this much more difficult in the near future - you will need to earn your FAM trips just like the rest of the travel industry.
Joe said:
- “the YTB card has the YTB IATAN number on it, and looks like the real IATAN card”
While the YTB card does have our IATAN number on it, it certainly doesn’t even remotely resemble the look of a “real” IATAN.
Joe Said:
-“RCCL (Royal Caribbean/Celebrity/Azamara Cruises) has just implemented a no-sell policy against YTB; other suppliers are following suit”
Other suppliers? Who? And why did RCCL can a bona fide “Host Agency” as well? (Joystar) All the while promoting the Magic Johnson Home Based Business opportunity? I would also strongly disagree that any other supplier is stupid enough to throw $13 Million in bookings away. (Add Joystar and that’s $23 Million in bookings.)
Joe Said:
- “these suppliers are also tightening the availability of reduced price FAM trips to agents who can prove that they have earned them”
And I 100% agree with this policy. You do realize that anyone wanting a FAM with Royal Caribbean inside YTB was required to prove they had first sold 4 Full paying cabins with Royal before granted a FAM. Correct? This was mandated by Royal Caribbean and YTB regulated by requiring RTA’s to go through the Home Office for the last two years. We had to provide verification and documentation that each Agent did in fact sell the minimum number required before even contacting RCCL.
I also agree with Joe that a better solution to their “problem” is helping suppliers create “incentives” for FAM trips. (Much like Sandals does now.) If you produce a certain number of bookings, we’ll “treat you”.
The RCCL/Magic Johnson deal is old news. They have been an investor for over a year along with Gogo Worldwide Vacations. To my knowledge, it is more of a franchise in that there is a substantial investment and vetting out process to join. $5000 is the initial cost.
RCCL and Gogo have felt that the minority market was underserved and invested in the company in big ways apparently. I imagine that they are looking for a team to handle the account just as Carnival has a BDM to handle the YTB account. Did they announce a commission cut or other “demotion” to the agencies with which they do do business?
I see this as a method of going after business that they were not getting. While I do not agree with it, others do it as well. The airlines have always courted large corporate accounts, and Carnival for the past three years has also sent word to their BDMs that they should be soliciting direct group business.
Is this a shift to direct to consumer sales? Perhaps. That time will come eventually and then all agencies (virtual, brick and mortar, or home based) will all need to rethink their plan.
Other suppliers include Perillo Tours, and Tauck is rumored next to announce this. Starwood is moving in this direction also with a few emails they have just sent.
Joystar has a history of near-MLM practices, they continue today with their Enterprise program that borders on it still. They have agents that have websites promoting free travel perks if they join their Enterprise team.
Re FAM trip requirements - you are saying that I could sell a 4 night cruise on RCCL, 2 adults per cabin, in September, for $712 per cabin x 4 cabins = $2,848, commission of $44 per cabin x 4 cabins = $176 in commission. I assume that RCCL is then accepting either the YTB card or the CLIA ID card as identification.
This is what I see changing in the industry - across all suppliers - a more consistent method of identifying those who are serious about being a seller of travel - not just those who will be finding 4 friends to book a cruise so that they can get a FAM trip each year.
I believe that most suppliers are going to be moving more towards the IATAN limits of $5000 per year in commission to be eligible to get a card - and thus be eligible for a FAM trip - not earning $176 in commission.
As far as a shift towards direct to consumer sales - its already happening - and has been for years - and professional travel agents are already “rethinking their plan” by charging fees - and doing very well - as many consumers will pay for the services of a travel professional.
How will YTB adapt if the travel industry moves to direct to consumer sales?
I also just read that YTB charges for a fee(business expense) for supplier brochures?
Did you know that most travel agents get these for free, direct from the suppliers?
I am thinking that the issue is not so much FAM trips per se. They can and do restrict them and they should. It is the discounted travel. Agent rates, etc. I have heard that agents can (confirmed 30 days out based on availability) cruise for $25 a day on most cruise lines. This is a legitimate perk. No it is not a FAM, but it does give the agent first hand experience and a “reward” of sorts for selling the product.
This is the area that I suspect suppliers will tighten up. Again, if someone only sells one or two travel vacations to his immediate family in a year, does that entitle him to travel at the discounted rate?
Alex, I apologize, my rant was not pointed at you personally. I was researching YTB as a company and was a little upset by the pointed comments coming from the Travel industry professionals were unfounded.
I did do this with an assumed level of annonyminity. I’m not sure that outing/disclosing my web address was necessary. I guess SOX is not a concern of yours. Next time just post my email address.
I guess this isnt an opinion blog like I assumed. It looks like you simply want opinions that fit into a certain criteria. I admit that I know nothing about the travel industry as a whole. I will not visit this sight in the future. Sorry for this misunderstanding.
Joe/John and others:
Based on curent growth trends and market conditions. Expect the company size to double in next 6 months or so.
Our classified ad might look like this, though the conventional travel industry has assured we won’t really have to adverise the facts. I’m being told vendors are sitting and linning up in our waiting room at our international headquarters in St.Louis.
There will always be more strength in numers. Our buying power as a company with 250,000 reps which I fully expect within 6 months or so, assures us the proper respect by the vendors.
Vendors Wanted. Highly successful homebased international travel marketing company now numbering
250,000 requires ëxclusive travel packages for their RTA’s and their 5 million or so friends, relatives, church and club members, and business associates. Please contact our YTB’s St. Louis offices.
Joe: YTB does not have nor sell vendor brochures. They have their own marketing brochures and their own “Fun & Travel” magazine which they sell to RTAs/Reps upon request. Vendor brochures are provided by the individual vendors.
John,
“This (discounted travel) is the area that I suspect suppliers will tighten up. Again, if someone only sells one or two travel vacations to his immediate family in a year, does that entitle him to travel at the discounted rate?”
Precisely - and that is the point of the petition listed above: “The MLM model is in the business of selling credentials with a minimum of any professional commitment or training. These programs simply abuse any vendor incentives.”
The agent community is asking suppliers to help us to police our own industry, and to tighten the rules, for the betterment of the profession.
After reading again this post and comments, I am very happy that MLM is forbiden in France (for all kind of industry)
I think it’s about the same for Europe laws.
Regards from France
Claude
Ok I’m going to explain why every travel supplier is looking for a company like YTB to partner with. I will start this by asking you a few simple questions.
Who is the largest affiliate supplier of business sales for Barnes and Noble and Circuit City?
Who is a major supplier of new business for MBNA, Roadway Express, Sara Lee and more?
What company took an energy drink company from 2 million to 51 million in sales in one year, becoming the second leading energy drink company in north america with no advertising?
What company has affiliate relationships with over 100 National Brands of products that you buy everyday?
The answer is QUIXTAR.COM (Amway)
Why do these companies have relationships with this MLM company? More importantly why are more and more companies attempting to have relationships with Quixtar.com? Because of the loyalty of the IBO’s to buy and sell their products!
Understanding marketing is a key fundamental to being able to see what is going to happen before it happens. In order to take advantage and get in front of the trends of business. Take the pieces of the puzzle and put them together to see the whole picture. You will then be able to see where the world is going and more importantly what you should be doing to take advantage of what is coming.
You will in the next 10 years have close to one million people or more, around the world selling YTB and YTB Travel. Who do you think these major suppliers will want to do business with and have relationships with?
Understand that those one million people have an average of 75 phone numbers saved in their cell phone. They each have hundreds of email addresses each. Imagine what would happen if a travel supplier ran a special for “Ticket anywhere in the US $99.00. Must buy the ticket today and have your flight completed within 30 days.” This is why it is inevitable that vendors will beg to do business with YTB.
Alex not only does my friends and family purchase travel through me they also watch the movies I suggest, and eat at the restaurants that I recommend. You can check my stats above by going to http://www.thisbiznow.com . You can let me help you find other trends by going to www.enteryourbiz.com .
Eddie, I appreciate your viewpoint, however, traditional marketing doesn’t always apply to a service oriented business like travel. Traditional marketing concepts will get you many of the price shoppers - but many people wanting to travel are looking for much more than the lowest price.
There is an intangible quality to the travel buying experience that is different than buying a book or dvd player.
Is QUIXTAR.COM the affiliate for any service oriented businesses?
You must be nieve to think that expedia, travelocity, priceline and the such don’t make a difference in the travel industry, there is no dedicated agent at any of these companies who has a personal vested interest in making sure your travel experience is great. YTB does.
You can also continue to be nieve and think that people aren’t comparing prices. FACT is most (90%) of liesure travelers are. I would guess that everytime you buy anything the question always comes up as to how much it costs. No matter what your financial status is and no matter what you are purchasing.
Still today the most powerful form of advertising globally is word of mouth.
You really need to do some research into marketing and buying trends not just of this country but of the global marketplace. Travel is a retail product that advertises the exact same way as every other business. Hence, “what happens in vegas stays in vegas” This ad runs on TV, Radio, and Print advertising campaigns for millions of dollars a month. Who do you think paid for those ads? It wasn’t the city of Las Vegas or the State of Nevada. They don’t advertise price they advertise having fun. When you are sold on having fun you will then ask what is the price. You will then price compare. With YTB you take the lowest price objection out of the equation because it is your own business.
As far as business travel goes almost all business travel is based on price. That is why corporate travel is so much less expensive than basic one customer travel. Businesses are looking to save money because it increases profits.
You are simply guessing at what you think or want it to be. If you want to see what the true market research data says you can go to the world leader and pay a few thousand dollars like I have to get the facts across all platforms. Or you can continue to guess.
http://www.enteryourbiz.com
Yes Quixtar has many service based affiliations, one is a travel company. And for that company Quixtar is one of their leading suppliers of business.
Thanks everyone for the interesting conversation. Happy to stay on the sidelines until it gets to name calling - so if we can have less of that I would be happier. I believe in “light touch” moderation with a sprinkle of “being a host”…. but I also believe in open discussion with all credentials at the table - hence me exposing “quit crying” as coming from YTB.
Regarding business travel - corporate travel can sometimes be more expensive than consumer travel…. because businesses tend to book on flexible rates with no cancellation or modification charges (because business trips tend to change quite often at the last minute - so need to get their money back if they cancel a hotel or flight). Consumer travel can sometimes be dominated, price wise, by “merchant model” rates - meaning 100% upfront payment, no cancellation rebate.
Eddie,
I’m interested to hear your marketing take on the question I posed above: “How will YTB adapt if the travel industry moves to direct to consumer sales?” In other words, stops paying commission to agents?
The airlines did it, some hotel chains have done it, Carnival and RCCL stopped paying commission on the airfare components of their packages just recently.
Many agents saw it coming and began charging fees - and are actually making more money than before, myself included.
Mike Hagen here looks like my leaders Al Boek a 30 year veteran. A stud of a Networking Marketer.
And a great business man. And a Millionaire 2x over. With no agenda, other than to protect free enterprise, the american dream, and Network Marketing.
Then there is Ed Holford. Edward is a great internet marketer, entrepuenuer, and a visionary.
Ed has not an agenda 1 other than to fight against those who want to talk cheap about a great company, YTB. Thanks Eddie for your detication to you and your team.
Mike Hagen has been a 17 year full-time veteran in the Network Marketing Industry.
From 24 years of age until 37 Mike Hagen built a traditional 4 million $ Print & Design firm.
After many years of working 16 hour days, I found the Industry of a life-time (Network Marketing).
WHY: It allowed me to replace a $320,000 annual income in 6 years.
YTB is such a great solution for 100,s of thousands. Why, because they can enjoy Travel, Save Money, take vacations that they would normally not be able to afford! And get paid 60% to take a vacation (Hello) It just makes sense.
NOW ad the Greatest Rep Referral compensation plan designed ever in this Industry. YTB’s Comp Plan is by far the greatest paying in the History of Network Marketing in 55 years…Period!
I would know I have worked them all. With YTB you get PAID big money NOW, not after you build a big organization. This allows those that are serious to go full-time, while they continue on building there fortune. Now stick a fork in that! You can’t poke a whole in this Comp Plan nor YTB!
FREE ENTERPRISE, some want to try and take travel away from company’s like ours, sorry it is impossible…You put a additional $600.00 a month in the budget of the average american household, and give them 60% on there persoanl travel. SORRY but they are lifers.
Thanks
Mike Hagen
www.Yourtravelpresentation.com
Quote: As far as business travel goes almost all business travel is based on price. That is why corporate travel is so much less expensive than basic one customer travel. Businesses are looking to save money because it increases profits.
Corporate travel is far LESS sensitive to price than leisure travel. Most corporate travelers travel on fully refundable tickets.
Mike Hagen…37-24 = 13 (Mike Hagen has 13 years. I know semantics, but we might as well be accurate)
What I have found is that those on the top of their game in the MLM world talk a good talk. Mike, you made some pretty strong arguments. One question that burns in my mind is do you actually know what you state for fact? Or is this what you were told? Have you met Al Boke and Ed Holford?
I am not doubting the stories, but from what I gather, everyone is spewing forth all sorts of numbers and they are so very different. Sort of like that game in grade school–whisper down the lane. By the time the original message gets to the end it is totally convoluted and out of whack!
John: Mike Hagen is very busy and may not have gotten back to see your question. So If you don’t mind.
We are all part of a very sharp group of marketers, thanks Mike for the kind words. We are a team.
Now these positions and figures are changing daily….but at last count and this is in the order of joining YTB.
By the way, Mike is not going to tell you. He built a company to 18,500. It’s name has already been mentioned above. Then he sold that company for $1.3 mil and he and I agree that we have never, ever in the history of Network, Word Of Mouth marketing, seen a company like YTB…Or a Pay-Plan like YTB>
Not ever. Between us above I guess we have over 100 years background. Our company owners between all three, about the same.
2.5 years Andrew Lakey 15,000 nationwide RTA’s
1.2 years Ryan Vanderpool 3,000 nationwide
6 months Mike Hagen 500 nationwide
4 months Seth Kuhoa 30 nationwide
3 months Al Boek 15 nationwide
1 month Eddi Holford 3 nationwide
See any trend here?
WARNING….DINOSAUR TRAVEL AGENTS…You know who you are. Ok you and your leaders fired the first
shot. You think YOU are the sleeping gaints, that just woke up. Will that works both ways. We challenge you to a contest, WELL I DO…Lets see how many Cruises you can book on RCCI and how many we can book on Carnival Cruise Lines…by the tenth of November….on your mark….get set…GO!!!
Coach has called the play…27-34-DEEP-six-Dinosaur…GO GO GO hike
Earl,
Maybe you could clarify something for me. You mention how many RTA’s each person has. What would mean more to me is the amount of travel that each person and their team has sold, ie:
Andrew Lakey 15,000 RTA’s - $x of travel sold
Al Boek 15 RTA’s - $x of travel sold
No need to give precise amounts - a decent range will do.
Here’s mine
Joe - 0 RTA’s - $350k-$450k sold in 2007 so far.
I cannot speak for Andrew….but it’s in the millions….I will try to invite him here next. Joe those are great numbers….now imagine you had another thousand or so reps in two countries. You would have
the time to go on the cruise I’m taking on Carnival Cruise Lines, first of next year. I look forward to meeting you.
I earned, verifible more last year in real estate foreclosures and distressed properties. Why am I messing with this Ding-Dong-Deal?
Let me address Joe first. I guess I have to educate some more. When a company is partnered with a network marketing company as a supplier of customers they don’t pay commissions until they are paid. What does that mean? It’s the same for you as an independant correct?
Traditionally how much would it cost a company to reach 1,000,000 POTENTIAL CUSTOMERS with traditional advertising? Millions of dollars correct? It takes a potential customer viewing your name and message on average 7 times before they act on your advertisment. So I hope we can agree that traditional advertising is very expensive with no guarantees that they will ever make a PROFIT from the actual ad campaigns.
Now for network marketing. How much would it cost for this same company to reach the same number of potential customers with a network marketing company? 0 (ZERO Dollars). How? A company wide email that goes out to all YTB agents. Let’s assume that it is a great price on a cruise, it is sent to all of YTB agents (100,000 total), Each of YTB’s agents then send this email and information to everyone in each of their address books. How many have we reached? Many more than a million and the cost to the company is NOTHING!
Now reps and their customers are booking trips for nothing so what is the difference?
When you partner your business with a network marketing company, not only do you get a loyal customer base of hundreds of thousands or millions of people, but you also get a loyal advertiser department of millions of people for your company at no cost to you.
Which makes more sense? Especially when you are dealing with a company like YTB who is going to go global in the next few years. For each rep that sends the email it will allow everyone to book the trip right there on their personal state of the art website. So you don’t have to worry about you not getting paid for sending the email.
It is easier to get someone you know to buy the same product from you than it is to get them to buy from the manufacturer or a vendor that they don’t know.
FACT: You alone can’t reach as many people as YTB can. I don’t believe that your entire North American industry can reach as many (qualified) potential customers as YTB can. Qualified, is people who do NOT use expedia, travelocity, etc. but still use a brick and mortor agency.
Finally if I ever come across one of your customers and I ask them if they would like to travel at discounted prices all over the world. What do you think they will say? Of course it is “How?” I will then show them how and if they have any common sense they will never use you again. FACT! Join me now and you can make more money than you ever thought you could. FACT!!!! www.EnterYourBiz.com . Have you even looked at our comp plan? Do it now if you haven’t. http://www.EnterEcomTravel.com .
Joe, How much money did you make of that number. Most importantly how much time did you invest to make it. I made half of your small number with all of my other networking opportunites and I do it in about 15-20 hours per week and the funny thing you probably don’t understand is that if I stopped working my businesses today, my income would still go up every month. That is what makes this make sense.
My daughters grandchild will never want for anything because I have built something that can only continue to grow. When I stop working, my businesses still grow. The only way to become free from a job or a business is for your money to make money for you or for you to leverage yourself off of the efforts of others. It is nice to wake up and have made money while you were asleep.
You have some great questions but what are you afraid of? It sounds like you have an interest in looking at the opportunity or an opportunity of some sort. So why don’t you call me and I can tell you everything I know. 503-839-8745. http://www.enteryourbiz.com
John…I’m not ducking your question either. I have had a few clicks on my travel engines and I know someone recently attempted to put a trip together there. I don’t think I got the business because we, like you, are not that competitive on airfair, unless you book with someone like Pleasant Holidays, who owns their own airlines seats, on planes to Hawaii for instance.
However, I believe that is about to change. I expect big news tonight on the national sales call with Carnival. I may have to change my focus, from building businesses to booking travel until we prove a point.
Stay tuned…Goggle…Travel War. Like I said, this would be, when I read MSNBC’s travel columnist. You just called out some big hitters John Frenaye Jr. Now we never said you were a bunch of chumps, but this is not slap-the-YTB-punks-around-tme, either. Our illegal, scam, pyramid, card mill is about to out sell your entire conventional travel nation all put together. Talk is cheap…gotta go.
GB
Al Boek
530-378-1363
Eddie,
Thanks for the great education! I appreciate the time and effort that you take in trying to educate and recruit me. I have first hand experience with network marketing, and it doesn’t fit my style.
I prove many of your facts wrong everyday, in my 2 very successful (non-network marketing) internet businesses. I have clients from around the globe - and make money while I sleep. Many clients even pay me a fee for booking their travel.
Just because we are not YTB “travel agents” doesn’t mean we are necessarily dinosaur brick and mortar agents or agencies. Many of us have multiple web sites, email lists, auto responders, data mining tools, work with virtual teams, and have very successful businesses.
My travel agency is my second business, I work it about 10-15 hours per week, I do have some outside agents that book their travel with me, but their portion is not reflected in the numbers I shared. I make between 10% and 16% commission of that number, depending on the supplier.
My projected travel business for 2008 is almost triple what I shared with you.
Between my main business and the travel business, and my real estate investments, my children and my grandchildren will not be wanting for anything.
I can say that I did it all myself, with no dependency on a downline - and that makes me sleep very well at night.
I’m even toying with franchising my main business. A good franchise will live on after I am long gone.
My guides? http://www.marketingtips.com and http://www.bookyourselfsolid.com
I wish you and YTB good luck in the future of travel, however it turns out. It should make for an interesting ride.
-Joe
Thanks Joe…It’s been a pleasure.
Al Boek
Interesting new blog
http://notravelmlms.blogspot.com/
I’d like to thank you too John. Also mention your great MLM attack site. The conventional travel industry, I hope, is paying you big bucks to slam our way of life, industry and YTB Travel. Maybe you feel your reward will come in heaven. One thing I can tell you for sure. I still know very little about travel bookings
but my sister in Washington State, also in YTB has had formal Travel training and saw this in a couple of
hours. She just sent me an e-mail that friends booked several holiday trips on her new travel sites.
I guess while you and I were sparing she was booking. That’s how it works.
I’ve enjoyed and learned a lot about you and the industry from the exchanges. I truly feel you and others
are misguided about our other industry, Relationship Marketing. Alex, I think would like to see a community based travel company and I say that is real close to what we are already. Do I mind investing $500 in a real business opportunity with real product that I believe in. No way. Next week I will begin booking my first Carnival Cruises. I plan to organize a marketing trip with my new associates. Look forward one day to meeting you in person. I mean that, Wishing you and yours and all here, on Tripso, Alex thanks again. Eddie thanks for all you contributed here. I’m honored to be working with you. Special thanks to Doug Baulknight who I actually never met before, He lives in Atlanta and runs his YTB and Travel Blogs from there. Nice to be able to call on him and have him show even though. But that’s what I expect from my YTB family members. They have never let me down.
Happy early holidays and hope to see you all on the beaches of the world. Alex…have you checked out Kango yet?
Al Boek
Roberts Resorts
http://RobertsResorts.Net
Joe great stuff you will do 2 million in sales in 2008. Not a bad showing. YTB will probably do in excess of 2 billion or more. Who will get the best deals?
Every business has churn but one thing is for sure that the owners of every business no matter the business will always buy from his/her own store. Hence no churn with YTB.
When one of your customers comes across YTB and he most certainly will sooner or later, he sees he doesn’t have to pay fees for the exact same trip and that he can get it cheaper through YTB. You don’t have to be a rocket scientist to figure out where he will purchase his next trip. Now add in the fact that his grandson is now selling the trips and it is pretty obvious that you now have to go replace another customer.
The neat thing about YTB is that there is no replacing customers it is only adding to the ones you have. Even if I decided to not be a rep with YTB I would still buy my travel through Earl simply because of the price and relationship.
You may have a click and order internet agency and that is better than just a brick and morter but you are still limited. And you are only as good as your last customer sale.
I am happy for you that you have success and that your children will never want for anything, if only you understood the greatness that comes when you can help 20 other families have the same thing and those 20 help even more. I understand the “I got mine you get yours mentality” it plagues many social economic societies.
I consider it a waste of talent. If you can do it yourself the only way you will be able to keep it is if you give it away and share it.
That is straight from God not me. But, that’s a whole different conversation.
Best of luck and if you would like to see your existing businesses market and sell better check out my products at http://www.myvideotalk.net/88086
Eddie Holford
503-839-8745
Eddie,
I find it sad that you just can’t congratulate me in my success (like Mr Boek did) and then just let it go.
Instead, you need to put me down and judge me, in every statement you made, and then to end it all - try and get me to join your down line! Not the best sales method, Eddie.
Thanks for reinforcing my feelings about YTB.
Alex, I’ve share enough information in this post - I hope you have learned a lot from it!
Thanks Joe, John, Eddie and Earl and assorted others
Guys…. would you mind if we close this discussion now? I think we have all view points fairly well put.
More than happy to do a MLM post in the future….. when we can revisit all of this again.
Cheers. Alex