Sep 1, 2009

Doug's Challenge

Over on "Just Picture It Now" Doug has been issuing this challenge:

Provide me documentation of just one Host, one Agency, one single Brick and Mortar that:
  • Offers 80%-100% commission contracts.
  • Pays cash bonuses of up to $10K when you hit performance levels for travel commissions earned.
  • AND completely covers the cost of your Medical Insurance and provides a $150,000 Life Insurance policy.
  • Oh, and you need to give me that “hat trick” for less than $500 start up and $49.95 per monthly overhead.
YTB has offered medical benefits and life insurance to Directors for years without challenge because YTB has a successful legal stance to ensure that we can and will be offering these benefits to any Traditional Travel Agent who is smart enough to break free of the cult like thinking and mentality. Furthermore, the response does not answer the possibility of 100% commission, and our incredibly low start up cost and monthly fees.

I'd like to discuss some aspects of this offer.

  1. He has combined the various business of YTB into 1 again, which I believe is a violation of the consent decree with California. Directors of YTB earn that distinction by selling travel websites (i.e. recruiting), not by selling travel. True Host Agencies simply don't work that way. So, we need to throw the medical insurance and life insurance part of this challenge out the window.
  2. I am not familiar with the $10K bonus for travel commissions earned. How much do you have to earn in travel commissions before you get this bonus? I'd be willing to be that I could negotiate with most Host Agencies in advance that if I earn $100K in commissions under their 80/20 split, that I would get a $10K bonus.

So, to keep it just related to travel, there are several that will give you an 80% split on commissions, with no start up fees, no monthly fees, no yearly fees, no transaction fees, and still give you a consumer website by which clients can book their own travel. There are Host Agencies with 100% options, but those do have fees. Since I don't know what YTB's fees are for that option, I am not in a position to compare.

If Doug is willing to just compare the Travel Business to Host Agencies, then I am prepared to offer answers to his challenge. If he continues to mix apples and oranges by combining the multiple YTB businesses into one, then quite simply he has successfully proven that the businesses really are not separate, but a single entity.



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