iHop On Over To a YTB Presentation

History has a funny way of repeating itself. YTB is now offering weekly presentations at your local iHop.  If anyone is near Salinas, CA (Jerry Brown, are you listening?) why not go over and see what they have to say. I imagine the tips for the waitstaff are fantastic--what with all the millionaires YTB has produced!

Title:		YTB Presentation - Salinas - Ed & John
Date:		Tuesday November 23, 2010
Time:		6:30 pm - 8:00 pm
Repeats:		This event repeats every week.
Location:		IHOP Restaurant 1075 N. Davis Road Salinas, CA 93907
Notes:		YTB Presentations in Salinas Ed Calucag/John Lawson presenter

Stock Watch

Now that YTB is trading on the Amex Pink Sheets, I thought it might be interesting to look at the trend over a few years:

 

While some are touting that YTB is back on the way to the top, this chart says otherwise. While some will say that Jerry Brown did not stop YTB, this chart seems to indicate otherwise.

In three plus years, YTB has only trended up for a handful of weeks, and those were likely created. 

If an RTA was to have invested the average annual income ($134) earned from YTB back in August of 2007, that $134 would be worth $1.98 right now!  $1.98! That is not even enough money to buy a Christmas card and mail it to YTB thanking them for the opportunity.

YTB Celebrates Pink In November As Stock Slides To Three Cents

While the rest of the world was wearing pink in October to support breast cancer research, YTB is sporting pink in November.

While only a few years ago, YTB was predicting that they would be trading on the American Stock Exchange and they found themselves relegated tot he OTC boards. Well it looks like another downgrade happened last week pushing them into the Pink Sheets once again!  It appears that Wall Street has no confidence in them.

It seems that once the downgrade happened, a lot of shares were sold and the stock plummeted to 3.7 cents a share. Here is what Wikipedia has to say about Pink Sheets:

The Pink Sheets is not a stock exchange. To be quoted in the Pink Sheets, companies do not need to fulfill any requirements (e.g. filing financial statements with the SEC). With the exception of foreign issuers, mostly represented by ADRs, the companies quoted in the Pink Sheets tend to be closely held, extremely small, thinly traded, or bankrupt. Most do not meet the minimum U.S. listing requirements for trading on a stock exchange such as the New York Stock Exchange. Many of these companies do not file periodic reports or audited financial statements with the SEC, making it very difficult for investors to find reliable, unbiased information about those companies.

For these reasons the SEC views companies listed on Pink Sheets as "among the most risky investments"[2] and advises potential investors to heavily research the companies in which they plan to invest.

So, I guess, we can expect the good information provided by the SEC requirements to dry up since the SEC does not require any filings due tot the risk involved.

The new symbol for YTB is now YTBLA.PK

Are The Chickens Coming Home To Roost?

We all know that TV Wilson, PJ Jensen and Camaron Corr were paid to come back to YTB and recruit for the second incarnation.

Last week, YTB announced that former CEO Andy Cauthen was coming back--but Andy was quick to make the correction that he is consulting with ZamZuu University with Coach and Chris Cokely and that ZamZuu University is not affiliated with YTB or ZamZuu in any legal or corporate manner. Interesting, so YTB gets none of the money that Coach and Chris Cokely collect for "training".

But this afternoon, YTB filed an 8-K about the sale of one of their properties and furniture.  Of course there are stipulations as with any real estate contract, but what was interesting was that the person who attested the signatures on the documents was Andrew Clagg.  If you will recall, John Clagg was the CFO and he resigned just before he had to sign off on an annual SEC filing. One of Ted Lindauer's issues with YTB was that they had hired Joan Clagg, John's wife as legal counsel even though she did not have a law degree.  So one wonders who this Andrew Clagg is? Yet another insider?

Just interesting stuff!

Return Of The Card Mill

It seems YTB is once again producing "Travel Agent ID Cards".  From an email that was sent out:

We have great news for you! The Travel Agent ID Cards are ready to be created but we need your help. Please email a current color photo (2 x 2 passport size preferably) to kstone@ytbtravel.com. The photo must clearly show you from the neck up with no interference from other objects, people, etc. Please also include your ID number and the name on your account.

These are obviously just cards to identify yourself as being with YTB (similar to the identification Hester Prynne once had) and not any sort of "Travel Agent ID" card since YTB is unable to obtain the more legitimate IATA card and they discourage members (at all costs) to NOT get their own CLIA membership.

But I wonder how they are marketing this magical card since many seem to be all excited about it? Are they promising perks like they did before? Just show it to a gate agent and they will put you in first class. Display it to a hotel clerk and you will be upgraded to a suite. Disney will let you in for FREE if you just show them your YTB card.

The more things change, the more they stay the same!

Some 10Q Observations

The 10Q is very similar to the 10Qs of the past--showing a significant loss, but here are a few items taken from the document.

• From December 2009 through September 30, 2010, shareholder equity dropped 18.5%. While the number is not terribly significant, it is odd that for a company that launched a new business model in January and has been claiming tremendous success in recruiting, that this number is not closer to or above zero.
• Comparing this period to the same period last year, the net revenues are down 46%. The bottom line (net loss or income) went from a $362K income in the 3rd quarter of 2009 to a $739K loss in the third quarter of 2010.
• Comparing the nine month period ending September 30th, the net revenue dropped even more to 56.8%.  The bottom line (net loss or income) went from a $3,140,000 loss in 2009 to a $1,642,000 loss in 2010. However, of the 2009 loss, $3,078,000 was attributed to the discontinued operations of Rezconnect.  When you factor that in, they went from a $62,000 loss in 2009 to a $1,642,000 loss in 2010. Very significant.

While they claim to have added "subscribers" to their company, they have once again changed the way they calculate them. They no longer separate travel and marketing and any ITC (formerly RTA), PDC (anyone that bought into ZamZuu) or anyone that pays a monthly fee (the MLM recruiters do not need to buy a site or be in the program, they can buy a license to give it away) is considered a subscriber.

The corollary to that is that they no longer break out travel sales or commissions earned as it is now lumped into the sale do girdles, vitamins, healthy water, and all of the other associated products they either sell or represent.

Which, might make sense considering that this document has hinted very strongly that they are exiting the travel business.

The Company’s first business model was an Internet Travel Center (“ ITC” ) that sold for a one-time set-up fee of $449.95 and a monthly charge of $49.95. This focused almost exclusively on travel. In January of 2010, the business model changed to include retail e-commerce with the launch of ZamZuu which began selling the Product Distribution System (“ PDS ”).

 While this does not say that they are out of the travel business, it does indicate that travel is no longer a focus of the company as their "product" now "includes" travel. Maintaining the original travel program is easy enough since the agreements and technology are in place, but with the decline in paying "travel agents" and reduction in commissions and the (presumably) decline in sales will have a very significant impact on the travel business.

Will ZamZuu still be selling travel--sure. Most suppliers have affiliate programs where anyone can earn a commission; granted that commission is significantly less than the commissions earned by travel agencies.

Hallucinogenic Drugs Now Available With ZamZuu

This can be the only explanation for this pearl of wisdom from TravelPro this weekend regarding the third quarter financial reports.

While we're certainly not out of the woods - but the company is growing again.

Third Quarter numbers were released on Friday afternoon, and "subcribers"[sic, but to be expected] increased for the first time since the first Q1 of 2008.

The Company experienced a small profit for the quarter. In addition, the number of active Subscribers increased 11.6% during the three months ended September 30, 2010, from June 30, 2010.

The "Free Revolution" is working and while it's going to take a bit more time to adjust and create "product sales" from the new influx of subscribers, the company is in growth mode again.

If any of his readers bothered to follow the link provided by TravelPro, they would have read about an entirely different picture--direct from YTB--not the hallucinogenic drugs that he must have on auto-ship from his ZamZuu Back Office.  Here are just a few "gleans" from the press release sent out by YTB.

• Net loss for the quarter ended September 30, 2010 was ($0.7) million. (somehow, TravelPro equates a loss of $700,000 in three months as a "small profit". This likely explains quite a bit.)
• Total net revenue for the third quarter of 2010 was $9.9 million, compared to $15.9 million for the third quarter of 2009....Net loss for the quarter ended September 30, 2010 was ($0.7) million, or ($0.01) per diluted share, compared to a net profit of $0.4 million, or $0.00 per diluted share, for the same period of 2009....The Company's total net revenue for the nine month period ended September 30, 2010, was $28.0 million, compared to $55.3 million for the nine month period ended September 30, 2009. (But, in the happy place where the TravelPros live, when you earn less money than before, lose money after being profitable before,  and show a 89% decline in revenue, it is considered "growth mode again." Just make sure the check clears for next month's auto-ship.)

YTB did indeed see an increase of "subscribers". But what the TravelPro (and YTB in their release) failed to tell anyone was that they have now redefined subscribers. The last report separated the marketing (recruiting) people from the travel people. This time, they combined them all together so the water is definitely muddied.

I was out of town all weekend and did not get to look at the document, but will do so in the coming days.. Stay tuned!

The Sheeple Want To Know

The question has been posted time and time again and YTB remains silent on the issue. Does this raise a red flag to anyone?  Just some recent postings from Kim Sorensen (one of the most influential people in travel)'s Facebook wall.

Maybe it is time to come clean and let the people who are responsible for selling the travel, and more importantly for supporting the pyramid, know the truth,  Kim Sorensen, there are more than ten thousand people who want to know. Why are you silent? Use your influence!

Please Remember

Who Owns YTB?

Yeah yeah yeah, publicly traded, SEC scrutiny and all that. But just a few short years ago, Coach Tomer owned 51% of the stock and the other "insiders"--Kim, Scott, Brent, Brock, and a few Board members--owned about 35%. That left 14% on the open market.

But now take a look at this. It seems that this group only holds 16% of YTB's stock with Michael Brent holding the lion's share (or the bag, depending on what happens) of the stock.

Is this a red flag? I think so. I have said time and time again (you can search this blog) that they are slowly getting rid of all the stock. So, I will say it again!

Yes, Please Do Look Around

This week, a YTB newsletter closed out with the following:

It's important to not only understand the relevance of recruiting "travel agents" from within our own ranks, but how it protects us from overzealous Attorney Generals and obnoxious Travel Agents who can't comprehend the Direct Sales model or think they own the industry.

We can't fix stupid - but we can certainly limit their access which has been the cause of so much drama over the last few years.

Therefore, you should only find the Travel Agent program directly from the back office or company e-mails or other subscription based communications (such as Facebook Fan pages and this subscription based communication) dedicated to ZamZuu and YTB Travel Network, and not on any blog, board or advertisement.

Besides, we're sure you'll agree that our "Free Revolution" is much easier to promote and build. From within our own ranks it becomes obvious who possesses the business savvy and work ethic to create a more viable and lucrative Travel Agency business.

In closing, a year or two ago, our Founders promised us they would "bullet proof" this business and told the travel industry we not going away. Our model works - and while there will be those who don't like it - it's not their decision or choice. (It's ours.) We told them "no" - and "no" means "no". If an overzealous critic wants to promote otherwise...we can only think of three words to respond with:

"Thanks for sharing."

Not only have we learned how to turn the tables and move past the drama - but in our opinion we've created hands down the best Host Agency start to finish for anyone looking to get into the Travel Industry. We didn't fold or collapse - we made it better and more attractive.

Take a look around the industry at other Host Agencies. Nobody provides the training, commission contracts, and health insurance benefits YTB Travel Network does - and certainly not for this price!

Think it was worth the wait?

That's obviously up to you to decide, but personally - we appreciate how the company has fought for and protected our travel business!


Doug & Ronda Bauknight
AKA: TravelPro
Travel Agents / Network Marketers
YTB Travel Network

First of all, yes, please look at other hosting options. You will find that nearly ALL other options offer a higher commission split, higher commissions to begin with , and the ability to sell ALL travel suppliers. If you are in YTB, you need to ask yourself if the inability to sell Royal Caribbean, NCL, Celebrity, and Azamara has hurt your business. And then you need to know that it was because of the questionable business practices of the company that put you in that position.  Yet they are still asking for more money than most host agencies and offering the ability to earn less money.  Does that sound like a wise business decision to you? The one thing that YTB offers that other hosts do not, is health insurance. Businesses are not lawfully allowed to offer group health insurance to independent contractors. By doing so, it classifies them as employees and subjects the company to paying taxes, unemployment, etc. It also subjects any earnings to federal and state withholding tax.  But YTB offers this as a "carrot". The levels to get this insurance are essentially impossible to reach. They can just as easily promise a brand new Gulfstrean G-VI for RTAs who earn $100,000 a year in commissions. It is not going to happen!

The other interesting comment in this newsletter is that it seems the goal of the latest restructuring is to shield "overzealous Attorney Generals [sic] and obnoxious Travel Agents" from knowing too much about this publicly traded business. It begs the question as to what they may be hiding and what business practices they are employing that an Attorney General might be considered a threat?  Sort of like the guy who cheats on his wife and pays cash with his mistress to cover his tracks. But like that guy, the truth usually comes out. We will just have to wait and see.

YTB, Redefining The Word 'Free' One Gullible Person At A Time

Isn't it strange how history repeats itself? Take YTB (insert Henny Youngman joke here). Jerry Brown, the current Attorney General and Governor elect of California filed a $25 million dollar suit against them for their questionable business practices. YTB ended up settling the case for a million dollars!

One of the key issues Jerry Brown had (as does Lisa Madigan, Illinois Attorney General who currently has a suit filed against YTB as well--for some interesting up to date information on that suit, you can click here!) was the mixing of the businesses which YTB claims are separate and the misleading statements.  Well, check out this latest bit of news from YTB about the "travel business". IT does seem like YTB is headed down that same path. Jerry and Lisa, are you watching? My comments in parenthesis after each paragraph.

Hey ZamZuu! Great News!

Our Travel Agent Program is now available to Free Agents and Business Owners.* Here's how it works! If a Free Agent is interested in our Travel Agent Program, they can simply click the ad in their back office to join! And the best part? They can do so for only $49.95 per month! The first month's fee pays for First Class Training and beginning in month two that covers their state-of-the-art travel booking engine they received upon joining! For a low monthly fee of $49.95, they'll be exposed to an exciting world of travel including group travel and offline bookings! (To participate, it is no longer a "free" opportunity. Your Free Agent status has now become a $49.95 per month status.)

If a Business Owner wishes to get involved in the Travel Agent Program, it's the same process as above. They click the ad in their Business Center and pay $49.95 for First Class Training. If one does this before December 31, 2010, there is no additional fee associated with the travel booking engine so long as they continue to pay their $49.95 monthly website hosting fee for ZamZuu. Business Owners shouldn't wait if they're interested! Beginning January 1, 2011, all Business Owners will pay $49.95 per month to take part in this exciting program. (I may be reading this wrong, but it seems that this is not really any benefit to "Business Owners"--for $49.95 a month as a "Free Agent" I can sell travel and for an additional $49.95 a month as a paying "Business Owner" I can sell travel. Aside from the influx of cash to YTB, where is the incentive?)

So, what does this mean for our Reps and Brokers? More commission!
If a Broker's Free Agent decides to participate in the Travel Agent Program, they'll earn a 10% Performance Bonus on all travel booked through YTB Travel Network. And, that 10% is on everything from lucrative group cruises to a number of offline booking possibilities! Plus, the first upline Rep of a Free Agent will earn a $2 Residual Commission every month the travel booking engine is active beginning in month two! (Here we go again, deceptive advertising--a staple of YTB's revenue stream. Let's be honest here and say that they will NOT earn 10% on the travel booked, but 10% of some figure closer to 10% of 10% of the travel booked. To see how lucrative YTB is, one only needs to look at the Income Disclosures for when they were selling more travel ($100 a year income on average), then do the math with them selling much less, figure in the reduction of commissions, and the reduction of suppliers available, and all of a sudden, that $49.95 a month seems more like a donation to the retirement funds of the top executives than an investment.)


The possibilities are truly endless with ZamZuu and YTB Travel Network! Don't miss an all new ZamNuuz on Saturday at noon Eastern to hear from YTB Travel Network President J. Kim Sorensen and Senior Vice President Shelly Coppersmith for more information on this exciting new addition to ZamZuu! (Not that it is required by any law, but for those who are unaware, YTB is notorious for "related party" transactions and cutting deals with insiders. Remember the $8 million Statue of Liberty? How many realize that $8 million (according to YTB) was paid into a company (Beryl-Martin) owned by Coach Tomer and Kim Sorensen. Sweet deal! But as to this paragraph--Kim and Shelly are blood related. Shelly is Kim's daughter. I wonder how much a Senior Vice President makes as opposed to a "Business Owner", "Free Agent", or "Travel Agent"?)

(To watch ZamNuuz, go to your Rep Back Office and click the ZamNuuz link underneath the video player.)

*This upgrade not available in Canada at this time (As we all know, Canada has more stringent rules on selling travel including registration and training. Of course, YTB does not believe in that. YTB believes that you should be able to sell a credential and call yourself whatever you like--as long as the check clears when you send it in.)