Sixth Scott Still A Mystery, YTB Fires Orbitz

The terms of the asset sale may (if all benchmarks are met to the maximum level) realize YTB $7.5 million for the sale of their travel company.

Part of the agreement includes terminating the agreement they just put in place with Orbitz last January.  The agreement also ties in the sale price to the number of "RTAs," which explains why YTB made a huge push to renew dormant RTAs after the convention.

I am unaware of any penalties from Orbitz for terminating their agreement.

The details of the sale can be found in this filing! (PDF)

The New YTB Program

While a YTB director was touting the ability to get an IATAN card again as a benefit to joining YTB, the Travel-Pro laid out his opinion of what the acquisition of YTB means to the people in the program.

If what he says is correct, this is a HUGE step in the right direction for YTB. However, little to nothing is known about Sixth Scott (Tomer perhaps??) or First Travel Alliance.  And sine this was structured as an asset purchase, YTB will likely undergo a new name. Even ValueJet could not survive after they crashed an burned, but they sold, re-vamped, and upped the ante.

If YTB can do this and focus on travel rather than recruiting (and there are mixed messages still at this point coming from the directors) I am sure they will eventually be welcomed by the industry.  Here is Doug Bauknight's opinion on the new YTB program as explained in his weekly newsletter. All emphasis is his:

Everything you love about YTB is staying exactly where it is! You'll have all the commission percentage opportunities, group booking access, and a fabulous customer facing booking engine (which will be getting a new look!).

You'll have access to even more travel vendors including all the major cruise lines, tour operators, hotels, airlines and charter organizations, best in class package deals, and even vacation home rentals! And, you'll book these vendors through your industry-leading agent only booking system! (No more commission claim form to fill out or various usernames and passwords for vendor specific booking engines!)

There will be new, specialized, in-depth training. This training will show you exactly how to be successful - even if you have limited experience in the travel industry. This new training program allows you to become even more knowledgeable in cruising, hotel properties, tour companies, and even destination specialists from some of the vendors who aren't currently available to you.

The new program will also show to market your business, when to sell what, how to use CRM and client data, as well as sales techniques to create a more profitable business!

Also in works: an optional A-List program for our top producing Travel Agents. The new travel company has programs that provide travel services to companies across the country. This program would give you access to process bookings generating more commission income for you.

The new partners are IATAN accredited, and those who meet certain commission requirements may be eligible to receive an IATAN ID card. With this, access to FAM trips, inaugural cruises, and ship positioning cruises where available are all a possibility.

From what we've been able to gather thus far, this is a welcome and much needed addition for those of us who love and focus on travel. (It's why we got into YTB all those years ago.)

Please keep in mind, this isn't going to happen over night there's a lot of work to be done between now and seeing all these enhancements as a reality.

Just know that it's in the works, and while YTB will still work on and control the marketing aspect of our business - we have a new partnership with experts in the travel industry to help all those who love and care about travel.

Did YTB Sell?

On one hand, it seems YTB sold the travel portion (asset purchase) to a new company.  See release below:

YTB International Inc. (Pinksheets: YTBLA.PK - News) ("YTB" or the "Company"), a provider of e-commerce business solutions for individual consumers and home-based independent representatives in the United States, Bermuda, the Bahamas, and Canada, today is pleased to announce the Company executed an asset purchase agreement ("Agreement") with an unaffiliated third party, Sixth Scott, LLC ("Sixth Scott"). Sixth Scott, which will operate under the name First Travel Alliance, has access to a collection of companies that generate $1.2 billion in travel sales annually.
According to the Agreement, Sixth Scott agrees to assume contracts, agreements and licenses previously held by the Company's subsidiary, YTB Travel Network of Illinois, Inc. Sixth Scott will independently manage all travel content and provide the customer support function as well as handle all group travel booking.

President of YTB Travel Network, Inc., J. Kim Sorensen, said the deal strengthens the product mix and increases the travel commission earning potential for all site owners. "We are excited about the potential for our current and future travel members. Because the Agreement makes more travel products available at higher commission levels, I expect our home based travel agents to re-establish their market position within the industry."

A representative from Sixth Scott added, "We have been very impressed with the incredible size of the YTB member network, which can provide a distribution channel to our portfolio of travel businesses. As we continue to expand the breadth of our businesses, strategic acquisitions such as that of YTB Travel Network of Illinois will further support our objectives."

Bob Van Patten, President and CEO of YTB International, Inc., also commented, "After a thorough search, we found a strategic partner to manage the content and travel sites of our business owners. The Agreement allows YTB to focus both on marketing of the travel program opportunity, as well as YTB's new product offerings, which include Ganovia Coffee, Spider Mobile Marketing and Suklaa Personal Care Products. Giving Sixth Scott the ability to manage the content of the travel sites is a positive for YTB and site owners; both companies can focus on their individual expertise increasing the likelihood of future growth."

 But apparently the word to the masses is that they are now able to sell the IATAN cards again.  This came from a Director to her downline and specifically talks about the IATAN card.  I wonder if IATAN is aware of this?

Everything you love about YTB Travel Network is about to become so much more! Now, you'll have access to an entirely new level of business with a travel company led by industry veterans - First Travel Alliance.  This means more commission opportunity for you worldwide! Here's what to expect over the coming weeks!

1. Everything you love about YTB is staying exactly where it is! You'll have all the commission percentage opportunities, group booking access, and a fabulous customer facing booking engine (which will be getting a new look!).
2. For those of you who choose to be sellers of travel, you'll have access to even more travel vendors including all the major cruise lines, tour operators, hotels, airlines and charter organizations, best in class package deals, and even vacation home rentals! And, you’ll book these vendors through your industry-leading agent only booking system! (No more commission claim form to fill out or various usernames and passwords for vendor specific booking engines!)
3. The new travel company will take training from great to extraordinary! With their specialized, in-depth training, we can show you exactly how to be successful—even if you have limited experience in the travel industry! This new training program allows you to become even more knowledgeable in cruising, hotel properties, tour companies, and even destination specialists from some of the vendors who aren’t currently available to you.
4. Plus, it's more than just travel training. We'll be showing you how to market your business, when to sell what, how to use CRM and client data, as well as sales techniques to create a more profitable business!
5. Being a part of the travel industry as a travel professional has its perks. And as a member of the new travel company, you'll have access to more of them! They are accredited with IATAN, and those who meet certain commission requirements may be eligible to receive an IATAN ID card. With this, access to FAM trips, inaugural cruises, and ship positioning cruises where available is all a possibility!
6. We're also working on an optional A-List program for our top producing Travel Agents. The new travel company has programs that provide travel services to companies across the country. This program would give you access to process bookings generating more commission income for you! More details on this program are coming soon!

This is just a peek at the amazing things coming soon to all of our RTAs and Travel Agents! Get Ready! It's a whole new world of possibility at YTB Travel Network!

No one seems to know who this "Sixth Scott" is (and the "Scott" thing is not unnoticed), but we are digging in to see who is behind it and the "access" to $1.2 billion dollar sales companies.

If I had to venture a guess, this will ultimately be another shady deal that will implode like Rez Connect, and all the others.

Whoops He Did It Again

A while back, FH Partners loaned YTB a lot of money through the assumption of the mortgage when their bank failed. YTB defaulted on the loan several times and ultimately was able to sell the K-Mart/World Headquarters to pay off FH Partners.

But, they filed suit against CCMP as well for non-payment of some additional loans. CCMP is the little private company that is owned by Coach Tomer,  and Kim Sorensen. It is the same one that built the $8million dollar Statue of Liberty and has been used as a means to funnel some money from YTB (a publicly traded company) to a private entity controlled by the founders.  You can read about the $604,000 that the Sorensen and the Tomers failed to pay here.

Now the loyalists will say that it is all a misunderstanding. But apparently a COURT OF LAW feels otherwise. Just last week, a judgement was entered against Tomer, Sorensen and CCMP for more than $818,000.

JUDGMENT ENTERED IN FAVOR OF PLTF FH PARTNERS LLC AS FOLLOWS: AGAINST CCMP INC IN THE TOTAL JUDGMENT OF $439,427.31; AGAINST JAMES L. TOMER AND J KIM SORENSEN IN THE TOTAL JUDGMENT OF $379,237.95.

And in yet ANOTHER suit, FH Partners just won a judgement against Great River Enterprises. But this is just peanuts--$67,000:

Amt $50000.01, Plaintiff FH PARTNERS LLC , Defendant GREAT RIVER ENTERPRISES LP#1 , JUDGMENT IS HEREBY ENTERED IN FAVOR OF PLTF FOR A TOTAL JUDGMENT OF $67,014.55. INTEREST WILL CONTINUE TO ACCRUE AT THE STATUTORY RATE OF 9% PER YEAR UNTIL THE JUDGMENT IS PAID IN FULL.

More Directors Flee YTB Again

History has a way of repeating itself. Several years ago, in YTB Vesion 1, several Directors flew the coop. Bill Hoffmann, Kent McLaughlin, Ron Head, Ron & Phyllis Bush, and many more all left when the promises told never materialized or withered away. Come to think of it, Candy May is nowhere to be found.

A while ago, we told you about the departure of Jerome Hughes and Katrina Greenhill. Well, they also took a number of Directors with them as well--just like it happened in the past. Melissa Boston, Phyllis Nash, and LaRease Rivers have all flown the coop as well. And these guys are a large chunk of change for YTB.

Now what is interesting is that the #3 guy in the YTB MLM is Chris Cokely. He was brought on as the "Dean of YTB" and has been doing the dog and pny show with Coach and Scott for a few years.  Chris is a close friend of Jerome Hughes and Jerome was the one that brought Chris into YTB.  The word on the street is that Chris is planning on joining Jerome in his new venture. But for now, he sits squarely at the side of Coach and Scott.

I imagine that the next financial report (due out in a few weeks) might have an impact on Chris's decision.

And speaking of unkept promises, the "new program" that will allow YTB to sell "all" travel vendors is still on hold. Hmm, I wonder what the stumbling block could be?

YTB Terminates Director & Circle Of Champions Member Jerome Hughes

Jerome Hughes, the Networking Hero of the 2011 YTB convention have been terminated.  It is not surprising that a high producing Director will eventually see through the scheme and move on to future opportunities. Bill Hoffman did it. Ron Head did it. And many others also moved on when they realized what was happening.  Of course, YTB does all they can to protect the scheme (ala the Wizard of Oz) and has issued a statement:

To our valued YTB Members,
It is with great regret to announce the termination of former Director Jerome Hughes.  At the end of the day, our biggest responsibility in YTB is to you and your YTB business.  Jerome violated his agreement with us, and for that we had to do what was necessary to continue providing a wonderful opportunity and protect each and every one of your businesses.

You may have heard about a call tonight at 10:30 p.m. Eastern time.  This is NOT a YTB call.  Be advised that this call could be filled with inaccuracies and misinformation.  There are many rumors that have been brought to our attention.  Please rest assured that these are false.  If you have any concerns, please don’t hesitate to contact us.

YTB is here and will continue to provide an avenue for you to find success.  We are proud to be in business with all of you and are looking forward to our future together!
Your YTB Team

Hughes was partners with Katrina Greenhill and were featured in this YTB official prsentation: