As a former Power Team Leader with YTB, I can understand why YTB Travel is not a good fit for many who have joined this program. As a result, their level of discontent has risen to the level where the States Attorney Generals of California, Missouri and Illinois are preparing lawsuits against Your Travel Biz. The following is a former YTB affiliate’s “inside” opinion about these recent turn of events:
We became an affiliate with Your Travel Biz (YTB) because of the large demand for travel. Since YTB is a virtual company that “sits” on the Internet, we used Internet marketing tools to grow and run our YTB business, set up custom web and blog sites for exposure, and used lead generation tools to drive traffic to our sites. The good news is that we were successful.. The bad new was that we were notified by YTB’s Legal Department that YTB does not allow its YTB affiliates to have custom web sites, or blog sites so we terminated our relationship with YTB in July, 2008.
As for others who joined YTB, their chances for success was limited from the start. Unfortunately, the demographic, or segment of the population, that is attracted to MLM’s or network marketing companies are often from lower income levels who view companies like Your Travel Biz as their ticket to get rich quick. Obviously, most of the people they know seldom travel, don’t go on cruises, don’t sign up for golf packages in Hawaii, and don’t have the $500 to join the program. Once they go through all their friends, family or “warm group” they run out of people to talk to and quit the business. Tragically, it’s really that simple, and much has been written about this reality.
Since YTB does not advertise, it’s up to the YTB Reps to get the word out about their home based travel business. How many people can the average YTB Rep tell about their online travel business as compared to the endless TV commercials that run Travelocity and Expedia.Com commercials 24X7? At the end of the day, your family, friends and warm group know about your home based travel agency and may book travel with you if they can get a better deal. Two problems with this scenario…YTB does not provide the best deals on travel, the commission on any domestic airline flight is $3 regardless of the ticket price, and how often does your “warm group” travel? Business travel doesn’t count because it’s booked through their company. In this case, not enough people will ever know about your YTB Travel business, can’t find your YTB web site on the Internet, and YTB’s policy does not allow custom web sites that provide the exposure you need so people can find you on the Internet.
As mentioned, the airline industry pays very little commission to travel agents. Roughly, $5 per domestic ticket. At Your Travel Biz, a YTB Rep gets 60% of $5, or $3 in commissions for each ticket booked on their YTB Travel site. The commissions for cruises are much better; however, how many people do you know that are taking a cruise next week? Usually you find out about someone taking a cruise after they have already booked the trip. In addition, no one takes a boat from St.Louis to Kansas City..They drive, or fly…
Most every MLM or Network marketing company pays commissions on people you recruit and bring into the business. In the beginning it’s very exciting, but before long two drop out for every one person you bring in…The drop out rate is high because the failure rates in MLMs is estimated at 80%. This failure rate is documented by most MLM industry analyst Secondly, they target the wrong audience or people to bring into the business. For example, recruiting people who have limited or no computer skills, literacy issues, aren’t open to learning or taking direction, low committment levels etc….
Since the failure rate for MLM’s, Network Marketing companies and any type of home based business is very high, what are the reasons for this extreem failure rate? People do not have the training required to succeed, lack of information, don’t use business tools, have little or no experience, don’t know enough people to contact, aren’t committed to working extreemly hard, little or no understanding of the power of the Internet, have limited computer skills, are not comfortable selling things period, aren’t familiar with the benefits of their product offering, don’t enjoy or know how to recruit people into their business and so on and so on…..
Moral of the story? Many YTB Travel competitors are using YTB’s legal problems as a tool to recruit people away from YTB. Let’s say the YTB Rep leaves and joins their company. He’s still faced with the same challenges to succeed, because nothing has really changed that would alter his chances for success. In most cases, he won’t make money at his new company for the same reasons he didn’t make money at YTB. So, who’s to blame? Is it YTB’s fault, the YTB Rep’s fault, or a combination of both parties? I fall back to my statement that some people just don’t fit within an MLM, network marketing or home based business regardless of the type of company or products they offer.
More to come on this soon…
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