YTB Travel Warning
Just a brief heads up. With the economy in the tank, there are schemes that pop up all the time. One that has been around for a while is YTB Travel (yourtravelbiz.com). In a nutshell, it is a pyramid scheme where the money is made in recruiting others into the scheme.
Last week, they were essentially shut down by the Attorney General in California for being an “endless chain” scheme and for deceptive advertising and business practices. They were fined $1 million dollaras. As soon as the settlement was released, Illinois also filed a suit against them.
Being in the travel industry for many years, I am strongly opposed to these types of schemes. They work for so few and end up being a rip off for so many.
I wrote a column for The Examiner about the troubles with YTB, and invite you to read it. Believe it or not, I was able to keep most (not all) of my opinions out of it and simply laid out the facts with the resources and links.
About the Author: John
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Joined YTB 6 years ago, tried hard for 3 years. Not the MLM, but got into it for travel sales, which is what it’s supposed to be about. Primarily, to sell Disney packages on my own, through Disney via YTB’s CLIA# (which cost additional $100’s). The $50/month YTB website was mandatory and a waste.
Pushed hard for web air/hotel sales too. Those sales were almost nil because the “deals” could be easily beat elsewhere. Of the few hotel sales, the commissions were scant (usually $10-$20). Air bookings were even worse, at $5 comm. Most months yielded nothing despite vast marketing. NEVER paid even close to the $50/mo web fee.
On Disney sales, which were 100% my own efforts…Disney typically gives a 10% comm, for an average package a couple hundred dollars. But then YTB takes 40%, so the average comm was cut to just over $100. Disney sends the package to YTB, who would not forward to me unless I begged. Same with the checks, then $1.50 to mail…cheapskates.
Waste of $$$
In fairness to YTB, they never promoted themselves as “get rich quick”…to the contrary, they stressed hard work and you get out what you put in. But the only $ to be made here is in the MLM.
I could have pushed the MLM side and made $, but felt that it was dishonest because the product (travel sales) was not profitable. This is because the website is too expensive (really, probably costs them pennies per Rep to operate, yet they charge $50/mo), and they nickel/dime you on everything they can.
I finally found out that I could pursue Disney sales directly, and cut out these middle-men. Then ALWAYS got the package/info without having to beg, plus got 100% of the commission as it should be.
Still happily, and profitably, selling Disney packages all these years later…costs me NOTHING, and no parasites eating 40% of my comm plus additional “fees,” and causing me grief with the getting materials and getting paid.
If I knew then…