Major Lawsuit Filed Against YTB Yourtravelbiz.com - Are Members Fleeing?
(26) Comments So Far... What do you think? August 8, 2008In case you have not heard, YourTravelBusiness.com, or YTB just got slapped big big big time by the California Attorney General, Edmund G. Brown Jr.
The office of the Attorney General has sued YTB declaring that it is a pyramid scheme because only a few make money at the top and the rest never make money who join under the top players.
You can read the full story at their website:
The YTB Lawsuit is called: "Brown Sues To Topple Online Pyramid Scheme"
I'm going to be giving my opinion on this matter, which is a very delicate matter, and I invite you, the reader to offer your opinions in the comments of this blog as well.
WHAT DO YOU THINK?
Now, keep this in mind. Brown is only suing, so there is no final order from a Judge to declare Brown's claims to be true. YTB will say they have done nothing wrong and are within the realm of the law to conduct business the way they see it legally.
And, in case Brown did not realize, according to Dunn and Bradstreet figures, 90% of all new businesses fail. Network Marketing, MLM and Direct Sales are the same way. People start and most people fail no matter if it is a brick and mortar or a digitally based internet product or a physical product.
According to Michael Gerber from the Emyth Revisited:
- 1,000,000 million people will try to start their own business this year
- 400,000 will fail their first year
- 400,000 will fail within 5 years
- 160,000 will fail within 10 years
That leaves only 40,000 in 10 years are still in the game… Of those 40,000 most I would say are just scraping by…almost at the end of their ropes and a couple hundred at the top are killing it making millions… So, does that make it a pyramid scheme cause the failure rate is so high?
It's not a function of a marketing plan or a pay plan that makes a business a Pyramid Scheme.
Pyramids are everywhere in business.
Just look at your fortune 500 set up where presidents, CEOs, VPs and Managers make huge salaries, while the rest of the office makes minimum wage. Pyramidial structures are everywhere. All major businesses are set up this way so the rich stay rich and the not rich stay comfortable there.
The case for failure is not how the company recruits or advertises (although Brown Claims they are doing this illegally as well), the failure of so many is because of numerous conditions found within the soul of every one who calls themselves a human being…
- FEAR Of FAILURE
- FEAR OF SUCCESS
- LACK OF KNOWLEDGE
- LACK OF SKILLS
- LACK OF IMPLEMENTATION
- LACK OF MONEY
Most people fail because of a fear that comes from a lack of knowledge and a lack of skills development.
More people would succeed if they spent the time to work on THEMSELVES and develop skills and knowledge. So blaming the system for failure of so many and calling it a pyramid scheme is wrong in my opinion.
Home Based Businesses would be WILDLY successful if Human Beings did not run them! 
I guess, if you join a company and you don't make money cause you told 4 people about, then you complain to the AG of your state… and enough people do it… then you'll get their attention.
So, maybe Brown should start sueing all the MLM or Network Marketing businesses since only 2-10% ever make it in the big paychecks and the rest can only wish to be in that top group?
So, many in YTB are obviously freaked out by this.
So are many similarly modeled travel agent business opportunity websites out there as well. If the courts do see it as Brown see it, many people will be fleeing from these home based travel agent businesses and looking for new homes.
If you are reading this, and you are a part of a company like YTB or another like minded "possible pyramid scheme" then maybe consider or weigh your options.
Do you want to keep recruiting people into a company with a grey cloud over their heads, that is bound to have to defend itself in public, over the long haul and constantly try to stick up for this companies business practices, or would you rather move on to a different company where you are not going to find lawsuits and red flags?
That is a decision all reps from Your Travel Business (YTB) will have to decide for themselves.
But if the reader is looking for a new home, please contact Jeff Mills, the CEO of Goldmills Marketing, which has other popular travel products to offer with high commissions, that might be a better fit for starting a home based business.
As I said, the jury is not out yet on the legitimacy of Brown's self declared "pyramid Scheme" talk he is shouting from Sacramento, this will need to be decided and defended in a real court where a judge or jury will make the final decisions.
This case will be a case watched by ALL industry players, as it does infact effect more than just the travel business opportunity markets that promote home based travel agent businesses, it affects many MLM models and affiliate sales based models as well.
Hopefully, all the money YTB has made over the last several years is enough to hire the best MLM lawyers to defend the case.
I am not actually too worried about what the outcome will be. I think MLM's have been on trial many times in the past and the real legit ones always come out on top, while the real schemes out there get pounded for what they really are… scamming people at the bottom to pay the people at the top.
I don't think this applies in YTB's model. But I am not a judge and I do not know the bounds of the law like the book smart lawyers do.
ONE BIG CAUTION: There are MANY high roller Direct Sales people out there touting their homes, Cars, Boats, Bentleys, Hummers, Jetskis, Bank Accounts, and more ENTICING people into a business opportunity and if I was one of those dudes, I would be scared as hell! Seriously… here is why…
Brown charges the company, its affiliates, and the company’s founders J. Lloyd Tomer, J. Scott Tomer, J. Kim Sorensen and Andrew Cauthen with operating an “endless chain scheme,” an unlawful pyramid in which a person pays money for the chance to receive money by recruiting new members to join the pyramid. Brown also charges the company with unfair business practices and false advertising practices including:
* Deceptive claims that members can earn millions of dollars with the company
* Operating without filing legally mandated documents with the attorney general and the Department of Corporations
* Selling an illegal travel discount program
Under California’s unfair business practices statue, the company is liable for $2,500 per violation of law. Attorney General Brown is suing YourTravelBiz.com to get a court order that:
* Bars the company from making false or misleading statements
* Assesses a civil penalty of at least $15,000,000 and at least $10,000,000 in restitution for Californians who were ripped off by the company.
from Brown's Comments "From August 6 through 10, thousands of members are preparing to travel to St. Louis for a national convention to learn new techniques to recruit more victims into the illegal pyramid scheme. Last year at least 10,000 people attended a similar national conference. For more details on the company’s plan to perpetuate its scheme visit: http://www.yourtravelbiz.com/bizRep/BizReports/BIZREPORT_07-18-08.htm"
For more information on pyramid schemes visit: http://ag.ca.gov/consumers/general/pyramid_schemes.php
Consumers who believe they have been bilked by YTB should send a written complaint with copies of any supporting documentation to:
Office of the Attorney General
Public Inquiry Unit, P.O. Box 944255
Sacramento, CA 94244-2550
Or through an on-line complaint form: http://ag.ca.gov/contact/complaint_form.php?cmplt=CL.
This lawsuit against YourTravelBiz.com, filed in Los Angeles Superior Court, also names affiliates which include YTB Travel Network, Inc., YTB Travel Network of Illinois, Inc., as well as the company’s founders J. Lloyd Tomer, J. Scott Tomer, J. Kim Sorensen and Andrew Cauthen. For a copy of the lawsuit please contact the attorney general's press office: (916) 324-5500.
You gotta love the timing of the lawsuit eh? All these reps flying into St. Louis, for the company yearly convention, over 10,000 expected to be there, and boom, this bomb drops on everyone WHILE THEY ARE THERE!
Crazy timing from Brown, sure to shake things up in the MLM, direct Sales industry.
Cross your T's and dot your I's people … watch how and what you are marketing. I point to finger back on me as well… Do a thorough and real inventory on what your marketing really says to people and promises to people.
What do you think?
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Impeccable timing! For those of you that think a business opportunity means a free ride; you need to understand the definition of a business. A network marketing business is like any other business (a traditional travel agency, for example) 1. Understand your product, 2. Let others know you have a product (and that means marketing).
How is the YTB model any different than a franchise? Lay your money down and follow the manual. You do NOT have to recruit to make money in YTB; but you do have to sell a large quantity of product (just like coke, pepsi, banana’s, weight loss solutions, the list is endless) to make a profit. If you sell office supplies, you need to sell a lot of them to make a profit, not a few here and a few there.
Any network marketing organization can be faulted with trying to educate those who should not be in business for themselves. They swallow ridiculous claims of income because each individual is responsible to market there own business and some are obviously out of integrity making these claims. Fake it until you make it does not resonate with me. Do you think they would be employable in the traditional market making the same claims?
Amway/Quikstar, tupperware, pampered chef, cutco, primerica (citigroup) Avon, Mary Kay, Liberty League are all examples of network marketing organizations to name a few. Each have different compensation plans and different products, do your homework. Each is a business within a business model. Some with more restrictions and limitations than others.
A real estate agent gives up a portion of their commission either directly in exchange for desk fees, photocopies, reception services, plus, plus, plus or as a percentage to have these services included by the broker.
Get real, if you are promoting any business opportunity, #1 know your product (if you don’t have a product run the other way! Recruiting is NOT a product)and know how you are compensated
#2 Understand you’re operating a business with all the benefits and liabilities
#3 You are responsible, your name is on the product you promote; respect yourself!
Good Grief!
It is a shame when something like this happens. I am not sure of the legitimacy of this company you write about but I do know a couple of reps for them and it saddens me that there will be turmoil around their business now. I am proud to be in a legitimate direct selling multi-level company and prefer to spend my time uplifting this profession and showing the world it is a viable career plan for many. If the claims are true, they are not only hurting the YTB reps but all legitimate direct selling professionals as well.
People should realise that MLM is also a REAL business, and like ALL real business, probably only 10% of participants make money as a business endeavour, the other 90% are just product/service consumers.
Willy Lim
http://www.internetwork-marketing-asia.com
It really is sad that an attorney general would file suit against an organized tax abiding company; while their are hundreds of thousands of people out there involved in ilegal activities such as cash Gifting. I really doubt this lawsuit will shut down company operations, amway went through this and so did other companies. Ytb will be fine in the long run.
http://Www.Ramisahar.com
Nuts! when it comes to an attorney general file suits againts an organization that is committed to help people achieve their freedom. A company this size will not be shut down due to the credibitly. Plus, YTB is in the SEC!!!
August 11, 2008
Most people seem to always be looking for ways to get rich quick and MLM companies in many cases will tell you how easy it is to do that.
In this case, YTB corporate is not telling people that. In fact they tell you it will take hard work to build your business, so don’t quit. Give it 4 years and if you truly work at it you can make all your dreams come true.
Does YTB have a travel platform? Without question yes! Do most of the people joining YTB know what they have purchased? No! However, if anyone in YTB will take the time to learn their Booking Engine and get company trained on how to most effectively book travel and treat it as a real travel business, they can make all the money they want, showing people how and why they should book travel with them, just like a Realtor sells houses under a Broker.
Don’t sell YTB short. Coach, Scott, Kim and Andy are working very hard everyday to make sure they are selling people on the idea that they are in the travel business and maybe California will be the test, for many to wake up and learn to sell what they have purchased; “Travel”.
I just returned from having a great time at the convention in St Louis and am leaving with a group of about 30 people I put together to go to the Olympics on Wednesday with YTB/Spring Worldwide Tours.
My business is selling travel and if people want to join me and do the same, I will teach them how to do that and have fun while making money. I don’t take vacations, but paycations.
Within the last 12 months I have personally taken a group of 35 to Europe, 48 people to China, a small group to Thailand and Taiwan, and to the Bahamas to check these places out, and now 30 to the Olympics. Plus, I have sent many others to other places in the world as well and only joined YTB in April of 2007. Why have I been able to do this? Because I like what I do and want other people to go experience what I have just done.
Does my YTB travel platform work for the amount of money I paid to join YTB to sell travel? Without question! There would be no reason for me to ever quit. It cost me $450.00 to join and $49.95 per month for my website and YTB pays me that back at the end of the month as part of my comp plan. My travel commissions far surpasses by many times what I paid to join.
Do I pound people on the marketing comp plan YTB offers to get them to join? Never! All I do is get people booking travel with me and then show them how they can do it themselves, if they choose. It’s that simple and I welcome anyone within the YTB family to contact me and I will show them how to do what I do if they truly want to learn the travel business.
Thanks for the opportunity to express my opinion.
Joe
I understand that when you grow as large as YTB has that you become a target. I also know what YTB has promised me and that is a chance to realize my dreams…..a chance. If I make no money, some money, or alot of money it is completely up to me and my work ethic. I like the idea that my income will only be limited by me in this great company, and unlike most other companies, the CEO gets paid more when I get paid more. If someone said it would be easy, they lied……YTB did not.
I thoroughly enjoyed the comments of this article as well as the few BLOG entries. It is refreshing to actually see some level headed logical commentaries. It seems like many detractors on the WEB speak emotionally and damming not logically.
I agree it takes hard work and effort to make a business…. any business successfull. Pretty much any organization in our society is pyramid shaped. The people at the top will almost certainly make more money than the people at the bottom. At YTB there are many instances of people who make more money than their upline.
Unfortunately there will be many people jumping on the bandwagon of this lawsuit. People who spent their money, did nothing with the business and made nothing. Garbage in is Garbage out.
I joined YTB fully understanding that Travel is a volume business. This is why so many “Brick and Mortar” Travel Agencies are disappearing. But YTB has delivered everything they promised on both the travel sales side and the marketing side. I’ve never had an issue cashing a check, and I have made enough money in travel commissions with just a few sales a month to cover my monthly dues plus profit. Honestly how many startup companies can be in the black in just a few months.
As YTB grows in travel sales, they will quickly become the target of many…. It is just a sign of success.
As previously posted it is a shame Brown would do this. I was never told this was a “get rich quick” scheme. As with any business you must work at it. The YTB concept was fully explained to me prior to joining this great and wonderful compnay. I think that someone out there is jealous that YTB will be number one in the near future. Maybe someone is trying to stop this company from achieving this. I find what Mr. Brown has written in his complaint to be unture.
YTB is a pubically traded company and has faced scrutiny in the past. I know they will survive these false allegations and the citizens of this country will once again see how so much time and money is wasted on such triival pursuits as this.
Thanks to each of you who expressed your opinion regarding the YTB lawsuit. I am a relatively new member of the ytb family and was concerned when I first heard of the pending litigation. I was quite impressed with the information shared by Joe who indicated that he would be willing to share how he does what he does in building his business by booking travel. I would sincerely appreciate your sharing that information.
My wife & I came into YTB about 10 months ago… with great expectations, sure… but knowing the risks, and knowing there was real work to be done… but WE side-tracked on our own! We believe the business model will work for us when WE work the business plan! (Duh, like ALL business enterprises.) After the St. Louis conference (with nearly 20,000 in attendance) we’re excited all over and plan to forge ahead. Like so many business enterprises, there are ups & downs (and most of the ‘downs’ are our own fault). We’re NOT going to give up! We’ve already enjoyed taking our own anniversary trip (in January - saving AND earning money as RTAs), and look forward to more traveling adventures!
We, too, would like to learn more from Joe and other successful agents within the ranks of YTB!
Norm
P.S. I’m originally from California and left years ago… and am NOT surprised this has come from there - a state that has robbed its citizens via exorbitant property taxes for many years!
Posted by Joe
Hi Saundra,
I don’t mind giving you a hand, so you can learn how to get people to book travel on your YTB website. Remember, there are many people in YTB that will help you succeed if you just ask, and will never make a dime from you, but have the willingness to help you succeed, if you’re willing.
If I would have depended on the people that signed me up to get my investment back, I would have failed just like many others do that join YTB. But I saw the opportunity and seized the chance to travel the world and started asking questions from people that seemed to know what they were talking about.
In many cases, Power Team Leaders and even Directors knew less than me, but that didn’t discourage me; it just let me know that more education was needed for the little guy. So I started learning my booking engine. The more I learned, the more I could tell my clients how to book travel more effectively.
I have discovered that people want a travel guide; even though they’re booking travel themselves for backup security they want someone to answer their questions. Are you prepared to do that?
Are you willing to devote four to five hours to attend a Beginners Class on the Basics as to how to truly Market your Travel business and to learn where to get the proper marketing material to support your customer base?
Do you want to learn how to build your customer data base and what Marketing Materials you will need to create that travel base, and what advertising tools you will need, and are used in the travel industry to build that base?
Once any RTA has this type of training under their belt and feels comfortable with their Booking Engine and has the willingness to succeed are ready to go.
Within the next couple of months YTB’s Booking Engine is going to be upgraded again to the state of the art booking engine, which is going to be much easier for you to navigate as well as for your customer base.
My email address is toursworldwide@gmail.com.
Even if YTB is a so called great opportunity, the “Law of Attraction is in action”. They are surrounded by nebative energy. It’s tough enough for a new un-skilled person to build a business. Yes, anything is possible and it’s unfortunate that this is happening. This is simply the snow ball effect and YTB has no one to blame but the founders. It’s a great idea that was simply not managed properly. The cocky attitude of the founders created “BIG” enemies. Speaking out in a negative way against Royal Caribbean and IATAN did not make things easy for the field.
To get into YTB right now would be a big mistake and an uphill battle in building a business. Why would anyone want to have to constantly have to fight and prove that everything is now okay. The press is overwhelming and I think alot of RTA’s are in major denial. Yes, the ones that bleed YTB will hang around for awhile, but after their business starts to dwindle rapidly, the truth will be revealed.
” People go where there is increase” (Wallace Wattles), not decrease. Here’s a question they will eventually have to ask themselves…Am I committed to YTB’s philosophy or my dream?
A good business person knows when to accept temporary failure and move on. Just because YTB may fall, doesn’t mean you have to.
Truth
I was not too surprised to hear about the YTB lawsuit. When a company reaches the growth and influence that YTB has reached in such a short time frame and is almost a household word then the timing is just ripe for the poor me’s and victims to jump on the Attorney Lawsuit Attack Wagon to try and collect what is rightfully NOT THEIRS!! And more so for a class action suit when all your buddies are saying’ come on’ let’s get in on the free money, when they know it is ethically wrong! They are there sitting on the couch getting fatter, more unhealthy feeling more and more depressed all the time pointing fingers at everyone except themselves for their predicament. Couch Potatoes! The ‘victims’ are self defeating, lazy, with a welfare mentality. When you lay down with dogs you get fleas.They have no idea what the word ‘work’ means. They want something for nothing as usual. California pays the biggest welfare checks of any state. Their ‘lawsuit mentality’ has started permeating most every state. I can say this as I am a fourth generation Californian that has seen it all, now living in Idaho. Most people fail at a new business as the statistics above demonstrate. I owned a successful Sporting Goods Store in California for 17 years that was open seven days a week. My husband and I worked harder than most people could ever conceive of working. We know what it took to run a business and succeed. YTB is a company that offers people that opportunity to travel and enjoy the world, and to make a good income at the same time as a home business. When I saw for a minimal fee of $450.00 and 50.00/month I could be part of a company that has life insurance, health insurance and an education in the travel business that is awesome. I had to lay out one hundred times this much cash to start my Sporting Goods Store. But YTB takes ‘WORK” and when I signed up for YTB I read about the company and new that it was a very well structured company with great leadership and ethical people. Yep, it was ‘the law of attraction’ alright. This company attracted me, a self made woman, like it has attracted hundreds of others like me who know that there is no free ride in life and you get out of it what you put into it. To have my own business again with the fexibilty, income potential (depending how hard I work) and the fun and joy of travel is a dream come true. And there are many, many others like me who want the same thing. YTB lays it out straight to people signing up. They say it takes work. They leave nothing out as far as what it takes to succeed.There is nothing illegal about YTB. How many companies have been approved by the SEC for heavens sake? Do realtors sue their brokers because they haven’t sold a house because they weren’t out there working? Hard? Not hardly working!! It is plain and simple, AN OPPORTUNITY. That means the door is open for a better life if you want to WORK and make it happen. YTB SPELLS THIS OUT. They give you all the tools. I can’t possibly call this work though because it is so much fun. There will always be ‘naysayers’, the bottom dredgers, scum bags, leaches that try to pull down the achievers because of jealousy and negativity but the good guys always win in the end. Yes, I have made money with YTB and am very happy. I am formally educated, come from a middle class American family, am happily married and believe that I am blessed to be born in the United States with the opportunites and freedom available to me here today and I intend to take full advantage of YTB. Leaders will encourage, and recognize effort. They will stand by during the hard times. They endure through sheer character. Their elevated spirit permeate and attracts. That is the true American dream and I’m living it with YTB.
I just want to thank you for a seemingly unbiased look at YTB. I am probably at the very bottom of the totem pole, but that is my fault, not YTB’s. They have provided all kinds of training, etc. I have made money with YTB, strictly by commission on selling travel, and I love it. I am sorry to see this happen as I finally found a company that I truly believe in and believe in the structure that makes it possible for anyone to succeed if they are willing to put in the effort. I think it’s awful the way a country built on capitalism, where people should be rewarded for innovation and business smarts, constantly show their jealousy and greed by shooting poison darts. I know many people would disagree with me, but I felt it was wrong when they broke up Microsoft. I thought Bill Gates was a genious and the ones that faught so hard to bring him down were just jealous they hadn’t had the same ideas first.
I have been an Amway/Quixtar IBO for many years because I truly believe in their products and the value they bring to my life, so I’m used to the fight from outsiders who don’t really understand what the rest of us see. I just hope, and I’m sure, YTB is just as able to thwart this frivolous lawsuit. I didn’t like the Attorney General when he was Governor of our great state. I don’t think he’s gotten any smarter thru the years.
I agree with everything that has been said about most people not being succesful because they are unwilling to do anything and are just looking to get rich quick. There are many legit network marketing companies out there who don’t have AGs trying to shut them down. There are plenty out there who people have tried to shut down, but they weathered the storm because they were legit. The issue with YTB is that they pay to recruit. Less than 40% of the commissions paid come from travel being sold, the rest comes from recruiting new agents. Earning commissions on sales made by those you recruit is perfectly legal and is why most people become involved in network marketing. But getting paid for simply recruiting, whether a product is sold or not is not legal and that is the issue that YTB is facing right now.
AG Brown is nothing more than a left wing social liberal who thinks everything in the world should be easy. He complains that only a few people at the top make most of the money. Well, he obviously was not at the convention in St. Louis. Everyone in life whether it be in the military, government, coroporate america, or business starts at the bottom and works their way up. If they are going to sue YTB for only a few making money, then let them sue all the MLM’s. Oh and while they are at it, why don’t they sue the big corporations like Wal Mart who give false impressions to low level workers that if they work in thier stores for 20 plus years they live comfortably on thier pension. What this lawsuit gets down to is simple jealousy. AG Brown and the state of California are in major debt and need to get money anyway they can. 4 years ago, nobody cared about YTB. Now that they are getting successful people want their money. AG Brown has been a life long politician his whole life and has no clue how the business world works. The people of California were morons and idiots for electing him. They go what they deserved. I almost guarantee that he never even looked at YTB’s side. A bunch of cry baby brick and mortal travel agencies of which he owed them politcal favors, went whining to him. Now about the issue of YTB paying more in the marketing/recruiting side than travel. On the travel side, YTB has very little control on how much commission the airlines, cruise lines, hotels and other vendors pay them. YTB then takes 60 percent of this commission and pays it to the agents. I
continuation from my last post:
It works simply like this: Let’s say you buy a shoe store. In your store are countless shoes and other items. However, you get very little profit from your items sold in your stores. Now, let’s also say, you sell an exact copy of your shoe store to a friend who in turn get to sell the same things you do. Only in this case, your reward for selling this replicated shoe store is four times as much as selling items in your store, which would you choose, be honest. I sell travel all the time, but it is hard to get motivated from $10.00 commission on a hotel.
It’s pretty simple. Sit around and do nothing and you won’t get paid. Work and promote your website and you will make money. Which group do you think is behind the lawsuit? YTB is a business opportunity, what you do with it is up to you. There are two basic ways to get paid. Reps make money by SELLING websites. RTA’s make money by SELLING travel through their websites.
Have you ever heard of a company, that has never had a bad word spoken about them?
Let me use an example of one company that you all know about and have heard about.
Before I tell you the name of this company let me ask you a questions.
Would you invest or buy stock in a company that has:
Been sued so many times, can’t be counted.
Thousand if not millions of unhappy customers around the world.
If you were to ask 8 out of 10 people about this company they will tell you that they
have had a numerous bad experience with their product at least on a daily basis.
More bad press then any company has ever had in history.
In trouble with the department of Justice and local state agency for anti-trust in the past years.
If you search Google and search for their name + lawsuit your will find 26,900 websites about this company.
In trouble with the FTC numerous times.
Paid millions of dollars in fines of the years.
Numerous class-action lawsuit currently in supreme courts.
History of releasing bad products, before they have been tested properly.
Oh, by the way I should also tell you that this company has over 80% of the market share in their category.
Their stock price has been up and down over the years.
Have also lost millions of customers over the years.
I know what most of you are thinking, I would not only never use their product or service,
but also would never buy their stock.
Right?
And, if you said NO, NO, NO. Then you would have missed out on one of the best producing companies in history.
And most of you should just stop using your computer because the company I have been talking about is: Microsoft.
My point is:
That if you are looking for bad news about any company you will find it. If people are not talking about a company, the company is most likely not growing or doing anything.
People love bad news, bad news sells. It took Microsoft over 15 years to hit
1 Billion in sales annually. YTB is about to do it in 8. Only 90 BBB filings against YTB? In comparison to other similar online agencies listed in Travel Weekly’s top 35, that’s a great track record!
Other BBB top complaint companies:
Expedia.com - The BBB processed a total of 1024 complaints about this company in the last 36 months.
Orbitz - The BBB processed a total of 1729 complaints about this company in the last 36 months
Travelocity - Number of complaints processed by the BBB in the last 36 months: 1528. And in the last 12 months: 533.
Not to mention…American Express (Travel Related Services Co.) - The BBB processed a total of 606 complaints about this company in the last 12 MONTHS.
YTB has been in meetings with California for months over a new proposed law in that state concerning the travel industry and it’s potential impact on our business. The discussions reached a stalemate and California filed suit. This is not the first time YTB has been challenged. When any company is revolutionizing an industry, and growing faster than any other company in the industry, the industry doesn’t like it. In our case, that is the travel industry. It is not a coincidence that last year YTB showed up as #35 on the Power List, and within 3 months we were challenged by IATA, Royal Caribbean, and Rhode Island.
Why do you think that happened?
The industry doesn’t like us.
Now we are #26 on the Power List. This lawsuit is a result of the INDUSTRY putting pressure on the lawmakers, not an issue of whether YTB is in compliance with California law.
We will be challenged. We will be shot at. It has happened to EVERY company that changed an industry. It happend to Microsoft, Walmart, IBM, McDonalds, Amway, Mary Kay, Excel, A.L. Williams, and every other company that revolutionized their industry.
Why do you think we would be different — especially when we are taking over the largest indutry in the world?
This is EXPECTED.
Coach, Scott, and Kim are not rookies to this business. They have fought these battles before and won. The blessing WE have is that we have them running the show, and they have “been there, done that” before and been victorious.
During this time we will lose some weak reps. We know that.
There will be competitors out there trying to steal our people. We know that.
There will be some fear and indecision out there. We know that too.
But there will also be LEADERS that step up.
There will be CHAMPIONS born.
There will be people that just decide that WE ARE READY for a fight.
That’s US.
WE are READY FOR THE FIGHT.
We are READY to STAND UP AND LEAD OUR TEAM THROUGH THIS CHALLENGE.
DON’T YOU EVER DOUBT your company’s commitment to YOU.
DON’T YOU EVER DOUBT that we will win this thing.
DON’T YOU EVER DOUBT that YTB will be the #1 Travel Company in the World — No Matter What We Have To Go Through.
REST ASSURED — YTB is all over this issue.
Our attorneys are already in California working on this.
This WILL BE RESOLVED, and when it is, YTB will be even stronger because of it.
Have faith in Coach, Scott, Kim, and your company to handle this matter. They will handle it. It is just a bump in the road.
listen I can not that their are absolute idiots out their that think any MLM is a “pyramid Scheme” Listen any time any one wants to start a business it takes money “an investment.” you now I read what is written by nothing but losers on here that make ridiculous accusations againts YTB and its founders. The best form of advertising is word of mouth. THAT IS UN-DEBATABLE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!. YOU ASK ANY MILLIONAIR IN THIS COUNTRY AND ASK THEM IF THEY GOT THEIR WEALTH BY WORKING A 9-5 THEY WILL ALL SAY NO AND LAUGH IN YOUR FACE AND TELL YOU TO GO GET EDUCATED. ANY TIME YOU PAY TO BE INVOLVED IN A BUSINESS THAT GIVES YOU ACCESS TO BE A TRAVEL AGENT AND I REMIND YOU IDIOTS THAT YTB HAS WORLD RENOWNED VENDORS THAT HAVE PARTERNED UP WITH THEM SUCH AS HYATT..DISNEY…HILTION..ROYAL CARRIBEAN. DO YOU IDIOTS THINK FOR ONE SECOND THAT A BILLION DOLLAR COMPANY WOULD ALLOW A “PYRAMID” C0MPANY TO SELL THEIR PRODUCT BECAUSE THE ANSWER IS NO. IF YOU PEOPLE EVEN KNEW WHAT IT TOOK TO BE SUCCESSFUL IN THIS COUNTRY. YOU MAKE MONEY IN YTB SELLING TRAVEL THAT ANYONE CAN BOOK OFF OF THEIR BOOKING SIGHT AND THEY BRING IN RECRUITS BECAUSE IT IS A NO BRAINER. ANY FORM OF BUSINESS THAT IS MLM IS NOT A “PYRAMID” IF THEIR ISA FREAKING PRODUCT THAT IS SOLD TO ANY CONSUMER THAT CHOOSES TO BUY FROM THAT SIGHT. FURTHERMORE FOR YOU STUPID NO FACT HAVING IDIOTS THOSE SAME CONSUMERS GO TO THOSE RENOWNED VENDORS THAT ARE WITHYTB GO TO THOSE ACTUAL PLACES ITS CALLED VACATION. SEE WHEN THEIR IS A PRODUCT THAT CAN BE SOLD AND USED BY A CONSUMER IS NOT A PYRAMID ACCORDING TO ANY LAWYER OR JUDGE THAT HAS A IQ OF 1 WOULD TELL YOU LOSERS THIS. LISTEN I AM NOT HERE TO DEFEND YTB. I AM HERE TO INFORM YOU THAT HAS APERSON WHO OWNES STRIP MALLS AND SUBWAYS RESTURANTS LIKE MY SELF AND MY FAMILY IT IS PATHETIC TO SEE WHAT PEOPLE WITH NO EDUCATION OF THAT PARTICULAR BUSINESS WILL SAY AND DO. IT IS THOSE SAME PEOPLE WHO ALWAYS CRY AND SAY THAT PATHETIC EXCUSE FORBEING BROKE”THE RICH STAY RICH AND THE BROKE STAY BROKE” IT IS THOSE PEOPLE WHO HAVE NO CLUE WHAT IT TAKES TO BHUILD A BUSINESS BECAUSE THEY ARE TO BUSY WORKING FOR A DEPARTMENT STORE OR FAST FOOD PLACE OR HOTEL OR GANITORIAL SERVICE TI ACKNOLWEDGE THAT. WHICH IS SIMPLY BECAUSE THEY ARE COMFORTABLE WITH BEING WORTH $400.00 A WEEK AFTER TAXES AND HAVE NO DRIVE OR DETIRMINATION TO BE SUCCESSFUL BY BUILDING A BUSINESS WEATHER IT BE MLM OR OPERATING A LEMONADE STAND OR RUNNING ANY BUSINESS. YTB IS FAR FROM A PYRAMID SCHEME AND BEILIEVE ME WHEN I SAY THIS NO ONE HAS A CASE AGAINST YTB. WHERE THEIR IS A PRODUCT TO BE SOLD OR BOUGHT YOU NOW HAVE A BUSINESS AND BELIEVE ME THE MOST EDUCATION ANY ONE SHOULD EVER NEED TO UNDERSTAND THAT IS A PRE-SCHOOL LEVEL EDUCATION TAKE CARE YOU DILUSIONAL PEOPLE
I’m not sure if you guys understand the lawsuit fully. Maybe you did not read the actual brief…….
YTB lost their IATAN number. A serious travel industry credential. They continued to sell “travel agent” services and websites for $499. The travel agent website is just a Tavelocity website that I could use for free. YTB does not have a legit product. In order to have a legal MLM you have to have a product. YTB has no product.
That is what the lawsuit is about. YTB boasted travel agent discounts, which tey did not have, tax advantages, and inflated salaries that without passing out an income diclosure document.
MLM is MLM. What YTB was doing was illegal practices.
Has anyone tried to look at YTB a little closer? I mean, really!! RTAs buy-in for $500.00 to sell “TRAVEL”, that is one side of the business. There’s also another side of the business where you sell the “TRAVEL WEBSITES” and make commissions, this side of the business is free, meaning there is no out of pocket cost. YTB will provide you with your own personalize Marketing website, marketing tools and training at no cost, TELL ME, HOW IS THAT A SCAM??
Geeze! come on now, it’s elementary folks.
My husband and I had been in the business for 5 months, sold about a dollar short of $50,000 in travel. I knew nothing about MLM before I got into this business. Now those people that are claiming that YTB lied to them about making money and that they can become financially independent with this company, try to interview them and ask them this one question……..”From the very day you Joined YTB, how much work have you done?” …..In any type of business, ask any business owners out there. If you start your own business and just sit on your behind and do nothing, you think you’ll make any profit? Lazy people shouldn’t start their own home business because all they do is sit on the couch, watch TV, and get fat. Then 2 months later, they start complaining, and suing others because they did not make any money. What a joke.
As far as the Ca. Lawsuit is concerned…This all I can say…..Bill Gates was sued, more than a thousand times, Travelocity, Expedia, got sued quite a few times too. When a company is doing great, growing fast, they get attention, they attract other companies, they pose as threat to their competitions. So people will start to look for things, no matter how ridiculous they are, and accuse other good companies of doing illegal things.
Oh, by the way, i was at that Convention in St. Louis. No one twisted our arms to attend that Convention, and the training provided to us was not about how to scam people, it’s how to sell travel, travel , travel, and how to build our business.
I’ve seen the heart of the company. Coach Tomer, Scott, and Kim are good people. How come everytime a person wants to do good things for others, they almost always seemed to get attacked? Hmmmm…if people are jelous, why don’t they try to do something productive to better their lives. Maybe, create a goal for their families instead of wasting their time trying to destroy others.
Here is what people DO NOT realize. YTB means well. who hurts YTB is the very same people thats in YTB , or the MODEL of YTB. The LAW states that they CANNOT make 50% or more from recruiting and they must make 50% or MORE from products. unfortunately YTB make upwards of 80+% from recruiting and less than 20% from Travel. This means that the average person should make more than $500 in commission from travel not from rercruiting to make it LEGAL. I hope that clear up WHY they are being sued and yes I am a part of YTB.
I love reading the rationlizations (i.e. Many businesses fail, fortune 500 companies are pyramids because those at the top make more money, etc.)…ha ha.. Of course the owner and those at the top make more money - duh…..Of course many businesses fail - duh.
What this is about is the fact that YTB violates the 70% rule and I read the lawsuit word for word and it is all true… As with all MLM’s the product or service is incidental….of the millons of dollars generated by YTB, it all comes from a) the initial set up fees, b) recurring monthly charges, and c) the sale of marketing materials……the actual “product” makes up virtually none of the revenues (I think it accounted for like 14%). So, 86% of the money generated (i.e. giving the appearance of YTB making money) comes from and is supplied by the VERY PEOPLE who are supposedly looking to make some extra part-time income or those trying to “get rich.” That money is then transferred to the few at the top……That my friends is the gist of the suit…not that many companies fail or that those at the top of fortune 500 companies make more than entry level employees - focusing on that demonstrates a lack of understanding of the basis to the lawsuit…..or is simply a rationalization…..people, stay away from MLM
I join YTB some time ago and I’m having a problem in getting my money back. I look at the internet to find out that YTB has been sue across a county. I;m located in Prince George Cty. and I need to speak with an attorney to resolve this matter. The person who got me involved will not answer my question. Her name is Ms. V. Lambert.703-357-0829 and her web-site is http://www.strive2travel.com. strive2travel@gmail.com.
Do you know it there a class action suit in Maryland. Please e-mail at ncrobertson58@gmail.com I was looking fro some part-time income, but no one will help me. I got a Promotion to Travel on a free vacation, but it never happen. I miss my daughter wedding in the Island because of there promise.