Wednesday, October 17, 2007

YTB Scam Alert: The Truth on Those Numbers From the Financial Reports

Always dedicated to helping you get the facts on YTB, I wanted to address all of those out there that claim: The average YTB Referring Travel Agent (RTA) makes $40 per year (or $70 or some other variation of a minuscule number). They’ll tell you that this is based on YTB’s own financial records and things of the like which appear to give credibility to this statement.

What these people are doing is simply dividing the YTB yearly amount of gross commissions received by the number of active RTAs to come up with this figure. Common sense should tell you that this figure is a bit deceptive.

Not all have the same:

  • Education on the travel products
  • Number of contacts to market their travel website to
  • Money to spend to advertise their business
  • Time to dedicate to their business
  • Dedication to growing the business

This isn’t comparing apples to apples. For example, I have a couple of people who purchased travel stores just so their friends and family could book on their site. Others really wanted to dive into and learn everything about the travel products so that they could start booking travel for their company, church group, civic group, etc. And then there are people such as myself who joined in October, but due to an unforeseen health issue was unable to start working the business until January. Some are totally new to the travel industry, and others are travel pros.

Do you REALLY think that each of these RTAs are equal and deserve to earn the same amount? No way! The people that focus on the travel business, educating themselves on the products, and marketing their travel business are going to make more money than those who spend an hour or less per week on the business.

Each of YTB’s 106,102 RTAs come from different backgrounds, which will determine how quickly they will earn money and how much. Dividing YTB’s gross commission revenue by 106,102 won’t tell you anything whatsoever that you should consider before you join YTB.

If you take the time to educate yourself and market your business, you should make more than that $40 or $70 the naysayers love to quote

A similar deceptive YTB scam argument using figures is the one where people say that YTB only shows $x in travel revenue…so obviously the $256 million figure in 2006 was fraudulent. You look at the financials, and hey- they are right…or are they?

YTB doesn’t put the “retail sales” on their books! YTB sells travel for vendors. Vendors get the “retail sale” money. YTB, in return, gets the commission. Thus, YTB’s travel revenue reflects the travel commission earned. Very simple answer to a very sneaky argument made by the naysayers.

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