YTB's Survival questioned after a net loss of $1.9 million

YTB International reported a net loss from operations for the first quarter of 2009 of $1.9 million. In its first-quarter report to the Securities and Exchange Commission (SEC), YTB said that negative current economic conditions and other factors have led to a fall off in the number of active Travel Site Owners (TSOs) in YTB. Net revenues totaled $21.8 million in the first quarter of 2009 compared to $42.7 million in the first quarter of 2008.

YTB said the number of active TSOs has declined during the quarter ending March 31 by a net loss of 18,582 to 73,801 active TSOs from the 92,383 reported as of December 31, 2008. TSOs were formerly known as Referring Travel Agents (RTAs), most of whom work from their homes.

“The Company is also defending against two cases challenging the legality of its network marketing program," YTB said in its report to the SEC. "Litigation claims can be expensive and time consuming to bring and defend against and could result in settlements or damages that could significantly affect financial results.

“The Company’s loss from operations, declining active TSO count, working capital deficiency, uncertainties surrounding the Company’s pending litigation, and the general downturn in the economy raise substantial doubt about the Company’s ability to continue as a going concern,” the report continued.

YTB said it had taken action to ensure that the company will survive, including a consultant to provide recommendations to the Board on cost structure, compliance and other matters to improve overall profitability.


For more information contact:

Daryl D. Alex
Regional Executive
Traverus Travel
1-877-744-3431
225-590-7700

$1 MILLION Fine handed out to YTB

YTB Travel News: As reported by Elizabet Donald:WOOD RIVER -- Illinois has filed a lawsuit against the YourTravelBiz company and California has leveled a $1 million fine against it.

The company and its officers face litigation from Illinois Attorney General Lisa Madigan, according to spokesman Natalie Bauer.

Jonathan Quinn, an attorney for YourTravelBiz, said the company does not have a comment at this time on the Illinois complaint. "We have not been formally served, and when we are we will review the complaint and be in a position to comment," he said.

According to the Illinois complaint filed against YTB on Thursday, the company charged its clients a $450 initial fee plus $50 a month to purchase a travel Web site. The suit alleges that the company misled their clients as to the commissions they received, that advertising showed there was no cost to join. Calling it a pyramid scheme, the complaint alleges that the real money came from referring others to join YTB instead of the travel sales themselves.

According to the suit, the average representative earned about $114 a year, while executives made millions. Madigan alleges that the company violated the Consumer Fraud Act and Uniform Deceptive Trade Practices Act.

This comes after California's lawsuit against the company was settled for a $1 million fine on Thursday.

Also, the company faces a federal class-action lawsuit from former customers.

The class-action suit, filed last year on behalf of more than 1,000 people who participated in the YTB system, seeks more than $100 million in damages.

For more information contact:

Daryl D. Alex
Regional Executive
Traverus Travel
1-877-744-3431
225-590-7700

YTB starts the year off on the WRONG foot again

YTBTRAVELNEWS(press release): It has come to my attention that YTB Travel Inc.,"The Company", Yourtravelbiz.com or whatever entity that this travel company goes by these day has ones again been drop by another cruise line vendor that makes it what.... it's third(Royal Caribbean, Celebrity and Azamara ) one in the past few years.


Happy New Years YTB Travel Inc. However, your services are know longer needed. It has been reported that Norwegian Cruise Line or NCL has made an EDUCATED DECISION to cut it's ties with YTB Travel Company Inc.,"The Company" or Yourtravelbiz.com.


For More Information Contact:
Daryl D. Alex
Regional Executive
Traverus Travel
1.877.744.3431
225.590.7700

YTB Travel International Inc. the Joke of Craigslist

YTBTRAVELNEWS(press release): It has been brought to my attention by a close friend
that YTB Travel International Inc. has become the joke of Craigslist. And are quickly showing that YTB Travel International Inc. isn't as RECESSION PROOF as Coach and the GANG would like to have everyone thinking they are Then "IF" this the case "WHY" are there ads being posted like the following one found by MLMs and Travel.

11/21/2008
Travel Domain Name and YTB 2008 Success Magazines
Are you in the Travel Business or with YTB and need a domain name? We would like to sell our name www.TravelersHope.com to you if you are interested. Please contact us and we can get you more specifics and talk price.We also have 20 YTB 2008 Success Magazines if you could use these for your YTB business. I am willing to sell them for $75 or obo. These would be for pick-up and cash only.
Thanks!

Oh oh. Seems that YTB is not too recession proof in Denver if they are selling the domain and magazines for $75 or best offer.

10/29/2008
YTB Marketing Materials For Sale (KC, MO)
Hello, I have many YTB Marketing Materials that I would like to sell for less than I paid. I hate to throw them away when someone else could use them. You must be able to pick them up. The list is below, make offer, will not separate must take them all.


YTB INVENTORY
Quantity Items
123 Magazines
6 Leaders Bulletin-Vol 1 No 1
23 Leaders Bulletin-Vol 1 No 3
49 Leaders Bulletin-Vol 1 No 4
49 Leaders Bulletin-Vol 1 No 5
24 Leaders Bulletin-Vol 1 No 7
19 Coach's Playbook
56 8x10 YTB International Turning Fun into Fortune Brochure
50 What's Missing From This Picture Brochure
50 American Destinations Brochure
49 The Ticket to Your Future Brochure
123 Grand Opening Postcards
Your Travel Biz Guarantees Brochure
15 8x10 Signs
100 Free Travel Vouchers to give away
Total Cost $770.01
Thanks for looking and good luck with YTB.

Ouch, seems Kansas City also did not get the email from Coach about how recession proof the business is. And this looks like someone that was serious about the business. Look at that inventory list. And in case the person who placed the ad is reading, I am sure for your $770.01 Coach will send you a nice Christmas card.

10/22/2008
YTB Success Home Magazines, DVD, travel vouchers & more for sale
hi I have all this stuff from YTB for sale or trade ( ipod touch 8GB for my son)
* (14) 2007 YTB Success from Home magazines 12 with dvd
* (5) Coach’s Playbook DVD’s.
* (5) Circle of Champions DVD.
* (118) What missing from this picture ? YOU .
* ( 10) Travel vouchers.
*(199) Your travel biz the ticket to your future
RETAIL VALUE: $234.90
(not including shipping). if you have any question please let me know ,thanks


Orlando too? This cannot be. Coach and Scott promised it was recession proof! What the hell is going on here?

11/15/2008
YTB Success from Home magazines with CD
i have 24 copies of the January 2007 issue of Success from Home featuring YTB. These magazines come with the CD-Rom for this travel business. Those of you in the industry know about this. These are FREE. If they are not picked up within a week, they are going to the recycle trash. Serious inquiries can call me at 727-742-2119.
p.s. if i know you are coming, i can put them out under the covered front porch overhang, so there is no need to set up special times.

It's no better in Tampa. But I am not so sure how valuable a two year old magazine is? But apparently the advertiser knows, they are intending to toss them in the trash. What is a "serious inquiry" about something you are planning on tossing away? I believe that Coach would not be happy!

10/28/2008
YTB Success From Home Magazines - $50
We are selling 28 YTB(Your Travel Biz) Success From Home Magazines. They are the 2007 Edition. 25 have never been used, 3 are in ok condition. We are selling them for 1/2 the price of what you will pay on the YTB website (for 25 Magazines).
On the YTB Website (25 magazines) ~ $99 + $17 S&H
We are selling them for $50!


Denver again. Boy Coach needs to send out more of those Recession Proof CDs. There are entirely too many RTAs and Reps that are unaware of this new unique to YTB program. This guy is even trying to sell his "slightly used" 2-year old YTB Magazines. And we are not even going to address in how they were used--you can use your imagination.

For More Information Contact:

Daryl D. Alex
Regional Executive
TraVerus Travel
1.877.744.3431
225.590.7700

YTB sells administrative offices?

YTB Travel News: Sources states that YTB Travel International is selling their admininstrative offices. Somehow I knew that it wouldn't be long before this would be happening after the lay off of their adminstrative staff a few months ago. And just like than YTB Travel continues to say that there's nothing wrong. Here is information that has be noted on MLM'S And Travel site that has made this fact known to all.

We need to wait a few more days for the YTB Travel International or yourtravelbiz.com 10-Q filing, but it appears that they need to raise some cash. According to this 8-K filing, YTB is selling its property at 1 Country Club View in Edwardsville, IL. The property is being sold to Prestige Management Services, LLC for $1.5 million. This is the same property that YTB Travel International acquired a little more than a year ago, and according to this 8-K filing paid $1.85 million for.

The current sale is not only for the building and land, but also "All office equipment to remain with building to include: Cubicles, Chairs, Desk, Tables, Break Room Equipment. Sellers may leave or take Phone system." Computers and Computer Systems are excluded. Further, the buyer has taken an option to purchase 600 Country Club View at any time within 12 months of the closing of this sale.

This means that YTB Travel International is losing $350,000 on the sale, plus the cost of the equipment and furniture, plus the costs of acquisition and sale.

Why would they be doing this? The obvious speculation is that "The Company" is bleeding financially, and needs to raise cash

.

For More Information Contact:

Daryl D. Alex
Regional Executive
Traverus Travel
225-590-7700
1-877-744-3431

YTB Travel International changes "RTA" Commissions

YTB Travel News: (press release) EXTRA!!! EXTRA!! read all about it YTB Travel International announces that YTB Travel International agents will now receive 70% as it has eliminated the 10% override bonus!!!!
However, YTB Travel International fail to inform their Travel agents or should I say RTA's about all the hoops that they will have to jump through. Let us take a look at these HOOPS.




For More Information Contact:

Daryl D. Alex
Regional Executive
Traverus Travel
1.877.744.3431
225.590.7700

Types of pyramid schemes AND how YTB uses it

A pyramid scheme is a means of transferring money from duped investors at the bottom of a pyramid to those at the top, who initiate the recruitment of an endless chain or pyramid of participants. Pyramid promoters promise substantial income to those who “work the system,” but it is considered by law enforcement in most jurisdictions in the U.S. to be an unfair and deceptive practice because of the mathematical certainty that approximately 90% or more will always be in a losing position at the bottom – whether it collapses on its own, is shut down by authorities, evolves into another program, or moves on to another area.
While it is true that in most legitimate businesses, entrepreneurs lose money or eventually quit the business, the odds of failure are not guaranteed. Success is dependent on market forces and skill and the amount of time, money, and effort invested in the enterprise. However, in an illegal pyramid scheme, the more one invests in the enterprise, the more one loses – with the notable exception of those at the top of the pyramid, which are usually the first ones who entered into a given market. Success is dependent on time of entry and/or on willingness to aggressively recruit and deceive a downline of participants into believing the program is a legitimate enterprise.
Pyramid schemes come in many forms and with many disguises, including:

1. NAKED, NO-PRODUCT PYRAMID SCHEMES

Participants buy into the scheme and move up four or five levels towards the top by recruiting others, who must do the same. The top person pockets all the money and then the next ones in line move up. The originator may move on to start another pyramid. Since no products are offered, these are easy to detect and are often shut down rather quickly by authorities. Losses are usually no more than a few hundred or a few thousand dollars and aggregate harm is minimal, so they seldom attract much attention by law enforcement or by the media. Included in this category are pyramid games, such as the “airplane game,” or pyramid parties, such as the “dinner party,” etc.

2. GIFTING OR AFFINITY SCHEMES

These are essentially no-product pyramid schemes, but they are disguised as gifts given voluntarily in order to enter the pyramid. Promoters claim they are empowering women or churches or some other group of people striving to gain financial advantage. They do not fool most officials in law enforcement, and the media and the public often unite to support law enforcement in shutting them down. They have been successful in some states for brief periods of time, but seldom gain wide support. Aggregate losses to society are minimal.

3. REPORT CHAINS AND OTHER INEXPENSIVE PYRAMID SCHEMES PROMOTED OVER THE INTERNET

These involve spamming the Internet with offers to participate in an endless chain of useful “reports,” which are usually readily available information that has been photocopied and added to the chain, much like a chain letter. The cost to participate is very small – usually under $20. While they are hard to control in a medium as unregulated as the Internet, actual financial losses are almost trivial. The real harm is their tendency to hog valuable computer space and time. Internet matrices are also pyramid schemes that cause more irritation to serious web surfers than actual financial harm to participants.

4. PRODUCT-BASED PYRAMID SCHEMES

These are the pyramid schemes of choice for at least 90% of promoters of schemes designed to enrich a few at the expense of a multitude of downline investors. Recruits are deceived into buying “potions and lotions” with claims of magical properties and powers – and promises of huge income for sharing these dandy items with friends and neighbors. Promoters exploit the dreams and social capital of participants, who almost never file complaints with authorities when they come up empty – which happens to approximately 99.9% of them. Because participants don’t complain (for reasons I will explain another time), law enforcement seldom does anything to contain them. These programs go by such terms as “multi-level marketing” (MLM), “network marketing,” “consumer direct marketing,” etc.
Product-based pyramid schemes recruit aggressively until de facto saturation makes recruiting difficult in a given market, moving on to other markets or starting new “divisions,” thus maintaining themselves in a continuously revolving door of new recruits, each of whom buys or subscribes to products to get in on this “ground floor opportunity.” In order to succeed, one must first be deceived, then maintain a high level of deception, and finally go about aggressively deceiving others.

Aggregate losses to society from product-based pyramid schemes total tens of billions of dollars every year and affect millions of victims world-wide. Approximately 99.9% of participants lose money – far higher than for no-product pyramid schemes. Most recruits participate on a modest scale, buying a few products and then quitting. Harm to more serious participants ranges from a few hundred dollars to loss of one’s life savings, career, or worse – breakup of families, even depression and/or suicide. The ones who get hurt the most are individuals who most enthusiastically embrace the promises and deceptions of the promoters and put their savings, credit, and whole heart and soul into this bogus “business opportunity of a lifetime.” If you had read the thousands of letters we have received from victims world-wide, you would not see MLM as a harmless home business – and certainly not a profitable one.


For More Information Contact:

Daryl D. Alex
Regional Executive
Traverus Travel
1.877.744.3431
225.590.7700