YTB INTERNATIONAL: YourTravelBiz.com Defenders Say It’s Not a Scam
October 14, 2008 by Sean Kelly
Filed under Business
(FranchisePick.Com) Related: YTB INTERNATIONAL: Is YourTravelBiz.Com a Pyramid Scheme?
Is YTB International, YourTravelBiz.Com a Scam?
Is YTB International’s YourTravelBiz.com business opportunity a Ponzi-type investment scam? Or is it the victim of an unfair, politically motivated smear campaign.
California Attorney General Jerry Brown’s vote: Scam.
According to STLtoday.com, the Californis Attorney General is suing the company for $25 million in fines and restitution. The AG accuses YourTravelBiz.com, a subsidiary of YTB International, “of recruiting tens of thousands of members with misleading promises that they’d earn large sums of money selling travel online to friends and acquaintances. Agents pay YTB a $499 fee to join, then $50 a month thereafter…. California Attorney General Jerry Brown called the company ‘immensely profitable to a few individuals at the top and a complete rip-off for most everyone else.’ Brown said he aims to shut down the company’s unlawful operation ‘before more people are exploited by the scam.’”
Yet others defend IL-based YTB International, an employer of 300. When asked if YourTravelBiz.com is a pyramid scheme, FranchisePick.com reader Connie answers:
NO, ABSOLUTELY NOT. I have been in YTB for almost 2 years and while I haven’t made tons of money, YTB has delievered on everything it said it would in its RTA’s Bill of Rights. I was smart enough going into the business to realize that it was going to take more than a $500 investment and 6 months for my business to be profitable. I went into it for the long haul and believe that if I keep working it, I will one day have a strong profitable business. A number of years ago, I spent about the same amount of money to get into one of the makeup businesses. At that time, $500 was a lot more money than it is today. I never made a dime on that business, but the parent company itself is still in business today and no one calls it a pyramid. Buidling a business is a commitment.
Paul states:
…I am very satisfied with YTB. I am focusing on the Pasport2Giving program for non-profits which is extremely profitable.
Conrad takes it a step farther, suggesting that AG Jerry Brown’s lawsuit was politically motivated:
Is YTB an illegal pyramid? No. Think about this. Gerry filed the suit against YTB the day before the National Convention. Hmmmmm. If that doesn’t say “political” then I don’t know what does. Second, if he truly had a viable complaint then why didn’t he file an immediate “cease and desist” order? In my opinion, he didn’t have it nor does he have it now. YTB is still in operation in California and California happens to be one of the fastest growing markets. I believe Gerry gave in to the pressures of YTB’s competion and a few bitter traditional travel agents.
Is YTB International and YourTravelBiz.com a scam designed to prey on the dreams of hardworking Americans, or are they an honest employer being unfairly accused and smeared for hidden political and economic motives. Your input and insights are valued.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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Come on Sean, how can we fault a company that does this for their national convention:
‘So it commissioned an Indiana design firm to build a nearly life-size foam replica of the Statue of Liberty, 130 feet tall and 50,000 pounds, to be erected in the Edward Jones Dome and unveiled to much fanfare at the opening ceremonies.’
Oh, and how much did it cost and who built it:
It’s unclear how much YTB paid for the massive statue — published estimates of its cost range from $1.8 million to $8 million — but the company that YTB hired to make it, BerylMartin of Griffith, Ind., has received more than $7 million for printing and event work for YTB since 2004, according to regulatory filings.
And it’s owned by YTB’s trio of co-founders.
http://www.stltoday.com/stltoday/business/stories.nsf/yourmoney/story/D198EBC73001348B862574B50006C1DF?OpenDocument
Actually the company also needs to worry about their own liquidity, since the bank they deal with (and one that two board members were owners/board members of said bank) was taken over by Illinois last weekend, after being put on ‘watch’ last June for bad lending practices.
It’ll be interesting to see what their quarterly financials look like, since they are public.
There are plenty of good stories out there about this company.
jd:
You’re right to defend them. I’m sure those who pal around with terrorists (wasn’t Jerry Brown one in the 60s?) have targeted this company because they’re too American and too patriotic.
Their Statue of Liberty was superior to the original in several ways.
First, it ain’t in New York (closer to Main Street than Wall Street).
Second, it was MADE IN AMERICA by Americans.
Third, the inscription was likely revised to read “Give me your poor, your weary, your credit card number, your $1000 set-up fee…”
Anybody have a picture of this work of art?
YTB is no scam. The majority of failures in this business and any business, are a direct result of people being unwilling to put in the necessary time, effort and, money to build their business. This is a business and many people treat it as a job. This is not a get-rich quick scheme, but it is definitely a business where people can achieve all their goals if they will work hard and discipline themselves in a consistent way and learn the skills necessary to succeed.