SOLUTIONS TO COMBATING THE MLM/CARD MILLS AND OTHER BAD APPLES by Peter Stilphen, MCC

I have decided to dedicate a section of my newsletter to the MLM's/card mills, as well as to the other bad apples that prey upon our travel industry specifically the legitimate home based travel agent distribution system and their travel suppliers.  We will continue our efforts, hopefully with your help, until we start making some progress with removing this growing virus.

I am dedicating this section to how we can reduce the MLM/card mill and network marketer influence as well as maintaining an updated list of these scoundrels.

POSSIBLE SOLUTIONS

• CLIA has become a powerful force in the re-emergence of the MLM/card mill in recent years.  Some card mills have replaced their own IATAN look-a-like photo ID cards with the CLIA card to give them more acceptability and credibility.  If CLIA would upgrade their photo ID card requirements, it would force the non-serious agents to either obtain more training or get out.  This works for both sides of the travel agent distribution system.  On the MLM side it would deter the easy distribution of these cards.  Where is the CLIA ADVISORY BOARD on this subject?  Aren't you all travel agents?  CLIA's photo ID card is its only blemish on an otherwise great organization.
• Host Agencies need to develop "newbie" training programs and start accepting new travel agents.  Coral Sands has been doing this from day one and it can be profitable.  The Host Agencies need to create a workable program for developing new agents.  At this time, the vast majority of new agents are joining the MLM's/card mills and receiving poor training and picking up some bad selling habits.  We need to provide better choices as responsible Host Agencies.
• Organizations such as PATH, ASTA, ARTA, NACTA, OSSN, NACOA and TPOC need to provide a basic awareness program explaining both sides of the travel agent distribution system somewhere on their website.  They should explain the differences between an MLM/card mill and the "legitimate" travel industry.  This can be done without infringing on Federal laws and nasty letters from the MLM attorneys.
• The suppliers, especially the large cruise lines, the all-inclusive resorts and a few tour companies should re-examine their policies in regards to the qualifications of travel agents required to take advantage of their benefits as well as establishing a company policy concerning untrained agents.
• Individual travel professionals should write, e-mail or telephone their membership organization, preferred suppliers and CLIA expressing their opinions.  If enough of us participate someone will listen.

The following companies are either MLM's and/or card mills or a combination thereof.  If you know of others please let me know and I will add them to the list that will be printed twice monthly.  If you find that I am incorrect in listing one of these companies, I will do a retraction in the following issue.

• AMERICAN TRAVEL BUREAU
• AMERICAN VOYAGER TRAVEL a/k/a GRAND VOYAGER TRAVEL
• CASH CARD WORLDWIDE, now known as TRAVEL REACTION
• CERTRAV.NET
• CERTIFIED TRAVEL SERVICES
• COASTAL VACATION CLUB
• GATEWAY ASSURANCE SYSTEM
• GLOBAL TRAVEL INTERNATIONAL
• FUN TIME VACATION CLUB
• GT TRENDS formerly PRT TRAVEL
• HOLIDAY PLANNERS aka INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners, Branson, Missouri
• INTELETRAVEL
• KE TRAVEL
• PROTRAVEL NETWORK, not to be confused with ProTravel International
• TRAVELOGIA already cooked
• TRAVELWIZE aka CYBERWIZE
• TRAVERUS
• WORLD VENTURES TRAVEL
• YTB INTERNATIONAL aka YOUR TRAVEL BIZ, YTBCARS, YTB TRAVEL NETWORK and REZconnect TECHNOLOGIES.

ALL THE ARTICLES I WRITE AND ESPECIALLY THE MLM'S/CARD MILLS THAT I LIST ABOVE ARE FROM MY OWN PERSONAL RESEARCH AND THE OPINIONS EXPRESSED ARE MY OWN AND IN NO WAY REFLECT THE OPINIONS OF ANY OTHER INDIVIDUAL, COMPANY OR ORGANIZATION TO WHICH I MAY OR MAY NOT BE CONNECTED.

Comments

[Luanne]

You can help by signing the professional travel agent's non-MLM petition. We're up to 700 signatures in just a week and still growing.

http://www.petitiononline.com/NOMLM/petition.html

Thank you for your time.

[John]

This is America a country where becoming an entrepreneur is encouraged. Between YTB and WorldVentures alone there are 160,000 active RTA's. In any Multi Level company only about 20% are active. That leaves 36,000 people who treat this as a serious business and take any and all training they can get their hands on in enhance themselves in the marketplace. Those 36,000 travel reps probably outnumber the number of store front agencies out there and with new associates coming on every day the model will continue to be effective. So do you feel proud they you are putting those families out of business by making the suppliers chose a side? What happened to letting the market place decide. YTB is a publicly traded company and they release their travel sales revenue numbers. They are pretty impressive. They were also listed as one of the top 35 Travel Agencies in the country http://travelweekly.texterity.com/travelweekly/20070625/?pg=47.

I also suggest you read my friend Doug Bauknight's blog to get a better perspective. Doug is a YTB rep but I am not. http://travel-pro.blogspot.com/2007/10/royal-caribbean-termiates-card-mills.html

More importantly I encourage you to let the consumers of America decide which model is more effective.

Remember what Arthur Schopenhauer said...

"All truth passes through three stages:

First, it is ridiculed;
Second, it is violently opposed; and
Third, it is accepted as self-evident."

Thanks for helping the MLM travel model is on its way towards acceptance.

[John]

Peter,

One other thing. My guess is you never have stepped foot in the home office of either World Ventures or YTB. If you are so interested in protecting the integrity of the industry doesn't it make sense that you at least know who these people are? I challenge you to do the right thing and fly to Dallas and St. Louis and meet with the management teams of both WorldVentures and YTB. If you are going to be judging these companies pretty harshly doesn't make sense that you do your homework first?

[Ric]

According to your homepage Peter you state that "Agencies offering photo ID cards are not really Host Agencies but are considered "card mills". Why is Travel Planners International not listed, they offer them?

[Rinder]

OK, so is Joystar/Travelstar a "Card Mill"? Or are they a legitimate agency?

[Joe]

John,

I encourage you to look at the YTB reported commission numbers. The average commission per rep per month, for those that actually make a commission, is less than $100 per person.

[John Newby, RTA]

There appears to be quite a bit of fear in the travel industry today.

If you have not been to YTB's home office in Wood River, Illinois? Why not? It will be worth your time to go to one of YTB's Red Carpet Days. The research will pay off handsomely, and it's free to learn. You may even be able to deduct your trip expenses off of your taxes. Check with your tax professional. YTB's network marketing model is quite good. Expect it to be around for a while.

"The New Professionals" by Charles W. King and James W. Robinson is a good book that details why the network marketing model is a superior business model. Network marketing is the current business trend. Yet, rather than take the time to research current trends, the self-proclaimed "legitimate" travel professionals are petitioning online (1800+ of them so far) against the very model that the true business professional is embracing. Very interesting.

Not only that, but it appears that many “legitimate travel professionals” are solidly behind travel suppliers that just recently told 160,000 customers:
Go Away Creepy Customers... We Don't Want Your Money or Your Referrals!?!
A lot of those 160,000 customers, many of them travel professionals in their own right, will go away. The likelihood that those individuals & travel professionals will refer Royal Caribbean Cruise Lines to their friends and customers is diminished.

Do you own any stock in Royal Caribbean International? How many customers can you tell to go away before you finally start asking them to come back? How can that make sense for the stock holders and RCCL employees? Customers are the lifeblood of business. There had to be a better way to deal with the card mills.

YTB International is not a card mill, for they provide extensive travel training on a regular ongoing basis. Not everyone learns from the training, but the training is required prior to certification. Check it out for yourself.

YTB sells online travel businesses to people who want to become business owners, and then they provide training. It works great. My business, Travlyr.com, paid off in the first 6 months. The travel business is a great business. It's my 20 year retirement plan.

Some estimates claim that the average YTB RTA earns less than $100/month in commissions. That may be true, but the business only costs $50/month. Add to that the $0.485 per mile vehicle tax deduction along with many other tax breaks that you earn when own a business, and you find the business to be quite profitable. Then, if you become a director with YTB you get company paid no questions asked comprehensive health insurance! YTB is a great company!

The smart travel professionals will do their due diligence and research prior to making judgments. YTB is attracting thousands of legitimate travel agents into the business. As a matter of fact, right now anyone with documentable travel credentials can get their YTB business up and running without having to pay the $449.95 initial fee... as long as they get started before December 2, 2007. Now those are smart “legitimate” travel business people. They do their due diligence. They will be the industry leaders of the future because they understand that by getting in front of the industry trends rather than complain about the industry changes, they can make a lot more money. They win big.

YTB International is coming on strong and taking the industry by storm. YTB will approach $1 Billion in travel related sales this year. YTB will expand into Canada 1st quarter of 2008 and then around the world. YTB is well managed. As a home-based agent YTB was a great choice.

A little bit of research goes a long way. Do yourself a favor and find out what you are missing rather than listen to hearsay. You snooze... you loose.

[John]

Joe,

What does that mean. The only people that should get paid are the people that actually sell the travel. If the others do not want to take advantage of the opportunity they should not be paid. It seems that Mr. Stilphen had no problem selling an agency to a MLM organization at one time.

http://www.usps.com/judicial/2002deci/md02-404id.htm

[Joe]

I am saying that in order to receive travel agent discounts and benefits a certain volume of travel sales need to be made per year.

IATA currently requires an agent to earn $5000 in commission per year before a travel agent card is granted.

A standard needs to be created in the industry and enforced by all suppliers.

[Joe]

"So do you feel proud they you are putting those families out of business by making the suppliers chose a side?"

I am also saying that the average commission per YTB rep is so small that it shouldn't be considered a business - but a hobby.

[Dani]

Traverus Travel is not a card mill! They do not release any cards to anyone unless thay have gone through a trainng to Certify them with a lengthy test they have to pass. Then and only then do they get a card. (IATAN) They are CTA's (Ceretified Travel Agents)not RTA's like all the others. Why would you catergorize them with MLM's? Card mills are different. There are a lot of MLM's out there that are honest and forthright. Travel related or not. I for one would join Traverus Travel over anything out there today. They are the only true On Line Travel Biz that is doing Travel business the right way!

[Joe]

Dani,

How much travel do they need to sell before they get the card?

IATAN rules state that an agent must earn $5000 commission per year before being eligible for a card.

[John]

I am also saying that the average commission per YTB rep is so small that it shouldn't be considered a business - but a hobby.

So for the RTA's that are actually booking travel and earning a living out if it it should be a business correct? Lets call a spade a spade. It should be a hobby for those not earning commissions but for those who are selling travel they should be eligible correct? I think most of the conventional travel agents are just embarrassed because they are not as needed in the market place as they thought. I have people with no travel experience selling travel these days. Let the market place decide who people want to book their travel
with not a bunch of whiners who exist in an obsolete business model.

[Jason]

"Why would you categorize them (meaning TraVerus) with MLM's?" Huh?? Probably because they ARE an MLM!!

"Card mills are different" Yeah, and they do not fall under that category

If I am understanding the policies correct at TraVerus, they issue the ID card to the individual under TraVerus' IATAN ID number. Once an agent makes enough sales, then they can apply for their own number.

It is a shame that any business has to be thrust under the microscope and take shots only because people do not like competition.

Last I knew, we were in the United States of America where we are granted freedom of choice to do things. As long as I am earning money to support my family and not "screaming for my right to receive Social Welfare"; as long as my business is not hurting people physically or financially; and as long as I am paying my taxes and obeying the letter of ALL laws......then may I please say.

LEAVE ME ALONE!! MIND YOUR OWN BUSINESS!! and BECAUSE "YOU" ARE FAILING IN "YOUR" BUSINESS AND "I" AM SUCCEEDING IN MINE, DOES NOT GIVE YOU THE RIGHT TO SHOOT ME DOWN!!

Grow up!!

To Your Future Success!!

[Mikey]

I really am begining to feel sorry for the "real" travel agents. Those of us who are seeing the YTB opportunity as a way out of daily grind, a J.O.B. (journey of the BROKE). It is a shame you feel threatened. Are you also angry at Expedia and the others like them for taking your business? We dont go to anyones brick and mortar travel agency and wait outside for your clients to leave and then try to get their business, come on. We are looking for people that are looking online for travel already. And if you knew about YTB, you'd also know that we are getting training, more and more all the time. Give us a chance, some of us will actually have some of the same training you have had already. You'd think in order to make things and keep things good for all, you'd at least encourage us and maybe even help us along the way. I really dont want your business! Your clients are just that, YOURS! Anyway, WE ARE HERE TO STAY! God Bless your business and agency with health, happiness, and financial growth. Amen