Safety Harbor, FL (PressExposure) August 16, 2008 -- For those currently operating an online travel home based business, or considering starting one, questions are flying and brewing in the wake of the $25 million dollar lawsuit filed on August 5, 2008 against YTB (Your Travel Biz).
This week, the LA Times reported that the Attorney General for the State of California filed a $25 million dollar lawsuit against YTB for being an illegal pyramid scheme. YTB offers distributors individual travel agent status, which then provides access to travel agent perks, such as FAM (familiarization trips exclusive to travel agents), and commissions on travel booked on the YTB website. Distributors also earn commissions from recruiting others. In November, 2007, Royal Carribean black-listed YTB from booking cruises and other major cruiselines followed suit. To make matters worse, the LA Times article reported that YTB recently just lost its IATAN (International Airlines Travel Agent Network) accreditation.
Possibly in response to knowing this was about to take place, YTB recently announced that it is unveiling its new franchise "remodeling" for its distributors at their annual convention this month. The LA Times also reported that based on its previous and current model, the company had close to 200,000 distributors, no-one was selling any travel, and 62% of distributors weren't making any money at all.
So what is a distributor currently in a travel home based business supposed to make of all this? Or, what does someone who is looking to start one choose to do in light of this information?
The fact is that travel is a $7 trillion dollar industry, - meaning that every minute $14 million dollars is being spent. Its a fun, easy product to sell. In no way should this event deter potential home-based travel entrepreneurs.
The best thing to do is to ask the right questions when considering starting a travel business, and if you are already in one, take a look at the company structure and ensure that certain key elements are present that satisfy the travel industry, and the attorney general requirements to be considered a "legitimate" direct sales company.
Here are some key facts about Platinum One Destinations that make it a safe and solid choice in light of the recent developments in the industry.
â¢ P1D pays out 60% on average of profits earned back to distributors. So if the company is making money - the distributors are actually making more. â¢ Platinum One Destinations and it's parent company NetTrav, Inc. is a fully accredited, licensed and bonded, full service travel company. And the company is either registered or applied to operate in all 50 states to be a "seller of travel". P1D is also registered with the Better Business Bureau with a satisfactory rating. â¢ The company does not certify travel agents or issue travel agent cards. The company itself is the "seller of travel", with full IATAN and CLIA accreditations. Distributors of Platinum One Destinations refer consumers to P1D's products and services, and the company shares their profits and commissions with the distributors. â¢It is not required to become a distributor in order to own Platinum One Destinations products. Nor is it necessary to buy products to become a distributor. The products are stand-alone and the consumer may enjoy the wholesale pricing and savings without buying in to the "program". It is not required to purchase product to sell product. Although higher profit sharing potential is available for those able and willing to invest in product. â¢The compensation plan and the business model for Platinum One Destinations has been reviewed by some of the top travel and business attorneys in the nation, including Attorney Alexander Anolik, who has been featured on ABC, CBS, CNN, NBC, MSNBC, CNBC, and "48 Hours" and NBC's "Dateline" where he has analyzed the travel industry and explained consumer rights. He has assisted in research and has appeared on "Inside Edition" and "Fox News". Anolik has been cited by the United States 9th Circuit Court of Appeals, CondÃ© Nast travel magazine, The Wall Street Journal, New York Times, USA Today and more than 100 trade and international periodicals. The San Francisco-based attorney has testified as an expert in Federal and State Courts and before various other government entities in the United States and throughout the world. â¢The NetTrav personal travel portal, available to consumers as stand-alone, and also as a product that can be referred for profit, is positioned to encourage travel dollars in the travel industry. The affordable $99 per year fee, with price match guarantee to sites like Expedia, Travelocity, and Orbitz, gives owners the ability to earn 50% of the standard commissions back as rebates for their own personal travel as well as for any other travel booked on their site. And, the company pays a 50% commission back to the distributor on profits earned by P1D from the sale of the portal itself.
The fact that people didn't make money with YTB is not that shocking - given that most new businesses - 3 out of 5 actually - fail - whether they be traditional brick and mortar, or MLM. It's a known fact that network marketing has an attrition rate that is comparable to the standard business failure statistic - at about 80%... Are these numbers the fault of the direct sales company? the product? the sponsor? the training? the support? Not likely.
The main reason that most people in any business fail is that for many, it can be scary at first to be self employed. Most people are programmed to work and receive a paycheck, and building a successful business takes time and years. It takes a tremendous amount of personal courage, determination, self discipline, and motivation to step outside of the norm and create a life by design despite events like the one this week against YTB.
Statistics show that the most millionaires to be made in America in the coming years will be mostly from direct sales opportunities - NOT a possibility for many climbing a corporate ladder - the millionaires in corporate America are reserved for the CEO's and shareholders only.
For the YTB distributors and their families, this is a time for reflection and decision-making in light of these events. While the outcome of the YTB lawsuit is uncertain, what is certain is that those YTB distributors who choose not to let these events deter them in their pursuit of personal and financial freedom - will survive - and thrive. Platinum One Destinations may just be the safe alternative they are seeking at this time.