The once-huge MLM travel company, YTB (also known as Your Travel Business and First Travel Alliance) has filed for bankruptcy citing assets of $1.3 million and liabilities exceeding $7 million according to a report in the St. Louis Post-Dispatch.
At one time, YTB boasted that they had nearly 50,000 "travel agents" and were positioned to be the largest travel agency in the world by 2010. However, lawsuits filed by the Attorneys General in California and Illinois alleging they were little more than a pyramid scheme began their slide into travel obscurity. Both lawsuits were settled and YTB was required to change the way they do business.
That change brought a new focus and they began to sell on-line malls, girdles, coffee, insurance, child protection software, photo frames and many other products while travel took a backseat.
The travel portion was eventually spun off and re-branded by Sixth Scott, Inc. dba as First Travel Alliance. With the spin off, promised were made that YTB would once again be able to sell the products of the travel suppliers who had blacklisted them many years ago for their questionable business practices.
Facts and documents clearly demonstrated that the travel sales amounted to little more than vacations purchased at a discount by their so-called agents. While the average "agent" paid more than $1000 a year to the company for a replicated website, their earnings were typically less than $600. However, the unrealistic promises of their charismatic leaders, Coach Tomer and his son Scott, kept people hooked. The golden ring was always theirs on the next spin of the carousel. The carrot was always dangling in front of them. Wealth and prosperity were just another monthly fee away.
In fact, there were several people who were early entrants into the program (most of whom have moved onto other MLMs) who made a lot of money. The bulk of any money (and all bonuses) were tied to the number of people you recruited and the number of people those recruits recruited, etc.
The initial entry to the program was several hundred dollars and $50 a month...plus options like a magazine, CD, attendance at recruiting events, conventions, etc.
YTB, a publicly traded company has not filed any of the legally required SEC reports since the 3rd quarter of 2011 and recently issued a statement that they believe their past filings were materially incorrect. Their stock continues to trade at a penny or less.Email ThisBlogThis!Share to TwitterShare to FacebookPosted byJohnat11:01 AM
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