OT: YTB(Your Travel Biz)...Pyramid Scheme?

I got a buddy getting involved w/ YTB.com: a publicly traded company that has all of the classic signs of a pyramid scheme. It's basically selling travel like an expedia from your own little website that they give you, and each person you recruit you get a percentage of all commissions they sell and so on. You need $500 to "sign up" and $50 a month to "maintain the site."

I warned him to stay away, but I think he may want more convincing. The reason is because his mom is elderly, and she got involved and she has made $100K in 9 months. So he sees the hard evidence that shes making that much money and its hard for him to resist. Is anyone familiar with this company or have personal stories to share?

Here is what I have already told him:

1. Just bc a company is publicly traded doesnt mean they arent involved in illegal activity. Especially when they are an OTC BB stock which isnt as heavily monitored as NYSE and NASDAQ.

2. They emphasize recruiting instead of selling travel, classic pyramid sign.

3. Their publicly displayed financials (since they are a publicly traded company), show more and more of a loss, each year that passes. (A sign that the pyramid is getting to big and they cant pay out commissions.

4. Pyramid schemes do pay money out, so its not impossible that she has made money, but one it gets too big for its own good, it collapses.

5. A saw a message board where the BBB did a write up on how they are suspected of being a pyramid scheme. But when I go to BBB's website, one of the branch locations of YTB is apparently a "member" of the BBB.

I also added a few other things. Anyone have any other reasons for me that may have more experience of why this is a pyramid scheme and that he should stay away?

A buddy of mine is like a regional sales whatever and he talked me into getting in it. I owed him one and did just that. I guess it is ok if you are a pyramid type of guy, which I am not. I can not call on friends and pressure them into getting into anything. I have no problem selling strangers, but not friends. I would advise him to attend a "regional" meeting sometime and just to take a look around him at the people that are involved in this. My first month, I went over to Miami and attended one and right away realized it was a not for me and not people I want to be associated with. There are some very succesful people in the company who make a lot of money, but very few and far between. Most of the higher ups made their bones in other pyramid companies like excel and scamway.

Very sharp read Box-you're dead on.

i know we have one member of the rx in ytb trav el........is anyone a memeber of bio performanc.....a gas additive pill????????///

By the way there is a thread in the financial room about its stock started by kidslick

anybody here in the mona vie business ?

i think i spelled it right.

a girl i know has been all over me to join in.. aint happening.

I drank some of that shit and I must say it was almost as good as Welches grape juice....

<TABLE height="100%" cellSpacing=0 cellPadding=0 width=579 border=0><TBODY><TR><TD width=580 colSpan=3 height=51><TABLE height=53 cellSpacing=0 cellPadding=0 width=579 border=0><TBODY><TR><TD class=headteal id=tdPageTitle width=579>Better Business Bureau Advertising Review: Your Travel Biz</TD></TR><TR><TD class=headteal2 height=18></TD></TR></TBODY></TABLE></TD></TR><TR><TD vAlign=top bgColor=#36559b> </TD><TD vAlign=top width=577><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD class=headerbox1 vAlign=top>BUSINESS LINK - July 2005 </TD></TR><TR><TD class=maintextbox vAlign=top width=574><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD width=10></TD><TD width=558>
In its continuing review of advertising companies use to market their products and services, the Better Business Bureau challenges claims that appear to be misleading and publishes the results of its review. One of its most recent reviews was of the advertising of Your Travel Biz, also known as yourtravelbiznet.com and YTB Net.com, as well as various other names of individuals who are representatives of the company.
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This company offers a marketing opportunity selling online travel agencies at several levels via a multi-marketing plan. Independent Marketing Representatives (IMRs) sell online agencies, enroll Referring Travel Agents (RTAs), and sponsor other representatives. They cannot sell travel, nor do they receive travel credentials. RTAs are required to pay $49.95 a month to maintain a travel website. They refer people to their own website to book travel and can earn commissions from travel booked through their personalized site or by direct referral.
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According to the company, you reach maximum earning potential by developing three teams. The "First Team" is complete when three representatives have been personally sponsored and six online travel agencies activated. The IMR earns 50 percent commission from all sales. Once the First Team's requirements have been met, IMRs qualify to advance to the next level, the "Power Team." This team includes the first team of every representative in your Power Team. When one of that Power Team starts a Power Team, that team becomes a first generation "Dream Team" to the original IMR. This building can continue through six generations of Power Teams.
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We consider this company's advertising to be misleading because of its website claims about the ease and ability to earn money using the company's methods and marketing techniques. One page offers the opportunity to earn bonuses such as a choice of vehicle valued at up to $50,000 and a $100,000 bonus.
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The company also claims that travel agents will receive perks of upgrades, familiarization (fam) trips, discounts and "specials." Testimonials tell of free hotel upgrades and huge discounts obtained just by presenting travel agent credentials from the company.
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We believe the earnings claims are exaggerated and we consider testimonials to be invalid as evidence of the truth of the company's advertising.
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We believe this company may be engaged in a pyramid marketing plan because of their apparent emphasis on recruiting rather than selling travel. Those who buy into the company's team become legally responsible for the claims they make about their company, its product, and the business opportunities it offers. That is true even if the claims are presented in a company brochure or advertising flyer.
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http://www.labbb.org/BBBWeb/Forms/General/BBBNewsArchivesPageDetail.aspx?News_ID=124&sm=
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Box, got a friend doing the same thing. Of course, he'd never admit to selling Amway either

When I was in high school, I was dying to get into one of these MLM gigs. At first glance, it looks like an easy road to riches.

Damn good looking scams, that's for sure!

tell your freind to just look at chris benoit and all the hassle with colon cleanse. Sure he made a ton of money with it and so did vince but now that the pressure is on the executive management , their pointing their finger at benoit , tell him to run fast, benoit demo'd the enema cocktail for potential investors taht resulted in huge gains for the execs and look what they did to benoit, what would happen to your friend?? think about it.

It's simple, some of these programs DO in fact work and actually pay out good money, but most do not pay and are complete scams, or will pay for a little while and then stop paying. The challenge is deciphering which one will be around the longest and is the most stable. Once you have achieved that, then you are on your way to making some good money. I have known quite a few people who made their livings doing programs such as YTB and a select few that still are. It is possible.

ytb is lacking star power, they need shatner or cosby or someone to rep it big time. Thats how colon cleanse went to the next level. Trust me, when Chris Benoit administers himself an enama cocktail (with the help of a sexy assistant i might ad , think miss elizabeth), then a week later beats the daylights outta some punk on tv, all those investors were scrambling to join colon cleanse. they all made a mint off of benoit, before you knew it he was doing enemas for investors from tampa to minneapolis to los angelas.