If you know anyone that is involved in YTB, contact them ASAP! They need a life preserver because that ship is sinking. Contact Alan Andalon for a script and strategy.YTB (Your Travel Biz) is a Network Marketing Company that provides "Travel Services". Since 2007, this company has been in big trouble. The AG (Attorney General) of many states have filed Lawsuits against YTB for it's "Pyramid" type business structure.
Now, this company is moving to revamp itself to NUTRITIONALS & COSMETICS!!! This is not the first time this has happened to a service MLM company.
2008 - Light Year Alliance (Internet, Mobile phone & Telecom) released a Juice product!
2008 - YOR (Voip, Internet) Revamped to a Health & Wellness company. Now YOR HEALTH!
Here is the latest:
Feb 2010 - Illinois AG still has not let go. Franchise attempt still on hold till AG lets go? At this rate will franchise even fly as stringent as Francise law is. Several class action suits still in play against YTB. Bodies still dropping out? Staff cuts would indicate moving toward dead. They are moving toward nutritionals and cosmetics.
Source: MLM Watchdog
YTB lays off 49 workers, revamping
WOOD RIVER - YTB International Inc. has temporarily laid off 49 workers in an effort to stem losses, the company's CEO said.
The employees, who were laid off for a 90-day period beginning Jan. 22, represent about 25 percent of YTB's work force and are part of a plight driven by the economy.
"The economy is still impacting the travel business, and our sales are down," said Robert Van Patten, the company's president and CEO in a Telegraph interview Friday. "We needed to adjust our staff to reflect current volumes."
Because company officials hope the layoffs are temporary, no severance has been paid, and the company will continue to offer the affected employees medical benefits, he said.
"The positions have not been terminated, and we are hoping that the layoffs will not last longer than 90 days," Van Patten said. "The travel business usually picks up in the spring, so we are hoping to bring people back before the layoffs become permanent."
The largest sectors affected have been employees involved in customer support services, booking travel arrangements and accounting functions. The need for these positions directly relates to call volume and sales.
In an effort to strengthen its financial position, YTB has sold an office building in Edwardsville that the company no longer occupies. The building is located at 1 Country Club View Drive, near Sunset Hills Country Club.
On Jan. 20, the company filed documents with the Securities and Exchange Commission regarding the transaction in which it has offered the buyer, Normandy Corp., interim financing of $650,000 until it is able to close on a mortgage.
As part of a broader effort to increase its sales revenue, YTB has also taken steps to expand its shopping lines.
"We've focused on the travel side for the last six to seven years," Van Patten said. "We're expanding our shopping experience to offer proprietary arrangements with select vendors.
"We have beefed up our shopping line so there's more to offer, such as nutritional - dietary supplements - and an organic cosmetic line," he said. "The object is to present unique merchandise that people might not otherwise have access to."
Other product lines that have been introduced recently include purses with digitally transfixed images and digital picture frames with embedded images.
Although the company's legal woes remain unresolved, Van Patten is upbeat about YTB's ability to settle the matters.
The latest in a series of class action lawsuits filed against the company in U.S. District Court in East St. Louis by former agents was partially dismissed last summer, with the judge noting that the court did not have jurisdiction in the case and allowing the plaintiffs the ability to refile. Motions are still pending.
Van Patten said he expects the suit to be refiled this month in the same court.
"We've been successful to date, and we'll be successful again," Van Patten said.
Other pending or former suits have pounced on the company's agent recruiting and marketing, claiming the operation is akin to a pyramid scheme, which the company has consistently denied, although it has slowly been revamping its business model.
Illinois Attorney General Lisa Madigan also has filed suit against three YTB subsidiaries and some of its executives, claiming unfair competition and advertising. A similar suit had been filed in California and later settled for $1 million.
"The Illinois suit was filed the day we settled in California," Van Patten said. "Part of the settlement in California is that we are converting to a franchise model, with a 14-day waiting period following enrollment."
YTB has filed a similar application in Illinois, which could determine the outcome of the attorney's general's action.
Van Patten took over last fall on the heels of the resignations of company founder, chairman and director J. Lloyd "Coach" Tomer, his son and chief executive officer J. Scott Tomer and chief operating officer and president Andrew Cauthen, all of whom took lesser roles with the organization.
FYI, President and COO Andy Cauthen just abruptly resigned
ReplyDeletehttp://notravelmlms.blogspot.com/2010/02/huge-news-andy-cauthen-resigns.html