Reality Check: Raising the Red Flags on YTB International

YTB International (YTBL.PK) (YourTravelBiz.com) has a Market Cap north of $450 million with no current financials. Any stock that rises straight up 900% in two months is always an object of interest.

Add to that a publicly traded company based on a multi-level marketing scheme [MLM]. These are always intriguing because of the potential for Ponzi-scheme type abuses.

Add to that a publicly traded company that hasn't reported its financials in over a year: one that trades on the pink sheets because of lack of adequate financial reporting.

.....One that has recently declared its historical financials for at least 3 prior years invalid and in need of restatement.

......One that, the last time it reported its numbers, had three times the revenues from selling business opportunities than it had from selling its core product.

.....One that guarantees a minimum commission for recruiting even more participants.

.....One whose operators include a minister whose primary accomplishment is building a large church congregation.

... .and finally, one whose compensation program is tied to the promise to issue large blocks of stock at a set price less than 6% of today's market price ($1 a share).

Seems impossible, but its all true.

Multi-level marketing is not illegal. A few multi-level marketing companies have been very successful. But far more collapse because of the potential abuses in the business structure that create the conditions of a Ponzi scheme.

Among the huge red flags swirling around this issue:

What are the real numbers? Is this company even profitable net of its multi-level compensation promises?

What are the legal implications and financial effects of promises of large blocks of below-market stock into an MLM organization st $1 a share?

Would regulators be concerned if MLM participants are being encouraged in any official or unofficial way to form an affinity group to buy the stock ?

And of course --- what has changed for this company in the last two months ?

Cautious Investing To All.

Disclosure: Author is short YTBL.PK.

Comments

[rebeccadowney]

I have a YTB travel website and the stock price is always in the upper right hand corner. I thought a lot of people were just buying in but who was doing the dumping? I watch the stock and trade it. If you are short the stock, you must have made about 3 good swipes at this in the last 2 weeks! After reading your article, I called others more involved in YTB than I and found out you were exactly right about large blocks of stock being issued. The word is that people are offered cash or stock and those bonuses are huge-like 1M shares. This info is not from YTB but that is what I heard today after mentioning your article to someone. Keep digging. I appreciate it.

2007 Feb 22 10:36 PM

[oncoursellc]

Rebecca, how long have you been in YTB and what is your web address? Mine is booklowertravel.com and I have been in YTB now for almost two months and doing very well with it. This is my primary source of income, so I am going to succeed. There is no question about that. I hate working for someone else. I am enjoying working from home with YTB and helping others to succeed. Have you invested in YTB stock or are you just recruiting and selling travel.

2007 May 13 03:08 PM

[suema2006]

Rebecca,

I'd love to get in touch with you about YTB and what's going on with them.

Susan
Melrose,Ma.

2007 May 11 04:15 PM

[johnafonso1]

I have my own ytb web page donerightdestinations...., I be glad to answer any questions. I can bee reached at [e-mail].

2007 Aug 01 08:27 PM

[oncoursellc]

I also have a YTB travel website at booklowertravel.com and I find that the reason for doing the business is primarily to help others. I am interested in the stock prices, but I am more for recruiting others and pointing people to my website. YTB has been around long enough to know that stocks will go up and down and people who are on the outside looking in will also find the negative in what a company does or does not do. I am doing absolutely well with YTB and it is only going to get better.

2007 May 13 03:06 PM

[Heartprints143]

Help others taking $499.99 from their hard earned money as a fee to join? That is hardly helping others .
You make promises and then with your quotas many sturggle and quit because the promise they got has not been fulfilled. Ask the ones struggling if they are making the money they expected to make when they joined? When a company charges that high fee 85% of the money goes only to 3% of the people.
I spoke to one person from YTB and they told me that they do not bother with people who do not have $499.99. That denies people who need to earn extra income the opportunity to put food on their table, save them from perhaps foreclosure on thier house and have to declare bankruptsy. I could go on and on.
What in your estimation constitutes a good company. I think it is where the CEO and President does everyhting to put money in your pocket not take it out of your pocket. Explain this, why are so many leaving your company if it is so good? They are leaving in droves.
Why not get involved in an honest company that you make money with people instead of "OFF" of them. You want to see a good company I'll show you a great company and I'll guaranty you won't find a thing wrong with it in fact it put all the others to shame.

BUYER BEWARE..KEEP YOUR HARD EARNED MONEY IN YOUR POCKET AND JOIN SOMETHING THAT DOES NOT HYPE YOU AND DECEIVE YOU. You've seen the rest, now experience the best and not because I'm involved in it. Rated number one from Wall Street in NY

In order to make a quality decision on a good company you need all the facts with no hype just honesty from the beginning with a CEO and President that does not deceive anyone. THat is what I call helping people. Get in touch with me if interested. I'm dong very well and most of the people in my business came for your GREAT comapany. When you see the difference you too will be sold that it is a great comapny. 508 210 3117 Please ask for Sheila I can sleep very well nights knowing I have truly helped others. May G-d Bless each and everyone of us and align yourself with a company with integrity. That is the most important.

2007 Jul 04 09:27 PM

[dangiacoletto]

Shelia

Please send me information on your biz op. My daughter joined YTB without checking out much and is wanting me to join be cause I travel extensively and know a ot of peopel in busieness who book their own travel.

I am interested in the concept but want to make sure I am with the right organization.

Dan

eamil address [e-mail]

2007 Jul 23 12:45 PM

[negive]

dangiacoletto: If your daughter is part of YTB, I think it's a good idea to help her. You don't have to be part of the company, but you and friends can book your traveling from her website. It will be done from another site anyway or travel agency and others will get the commisions also, so why give the business to someone else when you can help your daughter? I haven't heard any complain about booking on any YTB website. May GOD bless you.

2007 Oct 11 02:39 AM

[kimsprowl]

Hi, I am thinking about YTB and therefore doing some research. Please tell me about the company you are speaking of that you say is really great. [e-mail]

2007 Aug 13 06:17 PM

[laymanjohn]

Good evening Sheila,

I have been contacted by a representative from YTB wanting me to join. I am glad I found your article before I jumped in. I have been scammed before and cannot afford to be again. What is the opportunity you mentioned in your article?

Thanks.

Mr. John Camp

2007 Aug 22 06:08 PM

[laymanjohn]

Sheila,

My email is [e-mail]

Thanks again.

2007 Aug 22 06:11 PM

[MaryTaylor]

YTB is no scam, this article is one persons opinoin and is not 100% correct, but hey your decisions are up to you! For those of us that jump in scam is that last thing we would call it. Read further check it out more, you won't regret it!

2007 Oct 17 01:52 PM

[User 104367]

I am also deciding about ytb. please tell me about your company.
[e-mail]

2007 Aug 29 01:17 PM

[suema2006]

User 104367, would you please email me at [e-mail] or call me at 781-665-0710 ET. I've already emailed you and I haven't had a response yet. I emailed you on Aug. 31st. I'm a Regional Executive with Traverus Travel.

Susan

2007 Sep 01 07:43 PM

[suema2006]

User 104367, If you are the person who called me this afternoon, I'd appreciate it if you would call me back or you can respond to the email that I sent you before. If you aren't, give me a call or respond to the email that I sent you. [e-mail] or 781-665-0710 ET Thanks, Susan

2007 Sep 02 07:11 PM

[felix]

Check it out here.

theytb.com

2007 Sep 08 01:00 PM

[User 105097]

Hi Sheila. I too have been approached to join YTB. My understanding for a brief period of time they are waiving the $499. start up fee. You only pay the 49.95 web site fee. What do you think of this and what is your company!

Thanks so much, Kathy @ [e-mail]

2007 Sep 03 08:16 PM

[i_want_more]

you know, it always comes back to freedom of choice. whether you like it or not associates of ytb are still running their own legitimate, LEGAL business...and so if they choose not to associate with those who cannot afford the $500, then that is their choice.

you must also look at those who are quick to jump without doing their research or ensuring that this is the right thing for them. we aren't all meant to be salesmen or travel women. if you are not outgoing, creative, and have an entrepreneur way of thinking than ytb, as well as many other endeavors, are not for you.

i wish you all the best in your values and your way of life, but we have to stop "babying" each other and make each other stand up and make well thought out decisions.

and NO, i am not in YTB...but i might just go ahead and do it!

2007 Oct 03 01:27 AM

[MaryTaylor]

You have no idea what you are saying here, there is an option to get into YTB for free. If people are leaving in herds as you claim, then why are our numbers growing so fast. I never have to put down another company to make YTB look better, if it isn't for you, then go find what is! The travel booked on our sites are the same vendors that are on Expedia, Travelocity, or any of the other big names. Our booking engine is extremely high tech, you don't get that for free. By the way we have no time limits at all and no quotas! Our stock is purchased the same way any other stock is purchased, the only difference is with YTB you have the option to take stock or cash for your bonus! Look around you will find negative people in every business out there! By the way does your owner meet with anyone in the company every Tuesday and put on enormous presentations for free every singe week? Save the bashing for when you have the details, you just turned every YTB person on this site off to your business idea, we don't deal in negatives! God Bless!

2007 Oct 17 02:08 PM

[True YTB Supporter]

Hey Sheila,

Whatz up? I just had to comment on this...You are sleeping on YTB. From the top to the bottom this company has a big heart! Do you know who Juliet St. John is? Read about her (Google it if you don't ).

This woman is a primary example of how big hearted this company's founder is and its successors. Yes I have a YTB site-however it took me since November of 2004 until September of 2007 to join!

I wasn't convinced enought at first, but definately the opportunity did intrique my interest-just as it does yours. Just know that everyone that joins this company did not pay that $499.00 often times it was waived, but the bonus structure remained the same. Did you know that this company will pay you $1300.00 after you have personally sponsored 12 RTA's? And thereafter every 6 RTA's will=another $1300.00 payable to you!

Do the MATH

See this world is about MATH & SCIENCE that's it...
If it don't make $$$$ it won't make sense (cents) RIGHT?

Avon, Marykay, Ameriscience, Ameriplan, Amway, Prepaid Legal, and the otherones that may work for some people do not have this type of compensation plan. The stock speaks for itself. Ask yourself, if your stock was rising like this would you open this door of opportunity to everyone for FREE-Hell NO

The Tomer Family has helped so many people in the business with just the moral support alone. All types of people-Rich & Poor.

I am a Christian and YTB is my testimony, I have never felt so accepted by another family-(Home, Church, Associations) in my life. Come to the RED Carpet and see the room filled with smiling faces and experience the joy of this company first hand for yourself and I promise you that the presence of the Lord is in that room.

Tuesdays-Collinsville IL

2007 Nov 12 11:41 PM