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YTB: The Good, The Bad and The Ugly

Ytb logo By Dan Mitchell, MLM Blog Correspondent

Nadine Godwin at Travel Weekly has a very balanced article about the YTB shenanigans.

Here's an excerpt:

When California sued YTB last summer, Attorney General Edmund G. Brown Jr. said he wanted to put the multilevel marketer out of business because it was operating an illegal pyramid scheme and deceiving the public about the income potential for participants.

Though the recently announced settlement in the California case by no means puts YTB out of business, it will significantly reshape the company by pushing it in the direction of a travel franchise operation, de-emphasizing its multilevel marketing division and making it less lucrative.

Yet, despite Brown’s victory cries, the settlement failed to produce a court ruling that answered the root question: Was YTB guilty of operating an illegal pyramid scheme?

Nevertheless, with the ink barely dry on the California settlement, Illinois jumped on the bandwagon. A suit filed this month in the state’s courts also accuses YTB of running an illegal pyramid scheme.

It is a charge the company has consistently denied. But determining which side is right depends on what differentiates a legitimate multilevel marketing model, also known as an MLM or network marketing model, from an illegal pyramid scheme.

Read the whole story...

May 28, 2009 in Network Marketing - MLM, Network Marketing News, Small Business, Travel | Permalink | Comments (0) | TrackBack (0)

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