R0701

YTB Travel Network Passport to Giving

Fundraising Program

Helping Non-Profits Make a Difference

Joshua Killett

YTB Corporate Consultant

(719) 650-0823

Statistics and Facts*

• Online donating is a growing source of income.

• Many donors are affluent.

• Trends prove that donors are beginning to give to more than one charity online.

• Donors choose monthly giving more than single giving in comparison to other methods of giving.

• Donors are more trusting of charities online than other institutions online (i.e. giving e-mail, opening attachments, links).

• Online programs will attract new age groups.

*HJC New Media Direct Marketing Association Nonprofit Federation

Statistics and Facts*

• In 1999, estimated total online

giving: $10 million

• In 2000, estimated total online

giving: $250 million

• Prediction: By 2010 1/3 of

money donated will be given

online. At current levels (2003),

this would represent $80 billion

Source: Harvard University, Initiative on Social Enterprise Report (Oct 00)

Statistics and Facts*

• Americans overwhelmingly agree that a company’s

support for a charitable cause impacts their buying

decisions.

• According to a Cone/Roper study, more than 86%

of American’s would be likely to switch brands to

support a cause, when price and quality are equal.

The Non-Profit Dilemma

EducationalEnvironmental

Religious

Social Medical

Funding is a never ending challenge for non-profits

Take Your Fund Raising Over the Top !

Travel is the Ultimate Fund Raiser!

Our innovative affinity program provides you with your own online travel website (similar to Expedia®) which can help generate thousands of dollars for your organization when members and supporters book their personal travel through you.

No Matter What Your Cause…

A Simple Shift

Simply stated, all you are saying to your members or supporters is this:

“We know you are going to book travel online. All we are asking is that you book your travel with us. You’ll receive competitive rates or better and you’ll be helping a cause you believe in.”

Even a relatively low participation rate by membership can produce significant funds.

WORLD’S LARGEST INDUSTRY

• Travel is the world’s largest industry and is growing 23%

faster than the global economy

• $1.3 trillion industry in the U.S. alone

• Travel is a “big ticket” item producing significant

commissions

UNIVERSAL APPEAL & DEMAND

• Everyone loves to travel

• Travel is expected to double by the end of the decade

INDUSTRY MARKET SHIFT

• On-line travel is the fastest growing commercial Internet

segment

Why Travel?

• Founded in January 2001 with the goal of becoming the world’s largest travel company by 2011

• Founded by Lloyd “Coach” Tomer, a retired pastor who understands the challenges of non-profit organizations.

• Wholly-owned subsidiary of YTB International, a publicly-traded company (YTBL.PK)

YTB Travel Network

Staff grew from 18 in 2003 to over 325 in 2007

New Home OfficeWood River, IL • 122,000 sq. ft.

YTB Travel Network earned the Pinnacle Award, Carnival Cruise Lines’ top award 4 Consecutive Years

YTB Travel Network

• Travel is YTB’s business.

• Carnival is the #1 Cruise seller in the world

• Owns 60% of Cruise Industry

As your supporters book

their personal and

business travel on your

site, you earn 60% of the

commissions. The

commissions are paid to

you as royalties.

Your Organization’s “Private Label” Travel Website.

The booking engine

uses the same

technology and provides

the same features and

prices as other online

booking engines such as

Expedia®, Orbitz® and

Travelocity®.

Travel Resources -

Provides access to travel

related information and

services.

Tabbed menus -Contains

additional tour packages,

hotel options, cruise

choices and event

reservations.

General Search - Allows

immediate access to

airline, hotels, rental cars

and cruises reservations.

Advanced search and air

consolidator selection

provides additional search

options.

Travel Deals -Special

travel offers keep

supporters coming back!

Travel Industry Overview

Our partners are the biggest names in travel. They provide your inventory!

YTB partners are the biggest names in the industry.

Over 55,000 Hotels and Resorts, 60 Airlines, and All major Cruise Lines, Rental Cars and Tour companies (Accept Royal Caribbean)

World Wide Web

Secured

85% of all travel booked

Excess Inventor

yMe

You

Yall

Travel VendorsInternet

Online Travel Agencies

80% MarketingTV, Radio, etc.

Marketing

Direct Selling= Leverage

Perks & FAM

50-100%

A LOT doing a LITTLE and a LITTLE doing a LOT.

60% Travel Commission Example Group Cruise Travel Sale Group Hotel Sale

Group Sale:  $20,000

  YTB Carnival 16%:   $3200

          Org 60%:   $1920

         

Group Sale: $8000

YTB Hotel 10%: $800

Org 60%: $480

Domestic Air Fair Sales

YTB Booking Fees: $5 Passengers: 3 Group Sale: $15 Org 60%: $9

Note: Travel Commissions are paid on 25th of each month after the travel is taken and the vendor has paid YTB (30 Days)

Retail e-Commerce Overview

Customers Retail

E-Commerce3.4% of Total Retail Sales

Wal-MartKmart

Office MaxStaples

700 Retailers

Retail E-

Commerce3.4% of Total Retail Sales

Wal-MartKmart

Office MaxStaples

700 RetailersCustomer

s

Total Retail Sales are ~ $4 Trillion

E-Commerce Annual Retail Sales are ~ $136 Billion

$ Marketing CampaignTV, Newspapers, etc.

Direct Selling

Cash Backs

Referral Marketing

% of Revenue Generated

Traditional Marketing

Shop-YTB Explained

World Wide Web

Secured

$136 Billion

3.4% of Total Retail Sales

Me

You

Yall

Retail VendorsInternet

80% MarketingTV, Radio, etc.

Marketing

Direct Selling

= Leverage

Perks & Discounts

RTA Earns 50% of YTB’s Commission

A LOT doing a LITTLE and a LITTLE doing a LOT.

FREEshopYTB Account

+700 RetailStores

% Cash Back Savings

YTB earns % of Revenue

Generated

Retail Business Model

shopYTB Commission Examples (4%) Famous Footwear Example

Computer Sale Example

Product Purchased: $121

shopYTB Cash Back 7.5 %: $9

YTB commission 4%: $4.8

          Org 50%: $2.4

         

Product Purchased: $2000

shopYTB Cash Back 5%: $100

YTB commission 4%: $80

Org 50%: $40

Note: Cash Back and Commissions are paid on 21th of each month after the product has been purchased. Earnings and cash back will be accredited to shopYTB account. Checks will be sent out when account is greater $15.

Network Buying Power Example

Network = 2000 Monthly Customer purchase: $100 Product Purchased: $200,000 shopYTB Cash Back 5%: $10,000 YTB Commission 4%: $8000 Org 50%: $4000

Great fundraising program for Non-Profits

Your Organization Will Earn $158

2 People – 7 Day Caribbean CruiseLet’s Compare

Produce a Financial Windfall

25,000 Total Membership of Organization

x 1% participation by members

= 250 Participating Members

x $4,200 average yearly travel purchases per family

x 4% Average commission rate

= $ 42,000 in travel commissions

x 60% association percentage

= $ 25,200 in Revenue for Your Organization

With the YTB program 60% of all travel commissions go directly

to your organization as royalties. Below is an example of the

income potential of an organization.

Figures provided are target estimates and do not imply guaranteed performance. To achieve maximum performance organizations must effectively communicate the travel program to their supporters.

Group Travel

We also provide group travel services free of charge! No matter

what your cause, group travel can be the perfect complement to

your organization!

Group travel can:

• Produce significant commissions back to your organization.

• Provide your supporters with the opportunity to travel at very reasonable prices.

• Generate excitement for your organization.

• Be unbelievably easy to organize and implement!

Group travel must comply to YTB Group Travel Guidelines

Group Travel

* Commissions are paid to your organization as royalties •  Group travel must comply to YTB Group Travel Guidelines.

Commissions* Matching Donations Earned Staterooms

As a fundraiser, it’s hard to beat a group cruise.

• You receive 60% of the travel commissions, paid as royalties.

• Plus, many cruise lines have matching donation programs.

• Plus, you may earn 1 stateroom for every 15 booked.

When you add it all up, it can mean a huge windfall for your organization.

For details of these programs, please contact YTB’s Group Travel Specialist.

Group Cruise Example

* All figures although realistic are estimations. Figures are based on Carnival Cruise Lines’ Cruising for Charity Program.

Let’s look at the potential financial impact of a fundraising cruise.

Assumptions:

• 100 Person, 7 day cruise

• Average cost per person, $760, plus $100 markup of cruise by organization: total cost per person - $860

• 15% commission rate

• $35.00 matching donation per person from cruise line.

Commissions, paid as royalties $6,634.80

3 Earned Staterooms (resold at face value) $4,560.00

Donation from Supporters $10,000.00

Matching Donation from cruise line $3,500.00

Total $24,694.80*!

Maximizing Your YTB Travel Program

1. Your Organization Travel

Get your program off to a fast start! Make sure all your organization’s internal travel is booked on your website.

2. Personal Travel of Supporters

Let’s get your supporters involved! Everyone, including your supporters is traveling...personal and business travel, vacations and cruises. And, each trip produces substantial commissions for your organization. And, it won’t cost them a penny.

3. Group Travel

Let us help plan a series of group excursions for your supporters. Future slides show just how easy and profitable group travel can be with YTB!

It’s as Easy as 1,2,3...

Marketing and Promotion

YTB has a variety of marketing campaigns and tools to help market the travel program to your supporters. We can provide camera ready master copies of marketing material including:

Display ads

Posters

Inserts

Emails

Website Banners

Desktop Icons

YTB Fundraising ConsultantEvery association account in the YTB Travel Affinity program is

assigned their own Fundraising Consultant. At YTB we want our

program to be a resounding success for your organization. Your

Fundraising Consultant will get to know your organization and will

make recommendations on how, together, we can maximize

the fundraising from your travel

program. We have a number of

marketing programs in addition

to group travel ideas they will

discuss with you to get your

travel program off to a fast start!

A Service to your Supporters

Who doesn’t love to travel…and who doesn’t love great travel

prices? Your travel program is much more than just a fundraising

program. As a service to

your supporters, it puts the “fun”

into fundraising! Through your

travel program we will bring great

travel opportunities to your

supporters at some of the best

prices found on the internet. And,

you get all the credit!

Getting Started

This places your organization on our “Do Not Contact” list to prevent being called by other Association Specialists.

YTB will provide information needed for board approval. Plus, we will conduct conference calls or additional presentations.

Once application has been received the booking engine can usually be online in 7-10 business days.

YTB Reviews application for compliance

YTB will create, maintain, and house on a secured server a “Private Label” booking engine for your organization.

YTB will provide marketing assistance to help promote affinity program to your supporters.

Funds are distributed to your organization after being received by YTB Travel.

Your Organization is Registered with YTB

Conduct Due Diligence

Complete and Submit Application

YTB Reviews Application

YTB Customizes Your Booking Engine

Marketing/Promotion Program Initiated

Receive Royalty Checks from YTB

Summary of Features

& Benefits

• Booking engine provides

supporters with

competitive online rates.

• Low participation rate by

supporters still produces

significant revenue.

• Revenue paid by third

party vendors not

supporters.

• Program operates 24/7

producing perpetual

income.

• “Private Label” booking

engine provides additional

organization exposure to

supporters.

Summary of Features

& Benefits

• Trackable commissions

• Customized

marketing program

• No Long-term

Commitment

• Assigned Account

Manager and group travel

expert.

• High perceived

value.

• Program cost is

only a one time fee

of $499.95