October 22, 2010 — Going back several decades the necessity for a reserve fund policy was initiated, in part, due to ‘Heat-Merchants’ (aka: Con Artists) working the sales lines because these thieves would tell sales guests just about anything imaginable regarding the benefits, features, uses, etc. of TS ownership in order to get the prospects to ‘buy’ today!
Other reps would stand back in near awe, as the cons’ volume was often double, triple or more of everyone else. Then, after collecting huge commissions and when the ‘heat’ would catch up with them they’d bolt, leaving the developer holding the proverbial empty bag.
Throughout that mostly unregulated era those thieves represented a very small percentage of otherwise straight shooting sales reps, but over the decades one of the nearly universal results of those reserve fund policies, in spite of stated policy, was that the vast majority of honest hard working reps never had their reserve fund earnings returned to them upon leaving the company.
There are no official numbers that would collectively represent the total amount never paid back but at an average of $2,000 (per rep) it surely is in the millions of dollars over the years. But that is water under the bridge. It is time instead to look forward and simply end the reserve funds practice.
With 2011 right around the corner and all sorts of licensing requirements for reps, background checks, drug testing, laws, provisions, etc. to protect the developer and consumer there is simply no justification whatsoever for the continued withholding of any earnings.
And even if there was a need for continuing the reserve fund policy, then those earnings should be deposited into an interest bearing (and separate) ‘account’ that each rep can monitor. When they ‘leave’ (for whatever reason, excluding fraud, etc.) each rep’s earnings, w/interest, must be returned within 10 business days.
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