January 28, 2011 — From the developer’s perspective there is probably no more loathed issue in the timeshare industry that pops up from time to time than the topic of Unions or Associations for all sales and marketing personnel. But the case could be made, from the reps’ perspectives, that there is a need to establish such an entity, specifically when it comes to earnings, etc.
For most reps, after their ‘higher-power’, their loved ones and health there is nothing more near and dear to them than income and in this industry where commissions (percentages) paid are all over the board, there is one inescapable truth: Unlike (e.g.) the street cleaner or garbage collector, incomes generated from commissions have never kept pace with inflation in this business.
In fact in recent years some developers have actually lowered the ‘points’ paid. But even in the cases where that hasn’t happened a rep who started their career back in 2000 and earned $100-K would have to earn around $131-K today just to provide their families the same lifestyle they did a few years back.
That is roughly a $30-K shortage, because not only do base percentages have no inflation provisions, ‘net’ selling prices are stagnant and in many cases lower than they were years ago. From an inflationary aspect alone the rep who made $100-K in 2010 will have to come up with (or cut back) at least another $2,800 in 2011 to cover their cost of living.
Additionally, there are only so many ‘tours’ a rep can deal with annually, so increases from income are restricted by that aspect alone. And when compounding the current low inflation factors (which ‘some’ are predicting will increase), each year reps are losing thousands of dollars in income.
Then to add insult to injury a rep who worked for the same developer for (e.g.) 2-3 years and then left not only lost thousands of dollars of income they’ll likely lose thousands more in unreturned reserve funds too…
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