April 29, 2011 — I spoke with a developer’s PD this past week and as he was boasting about how well he treats his sales and marketing people it soon became obvious his ‘beliefs’ didn’t match others (mine too) in ‘the biz’, especially when he started talking about raising the amount of reserve funds withheld, lowering commissions, no SPIFFS and then dropped the ‘TP’ bomb.
And that ‘TP’ was the twisted and perverse “timely payments” provision some developers employ whereby reps WILL be charged back commissions earned WHEN a buyer misses and/or is late on one (or more) of those ‘timely-payments’.
There are few things in this business that rattle my cage as much as that does and quite frankly it irritates me that any seasoned timeshare (sales/marketing) professional would work with such a…
Maybe I missed the ‘big-meeting’ but for the life of me I cannot think of any other sales driven industry, excluding ‘vested’ opportunities, that punishes their sales and marketing reps with such outlandish schemes as that ‘timely-payment’ Timeshare BS.
On top of that, this particular developer (and others) still has a ‘sales guest’ income qualification so ridiculously low (in this case $50-K) that even Jethro Bodine (1960’s sitcom fame: The Beverly Hillbillies) could cipher that some of his clients ARE going to face ‘TP’ issues.
Oh, and here is the ‘kicker’, so to speak. Currently their average net sales price at this project is a tad south of a whopping $7,000, but he is ‘hoping’ to get that up to around $11-K with this coming summer season!
And here I thought after the ‘big crash’ of 2008 this kind of thinking (TP’s, low qualifications, low commissions, etc.) was a thing of the past and instead developers would hire the best talent available, pay them their worth so they would close bigger (and more) deals, generate higher net YTD VPG’s, lower rescissions, etc., and it would be a ‘win-win’ situation all the way around…
Silly Me! Same old Timeshare BS, just a new ‘season’!
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