January 20, 2012 — Last week in our GateHouse blog the “Gatekeeper” had a tidbit about the ongoing and aggressive effort down ‘Down Under’ by Australia’s Parliament to eliminate all commissions, spiffs and bonuses from the remuneration plans for timeshare sales reps, brokers, etc.
So here’s the scoop. Timeshare products and all ‘actors’ in Australia are regulated as managed investment schemes and if the new law passes the developers claim the effects will be “immediate and devastating”. They warn that the law may force them to leave the nation, costing the country thousands of jobs, plus the government will lose its share of the tax revenue generated by the timeshare industry there.
Meanwhile, in N. American and the Caribbean there seems to be a trend to simply lower commissions. For example our Advertising Manager (Bill Curtis) told me recently that a prospective client is considering a recruiting campaign in ‘The Gate’ and that if they do advertise the developer will be offering a base salary plus commission potential of less than 6%.
In Mexico a well known developer has now lowered their commissions for their F/B (Front to back) Pros to 7% regardless of how much volume a rep produces each month. And in the Midwest of the USA a timeshare developer is now paying their F/B reps 9% with no spiffs, bonuses, benefits, etc.
Commission percentages in this business have always been all over the board. And due to the nature of our industry as well as the ‘At Will’ employment and/or I/C (independent contractor) relationship that often exists, marketing/sales reps are feeling the squeeze. If this trend to lower or eliminate commissions continues then being a TS rep will rapidly lose its last bastion of luster.
Of course that will leave an incredible opportunity wide-open for those timeshare developers who stick with or get back to the basics that always attract the best talent in this business such as a solid base (percentage on each deal); cash SPIFFS; monthly, quarterly, semi-annual and annual performance ‘pops’; as well as benefits, etc.
Fortunately there are still many outstanding timeshare developers around that take care of their people and who do have such structures, provisions and practices in place. Those are the companies that a savvy TS Pro should get on board with, be loyal to and stick with for the duration, so to speak.
As for those other developers? I’ll leave that for the sales/marketing reps to decide!
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