August 17, 2012 — Monthly, quarterly, semi-annual or annual sales bonuses are very much earned and appreciated but most timeshare developers don’t offer bonuses, only pay their sales rep a flat commission on each sale regardless of volume and sadly, these days, most developers no longer pay cash SPIFFS either!
So here’s the scoop. In the timeshare universe reps live and work in a real-world atmosphere whose one maxim is: ‘You’re only as good as your last deal’. And even seasoned producers have been fired because they ‘blanked’ (e.g.) the last 10 sales guests, an unwritten policy all too often also used to shake up the ‘team’ in order to get them to do whatever it takes to write deals or else they, too, will be heading down the old camino, so to speak.
When it comes to those developers who do offer a bonus plan the fact of the matter is that the reps have no control over their sales guests’ qualifications, their disposable incomes, their travel habits or desires and all real sales pros simply ‘work’ the prospect to the best of their capabilities and in the end, a rep can only squeeze so much juice out of an orange!
And what sales rep in this business hasn’t had a string of prospects in any given month or months who are, shall I say, financially challenged and can only afford the full down and monthly payments on a (e.g.) $9,499 deal even though they may want a 30-pounder (aka: $30-K deal)?
Not to mention, now that I’m on a roll, what Pro is only going to write a (e.g.) 1-week deal when it is obvious to the rep/closer, after interacting and working with the sales guest that the prospect ‘likes’, ‘needs’, and can ‘use’ a (e.g.) four-week plan and they can actually afford one?
Last week while I was reading several comments posted by readers in our exclusive and extremely popular ‘GateHouse’ section about commissions and bonuses under the ‘Idle Thoughts’ segment our ‘Gatekeeper’ tossed out the following thought for consideration.
So let’s say a developer pays a whopping $500 to get a Q into the sales room. The sales rep closes a deal for $20,000 clean and pressed. The rep’s commission is 10% of the deal, or $2,000, and $17,500 goes to the developer.
Then another Q sits down at the table and another deal is closed for $30,000. The rep gets 10% on that deal, too, or $3,000, and $26,500 goes to the developer.
But the marketing expense for the second tour cost the developer the same amount of money as the first tour, so the developer is making a larger profit on it on a percentage basis, while the rep’s percentage remains the same.
Doesn’t that seem a little out of whack? Since the developer’s cost for the tour remained the same and it was the rep’s skill and hard work that brought in the extra dollars, shouldn’t the rep at least be recognized with big fat cash SPIFF or a bonus or even an increased percentage based on the dollar amount of the sale?
My thoughts are, yes indeed, that is way above being out of whack! When a sales rep sells and closes a prospect on a TS plan that is above the sales center’s average YTD selling price it is then and there that the rep has earned and should be paid, NLT the next pay cycle, a ‘bonus’.
After all, neither the developer nor the rep can survive without the other. They are both on the team, in the same ‘game’ and shooting for the same goal/objective. And when the rep seizes the day with those prospects who have the means to buy ‘big’ then a reasonable developer should, each time, reward the rep in what is a performance-based association in the first place.
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Contributing sometimes extravagant, bombastic, emotional, pompous or even pretentious writings about the timeshare industry, Scoop covers an array of industry related subjects each week including inside information, tips, scandals, interviews, forecasts as well as new (good or bad) products and services--- and, of course, all the 'Good', the 'Bad' and the 'Ugly'.
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