August 3, 2012 — Should anyone not know who Mr. Ziglar is then please google his name (for his bona fides) so I can get right to his counsel, which is that sales driven businesses like the timeshare industry most often react incorrectly when recessions hit— which of course would include the recent worldwide calamity that reared its ugly reality beginning at the end of 2007.
So here’s the Scoop: That depression was a nasty one to be sure! And like most corporations, including TS developers, the first corporate ‘suits’ reaction, according to Zig, is to pull in all the reins, cut and/or lower all costs, gut the advertising/marketing campaigns, close offices, let people go, stop hiring, eliminate most if not all bonus plans and batten down the hatches!
And while the ‘suits’ are in a survival (panic) mode many decisions ultimately toss out the baby with the bath water and often companies never recover to their previous highs (sales volume); and of those who do regain ground it can literally take a decade or longer to get back up to full speed!
What Zig cautions against during financially challenging times is cutting the red meat (my words) from the sales force because even for those sales reps who have a small pittance of a minimal guaranteed salary, at the end of the day they are all performance-based and if a rep can’t bring in the sales it’s down the road they are sent!
Mr. Ziglar advises most sales-driven companies that when it comes to their (primarily) commission-only sales force the lowering of commissions, elimination of bonuses, contests, rewards, SPIFFS, ‘parties’ etc. is the exact opposite of what a company needs to do in order to motivate their ‘teams’ to ‘sell-sell-sell’ during challenging times.
And of course Zig is 100% correct, because during every recession and/or depression going back over 100 years in just (e.g.) N. America about 75% (millions) of all ‘consumers’ (aka: prospects) are doing just fine, secure in their jobs, incomes, savings and homes (mortgages) as well as their overall lifestyles.
Of course Mr. Ziglar also advises that cutting unwanted ‘fat’ is appropriate during ‘rough’ times but he also highly recommends that said lard should have been trimmed from the carcass in the first place!
In our industry one area of that pork would be, as it always has been, the elimination of the tour qualifications such as spending revenue on those (e.g.) 25 to 30-year-old cohabiting youngsters with an annual ‘gross’ income of $40-$50-K; a practice that throughout the recent recession is very much alive and well!
That said and moving forward, Mr. Ziglar also points out that even during challenging times such as a recession it really doesn’t cost a company any money at all for their sales manager to hold morning meetings and get the sales staff all fired up by announcing (e.g.):
‘And today, I have a wad of $100 Bills burning a hole in my pocket (and then pull out the money and wave it in front of the reps) and I’m going to pass out these little babies like a drunken sailor on shore leave in Bangkok at midnight to the first 3 reps who bring me an all cash deal today with a 50% deposit…’
So there you have it TS developers. Take it from Zig. The crisis has passed! Now get about the business that motivates your ‘troops’ best and you can start by sending your ‘suits’ on a couple ‘developer week’ holidays or at least tell them to stay in their offices, keep their opinions to themselves and ‘get out of the way’!
And while they are no longer interfering with the real world sales process let your reps know today that they have finally arrived at the end of the tunnel and then back that proclamation up with some huge CASH SPIFFS and let ’em Rock & Roll and do what they do best!
To send tips, comments, suggestions, agree and/or disagreements etc. email Scoop: [email protected]
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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