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7 Comments

  1. 1

    Ted

    Outstanding advice.

    During my pre-timeshare days a much older salesman I once worked with cautioned me that as a commission sales rep and regardless of what I was told when I was hired or what I was selling that my annual income over many years would be limited by factors outside my control.

    Being much younger at the time as well as full of wisdom, P&V I discounted what Harold told me thinking, although he was a very nice guy and a pretty good salesman, he was probably just a disgruntled, old and burned out peddler.

    A few months later Harold passed and one evening soon after his funeral I remembered what he had told me about my income. I started thinking on it again and as it turned out my pal was right on all accounts.

    I then decided to live within my means but cut back on excesses so that I could take 25% from each check and put that money into the bank.

    Maybe 18 months later I had a nice lump sum and with the 25% I would continue to set aside each payday I was able to pick up a nice piece of land which I held for 5 years and then sold at a huge profit that earned me more than that years commissions.

    Today, I still earn the same annual commissions as I did years ago; but because I do a lot of buying low and selling high I’m beating inflation and securing my future.

    Thanks Harold!

  2. 2

    Rick

    You can use the rule of 72 to figure out if you’re getting ahead.

    If you are earning 7% annually on your investments then divide 72 by the 7 years and that will show you that it will take 10 years and a couple months to double your investment.

    The reverse of that rule (72) is that if your annual income increases 3% each year it will take you 24 years to double what you are earning today; but in terms of actual purchasing your income will be, excluding hyperinflation, landlocked where you are today.

    That’s not getting ahead or winning. It’s a stalemate at best!

  3. 3

    Anonymous

    All points well taken.

    Most TSR’s I’ve ever met live, work and play while whistling past the graveyard!

    As pointed out; the majority have no benefits of any kind let alone a severance or retirement plan.

    When they join our ranks they get all wired up in the hype, the bells, the whistles and buzz with little understanding of their long term outlook or the possible consequences of spending many years selling TS’s with no end game (payout).

    For most it turns out to be a losers game unless they save, invest, save & invest more so when they finally walk away they’re financially secure.

  4. 4

    Art

    I’ve had a great time and make great money but if you look at the consolidation that has taken place this last 8-10 years and the downsizing or closing of sales centers at the smaller independent developers; how many good years are left is anyone’s guess.

    Maybe within a few more years only the major Brands’ will be open for business.

    But at least pay pretty good % and provide benefits so that is good for those of us that stay around for the duration.

    On the other side of that coin is all the crap going on in the Middle East and what we’re all seeing, IMO, is WW III in the making and if that becomes full blown then that is likely to play out big time in our industry and sales could plummet.

    In the mean time; keep your powder dry!

  5. 5

    KT

    A dirty little secret about commissioned sales.

    Every year you MUST earn more just to break even with last years earnings and to cover the same lifestyle.

    Inflation @ 4% annually:

    Current annual earnings: $100,000.00
    2nd year to break even: $104,000.00
    3rd year to break even: $108,160.00
    4th year to break even: $112,486.40
    5th year to break even: $116,985.85
    6th year to break even: $121,665.29
    7th year to break even: $126,531.90
    8th year to break even: $131,593.18
    9th year to break even: $136,856.91
    10th year to break even: $142,331.18

    15th year to break even: $173,167.65

    20th year to break even: $210,684.91

    Get the picture?

  6. 6

    Mark

    I only get so many shots each week.

    That makes it nearly impossible for me to sell more deals unless I increase my closing ratio.

    If I do there is still a cap on commissions even if I could unrealistically close 100% of all my tours.

    My net close is 28% and after reading this thread I realize the only way I can earn more each year is to increase my VPG but to do so I’d need a better quality tour.

    If I had better shots my close would increase too and I’d make more dough.

    Don’t get me wrong; I’m not complaining because I love what I do and earn a good living.

    See ya at ARDA in a few weeks!

  7. 7

    Tim

    If everything posted here is true then what’s the answer?

    Like others I too really love doing what I do but….

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