July 29, 2016 — I have a grave warning for all marketing and sales reps including most management folks below the ‘C’ level grades who work with certain timeshare developers. This is so critically important that I urge all readers to send a copy or link of this week’s column to the timeshare marketing and sales reps (management, too) they know and/or tweet it (or retweet from our twitter page) and share it with your peeps throughout our worldwide timeshare community.
So Here’s The Scoop: Do you remember that adage that warns us all that “people don’t plan to fail – they fail to plan”? Even if you’ve never heard that maxim let me ask this: Would it be wise for anyone to work all their life in Timeshareville and then be financially wiped out when they reach their 50’s, 60’s (or beyond) and wind up living a substandard and miserable life?
With the exception of those outstanding developers who provide some sort of (e.g.) a base pay plus decent commission structures, bonuses and a full array of benefits for their peeps which includes retirement plans (hereafter aka: perks), everyone else still working as an independent ‘associate’ for any developer anywhere in the world with no such perks is setting themselves and their families up for near certain financial peril.
In fact, with few exceptions financial demise is almost guaranteed because all of three things will happen to everyone – there is no escape.
1. We will all get older and we will all be replaced by someone younger.
2. One way or another our income earning years will come to an end and that too is assured.
3. Statistically, sooner or later before we all ‘pass’, many of us are going to first wind up in a hospital or — worse — an ‘old-folks’ home for a very long, often lonely and expensive ‘staycation’ that will wipe out many of our savings and investments, including the loss of our homes, etc.
I don’t make this stuff up and for those of you who repudiate those three inevitable facts I highly recommend you do a quick Google search and read about the leading cause of bankruptcy (e.g.) in the USA.
For example, the Investopida.com website is reporting in a piece titled “The Five Reasons Why People Go Bankrupt” that “Medical Expense” is reason #1 and that, read this carefully: “A study done at Harvard University indicates that this is the biggest cause of bankruptcy, representing 62% of all personal bankruptcies. One of the interesting caveats of this study shows that 78% of filers had some form of health insurance, thus bucking the myth that medical bills affect only the uninsured.”
The second reason they stated in that article was “Job Loss” –– which combined with ‘aging’ and the medical reasons equals all three of my warnings!
In the commission-only universe with no perks the vast majority of timeshare marketing and sales reps (management, too) are playing a form of Russian Roulette and we can all bet the farm that the loaded chamber is coming around and these perk-less developers not only know it, they ‘make bank’ on it too!
All sales reps (liners, closers and F/B’ers) also need to understand that if they are closing at a (e.g.) net 20% (or whatever), that means 80% of the time they are working they’re earning NOTHING, ZIP and NADA and from that zero sum gain reps must financially prepare for their inevitable financial futures.
And the overly greedy perk-less developers that I’m talking about don’t want their reps to understand that reality which is why for the past 50 YEARS they have and continue to promulgate the 3 most ridiculous myths in ‘the-biz’. And those are:
- A sale is made every time
- either you sell them or they sell you
and, of course their old trusty standby to pass the burden of THEIR inept business and management failures onto their reps – asserting that
- An Up is An Up
These perk-less developers get by with this swindle for several reasons, one being that at the end of the day they have no skin in the game because along with no fixed overhead (costs) for the perks that other developers and businesses around the world provide their reps these gluttonous, self-serving perk-less developers only ‘pay’ when a sale is made (and sticks).
Note: Should any rep not know, developers who protect their reps with perks often pay commissions (points) and bonuses equal to or larger than perk-less developers. And that is because in the real world all overhead including the costs of those perks from (e.g.) automotive manufactureres to donut shop owners are always passed on to the buying ‘market’. One of the beauties of CAPITALISM don’t ya know!
In Other Words, Bubba, it doesn’t cost these perk-less developers anything to take care of the people making them their vast fortunes!
Now if anyone reading this is in ‘it’ for the short term, to have fun, make some money or travel abroad, etc. then they’ll not give a damn and yet many of them, years from now, will likely continue down the perk-less path even if they move on to other industries.
For others who plan on being around the Land of Time for the duration; you know, as in having a real career with (e.g.) medical benefits and retirement plans etc. to secure their futures – then, their options are pretty much restricted as follows.
Option #1 – Stop working for these perk-less developers asap and go to work for those few outstanding timeshare developers who take care of their marketing, sales and management peeps.
Option #2 – Back in the ‘day’ (I’m talking decades ago) when a developer didn’t have the best interests of their reps in mind sometime those people at some resorts would get together and united they’d approach the developer with what I’ll call a ‘Come To Jesus’ meeting; you know, have a warm and friendly chat about the ‘issues’ of the day.
Option #3 – Don’t’ worry about it! Have a great time and continue to enjoy yourself. However, those who take that fork in the road might want to plan their retirement years around a community with somewhat mild weather because I’ve read recently that older people, after a lifetime of working, don’t fare too well during extremely hot weather or the winter months living in cardboard boxes or under bridges.
Good Luck Out There
© Copyright Inside the Gate. All rights reserved.