A Joyful Noise

Related Articles


  1. 1


    Wow, I have to many thoughts on what you wrote for one post so I’ll begin first with:

    If developers’ ever analyzed what it actually cost, above the acquisition and ongoing costs of owning a timeshare plan; to take a family vacation every year and if they calculated all hard and fixed expenses they’d surely realize that they have always been way off base with their income ‘Q’ standard.

    Ground/Air transportation costs, car rental rates with gas and insurance, taxi costs, entertainment and show tickets, dinning, shopping, tours and excursions, golfing and so much more runs into the thousands of dollars each and every vacation….

  2. 2


    All sales structured businesses have a default factor when toting the note, that dollar loss factor (%) is calculated into the bottom line selling prices so they really aren’t losing any revenue. And they can write off much of the loss off the corporate taxes anyway.

    If this F/B’er was paid 10% on each $15,000 deal; he/she earned $1,500 per pop.

    But each one of those 72 owners share of the collective total is $25,000 and that means on all the money this rep generated the rep really only earned 6% ($25,000 x 6% = $1,500).

    The real commission should be 10% of the total or $2,500 and not $1,500.

    The developer could pay the $1,500 on payday and then they (and the exchange companies) could pay out the remainder to each rep once a year as a bonus.

    That would vest the reps and they’d stay on board for years.

    As it stands now, I would argue that what is really happening is all the reps are subsidizing the developers’ with that extra $1,000 (from each sale in this example) they are not being paid because it stays in the developers’ pockets.

  3. 3


    25 to 35 cents on every dollar we generate is what we should be paid!

  4. 4


    I agree with Mary about the %.

    I’ve been around a long time and what is worst is when you work for some developers for a year or longer and then you quit (or whatever) most wouldn’t even pay you back your reserve fund ($3,000); and they always claimed it was because of cancellations!

    And of course all the sales you made those monthly’s and AMF’s keep rolling in!

  5. 5


    Hey, if you don’t like it then go sell cars or something else.

    I love what I do, I love this business, I love what I earn and that puts me in the top 5% of all earners in the world!

  6. 6


    8 years ago I self-gened a couple that are friends of mine and our next door neighbors.

    I took them in on my day off, showed everything and they bought.

    They still love their TS and travel a lot but I realized after reading this column and comments today that I was only paid an extra 3% on that sale and am now wondering if that was fair?

    I also remember at the time that for an extra couple points self-gen isn’t worth the effort; although it was my neighbors that approached me because they knew where I worked.

    Any thoughts on what extra % should be earned for a self-gen that buys?

  7. 7


    Theoretically speaking Tim if a developers marketing and sales costs are 50% then there is plenty of room to pay you more than 2, 3, 4 or 5 points on any self-gens.

    The problem some developer have is they still have to pay management including marketing over-rides on the self-gens so my advise to anyone that wants to self-gen is strike a deal with the developer and remember if the developers isn’t providing and gifts then the entire marketing and sales budget, less those over-rides should be on the table for the asking.

  8. 8


    Here’s the real “scoop” gang.

    Larry used the example of a 10% commission on the $15-K deal earning $1,500.

    Scoop added all the money up that will be generate over five years that the rep sold in 12 months. That was $1,796,415.25 .

    A $1,500 commission on all the money ($1,796,415.25) generated is appalling: 0.0835% !

    If you don’t know how small of a percentage or fraction that actually is then consider that if this sales rep was paid just one (1%) percent on all the money generated they would earn $17,964.15 Vs $1,500.

    There is something rotten in Denmark!

  9. 9


    No offense but your numbers are off Carmen. Maybe you were just tired.

    The $1,796,415.25 was for ALL 72 sales in that year and the front to backer was paid $1,500 on each deal.

    That is a total of $108,000 in commissions; so that is a commission of 6.012%:

    $1,796,415.25 x 6.012% = $108-K

    Still, that is only 6 cents on the dollar and developers could be a little more thoughtful.

  10. 10


    Thanks for clearing that up Mel. When I read Carmen’s post and as I was bringing up my calculator I was thinking something was terribly wrong with those numbers.

    Here’s my take:

    1. Obviously the developer incurs all costs, liabilities and takes all the risks just like all business owners.

    2. In the scenario being discussed the developer only pays the rep when they sell and in this case, over those 12 months, the developer pays the $108,000 in commission.

    3. If, and this would never happen; but if this rep was paid all $108,000 in advance and then had to make the sales the developer invested (and took the risk) $108,000 and received back the $1.79 Mill.

    I just ran the numbers over the 5 years in a online ROI (return on investment) calculator; so I’m going by their analysis.

    “Gain $1,688,415” – “Percentage Gain 1,563.35%” – “Simple Annualized Return 312.5%”

    Beats the hell out of putting that $108,000 in a CD (LMAO)!

  11. 11


    It’s all pretty simple; if you are good you’ll do well and earn a damn good income.

    If you are mediocre then you’ll get your just reward.

    If you suck, you’ll be gone in the blink of an eye!

Comments are closed.

Copyright InsideTheGate.com. All rights reserved.