Introduction

Although this book is meant to share an

insiders knowledge of this Industry it
can at times sound as though the product
is always sold in an unscrupulous
manner, that is not my intent. I worked in
this Industry for 25 years and feel as
though Im an extremely ethical person.

Like any profession where there is a lot

of money to be made it attracts the good
the bad and the ugly. And I will admit I
met some pretty sleazy people doing this
but I also met some very professional
individuals that did it the right way and
for all the right reasons. This product
makes a lot of sense and offers a quality
vacation for the right type of person. If
you dont vacation or if you dont care
about
the
quality
of
your
accommodations this is not for you.
My goal is to help educate the average
person to the different concepts of
Timeshare and give some insight to the
Industry. I believe in Vacation
Ownership, I own Vacation ownership
and have used Vacation Ownership for

many years. I also have hundreds of

happy owners that I enjoyed meeting and
selling this product to.
To me the most important ingredient in
making a sale is Believing in your
product When you actually believe in
what your selling it shows by the
passion you have for it as you present it.
A client can always sense or feel the
truth in your presentation. I never sold
anything I didnt honestly believe in.
The material in this book is just my
opinion and my point of view. How
you choose to use it is up to you.

Preface
5

Its been almost 25 years since I started

down this road. I have not really been
involved in any other industry for this
amount of time, so I can only speak
about this one. Im sure other sales jobs
are very similar and they experience the
same amount of impropriety that goes on

here. But this is my story.

It started as a way to make a living in an
area that didnt have much to offer as far
as jobs went. After running Boat
Charters for about 5 years
in Hawaii I found myself burnt out,
divorced with two young children and
rather poor. I needed a change, but I also
needed to stay close to my daughters as
they grew up so I could be part of their
lives. I had a Real Estate license in
Hawaii and was told about this new job
opportunity in town where you could
make lots of money called Timeshare. I
really had nothing to lose, so off I went
on a job interview (a first for me). The
resort was in Kona, Hawaii and the

people running it were all from Orlando,

Fl. I found the experience to be strange
and a little intimidating.
These guys were all dressed in suits and
ties (which I didnt have and saw no
need to do so since its always so hot
and humid there). To say they looked out
of place, or I looked out of place, would
be kind. I left the interview thinking I
must have failed horribly, I didnt
understand the process at all, I was a
charter boat captain not a salesman in a
suit and tie. You can imagine my
surprise when I got a phone call to
comeback for a second interview. They
must have been desperate back then. So
off I went 25 years ago.

I distinctly remember saying to myself,

Ill do it for a year or so and make
some money so I can get back on the
ocean where I belong, these guys are
weird!!! Of course I needed training for
my new profession so
two other newly hired candidates and I
started our training. I soon realized there
wasnt much involved to the training.
Basically there
5

was a video tape we were suppose to

watch, which I never did get a chance to
see, since the other Green Peas (new
guys) always forgot to bring it back.

This I would learn was standard

Timeshare mentality back then, its all
about ME not YOU!!!
Anyway I do remember one thing that
was said and as it turned out to be quite
profound. One out of ten people might
make it in this Industry-so one of you
will be the keeper. We all looked at
each other and I got my first taste of
Peer Pressure. The pressure was on
and wouldnt stop for 25 years.
To make a very long story short, I was
the keeper. I found sales to be extremely
different from anything I had ever done. I
really am not a people person or enjoy
talking a lot and couldnt understand

why am I good at this? Im not the

salesman type, or what I thought was a
salesman 25 years ago.
The way you learned to sell back then
was by what was called Taking a
Ride with another sales person. This
was achieved by a Sales Manager
forcing a more experienced sales person
to take the green pea along on their
presentation. This was usually done
begrudgingly by the more experienced
sales person. So to sweeten the pie quite
often this person was offered the
proverbial
SPIF
or
(Special
Performance Incentive Fund) a word I
would learn very quickly. Spifs were
offered for everything and you could

often hear sales people chanting the

word during sales meetings every
morning. Spif-Spif-Spif!!! Money was
clearly the driving force in High
Pressure sales like Timeshare

Job
Description
By now you probably have figured out
why so many people want to work in the
Timeshare industry, MONEY. But let me
explain what the job actually is. As a
Sales Manager I have hired (and fired) a
lot of people. During the initial job
interview I would always ask the person
I was interviewing (if they were new)
why they wanted to work in the

Timeshare Industry.
And as you can imagine I got lots of
different answers, but the bottom line
was always money. I would then give
the potential new sales person a quick
job description.
OK heres the deal: You meet a couple
(could be couples or a single person)
that you never met before that has come
to the presentation for a Free Gift or
Discounted Activity. They were told it
would take 90-120 minutes for the
presentation. Before they arrived in most
cases they have made a pact with
each other not to buy anything and to get
out ASAP. Of course they have heard all
the horrors of a Timeshare presentation

and have some preconceived notions

about you and your product. Within the
90-120 minute time frame youre
expected to break the pact, educate
your clients to the concept being sold
and build enough trust and excitement for
them to buy a week from you for roughly
$20,000 - $50,000.00 + while they are
at the presentation TODAY. And as if
thats not enough they have 7 days (in
Hawaii) to rescind the purchase.
Youre paid on commission only and in
most cases you will only have about 20
tours to achieve a successful closing
percentage of at least 15-16% or youre
fired. Does that sound like easy
money?

Timeshare
History
Timeshare began in the French Alps in
1964-1968 at a resort called
SuperDevoluy. The developer by the
name of Paul Doumier used the slogan
No need to rent the room; buy the

Hotel, its cheaper It was a right to use

concept and was created as a way of
owning just the time you needed for a
vacation every year instead of renting. It
moved on to the USA with the first resort
being sold on Kauai called Kauai
Kailani in 1969 on a leasehold basis
which is a form of ownership in Hawaii.
This company went on to be Vacation
Internationale. Their units were sold in
40
year
increments.
Vacation
Internationale was also the first to sell
Point systems years later to give their
owners more flexibility. These early
concepts are whats called a Right to
Use which we will discuss shortly. It
was then as now an appealing way to
own just the time you needed for

vacations every year. Back then it was

designed to be used at the same resort
with a fixed week in a fixed unit which
simply means you buy and use the same
week every year so theres no
reservation issues. Remember this was
before computers.
A Fixed week
concept is still used today but now it is
considered a specialty item and is used
to fix Christmas, New Years the Fourth
of July weeks etc. and is sold for a
premium. Fixed Holiday weeks can get a
little pricey which is why sales people
always love the Holidays and a chance
to talk to this type of buyer.
Florida timeshares became the first in
the continental United States to be

developed in the 1970s. Deeded

timeshares
were
introduced
by
Sausalito,
Californias
Innisfree
Companies. In 1973 a joint venture
between Hyatt and Innisfree developed
the first timeshare at Brockway Springs
in Lake Tahoe, California. When
Innisfree filed paperwork with the
California Department of Real Estate,
the term timesharing was introduced.
Using the term timesharing in
promotional materials made timeshare a
household word.
During the 1970s many families looked
for ways to take cheaper vacations.
Because of this timeshare grew quickly
and by 1976 had generated over

$50,000,000.00 in sales. The industry

continued to grow and in the 80s more
resorts were converting to timeshare
than ever. The high class vacationer was
attracted to timeshare because of the
luxurious accommodations and exotic
destinations, while the less affluent
vacationer liked spending less money for
a quality vacation which allowed them
to vacation every year. By 1990 there
were over 4 million timeshare owners at
over 2300 timeshare resorts.
Marriott was the first Hotel chain to
enter into the timeshare industry. They
were followed by Sheraton, Ramada,
Four Seasons, Hilton, Disney, Ritz
Carlton, Radisson and Westin all of

which started offering timeshares in the

1990s. By the year 2000 timesharing
was a multi-million dollar business.
Today Worldwide there are over 6500
timeshare resorts..
Today Timeshare generates over 2
billion dollars each year. This is not
including sales from Timeshare resale
companies which is becoming a huge
industry in itself and capable of multimillion dollar earnings per year as well.

Timeshare
Concepts
There are a number of different
Timeshare concepts. Right to Use,
Deeded, Point Based, Deeds/w Points,
& Vacation Clubs. This can be the most
confusing part of the presentation. What
exactly am I buying? This is also where
sales people can stray a bit.
Deeded Resorts are commonly called
Vacation Ownership because you
actually own something. Right to use
concepts are usually called Timeshare.
However this is not always the case so

dont count on it. There are a number of

Point based systems that erroneously
call themselves Vacation ownership.
A Deed means you actually own a piece
of Real estate, not a big piece but
something. Usually a 1/51 interest in a
condominium. One week is set aside for
maintenance by law. So a 1/51 interest
normally represents one week of
ownership in a condo. If its a floating
week then its not a specific condo or
week.
For recording purposes your deed will
reflect a week number and a Unit
number. This is for regulatory purposes
only. So the State can tract how many

weeks have been sold in each unit.

When a unit reaches 51 weeks the State
will shut it down so the resort cannot
be over sold. The unit number is there
because you must have an address on
the deed. You dont have to stay in that
unit or use it that week with a floating
week ownership.
Most resorts are broken down to
seasons as well. High Season, Mid
Season, & Low Season. So the season
you purchase in, is the season you have
usage in, either there or on an exchange.
You will also have usage in the size unit
you purchased, for example if you own a
1 Bedroom in low season you stay in a 1
bedroom in low season. This is the most

common source of confusion for new

owners.
The plus in this type of ownership is you
actually own something forever. So you
can Will it, Rent it, Sell it, Give it Away
etc. (Im sure youve heard all this
before, if you ever attended a Vacation
Ownership presentation).
The negatives are this older version is
much more structured. You have to use it
a week at a time and you have to stay in
the size unit you purchased during the
season you own in.
This type of Real estate investment is
NOT designed to make a profit. Its
simply a redirection of dollars you were
going to spend anyway and it just allows

you to stay in nicer accommodations and

an opportunity to sell it and get
something back versus nothing back from
renting accommodations. So resale is
usually always a loss. Usage can be an
issue as well. Getting the week you want
where you want is a whole lot easier
said than done, unless you can plan way
in advance. Exchanging can be a
negative and there are additional costs
involved. So the best way to use this
type of ownership is buying at a resort
you plan on using a lot as your Home
Resort. This is the simplest way to stay
content. Buy the size unit you need in the
season you want to use it in, and make
your reservation well in advance if
possible. If anyone tells you different,

get up and leave.

Right to Use: Is another concept that
has a specific length of time to use it
within.
Mexico is usually a 20 year Right to
Use for example. Believe it or not
Disney Vacation Club is also a Right to
Use for 40 years. This concept is my
least favorite.
When Timeshare first started in Hawaii
the resorts being sold were Leasehold
and if you ever attended a presentation
in Hawaii you should know that 8-10%
of the State is Fee Simple which means
absolute ownership. This is how you
buy your home on the mainland. You

own the property and the buildings with

a deed in perpetuity.
Leasehold is a lease for 100 years
(usually) and this can get confusing
because its whats left of the original
100 year lease if you purchase one. So if
youre in Hawaii and you find a property
thats a great value, its usually because
theres only 10 years left on the original
lease, then it reverts back to the lessor.
This would also qualify as a Right to
Use.
However most right to use programs are
at resorts outside the USA where you
cant get a deed due to citizenship. The
obvious problem with a right to use is it

starts going down in value as soon as

you purchase it. The clock is running and
resale is almost impossible after a
certain amount of time has passed.
The system I like best is Deeded with
Points you get the security of a Deed
and the flexibility of Points. Hilton,
Starwood, Wyndham, Four Seasons
and the original Marriott are good
examples of this.
The reason I prefer this type of
ownership is because its protected with
a Deed (in your name) that you own
forever and it gives you the flexibility of
points so you can break up your week or
use it in different unit sizes and vacation

any time of year you chose. Of course it

takes more points to stay prime season
or in a larger unit, (which will be
explained to you at your next
presentation as the perfect reason for
you to buy more points.) Plus it can be
used for other travel related options such
as hotels, airfare and rental cars. It has
all the good parts of the older system
with all the good parts of the new point
system.
Point Based system: Is another new
approach to selling a timeshare concept.
The selling advantages here is flexibility
and other travel related benefits. Its
also a way to introduce something new
that at first appears to remedy the

negatives of the Old Timeshare system.

Unfortunately, in my opinion, this is
NOT the way to go!!! Point based
systems benefit the Developer more than
the client. There is a Deed but it stays in
the Developers Trust and is not
transferred to you? This can have some
negatives as far as control of the
property are concerned as well as
mismanagement
of
funds.
i.e.
maintenance fees & capital improvement
reserves & reservation systems.
This type of product is sold as the NEW
improved Timeshare and flexibility is
again the main selling point. You can
break up your week. You can stay in any
size unit. You can change seasons &
there are other travel related options to

use your points with. At first glance

this sounds really good. The problems
are this type of purchase is less
regulated and a lot more convoluted. As
the number of users increase, less usage
exists. The program gets overwhelmed.
The travel options are usually not very
good values and you could do much
better yourself on the internet.
Diamond Resorts, Shell Resorts, Accor
Vacation Club & Regent Vacation Club
are examples of Point Based Systems.
Wyndhams Club Wyndham Access is
Points Based. Even Marriott has gone
to a Point Based ownership.
The way this works most of the time is a
Developer takes over an existing resort

that may be 90% sold out already. So

they in fact own 10% of the resort. The
Points they are selling are only good in
this 10% of the property. So the people
buying into the Points plan can only stay
in that part of the property. The original
owners with Deeds own 90% of the
property that they have usage in. Another
problem for the new points owners is
most of the good view categories have
already been sold and cannot be used in
the new points program. Unfortunately
for the unknowing prospect the resort is
being sold as the whole property and as
the new vacation plan all the existing
owners are going to change to. This is
nonsense!!! I strongly believe you
should never give up your deed. This

new approach is just another Cash Cow

for the developer.
When your sales representative shows
you all the other affiliated resorts you
can go to you need to ask what
percentage of those resorts are
available with this new point system.
This is something most sales people do
not even know themselves or want to
know. But heres the best part, believe it
or not the new Points Based developer
will ask you to pay a fee of
approximately $3000.00 to give up your
DEED???
Another big negative is the point values
can and will change. This will force

point owners to upgrade their

ownership.
In time the points for the 2bdrm./2ba.
usage you originally purchased will not
get you that size unit any longer.
Surprise!
Since Deeded owners will have a
separate Home Owners Association, I
suggest they get together and find a way
to expose this to other Deeded owners
so the points plan will not get more use
rights and screw up their reservation
system. The new Points developer will
usually have a sales room at the resort
which further confuses the returning
owners and exchangers there. They
represent themselves as the new

developers with the new system the

resort is changing to. This is wishful
thinking!!!
Beware, This type of ownership can be
extremely limiting and full of surprises.
Vacation Clubs: Are another lesser used
form of Timeshare. These are usually
smaller systems with less exchange
opportunities. However the difference is
theyre sold as Exclusive Vacation
Homes. Multi-million dollar estates you
can use. A typical membership would
work something like this.
A 1 Year Membership would give you
10 nights usage a year at a cost of
$10,000.00.

A 5 Year Membership would give you

21 nights usage a year at a cost of
$59,000.00
A Unlimited Membership plan is good
for a lifetime at a cost of $169,000.00
Usually in the 5 year and Unlimited
Memberships there is also a cost per
night.
This is obviously for a distinct type of
clientele.

Marketing
Lets discuss how the marketing is done
at these properties. There are a number
of different techniques used today. The
most common and the majority of tours
comes from OPCs (off property contact)
. These are all the activity desks and
visitor information kiosks that are
abundant in most resort areas. The
strategy here is to give a discount or free
activity to attend a presentation. It
always amazed me the amount of people
and the variety of people this would
attract. Doctors, Lawyers and Indian
chiefs all would fall to the temptation of
something for nothing.

The presentation is presented as being

90-120 minutes without any pressure and
would be fun and informative. At least
this was how the pitch would normally
go. Of course like most things there are
variations on this pitch. A lot of people
are told it includes a free breakfast or
lunch (and sometimes this is the case,
but we all should know by now, theres
no such thing as a free lunch) or its
described as an opportunity to view a
new resort etc. The clients are booked
for a tour time and date and expected to
show up to receive their gift. This is
when the fun begins. In most cases the
clients are at least cordial, but there are
always the ones with a nasty attitude,
this combined with the wrong sales

person could get a bit volatile. I spent a

good part of my day on some occasions
putting out these fires or having to NQ a
(non qualified) tour. There are
qualifications
for
attending
a
presentation and these were the biggest
problem with the OPC tours, sending in
non-qualified clients. The qualifications
would be things like this:
1.) Income the couple or individual
would have to make typically $50,00080,000.00 + a year. Unfortunately this
was just an oral consent from the client.
And as it turned out, people on vacation
can be anything they want to be.
2.) Married/w Spouse - You can not

attend a presentation without your

spouse.
3.) Activity - A guest could not have an
activity booked within 4 hours of
attending a presentation.
4.) Last Tour Date - You could not
attend a presentation until 1 year had
passed from your last presentation.
5.) U.S. Citizen - This requirement has
changed over the years due to the U.S.
Dollar weakening. But originally only
U.S. citizens were able to tour and be
gifted.
6.) International - International citizens

would be able to do a courtesy tour. This

type of tour did not count for the sales
persons closing rate. And if the client
purchased they were entitled to a gift.
This no longer seems to be an issue and
International tours are booked and
treated as a regular tour. As an example
years ago if you sold a Canadian you
were paid 1% more on your
commission.
7.) 24 Hour Requirement - A customer
would have to have been at resort
destination for at least 24-48hrs. before
attending a presentation
8.) Free Accommodations No one is
allowed to tour if theyre not paying for

accommodations.

Tour
Types

OPC:
above.

(Off Property Contact) See

IPC: (Internal Personal Contacts) Are

guests on property (non owners) staying
at an affiliated Hotel. When people
check into the Hotel there is usually an
invitation waiting for them to come on
down to the concierges office for their
FREE gift. Of course at this time the
discounted activity would be offered for
attending a presentation.

In-House: These are people staying at

the resort. Existing owners and people
who exchanged unto the property. These

are considered the premium tour for

sales people since these folks have
already purchased and know something
about the program. This is when an
upgrade usually takes place. The owners
typically will need more points or
weeks to achieve all their vacation
goals.
Since most people are conservative with
their initial purchase after they are
familiar with the program and feel more
comfortable as an owner its a lot easier
getting them more involved with a higher
level of ownership.
Exit Programs These go by many
different names, Explorer, VIP, Encore
etc. Just when you thought you were safe

and the presentation finally over your

sales person would go and get the
person in charge of gifting. (Or at some
resorts they will show the exit program
themselves) Of course this is one final
attempt to get you involved. The way it
works is for a price of usually $12001600 you could buy a weeks vacation at
the resort you were at or another related
property where sales were being held.
You would have 12-18 months to use it.
Once at the resort on your next vacation
you would be required to attend another
presentation.
This is a way to try it before you buy it.
The appeal is if you decided to buy it
then (giving you 12-18 months to think
about it.) The money spent for the

weeks vacation would be used towards

the down payment. This means you
stayed the week for free. Theres that
word again!!! The prices would be
frozen from your first visit and the
incentives would also be given. This is
the attraction to this concept. You have
time to think about it and you still get the
incentives, so this takes the pressure off.
(for the time being)
This makes you a great candidate on
your next vacation and these tours are
considered golden. The goal here is to
make the whole experience flow
effortlessly. From the reservation
experience to the unit itself. The
developer will usually try and put you in
the nicest unit available. Ocean front, 2

bedroom, top floor etc. So when you

arrive youre treated as an owner with
hospitality and owner services flowing
freely. It should be a wonderful
experience and represent the benefits of
vacationing in this manner so when you
attend the presentation youre much more
apt to buy something. This type of client
is referred to as a Gold Ball tour.
Unfortunately sometimes the system
doesnt work as planned. The people are
put in a bad unit and the reservation
system did not work very well.
This can happen occasionally when the
developer is running out of inventory as
the resort is being sold out. This type of
marketing should only be available with

the inventory the developer still owns as

not to impede the existing owners usage.
This again is left to the developers
integrity??????
After travelers became aware of the
OPC role in timeshare its effectiveness
slowed. The rate at which those
prospects
purchased
decreased
dramatically. So the industry came up
with the Telemarketing angle. The
developers decided not to wait for you
to go on vacation but would call the
prospects at home with vacation offers.
The Mini Vac Mini Vacation consists
of 3-7 days at the resort at a very
discounted price.

Timeshare telemarketing has two basic

models, the Local resort you can drive
to or the Mini Vacation (mini- vac) at a
resort. The local version offers gifts
from Dinner for 2 to a discounted cruise
etc. The qualified prospects visit a sales
office nearby there home and attend a
presentation. The sales offices are
equipped with models of the suites and
pictures and videos of the many exotic
locations available thru the ownership.
The Mini-Vac is a much more successful
program because the clients are sent to
Hawaii, Mexico, Caribbean, Las Vegas,
Florida etc. at a discounted rate and
attend the presentation at the actual

resort. These getaways would be offers

you couldnt refuse like a 3 day stay in
Las Vegas with dinner and a show for 2
at a cost of $99.00 or 3 nights in
Orlando with tickets to Walt Disney
World for $129.00. While under the
ether as its called, the client is more
prone to buy the timeshare.
After all you are having a great time
right?
And you would like to do this more
often wouldnt you?
Whats more important than quality
time with your family?
The mini vac programs worked great up
until the early 2000s when the DNC (do

not call registry) began. This is when

branded hotels took the matter into their
own hands and simply made the minivac offers during hotel reservation calls.
Hotels
operators
would
direct
reservation calls to a telemarketing
agent. The caller would simply be asked
if they might be interested in an
incredible discounted vacation offer
from their favorite hotel? At which time
they
were
re-directed
to
the
telemarketing office. The only catch was
you would have to attend a presentation
while you were there. And since youre
such a loyal Hotel customer.
Do we have a Deal for you.
Another marketing ploy was just sending

out offers to anyone who ever stayed at

one of their Hotels.
Bingo, this could be endless!!!
Timeshare like every other industry on
earth has of course now embraced the
Internet. This is a way to get to
thousands of people and re-create the
timeshare image. The client can now get
all the information needed to purchase
without attending a presentation at all
and there is NO pressure involved. They
can see all the offers available to
destinations they are interested in going
to and pick and choose who they want to
deal with.

Timeshare
Exchange
As timesharing became more popular a

new concept was developed called

Timeshare Exchange. In 1974 RCI
(Resorts Condominiums International)
was created to allow Timeshare owners
to exchange their week at one resort with
another owner at a different resort. RCI
has grown into the largest timeshare
exchange company in the world with
offices worldwide. It currently boasts
over 4000 resorts in 100 countries.
There are a number of other exchange
companies available today as well.
Interval International is another large
exchange company that deals with the
majority of branded resorts. This can be
a good choice for branded owners
because you can stay in something

comparable to what you own. Although

most branded vacation ownership
resorts boast huge hotel systems they in
fact have very few resorts to chose from
and a lot of them are in places you may
not want to go or use your ownership at.
The Hotel part of your ownership is not
typically a good trade option. You may
own $50,000.00 worth of points in a 5
star resort but unfortunately this will
only allow let you stay 4-6 nights a year
at a high level Hotel within the same
system, if its available. Remember now
youre competing with all the Hotel
point clients. This is where the system
can get overloaded.
If theres a person making a reservation

with cash vs. points, who do you think

gets the room.
Then you have the boutique exchange
companies like Trading Places, San
Francisco
Exchange
etc.
also
competing for your resort weeks. These
are the folks that send you the great 2 for
1 offers. Deposit your week as early as
possible and get 2 weeks in the
exchange.
This was a BIG selling point in high
demand areas like Hawaii & California
years ago. Unfortunately once you
deposit your week you can no longer use
it as leverage for an exchange. Getting
the exchange you want becomes a lot
harder, the free week you received is

typically very restricted.

The best way to exchange is called
Request First, if you own a high demand
property you can request the resort and
week you want and not give up your
resort until you have what you want, this
lets you keep your bargaining power.
The example I always used was,
Depositing is like paying someone to
paint your house upfront, and then
asking later when theyre going to
paint your house? They lost all
motivation to work for you since they
got paid already.
Another problem with the 2 for 1 is you
have to pay additional exchange fees,
did I forget to mention it cost money to
exchange. So whats really happening is

youre paying 2 exchange fees instead of

one which is how an exchange company
makes money.
And remember with points because you
can break your week up there is an
exchange fee for every transaction which
can add up. There are also things like
Housekeeping fees with points and
upgrade fees.
Damn they got me again!

A typical Exchange fee is $179.00

domestic, $199.00 international.
The membership fees are:
RCI: 1 year $89.00 3 year $$229.00 -

5 year $349.00
Interval International: 1 year $84.00
3 year $219.00
5 year $336.00
A Gift certificate is $49.00
If you buy an ownership at a resort you
will need to know a number of things
that are important to your success with
exchanging or reselling,
For example with RCI is it a Red week,
White week or Blue week?
Is it a Gold Crown or Silver Crown??
With Interval International is it a Red

week, Yellow week or Green week? Is

it a designated 5 Star Resort? Is it a
Resort of Distinction?
Red weeks are high demand weeks and
locations. Some locations like Hawaii
are Red all year long. You have to own a
red week to exchange into another red
week resort. So if you own a lesser
designation you will probably never get
into a high demand resort.
Some developers will however allow
this to happen from time to time. When
you go to a presentation at that property
and puke all over your sales person
because the exchange from your current
resort isnt working the way you thought
it would, they can quickly overcome that

objection by simply saying:

Well Bob and Mary if you owned here
you will never have that problem again,
you dont currently own a Red week
Or if you own here in Hawaii you will
never have to go thru the exchange
system to stay here because this will be
your Home Resort.
You have to own a 5 Star or Gold
Crown resort to stay in comparable
properties.
This is a good thing for 5 Star and Gold
Crown owners because it stops
everyone in the system from getting into

these properties.
Another negative with Points is
anything goes, so if you buy at a
inexpensive resort somewhere it doesnt
matter, you can use your points at any
property in that system.
But dont fret because you always have
the infamous Get Aways. This is todays
biggest selling ploy ever. It goes
something like this you can buy into our
program at an any level and have
unlimited access to our Get Away
programs (which go under a number of
different names (Last Call at RCI)
These can range from $199.99 to
$249.00 for a week so buying TODAY

can be 3-4 vacations a year.

Amazing isnt it? Sounds almost too
good to be true doesnt it?

Branded
I remember thinking when Marriott,
Starwood the Four Seasons and all the
other Corporate Hotel systems entered
into the Vacation Ownership Industry
what a wonderful thing it was. It gave

the whole industry credibility and I

could now say the word Timeshare
without all the stigma attached. Still it
was a number of years before I ventured
into the corporate world of Timeshare.
After I did I realized how fortunate I
was to be part of the system before the
takeover.
The first thing that I experienced was the
sales people it attracted were a different
breed from what I was accustom to. It
wasnt that they were any better or
worse as people it was just that they
questioned nothing and it felt a little
militaristic with the attitude everyone
had. They seemed less likely to question
anything thrown at them. If the Company
decided to pay less it was OK, If they

charged you for the first day incentives it

was just accepted. If you had to take 4
tours a day that was just part of the job,
after all you were getting Health
Insurance and although you were not an
employee you were expected to act like
one.
It turned out that having 25 years
experience was a detriment rather than
an advantage. It also became very clear
that these Corporations really did not
want experienced sales people that knew
the difference and were better off hiring
new people that they could train (and
I use the term loosely) to say and do
exactly what they were told, to coin the
phrase Every step, Every time, Every

client which is the new Corporate

philosophy.
It no longer had anything to do with a
persons ability to sell something on
their own, it was just the Script
exactly like it was taught, everyday
without question, how sad.
I have always felt a sales person was a
special type of person, usually a free
thinking independent individual and from
my experience in the past the more free
thinking the better the sales person. It
was frightening for me to see a sales
force reduced to robots.
Lets start with the money, since its
always about the money. As an

Independent Contractor you were paid

directly without being taxed, but more
importantly you were paid well, the
average sale commission would be from
$800.00 to a $1000.00+ per sale. Then
there were the SPIFs which amounted
to hundreds of dollars on top of that. The
Bonus structures could increase your
sales commission from 8% to 20%+ . A
good sales person could make a lot of
money and usually be home by 2:00 p.m.
for a nap. It was the BEST PART TIME
JOB on the planet.
If you were a 20% closer you were a
GOD and the developer you were
working for would reward you with free
dinners, presents, cruises, week end
getaways, trips to some of the most

expensive resorts and restaurants

available. The sky was the limit. At one
point every TV in my house (4) was
given to me, once a month as a 20%
closer, I would be able to go to any
restaurant I wanted with a loved one and
order anything we wanted. It was
amazing but those days are over.
Working for a corporation is nothing like
this.
I was a 20% closer with zero
cancellations and was treated like they
were doing me a favor? I was not on any
segments (which we will discuss later)
so I was not able to speak to returning
owners, exit programs, in house tours
etc. this after being in the Industry for
over 25 years, a Sales Manager for over

16 years as well as Senior Sales

Manager and General Sales Manager?
The people running the Corporate sales
rooms now seem to be chosen for their
ability to follow orders without question
(Dont rock the Boat people). They
seem a little insecure and uncomfortable
in their roles. Instead of hiring the best
sales people available they seem much
more at ease hiring people that know
nothing about the industry so their
leadership (again using the term
loosely) will never be questioned.
After all this is a Branded Resort not
some never heard of Timeshare
Company. That was always the response

You get to work for a Branded Resort

and talk to our clients???
Lets start from the top of the Corporate
experience which is Training. It
consists of 2 weeks of script learning,
verbatim. There is no room for
creativity. You had to memorize the
script then be able to perform it for a
number of Sales Managers before you
were able to take a tour.
Dont get me wrong there was always
training involved in the past especially
for new hires and the sales format was
actually basically the same. Remember
you have 90-120 minutes to do your
sales presentation. Its vital that a sales
person be able to move quickly and

always be able to determine where they

are in the sales process. So the Warm
Up, Intent, Discovery, Model Tour,
Closing sequence always existed. In the
past it was left to the sales persons own
discretion to phrase it and structure it
according to the clients profile.
Amiable, Driver, Analytical
or
Expressive. That NO longer is the case,
you stick to the Script for everyone. It
would go something like this:
.
Mr. & Mrs. Smith Welcome to the
Free Gift Resort. Thank you for taking
time out of your vacation to join us
today. I have a great new vacation
concept to share with you.
Blah blah blah

This was followed by whats called

Truisms This is just stating the
obvious, things like Your scheduled for
a 9:00 presentation/ Your staying in
room 313/ your from Chicago, correct?
The rationale behind this is that you start
getting them to say YES and breaking
down the pact they made to say NO.
Supposedly it takes 90 minutes for this
process to take effect, so by the time you
get back from the model tour the magic
should be working. (I often wondered
how much they paid somebody for this
type of mojo.) Hold on it gets better.
The training never included any
Product Knowledge, (I know what

youre thinking how could that be

possible.) I felt exactly the same way
and was horrified that sales people were
put to work with the very basic concepts
of the product and the Script
I always felt that product knowledge
was the most important aspect of training
and the real advantage of the
experienced sales person. The sales
person should be conceived as an
expert.
Would you buy a car or computer from
someone who knew nothing or very
little about that product?
The corporate philosophy is Less is
More?

The sales presentation always includes

the Closing sequence. This is where
you make it or break it. Most sales
people are required to bring in a T O /
sales manager to bring down the sale.
The sales manager is suppose to
overcome whatever objections the
clients might have and offer the infamous
First Day Incentives. The idea here is
that the fear of loss is so great it breaks
down all inhibitions and common sense
and makes the client move forward
TODAY. And it works well!!!
The main difference I noticed is when a
Sales manager is paid only on the sales
he helps bring down most of them dont

spend much time overcoming objections

the way a sales manager would thats
being paid on a override of the room. So
now its more like Santa coming to your
table.
Hello Bob & Mary how is your
vacation going? What have you done so
far? Has Johnny (sales agent) done a
good job? Dont worry about buying in
Las Vegas instead of Hawaii points
are points. All our resorts are just as
beautiful. OK heres all the AMAZING
first day incentives I can offer and
dont ask for anything more cause
everybody gets the same incentives. Do
you want to move forward Today?
NO - OK Johnny will go and get your

gift for attending the presentation,

Aloha.
(Next)
As a sales manager I would always
overcome all objections and spend as
much time as I needed if I felt there was
a sale to be made. The best sales
managers are the ones that know when
theres a sale or not and spend their time
wisely.
To be honest I couldnt wait for the
Sales managers to leave my table. As a
sales executive at the Free Gift Resort I
got the majority of my sales after they
quickly gave up and left.
Peak State is the new corporate buzz
word, its all about being in Peak State.

Macro peak state, micro peak state,

how do you achieve Peak State? When
do you achieve Peak State? Why do you
achieve Peak State? Everyone has their
process to get into this state. Its how
you start your day, its thinking positive
thoughts, its seeing the sale. Its
Affirmations: I am statements like
Everyone buys from me or My family
needs to own this its all about attitude.
This is all good stuff and should always
be practiced in sales on some level.
Theres always the people that listen to
inspiring CDs on the way to work, or
meditate with soft music or in my case
listen to loud rock and roll while driving
to work. I would find myself singing and
humming all day. Whatever you do its

now called Peak State. I truly believe

that a person should do whatever they
feel helps them make a sale, unless its
unethical of course, At the end of the
day its all about sales and closing
percentages. Unfortunately I do feel that
this can get a little extreme and some
people need to put down the Kool-aid.
The Points pitch corporations have come
up with is just using popular trendy
terminology, after all we get points for
everything we buy to use for airlines,
hotels, car rentals etc. so it fits perfectly
with the way people are already
thinking. It sounds much more modern
and flexible. Unfortunately the system is
so convoluted nobody can really

understand it in 90-120 minutes so the

corporate thinking again is Less is
More.
A lot of people buying with points have
no idea that they dont have enough to
come back to the resort you just showed
them, or they can only stay on the first or
second floor with no view, that they own
off season not peak season. And although
theyre sitting in Hawaii they just bought
Orlando, FL. Were their ownership is
worth nothing because of the huge
amount of inventory that exists there
already.
As the Sales Managers would always
say Points are Points it doesnt matter
where you own them? In reality resale
has a lot to do with what and where you

own.
Back in the old days before the
corporations came along to clean up this
Timeshare stuff you bought the resort
you just saw, and in most cases you
owned it with a Deed. So if you
purchased in Hawaii you would be
trading and selling your interest there.
This can make a major difference
in your ability to resell and exchange.
Points are Points its all the same<I
dont think so.
Another corporate brainstorm is the line
Segmentation, this is a breakdown of
types of sales made. So if you have a
high closing percentage of mini-vac
sales you would be put on this segment.

If you did well with Owner tours you

would be put on this segment etc.
This concept is nothing new really 20
years ago it was called a Love Line
because only certain people were able
to talk to certain types of clients. Then
we called it a Power line which was
basically used when sales were not on
track to meet budget, you would send out
your best agents when available before
using the regular rotor to try and save the
month. So again its just new
terminology taken to an extreme level.
The problem with this type of line is it
has a way of being manipulated and
abused by management. Being on the
right segments can significantly reflect
the amount of sales or money one can

make. There were many days that some

sales people would get 3-4 tours and I
would only get 1. Or even though I was
number 3 on the rotor I wouldnt get out
until the 15th tour? This is how a
segmented line can be manipulated
when its put in the hands of corrupt
management.
In order for this type of system to work
ethically it should be computer
generated by a third party that has
nothing to do with the everyday running
of the Sales room, and followed
precisely without interference from
management. If your number 3 on the
rotor you get the third tour coming in,
You deserve it!!!

Resale vs.
Developer
This is the biggest cop out for Sales
Directors/Sales Managers. The Resale
companies are killing us and thats
why our rescission rate is so high.
Let me start by saying in 2011, I was
working as a Sales executive at a
Branded Resort. I was averaging 8+
sales a month with zero rescissions. The
amazing part of this is not just the zero

rescissions but the fact that not one Sales

Manager or Director of Sales ever asked
me about how I achieved this or even
commented that I was doing well with
my rescissions. Although like all
Management they blamed resale for
their high rescission rate?
The few Sales people that were paying
attention would make a point of asking
me about it and I was all too willing to
discuss it with them and share what I
thought was making the difference.
This again is the biggest difference in
leadership styles in Old vs. New. A
Sales Manager should always be willing
to share their knowledge with sales
people, after all the goal is to develop
the best sales team possible. Again one

of the biggest mistakes some developers

make is only paying a Sales manager on
sales they are a part of versus an
override on the room. This defeats team
spirit and team building and keeps the
mangers from openly sharing what
theyre doing because theyre forced to
compete with the other managers.
As a Sales Manager I was always
complimenting sales people on their
achievements and would always
acknowledge them and not feel insecure
about bringing it up at a sales meeting
and let them talk to their peers about it
firsthand. The morning sales meetings
now are the same old boring stuff.
Something quoted from a book that was
read the day before for the meeting.

Anyway back to Resale.

Although anyone can Google Timeshare
Resale and get hundreds of hits, there
are still some negatives about Resale.

Who are you actually dealing with?

Can this company in Florida actually
sell you a Timeshare in California?
Another concern is will you actually
get Title to this ownership? People
looking for the best value will always
try and buy the cheapest listing
available, here are some things to
consider.

Does the seller have clear title, (If the

seller owes more than the asking price,
this will usually not close escrow).
Is the seller the only one named on the
Title, (a lot of people will try and sell
their week during a divorce without the
other spouses consent, this will never
close escrow)
The same holds true with Resale
BEWARE if something sounds too good
to be true.
The way to be prudent about this
purchase is to have a Title Company do
a Title search. Unfortunately you could

spend as much as $1000.00 to find out

you cant get a clear title. So if youre
willing to do a Title search on every
good deal you find out there you may
actually have to spend thousands of
dollars before you get to buy something
free and clear.
Another concern would be usage. Dont
assume that after you close escrow you
can instantly use your ownership. Weeks
can be banked or pulled forward, The
seller may have already used it for the
current and following year with an
exchange company.
Believe it or not the biggest problem I
have ever witnessed with Resale is
people have NO idea what they own.

They were told one thing and in reality

own something completely different
which is usually the reason most people
are selling, its not working the way they
were told it would! I cannot tell you the
amount of people I have talked to that
insist they have a Deed to their resort in
Mexico when you cant get a Deed in
Mexico as a non-citizen.
OK so is this
cancellations?

how

you

stop

The answer is NO. I would never bring

this stuff up, unless the client did. You
need to be the expert and have these
answers but the best way to address this
problem is to assume everybody youre

speaking to has already heard about

resale. I would simply state during my
presentation that Im an owner of a week
I purchased 20 years ago and as much as
I enjoyed the ownership I would gladly
sell it right now for next to nothing so I
could buy a more flexible vacation plan
like the ones that exist now. I would
casually mention that there are thousands
of people like me trying to get rid of the
older less flexible weeks.
For example: With my week I have to go
for a week at a time, I have to stay in the
size unit that I originally purchased and
as much sense as a 2 bedroom made 20
years ago my children are grown and
now its just my wife and I using it and
we dont need a 2 bedroom. I have to

stay in the season I purchased, etc. etc.

This usually answers the Resale concern
without bringing up Resale
and stops most clients from even
investigating this option.
I will discuss this subject in detail in my
next book, (Soul Selling) if I ever get
this one published.
Here is my honest opinion: If youre
planning on using the same resort year
after year buy a Deeded Resale week.
The deeded week is considered your
home resort and is the guarantee every
year, This means no exchanging, no
exchange fees etc. These weeks on the
resale market are incredibly cheap, you

can expect to pay 30%-70% less than

the developers price. If youre planning
on exchanging as well make sure to buy
in an area with a lot of demand and little
inventory, like Hawaii or California or
prime ski weeks and holidays. With the
resale prices being so low always buy a
2 bedroom. But remember these are for
one week at a time, you cant break up
usage or use for other travel benefits like
Hotels, airline tickets etc.
If you want the flexibility of Points
always buy one with a Deed, Like Hilton
or Starwood, A deed is at least
something that has some value in the
future.
A straight Point Based system is like

joining a Club. These have very little

value on the resale market and your only
hope is finding someone else who
already owns the same program and
wants more (if that is even possible). A
Points Based system benefits the
Developer much more then the
consumer. Always ask if there is a Deed
that is transferred to YOU and your
family, NOT a Deed that stays in the
Developers Trust.
The reality is this: There is a certain
price point where a Developers price
no longer makes economical sense. If
the price to purchase is $50,000.00 +
and the maintenance fee is $15002000.00+ a year this just doesnt add

up.
With the cost of money even at todays
rates you could use that equity of the
purchase price for a vacation every year
and keep your money. Not to mention the
Maintenance Fee which is roughly
$200-$300.00 a night in addition you
would be saving. Dont get caught up in
the HYPE. (sorry gang)
For you owners trying to sell on
Resale:
NEVER PAY AN UPFRONT FEE!!!
They may call this an Appraisal Fee,
Marketing Fee, Advertising Fee or
Marketing Analysis Fee. This is your
first clue that youre dealing with the
wrong people. The upfront fee is all this

company is concerned with and is

primarily how they make their money.
Your timeshare goes on a list with all
the other suckers and is rarely seen by
anybody.

Own vs.
Rent
This is probably the biggest selling point
in a sales presentation. Charts and
projections are commonly used to make
this point.
Bob & Mary if youre going to spend
$150.00 a night for the next 20 years you
will be spending ********* dollars

anyway and with **** inflation thats a

lot of money. If I can show you how to
own your vacation with all these other
benefits for the same dollars Why
wouldnt you become my newest owner
today?
Well Bob & Mary let me introduce you
to
www.redweek.com
or
www.tug2.com. For a small fee to join
these sites (usually $15.00 a year) you
now have access to Timeshare resorts
anywhere in the world. You can either
buy (at huge discounts) or rent at most
locations. Let me give you an example of
how I use these sites.
I currently own a vacation ownership at
a resort I like to use on a regular basis.
Unfortunately I have not been able to get

the week I want at the property for the

last 3 years. I diligently wake up early
so I can be one of the first to call 1 year
in advance to make my reservation. At
exactly 8:00 a.m. when the reservation
office opens I start to call. Busy, so I
wait 30 seconds and call again, busy,
then again, busy and so on and so on. By
the time I finally get thru there is nothing
left. This has happened for the last 3
years. So if I wanted to vacation the
second week of June I usually end up
with the third week in October? And Im
an owner paying a maintenance fee?
Heres the solution Ive discovered. I
just looked at the rentals at redweek.com
for example and found the second week
in June available at my resort. The rental

price is about what my maintenance fee

is or less! You dont have to own
anything just spend $15.00 a year to join
the web-site.
This will not always get you exactly
what you want, but is another option to
take advantage of.

Timeshares
Future
So the question is How has
Timeshare changed in 25 years?
Sadly my opinion is very little. Its the
same old story with different
terminology. The Branded (Corporate)
developers which have become the
leaders in the Industry are using their
names to take advantage of this

marketplace. Corporations have done

to Timeshare what they do to
everything they get involved in. Milk it
for all its worth then bail out.
Another reason I believe this is because
a lot of the people who are responsible
for Timeshares bad reputation in the
past, keep resurfacing. A number of the
Branded properties and companies are
now run by some of the most
questionable people I ever had the
misfortune of working with. It seems this
type of individual always has a place in
this industry. Until that has changed (and
Im not holding my breath) Timeshare
will always be Timeshare?????? Good
Luck!!!

Excerpt from SOUL SELLING

Building
Value
This was always one of my first morning
sales meetings at a new resort. What is
Value? After all making a sale is
building value, right?
After asking a number of people at the
morning meeting and getting answers
like:
Its the 2 for 1 exchange

Its money they were going to spend

anyway
Its staying in a Condo instead of a
Hotel room
Its own vs. rent
I would finally have to say Building
Value is whats important to your
clients, NOT YOU!!! Theres an old
saying that making a sale is listening
not talking and what that means is
asking the right questions and (really)
listening to the answers. This is what we
called the Hot Buttons today in
Corporate lingo its called the
Dominant Buying Motive. When you
listen to your clients a couple of things
happen.

1.) Your letting them talk about

themselves (people love to talk about
themselves) the more you let them talk
about themselves, the better sales person
they think you are. If you can get them to
honestly open up theyre actually telling
you how to sell to them.
It always amazed me when a sales
person would walk in my office and say
I got this person whos a jerk, all
theyre doing is puking all over my
presentation. In reality you should
stand up and shake that persons hand.
Theyre telling you how to sell them. I
would simply say to that client.
Bob I appreciate your concerns but if
I can answer your questions and clear

up your objections to your satisfaction,

am I looking at my newest owner
today?
This is whats called a Trial close and
you might be surprised with the answer.
2.) When you turn the table to your Sales
Manager these are the things you need to
tell them. It doesnt matter what they are.
If the wife loved the color of the carpet
(hot button) the kids loved the slide in
the pool (hot button) Again its whats
important to them.
3.) Some Sales agents spend way too
much time on things or resorts they like.
Showing a retired couple who live in
Ohio who are on their first trip to

Hawaii, castles in England or resorts in

Tahiti is wasting your time, these folks
are never likely to go there, a nice resort
in Branson or Orlando for the grand kids
would make a lot more sense. If youre
not sure ask!!!
Bob and Mary is taking your grand
kids on vacations important to you?
Where are some of the places they
would love to go?
Do you think leaving them this
ownership might make them think of
you every time they use it?
Anyway!
Since this book is not about training I
will continue with these training
concepts in my next rendering Soul

Selling.
Mahalo for buying my book.
Aloha & Great Vacations