Prizes…We Like The Prizes

Reading a lengthy thread on a FB page dedicated to bitching about the ills, perceived or real, of a certain timeshare developer. The original post and many comments that followed were all about how the salesperson had kept them past the allotted: hours, how the manager had “made” them sign paperwork and how the purchaser didn’t get access to their points until 2022.  

One person posted this comment:  “Why do you continue to go to these sales presentations?”  A valid question I ask consumers every single day. The original poster wrote this: “Because I like the prizes.” and completed her comment with a smiley emoji. 

While it’s bad enough that this happens millions of times per year in this country, what followed that comment floored me; and I’m not easily floored in timeshare matters. 

At last count, there were 27 comments, including from the original poster about these prizes and how much they enjoyed trying to get more prizes out of the person booking the sales pitch. 

I say I’m floored for a number of reasons:

> These aren’t prizes, they’re bribes 

> These bribes are baked into the marketing and sales costs of every single timeshare product the developer is selling…as is the commission that the booker gets for getting you to the sales pitch

> If the standard bribe is $150 or two rounds of golf, but you think you’re being a good negotiator by getting them to increase it to $300 or two rounds of golf and two dinners, you’re delusional in not understanding how this works

> These bribes rarely if ever, turn out to be worth the time and mental anguish far too many people complain about 

I’ve said for more than 20 years that the marketing and sales paradigm has to change. I’ve also said that unless/until the consumer changes their behavior, nothing will change. There’s absolutely no incentive for the developers to change what they’re doing when they’re making the money they are making. 

So why doesn’t the consumer change?  Because they’re too busy clamoring for illusionary prizes. 

Bonus Edition! The More Questions-The Murkier Things Get

I’ve sufficiently thawed out from attending ARDA’s Spring Conference, Timeshare Together, to sort out my notes and thoughts; many of which will be featuring in upcoming posts. 

Today I’m going to talk about Bonus Points. I have many questions as you’ll see. 

I’m not breaking any conference secrets by saying that many, and from the Sales and Marketing session I attended, perhaps most developers offer up bonus points as an incentive for the consumer to buy that day. Let’s say you’re looking at a purchase of 100,000 points annually for $25,000.   As an incentive to sign on the dotted line right then and there, the sales manager will offer to “throw in” 100,000 one time bonus points which may bring you up to VIP, Gold, Platinum, Super Secret or whatever “upper” level they have. 

The idea behind this is quite simple; the consumer thinks they’re getting a deal by getting “free” points and the developer gets a chance to sell them more points once the bonus points are gone and the hapless consumer is no longer at the Super Secret level. 

First, as we all know, there’s no such thing as free so get that out of your head immediately. 

Second, and where the basis for this post began are these questions:  Where do these mysterious bonus points come from?  What are they?  Who, if anyone is paying maintenance fees on them?

The more questions asked, the muddier the issue becomes. 

Let’s simplify things. Let’s say that the developer has registered the site and the total number of points available is 10,000. That’s it. They can’t sell more than 10,000 points. So now they’ve been selling for 5 years. Half of their inventory has been sold. They now have 5,000 points to sell. Mr and Mrs Smith come in on a mini-vac and are given the opportunity to purchase 100 points for $20,000. They balk. The closer comes in and offers then 100 one time bonus points on top of the annual 100 points if they buy now. 

So does this mean that the site now has only 4,800 points to sell this year, but thot 100 bonus points will be back in the inventory pool next year?  Is it the same inventory pool?  If not, what pool is this coming from?  

Making things even muddier, if the Smiths are responsible for paying $1,000 annual maintenance on their annual 100 points, who is paying the $1,000 maintenance on the 100 bonus points this year?  If no one is paying those fees, are they being pro-rated among all the owners?  Or, if I suspect, no fees are being paid on the bonus points, because they’re illusionary, why should anyone be charged maintenance fees on something that is illusionary?

You see, the more questions asked, the more questions arise and the muddier things become. 

If anyone can answer these questions and un-muddy these murky waters….please do. 

I’m The Timeshare Crusader

What does that mean?  In a nutshell; “Striving to be a catalyst for positive change in the timeshare industry as well as helping consumers make educated choices. Not affiliated with any timeshare or entity.”

I felt it was necessary to write today’s post because lately I’ve been accused of blaming the consumer and being a mouthpiece for the timeshare industry. 

Let me put it as succinctly as I can for my small contingent of detractors:  YOU DON’T KNOW WHAT YOU’RE TALKING ABOUT. I’ve been at this for 21 years. I’ve seen the good, bad and ugly in the industry and in consumers. Anyone who has read even a tiny fraction of the more than 600 blog posts I’ve written, more than a few pages of the three books I’ve written or co-written or a small number of the more than 300 articles, radio programs and/or television programs I’ve been honored to be included in and still thinks of me as anything else than pro-consumer and unaware of some of the more nefarious tactics still in use by some in the industry is one of two things—-ignorant or biased by their own agenda. 

Does the consumer bear some responsibility for sales pitches that go on for 6 hours?  Yes. Or for finding out that the resale “value” of the $20,000 timeshare they purchased is only $2,000?  Yes. Or for buying yet more timeshare because they were lied to and told that no additional maintenance fees would be charged?  Yes.  

My goal has always been to arm consumers with the basic information they need before they even arrive at a timeshare resort. 99 times out of 100 however, they don’t. And worse yet, they forget Consumer 101 which is that the salesperson has one goal and only one goal…TO SELL SOMETHING. 

Can timeshare be sold with lying?  Yes.  I did it for more than 4 years. Can a consumer expect the salesperson to voluntarily disclose everything about the product, the usage rules, the resale value and/or the fact that the secondary market is awash with similar products at a tiny fraction of “today’s price”?  No. 

It’s pretty simple. The industry is not going to change on its own. It’s just a fact. They’ve been at this for 50 years now. Yes, I worked hand-in-hand with the leader of the timeshare industry in the US to craft the important document “Important Information For Buying A Timeshare https://www.arda-roc.org/important-information-for-buying-timeshare. And yes, I’m very proud that I’m the first outsider that the industry has worked with in disseminating consumer information. Is it everything consumers need to know?  No.  Are the less than honest salespeople going to voluntarily give it out to their customers?  Again, no. But it’s an important start and there’s absolutely nothing that smacks of me being a mouthpiece for the industry in there. Go ahead, read it. 

This mission that I’m on has never been about me; something that can’t be said about some others who hold themselves out to be the only voice that matters. However, when I’m attacked by those within or outside of the timeshare industry, you can bet I’ll stand up for myself. As will others that respect what I’m doing. 

One more thing, the powers that be in the timeshare industry are, as the old timers say, rolling on the floor laughing over the thought that I’m a mouthpiece for anyone other than myself. 

So now, my cape is straightened, my course is calibrated and I’m flying again. 

Not My Circus

Here’s my comment about the faux controversy some in the advocacy arena have been attempting to drag me down into:

My knowledge, experience and track record speak for themselves. Anyone who thinks for a second that I’m a mouthpiece for the timeshare industry or that I don’t acknowledge the very real damage that’s been inflicted by some dishonest salespeople/managers/organizations is merely showing their ignorance of the complexity of the situation and their arrogance in thinking that they’re the only person with the answers.  

Not my circus, people. Enjoy your peanuts. 

When Consumer Advocacy Is Nothing More Than Ranting...Or Worse

I may have written about this matter before, but since it’s an important issue, I’m tackling it again. 

Just last week I came across yet another “association” that purported to be in business to fight the evil timeshare industry and protect the public. I’m not publishing their name as I have no intention of sending them consumers or their money. If I remember correctly, they wanted $19 a month to access their blog and not much else. Don’t you feel better already knowing that this blog doesn’t cost you a single cent?

This association didn’t divulge their membership numbers or what they’re actually doing to protect consumers from the timeshare developers. They join the ranks of many other groups that can’t even agree among themselves what needs to change to make timeshare better for everyone. 

Being an advocate for positive change in the timeshare industry as has been my stated mission for a number of years now, takes more than just shouting on a platform-social media or other. It takes an understanding of the issues as well as, and this is key, the respect of the key players in the industry. 

Let’s face it; left to their own devices the industry is not going to change. They’re too powerful, too wealthy and been at it for too long. And make no mistake; there are serious issues that need to be addressed to prevent the entire industry to come crashing down which would do irreparable harm to both the good guys in the industry and millions of owners. 

When I worked with ARDA on this important document https://www.arda-roc.org/important-information-for-buying-timeshare I expected some positive feedback if for nothing else than the fact that the industry was for the first time ever, acknowledging the whole “oral representations” clause in the contracts, which is at the crux of 95% or more of the problems consumers encounter. 

But instead, it was met with either indifferent silence or out and out anger. 

Why is that?  For the associations and people soliciting money from consumers whether in the form of membership dues or campaigns designed to provide funds for personal gain, it’s a hit to their wallets which in reality is no better than a developer hiding the document because it interferes with putting money in their wallet. 

The other reason for the indifference or anger comes from the misguided notion that all the blame lies with the industry which is just not true. Consumers bear part of the responsibility, whether it’s letting the sales pitch go on for 5 hours, not asking questions, believing the salesperson without verifying anything  or not doing the timeshare math until they’ve returned from vacation. But the minute I have the audacity to suggest that there’s sufficient blame on both sides, I’m accused of being a mouthpiece for the industry, which I’m obviously not. I’ve heard every single lie told by salespeople and I have no tolerance for them. They need to be thrown out of the industry for good. 

I guess my point in this post is this-I’ve  worked a long time to attain my status as The Timeshare Crusader. I’m not affiliated with any company and will remain unaffiliated until I hang my cape up. Until then, keep this in mind...none of the people and questionable associations that purport to be consumer advocates are working with the industry. None of them are even a blip on the industry’s radar. None of them will get a call or an email to discuss a post or a tweet. None of them have addressed an industry event. None of them will be at the industry’s largest and most important event, being held next month. 

None of them but me. 

Perpetuity-Is It Forever?

 According to Merriam Webster, the definitions of perpetuity are as follows:

1

: ETERNITY sense 2

2

: the quality or state of being perpetual

bequeathed to them in perpetuity

3

a

: the condition of an estate limited so that it will not take effect or vest within the period fixed by law

b

: an estate so limited

4

: an annuity payable forever

Timeshare owners often have a perpetuity clause in their contract. And many get hung up on that word, or it’s synonym-forever. 

All too often not understanding what it really means opens up the doors to both complaints and scams. 

Let’s get some clarification on this. In the US most timeshare contracts give the purchaser the so-called full bundle of rights. Those rights are: use, save, rent, will and sell. If you don’t get these rights when purchasing, perhaps it’s a sign to purchase something else. 

Now, for purposes of this post, I’m not going to delve into the restrictions that come with those rights, for instance some developers limit the method that you can advertise rental or sale of your timeshare. And of course there’s the simple fact that your $20,000 timeshare is worth less than $5,000 the very next day. That’s fodder for another post. 

With the usage benefits of your timeshare come a myriad of financial responsibilities which I’ve covered in previous posts. One of those financial responsibilities are maintenance fees. If you want to use your timeshare, you must be current on your fees. Maintenance fees is where the misunderstandings centered around perpetuity begin. 

Your contract in perpetuity does not mean YOU are on the hook for these fees forever. It means that THE OWNER of the timeshare is on the hook for the fees. That’s a big difference. If you sell your timeshare, the new owner is responsible for those fees not you. 

Many of the shady self-proclaimed exit companies use scare tactics saying exactly the opposite in an attempt to coerce you to cough up $5,000 or so for their non-existent services. 

Now, there are cases where you might be responsible for these fees even if you’ve “sold” the timeshare. I put the word sold in quotes for a reason. Let me explain. In 90% of cases, if you sell your timeshare, it’s considered a valid sale. The other 10%?  Well, if you’ve engaged one of those scammy exit companies and they transferred the timeshare to an asset-less company, known as a Viking Ship, the developer or HOA is not going to approve this transfer as they are well aware of the fact that the aforementioned company is not going to pay fees. 

If however, the developer or the HOA approves the sale/transfer to someone else and that person fails to pay the fees, you are not responsible or liable. 

Perpetuity does not mean that your heirs take on the financial burden, or the vacation advantages of the timeshare when you die, except if you still owe on it and/or if their names are on the deed. No one has to accept anything, including a timeshare, in the event of a death. 

If you think about it, this is exactly the same as a house, but I don’t see anyone complaining about the fact that property taxes will be collectible in perpetuity unless/until the house no longer exists. If you sell the house, the new owner is responsible for the property taxes. If the sale or transfer of the house was fraudulent or outright illegal, then the onus is still on you. 

Perpetuity yes. Perpetuity as it relates to you?  No. 

The morals to this post:

> Understand what you are planning on purchasing or already own

> Don’t engage with scammy self-proclaimed exit companies 

> Don’t begrudge the developer/HOA/management company for doing what they’re supposed to do, which is collect maintenance fees

> If you’re thinking of purchasing a timeshare from an individual or a broker, do your due diligence to see if all fees are current or else that great deal could turn out to be anything but

> Before you complain about your contract’s perpetuity clause, understand what it means to you

A Few Words About Timeshare, Bitcoin, A Mouse and Unwarranted Trust

Every day it seems I read multiple emails and social media posts from frustrated timeshare owners who, in an attempt to “rid” themselves of an unwanted timeshare, have paid some company 3, 4 thousand or sometimes more only to be left with the timeshare and no answer from the company. 

It also seems that every day I see warnings from those who know what’s what, including myself, to not engage with these companies that seem to emerge from the murky depths with frightening regularity. 

The simple reason of course as I’ve written about extensively is that a timeshare contract is just that; a legal contract. A legal contract shouldn’t be entered into lightly and getting out of one takes someone with both a clear understanding of legal matters and a license to perform such legal matters, an attorney springs to mind. 

Nevertheless, these self proclaimed exit companies are raking in money at a rate that rivals Bitcoin’s valuation. I got to thinking how is this possible?  The exit companies I mean. Bitcoin is something I’ll never grasp. 

Here’s my explanation. 

Most, if not all of the owners who want out, bought their timeshare as the result of a 3 hour high pressure sales pitch while on vacation. I’d bet you a share of Bitcoin that those consumers who were savvy enough to purchase on the legitimate secondary market and saved thousands of dollars aren’t flocking to an exit company. Those high pressure sales pitches came with a bribe of some sort. Here in Orlando, pre COVID, it was usually a free or highly discounted theme park ticket. 

Now think for a minute. If you were offered a free theme park ticket to the theme park with a five foot tall mouse as it’s ambassador in exchange for sitting through a sales pitch on the virtues of opening a brokerage account so that you could buy a quarter share of Bitcoin, you’d be more than a little suspicious, right?  After all, what does the mouse have to do with Bitcoin?

This is where the trouble starts my friends. The hapless consumer doesn’t question why Billy Bob’s Super Duper Eastgate Resort-located just minutes from the mouse’s house (OK, technically 39 minutes at 4:00 am) is offering tickets to visit the mouse instead of say, four yummy steak dinners at the Tiki House on their own property. 

That’s the first step in unwarranted trust. No one questions it. This leads to more and more unwarranted trust, which I’ve discussed in previous blog posts, most recently where I warned consumers that the timeshare salesperson is just that and not The Oracle At Delphi. 

So now we have a consumer with an unwanted timeshare. Perhaps they feel that their developer and HOA are not to be trusted. Maybe they’ve been swayed by social media groups that do nothing but cry foul against the developer all day long because they failed to get anything in writing. Whatever the situation, they’ve been conditioned to place trust and thousands of dollars with those that don’t deserve it. 

Couple that with the fact that people who have been scammed or think they’ve been scammed will go to extraordinary lengths to defend their actions and do almost anything to make it seem as if they haven’t been scammed or more to the point, made a mistake. 

Think about this the next time you see something that, after thinking about it for more than a few minutes, makes no sense. Like a timeshare resort offering you anything other than cash or something on their property. The seeds of unwarranted trust are being planted.