The Business of Timeshares On The (Las Vegas Strip)!
Very Simple – Understand How It Works
Timeshares are joint ownership properties where everyday people can lock in a temporary vacation home annually for a fraction of the cost. On the Vegas Strip, this product is sold daily to thousands who visit on vacation or a quick get away. In our last trip, we realized that timeshare companies are able to spend $1 and get $10 back.
Here’s how they do it:
1. They purchase wholesale tickets to activities that tourists are most interested in i.e. Dinners, Shows and Casino Access.
2. They employ performance based marketing agencies to promote their offer on the Vegas Strip.
3. The marketing agency offers you free tickets, dinners and casino access in return for a few hours of your time if you qualify first.
4. To qualify, you must have a credit (in most cases), a certain household income and if you’re with a significant other, the same address.
5. Once qualified, you’re shipped off to a presentation center where you learn about the vacation industry and just how much you’re likely to spend on lodging in the future with not much to show for it.
6. You do a tour of the property to see the amenities and an example unit or two.
7. The Offer – You’ll be asked to pay between $3,000 – $4000 as a deposit on a total balance of around $30,000 due over a 5-7 year period.
8. It’s then your decision to take the offer or to decline and get your original tickets promised.
We knew that it was expensive for timeshare companies to walk through presentations and give away gifts for free but we didn’t know how much.
We we’re told that timeshare companies pay about $850 per couple to show them the opportunity. We also discovered that 1/3 of all couples/people who see the presentation will make a purchase that day.
So here’s how they turn $1 into $10:
– They pay $2,550 per 3 couple presentations done.
– One couple says yes and make a $3-4k deposit on a $30,000 balance.
– timeshare company breaks even with a small profit on the initial payment and gets a commitment on the balance.
– Close to $3,000 spent to acquire one couple but the deal was worth $30,000. If you break that down to a simple ratio, it’s $1 spent for every $10 acquired.
Take the steps above and apply it to your business, just maybe you’ll be able to spend $1 and print $10!