Today, I wanted to pass along a potential income opportunity to our audience. It's an opportunity for everyone, but RV owners or those more familiar with RVs may have a bit of an advantage. Let me see if I can explain.
RentWizard is a new company with a new website designed to facilitate RV rentals between individuals that want to rent an RV and RV owners that want to earn some income and take advantage of some tax deductions. Unlike us full-timers, most RV owners only use their RV a few weeks a year, and renting the RV can certainly help defray the costs of RV ownership and potentially lead to some significant extra income.
Just like Uber facilitates the connection between individuals with transportation needs with individuals offering their private vehicles for rides, and just like Airbnb & VRBO facilitates the connection between individuals with lodging needs with individuals offering their private properties for rent, RentWizard intends to be the leader in this "peer-to-peer" connection for RV rentals.
What does that mean? Well, it means we paid $199.90 to become an Ambassador for a year. That cost gets us an Ambassador Kit with all kinds of literature to promote RentWizard and the opportunity to earn commissions from that promotion when people we refer to the RentWizard website sign up using our Promo Code "DREAMS". Yes, we're paying to promote RentWizard and here is why.
First, there is a 0ne-year, 100% money-back guarantee. If we determine this isn't right for us, we just call anytime within 365 days of our sign-up, and they will refund all our money, no questions asked.
Second, there are four ways to earn money through promotion of RentWizard, and I'm confident we can earn far more than the annual $199.90 Ambassador subscription fee. I'm more confident in that because we're getting in early while there is still a huge market to be tapped. I could be completely wrong on how much potential there is, but there is very, very little risk.
Let's look at how an Ambassador earns money. This will allow me to answer questions you may have as we go.
Basically, an Ambassador hands out promotional literature and talks to people about RentWizard. The primary audience is the RV owner who may be interested in renting out their RV once they know the potential income and tax deduction opportunities. But an Ambassador also promotes the Ambassador opportunity to anyone that might be interested in earning some additional income.
RentWizard says there is "no selling" involved, but that's not quite accurate. Ric is adamant that it's not the job of the Ambassador to convince someone that doesn't want to rent their RV to rent their RV - what they mean by saying there is "no selling" is that an Ambassador is just promoting the brand and the website and it's up to the website to do the selling.
However, there are elements of selling in that you have to talk to people and get them to go to the website AND use your Promo Code IF they decide to sign up. Sure, the website does the ultimate convincing, but if you can't get anyone to go to the website, you earn nothing, and if they go to the website but don't use your Promo Code when they sign up, you earn nothing. So, the level of your earnings depends on how many people you can get yourself and/or the promotional literature in front of and how well you present the opportunities so that they are interested enough to go to the website AND use your Promo Code.
Just so you know, every person that is interested in finding out more about RentWizard can go to the website and poke around. Under the "Help" section there are FAQs for potential renters, Ambassadors, and RV owners. However, anyone that takes the next step to rent an RV, list an RV for rent, or become an Ambassador has to create an account.
The first thing the system does when you are creating an account is ask if you have a Promo Code from an Ambassador. It tells the new member that a Promo Code gets them six months additional (18 months as opposed to 12) as a new Ambassador or RV owner (that is listing an RV), so it prompts them for a code, but it's still in the hands of the person signing up as to whether or not your code is used (and whether you get paid for their sign-up, rentals, and future renewals). We deal with that all the time in our various relationships, so it's nothing new to us, but it can be very frustrating when you know you've done your best and you don't get credit for every single listing or referral.
Okay, now that we've looked at the overall idea, here are the four specific ways an Ambassador earns money:
- Listings: An RV owner uses your Promo Code and signs up to list their RV for rent - you earn 40% of the $199.90 listing fee (about $80)
- Rentals: An RV owner that used your Promo Code to list their RV actually rents their RV - you earn 5% of the total rental income
- Referrals: Any individual uses your Promo Code to sign up as an Ambassador - you earn 40% of the $199.90 Ambassador subscription fee (about $80)
- Renewals: An RV owner or Ambassador that signed up using your Promo Code renews their listing or Ambassador subscription fee - you earn 40% of the $199.90 annual renewal (about $80 per renewal)
Now, in the online session I attended the other night, RentWizard put up a chart of potential Ambassador income. It was based on getting a certain number of listings per week and some other assumptions. To me, the number of projected listings per week seems a little high, but I could be wrong. Certainly, they want Ambassadors that can rack up listings because that is what they really need here in the beginning. But it's the consistency and renewal commissions that can really make a huge difference over time, and that's probably what gets me most excited.
On the other hand, if you are very casual about the promotion, we're not talking about big money here. But it only takes having three listings or referrals per year to cover the annual Ambassador subscription fee, and if you have more listings and your listings do a few rentals, you can have some nice supplemental income.
Let's look at the four ways to earn money in more detail.
Again, this is what RentWizard needs and that is why they've created such a nice opportunity for Ambassadors. They want as much on-the-ground promotion as possible to get listings.
So why would an RV owner want to rent their RV? There are a few reasons.
- Most RVs sit unused for most of the year just depreciating in value
- Renting your RV during the unused periods can bring in some significant income or at least cover some of the costs of ownership (especially if the RV is financed)
- Once you are in the business of renting your RV, there are some significant tax deductions that can be used to offset other income and reduce overall tax liability - most people don't understand how big of a deal that can be (I've looked at some of the tax laws, and while it can get complicated, there are particular provisions that make this more attractive)
So why use RentWizard?
- RentWizard has a unique Tax Deduction Estimator and Rental Income Estimator that helps RV owners see the potential benefits
- RentWizard will be launching massive media campaigns giving RV owners wishing to rent their RVs more exposure than ever
- RentWizard facilitates the connection between renters and RV owners and handles all the payment processing
- RentWizard allows RV owners to set their own pricing, rental periods, rental restrictions, insurance requirements, and more - the decision as to whether to rent or not rent is all up to the RV owner
- RentWizard fees are reasonable at $199.90 per year plus a service fee of 15% (marketing, payment processing, security) of the total rental - the service fee can be built into the owner's pricing to get to the "net" rental they want
- RentWizard does not charge renters a service fee, so that potential barrier to a rental transaction is eliminated
So why would an RV owner want to use an Ambassador Promo Code?
With their first listing, using a Promo Code gives the RV owner an additional six months - so they get 18 months to try out the service instead of just 12.
This one is pretty easy. When RV owners that used your Promo Code actually rent their RV, you get 5% of the total rental income out of the 15% service fee they pay.
Now, it's important to understand that some RV owners will want to list their RV for rent, but they will be very particular about the price they will accept, the potential renter, the rental period, etc. Many of the tax advantages for the RV owner come into play as long as the RV is "available for rent", so some owners may not actually rent at all.
One thing Ric mentioned that is quite interesting is that many RV owners list their RV just to see what happens. They often turn down potential renters at first, but after a few inquiries they start to see the income they are potentially losing and give it a shot. Once they have a successful rental or two, they become much more enthusiastic.
Nevertheless, we're going into this looking at the rental commission as a "bonus". Hopefully, it's a much bigger bonus than we expect.
We wouldn't be putting this opportunity out there if we didn't think there is some significant income potential for those that want to really go after it and some decent supplemental income (without a lot of risk) for everyone else. Of course, we're interested in the income from any Ambassadors that sign up using our Promo Code, but we also want to make sure any that do sign up know what they are getting into. We want folks to sign up because they are pretty sure it's something they think they want to do and can do to attain whatever financial goals they have for themselves. We want it to be profitable enough for folks to renew as Ambassadors year after year and see it as a "no brainer" to do so.
Let's be clear though. This is NOT a multi-level marketing (MLM) business. We only earn the $80 commission when Ambassadors sign up using our Promo Code and pay their $199.90 (or two installments of $99.95 each) and when "our" Ambassadors renew. No Ambassador earns anything on the listings, rentals, or referrals of other Ambassadors. There is no "downline" to worry about, no training to be done, no meetings to attend. Present the opportunity, and if someone signs up using your Promo Code, you're done. By the way, the new Ambassador gets an additional six months by using your Promo Code, so they have 18 months before the next subscription payment is due.
Linda & I have both been in multi-level marketing companies over our lifetime (and paid more than $200 to get involved). She has been quite successful with Mary Kay and Partylite in the past, but we've "been there, done that". With our reach, we get offers all the time to become part of the latest, greatest MLM plans, but we're simply not interested. This is different - the income potential for "recruiting" isn't as high, but there is also much less work, hassle, and worry about the actions of the recruits.
So, what happens when an Ambassador decides not to renew? In that case, the Ambassador is no longer entitled to any commissions. Commissions stop immediately when the Ambassador relationship terminates. According to Ric, just so there is no accusation of signing up Ambassadors with the expectation that they will not renew thus relieving RentWizard of the obligation to pay commissions, RentWizard donates the commissions of terminated Ambassadors to charity. Now, I don't know what charity, and I have no way of verifying this is the case, so take that as you will. The main thing is you understand commissions stop when you are no longer an Ambassador in good standing. So, as long as you have three renewals each year (or three new listings or Ambassadors), your annual subscription cost is covered plus you have enough to purchase additional promotional material if you want to, so you might as well renew your Ambassador status.
Speaking of promotional material, the Ambassador Kit comes with over 500 items.
Ours will come later this week, and I see the shipping weight is 7 pounds, so it's a lot of stuff. Once we see what works best for us, we can order more of what we want out our cost.
What happens when an Ambassador takes advantage of the one-year, money-back guarantee? Well, the terminating Ambassador simply has to contact RentWizard and get a return authorization for the unused items from the initial Ambassador Kit. Once the Kit has been received, RentWizard will credit the Ambassador's account for the initial subscription fee within 14 business days. Now, if the Ambassador jumped the gun and ordered and paid for more promotional material than is provided in the Kit, there is no reimbursement for the subsequently purchased material.
Now, let's assume you sign up using our Promo Code and we get our $80 commission, but then you decide it's not for you within the first 365 days. When you get your money back, we get charged back for the $80 commission we were previously paid. Clearly, though part of the attractiveness of this opportunity is the "risk free" aspect, we would hope that most Ambassadors would go in with the full intention of sticking it out. That's another reason why it's very important to us that folks know the details before signing up. Of course, stuff happens, and the charge back deal is just part of doing business - we'll just set up a separate bank account and make sure there is always enough money in there to cover any charge backs.
By the way, commissions are paid by direct deposit into your bank account. That's the only way they do it ... period. There is no batch processing once a week or every couple of weeks or once a month - you get paid immediately when an commissionable transaction is complete.
All Ambassadors are independent contractors. No Ambassador is an employee of RentWizard. So, if you you've never run your own business or received a 1099 for income, I would suggest brushing up on recordkeeping and the tax issues related to being an entrepreneur before becoming an Ambassador.
Mark Kohler is a CPA and attorney that is working with RentWizard, and though I don't always agree with him on the best structure for the smallest of small businesses, we both agree that having a business is quite beneficial for several reasons. As an Ambassador, you get a free copy of his 46-page ebook "The 10 Best Tax Saving Secrets Everyone Should Know". It's a PDF file located in the "Training" section on your Ambassador page when you log in.
As a side note, Mark and his team have also "vetted" the Tax Deduction Estimator and are advising on various tax issues. Regardless, I think the best advice for RV owners looking to rent their RV is to seek the advice of their own professionals, and then have RentWizard supply the documentation they are relying on if there are questions or conflicts.
In the FAQs for Ambassadors, under the question "Can Ambassadors Advertise?" is the following answer:
Ambassadors promote the brand using the RentWizard marketing materials you receive in your Ambassador Kit upon sign-up. Everything you need to become a successful Ambassador is provided for you. No mass-marketing of any kind is permitted without prior written approval from RentWizard.
In the Terms & Conditions under "Ambassadors" it says:
Ambassadors are prohibited from marketing the Services of the Company using any electronic, print advertising, social media, or mass-marketing means. If the Company becomes aware of an Ambassador violating this mandate, the Company reserves the right to suspend or terminate the Ambassador immediately without notice. The Company, in its sole discretion, may suspend or terminate any Ambassador with or without cause if it believes the Ambassador’s behavior is contrary to the goodwill of the Company.
These restrictions were a big sticking point for us, but it was pretty easy to get special permission from Ric for some of the things we want to do. That's basically all they ask - let them know your plans, get written permission, and stick to it.
We've become an Ambassador (technically, it's just me), on the basis of low risk, some research, my personal conversation with Ric, and a gut feel. Certainly, we hope several of you also become Ambassadors because we can benefit financially, but we ONLY want you to sign up if you are fully informed, you think it might be a good opportunity for you in your situation, and you get yourself comfortable with it.
Again, as I mentioned before, this is the area that gets me a little more excited. We have created several relationships with companies that sell products and services that we use, and we get various referral fees and commissions, but none of them pay us when someone we referred renews or makes subsequent purchases. RentWizard does.
The RentWizard Ambassador page will provide us with history of "our" listings and rentals and referrals, and we can keep track of renewal dates and potential renewals. Maybe nobody will renew in which case this wasn't as good of an idea as I though it was, but let's assume this is a pretty good idea.
RentWizard uses a 90% renewal rate in their Ambassador income projections, and they are assuming every listing will do three $500 rentals per year. They probably know a lot more than I do, but I'm running numbers using about a 50% renewal rate and a conservative estimate that each listing will do one $500 rental per year (knowing some will do more and some will do none). That sort of sets the bottom limit of my expectations, and we can decide whether or not we're okay with that.
The good news is that those that are renewing are probably having good rental success, so income on the rentals for those renewing will likely be higher than expected.
The point is renewals increase your income year after year after year as long as you are consistent in getting new listings each year. But even if you just want to work really hard for a year or two and do nothing else, you will continue to get paid as long as your original listings keep renewing and you keep paying your Ambassador subscription fee.
That's pretty much the opportunity. If you are interested in finding out more, please review the RentWizard website. And if you still have more questions send an email to email@example.com or to us through our Contact Form. I'll try to answer any questions you have, but if I don't know, I'll get the answer.
If you want to sign up as an Ambassador or list your RV for rent, we would appreciate it if you use our Promo Code - DREAMS. Thanks!