Startup cost
$25k–$250k
TRUiC Business Ideas
How to Start a Time Share Exit Business
Decision Snapshot
Time Share Exit
Idea Score
41
Profit margin
6%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Flexible
Part 1 - How to start a Time Share Exit business - Background
Timeshares promise vacationers unforgettable getaways, but those experiences come with substantial recurring payments in the form of mortgages and annual maintenance fees. Many people who purchase timeshares ultimately have buyers remorse and want out, only to find that getting rid of a timeshare isn’t as easy as they hoped.
Timeshare owners who have passed the recession period (during which the agreement can be canceled) have few ways to dispose of their timeshare. Resorts often won’t agree to cancel timeshares and, since timeshares depreciate faster than cars, selling doesn’t bring in much money. In many cases, owners aren’t even able to give away their timeshares.
Timeshare exit businesses help timeshare owners get out of the agreements they’ve signed. With 1.15 million or more owners wanting out of timeshare agreements, there is strong demand for this type of business.
Our guide is in 3 parts:
- Part 1 - How to start a Time Share Exit business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a time share exit business?
Aside from the legal training required, the costs associated with owning a timeshare exit business are minimal. Business owners need a printer, copier, computer, website, phone, and fax machine. Any legal fees can be paid using funds that are collected up front, and there’s no need for an office since most work is done remotely.
What are the ongoing expenses for a time share exit business?
The ongoing expenses for a timeshare exit business are manageable. A business must pay for an office if it has one. Otherwise, the main expenses are the cost of a phone line and internet access, and employees’ salaries.
Who is the target market?
The target market for a timeshare exit business is timeshare owners. Timeshare owners tend to have at least some discretionary income, but that’s not always the case. They are usually people who like to go on vacations.
How does a time share exit business make money?
A timeshare exit business makes money by charging customers to help them get out of timeshares. Because the process can take months or years, many companies charge their fee up front.
How much can you charge customers?
The costs to get out of a timeshare vary depending on the complexities of the agreement and applicable laws, and a lack of transparency in the industry makes it difficult to know exactly what competitors are charging customers.
Nonetheless, there are some reports that claim Timeshare Exit Team charges an average fee of $4,000. Others place the cost of getting out of a timeshare at $5,000 and up.
How much profit can a time share exit business make?
A timeshare exit business can bring in a substantial revenue. At the time of writing, the Finn Law Group has 16 pending cases. From those cases alone, the group likely saw $80,000 or more in payments (based on the $5,000-plus price noted above).
How can you make your business more profitable?
Most timeshare exit businesses don’t branch out beyond timeshare law. Instead, they may expand their geographic reach when they want to grow.
Day-to-Day and Growth
What happens during a typical day at a time share exit business?
Running a timeshare exit business is a legal proposition that has three primary aspects:
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Explaining the process to customers, who may be upset, confused, and frustrated
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Researching applicable laws and preparing legal paperwork
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Communicating with resorts, which may involve phone calls, letters, and court appearances
What are some skills and experiences that will help you build a successful time share exit business?
In order to help people get out of legally binding timeshare agreements, business owners must be qualified to practice law. In most states, this means completing law school, passing the bar examination, and becoming a lawyer.
Business owners can theoretically start a timeshare exit business and hire attorneys for the legal work, but at this point the business owners add little value to the business. There’s a risk that the attorneys would start their own, competing company.
After passing the bar exam, business owners may need to study laws specific to timeshares in different states and countries. There are some books on these subjects, such as The Condominium Concept and How to Cancel a Mexico Timeshare. Business owners will gain more knowledge, however, by spending a short time working for a timeshare exit business before striking out on their own.
What is the growth potential for a time share exit business?
Most of a timeshare exit business’ work is done remotely, so it’s easy to grow. Some businesses may remain smaller law firms, but many expand quickly once they specialize in timeshares. Primo Management Group is a one-attorney practice specializing in this work. Finn Law Group and Timeshare Exit Team are examples of larger companies handling timeshare exits.
What are some insider tips for jump starting a time share exit business?
The timeshare exit industry is rife with complaints from consumers that claim businesses are dishonest. While there are plenty of honest businesses in the industry, there are also many that don’t have good reputations. Several are even being sued by timeshare sellers.
For long-term success, timeshare exit businesses should carefully build up a good reputation. Businesses can develop positive reputations by being accredited with the Better Business Bureau, being transparent in what they charge and do, and offering timely communications with customers.
How and when to build a team
Because timeshare exit laws are detailed and vary by location, business owners will want to hire some legal experts as soon as a business secures its first customer. Paralegals and other attorneys can help a business handle and win more cases.
Many business owners also either hire an administrative assistant or outsource their administrative work so that they can focus on the legal work that actually generates revenue.
Part 2 - Is a Time Share Exit business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Time Share Exit business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Time Share Exit Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Time Share Exit business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.