Because the team is selling appointments, the compensation plan must be clear. Half of the compensation should be based off of a percentage of the GROSS of the department. There is no standard percentage. This is a number that you have to work out based on comfort. You should begin with the end in mind and ask yourself how many total UNITS SOLD are you expecting from the Internet department. Based on that number, you can determine what percentage you feel comfortable with. For example, if you were looking to sell 100 UNITS, at about $2000 per copy, the total gross for the month would be $200,000. If a manager can do that for you, how much is that worth to you? At 4%, that would be $8,000. At 3% you are looking at $6,000, and at 2% you are looking at $4,000. Keep in mind that you can’t lose something you never had. If the manager does NOT meet the goal mark, you are only paying him or her on what is actually sold. If your goal is more like 50 Total UNITS, the percentages would look like...4% at $4,000, 3% at $3,000 and 2% at $2,000. Again, this accounts for only HALF of the manager’s compensation.
The other half is strictly performance based, specifically based off of the appointments that SHOW. Remember, the manager has no control over how many units are sold once the appointments show. Units sold are earned through the efforts of the showroom sales team. But what the manager does have direct control over are the appointments that SHOW. This is why we recommend their pay structure to be based off of this variable. It also ensures that the Internet Director will do whatever is necessary to get bodies into the dealership including our appointment confirmation process.
Finally, the manager should receive a GUARANTEE for the first 60 to 90 days. This way, he or she can concentrate on really getting the department rocking and rolling the right way without having to worry about earning enough money to eat at first because the gross of the department isn’t where it should be at the beginning stage. If you want to sell more cars, more often, and more profitably, Dealer Synergy is the best consulting choice for you and your department!