Pay Plan? Internet

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Permalink Reply by Stan Sher on January 17, 2009 at 11:42pm

Are these internet manager selling the cars too or are they setting appointments only?

An internet manager that handles the whole transaction should have about 100 to 130 leads coming to them in my opinion because they have overflow of leads to follow up on from previous months. If you use a follow up process and have it working right, it is comfortable to work that many leads if your internet managers are as crazy as I am and are always looking to close. I mean I would link my email to my phone and respond to an email before going to bed at night or when I wake up in the morning. It is a business and you need to run it properly for it to work.

The selling ISM should have a pay plan as follows:
$300 Weekly Salary
$0-500 Gross profit: 30% - No Pack
$501 and up - 25% - No Pack
$75 minimum commission (flat)
$25 Spot Deliver Bonus
5% of Gross profit of Parts Sold on each car
Month Bonus Plan:
12 units at $25 each 13 to 15 units at $50 each 16 to 18 units at $75 each 19 - 21 units at $100 each
22 and up at $150 each

F&I Income
$10 if financed at Subvened rate
$25 if finance rate is marked up
$50 service contract
$25 Lo Jack
$50 DVD player and other aftermarket accessories

-You may put out weekly bonuses if you choose.

A lot of people are probably thinking that I am too generous here. Here is my reasoning. I have had giveaway artists work for me who made $7000 per month selling 25 cars per month on this pay plan. I pay more for the first $500 gross profit because I am giving them an incentive to push for gross and work the deal without being weak. Now at the same time for them to take a smaller deal they know that they can make $75 and if they spot deliver it they will make $100 and any other bonuses like F&I income. They also are motivated to work harder and push for selling 25 cars per month because typically there will be one to maybe three or four deals where they will have a strong gross profit as well as six others where they will hit that $500 gross profit, the remainder will all be flats which might look bad until you consider the strong unit bonus. They are motivated to hold more gross and sell more cars. If they can't make money on gross they will make it on the unit bonus. The more cars your store sells the more money the store will make, so why not keep your employees happy and pay them what they deserve. I had a pay plan that I created just like that and I had no turnover at all. In fact, we went from 25 cars per month to just over 70 with a 15% closing ratio.

A BDC type pay plan is different:

$350 salary
$10 appointment show
$25 if appointment is sold
$5 if appointment is a spot
Month Bonus:
10 Deals for the month = $100
15 Deals = $150
20 Deals and up = $250

Also, stronger than usual but keeps longevity and people working harder and smarter. I prefer the other method for various reasons that you can find in other posts. But these are my two ways of improving your bottom line and keeping motivated employees.

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