Compensation Plan

Phillip  Meek

Looking for some feedback from seasoned F&I professionals on Compensation plans.


I work at a Nissan Franchise that sells 1300-1450 units per year;  I am personally taking 90-95% of the Finance turns with 65% lease penetration.  We do not sell used in this building.  In your opinion a fair compensation plan?  What % of Back end profit is fair?  What are some compensation plans to avoid?  Any feedback is appreciated.

mark rask

we do 10 pct of backend after they meet a certain dollar amount

mark rask

The above post refers to our salespeople pay plan

Phillip  Meek

Mark, Do you have any insight/input on what is typicall compensation in your Market?  I ask because my situation is unique in that I am not getting the opprotunity to take used turns and am living off of new car opprotunities only; 65-70% being lease transactions.



Dennis Wagner


New Car only Compensation Plan should be the same as any other compensation plan. An opportunity is an opportunity. Depending on your market most plans are in the 15-25% of backend profit after chargebacks range. It should be Tiered based on CSI scores and the amout of products sold per transaction.

Mickey McGarvie


Regardless of volume and penetration the opportunity to make money begins and ends with the individual. A 100% comission based compensation plan is the way to go and like Dennis said your market comparables should give you a good idea on what you can expect. I believe in paying no more than 20% and I have buckets that start at 5% and max out at 20%. If I was to hire a new finance manager the the max comossion would be 15%. 

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