Need a critique of this BDC payplan

Robert Bader
So I'll be implementing a BDC in the next few weeks and am trying to finalize a pay plan that focuses on the desired results I'm wanting out of the team. Monthly compensation: $3,200/month 50%- base 50%-variable *If KPIs aren't met max variable payout is 75% Key Performance Indicators (variable): • 50% appointment show rate • 60% appointment set rate *Other KPI's will be added or removed based off what we are wanting to focus on for the month. Trying to start with easily attainable objectives and increasing expectations as the BDC improves. BDC Objective (variable): *Percentage sold of dealerships monthly sales goal. Example: 10% of dealership objective of 100 total units. So 10 units need to come out of the BDC. Process Performance Bonus (variable): • Showroom visits to sales closed: $250 • Highest appointment show rate: $250 • Phone ninjas score of 5.0: $75 *Others can be added or removed based on what we are wanting to focus on for the month. Example: Month 1 with dealer objective at 100 units Base: $1600 Objective: 10 units/10% Actual performance: 15 units/15% MPS met: yes Variable: $1,600x1x1.5(15/10) Total Comp: $4000 *Comp doesn't include any performance bonus achieved Example 2: Month 2 with dealer objective at 110 units Base: $1600 Objective:17 units/~15% Actual performance:12 units/~11% MPS met: no Variable: $1600x.75x.70(12/15) Total Comp: $2440 *Comp doesn't include any performance bonus achieved. My structure comes from Traver Technologies as I liked what they had set up. To me the pay plan works well and allows me the maneuverability to alter the objectives and spiffs according to what our goals are for the month. Your opinions and critiques would be much appreciated. Thanks.
Dennis Wagner
Are you offering this pay plan to the BDC manager or BDC agents?
Robert Bader
Bdc agents.
Dennis Wagner
I would say that is more than fair for BDC agents. That is actually a little high compared to most BDC pay plans I have implemented. You can get good BDC agents for a lot less.
Robert Bader
I'm surprised to here that. I thought a quality BDR required 40-45k to keep around. Are you not seeing high turnover?
Dennis Wagner
Robert - There is some turnover, but no more than average. I should have made it more clear how most BDR's pay plans I implement are structured. I offer a flat hourly rate of $12 per hour, plus $10 per appointment set, $25 for an appointment that shows and $50 for a sold appointment. They must make 125 calls minimum daily. A $250 bonus for the most appointments sold each month to make it competitive. Then you add in $100 bonus for any previous customer that they get to come in off the dealerships owner equity lists. The good ones will make a lot more than 40-45k, but it's more incentive based. The more simple you can keep their pay plan the better in my opinion.

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