What are the most motivating pay-plans?

H Gregory Gershman
Interviewing lots of applicants the number one question we get is about compensation. What are you finding is the most motivating in the dealership? Are most of you on straight commission, salary and commission, or flat bonuses and salary? Love some opinions on pay-plans that get sales consultants to perform, and be motivated to be better employees.
Lauren Moses
I do sales, internet, and F&I. Needless to say I get paid hourly, overtime, and get a little extra for each vehicle that I sell.
H Gregory Gershman
Thanks Lauren! One additional question, is most of your income derived from fixed pay (hourly, overtime), or bonus? Not looking for anything specific, more generally.
Lauren Moses
definitely hourly. When I say a little extra it's like $100 per vehicle. It's not much but my overtime does make up for it and most of the time it's more than what I would be making if I were straight commission. I just do too much other stuff besides selling to be commission pay only. Our salesmen are all commission though and they get their draw set by experience, and other factors. But, they make no less than $200 on every vehicle, unless they split it with someone else.
Jose Lazo
I find the most motivating payplan for a bdc environment is a base hourly + incentives for kept appts + incentives for sold appts. The incentives are tied to various tasks that should lead to prospects walking through the showroom doors such as outbound calls, close rates, email response rates, lead response times, positive reviews, etc.
H Gregory Gershman
Jose, it sounds like a mix of hourly steady pay, and then motivational bonus for energy related tasks. Pretty similar to what Lauren said. Is the rest of the sales floor paid in the same way? Do they have some type of base, and then bonus over that?

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