Pay Plan for Internet Sales/Internet Marketing Manager??

R Lamb
Wanting to approach my boss with a pay plan proposal as my role has gradually grown since coming to this dealership a few years ago. Currently I am responsible for: - BDC of 4 people (BDC set appointments and transfers them to sales people once they arrive - in other words, not a cradle to grave set up) - Budget for lead providers, direct mail campaigns, SEM and SEO, etc...pretty much all marketing for the Sales Dept other than TV budget which is set by owner himself. - SEO and SEM performance - Overseeing photos of New and Used vehicles on site - I don't take the photos but I'm in charge of making sure they are done in a timely manner and are good quality photos. I am currently compensated on BDC performance alone. I've done quite a bit of digging into all of our site metrics (Visits, Visitors, Inventory Searches, VDP, Time on Site, etc.) to see how they relate to sales the coorelation is strong between Inventory Searches, VDPs and Sales, but I'm having trouble figuring how to assign a dollar figure to these metrics. Does anyone have any suggestions on how a true Internet Sales/Marketing Manager should be compensated? Or evaluated? I'd rather not share gross profit numbers in this thread but I do have access to all that info and would be willing to exchange that via PM if that would help
R Lamb
Thanks for the feedback. I've been on the sales floor, been a BDC Agent, BDC Manager, Sales Manager and now Internet Sales Manager for lack of a better title - I've been in the car business for 7 years, I understand how it works. Also, I've never heard of anyone being paid on the NET profit other than the owner of the store. I am fine with getting paid on the Net for what it's worth. Anyway, appreciate the feedback...anyone else? We spend al this time thinking about Digital, anyone have any ideas on how to compensate for that position and all it entails (in my opinion, one of the most pivotal roles in the dealership)?
Mike Anderson
In my minds eye you are there for one reason only and that is support the sale of vehicles and finance products. Therefore i would suggest you be compensated on the productivity of your staff regarding both of these production areas. Far to often we get into the weeds with pay plans that try to drive specific behaviors when we really need to pay on the objective. Sell and deliver vehicles. All the other items like response times, conversation rates, appointments set and show should be managed by a score card monthly for accountability. Hope this helps.
Chris Koenig
Robert......I was in a similar situation at one time. I began here as a BDC agent with no prior experience in the automotive industry. I eventually got promoted to BDC manager and my role continues to grow all the time. After much deliberation, the plan my GM came up with was: Base salary, plus 1% of sales net, plus .05% of sales gross. The base salary comprises a little less than 50% of my total compensation. Since you have access to gross/net figures, you could work that in reverse to come up with percentages that work for you. There are pros and cons to it, but what it definitely does is helps make sure that you are getting compensated for any and all contributions you make to selling vehicles, and therefore keeps your eye on that ball.
Parker Lukjanovs
Robert, Do you desk any deals yourself? If yes, then getting paid a certain % of gross that stair-steps up based on units sold is good. If no, then you should be based on Sold Units generated from your BDC only. Meaning a certain $ amount per vehicle sold from your department and setup bonuses along the way once you hit certain unit goals. On top of that of course a salary is in place. If you're not making $40-60k salary then something is wrong in my eyes.
Chris Koenig
Parker, getting paid on "Sold BDC Units" only doesn't take into consideration all the work he is putting into other aspects of marketing and advertising, such as SEO/SEM management, direct mail campaigns, website management, etc. Paying % on gross/net acknowledges that the efforts in those areas contributes to sales, despite not necessarily contributing to BDC appointments.

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