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Jared Hamilton
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Jared Hamilton

Jared Hamilton Founder - CEO

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Split deals can be a headache for Management and a downer for the department.  They affect more than the two or three sales people involved, because the team tends to pick sides with their friends and the “ill-will” spreads like a contagious cancer around the showroom floor.

The saying, ‘the best offence starts off with a solid defense” definitely applies here.  Set ground-rules and insure everyone, including management, plays by them; your team will be much better off.

Your CRM tool is one of, if not THE most important piece of technology since it holds the keys to your success, your customers.  Regarding split deals, your CRM tool can take on added value as the end all answer to many of your stores in house disputes.
I feel strongly that “process” is key to one’s success.  Mediocre sales people perform above average if they execute a process well and good sales people will be unstoppable.  As a manager define and ALWAYS reward your process.  Build your sales process into your CRM system and use it in moderating questions over who a customer belongs to.

For example, if your CRM recodes inbound and outbound calls these can be used to decide split deal disputes.  If your process is follow up with a customer weekly then protect the sales person if the CRM system shows they followed the customer weekly as directed.  If they missed their call, or didn’t record it in the system, they loose protection.  If a sales person claims he worked with a guest a few days prior, and has their name and number on a business card to prove it but they are not logged into the system… sorry no protection.  Customer activities must be properly recorded in the CRM to warrant protection. You must always go back to your stores process, and make sure your CRM system is aligned with what you want to happen and you will kill two birds with one stone.

1.Disputes over split deals will happen less and less, keeping your sales team happy and focused on the task at hand, selling    cars.

2.By using the CRM system as the deciding factor in protecting a sales person from a split deal, you will build a culture that your process matters.  This alone will increase your business by getting all the team on the same page.

Disputes over split deals are a waste of time.  Take a few minutes to outline your process in your CRM and define your rules for split deals.  The benefits will pay off 100 fold over time as you build a team that executes your vision.
 

Mike Whitty
One of the complaints I consistently get from salespeople is in the area of splitting deals. I think that this has become such a problem in many dealerships because there are no clear cut policies for what constitutes a split deal, and how it should be handled when the issue arises. My rule behind splitting deals is easy - if the other salesperson does 50% of the work, he/she deserves 50% of the commission. But here's what has happened. Some salespeople think that just because they help you deliver a vehicle, or help your customer on an inventory walk, even though they're just sitting around do nothing, deserves a split deal. I'd hate to think that the only time they'd help another salesperson would be for compensation. But apparently that's where we've come. One way to handle this problem is by working the Buddy System. I would pick another salesperson within the dealership to be my buddy. This person would closely exemplify the type of person I would want to deal with my customers and prospects. This person would be the only one who could handle my prospects and customers. If I'm not in the dealership, and one of my customers comes into to buy another vehicle, he would automatically be turned over to my buddy. There would be no split deals because it would all even out in the end. If my buddy wasn't available to help, and another salesperson needed to step in, then the 50% of the work rule would apply. Any mediation on the rule would always be handled by the Sales Manager, not between the salespeople. Here are some situations that could happen whereby a salesperson would ask for a split deal. See how you would handle them: Example 1 A salesperson is coming back from lunch and sees a prospect on the lot. He approaches the customer and says, "Hi, can I help you?" The customer says, "No, I'm just on my lunch hour and thought I'd look at some cars." The salesperson says, "Well, here's my business card, if you ever need anything, feel free to call me," and walks away. A week later, the customer comes into the dealership, never asks for the salesperson, probably threw his business card away, and gets sold by another salesperson. When the original salesperson sees his name on the sales board, he immediately says, "Hey, that was my customer, you stole my customer. I want a split deal?" Comment on Example 1 Is this a split deal? Is it even the first salesperson's customer. He didn't do any work other than handing out a business card. He didn't even get at least a name and telephone number for follow-up purposes. And he definitely didn't do 50% of the work. As far as I'm concerned, this wouldn't even be a consideration for a split commission. Example 2 A salesperson is negotiating a deal with a customer, when her 5:00pm delivery comes in an hour early. She needs the vehicle to be brought up front so the customer can at least take a look at the vehicle while she finishes up with her current customer. So she asks another salesperson to help bring the vehicle up front and show the customer his new car. After the delivery is completed, the helping salesperson asks for a split deal. Comment on Example 2 Is this a split deal? It took the other salesperson 20 minutes to walk back, bring up the vehicle, and stand there while the customer looked it over. The salesperson wasn't doing anything at the time, and should realize that some day he may need her help in doing the same. As far as I'm concerned, this wouldn't be a consideration for a split deal. What I would consider is taking this person to lunch. Example 3 You’re having a big sale. There are a lot of prospects in the showroom and around the lot. One of the salespeople keeps going up to customers and says, "Hi, I'm Bob, what's yours? Bill? Have you made up your mind yet on purchasing a vehicle? No! All right, here's my business card. When you're ready let me know. He does this to five additional prospects until he finds one who's ready. One of the prospects he gives a business card decides to deal with another salesperson. When he sees Bill with another salesperson, he immediately goes up to him and says, "That's my customer. I'm going to want a split deal." Comment on Example 3 I don't need to comment on this one. It's the same as Example 1. But believe it or not, in some dealerships, Bob would get away with this. Example 4 I greet the customer at the door, do a proper job of qualifying, an excellent presentation, an enthusiastic demo ride, and go into negotiations. I wasn't able to close the deal right now because the prospect wants to think about it, and walks. About a week later, the prospect comes back into the dealership unannounced and wants to purchase. I don't happen to be there that day, so another salesperson writes it up, takes him into Finance, and they spot-deliver it that day. Does this salesperson deserve a slit deal? Comment on Example 4 Absolutely! This salesperson actually did a lot of work on this deal. So he deserves 50% of the commission. These are just four examples of splitting deals. I'm sure there are many more. If you happen to have more examples, or have a different opinion on any of these, please feel free to email me your examples and comments. I hope these will at least get you thinking about developing a policy in writing for your salespeople, and discuss it in your next sales meeting. Once you develop your policy, strictly adhere to it, and personally handle any disputes between salespeople. Don't leave it to the salespeople to handle it themselves. It's the easiest way to destroy a team you worked hard to create.
Rocky Browne
A customer walks on to the lot a husband and wife the salesman approaches them gives him his name and gets the husbands first name.The customer walks off and ingores the salesman the customer won't say anything to the salesman the salesman comes back to the salesfloor and grabs another salesman and says I greeted these people and won't even talk to me will you see if you can do something the other salesman goes out and approaches the people and starts in conversation finds a car demontrates negotiates and sales and delivers the car.The other salesman at time of delivery approaches salesman 2 and says is there anything I can do you know this is a split deal.If a salesman leaves the customer is this a split deal?

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