• Share
  • Email
  • Embed
  • Like
  • Private Content
Internet payplansb
 

Internet payplansb

on

  • 576 views

 

Statistics

Views

Total Views
576
Views on SlideShare
576
Embed Views
0

Actions

Likes
0
Downloads
8
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft Word

Usage Rights

CC Attribution License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Internet payplansb Internet payplansb Document Transcript

    • Straight SalaryFor a dealer who is new to Internet sales, a straight salary approach might be the best avenue.Without prior Internet sales history, it is difficult, if not impossible, to establish incentive targets. As aninvestment in the future, a dealer could pay the Internet rep a salary of $600 to $700 a weeksupplement by some spot bonuses. Caution; do not get locked into a straight salary for the long term.A suggestion is to agree with the employee to review the plan after 12 months.Salary plus bonusA dealer with some Internet sales history, like you, can set up a more traditional sales plan. SinceInternet sales tend to be generated with “ Internet Price” basis with little or no negotiation, a percentageof gross commission will not make sense. Here we favor a Saturn like approach of a small base salaryand a sliding scale based on the number of sales each month.I.e. base salary: $300 to $350 per weekMonthly Deliveries Bonus Monthly Deliveries Bonus0-7 $0 8-9 $80010-11 $1500 12-13 $200014-15 $2300 16-17 $2800In this example, then a consistent 12 to 13 car per month producer would earn $16000 to $17500 insalary and another $2000 per month incentives for total annual income of just over $40000.Please note: These numbers are for discussion purposes only.Salary plus matrix bonusFor dealers who are not comfortable with a straight salary but, who do not have enough data todevelop a workable incentive, a more subjective approach can be used. A base salary equal to 60percent of the target should be paid. Three or four achievable goals should also be agreed to.Base salary: $400 to $500 per weekIncentives: Goal #1. Achieve 100% response time within two hours of inquiry performance. Goal #2. Average 10 deliveries per month during the year. Goal #3. Create an interactive web site that is in accordance with approved dealership salesstrategies. Each goal carries a bonus up to $5000. Therefore, full achievement of the goals wouldachieve a $15000 bonus for the year (some dealers are reviewing the bonuses at alternate times in theyear so that there is emphasizes on a quarterly basis).Pay plans tend to be all over the board but we recommend the dealer stick to the basics. Create a payplan that is commensurate with the value of the job, and establish achievable, measurable goals. Pay Page 1
    • plans that are simple and easy to understand, that speak to results for the effort will be solidly on theright track. Page 2