This document discusses strategies for an inside sales team to increase revenue and decrease cancellations in the West Region. It provides statistics showing revenue increases from 2005 to 2006 but cancellation decreases. It proposes allowing inside sales to continue generating new business while implementing short or long term payouts to ensure accounts are serviced until outside districts can absorb the new business. It also discusses competitive threats and a potential team building event.

2. Before you can succeed in the future, you must learn from your past.

3. Total Q4 Contribution 2005 $23,945 2006 $28,554 11% Increase in DAR Contribution from 2005 Snapshot - 2006 vs. 2005

4. Total Q4 Cancellations 2005 $29,200 2006 $27,269 9% Decrease in Cancellations 2006 vs 2005 Snapshot - 2006 vs. 2005

5. January New Business 2006 $7,100 2007 $9,000 12% Increase in DAR Contribution from 2006 January 2007 vs. 2006

6. The Vision: Work seamlessly with Outside Sales to grow the West Region’s Revenue and increase overall dealer satisfaction. Ensure Churn is kept to a minimum and new business numbers continue to grow in accordance with the region’s 44% growth goal.

7. Current Situation Current Situation: Inside Sales continues to foster new business from independent dealers in California, Nevada, Arizona and New Mexico. $104,000 in assigned IAC accounts still remain in District 9’s book of business. In accordance with the original action plan, (implemented in Oct 2006) these accounts have gone un-serviced and are at risk for downgrade (or) cancellation.

8. Proposed Solution: Continue to encourage Inside Sales to gather new business from independent dealers Allow accounts to remain in their name and implement a monthly 4 % SAR payout to ensure that the dealer’s are serviced, until such time as the outside districts can comfortably absorb the new business inside sales generates. (This solution can be short or long term depending on the regions goals to increase personnel). Proposed Solution

9. CARS.com aggressively targets smaller independent dealers by offering a tier level pricing structure based on need and Inventory Size. ATC has responded to this problem with a limited district rollout of the NEW Featured Essentials Program. Limiting the number of contract enhancements and number of vehicles a dealer is able to list. This program will no doubt be valuable ammunition in our on going battle for business in 2007 AutoTrader & AutoExtra Magazine continue to flaunt their association with ATC – claiming that the same subscription program (offered exclusively by AC’s & IAC’s) is rolled into a monthly contract with the magazine. This creates confusion when an ATC representative presents any advertising solution to a Trader customer, as most current Trader customers are under the impression that they already receive our service for FREE! Competitive Landscape

11. Team Building Event(s) The Magic Castle in Hollywood