Should you revamp your sales compensation model?

Description

Abstract: The Internet has fundamentally changed the role of the automobile salesperson. When customers walking in the door already know which vehicle they want to buy and how much they will pay for it, this tends to minimize the need for a traditional salesperson. Given this, many dealerships are re-examining the proper role of their salespeople, as well as their sales compensation model. This article discusses a sales model that combines base salary with performance-based incentive pay. It also offers a few guidelines for constructing a sales compensation plan, while a sidebar looks at what automobile dealership salespeople across the United States earn.