EP 10:07 How to Pick the Best Dealership to Work For: Understanding Pay Plans & Making the Right Choice!

Millionaire Car Salesman Podcast

In this episode of the Millionaire Car Salesman Podcast, LA Williams and Sean V. Bradley tackle a heavy question within the automotive industry: Dealership Pay Plans! They get into what constitutes a good verses a bad pay plan and how professionals in the industry can effectively navigate them for maximum benefit.

"I rather see someone in an environment where they have the opportunity, the respect, and are working in a setup that aligns with their financial goals." – Sean V. Bradley

Both LA and Sean emphasize the importance of understanding dealership environments rather than just focusing on the pay plan itself as the path to financial success! Williams introduces the episode with an appeal to listeners for feedback on audio improvements, setting up an engaging conversation for the audience.

"Money is a seed; you plant it somewhere and it grows. That's the whole purpose of money." – LA Williams

The discussion provides a deep dive into various components of dealership pay plans, including commissions, draws, low commission rates, packs, front-end and back-end grosses, spins, spiffs, and bonuses. Sean V. Bradley highlights the significance of comprehending these elements and how they interconnect with overall earnings potential. He stresses the importance of choosing the right dealership environment and the value of embracing a mindset geared towards high performance and success, ultimately guiding listeners towards becoming better car sales professionals.

The episode culminates with thoughts on how to work synergistically with dealerships to optimize pay plans effectively, and LA Williams underscores the role of preparation, training, and responsible financial tracking.

Key Takeaways:

✅ Focus on Training and Guarantees: Understanding draw, training pay, and guaranteed compensation is crucial before assessing commission rates and other pay plan components.

✅ Valuing Transparency: Ensure that your dealership provides clear commission sheets and wash sheets to avoid disputes and misunderstandings.

✅ Spiffs and Spins for Extra Earnings: Familiarize yourself with dealership and manufacturer incentives like spiffs and spins to enhance your income.

✅ Track Your Performance: Maintain detailed records of your sales, commissions, and other earnings to avoid financial discrepancies and strategize effectively.

✅ Work Your Pay Plan: Invest time in understanding and maximizing each aspect of your pay plan to ensure you’re leveraging every potential income stream thoroughly.

About Sean V. Bradley, CSP

Sean V. Bradley, CSP is an entrepreneur, published best-selling author, speaker and award-winning international trainer. He is a 17-time NADA/ATD convention speaker, FranklinCovey Certified Facilitator and has earned the coveted “CSP” designation in the National Speakers Association. Sean is also a member of the elite “Million Dollar Speakers Group” in the NSA and a state association speaker and trainer. He has spoken at over 500 NCM and NADA 20 Groups. Sean started Dealer Synergy over 20 years ago, but has been in the automotive industry for over 25 years. Sean and his Dealer Synergy team are a 16-time Dealers’ Choice Award Winner for being the “Best of the Best Internet Sales Trainer” and “Mobile Media Provider” in the Automotive Sales Industry.

Sean has personally trained over 100,000 Automotive Sales Professionals in 3,900 unique rooftops. However, he literally influences hundreds of thousands of professionals, in and out of the Automotive Sales industry, all over the world, through: his over 4,000 published articles, his best-selling book “Win the Game of Googleopoly”, over 9,500 videos published online, and through Radio Station soundwaves by Hosting the globally recognized Against All Odds Radio Show currently airing in Washington DC, Atlanta, Cleveland, Rochester, and Los Angeles, and the 'internet buzzing' Millionaire Car Salesman Podcast reaching over 1 million downloads! Additionally, Sean is the creator of the Millionaire Car Salesman Facebook Group, with a membership count of 28,500+ automotive professionals.

About LA Williams

LA Williams is the Vice President of Dealer Synergy. He has 15+ years of automotive sales experience and has made it his mission to help, educate and level up anyone he comes in contact with. LA once started as a frontline analyst for the organization, but quickly worked his way through the ranks to most recently landing him his current role of Vice President and an official company partner. Although LA holds an executive position with Dealer Synergy, he is completely “hands-on” with the Dealer Synergy family of programs. LA is the preeminent subject master on “Phone Sales” in the Automotive Sales Industry and has earned the nickname and title of “The Blind Phone Master”. LA has been blind for 35+ years and has focused his energy on the art of sound, tone, and inflection. With his inability to see and only hear, he can solely judge a person’s phone abilities and verbal tools based on what they say and how they say it. This makes him the perfect coach and phone sales expert on planet Earth. LA has trained thousands of Automotive Sales professionals, Internet / BDC professionals, Sales Managers, General Managers and Dealer Principals on how to dominate the phones with his “The Blind Phone Master’s Phone Sales Mastery” strategies. Furthermore, LA is an NADA Convention Speaker and a frequent 20 group speaker, including the official Internet Sales 20 Group . In addition to his training and speaking engagements, LA is the official co-host of the globally known Millionaire Car Salesman Podcast and a moderator of the Millionaire Car Salesman Facebook Group.

LA is also a very successful music producer. He has produced tracks for Dr. Dre, Lil Wayne, Katy Perry, Karina Bradley, and scores more. In addition to having worked with some of the best in the music industry, LA has worked in movies. He was even the voice for Jigsaw in 4 of the SAW movies! LA has taken his music producer, audio, and voice talent to bring a strong form of “entertrainment” to the industry and has blessed us with many motivating and fun remix tracks, applicable to the automotive sales industry.

Navigating Car Sales Pay Plans: Unlocking Hidden Revenues

Key Takeaways:

• Understanding and maximizing your pay plan involves more than just knowing the basic commissions; it requires a strategic approach to dealership incentives and manufacturer programs.

• The significance of starting with guaranteed pay structures for new salespeople can prevent attrition and financial hardship, ensuring a fairer and more supportive work environment.

• Spiffs and spins represent lucrative supplemental income opportunities that can boost earnings when appropriately targeted and leveraged.

The world of car sales is complex, with compensation plans that require more than just a basic understanding to truly maximize one’s earnings potential. In a recent discussion featuring LA Williams and Sean V. Bradley, these intricacies were explored in-depth, unveiling crucial insights into how auto sales professionals can decode their pay plans and work their strategies effectively to bolster their earnings. Key themes emerged from this discussion that shed light on not only understanding but also maneuvering through pay plans to realize better financial outcomes.

Demystifying Automotive Pay Plans

For the newcomer or even seasoned veteran in car sales, a pay plan is often shrouded in mystery. Sean V. Bradley argues that, "It's not about the pay plan… but the dealership that you're at." This sets the tone for understanding that environment and opportunity sometimes outweigh a perfect commission structure. When contemplating a position, one should probe beyond superficial numbers and consider the dealership's overall ethos and opportunity for personal growth.

Bradley emphasizes not settling for flat fee structures in favor of opportunities to earn on gross, either on the front or back-end. "If you've got the skills to pay the bills," leveraging a dealership that allows for gross-based commissions can be increasingly rewarding. However, accessing back-end gross (percentages of financial products sold) requires understanding and capitalizing on additional compensation streams like aftermarket parts and warranty products. As he explains, "Don't get distracted with the carrot… Find the best deal for you."

This journey begins with choosing the right kind of dealership—one where strategies align with incentive structures to work your pay plan comprehensively. The roadmap includes understanding potential spins and spiffs and looking beyond immediate numbers.

The Importance of Guaranteed Income for New Salespeople

Transition periods for new salespeople can be turbulent without a guaranteed pay structure. Such structures allow for "proper training, strategy, and opportunity" before plunging into a commission-only environment—a space where new hires often find themselves underwater without training pay.

Understanding the nuance between a draw and guaranteed pay can ward off future stress. At some dealerships, "you could owe the dealership money," creating the undesirable cycle of jumping from dealership to dealership. Establishing a knowledge base and advocating for fairer, initial compensation ensures not only individual success but sustainability for dealerships in reducing turnover.

Williams expounds on this notion by suggesting questions candidates should explore during interviews. Questions encompassing what the guarantee entails and policies regarding training pay ensure new hires are not disadvantaged in unfamiliar territory. Emphasizing, "I want to educate myself on how to work and understand you; help me understand so I can work my own plan, which in turn serves the dealership," provides a roadmap to this common challenge.

Leveraging Spiffs and Spins for Additional Profit

Supplementing income intelligently through spiffs and spins is a game-changing opportunity for profit maximization. Traditionally, spiffs act as quick incentives for additional tasks or goals inside a dealership, often embracing creative configurations beyond merely selling units.

Spins, a domain exclusive to franchise dealerships, offer an entirely separate avenue through manufacturer-backed commissions—encouraging variety and volume in sales pushes. Bradley notes, "I used to make thousands and thousands of dollars extra. It’s like supplemental income." Savvy salespeople learn to utilize CRM tools to drill down into customer databases and strategically target high-spin vehicles or special categories yielding these fruits.

The key is knowledge-sharing and staff empowerment, ensuring a clear understanding of potential earnings. Dealerships, in turn, fortify their workforce by building trust, offering consistent information flows, and aligning staff incentives with dealership goals—ultimately creating a culture that thrives on success.

Through an intrinsic understanding of pay plan workings, including guarantees, spiffs, spins, dealer strategies, and personal goals, sales professionals navigate toward success. In the ever-evolving automotive landscape, this knowledge not only benefits individuals but ultimately propels dealerships into prosperous, symbiotic relationships with their staff.

In a world where the typical salesperson is making a base average yet someone like Cody Carter—a figure showcased within their industry context—is realizing million-dollar earnings, comprehension of these themes promises a pathway to exceptional industry success. Understanding the vast opportunities within car sales pay plans dictates a salesperson's financial trajectory far more than mere percentages on paper might first suggest.

Resources:

Podium: Discover how Podium's innovative AI technology can unlock unparalleled efficiency and drive your dealership’s sales to new heights. Visit www.podium.com/mcs to learn more!

NCC: Credit-Driven Retailing - NCC delivers industry-best credit-driven retailing for auto dealerships, combining a powerful credit and compliance engine and fully integrated CRM/Desking platform for maximum profitability.

Complete CRM: Complete CRM is a streamlined, all-in-one system that simplifies your dealership software and processes so you can manage every aspect of your operation with ease; from tracking and following up on leads, desking deals, managing inventory, marketing to your customers, and more.

Dealer Synergy & Bradley On Demand: The automotive industry’s #1 training, tracking, testing, and certification platform and consulting & accountability firm.

The Millionaire Car Salesman Facebook Group: Join the #1 Mastermind Group in the Automotive Industry! With over 28,000 members, gain access to successful automotive mentors & managers, the best industry practices, & collaborate with automotive professionals from around the WORLD! Join The Millionaire Car Salesman Facebook Group today!

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The Millionaire Car Salesman Podcast is Proudly Sponsored By:

Podium: Elevating Dealership Excellence with Intelligent Customer Engagement Solutions. Unlock unparalleled efficiency and drive sales with Podium's innovative AI technology, featured proudly on the Millionaire Car Salesman Podcast. Visit www.podium.com/mcs to learn more!

NCC: Powered by proprietary solutions such as Intelligent Credit Engine™ and LenderSelect™, NCC transforms the car-buying experience for dealers and their customers. From compliance and lender selection to CRM and desking, to marketing and data mining—NCC integrates them all in a single, seamless platform to deliver better customer experiences, maximum efficiency and maximum profit.

Complete CRM: As an innovative leader in the industry for the last 30 years, Complete CRM is designed to give your dealership the competitive edge in a demanding marketplace. Powered by Complete Credit™ and award-winning desking, Complete CRM™ is the industry’s only credit and compliance-enabled CRM that lets dealers achieve maximum profitability on every deal. Built on modern technology, Complete CRM seamlessly integrates credit, compliance, inventory, data mining, lead generation, enterprise functionality, and customized reporting in one tool with a single login.

Dealer Synergy: The #1 Automotive Sales Training, Consulting, and Accountability Firm in the industry! With over two decades of experience in building Internet Departments and BDCs, we have developed the most effective automotive Internet Sales, BDC, and CRM solutions. Our expertise in creating phone scripts, rebuttals, CRM action plans, strategies, and templates ensures that your dealership's tools and personnel reach their full potential.

Bradley On Demand: The automotive sales industry’s top Interactive Training, Tracking, Testing, and Certification Platform. Featuring LIVE Classes and over 9,000 training modules, our platform equips your dealership with everything needed to sell more cars, more often, and more profitably!