DealerRefresh receives a lot of questions from folks who are just looking for a quick answer. One that comes up quite often is "How much should the Internet _______ make?" and how do you pay that position.
I think it is time to throw this one out to the community. So go ahead ladies and gentlemen, write your own paychecks
I'll get things started...
How much should the eCommerce Director make?
I think the Internet Director/eCommerce Director is rapidly becoming the most critical role in a dealership (especially a group). I see things happen everyday that show where something on the Internet deeply and quickly affected volume or profit. So, the first question a dealership has to ask is how important is this position? Is it more important than a GM position? Is it on par with a Vice President? Is it just about the same as a sales manager? If you can find a comparison position on the totem pole, then you can figure out what monetary amount to pay the Intenret Director.
By the way, I hope you give the Internet Manager more power than a sales manager.
How do you pay him/her?
This is one we (Checkered Flag) have been struggling with forever. A traditional business paying method is to pay for a one-to-one conversion. That's how a traditional sales staff is paid (Salesperson, Salesmanager, GM). Then you throw this fourth wheel into the mix who is claiming customers who were buying cars from you before the Internet existed and you have to ask the silly question: "Would they have bought a car from us anyway?" For a traditional car-guy this is really tough to pay on.
So, do you pay on what was sourced through the Internet? That's a pain in the ass that requires a ton of extra work to keep track of. Between salespeople never entering the right ad source into the CRM, or skating the Internet department (mainly because they're lazy), the Intenret department is constantly searching for their own deals.
Do you pay on site statistics? Conversion rates on your website, SEM activity, increasing the views for the service department? What other duties does the Internet Director have?
You could adopt the concept that the Internet is a full part of your business, and as such the Internet Director should be paid on the total bottom line. Just throw a percentage point on it and see where the numbers land.