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Third Party Lead Sources Compliment Automotive SEO Strategies

As an outspoken advocate for digital marketing education for car dealers, I often find myself captivated by the continuously changing landscape the search marketing offers.  As fast as I can learn, test, and communicate a current idea, there always seems to be something new on the horizon.

I can’t imagine how car dealers feel when they attend bi-annual automotive conferences, like Digital Dealer and DrivingSales Executive Summit, where the emerging market trends and technology tend to spin their heads.

As much as I love new concepts, strategies and opportunities, there will always be some basics that help dealers succeed online.   So before the fall conference season fills our heads with new ideas to test, let’s get back to a few basics.

SEO-origins-third-parties.gifThird Party Lead Collectors Are Automotive SEO Pioneers

Readers often associate me with Automotive SEO and my passionate appeal for dealers to understand the power of content publishing, microsites, and link building.   I have been blessed to serve the industry and have been rewarded by encouragement from dealers across the country.

Along the way, some have concluded from my teaching style that I am not an advocate for third party lead collectors and third party automotive advertising websites.   In fact, that characterization could not be farther from the truth.

All digital marketing products should be evaluated by dealers on their own merits based on the estimated Return on Investment (ROI) to the dealership.  Dealers that I work with have done their best to track and measure the benefits of third party leads and advertising and have found them to work efficiently.

I am often asked to lend assistance in determining which lead source and platforms dealers should invest in and what I have found is that dealers results in each market can vary so one vendor may not be a universal solution nationwide.

The best third party lead collection models are the ultimate testimony to the power of Automotive Search Engine Optimization (SEO).   I tip my hat to the websites that appear on Google Page One for broad popular searches like “used cars,” “cars for sale,” “sell my car,” and “cheap used cars.”   I’m building sites to join the superstar ranks but those that had the foresight years ago to build sites are being rewarded today.

Many of the most powerful lead collection websites today are successful because they built their business on the basic foundations of SEO: good content, strong data structures, and strong inbound linking strategies.  Many of these websites have great designs that appeal to consumers and in the end provide value to dealers.

Other less powerful but visible sites cast a negative shadow on the industry as they are poorly designed, filled with Google Adsense ads, and step over the line of using a car dealers name to promote their competitors cars.

The good and bad websites exist because they all are making model based on the fact the most car dealers do not engage in digital marketing strategies that are based on SEO.

With that said, if car dealers find that purchasing third party leads have a strong ROI, why would they stop that channel when they add local Automotive SEO strategies to their budgets?  The answer is they don’t.  I don’t encourage them to do so because any strategy that is add to their bottom line is a good one.

The Role of Third Party Lead Collectors

I advocate that car dealers should establish a budget for content publishing to allow them to show on Page One for the local search phrases that are attainable with a minimal investment. I have encouraged larger dealer groups to hire and train internal fulltime content writers. The additional content on their websites will improve their local search visibility and can also be leveraged on their blogs, press releases, and social media sites.



Content as a service will be in demand in 2011. I’ll be there to offer it to dealers to help them achieve greater local search visibility.

In essence, my philosophy is to empower dealers to create locally owned digital marketing assets that can appear on Page One for localized search phrases.  In general, the industry has not trained, encouraged, or mentored content writing as a skill set needed at the dealership level.  That must change.

When I encourage dealers to push third party lead collectors off Google Page One for a search on their dealership name or for local searches that they can control, it should not be assumed that third parties are not important to a dealer’s larger success. In fact, third party sources will always be a pathway for dealers to attain leads for broad phrases that dealers will never get directly.

Third Party lead collection websites and advertising platforms function in similar ways as Google Adwords.  Dealers use Adwords to appear at the top of search results for broad phrases that they cannot expect to achieve organically.    A Chevrolet dealer in Chicago may choose to purchase the phrase “2010 Chevrolet Silverado” since he does not expect his local website to be on Page One for that national search phrase.

In a similar way, third party lead generation and advertising websites like www.usedcars.com, www.automotive.com, www.edmunds.com, and www.mototrend.com appear on Google Page One for broad searches without the need for Adwords because of their outstanding Automotive SEO scorecard and brand awareness.

The best third party automotive websites are candidates for the Automotive SEO Hall of Fame.  That gives me an idea for an award J.

Jumping To A Wrong Conclusion

With that perspective, you can see how local Automotive SEO strategies and third party lead collectors can work together to benefit a dealership overall success.  Localized SEO strategies will attract a cross-section of ready to buy consumers and lead collectors will capture an additional segment that tend to use broad search phrases.

Encouraging dealers to test and evaluate the best sources for third party leads may seem to some readers as a change in position for me.  Reflecting on the potential causes of that ill formed conclusion, it would seem that my passionate appeal for car dealers to wake up and be more active in their digital marketing success has been translated as an attack on third parties.   This is not true.

I have encouraged dealers to be content publishers to achieve a degree of independence from third parties.  I want dealers to cultivate content to achieve visibility for popular local search phrases.   Today most car dealers are doing little in terms on content publishing, yet they complain about diminishing direct consumer leads.

Dealers are getting pushed off of Google Page One for common searches on their brand name, city and the cars that they sell.  This is not because third-party lead collectors or advertising platforms are mean-spirited; they are just taking advantage of a business opportunity that was open because of dealer inaction to participate in the search-marketing world.

Without direct knowledge, dealers have left their OEM brand and local PMA wide open for third parties to redirect and collect leads. I have been educating dealers on the website platforms that will best support local search dominance and the tools and services they need to capture broadly searching consumers.  The empowering of dealers in their digital marketing efforts is not implying they can do it alone.

The Best Third Party Leads Are Organic PPC

Because of the size, reputation and traffic generated by popular automotive content-rich websites, like Edmunds.com, third party websites appear for broad searches using year, make and model keywords.  Without the use of a targeted microsite, appearing on Page One for a search on “2010 Acura TL” would not be feasible for a dealer because it lacks a localized keyword to narrow down the search query.

However, third party websites do appear on Page One for broad searches and provide consumers with valuable resources which often result in a lead capture.   These leads might be captured by a dealer’s Pay Per Click (PPC) campaign or they may not.  My point is why not utilize and test both sources, and if both have a strong ROI, invest in both.

The Petri Dish of Leads

What has frustrated car dealers in the past is how these leads are packaged and sold.  What dealers perceive as higher quality lead sources  (i.e. Edmunds.com) are comingled with what dealers consider lower quality sources (i.e. Yakez.com).  There are a handful of large lead consolidation companies that purchase leads from the Automotive SEO giants and resell them to dealers.

I can’t speak about all lead consolidators, but at this past NADA Convention I sat on a panel sponsored by Dealix.  I was asked to represent leads sources generated by direct lead forms on a dealers website.

As part of the panel, which included David Kain, I learned about the Dealix Quality Pledge.  This program gives dealers the power to get credit for any leads that are confirmed to be of poor quality (bad phone number, wrong contact name, or unreachable contact).

This type of program represents a positive change in the third party lead provider industry.  Companies like Dealix want to align their interests with dealers and properly channel consumer leads to the dealer who can make the most out of them.

In this type of model, I find it hard to come up with a reason not to test and invest in third party leads. I have come to this conclusion because the leads are not likely captured by local SEO and can be accretive to sales with a money back guarantee.   Let me state it clearly: I like that model!

Finding The Balance For Automotive Digital Marketing

Successful dealers across the country are fine-tuning their digital advertising investments and attempting to measure ROI.  Dealers who are forward thinking are already planning their digital marketing budgets for 2011.

In the future with an ADF 2.0 specification and better CRM integration, dealers will get closer to measuring that ROI.  This will clear the air on what digital marketing strategies and partners deliver the best return on investment.

Until then, I am convinced that dealers need to test and invest in:

  • Google Adwords
  • Automotive SEO Strategies
  • Third Party Lead Providers
  • Third Party Inventory Advertising Platforms

I will continue to be an advocate for dealers, encouraging them to pick the low hanging fruit that can be garnered with a reasonable effort using powerful local SEO strategies.

However, dealers can not feasibility create their on national and regional automotive advertising network.  This is where dealers need assistance and the choices they have are triple what they had just two years ago.

Automotive SEO investments being made today establish a bright future for cars dealers.  In conjunction with this strategy, dealers must rely on third party sources that have the monopoly on Paid Search and Organic search real estate.  That’s the reality we live in, and I’m Paschionate about that.

If you are interested in learning more about controlling your local search results, sign-up for the DealerRefresh.com webinar that will focus on this very topic.

OneCommand is Ranked One of America’s Fastest Growing Companies for the Fourth Consecutive Year

Cincinnati, OH, September 7, 2010 -- OneCommand (www.onecommand.com), the nation’s leader in preference-based, automated, multi-channel marketing, today announced that, for the fourth consecutive year, the company has been named to Inc. Magazine’s list of America’s fastest growing companies – the Inc. 5000. According to Inc. Magazine, the list represents the most comprehensive look at the most important segment of the economy—America’s independent-minded entrepreneurs.

“The leaders of the companies on this year’s Inc. 5000 have figured out how to grow their businesses during the longest recession since the Great Depression,” said Inc. president Bob LaPointe. “The 2010 Inc. 5000 showcases a particularly hardy group of entrepreneurs.”

In the period measured by Inc., OneCommand introduced innovative new products and feature additions to its suite of integrated and automated, multi-channel communication solutions, including Equity Scoring, an enhanced Mobile Marketing platform, and a variety of new reporting and ROI analysis tools. Designed to streamline the owner lifecycle, reduce marketing expense and generate superior customer satisfaction, OneCommand’s products focus on the delivery of the right message, at the right time, and through the consumer’s preferred channel. OneCommand attributes its continued growth to its mission of helping clients realize significant improvements in loyalty and retention, frequency of visit and overall profitability.

“We are pleased to once again rank with the dynamic, thriving and fast-growing companies that make up the Inc. 5000 list,” said OneCommand CEO Al Babbington. “Few industries have experienced the challenges that the auto industry has faced over the past two years, and at OneCommand we consider ourselves lucky to serve the most resilient and creative group of entrepreneurs and businesspeople anywhere – auto dealers. As we move into 2011, we continue to focus on helping our dealership clients grow their businesses by providing them with cost-effective and cutting-edge marketing technologies that help them find, target and retain customers.”

Despite the fact that most of this year’s measuring period of 2006-2009 took place during the latest recession, aggregate revenue among the companies on the list actually increased to $321.6 billion, up more than 50 percent from last year. The effects of the recession are seen, however, in the median three-year growth rate, which dropped to 96 percent from last year’s 126 percent. This year’s Inc. 5000 employ a record 1.4 million people, up from one million on last year’s list.

About OneCommand
OneCommand is a leading provider of integrated and automated, personalized communications designed to streamline workflow, reduce marketing expense and generate superior customer response. Focusing on the delivery of the right message, at the right time, and through the right channel, OneCommand has rapidly expanded its market penetration by helping its clients realize significant improvements in loyalty and retention, frequency of visit and overall profitability.

In 2009 the Company delivered millions of personalized communications on behalf of its dealer clients – nearly doubling their communication during some of the most challenging market conditions.

OneCommand’s proven, web-based Relationship Performance Marketing Solutions enable customers to leverage the power of their voice through a multitude of channels, including voice messaging, mobile messaging, e-mail marketing, live call center services, direct mail and a variety of other two-way communication streams.

By providing a seamless solution for communication from shop to buy to service and repurchase, OneCommand offers the opportunity to coordinate a unified message to customers. This approach, paired with custom automation of timely, relevant and consistent communications, has led to significant reductions in marketing expense and even greater improvements in the customer experience. For more information call 1.800.814.6820, or email lleugers(at)onecommand(dot)com.

Autobase Announces Joint Presentation with Bill Leek and Shaun Kniffin at The 9th Digital Dealer Conference

Autobase, Inc., the premier provider in automotive CRM for auto dealers nationwide, and a division of Dominion Dealer Solutions, today announced Bill Leek, vice president of sales for Autobase, and Shaun Kniffin, Internet sales director for Germain Motor Company, will partner for a presentation during next month’s Digital Dealer Conference. Indianapolis, IN (PRWEB) September 14, 2010

The collaborative presentation, “How to Develop an Effective Digital Strategy with your Current CRM Efforts for 2011 and Beyond,” will address the effective use of today’s technologies to create a practical, results-focused, digital marketing strategy. Particular attention will be given to the importance of using CRM data to fuel multi-channel marketing campaigns and the success of various campaign media when applied to specific customer touch points. The discussion will highlight both planning and execution, as well as review proven best practices developed through the success and failure of real-life, dealership marketing efforts.

The 9th Digital Dealer Conference will be held at The Mirage, Las Vegas, from October 12-14. “How to Develop an Effective Digital Strategy with your Current CRM Efforts for 2011 and Beyond” is scheduled for 11:00 a.m. on October 13. Additionally, Kniffin will present “The High Touch Behind the High Tech – The Migration From Having an Internet Department to Becoming an Internet Group.” Both Leek and Kniffin will be in attendance for the entire conference.

Bill Leek is the vice president of sales for Autobase, and has over 22 years of experience in the automotive industry. He spent 14 of those years in the dealership retail setting in various sales and sales management roles. His extensive automotive industry knowledge, combined with a deep understanding of today’s current technologies, makes for a unique set of strengths in consulting on how auto dealers can maximize results.

Shaun Kniffin is the director of Internet sales and eBusiness development for the Columbus division of the Germain Motor Company. He has over 10 years of experience developing Internet business strategy. During the last five years with Germain Motor Company, Kniffin has helped increase Internet business by 40%.

About Autobase, Inc.
Autobase® has specialized in providing the automotive retail market with premier Marketing and Sales CRM Solutions since 1988. More experienced than any other CRM provider in the industry, Autobase offers a growing suite of cutting-edge marketing solutions and time-tested sales processes that drive and close significantly more business in the showroom and service drive. Nearly 40,000 auto professionals use Autobase every day to recession-proof their business by finding, selling, and retaining more customers. Autobase is a division of Dominion Dealer Solutions. For more information, visit www.autobase.net .

About Dominion Dealer Solutions
Dominion Dealer Solutions helps car dealers attract, retain, and service customers for life. Dominion Dealer Solutions products include: lead generation through IFMG; customer relationship management tools through AVV, Autobase, and @utoRevenue; Web sites through Dealerskins and XIGroup; and specialized data aggregation, management, and reporting services through Dealer Specialties, Cross-Sell, The DataCube, and DataOne Software. These businesses serve more than 60 percent of auto dealers nationwide. Learn more at Automotive Software & Technology | Dominion Dealer Solutions. Dominion Dealer Solutions is a division of Dominion Enterprises, a leading marketing services company serving the automotive, enthusiast and commercial vehicle, real estate, apartment rental, and employment industries. Please see Dominion Enterprises.

DrivingSales Innovation Cup Announcement at the DrivingSales Executive Summit

Award winners selected exclusively by dealers; awards presented at DrivingSales Executive Summit

Salt Lake City, UT (PRWEB) September 9, 2010 - DrivingSales.com, the auto industry’s largest car dealer social network, today announced the first annual DrivingSales Innovation Cup Awards, which recognize the most innovative vendor solutions and dealership strategies for 2010. The winners will be determined exclusively by auto dealers, and awards will be presented at the DrivingSales Executive Summit presented with WardsAuto.com (DSES), scheduled for October 18th through October 20th 2010 at the Encore Wynn Las Vegas. Dealership Strategy Award contestants are eligible for $10,000 in prizes. Applications are now open and available at www.drivingsales.com/innovationcup.

“We believe that dealers know best when it comes to the most innovative strategies and vendor solutions, which is why we have developed this unique approach to recognizing the practices and technologies that will do the most to advance the profitability of dealerships,” said DrivingSales Founder and CEO Jared Hamilton. “This is not about the vendor with the most advertising dollars to promote a product, or the dealership who has the best PR. It is about the forward-thinking strategies and products that have the real world benefits to help dealerships thrive in the rebounding auto market.”

Innovation Cup: Most Innovative Dealership Strategy Award of 2010

The DrivingSales Innovation Cup for dealers is designed to uncover The Most Innovative Dealership Strategy of 2010. Forward-thinking dealership employees are encouraged to participate and submit a best practice that has proven to increase results. A panel of judges will select five finalists, who will then have the opportunity to present their strategies to dealer attendees at the DSES and compete for $10,000 in prizes. The finalist whose strategy receives the most votes from dealership attendees will win the DrivingSales award for the Most Innovative Dealership Strategy of 2010.

For more information about the Dealership Strategy Award and to submit an online application, go to www.drivingsales.com/innovationcup. There is no charge to apply. Only dealership employees are eligible.

Innovation Cup: Most Innovative Dealership Solution of 2010

The Innovation Cup Award for vendors is designed to uncover the Most Innovative Dealership Solution of 2010. The award recognizes solutions introduced in 2010 whose innovative approaches have produced significant results for dealership customers. Five finalists will be selected from the online applicants by a panel of dealer judges, and the finalists will earn the opportunity to compete onstage at the DrivingSales Executive Summit. A panel of dealer judges will score each solution, and the highest scorer will win the Innovation Cup for Most Innovative Dealership Solution of 2010.

For more information about the Innovation Cup Awards and to submit an application, go to www.drivingsales.com/innovationcup. There is no charge to apply. Application deadline for all Innovation Cup Awards is midnight PST, September 24th, 2010.

DrivingSales Executive Summit 2010 presented with WardsAuto.com

A uniquely collaborative event modeled after the best practices and information-sharing among dealers and auto industry professionals on DrivingSales.com, the DrivingSales Executive Summit (#DSES) brings together the most successful and innovative dealers in the country, along with world-renowned speakers, all focused on dealership innovations and profitability. All dealership vendors and dealership employees can apply for the awards, which will be voted on and presented for the first time at the 2010 DSES.

Unlike other automotive industry events, the DrivingSales Executive Summit is 100% dealer driven and designed specifically for the most progressive dealer principals and dealership executives in the industry. For more information, visit DrivingSalesExecutiveSummit.com or contact dses(at)drivingsales(dot)com. Follow conference news as it develops on www.twitter.com/drivingsales.

AutoUSA Achieves Unprecedented Growth in 2010

110 Percent Increase in Customer Base Indicates Auto Dealers’ Return to Diversified Lead Mix

FORT LAUDERDALE, Florida – September 7, 2010 – AutoUSA, the industry’s best source of online customers and the highest quality Internet leads to auto dealers nationwide, today announced a drastic increase in dealer participation in its online lead generation programs and services. In the period from June, 2009 through June, 2010, AutoUSA experienced a 110 percent growth rate in the number of dealers participating in used vehicle lead generation services, along with a 14 percent increase in dealers taking part in the Edmunds.com Premier Dealer Program (PDP).

“In recent years many dealers have experimented with online marketing strategies such as SEO or SEM in order to attract consumers to their own web sites, but in 2010 we have seen a return to a diversification strategy,” said Phil DuPree, President of AutoUSA. “More dealers have realized that adding an independent lead provider to the mix is a cost effective way to increase their marketing exposure while generating a high volume of quality leads.”

Another significant finding is that 72 percent of AutoUSA’s dealer customers take advantage of more than one program or service offered. In the past year, AutoUSA has launched or expanded several programs to help dealers increase inventory exposure on the web and to generate both new and used vehicle leads. Dealers who partner with AutoUSA to post their new vehicle inventory listings routinely enjoy exposure on more than 100 of the top automotive web sites.

More dealers have realized that adding an independent lead provider to the mix is a cost effective way to increase their marketing exposure while generating a high volume of quality leads.

AutoUSA programs include:

Edmunds Premier Dealer Program (PDP): Dealers who participate in the PDP program are presented in more than 100 targeted “lower funnel” ad units that generate a significant volume of consumers calls and clicks directly to that dealer’s web site. PDP dealers are also guaranteed top placement in their exclusive territory in Edmunds’ popular Dealer Locator, along with high-conversion VIN-based leads.

Kelley Blue Book LeadDriver™: This program seamlessly integrates with Kelley Blue Book Trade-In Values on the dealer’s web site while simultaneously capturing lead information. In addition to the car buyer’s contact information, LeadDriver provides details on the trade-in vehicle and its value, as well as the buyer’s vehicle of interest. According to research by Kelley Blue Book, 73 percent of in-market vehicle shoppers are more likely to purchase a vehicle from dealerships that display Kelley Blue Book Values on their web site.

POWER Listings™: Powered by Cargigi (craigslist listing tool for car dealers), this AutoUSA program allows dealers to market and advertise their used-car inventory on the most popular free classified websites, resulting in targeted, high quality phone and Internet leads. A Live Market Monitor allows dealers to track the interest each vehicle is generating in real time and just-in-time ad placement technology ensures listings are posted during peak customer traffic times.

Used Car Inventory Pay-Per-Lead: This used car program enables dealers to post their used vehicle inventory at top automotive sites such as kbb.com, Vehix, AOL Autos, CarPerks.com, Overstock.com, AutoMedia.com, CarDomain.com and AutoUSA’s used car Web site, AutoUSAused.com. Where allowed by law, the program offers a pay-per-lead pricing plan, which is a cost-effective alternative to high monthly subscription rates offered by some other companies. AutoUSA’s phone lead service allows consumers to immediately contact dealers by phone when viewing a classified vehicle listing. Unique phone numbers are provided for each dealership, and dealers are only charged for the call if the consumer hasn’t phoned the dealership within the last 30 days and if the call is longer than 65 seconds.

New Vehicle Lead Program featuring Carperks Mobile: AutoUSA’s innovative new vehicle lead program gives dealers exposure on over 100 of the top automotive sites and exclusive access to the industry’s most cutting-edge applications. AutoUSA’s mobile leads program uses an iPhone/iPod Touch application, developed by Carperks, to generate new- and used-vehicle leads. The Carperks car buying discount iPhone app allows mobile car shoppers to access, search and view car inventory from dealer participants in AutoUSA’s Carperks program. It highlights those dealers within the shopper’s local market area that are available to provide price quotes and allows customers to immediately generate digitally formatted discount certificates valued at $100 for the new vehicle of their choice, where allowed by law.

All Internet leads generated from AutoUSA are scrubbed and validated before delivery to dealership customers.

About AutoUSA
AutoUSA, Inc., is headquartered in Fort Lauderdale, Florida, and a subsidiary of AutoNation, Inc. (NYSE: AN), the largest retail automotive company in the United States. AutoUSA is an independent provider of leads and services to thousands of dealerships. The company has built its success on a combination of advanced web-based technology and a network that includes the country's most well respected online automotive resources, including Edmunds.com, Kelley Blue Book, MSN Autos, Yahoo! Autos, America Online, NADA Analytical Services Group, AutoVantage.com, AutoNation.com and AutoUSA.com. The vast majority of Ward's Top 100 eDealers use AutoUSA. More information is available online at http://www.autousadealers.com

VIN Viper Delivers Instant Car Values and History Reports Saving Dealers Time and Money

SELIG TECHNOLOGIES LAUNCHES INDUSTRY'S FASTEST AND MOST COMPREHENSIVE REAL-TIME VEHICLE APPRAISAL DEVICE

CHARLESTON, S.C., (August 10, 2010) – Selig Technologies, LLC, is proud to debut its revolutionary vehicle appraisal devices that is unlike anything previously used by car dealers, independent vehicle brokers and auction houses. VIN Viper is a mobile device with a built- in VIN scanner that instantly returns live, real-time data from proprietary sources such as

Black Book®, AuctionNet®, NADA Guides®, Kelley Blue Book®, GALVES Auto Price List®, CARFAX® and AutoCheck®. Quite simply, VIN Viper literally puts the power of appraising vehicles in the palm of your hand.

“We designed VIN Viper with a simple philosophy – save time, save money, sell cars,” said Jason Seligman, President of Selig Technologies. “VIN Viper is the fastest, most reliable appraisal system on the market. It instantly retrieves real-time data from our data providers and is updated automatically with each VIN scan. It's quick and above all, it's easy. This is the one vehicle appraisal system that combines all the industry's top auto value providers into one instant and easy to use application because in today’s competitive automotive marketplace, it’s important to know more than the person next to you.”

Designed and built by car people, for car people, VIN Viper boasts the intuitive interface of today’s latest smartphones with enhanced accuracy and speed. Users can literally scan a hundred cars in minutes and share scanned data with others via email or manage it with the uniquely designed desktop suite application. The desktop suite allows users to manage the mobile device, create new appraisals, sync VIN scans and create custom reports. Not only is it the fastest and most accurate VIN reader, VIN Viper returns used car data and history reports up to five times faster than any competitor. With VIN Viper, simply point, scan, walk away, and the results are returned instantly, both to the mobile device and to the online desktop suite. To learn more about VIN Viper and its product offerings, simply log onto www.vinviper.com.

About Selig Technologies

The minds at Selig Technologies, LLC, have been creating innovative solutions for the automotive industry for more than 11 years. Our in-depth understanding and experience in the used car market helps us to build applications that you not only need, but also use.

FOR MEDIA: Contact Lauren Williams, DRIVEN Public Relations, (951) 719-1040, [email protected].

Autotrader PURCHASED vAuto

If its $200 mill paid, it sounds like a lot, but is it? Lets pull out the crystal ball and plug in some numbers (aka Uncle Joe's best guess ;-).

$55 mill vAuto revenues annually (3100 rooftops at $1500 p/top)

$17 mill COGS (Cost of Goods Sold)

$38 mill annual vAuto profit

Software companies are highly profitable (...as is any company ;-) Publically traded software companies average 75% gross margin. I plugged vAuto in at 70% gross margin.

Assuming that 'Trader consumed all the profits, their break even is 5.2 years out IF NOTHING CHANGES. Surely Chip and Dale hit the squirrel cages hard and saw synergies that will amplify vAuto's revs. So far, I see no stretch by either party.

The 200million dollar question is will the marriage of vAuto and 'Trader create new opportunities for whom they serve? Or, as is everyone's worry, will this marriage create a new monster that devours dealer profits?

Over the years, Dale and his customers have had many personal conversations. Chip Perry knows Dale's customers are going to have push back and Dale is seeing 1st hand all the baggage that AutoTrader has with it's reputation. Chip is going to need Dale's character and leadership to hold it all together in the transition.

This will be a great thread to re-read in 5 years. I'll leave a note for myself for 2015...

Dear Dale Pollack,

It's been 5 years since you sold vAuto to AutoTrader.com. Where are your Dealers now?

references:
http://vauto.com/uploadedFiles/sharedContent/PDF/...

http://seekingalpha.com/article/10166-chart-softw...

Autotrader PURCHASED vAuto

To all,

I would just like to thank you for both the support and the concern expressed here. I’d like to share a few thoughts with all of you.

First, I just want to go on record saying that I wouldn’t have sold to AutoTrader if I wasn’t proud to be associated with them. Yes, I know that it wasn’t but just a few years ago that if you mentioned the name AutoTrader, dealers would respond with a lot of negativity. Fortunately, AutoTrader also knows this fact, and has spent the last few years working very hard to change its ways.

For example, are you aware that there wasn’t a single dealer price increase in 2009, there won’t be a single price increase in 2010, and I understand that they made a commitment for no dealer price increases in 2011? What does this say about their commitment? It’s also very easy to be critical of any company that holds the dominant position of leadership in the market. If anyone believes that this company is insensitive as a result of their leadership position, then they don’t know Chip Perry, Alan Smith and others that run the company. Believe me I could not have sold the company to AutoTrader if I didn’t believe this to be true.

I think that there is still a lot of residual discontent from the past, and I also recognize that various individuals have personal agendas to promote. On balance however, I ask those that trust in me to allow our two organizations to demonstrate and execute the common philosophy of putting dealer’s interests first.

There is no doubt that the responsibility is now on us to demonstrate that this is a win for dealers. I recognize it and I’m motivated by the challenge of proving it. Please expect nothing less of vAuto, AutoTrader or me. In fact, you have the right to expect more from our newly united teams. I ask anyone that has any questions, doubts or concerns to communicate directly to me. My cell phone number is 630-343-9016, email [email protected]. I’ll work very hard and do my best to be sure that this is a win for everyone. Finally, thank you Jeff and Alex for providing this forum, it’s a very valuable tool for our industry.

Dale

Autotrader PURCHASED vAuto

What a sad day for the car business. vAuto is one of the few tools out there that brings true value to dealers. I know Dale is a really rich guy now, but he couldn't have sold his vAuto to a worse company. He may control it "separately" for a few years, but ultimately it will be surrendered to the losers who run AutoTrader now. How many times has AutoTrader been torn a new one on this site? We had a couple guys who sit on their "Advisory Board" defend them to the hilt.....BTW right after they just returned from an all expense paid trip, courtesy of AutoTrader to Las Vegas. It won't be overnight, but vAuto will be diluted in value the longer they are under the AutoTrader wing. Sad, sad news.

Autotrader PURCHASED vAuto

Dale is an extremely smart businessman. This acquisition will give the VAuto engine unlimited access to retail data, however, I do have a few concerns that are at opposite ends of the spectrum......I read thay AutoTrader also feeds data to VAuto's competitors and that this is going to continue. However, I wouldn't expect it to continue too much longer for obvious reasons. On the other hand, used inventory management tools are data driven and put a wealth of information at the hands of their users. This is great but with all of the other data driven tools that help to influence the decision making process in the dealership, just how much more can dealers take???? Many of the ones I talk to are in information overload......lol

Autotrader PURCHASED vAuto

Great deal for Dale (no doubt) but with more and more similar tools popping up each and every day I doubt AT is going to benefit as much. It's time for dealers to start thinking outside the box and breaking away from what "every other dealer is doing" as Jay so eloquently put it. Its time to quit being held hostage by "the big guys" and start utilizing tools like Facebook, Foursquare and the other social media assets available since I think we are all in agreement that the Internet is here to stay;-) It is the savvy automotive marketer that is going to get ahead and stay ahead. Doing the same old thing and expecting different results is...(we all know the rest). So, Rock On, Dale and, I am sure there is an "Alpha" addition coming to vAuto in short order.

Why Don’t They Want to Learn?

Mike,

Great article my friend. I have to say, I remember you coming to the dealership I was at somewhere between 1998 and 2000 and I thought your information was good and common sense. Plus I learned about replica watches from you way back then LOL (it was appreciated at the time).

I have been in retail automotive since '94 and training since about '99 and I have wrestled with the same questions you pose and I have to say that the only answer I can come up with is us trainers looking in the mirror.

Companies like JGV and Cardone Group have been around forever and while not everyone buys in they do have a cult-like following from others.

When it comes to training it's not the manager or salesperson's responsibility to be excited about it....it OUR RESPONSIBILITY as trainers to get them excited about it.

We sell training. We sell a vision of showing them an income and lifestyle they don't currently have.

If they don't buy it; it's because we didn't sell it correctly and if we can sell them on something we know they want - they shouldn't buy training from us should they?

I like where you're going by opening up this dialogue my friend. I just think that there are too many of us trainers that blame the manager and salesperson for not engaging.

We just have to sharpen our selling skills and help them see the value in getting better.

That's my $200k (I like to think I offer more than 2 cents :)

Why Don’t They Want to Learn?

Sorry for the delay. My internet is down and I've had to use dial-up for the last several days.

Apathy is such a great word that describes many low producing salespeople and managers. I find it difficult to go any amount of time without wanting to learn something new, something more. For me, I need it to give my students another perspective on the same old things. Many (keeps me from using the word "most") sales managers don't do much training, if any. We hire individuals and call them "independent consultants" which makes it their responsibility to learn on their own. You guys are right when you talk about the "trickle down effect." Dealers don't bother training the managers, and the managers don't bother training the salespeople. It's been the practice in our industry for years.

I have a forum called salesmeeting.org. It's a one-stop shop where anyone can register for free, and read over 2200 vehicle-related articles by some of the best writers and trainers in the world. I started this forum several years ago and have given this address to tons of salespeople and managers I've trained or sold products to. I think right now I have around 177 members. When auto people won't even take free training, it makes it hard for guys like us to take in personally. Yet we'll keep putting it out there hoping one will jump on board.

It's caused me to get away from the training part of the business and just stick with developing books and audios. As long as the credit card clears, it becomes their responsibility on whether they read or listen to them. Damn, I sound cynical.

BTW, Jeff, I'm glad you decided to start posting. There's nothing like putting your words down on paper. That's our commitment to what we believe, and we don't mind sharing it with the world. Joe and Craig, I can tell that you have your heads on straight. I imagine as long as we keep talking, someone is bound to listen.

Why Don’t They Want to Learn?

Jeff,
"“My how perfect this world would be, if everybody thought just like me”. The day I understood that the bulk of my frustration stemmed from not realizing that everyone didnt think the way I did(SHOCKER!) was the turning point in my career. Is this where I’m suppose to quote the Serenity Prayer?
I will ask that you do this… LET THE OTHER GUYS KEEP DOING WHAT THEY’RE DOING!!! and help those that want to be helped."

This is a huge part of what holds many Managers back.....you need to realize you can't have a team who all have the exact same strengths and weakness'. Even more so you can't have a team with all the same strengths and weakness' of the coach.

So many rookie managers remain a rookie manager their whole career because they can't get past this hurdle. Sometimes letting some things go empowers your salespeople to want to be more for themselves instead of being ordered to be more from above.

I attended Toyota training yesterday, not because I need to be Certified for Toyota.....I need to be Certified for myself and our salespeople who we require to be Certified as well.

Joe, Thanks as always for the kind words......anytime you want to take your own advice you're welcome to swing in.

Why Don’t They Want to Learn?

I agree with you Joe but understanding the psychology behind mediocrity will minimize anxiety and frustration in any leadership role. Are you giggling? BTW its Welch not Welsh. I have attended several of Jack's seminars and again you are right. Pace of the leader pace of the pack. I don't think that Mikes frustration stems from morale as much as it does from attitude. There's a reason why people like yourself and Mike are where you are in your careers. It's the way you think.

"My how perfect this world would be, if everybody thought just like me". The day I understood that the bulk of my frustration stemmed from not realizing that everyone didnt think the way I did(SHOCKER!) was the turning point in my career. Is this where I'm suppose to quote the Serenity Prayer?

I will ask that you do this... LET THE OTHER GUYS KEEP DOING WHAT THEY'RE DOING!!! and help those that want to be helped.

Why Don’t They Want to Learn?

Jeff,

You speak of how an individual stands out (in every industry), yet, you don't address why Mike sees a plague of apathy all around.

Ooops, I did it again Jeff, your giggling! Sorry, let me rephrase that. Mike sees a lot of players with their heads up their asses.

The overachievers are not the problem, it's the players in the middle of the pack. Its the sales team as a whole. When the team is bad, I trace it to lazy leadership.

Watch a snippet of Jack Welsh's famous Six Sigma management techniques where he talks about the role of leadership: Login to view embedded media View: http://www.youtube.com/watch?v=aNMULFcLuIM
Success for a team starts at the top and trickles down (aka lifts everyone up).

If you have a team of grumpy, pissed off under-performers that you don't fire, understand they are grumpy and pissed off because you're a shitty manager.

It's part of our auto-dealer culture. How many killer sales reps are upgraded to management status and SUCK at being a manager??! Managers need training too!

Why Don’t They Want to Learn?

Normally I choose to observe vs post. Mike, I enjoy your postings you speak from the heart. Joe, I must say you make me giggle.(It all traces to culture in our vertical??)

Mike you referenced the the Pareto Principle. Overachievers in the 20 percent category are just wired different. You see them in every industry. Take athletes for example. Jerry Rice is arguably the best WR ever to play. His work ethic and attention to detail is what he attributes his success to. Drive, purpose, desire and mental discipline are properties that these individuals have and the avg "Joe" lacks. I highly recommend a book named "Overachievment" by John Eliot .www.overachievement.com A very good read. Mike I hope you take the time to read this book. It's one of those Aha! kinda books.

Why Don’t They Want to Learn?

Mike,

I am NOT from this industry, but, I've been in this industry for 8 years now. Your problem is complex and so are the answers.

It all traces to culture in our vertical. If you want to freshen up your senses, step out and find a friend in the Real Estate industry, mill about and be prepared to be amazed at the differences.

IMO, here is why sales reps can get old and crusty. It all traces to leadership (or lack there of)

PROBLEM: Franchise protections isolate owners/management from stresses other industries are forced to face (e.g. aggressively cutting the dead wood)

This is compounded by...

PROBLEM: Everyone needs to drive and cars wear out. Ups are everywhere. (compare that to hot tub sales)

PROBLEM: Bitch Circles. Why is it the 20 a month car guys are never in them? Bitch Circles are a hallmark of relaxed management.

PROBLEM: Too many dealerships, too little profits (as compared to days of old), yet old school techniques are used daily (see Franchise protections).

PROBLEM: Sales fatigue. Customers lie, cheat and grind and grind and grind (go to the grocery store, ring up 220$ in food, present your coupons and THEN and ask for a manager for a better price!)

PROBLEM: Sales fatigue. Managers can grind shoppers and put reps in the middle. Reps can endure 10-12 hours of mind numbing and emotionally exhausting posturing... and not get paid.

Mike, our business is a team sport. Great teams set high goals don't allow bad attitudes. The malaise your seeing starts at the top and trickles down.

When a sales rep qualifies a customer they access needs and suggest solutions. In your business, when you qualify your customers for your program, find ways to create a score on the managements desire to find and train WINNERS.

Maybe your campaign should shift to training managers how to win!

Book a flight to Acton Toyota or AuctionDirectUSA or CityAuto and see how amazing leadership can percolate all the way down to the guys in cleanup. Then, you'll have found why you see so many reps that are all crusty and down.

It's a product of Poor leadership.

Also... Consider your program's "hook".
PROBLEM: What is free has no value. Your free offer may be a door opener, but, it's a poor qualifier. Present your amazing stats, you testimonials and referrals and make management buy in, they are the problem (and they know it), they need skin in the game!

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