Ask the Expert – with Joe Webb on Internet Director Pay Plans

Internet Director Pay Plan Questions

Hey guys-

I take all of your dealership advice and input very highly when it relates to the auto industry. I am up for an Internet Director pay plan review since it has been over 2 years since my last pay plan review.

As the Internet Director for the store, I do a lot more, as you likely may realize. Right now, I am paid a small base salary plus a commission on trackable sales through the Internet.

I’m also given some carrots that are out there with closing rates, photos online, cost per sale, etc. Last year, I made a good living as a single rooftop and was a little over 6 figures.

But with the Internet ever-changing our industry with people making decisions on the digital assets of our store that I’m responsible for, yet no longer submitting in leads as much as in the past.

What would be a fair Internet Director pay plan, including base pay, sales ncentives, etc.? Any of your input would be appreciated in answering the classic question around, “How much does an Internet Sales Director in the United States make?”

Thanks again,
Stan F.
Internet Director
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From Joe Webb

Internet Director Pay Plan Overview

I’d recommend starting with a reasonable base salary for any Internet Director in a successful single-point store (closer to $45-$55k per year).  After all, a good majority of your time is spent monitoring fixed and variable costs while controlling all online initiatives, not just increasing the conversion of Internet leads to sales.

My guess is that much more falls on the Internet manager’s plate, such as online ad budget distribution, vendor management, reporting, creation of digital assets, merchandising, website efforts, digital marketing, etc.

The second level of your Internet Director pay plan should always be based on profitability online.  Your job at the dealership must be one that can generate profit in a proven model.

One more common gross bonus is a % of the total gross profit (front/back) from either the store, the Internet department members, or Internet sources.

This can be a tricky bag, though. Everything we know indicates that your work as an Internet manager behind the scenes generates walk-in sales traffic for the store.

You might deserve to be paid for the entire store’s operations if you can prove it.

However, dealers are more comfortable paying Internet Directors a % of the gross based on what the Internet individuals are selling. That may not be a good indication of how much work you are responsible for, but at the end of the day, I know.

Otherwise, if your dealership sources well, you can request a % of the front/back gross from ALL customers sourced as the Internet, be they sold through an Internet team or even the sales team. If it is an Internet source, you’re taking credit for it.

The final steps are incentives based on growth metrics. If you are currently being held accountable for closing rates, response times, etc. Those are metrics for which you might want to be compensated. However, I do have a couple of new variables that should also be considered.

Internet Director Pay Plan Variables

1) Website Traffic
2) Organic Lead Volume
3) Ratings/Reviews Statistics and Volume
4) % of the profit from Service/Fixed Ops lead gen growth

If you can incorporate all three segments I described above into your Internet Director job description, Stan, you will be generating the income you deserve based on the numbers you can prove.

Hope that helps.

Joe

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