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Auto Dealership Sales and Service Commissions Best Practices: Part II

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Author: Michael Stus, Managing Partner

The sales and service commissioning process should be an integral part of strategic operation of an automotive dealership. The most successful auto dealership groups and stores employ key best practices when it comes to paying commissions to their sales and service personnel. What are some of these key best practices when it comes to paying commissions to sales and service representatives? Here one such best practice in a multi-part series.

Commission Plan Document Acceptance

Auto dealerships have a lot of latitude when it comes to how they construct their sales and service rep commission plans. This flexibility can lead to issues though, if the process is not taken seriously. Progressive well run dealerships operate their commissions programs with a high level of diligence that includes recognizing that commission plans are legally binding contracts between the dealership and the representative. Plan documents should be constructed carefully including things like sample calculations, payout timing, exceptions, and a standard set of terms and conditions. Acceptance with signature or e-signature is a must as part of the rep on-boarding process, and any changes to plan documents must also be accepted by the sales and service personnel.  

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