Just the other day I was talking to a dealer that was looking for a new Internet Manager.  This is a small dealership that represents two up and coming franchises and sells about 100 units per month.  They have 2 Internet coordinators and are looking to add a manager.  The previous manager left to go work for a vendor for similar pay and less hours over a month ago.

Here is a dealership that has an internet department that is running with no process and no real idea of how to measure the results that come out of that room.  When discussing how much an Internet Manager should make the dealer says “Well, NADA says that an Internet Manager should make $60-65k per year”.  I looked at them and smiled because at that moment I understood exactly where their thoughts were.  I realized that either they are not properly educated on what to expect and measure or they just really do not care to value people in one of the most important positions in the dealership today.  What was even more interesting was how they expect that internet manager to be a working manager and handle everything from answering leads to also handling marketing and managerial efforts.  By the way, this manager for $65,000 will also work a full manager schedule that includes 3 bell to bell days.  I explained my opinion like this, “For $65k, it is obvious why you have not had anyone talented come on board and have not replaced anyone in over as month”.  I added that “$65k will get you a rookie that needs heavy training and a high level person to run the department is a six figure executive.  You can have 29 cents per pound chicken wings and stay at a standstill or you can invest in a high quality piece of steak and really move the needle.”

We have all heard the saying, “The Internet Manager of Today is the General Sales Manager of Tomorrow”.  The reason why some industry experts say that is because it is true.  Once upon a time an Internet Manager was just a sales consultant that personally sold and delivered cars to internet leads without handling showroom floor traffic.  In some aspects the Internet Manager was a sales manager for a group of Internet Sales Consultants.  While, there are dealerships out there that may still operate that way in 2013 there needs to be recognition for a major shift in the industry for what is going on.

The reality is that sales consultants do not have the proper phone skills to handle internet sales opportunities properly.  The other reality is that sales consultants care about what is in front of them now and not what is coming in.  Some more realities, the internet has become a major part of how dealerships market their business.  Dealerships that have been trying to hide from the internet for so many years now have no choice but to at least dabble in it.  This is because some OEM companies are cracking down hard on the dealerships and relying on them to make the appropriate changes in order to stay compliant.

In most cases, a business development center is the way that Internet leads are being handled with professionally trained phone professionals who focus on making lots of phone calls each day to generate appointments for showroom traffic.  These departments are managed by high powered sales managers that have excellent call center management skills, phone skills, and preferably automotive sales and sales management skills.  It is in my opinion that the best BDC Manager knows how to work a car deal and is at the level of a strong desk manager.  Sadly, I have seen people with no care sales experience hold those positions and I still cannot understand why a dealer would settle for that.  But then again, how many vendor reps come in to dealerships to sell a product and tell the dealer how they should sell cars yet they have never been in the dealer’s shoes ones (Yes, it makes me sick and I take it personal).

The bottom line is that the Internet Manager of 2013 must be prepared to be at the level of a General Sales Manager.  Look at the responsibilities of a General Sales Manager.  They are in charge of managing a large team, advertising budgets (sometimes), and training, mentoring, coaching, closing deals, desking deals, managing the finance department, growing their own skills, and reporting to the dealer with full accountability.  Now, look at the Internet Manager.  Internet Managers need have skills that include mastering internet lead management process, managing the CRM/ILM, managing dealership websites, managing social media and reputation for the dealership, handle vendor relations, work with sales department to ensure sales are being properly made, and report to the dealer.  Do not get me wrong in some operations there is more than one person handling the duties and in some cases third party vendors are in place to eliminate some tasks.  However, these vendors still need to be managed by a competent manager.

In essence these are the same job descriptions as the General Sales Manager.  So why does a GSM does make $150,000 per year and an Internet Manager only makes $65,000 per year?  My friend who is a sales manager said to me the other day, “being an Internet Manager today is so much tougher than being a sales manager between all of the marketing, technology, and then managing people and dealing with politics because you are under appreciated”.  The bottom line is that the Internet Manager should have the respect of a General Sales Manager especially since there is a huge chance that they will one day take over that role.   For the dealers that are reading this, if you plan to be a successful dealership in 2013 and hire an Internet Manager make sure that you test their skill level, knowledge at the very least.  Also, be prepared to pay and treat them as a real executive as that is what they will be to you.


---About the author: Stan Sher is widely recognized automotive industry expert with regards to sales and marketing.  He is the President of Dealer eTraining.  Learn more about his background here.

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Comment by Doug Davis on December 9, 2012 at 8:57pm

Stan, how many times have we heard variations of that same story ..."only the names have been changed to protect the innocent".  They do maintain a tight grip on their ignorance.

Putting a progressive Internet Director in an old school store will put a big bulls eye on his chest.

Comment by Stan Sher on December 9, 2012 at 4:39pm

Doug reminds me of 2007-2008 when I went into a Honda store that sold 300 a month with a joke of an internet presence.  1 Internet coordinator managing 500 leads and delivering 25 cars a month.  The dealer was cheap and not investing into the internet at all.  The store is mismanaged and survives by pure luck of being in the best location ever.  It is unfortunate but at the time I had no idea I was joining the weakest sales team I would ever see.  I mean weaker then circus lemonade.  A store full of giveaway artists.  3 New Car sales managers that would never TO customers.  Sales people working their own leases and dropping their own pants.  In fact the GSM who was really a glorified sales person (30 years in the store) called Internet Customers "Internet a$$h****:.  In my first month while I was rebuilding the department, it was just me and the coordinator we banged out 60 units between the two of us.  I wrapped up my sleeves and sold 35 cars myself technically.  We went from $1600 per unit to $1900 per unit.  My coordinator went on vacation for 5 days that month too.  The store had a record month and sold close to 20 more units then they ever have in the 30+ plus years they have been around.


By month 2, I had a sales team of 4 guys we would handle leads starts to finish.  They had a decent pay plan.  The 4 man team was doing around 70 units per month at around $2,000 per copy.  Each deal was desked and I would TO every customer.  I would appraise all of our own trades and oddly enough my trades did not cause the used car manager headaches.  Funny part is that I learned how to desk and appraise in that job.  I had friends at other stores that were managers that taught me the ropes.  My downfall in the store came when I could not get the dealer to spend more money on getting me opportunities and they complained about us not hitting 100 cars a month.  We were only getting 500 leads total.  We were not tracking incoming calls either.  I was despised by the sales managers because my deals were always clean, profitable, and the customers kept coming in and asking for us.  So the department literally got eliminated and the store went backwards.  I was asked to stay on a sales person for used cars.  I was 24 years old in the process about to close on a $300,000 house as the economy was about to fall apart.  I sold used cars for 1 week and was disappointed in the fact that I was being not appreciated.  I went and cancelled the deal on buying a house because of the job situation and my attorney not liking the paper work.  I quit my job out of anger and then the dealer stole about $4k from me that was owed and did not play nice.  Since then a buddy of mine consults them and I know they still cannot figure out what to do and how to do it.  I know for a fact that they never hit my numbers again.

Comment by Doug Davis on December 9, 2012 at 12:19pm

Stan, phenomenal post.  I wonder if they think that they can recruit a quality Sales Manager for $65K?  

A few years ago, I went to a dealership that had three ISMs doing about 40 units a month.  Over the next year, that store went to 12 ISMs doing over 170 units which accounted for 70% of new and used car sales.  We were limited by the number of phones and computer drops.  That department has some high quality salespeople.  Like many really good salespeople, they tend to be high maintenance and difficult to control. The "geek stuff" will only carry you so far.  You need to be an above average Sales Manager to get the job done.  Honestly, I miss having a team and the challenge of increasing market share.

Since I left the store, they have lost most of those ISMs.  They have been through three Internet Directors and their internet sales are less than half.

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