I am sure most you reading this are familiar with the auto sales bird dog. Just about every dealership that I have talked to over the years has some kind of bird bog program for bringing in new customers. This is a tool that can really help the car salesman when they put it to good use with their own car sales follow up and referral system.
Finer Points of the Auto Sales Bird Dog
When a past customer or an outsider brings a customer to the dealership and they buy a car the person that brought them in or referred them gets paid an auto sales bird dog. This can be any pre-determined amount that is set up by dealership management. I have seen this amount be $50, $75 or $100 dollars and it is usually in the form of a check written to person that referred the buyer. It's a pretty good deal for the referrer, but they are not going to bring a trusted friend or family member if they did not get a great deal and great service.
Depending on management of the dealership where you sell cars some of the cost of the auto sales bird dog is paid for by the car sales person. Most dealerships require the salesman to pay for half of the bird dog fee because it benefits the salesperson. The downside of the bird dog is if you sell a car to a customer that came to you via a car sales bird dog and the sale was a "Mini" that paid you $100 and the referrer gets $75 your commission is reduced by $37.50. So instead on getting $100 for the sale you only get $62.50.
Auto Sales Bird Dog Benefits
You need to look at the positive side when it comes the auto sales bird dog and ask yourself if you would have sold that car without the referral fee. Whether you would have or not is not important. You need to think about it being one sales closer to a volume bonus and an opportunity to have made a bundle. I said it before and I will say it again, selling cars is all about the numbers. We take the good with the bad and the 4 pounders with the minis. If you fully utilize your dealership's bird dog referral program you may be able to add a couple of cars a month to your bottom line and help you get a volume bonus.
The successful car salesman will use every tool that is available to them to sell cars and a very powerful tool is an auto sales bird dog referral program. When you can offer an extra $50 or $100 to a past customer to bring you a customer you can substantially increase your referrals and deals. Most car salesman rarely use the dealer's bird dog program because they only look at the 50% that they have to pay rather than focus on the potential to earn them more opportunities, sales and a volume bonus.
Later, Fresh Up on the Lot
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