What if your dealer offered you this deal: “I’ll pay you $65 every single time you say hello to someone whether they buy a car or not.” Would you take it?
That’s not a hypothetical. It’s math. This is how I completely reframe how salespeople think about commission, and once you see it, you can’t unsee it.
Here’s how it works. Say you talk to 60 people in a month. At a 20% closing ratio (roughly the industry average) you sell 10 cars. At $400 average profit per car, that’s $4,000 in commission. Now divide that $4,000 by all 60 conversations, not just the 10 sales. You’re actually earning $65 every time you open your mouth and say hello whether that person buys or not. That’s first base.
Get better at the transactional game. Sharpen your product knowledge, your presentation, your process, and your closing ratio climbs to 35%. Same 60 conversations, but now you’re earning $120 per hello. That’s second base.
Here’s where it gets interesting. Marry transactional selling with relationship selling. Blend your stranger conversations with the people who already know and trust you, and your closing ratio jumps to 60%. Now you’re earning $200 per hello.
Stop waiting on strangers altogether and build a business almost entirely on relationships, and an 80-90% closing ratio is realistic. That’s $400 per hello. Home run.
The math doesn’t change because you worked harder. It changes because you got better – first at the transaction, then at the relationship. This four-base framework is one of the cornerstone teachings inside the 100 Car Club. Explore the training here.