October, 2023
Split Deals: An Unfair Headache and Total Waste of Time for Your Management Team
Split deals can be one of the biggest time-wasters and sources of drama in any dealership. While some may think they provide fairness or an equitable way to divide commissions, in reality, they undermine efficiency, create unnecessary conflicts, and weaken the overall sales culture. After years of experience in the industry, I’ve come to believe that splitting deals is counterproductive. Dealerships that eliminate split deals see stronger performance, a healthier work environment, and a more motivated sales team.
If you’ve never worked in a dealership that has banned split deals, let me explain how it works and why it’s so effective. The solution is simple: whoever ensures the deal gets closed, earns the deal. This approach fosters accountability, motivates salespeople to get deals done today, and eliminates many of the issues that split deals create.
Here’s why banning split deals is the key to running a more efficient and successful dealership.
1.) Split Deals Waste Management’s Time and Cause Unnecessary Drama
One of the biggest problems with split deals is that they waste valuable time—time that could be better spent on closing more deals or driving the business forward. Every time a salesperson brings a manager into a debate over who should get a portion of a deal, it pulls management away from more important tasks and into a drama-filled distraction. These disputes over who deserves what percentage of a deal consume management’s attention and take time away from selling.
By implementing a no-split deal policy, you eliminate these unnecessary distractions. The rule becomes simple and easy to follow: whoever helps get the deal closed, earns the deal. This approach removes the grey areas that often lead to conflict and resentment among salespeople, allowing management to focus on improving overall dealership performance instead of refereeing disputes.
Actionable Tip: Adopt a no-split deal policy and communicate clearly to your team that debates over deal ownership won’t be entertained. This gives your management team more time to focus on helping deals get closed rather than mediating commission arguments.
2.) Split Deals Encourage Laziness and Dependence
A significant downside of split deals is that they can lead to laziness among salespeople. When salespeople know they can still earn a portion of the commission even if someone else closes the deal, they may not feel motivated to fully invest in closing it themselves or ensuring it gets done quickly. This can create a culture where salespeople rely on others to finish deals instead of taking ownership of the entire process.
For example, a salesperson might greet a customer who is looking for someone else, and instead of seizing the opportunity to make the sale happen today, they simply hand it off or do the bare minimum, expecting to get a share of the deal later. This creates a weak work ethic, where deals linger and momentum is lost because salespeople don’t feel the urgency to make things happen right away.
Without split deals, salespeople will be more motivated to get the deal closed today, whether by themselves, by an Assistant Sales Manager (ASM), or by another closer. The difference is that the person who ensures the deal is closed earns the deal—it rewards proactive effort rather than passive reliance. This will push salespeople to ensure that customers aren’t allowed to walk away or put off decisions. Deals need to be closed now, and this no-split deal policy provides the necessary urgency.
Actionable Tip: Remove the safety net of split deals and reinforce that deals need to be completed promptly. This will create a more driven sales culture where every salesperson is motivated to see the deal through, whether with help from management or on their own.
3. Split Deals Open the Door to Cheating and Fraud
Split deals also open the door to cheating and manipulation. When commissions are shared, salespeople may start to game the system—claiming involvement in deals where their contribution was minimal, or finding ways to inflate their participation just to get a portion of the commission. This not only leads to resentment among team members but can also erode trust within the sales team and between salespeople and management.
Eliminating split deals removes the temptation to cheat the system. With a clear-cut rule that whoever gets the deal closed earns the deal, there’s no room for subjective decisions or favoritism. The dealership’s environment becomes more transparent and fair because everyone knows what’s expected. The person who ensures the customer signs on the dotted line is the one who earns the reward, reducing the potential for fraud or manipulation.
Actionable Tip: Implement a no-split deal policy to maintain a fair and transparent system. This helps to prevent cheating, creates a more trustworthy work environment, and encourages salespeople to focus on closing deals.
4. A No-Split Policy Makes Salespeople Tougher and More Accountable
Without the option of splitting deals, salespeople are forced to take full responsibility for getting deals closed and completed. They will become more focused on customer control, follow-up, and urgency in their interactions because there’s no longer an option to do part of the work and still get paid.
This system helps salespeople develop stronger closing skills because they know the deal needs to be closed today. If they can’t close the deal themselves, they know they need to bring in an ASM or closer to get it done. This process ensures that salespeople are thinking ahead and working harder to move deals along quickly, rather than letting things drag out. It also forces them to better manage their time and their customers, as they understand that their success depends on making things happen now.
When salespeople know they can’t rely on getting half a deal for doing half the work, they become more proactive, more engaged, and more skilled in pushing deals forward.
Actionable Tip: Foster a culture where salespeople take full accountability for getting deals closed. Whether it’s them, an ASM, or a closer, the motivation to close today drives better performance and a stronger, more self-reliant team.
5. No-Split Policies Foster Fairness and Accountability
Perhaps the most important reason to eliminate split deals is that it creates a culture of fairness and accountability. When salespeople know they won’t be splitting commissions, they’re more motivated to focus on getting deals done quickly and efficiently. They’ll take more ownership over the sales process and will be more likely to ensure the customer is taken care of, all the way through to the closing.
This approach also encourages faster deal-making. Salespeople are less likely to let deals sit or drag on, knowing that the urgency to close today is what will determine their reward. Whether they close the deal themselves or rely on a closer or ASM to get it done, the focus remains on ensuring the deal happens today, not tomorrow. This increased focus on immediate results will improve your dealership’s overall performance and reduce the number of deals that fall through.
By eliminating split deals, you’re also eliminating unnecessary drama, making sure that your sales team is focused on the task at hand—closing deals and delivering results. The system becomes harder to game, and your team becomes stronger, more cohesive, and more motivated to perform at their best.
Actionable Tip: Implement a no-split policy to create a culture of fairness, accountability, and motivation to close deals today. Your team will become more focused, efficient, and driven to achieve their targets.
Conclusion: Why Split Deals Are a Waste of Time and How to Fix It
Split deals are an unnecessary headache that lead to wasted time, weakened sales performance, and a toxic sales culture. By removing split deals from your dealership’s process, you create an environment of accountability, fairness, and motivation to get deals done today. Salespeople will become more engaged in the sales process, more focused on customer satisfaction, and more motivated to close deals quickly—whether by themselves, with help from an ASM, or with a closer.
The message is simple: whoever ensures the deal gets closed earns the deal. This approach eliminates the drama, discourages laziness, and creates a stronger, more results-oriented team. Take control of your dealership’s performance by implementing a no-split deal policy and watch your team thrive in a more productive, motivated environment.