Running an auto dealership in Detroit isn’t exactly today’s dream job. So Bassim Robin, who owns AutoSmart America in Detroit, went looking for profit leaks to plug and “sales compensation” stood tall.

For many small and medium businesses, sales compensation is one of the largest costs on the books…whether you have 1 salesperson or 100. But sales comp plans are highly individualized to each biz, and designing the right one is like trying to master Rubik’s Cube – possible, but not likely. Your sales comp plan may be totally broken, and you don’t know it. Well-meaning incentives can go horribly haywire.

It may be time to simplify and “webify” your plan. And the best way I know how is one of the new web-based sales compensation management solutions. Makana, for example, offers a “self-service” solution that’s small business-focused and can help guide you step-by-step to building, implementing and managing a money-saving plan. (Makana this week announced a new entry point solution that’s just $19/month.) Robin, of AutoSmart, says that revamping his sales comp approach online had an immediate bottom line impact for his business. “Our sales became more profitable and predictable” than with his old (ugh) manual sales planning process.

The Makana website has lots of helpful info on the challenges you face trying to design a good sales commission and compensation plan. The CEO’s blog is also a good read.

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This entry was posted on 01/15/2009 at 2:02 pm and is filed under Employees/HR, Management, Retail, Sales. Tagged: sales, sales compensation, small business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.