Commissions

Glengarry

I own a roofing/waterproofing company and have decided to bring in another salesperson. What are some typical commission rates? I have heard everything from 10% of the gross sale to 10% of the net.
What are people's thoughts on salary plus vs. straight commission vs draws?
Thanks,
Greg

parkerfairfield

I had success with this -

The pure commission guys got:
a) my lead = 8% revenue
b) their lead = 10% revenue
REVENUE included change orders

They were shown how to calculate PAR, responsible for bidding the job, getting approval of price (with pics) PRIOR to presenting and signing job w/ customer.

IF they sold the job above the PAR price, then they got a large percentage of the amount above par.


PAR was (materials+labor+workers comp+fees)x(Company Overhead+Profit)

PAF
i wish this site had 'private message' I'd invite you to private message me.

email me for more info if you'd like.

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DamionR

I agree with parkerfairfield...

We feed our salesguys most of their leads... obviously if they want more than they get from us - then they have to hustle a bit.

10% of par pricing... anything over par is split 50/50. Overage has a cap on it of course - don't want a salesguy selling a $5,000 for $25,000 - sounds good when it comes to money... but it's horrible unethical business that always ends up biting you.

Back in the day when leads were light... we paid the salesman an extra 5% for a self-generated lead. Now... since salesguys get lots of referrals from our own marketing efforts... we pay them an extra $100 on a referral sale.

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Cole

It does, you just dont have enough posts to use the function yet.

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parkerfairfield

Good LORD ... hope I don't need to have 10% of what you have!

Thanks for the update

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parkerfairfield

Damion... what type of contracting are you involved with?

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DamionR

couple different types - siding, windows, most of my experience is from a client of mine - in the basement waterproofing and foundation repair industry.

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parkerfairfield

So what does "Contractor Marketing" mean?

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DamionR

I bring business and profitability to networks of contractors - that's all

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