I’ve been in roofing sales for about 10 years now, I’ve worked for good and bad companies. But overall a flat commission rate IMO is the best for the reasons you mentioned. I’ll sign a contract that says money owed, is money owed. But if I work a split, and they close the books, I have nothing to argue about. I’ll take an x% commission over a split.
I worked for a tiny company for about 4 years... Installing for 2, selling for 2. My best year selling i sold about 1.3 million, that was his production limit.... My take home pay was 28 grand, driving my own truck, and my gas...I have a wife and 2 kids... (if he would've paid me a little bit more, i would have stayed with that guy for ten years.) But he was greedy, not even giving me some tax deductible gas. so i spent my stimulus checks on the books, course, and the exams, passed both exams the 1st time (he fired me shortly after finding out i was shooting for the license, he still owes me a couple of grand....) now I'm licensed and in business for about 2 months! Wish me luck! Hey Dmitry i'm working on those 20 reviews-I can't wait to join directorii!
@@andrewhastings4961 Thanks for asking! It's been a dream! Right now I'm just trying to play it smart I don't want to bite off more than I can chew so I'm being very picky about the jobs i sell. Keeping my head down staying out of debt. Supply company's keep calling wanting to issue me credit,,, nope. Not yet. Let me practice managing cash before you guys throw credit at me. So right now we are a debt free company, seriously.. not a dime owed anywhere. Got a shop/office Wrapped 20 year old truck About 7 guys- all guys are w2 employees Not a slow week since open.
28 grand is garbage. If you sell 1.3 million he should give you AT LEAST half. That's such a tough job you should be paid well. I'm so sorry you had to go through that.
I agree with this. I have so many friends in this industry and they have the flashy trucks and gadgets, they do a million in business a year and barely make 70-80k in commissions. In my second storm season I did 700k in Business and brought in over 100k in commissions easy. My boss loves to write the big checks because I earn them and know how to make my jobs more profitable. KNOW YOUR WORTH.
I have been using straight commission on gross sale for about 20 years. Sale must be justified in our software which is itemized and sold at target retail- I have built an excel sheet which allows for some wiggle room for a little more or less payout. This works really well when you have honest sales people and every estimate has to be approved. Mistakes can and do happen but not that often and not too much to manage when you have the right people. I only have one sales rep at this time and he earns in the mid 100k's. He does not manage the jobs once sold but does stay in communication with the customer. I have also had salaried sales reps and they tend to not do that well, but they would starve on the straight commission method however you can utilize them in other admin duties and production management. They usually are happy with a guaranteed paycheck. Service & Repair sales is another story and I prefer a salaried rep for that. Good luck to all and stay on top!
Hey ! I work for a good size company, we are based out in New Orleans , LA our commission is 14% gross on residential , and 30% on commercial after everything is deducted!!! Great company
Dmitry - super insightful information here on sales reps and commissions. Thanks for sharing this. I think the key takeaways from this video for me are: - give the sales reps a healthy base commission on company-generated leads, but incentive reps with a higher commission rate on self-generated opportunities so the rep benefits from higher earnings, but there is less strain on the need for company marketing spend, reducing "lead baby" culture. - quality over quantity: Sales volume won't solve problems if fulfillment becomes an issue. Having a solid recruiting process (which I can help with) to find motivated reps who can be elite performers is key. This way you can elite performers one rep at a time to grow in lockstep with production capacity. This also lets you build a business with a strong culture of top performers to as a leader you can be more "hands-off." Conversely, "Block Hiring" is not always the best strategy because you lose control of culture, and of fulfillment, in some cases. Anyways, looking forward to seeing you in Vegas this year!
What is a sales person’s motivation to be sure a job is profitable on a gross percentage commission? Going to that method of commission would save us endless hours of office work and accounting, But when a sales person signs a contract, with the homeowner, and we do the work, we need to know what is profitable. On a profit split they gain and lose commissions at a much higher rate when they upsell or discount a job.
Commissions can be built around a dollar amount per square. Discounts can be subtracted from total commission. Profits are based on a price per square when calculating a proposal. Workers/ subcontractors, project managers can be paid so much per square.
If you are estimating on "per sq " price then you better be sure of your numbers. And if you are using a free lance sales rep then are taking on more risk. Usually those guys are clever and will find your blind spot soon enough. I don't mean to say that is all of them but I would never consider having a non-employee sale for me. Just my way of doing business.
D, please do a video on profit sharing model, and what happens when job goes south and loses money. Salesman shares in the loss as well as profit. No matter whom fault it was that the job lost money. Salesman want to share in the profit but not the losses on a job when bad things happen. Give examples of how many things can go wrong on a job which effects the bottom line. My thanks in advance
If you make a commission plan too difficult to understand, confused sales reps won't sell. Period. No matter the industry. A simple straightforward plan based on a percentage is the best. If the owner doesn't know his overhead and come up with a good percentage, that's their problem.
7:50 is the exact situation I’m dealing with right now with a few other people to the point I kinda kept saying something about my money and they came up with some reason to fire me.. hey live and learn I guess… they still owe me that money and it’s been 2 months lol I’m sure they just used it to pay all the new people they’ve been hiring 🤷♂️
I know many company's that fix the numbers on the books higher so that the sale people are looking at inflated (material and labor costs) so they actually pay the split out even lower. 😂
Why should a salesperson share in net profits of a job? Unless they are working on the roof their link to workmanship and work done by subcontractors is non existent.
It's common for the roofer and his crew to not be native English speakers. It's also common for homeowners to prefer dealing with people that look and speak like them, hence the reason the roofer and crew are dependent on the sales person to bring work. It's both unfair and human nature. If you talk with immigrant business owners than you'll quickly find that they wish they could magically turn into an "older white man" when selling to their customers.
@@ToddBizCoach - good point, I should have clarified myself that my definition of non-native English speaker is someone that speaks English but has an accent.
![$ Commissions: Everything Sales Reps & Owners Should Know About What's Fair [My Opinion]](http://i.ytimg.com/vi/L0O8rXcIgc8/mqdefault.jpg)
I’ve been in roofing sales for about 10 years now, I’ve worked for good and bad companies. But overall a flat commission rate IMO is the best for the reasons you mentioned. I’ll sign a contract that says money owed, is money owed. But if I work a split, and they close the books, I have nothing to argue about. I’ll take an x% commission over a split.
Thanks for time to share! Excellent points!
I worked for a tiny company for about 4 years... Installing for 2, selling for 2. My best year selling i sold about 1.3 million, that was his production limit.... My take home pay was 28 grand, driving my own truck, and my gas...I have a wife and 2 kids... (if he would've paid me a little bit more, i would have stayed with that guy for ten years.)
But he was greedy, not even giving me some tax deductible gas.
so i spent my stimulus checks on the books, course, and the exams, passed both exams the 1st time (he fired me shortly after finding out i was shooting for the license, he still owes me a couple of grand....)
now I'm licensed and in business for about 2 months! Wish me luck!
Hey Dmitry i'm working on those 20 reviews-I can't wait to join directorii!
Hell yeah!
How’s it been going brotha?!
@@andrewhastings4961 Thanks for asking! It's been a dream! Right now I'm just trying to play it smart I don't want to bite off more than I can chew so I'm being very picky about the jobs i sell. Keeping my head down staying out of debt. Supply company's keep calling wanting to issue me credit,,, nope. Not yet. Let me practice managing cash before you guys throw credit at me.
So right now we are a debt free company, seriously.. not a dime owed anywhere.
Got a shop/office
Wrapped 20 year old truck
About 7 guys- all guys are w2 employees
Not a slow week since open.
28 grand is garbage. If you sell 1.3 million he should give you AT LEAST half. That's such a tough job you should be paid well. I'm so sorry you had to go through that.
I agree with this. I have so many friends in this industry and they have the flashy trucks and gadgets, they do a million in business a year and barely make 70-80k in commissions. In my second storm season I did 700k in Business and brought in over 100k in commissions easy. My boss loves to write the big checks because I earn them and know how to make my jobs more profitable. KNOW YOUR WORTH.
I have been using straight commission on gross sale for about 20 years. Sale must be justified in our software which is itemized and sold at target retail- I have built an excel sheet which allows for some wiggle room for a little more or less payout. This works really well when you have honest sales people and every estimate has to be approved. Mistakes can and do happen but not that often and not too much to manage when you have the right people. I only have one sales rep at this time and he earns in the mid 100k's. He does not manage the jobs once sold but does stay in communication with the customer. I have also had salaried sales reps and they tend to not do that well, but they would starve on the straight commission method however you can utilize them in other admin duties and production management. They usually are happy with a guaranteed paycheck. Service & Repair sales is another story and I prefer a salaried rep for that. Good luck to all and stay on top!
Hey ! I work for a good size company, we are based out in New Orleans , LA our commission is 14% gross on residential , and 30% on commercial after everything is deducted!!! Great company
If you want a job, please dm me.
Dmitry - super insightful information here on sales reps and commissions. Thanks for sharing this.
I think the key takeaways from this video for me are:
- give the sales reps a healthy base commission on company-generated leads, but incentive reps with a higher commission rate on self-generated opportunities so the rep benefits from higher earnings, but there is less strain on the need for company marketing spend, reducing "lead baby" culture.
- quality over quantity: Sales volume won't solve problems if fulfillment becomes an issue. Having a solid recruiting process (which I can help with) to find motivated reps who can be elite performers is key. This way you can elite performers one rep at a time to grow in lockstep with production capacity.
This also lets you build a business with a strong culture of top performers to as a leader you can be more "hands-off."
Conversely, "Block Hiring" is not always the best strategy because you lose control of culture, and of fulfillment, in some cases.
Anyways, looking forward to seeing you in Vegas this year!
GREAT ADVICE AS ALWAYS. THANK YOU FOR SHARING YOUR KNOWLEDGE DMITRY!
What is a sales person’s motivation to be sure a job is profitable on a gross percentage commission?
Going to that method of commission would save us endless hours of office work and accounting, But when a sales person signs a contract, with the homeowner, and we do the work, we need to know what is profitable.
On a profit split they gain and lose commissions at a much higher rate when they upsell or discount a job.
Commissions can be built around a dollar amount per square. Discounts can be subtracted from total commission. Profits are based on a price per square when calculating a proposal. Workers/ subcontractors, project managers can be paid so much per square.
@@ToddBizCoach I'd like to talk with you about this
If you are estimating on "per sq " price then you better be sure of your numbers. And if you are using a free lance sales rep then are taking on more risk. Usually those guys are clever and will find your blind spot soon enough. I don't mean to say that is all of them but I would never consider having a non-employee sale for me. Just my way of doing business.
@@williamking638 if your estimate is based on a per square quote the measurements would already be available.
What awesome message about young people not knowing what to do with the money ❤️💥🙏
Golden material! Thank you D.
We have minim prices per square where we know we will profit no matter what.
D, please do a video on profit sharing model, and what happens when job goes south and loses money. Salesman shares in the loss as well as profit. No matter whom fault it was that the job lost money. Salesman want to share in the profit but not the losses on a job when bad things happen.
Give examples of how many things can go wrong on a job which effects the bottom line. My thanks in advance
What the hell. Dude, No. The salesman is not liable for a loss, you are the owner, you are the one liable not the freaking salesman lol.
If you make a commission plan too difficult to understand, confused sales reps won't sell. Period. No matter the industry. A simple straightforward plan based on a percentage is the best. If the owner doesn't know his overhead and come up with a good percentage, that's their problem.
7:50 is the exact situation I’m dealing with right now with a few other people to the point I kinda kept saying something about my money and they came up with some reason to fire me.. hey live and learn I guess… they still owe me that money and it’s been 2 months lol I’m sure they just used it to pay all the new people they’ve been hiring 🤷♂️
What is that panel? I couldn't understand "____ Panel"
Is 75-100 days a long time to get the back end of commission for a sale?
MONEY REQUIRES DISCIPLINE.
I know many company's that fix the numbers on the books higher so that the sale people are looking at inflated (material and labor costs) so they actually pay the split out even lower. 😂
Excellent advice
Why should a salesperson share in net profits of a job? Unless they are working on the roof their link to workmanship and work done by subcontractors is non existent.
It's common for the roofer and his crew to not be native English speakers. It's also common for homeowners to prefer dealing with people that look and speak like them, hence the reason the roofer and crew are dependent on the sales person to bring work. It's both unfair and human nature. If you talk with immigrant business owners than you'll quickly find that they wish they could magically turn into an "older white man" when selling to their customers.
@@donaldlee6760 they should learn how to speak English so they are not at a disadvantage. Not hard to figure out but it takes motivation to do it.
@@ToddBizCoach - good point, I should have clarified myself that my definition of non-native English speaker is someone that speaks English but has an accent.
@@vicmart4501 is that a typo? You charge over $1,000/ sq?
@@donaldlee6760 it’s a matter of trust.
Are these guys selling jobs profitably with a scope that their company can complete?
$20-30k/w?! SIGN ME UP!
Not all roofing business platforms utilize sales and commissions to be successful. There are other ways to succeed.
You are not wrong
Yes! Would love to hear your idea of that.
Thanks Dmitry