The 2 Most Common Roofing Salesperson Compensation Plans
Roofing sales are a gold rush, aren’t they?
Well, for top sellers, it certainly can be.
But it’s important for homeowners and sellers to offer a roofing sales compensation plan that ensures these three things:
Has the work been done in a buy email list quality manner that deserves 5-star reviews and word-of-mouth referrals?
May it help motivate the seller to sell the right products and not cut corners.
It adequately pays the business for the risk and overhead required to run the business well and continues to drive the business forward.
In this video, I talk to Dallas Werner of First American Roofing who breaks down the pros and cons of the various common roofing sales plans.
Contents
Joint Roofing Sales Compensation Plans:
- The 10/50/50 split and its challenges
"This would obviously vary depending on the types of work your company does, but I’ve found that for insurance rate funded jobs, a sales rep getting the 10/50/50 split will average 10% to 20% of total job in commissions If you have a job where insurance pays O&P, that’s on the higher end If it’s a big roofing job with steep, double loads steep and high, the rep will average 15–18% of the total work Small and simple cookie-cutter roofs will pay 10–12% commission.
so his remuneration/commission decreases accordingly. »
“When taking this approach, I think it’s important to have a reasonably well-written sales rep handbook that outlines the role, expectations, etc. For example, our rep handbook includes a code of conduct, descriptions to complete contracts, diagrams/measure a roof, what to look for in case of storm damage, do’s/don’ts to facilitate fitter meetings, how to chalk a roof and take pictures and several other important subjects for us.”
2. A better alternative: just share the profits
Should you consider sharing JUST a % of the profits?
It protects the business from completely hurting itself, and yes, it incentivizes the seller to sell more profitable jobs.
Based on margin amount (40% margin, no markup, after deducting a percentage of overhead.)
Once it’s removed… the phone number list sales rep gets 40% of that profit.
How do you protect the customer from selling something too expensive? Well, if you’re using this particular roofing sales compensation plan, Dallas Werner of First American Roofing suggests capping project profitability at around 50–60%.
He says this sets up the guarantee that no one ever gets a crazy, overpriced experience from your business, thus ensuring better word-of-mouth and reviews.
