$ Commissions: Everything Sales Reps & Owners Should Know About What's Fair [My Opinion]

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  • เผยแพร่เมื่อ 2 ต.ค. 2024

ความคิดเห็น • 74

  • @TheRoofStrategist
    @TheRoofStrategist  2 ปีที่แล้ว +1

    What question did I not answer about commissions?

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      @melinda frederique I'm really sorry to hear that. This video may help guide you in the right direction: th-cam.com/video/JUNPSeaxxOw/w-d-xo.html

    • @kasandramckenna3250
      @kasandramckenna3250 ปีที่แล้ว +1

      If your company has a base salary and a commission floor, once you hit that floor do you make commissions off of all of the sales that got you to the floor or do you only make commissions on the sales that happen after the floor is hit?

    • @tylerherron655
      @tylerherron655 11 หลายเดือนก่อน

      @@kasandramckenna3250 Good question. @theroofstrategist can you advise?

    • @nygnick12
      @nygnick12 18 วันที่ผ่านมา

      What is your opinion on broker commission as a 1099 “employee” ? In charge of profit overhead for company is low 3 sales representative lead budget maybe 3,000-5,000 and 20% commission based on deposit

  • @label1877
    @label1877 2 ปีที่แล้ว +10

    Salesmen should only agree to work for a sales commission based on gross. A company can manipulate the profit to show any number they want.

    • @jeramiekramer5850
      @jeramiekramer5850 2 ปีที่แล้ว +4

      I pay mine on gross as your right. Sales people want to know what they make when they are selling..it's motivation. On the other hand if you have a sales guy who likes to under quote they need to be penalized for failure to properly quote.

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +2

      @@jeramiekramer5850 Yes - they gotta participate in the UPside and the DOWNside.

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +3

      @label1877 - I appreciate your sentiment. Respectfully - I work with a LOT of truly ethical and transparent companies who paid off the profit with CLEAN reporting. It can and is being done. I do agree with you that many "bad apples" and dishonest owners manipulate #s and that really, really sucks.

  • @stormrenu3873
    @stormrenu3873 2 ปีที่แล้ว +6

    We have a hybrid model of both and yearly profit sharing of overhead for the year for those that stay year to year!

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      That's pretty cool! Thanks for sharing this!

  • @111toner
    @111toner 2 ปีที่แล้ว +4

    Adam, as usual, great job on explaining the two most common commission structures. I am interested in more details. Things for future discussion include: Business Cards, Signs, brochures, etc. (Salesman pays or company pays affects %age) ; Lead generation - keep it simple says use single %age of gross, but company WANT salesman to generate their own leads so perhaps a higher %age for a self generated lead versus lower %age for inhouse lead given to them? Big one - what happens when deals go wrong? A bad salesman can sink a company fast - not all salesman have same profit percentage and some salesman sell deals knowing they are likely a bad credit risk. How are companies handling LOSSES? Interested to hear your thoughts and from other established roofing companies out there. Thanks!

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      Sorry for the delay on this! All great questions. I teach that ALL commission should be the same - self generated or not. Why? Because it gets messy. Reps start DOMINATING neighborhoods and get calls off yard signs or their truck, and then it's treated as an inbound lead and the commission is lower when the rep deserves to benefit from their neighborhood domination. Keep it simple.
      Losses -- these only apply when reps are responsible for PROFIT. If your rep isn't in charge of profit, they shouldn't be paid off the profit. Also - that means YOU should have controls in place to make sure jobs are profitable before they are built. AND quality control processes in place.
      Hope this helps.
      P.S. There was just a recent discussion in the Pitch Pro Movement discussion board (the Leadership Roundtable for owners/managers) about pay structures and quite a few folks shared.
      Details here should you be interested: www.pitchpromovement.com/adam

  • @nygnick12
    @nygnick12 18 วันที่ผ่านมา

    Very informative and extremely helpful.

  • @timk1512
    @timk1512 2 ปีที่แล้ว +2

    Are commission structures 10-50/50, 15-50/50 common?
    Every heard of a 5-50/50?

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +2

      Yes I've heard of 5/50 but it is very rare. Frankly, it's OVERLY in favor of the sales rep and not something I would recommend that companies pay. BUT if you are getting paid that AND you're treated well - I wouldn't leave :) Because you are not likely to see that elsewhere.

  • @Dangel1jm
    @Dangel1jm ปีที่แล้ว +2

    I’m in training videos r helpful thanks I’m from Houston Texas but I just moved Michigan. What advice do you have for me so I can reach three figures this year?

    • @TheRoofStrategist
      @TheRoofStrategist  ปีที่แล้ว

      Welcome to the channel! What advice do I have? TONS. Hop inside my FREE Training Center here: theroofstrategist.com/free-training-center
      Then go to the Pitch Like a Pro Video Training Library and start with "Roofing Sales Basics" and then binge away :) Far more advice in there than I give in a comment.
      Hope you crush it!

  • @swaggaa69ify
    @swaggaa69ify 2 ปีที่แล้ว +2

    I made an S Corp and all my commissions are distributed there. Then I pay myself from my S Corp via W2 income to my personal name. This is as much of a W2 salary as anybody else!

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      Great work dude! You are ahead of the game :) Nice work. I covered this topic too in this video if you're interested? th-cam.com/video/D5Vq6Tg8AXQ/w-d-xo.html

  • @topproducer201
    @topproducer201 2 ปีที่แล้ว +2

    Great point that’s often overlooked, you participate on the upside but don’t forget your share in the responsibility when the job loses money! In a 10-50/50 structure! 👌

  • @ernestfreeman6005
    @ernestfreeman6005 2 ปีที่แล้ว +2

    In your commission structures, do you differentiate between leads that are generated through cold calling versus leads that are generated by the salesman via cold calling, canvasing, etc?

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +3

      This is a great question - and a very common one I get. The answer is NO. Why? Because I do not believe in equal lead distribution. I believe reps should EARN the leads they get by performing well. That means generating their own leads or closing at a high %. Plus, it gets muddy (I've seen it happen) when calls start coming in off yard signs etc. Then the rep who is crushing it in the neighborhood ends up getting paid lower commission for inbound leads that are really the work of his/her neighborhood domination.

  • @nathanamos315
    @nathanamos315 ปีที่แล้ว +2

    Hey Adam. I am being payed a base salary as a sales rep and roofer. We are a smaller commercial roofing company. What would you say is the percentage range (in industry standards) for gross commissions for sales reps that are payed on 1099 with a base salary of less than 85k?

    • @TheRoofStrategist
      @TheRoofStrategist  ปีที่แล้ว

      Hey Nathan, watch this video to see my answer: th-cam.com/video/MYfRkIPg21U/w-d-xo.html

  • @jefferyfoust2552
    @jefferyfoust2552 2 ปีที่แล้ว +1

    Hi Adam. Always great videos full of valuable information. In the roofing industry insurance jobs can take forever to be paid. How can a roofer switch companies but still receive commissions they've earned from the company they were with? I've heard horror stories of companies owing sales 6 digits to a salesperson and the company never pays. If an insurance job is complete. The roofer switches companies. The homeowner pays 3 months later. The company has no incentive to pay the 1099 salesman. How would you handle these tough situations?

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      Hey Jeffery -- this is a tough question. You are dead right - there are a lot of slime practices out there and horror stories of reps not getting paid. As a sales rep - this can feel like handcuffs to stay put. I'll tell you how I/we handled it. Our agreement with sales reps highlighted the terms of how this was handled so it was addressed on day 1. We paid a % of the total commission for landing the sale (turning it in ready to build), a % managing the install, and a % for collecting the final payment. IF a sales rep were to leave, all of his/her commissions were paid out according the agreed upon split.
      EXAMPLE: 40% total profit sharing commission will be earned after a 15% overhead.
      1/3 of the commission is paid upon signing the deal. 1/3 for build. 1/3 for collecting.
      If a sales rep left, he/she would be paid out the appropriate commission based on WHERE the customer was left off.
      So if the rep left after the job was signed but before the build -- he/she'd get 1/3 of the total commission as soon as it was capped out.
      But that's an ideal world - and not everyone does that unfortunately. That's just my .2c :)

  • @ryanrooke8718
    @ryanrooke8718 2 ปีที่แล้ว +1

    Hey Adam
    Different topic but need some help...
    Recently had two appraisal demands denied. I feel like for both claims we exhausted all options before the demand w Itel report, uniformity, line of sight, and repair-ability tests.
    The denial letters both claim the issue is with coverage, not amount.
    Have you had any experience with this? What are the next steps, if any?

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +1

      That's a bummer dude. Sorry to hear that. If it's a coverage issue - not much you can do. I would review coverage to make sure. If there IS coverage - sounds like legal is your only recourse. if there's NOT coverage, you have no leg to stand on :(

    • @Nondualitty
      @Nondualitty 2 ปีที่แล้ว

      Reparability*

  • @bonniebrinkley7759
    @bonniebrinkley7759 2 ปีที่แล้ว +1

    I have been offered a job from a very well known company...I have never done sales before and it is commission only .....but I feel like I need a safety net for bills and living. Any suggestions for me?

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      Great question! My suggestion - you need to do what you need to do. Some people "build a parachute on the way down" by betting on themselves (as I did). Others aren't in a position to do that. You need to gauge your own needs and do what works for you. My best advice - whatever you do - focus on selling for as much time as possible so you can get traction faster.

    • @bonniebrinkley7759
      @bonniebrinkley7759 2 ปีที่แล้ว +1

      Thank you

  • @blakecassidy1449
    @blakecassidy1449 2 ปีที่แล้ว +1

    Hey Adam, great points on the commission piece. Recently our issue is getting people in the door to have those conversations. Interested to hear any suggestions and tips regarding recruitment and getting applicants in the door. We have tried a few different avenues and all have had some success but we have not found a consistent/reliable method for doing so.

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +1

      Hey Blake, "our issue is getting people in the door to have those conversations." Likely because you're using the word COMMISSION in your ads or conversation. COMMISSION or "commission only" is a dated concept for many - it screams instability and insecurity. The job must be presented (and sold) the right way. I do this by saying "performance based pay" and sell it such that the rep gets on board and can clearly communicate the comp plan to their significant other (often the source for people backing out after they say yes). I go over this in great detail in my recruiting program: How to Build Your Dream Team which is included with The Roofing Sales Success Formula (which I think you already have unless I'm crossing wires). If not, link in the description :) But I'm pretty sure I just responded to your email!

  • @joecavazos2885
    @joecavazos2885 2 ปีที่แล้ว +1

    Adam
    I purchased your training program and it is a game changer. Thank you
    My question might sound silly but what is that thing your writing on and that mirrors on the TV?

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      Hey Joe! Dude. Super pumped to have you here! Not a silly question. It's an iPad pro displaying on an AppleTV compatible TV. And a DJ computer stand as my "podium." Hope this helps!

  • @hightiersmash4578
    @hightiersmash4578 2 ปีที่แล้ว +2

    Big jobs just pay so much better in the profit sharing model

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      You are too kind. Thank you and glad to have you here!

    • @hightiersmash4578
      @hightiersmash4578 2 ปีที่แล้ว

      @@TheRoofStrategist love your videos man, totally agree on this one, except like I said I’m pretty favorable to the profit sharing model but only because my company is so honest. Frankly the reps get paid absurdly well (10% overhead 50% profit)

  • @rickygreen4305
    @rickygreen4305 3 หลายเดือนก่อน

    Anyone going to commission based job tell them day one tobe completely transparent with you on how your money will be paid to you. Do not let them dangle a carrot infront of you all year long with empty promises. Stand up for yourself ask the tough questions and make sure you are being paid for your hard work. I learned this the hard way;)
    When it comes to commission you need tobe paid promptly soon after the invoice has been paid to the company you work for. I repeat do not let them manipulate you into thinking you will receive a large bonus at the end of the year based off company performance and your performance. This is not the way, you do the job you help facilitate the deals you need tobe paid for what you bring to the table. If a company can’t be honest and truthful to you about how your bonus/commission will be paid, then don’t waste your time there.

  • @tomsnegirev
    @tomsnegirev 8 หลายเดือนก่อน

    Would this work for a siding company as well? Not much information about siding companies on TH-cam, just roofing.
    I wonder why??

  • @valatamericaneliteroofing
    @valatamericaneliteroofing ปีที่แล้ว

    What if your company sets a minimum net profit of 30% across the board and the sales rep doesn’t meet it? How much, if anything, should you pay them for:
    - a job that brings in $7,000?
    - a job that brings in $25,000?
    In the $25k example, they spent 2 weeks managing production, communicating with the customer, handling pretty much everything about the job.
    We want to be fair to them and not get so hung up on hitting the minimum, but at the same time we don’t want to set a moving target that confuses other reps.

  • @brownsugar2425
    @brownsugar2425 ปีที่แล้ว

    Hello Adam, great video, all very helpful info! I have a small roofing company and we are currently doing hybrid, salary and commission but I do a lot of the work on the sale since he's still training. However, I met a salesman from another company and he wants to come on board, interview comes and he doesn't do inspections, no roofing measurements, no estimation, no work orders, no material orders, no supplementing, no final inspections. All he does is talking to client (like when?), pick up checks and he gets 10% commission on gross sales at his current company. I am so confused by this as to how does he even do the sale? In my experience, that first inspection is essential to get the job, is when you can relate to client and ask any questions they have, here you can show your knowledge of your line of work. Now, what are the responsibilities of a salesman before before getting that deposit check? Inspection, measuring and estimation, follow up, get the sale and the deposit check? 5% for doing that seems fair.

  • @austinchittim7471
    @austinchittim7471 ปีที่แล้ว

    What about office people role and pay

  • @DrShekharPawar
    @DrShekharPawar 9 หลายเดือนก่อน +1

    good info

  • @cj-sp8ed
    @cj-sp8ed 9 หลายเดือนก่อน

    Does commission typically increase on commercial or is it the same as residential

  • @Anuarvieira88
    @Anuarvieira88 2 ปีที่แล้ว

    In my opinion the first model % of the gross makes much more sense. & also another % of the supplementation. The other model don’t make much sense. I’m in sales and still don’t like that one even though you can make more money still would not prefer that model
    Great video brother

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +1

      Glad you are all set with the model that works best for you dude!

  • @JoeLarge
    @JoeLarge 2 ปีที่แล้ว

    As our idol, Marcus S. says on pricing. (It Depends) Get numbers out there as well as factors and then they consider. Love it, Adam, it is a can of worms but now we can go fishing. Great post.

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      YES YES YES YES! You nailed it. Marcus Sheridan is one brilliant mind.

  • @nicogsarro7307
    @nicogsarro7307 ปีที่แล้ว

    How does a person getting paid commissions on the gross get compensation on supplements? Or is that not a thing?

    • @TheRoofStrategist
      @TheRoofStrategist  ปีที่แล้ว

      Great question. Different companies handle it differently. Some pay on them, some don't. It is my opinion that we SHOULD pay on them.

  • @michaelcimino1141
    @michaelcimino1141 2 ปีที่แล้ว

    Hey Adam off the wall question. How do you know where the best place to start a roofing company is. Also I would love to talk with you personally. I’m a veteran that just got out of the military. I’m in a internship right now with FBC roofing in Utah; learning everything I need to know about the roofing industry. it ends in 3 months, trying to get a knowledgeable third party to answer some big questions that could possibly lead me in the right path to a big decision. Thank you for your time

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      Hey Michael! First - thank you for your service! To answer your question: The best place to start a roofing company? My opinion - anywhere you are. The PLACE isn't the problem - it's the preparation, knowledge, and plan to succeed that's most important. In terms of speaking with me 1-on-1. Your best bet is to catch me at a conference in person. I'll be at D2D Con in SLC Utah this January :) Outside of that, I've had to make a difficult decision due to extremely limited availability - I am only able to accept calls for product/program questions, running live sessions for the Pitch Pro Movement, and my 1-on-1 clients :(

    • @michaelcimino1141
      @michaelcimino1141 2 ปีที่แล้ว

      @@TheRoofStrategist thank you sir! I know your a very knowledgeable man and I know you wouldn’t of said what you have said with out having the wisdom to back you up. Wish you best of luck in your business of mentoring young roofer minds to be successful. Yours truly - Michael 🤙🇮🇹

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      @@michaelcimino1141 You bet my dude! Happy to help. Focus on learning the ropes - the ins and outs - "earn while you earn." Then decide IF you want to start one. You also may want to watch this video before you do: th-cam.com/video/wg3z1CDxZY8/w-d-xo.html

  • @menziessing11
    @menziessing11 2 ปีที่แล้ว

    Hi Adam, I’m 22 from Chicago. My friend recently asked if I wanted a roofing sales job down in Orlando with a new flourishing roofing company. First 5 months rent is paid off by the company and I’ve always wanted to move to a warmer climate so it is a win win. I’m moving down the 28th and I am so excited especially after watching a lot of your videos (you’ve already helped me so much even before my training). I was wondering what direct advice you would have for me if you could just put it into one sentence. Again, love your channel it’s so informative. Excited to hear back

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +2

      CONGRATS man! Super exciting!!! I'm really pumped for you. Chicago --> Orlando will be a fun move for you. My 1 sentence advice for you is this: Learn the Roofing Sales Success Formula and let it be your guiding mantra as you continually level up. And watch this 3 part series: th-cam.com/play/PLZ20p_mXvgkXCtkzwHpLRHHhsHVj5PWus.html Wishing you the best, Sam!

    • @menziessing11
      @menziessing11 2 ปีที่แล้ว

      The Roof Strategist thank you Adam!

    • @Nondualitty
      @Nondualitty 2 ปีที่แล้ว

      Work for Best Choice Roofing there are 2 branches in Orlando

    • @carloschavez4174
      @carloschavez4174 9 หลายเดือนก่อน

      Any updates on how it went with that company?

  • @churbum9907
    @churbum9907 2 ปีที่แล้ว

    Thanks bubba

  • @Anuarvieira88
    @Anuarvieira88 2 ปีที่แล้ว

    Awesome brother

  • @adamjurrens1897
    @adamjurrens1897 2 ปีที่แล้ว

    Good to see you. I still ride a Donkey....lol

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      😂 One day I'll understand what that means.

    • @adamjurrens1897
      @adamjurrens1897 2 ปีที่แล้ว +1

      @@TheRoofStrategist : I just say that because one of your videos you said it doesn't matter what you drive when you go to a house to make a sale...lol.. Minnesota here

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว +1

      @Adam Jurrens 😂😂😂😂😂😂 Now I get it! And the joke is even funnier. Run whatchya brung brotha! If you have a ladder rack for your donkey, you're going to kill it!

    • @adamjurrens1897
      @adamjurrens1897 2 ปีที่แล้ว

      @@TheRoofStrategist : If your ever in Minnesota, look me up. I'm a salesman/project manager for Peak Remodel and Design Solutions in Rochester. I'll show you around Brother.

    • @TheRoofStrategist
      @TheRoofStrategist  2 ปีที่แล้ว

      @@adamjurrens1897 appreciate the hospitality!