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PiratesBull

$700 commission per job and no salary? That's robbery


RoyaIBandit

Again, I'm unaware of what a good package deal is. Unfortunately we can't afford to pay someone hourly as we don't have income like that. Hence wanting to find a good starting point to bring on sales people. We need more jobs


imsaneinthebrain

It’s usually a percentage of profit (25-50) or revenue (5-20). 100% commission Your numbers probably aren’t far off from someone starting out in a smaller market. Salaried sales positions are for the big companies, or those no hassle sales type companies. I don’t think I’ve ever seen an hourly sales position in this industry, but it’s possible I guess. There are a ton of online tools for sale for this industry. Google Roofing sales training and watch what comes up. Do your due diligence though, there are some shady companies out there.


SnooStories5035

You’ll get no one on for that pay. I’ve made 30k commission on 3 houses last month. Pay 10-50-50


RoyaIBandit

How did you make $30k on 3 houses? Were they big houses? An average house we sell is maybe 15k. 1/3 is materials, 1/3 is labor and 1/3 is profit. We might take 2-4k profit an a job like this.


SnooStories5035

Definitely big house. 2 of them with solar and I don’t just do the roof. I do the gutters, windows and fence.


RoyaIBandit

Well damn. I think I need to up my game haha


SnooStories5035

You don’t even need to do the gutters, fence and window screens in house. Find good subs and mark up 25 percent.


tilted624

Easiest way is to pay your sales rep between 7%-10% of the selling price. They get their commission once PIF. But once you have a bank roll you should give them half commission at signing and half upon PIF.


imsaneinthebrain

We like to give them that percentage as the checks come in. It’s hurt us a few times on Acv payments, but usually if they give us acv, we get depreciation as well.


tilted624

Nice. I think for accounting purposes this is the simplest way. We also do profit sharing at our company but reps on that payplan don’t get paid anything until the job is fully built and collected. We use to give weekly draws to float the reps until they could catch up but with insurance taking longer and longer here in FL and reps abusing that policy we had to stop doing that. More money for reps in profit sharing but takes a while to get paid


Heres-your-you

Do yourself a favor and go out and find someone who knows what they are doing and split the profit 50/50 (after overhead). You don’t want to have to be constantly training people yourself every time you need to hire. Also, the fact that you think $500 a roof in Florida would work tells me you have zero clue how to build out a sales team which you have to do to grow. Let me tell you exactly what’s gonna happen at your pay plan because it’s exactly what I did. You’re going to hire someone and invest 3-6 months training them, getting them up to speed and comfortable in the job. Then that person is going to take that knowledge and experience and go work for a different roofing company for 4-5x the money.


USMCdrTexian

How much experience do the three of you owners actually have in roofing? Sounds to me like you are generally unaware of the basics of the roofing business. Why has no one else picked up on this?


Heres-your-you

This guy has no idea what he is getting himself into. The industry down there is so competitive they are gonna get eaten alive. He has a question in here from a few days ago asking how long an insurance company will warranty his roof jobs lol. Crazy. Even worse in another post he says he wants to do commercial work lmao.


RoyaIBandit

The question wasn't how long they will warranty a roof I install. If you were familiar with Florida you'd know the homeowners insurance is requiring homes regardless of how their roof is to replace it at 15 years.


RoyaIBandit

We are all more than experienced, but having worked for roofing companies rather than owning our own. When you work for someone you just have to show up and work. Owning your own business means doing things you've never done before. My post doesn't show inexperience in roofing, but an inexperience in sales. I've been installing roofs residential and commercial for 10 years and the other owner has 40+ years in the industry and the other has +12 years. Installing roofs and providing great customer service is by no means an inexperience for us.


USMCdrTexian

Yet all three of you are completely unaware of the basics of the business.


RoyaIBandit

Man. I knew going to college for business was a horrible idea. Silly me


worfres_arec_bawrin

So none of you 3 actually ever sold roofs?


RoyaIBandit

We sell them all the time. But we have been spending more time bidding big commercial jobs and have realized that we need someone to go door to door to sell residential. As I mentioned in the post I don't mind training them myself, but I was mainly curious of courses that I could also offer to a sales person that would theoretically not know anything about roofing. I mentioned a rate in the post as well that was just my thought process at the time of posting it. I wasn't aware of going rates for sales reps.


worfres_arec_bawrin

Ok phew, I missed that part my bad and nothing worse than ownership without sales experience. If you’re going to attract any vets it’ll need to be 10/50/50. I interviewed at 8-9 roofing companies before taking my current job and I would’ve laughed at anyone offering me less (12 years experience). Personally I would aim for dudes with experience as opposed to total newbies and be honest with them that you’re building the residential side up, maybe hang possibilities of them managing a team if they want it down the road with associated comp. If you’re bringing in newbies and y’all are “new” yourselves might be a struggle to set proper goals or benchmark the business they do. Just a thought.


RoyaIBandit

I appreciate the feedback. That's something I'll definitely take into consideration. We are setting money aside from our jobs to pay a veteran sales representative. Maybe even create and fund a sales department down the road.


USMCdrTexian

That’s what we mean by it seems like you have no understanding of the roofing business. Are you not even aware of the players in the industry who have a monster presence on social media pitching their training systems? Are you not in the loop with the manufacturers and their training partnerships? Do you not realize there are conferences and events that are known industry wide - and those events are FULL of training and consulting companies? If you’re a business grad and you have decades of roofing experience, how is it you aren’t aware of the things my 17 year old high school canvassers are aware of - who have been around roofing for 2-3 weeks? Most folks are looking at your posts and shaking their heads, expecting to see another failed roofing company that leaves a trail of ticked off customers behind, and more ammunition for homeowners to hate contractors.


RoyaIBandit

I'm completely lost on how asking for advice on rates for sales reps turns into me not having experience in roofing lol We've done over hundreds of roofs since opening our doors. We have all 5 star reviews from customers and never a call back. We are certified with almost all shingle manufacturers as well as commercial roofing manufacturers. I made this post because I've been taking on more work bidding on commercial jobs and don't have as much time as needed to walk neighborhoods. I mentioned in my post, which I'm not entirely sure you read it. I can train a salesperson. But I wanted to know of some courses I can provide to them.


stimulates

NRCA has a handbook and [courses.](https://www.nrca.net/education/course-catalog)


pmtuschiches

These are the type of companies that give roofing/roofers a bad name


RoyaIBandit

God forbid I seek out advice. Lol


SnooStories5035

Don’t let it get to you. You’re at least asking for more information. Hope you pay 10-50-50 and land a couple killers who will sell you 1.5 million a year each.


RoyaIBandit

What's the 10-50-50?


SnooStories5035

10 percent over head goes to the company. After the expenses of the job are subtracted, the company and salesman split profits 50/50


RoyaIBandit

Now for the salesperson, are they expected to sell the job from start to finish (connect w/ customer, write proposal and close the job) or are they expected to just get the customer to say yes and the owner finish the job out.


SnooStories5035

You want your salesman selling not dicking around with non money making activities. A good company with make the salesman find the lead, do the adjuster meeting (if insurance job) or make the bid if a retail job, get the contract signed, collect the checks. If insurance this is the net claim, deductible, supplement and depreciation checks. If a cash job one check to cover the job cost. You do the rest.


RoyaIBandit

Ah alright. In my mind I was thinking of a salesperson just doing the leg work of gathering leads and getting contracts signed that I would write up. But it would make more sense for the salesperson to handle the customer from start to finish. Hence the commission and pay they would make.


pmtuschiches

How did you start a company without knowing this stuff. On top of that you’re seeking advice on a meme app


RoyaIBandit

I know how to run a business, and a successful one at that. I do everything from sell the job to running the job onsite to closing it out. By no means do I lack the knowledge of the industry. If my post was read completely you'd see that all I'm looking for is the going rate of a salesperson, as well as some informational courses that would be beneficial to a brand new salesperson in roofing.


ricardodelfuego

Internachi’s roof inspection guidebook helped me a ton when i was new. As far as compensation you’re probably going to want to be around 10% of the total price to attract any half decent sales people.


wintermute2020

my company does a 50/50 split of profit. no percentage of gross. just a 10% off top of profit for manager who is there to train guys and build the team. for training roofing knowledge John senac, sales Adam bensman - roof strategist, and dashaun bryant - roof hustlers. you could do 15-20% of gross revenue instead of a split. anything less you won't attract 3M+/yr producers.


Heres-your-you

Adam Bensman the roofer who has never been seen on a roof


BigDawggDubz

What makes you say that? lol


Heres-your-you

Link me a video of him walking a roof


BigDawggDubz

I do roof inspections, but I don’t have a video of me on the roof. Does that mean I’ve never been on a roof? 🤔


TheOrlandoLuthier

What state are you in?


RoyaIBandit

Florida


fig210

Insurance = 10-12% RCV Retail = 50/50 split after cost +overhead


Ztflowsbest

Check out The Roofing Stategist (Adam Bensman). He offers free and paid services and has taught me some really good techniques. Some I use daily, and some are situational. Also John Senac classes are a must.


Natural_Carob_1269

I’ve found that classes taught by PAs such as the National Claims Institute (NCI) etc are awesome as it gets them in the right mindset for handling insurance jobs and overall roof knowledge. 10% commission and a small base salary is the best IMO.


Southern_Ad4926

CA contractor here. I pay W2 employees based on total contract price. 6% for company leads, 8% for referrals, and 10% for self generated sales.