» Realistic Income Potential for a Roof Salesman

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  Post subject: Realistic Income Potential for a Roof Salesman
PostPosted: Sat Dec 17, 2011 2:19 am 
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Hello,
I am new to the industry but have over 4 years in auto sales. And I am an Army veteran. I started with a roofing company 2 days ago, and was told that i could make potentially 100k a year. I am an individual who does everything to the best extent possible... With that said i knocked doors all day today in a neighborhood with major wind damage and hail damage. I got 4 inspections set up for tomorrow. My sales manager said that at that rate i will make close to 4k before years end. My question is essentially how much could i expect to earn with this mindset and motivation. Because auto sales is no where close to this, And it just sounds "TOO GOOD TO BE TRUE" any input would be great! Thanks and God Bless.


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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Sat Dec 17, 2011 3:10 am 
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Thank you for your Services you provided our Country.

We don't have all the questions for the answer. $100,000 a year (based on 50 weeks in a year) equals $2,000 a week or $400 a day average based on a five day work week.

How much are you making for commission?
Percentage on Profit...
How much Profit does your company make?

Percentage of Gross...
How much are the average sales?

How much of your time do you need to spend at each house/ sale?
Storm damage so Adjusters are involved, do you meet them of someone else?
Do you do the Estimate or is it done by someone else? If you do and there is a mistake, Profit is low- or high do you get rewarded or penalized?


You can answer all these questions on your own, with the details provided by your employer. Good luck!


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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Sat Dec 17, 2011 6:07 am 
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I believe it depends on two primary things. What type of commission program you're on and, assuming you're on a profit split program, how profitable the company is. You can have a great profit split set up but if the company is selling their insurance jobs at $200 per square, you're not going to make much money.

Assuming your commission program is competitive with industry standards and you're working for a competent company, $100,000 is most certainly realistic.


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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Sat Dec 17, 2011 2:02 pm 
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You question really needs to be directed at your boss and/or the Owner.

IF the company is serious about your potential income then there should be no issue with them fully disclosing the compensation plan.

In the future, this might be something you address before you start the job.

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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Sat Dec 17, 2011 3:54 pm 
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Hello all, and thanks for your responses it is a 10% commision and the company is ranked number one by my city. I did address all of theae questions to the owner. And that was his answer "that 100k is easily achievable" I just wanted some outside opinion. Another salesman I talked to today said he slacked last year and didn't work for four months and made about 70k. Also he said that there is a goodchance I could make 3k before years end. I have 5 inspections today with ajusters. Thanks for all of the advice


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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Sat Dec 17, 2011 4:08 pm 
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10% of the sales price or of the job's profit?

Do you get paid with a contract or at completion of the job?
-If paid at the contract, how are change orders handled in terms of payment?

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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Sun Dec 18, 2011 5:05 am 
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I can't imagine it would be 10% of the job profit, would be difficult to impossible to keep good salespeople with that kind of program.


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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Sun Dec 18, 2011 9:25 pm 
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Yea, I guess I'm thinking about the commercial/industrial side where a large majority of companies have a commission structure based on the job's profit, not the sales amount. This is where the average job amount would range from $70-100k and %35+ profit margin.

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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Mon Dec 19, 2011 1:56 am 
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RoofYourWorld, I believe a high percentage of Residential is done via a profit split as well. My point was the profit split is substantially higher than 10%. With insurance work, you're usually looking at something like 10/50/50 which means 10% taken off the top to cover office costs with a 50/50 profit split after that. I can't imagine paying a straight commission, it provides the Sales Rep very little incentive for being overly concerned about the profit margins.


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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Mon Dec 19, 2011 2:53 am 
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RoofYourWorld wrote:
10% of the sales price or of the job's profit?

Do you get paid with a contract or at completion of the job?
-If paid at the contract, how are change orders handled in terms of payment?


I have seen 10% before.But like A.D said it that 10% isn't a very motivating factor.And if someone is snookered into the 10% chances are they are only worth that 10%.That means they are not worth any of remaining 40% for sheer stupidity.

A.D is correct in saying it is typical of a 10/50/50.That is 10% to the house (Overhead) then 50/50 split after labor and materials.An excellent salesman can and generally gets a 5/50/50 giving him 5% of the houses take because of his abilities.

On the 5/50/50 and the 10/50/50 when the contract is signed and reviewed I pay 35% of my projected margin.And if someone is dumb enough to go the 10% then 5% is paid after the projection.Then the remainder is paid after the job is complete.,providing no errors are found.

The reason for not paying the entire amount is because of possible error on the salesman's part.That 65% or the 5% is there in case they screwed up on measurements,layers etc.That insures me that I don't have to eat alot of their errors.

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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Mon Dec 19, 2011 4:22 pm 
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Authentic_Dad wrote:
RoofYourWorld, I believe a high percentage of Residential is done via a profit split as well. My point was the profit split is substantially higher than 10%. With insurance work, you're usually looking at something like 10/50/50 which means 10% taken off the top to cover office costs with a 50/50 profit split after that. I can't imagine paying a straight commission, it provides the Sales Rep very little incentive for being overly concerned about the profit margins.


That makes sense - especially considering the average residential project is a lower dollar amount that a commercial project.

What is the average price for projects - more or less?

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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Mon Dec 19, 2011 4:32 pm 
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My salesman pay is really simple. I don't know what you guys will say about it, but the salesman likes it and he makes decent money.

50% of profit for all leads he gets on his own and sells.

25% of profit for company provided leads he receives and sells.

He is responsible for selling, collecting and correctly measuring. Any missed measurements come out of his profit.

I handle all the coordination with materials, dumpsters and etc. He coordinates with the customer.


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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Mon Dec 19, 2011 7:22 pm 
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BAMBAMM5144 wrote:
My salesman pay is really simple. I don't know what you guys will say about it, but the salesman likes it and he makes decent money.

50% of profit for all leads he gets on his own and sells.

25% of profit for company provided leads he receives and sells.

He is responsible for selling, collecting and correctly measuring. Any missed measurements come out of his profit.

I handle all the coordination with materials, dumpsters and etc. He coordinates with the customer.


From a salesman's standpoint, I would spend twice as much time generating my own leads and 1/2 as much time on company provided leads (if I worried about them at all). Just makes sense that I am going to spend more effort producing twice the income with half the work. But, I'm not one of those guys who HAS to sit around and wait for the phone to ring.

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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Mon Dec 19, 2011 9:10 pm 
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dstew66 wrote:
BAMBAMM5144 wrote:
My salesman pay is really simple. I don't know what you guys will say about it, but the salesman likes it and he makes decent money.

50% of profit for all leads he gets on his own and sells.

25% of profit for company provided leads he receives and sells.

He is responsible for selling, collecting and correctly measuring. Any missed measurements come out of his profit.

I handle all the coordination with materials, dumpsters and etc. He coordinates with the customer.


From a salesman's standpoint, I would spend twice as much time generating my own leads and 1/2 as much time on company provided leads (if I worried about them at all). Just makes sense that I am going to spend more effort producing twice the income with half the work. But, I'm not one of those guys who HAS to sit around and wait for the phone to ring.



This is what I want. I would rather be running the company provided leads on my own than having salesmen doing it. I offer it there as a cushion so he knows there are leads to fall back on when he hits a cold streak.

It also helps him get into neighborhoods to canvass that he might not have thought of otherwise.

Mine is still more complex than that, but it works for us.



2 users likes this :
LowCarolina (Wed Dec 21, 2011 4:11 am), Roofmaster417 (Mon Dec 19, 2011 11:43 pm)
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  Post subject: Re: Realistic Income Potential for a Roof Salesman
PostPosted: Mon Dec 19, 2011 11:48 pm 
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[quote="Authentic_Dad"]I believe it depends on two primary things. What type of commission program you're on and, assuming you're on a profit split program, how profitable the company is. You can have a great profit split set up but if the company is selling their insurance jobs at $200 per square, you're not going to make much money.

Assuming your commission program is competitive with industry standards and you're working for a competent company, $100,000 is most certainly realistic.[/quote]


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