Realistic Income Potential for a Roof Salesman


#1

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.


#2

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!


#3

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.


#4

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.


#5

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


#6

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?


#7

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.


#8

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.


#9

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.


#10

[quote=“RoofYourWorld”]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?[/quote]

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.


#11

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?


#12

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.


#13

[quote=“BAMBAMM5144”]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.[/quote]

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.


#14

[quote=“dstew66”]

[quote=“BAMBAMM5144”]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.[/quote]

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.[/quote]

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.


#15

[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]


#16

A salesperson who works more than he watches tv can certainly earn more than 100k. You will have problems if your ass gets too attached to your ez chair.

There are many ways to work commission splits, from a percentage of gross sale to a percentage of gross profit. If you are doing a majority of the work there is no reason you shouldn’t be able to make $1,000.00 per job and often times much more if the file is worked properly.

There are so many variables that you have to deal with. Acceptance of what the insurance gives, supplements, estimates are they accurate or not??? To make a long story short, just because some make 60% of a contract that is underpaid by the insurance it might be better to work for a company and make 30% of a correctly supplemented contract that is paying correctly.

Many folks on my staff have surpassed the 100k mark and will continue to do so on a regular basis.


#17

If your in a storm zone and your company has a decent standing then $100,000 is definitely a possibility.

As its been said experience is the ingredient for some ridiculous insane numbers.But to hit $100,000 you need some motivation and drive.From your post (OP) it sounds like you could be on the right track.I met a 7 figure salesman that works for a 70 million dollar company.That was an exciting time for me.To most people he was a man but to me he was Elvis.LMAO

Basically it comes down to you get what you give.If you hang around the office chasing secretaries and celebrating every night down at the bar celebrating the fact that you feel you have hit the big leagues then your numbers will be pretty low.

Car sales and roofing sales are completely different.Yes your selling them a necessity but people are willing to buy a car that has some problems.They are not so willing to sign a contract with someone for home repairs with someone who does not know their products,does not answer the questions they ask or simply lacks confidence.

I have seen posts here on this site about part time roofing salesman and was confused.Roofing sales and contracting is almost a 24/7 adventure.

Stay focused by keeping your eye’s on the prize.Don’t become discouraged because you lose some.Roofing sales IMO is an art.Not just anyone can sell work consistently.

Some of these have already been mentioned.This is my personal list of what is needed for an up and coming sales person is;

1.Honesty:Don’t lie just to make a sale.Be truthful.If you say you will.,then do it.If you say you are then be that person your describing.

2.Integrity; Get the job done, when you promised, and how you promised.

3.Motivation;Be on time.Be ready and willing to knock them doors and pursue your goals on your own.You have to want it.You have to want to learn.

4.Knowledge;Learn components,accessories,terms,functions and capabilities,processes of roof systems.

5.Confidence;Believe in yourself,products and the company you work for.

So if you are motivated enough to pursue this position you wish to fill.,Have the desire to always stand firm with an honest approach,possess the integrity to do things correctly when you promised and how you promised and have the knowledge of what you are selling then that will boost your confidence and contribute to your abilities to come close or exceed that $100,000.00.

If you sell 100+ jobs that average $1,000 after the split.,then you are at your $100K.It can be done because I did it in OKC in 60 days.But I have those attributes that helped me make that.

Anyone could sell 1,000,000 worth of work.But if those figures should have been 1.6 million or more then your not worth the title.

Instead of putting $100,000 first on your list of things to do.Try making a realistic goal of $50,000 your first year.Become a salesperson who is honest who is motivated.,who has knowledge.,who has integrity,and is confident in ones self and maintain those qualities then that $100,000 will be a breeze.


#18

Depends on the company you work for.

2011 I made 95000. Thats working for a OC Platinum Preferred contractor but we sell alot more than roofing, insulation, chimney, windows, gutters etc. ALL company provided leads and we sell at average 55% GP 10% insurance work. Average commission percentage around 14% based on sales price.

If you are generating all your own leads I believe it is entirely possible to break 100k but I would demand more than 10% on gross. Either get a profit split or proper bonus program for getting leads on your own. Now because insurance work generally pays less I could understand a lower pay.


#19

Hey there guys,

                      I appreciate all of the knowledge. Been with the company for a week and a half and got my first contract today. For a 40 square roof, should pay about 800-900. I live in a extremely volatile area as far as weather, in the South East. I love the job! it allows me more time with my daughter, and I love helping people fix their homes. I agree i should not worry about the money i should worry about satisfying the customer and the money will start to roll in. My company is A+ BBB and 10/10 service magic. A great group to work with. I see a very enjoyable career ahead of me, with so much potential. Already had the door slammed in my face a few times, and had the police ask me to leave the neighborhood i was working.  But hey i survived in a war zone im sure i could survive this  :D . Again thanks for the knowledge and best of luck out there! MERRY CHRISTMAS!

#20

What area are you working in?