new business

Hello my name is Chris, I've been in the construction industry for 15yrs. I had a question that I think I have the answer to but need some help. Most roofing companies that I have worked for paid the salesman 50% of profit and the company kept 50% while the office took 10%. My question is what exactly is in that 10% office cost? Any help would be appreciated

Stormy where do you live

In CA when I was still roofing salesmen go 10% on residential and 2% on commercial and when times where good they made lots of money.

10% office cost would be to pay for all the employees in the office and any utility bills and things of that nature.

Ya you better whatch thaat office that 50 50 and 10 dont add up the reason being is that that 10% comes off either the cost of the job or the total sale first. which means your 50% is no where close.

Like Steve says no matter who you sell for or what they say they pay i have found it all boils down to about 10% of the gross sale is the average.

I have even seen companies say 50% of the profit -- then say the profit was 30% of the gross sale so your pay would be 15% of the actuall profit.

Or take the 10% of the gross sale out of the profit - then split 50 -50 this is the most common

Or take 10% off the cost to do the job then 50 -50. This is very uncommon but happens if you are a good salesman.

Thanks Steve and minnesotaroofin, I am in wichita, ks at the moment Steve.

Texas - Pay salesman 10%. If base price for the system is $100/SQR and the salesman sells it for $110, he gets 1/2 of the amount over base, or $5/SQR + his 10%.

As far as 50 50 i did get paid just that 50% of profit. See alot of companies storming normally from what i heard (key word) there is a deduction for all sorts of crap and yes your back to 10 to 15%. To many con mans in this game. Heck when i brought in my leads and i did that alot i would get 60% if you dont beleive i will give you a number to call and ask.

Others go off a par base like rof guy said. par is 5k for a roof you sell it for 6k you made Another 500

50% of the profit sounds a lot but actually you end up with only 11%-12% of the total sale.I think 10% is better.You bring in the first check get your commission and move on without worrying about anything else.