Im just getting in commercial roofing and I am wondering what do you pay your salesman if they get a big job? Some jobs i bid but I have a manger and he helps out on half the job. Ive done residential for years and I pay 40-50% on net profit on residential. Some of these jobs I'm going to get into are $200,000- up to $800,000 and I'm responsible of course if god forbid they ever leak etc. I just want to be fair and not shoot myself in the foot at the same time.
Some pay a straight commission, anywhere from 2-10%.
Personally, I would never do that. Anyone can "sell" work cheap, and leave you holding the bag.
The fairest system I've ever seen is paying them a percentage of net profit, equal to the net profit.
IOW, if the job nets 10%, they get ten percent of the profit, or 1% of the job.
If the job nets 30%, they get 30% of the profit or 9% of the total job price. I would cap it at 30 or 35%, which keeps them from getting too greedy, and rewards you for knocking it out quick, and for holding the liability.
The system rewards GOOD sales, not cheap prices.