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

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.

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

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%.

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

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.

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.