Sales Rep Commission Calculator
Calculate sales rep payouts using a sliding scale that rewards reps for holding strong profit margins, not just closing cheap volume.
Total cost of materials, labor, and permits. Excludes overhead.
Stop Paying for Unprofitable Jobs
A massive mistake contracting businesses make is paying sales reps a flat commission rate (e.g., a flat 10%) regardless of the final price. If you do this, your sales reps have zero incentive to negotiate. They will instantly drop the price to close the deal quickly, taking away from the company's net profit while protecting their own volume.
The Sliding Scale Solution
To align your sales team with the financial health of the business, you must pay commissions based on Gross Margin. This calculator models a standard sliding scale used by top 1% contractors:
- 50%+ Margin: Rep earns 10% of total revenue. They held the line on price.
- 40% to 49% Margin: Rep earns 8% of total revenue. They discounted slightly to win.
- Below 40% Margin: Rep earns 5% of total revenue. The company barely makes money, so the rep takes a hit.
This forces your sales team to learn how to sell value, not just compete as the lowest bidder.
Equip your reps to sell value.
If your sales reps only have a tape measure and a generic brochure, they will be forced to compete on price. Give them CurbClose and let them sell visually.
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