How to Pay Roofing Sales Reps Commission Only (The 10/50/50 Split)

One of the most terrifying leaps a roofing company owner must make is transitioning from selling every job themselves to hiring a dedicated sales team. The immediate question that arises is compensation. Many new owners, desperate to attract talent, offer a base salary plus a small commission. This is almost always a fatal mistake. In the exterior remodeling industry, offering a base salary attracts complacency. It attracts "order takers" instead of hunters.

If you want to scale your company aggressively and attract absolute killers who will knock doors, hunt leads, and close $30,000 deals at the kitchen table, you must know how to pay roofing sales reps on a commission-only basis. Specifically, you must understand the industry standard: The 10/50/50 Split. Let's break down exactly how this mathematical formula works, why it protects your company from risk, and how you can convince top-tier talent to work for "free."

To attract top talent, you must show them how easy it is to sell your product. You show them CurbClose. You tell the recruit: "You don't have to be a smooth-talker. You just take a photo of the house with this iPad, the AI renders the new roof, and the homeowner will practically beg you to sign the contract."

When a prospective sales rep sees that they can generate a branded visual PDF proposal in 60 seconds and visually overwhelm the homeowner, they realize how easy it will be to make $200,000 a year working for you. The software becomes your greatest recruiting tool.

The Danger of the Base Salary

In exterior sales, the rejection rate is incredibly high. Door knocking is brutal. Sitting through 2-hour kitchen table presentations only to be told "we need to think about it" is exhausting. If a sales rep is guaranteed a $50,000 base salary regardless of their performance, human nature dictates that they will eventually stop pushing through the pain.

They will stop knocking on that extra street. They will stop fighting the price objection at the table. They will accept the stall and go home, knowing their paycheck is secure. A commission-only structure aligns their survival with the company's survival. If they don't sell, they don't eat.

The 10/50/50 Commission Split Explained

The most universally accepted and fair compensation model for a 1099 independent contractor in the roofing industry is the 10/50/50 split. It is based entirely on the Gross Profit of the job, not the top-line revenue. This forces the sales rep to protect the company's margin.

• The 10% Overhead Deduction: Before the profit is split, the company deducts 10% of the total revenue right off the top to cover fixed overhead (office rent, CRM software, general liability insurance, marketing).
• The 50/50 Split: The remaining Gross Profit (Total Revenue minus Overhead minus Material/Labor Costs) is then split 50/50 between the company and the sales rep.

Let's look at the math on a $20,000 roof sale where the material and labor costs were $10,000:

• Total Revenue: $20,000
• 10% Company Overhead Deduction: -$2,000
• Material & Labor Costs: -$10,000
• Remaining Gross Profit: $8,000
• Sales Rep Commission (50%): $4,000
• Company Net Profit (50%): $4,000

In this model, the rep just made a massive $4,000 commission on a single roof. This is why top producers refuse to accept salaries.

Why Top Producers Demand Commission Only

A true sales killer looks at a $50,000 base salary as an insult. They know their worth. A rep who can close two roofs a week (roughly 100 roofs a year) on a 10/50/50 split can easily clear $250,000 to $400,000 a year in personal income.

Commission-only structures weed out the weak immediately. The people who apply for a 100% commission job are confident in their ability to close. They are the exact psychological profile you want sitting at the kitchen table representing your brand.

The Draw Against Commission

The only valid concern with a commission-only structure is the onboarding period. It can take 3 to 4 weeks for a new rep to close their first deal, get the roof built, and get paid. To prevent them from starving during training, many companies offer a "Draw Against Commission."

You might pay the rep $1,000 a week for the first 4 weeks as a loan (a draw). When they finally close their first big $4,000 commission check, the company recoups the $4,000 draw they advanced. It mitigates the immediate financial panic for the new hire while keeping the ultimate compensation tied entirely to performance.

Equipping Reps with the Right Tools (CurbClose)

You cannot hire a commission-only rep, hand them a paper folder with a few shingle samples, and expect them to succeed. If they are working for free, you must equip them with the absolute best technological weapons available so they can close deals at a high percentage.