Said It Here

How to structure commission for lead generation contractors

Deciding whether to base commissions on total job revenue or gross profit prevents home-service lead gen partnerships from lasting long term. Without a clear definition, you risk spending weeks training salespeople who ghost immediately or struggling to find a fair split that works for both sides.

Overview
People affected2 accounts across 1 forum
Workarounds found4 items attempted
Community agreement2 total upvotes

What people tried

Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.

Found another way around this?

Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.

  1. 1
    negotiating a flat fee per closed job
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  2. 2
    switching to a tiered commission structure
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  3. 3
    doing the cold calling personally for an hour a day
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  4. 4
    offering performance-based tiered commission structures
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Tried another approach not listed above?+ Share your workaround ↑

In their words

Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.

r/smallbusiness2 people · September 2026

“we never clearly defined whether that meant 6.5% of the total job or 6.5% of his profit.”source ↗

“For contractors or people who do home-service sales/lead gen: what would you consider fair here?”source ↗

“I’m trying to find a structure that works for both sides long term, not just win this one job.”source ↗

woptoberbaby · r/smallbusiness · 1 upvotes

“Does anyone decent take commission-only for 30 days, or am I only going to attract people who vanish after a week? That's the real fear. I spend two weeks training someone, they book nothing, they ghost, and I'm back to zero having burned the time I didn't have.”source ↗

mynamepookie · r/smallbusiness · 1 upvotes

Where this came up

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