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.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1negotiating a flat fee per closed job
- 2switching to a tiered commission structure
- 3doing the cold calling personally for an hour a day
- 4offering performance-based tiered commission structures
In their words
Unedited, most upvoted first, each linked to the thread it came from.
“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 ↗
“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 ↗
Where this came up
People with this problem also raised
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