100% commission sounds great for cash flow, but in landscaping, it almost always backfires.
Here’s why, along with what actually works:
- Bad Incentive Structure: Reps paid solely on commission care about closing volume, not margin. They’ll under-quote jobs or over-promise on timelines just to land the deal, leaving your crews to deal with the headache and destroyed margins.
- Turnover: Top sales talent rarely takes a 100% commission gig for a mid-sized contractor. You usually end up with people who churn fast or treat your leads like a side hustle.
If you bring on a rep, keep them tied to profit, not just contract size:
- Base + Commission (Standard): A modest base salary to cover admin/site visits, plus 3%–8% on gross sales.
- Margin-Based Commission: Higher payout (e.g., 10%–15%), but calculated strictly on gross profit margin. If they price it too cheap, their payout drops.
- Split Payouts: Pay 50% when the contract/deposit is signed, and 50% after the job is finished and paid in full.
If you don't have the capacity for another crew lead yet, selling a ton of extra work right now might just create a bottleneck in production.
Before taking on a sales rep's overhead, consider:
- Pre-qualifying over the phone: Filter out tire-kickers and set job minimums before driving out to estimate.
- Hybrid Role: Have an experienced crew lead do site visits/estimates a couple of mornings a week and work field operations the rest of the time.
Bottom line: If you hire someone, you must own the pricing formula. Give them set per-man-hour rates and material markups so they are just plugging numbers into your system, not guessing on the fly.
