Commission on Referrals and Repeat Customers: Set Rates That Stick

Referrals and repeat customers convert at 3x the rate of cold doors with half the sales time. Paying the same commission you pay on cold-knocked deals overcompensates reps and starves the marketing budget that generated the referral. Here is the rate structure that keeps everyone fair.

The Logic Behind Lower Rates

A cold-knocked deal requires: 25 to 50 doors to get an inspection, 30 to 60 minutes to build rapport, full inspection, full pitch, handling objections, likely a follow-up visit. A referral deal: one call, one visit, signed. The work is 20 to 40 percent of a cold deal. Commission should reflect that.

Rate Structure

SourceCommission RateRationale Cold-knocked door100% of standardFull work from first contact to close Inbound lead (call-in, form)70% of standardCustomer sought company out Customer referral50% of standardWarm intro, trust pre-built Repeat customer (under 12 months)30% of standardExisting relationship Repeat customer (12+ months)50% of standardCold but known name Company-generated lead (paid marketing)60% of standardMarketing paid for the lead

Definitions That Prevent Disputes

What Counts as a Referral

A referral is a homeowner who contacts your company because a specific current or past customer told them about you. Requirements:

• Referring customer''s name captured in first contact
• Referring customer confirms the referral if asked
• New homeowner is not already on your lead list or in an active pipeline

What Counts as a Repeat Customer

Same physical address + same homeowner name (or spouse) as a prior completed install. Not counted as repeat:

• New owner at a previously serviced address
• Same customer at a different address (treat as referral or cold depending on source)

What Counts as Company-Generated Lead

Any lead where the company spent marketing dollars: Facebook ads, Google Ads, direct mail campaigns, canvassing app leads paid for centrally, trade show sign-ups.

Exclusion Period

12-month exclusion: if a customer you sold to in the past 12 months contacts the company again and a different rep picks it up, the original rep gets no commission. The new rep gets repeat-customer rate.

Past 12 months: any rep who handles the job gets credit.

This prevents fights over "that used to be my customer" on someone from 3 years ago.

Internal Referrals From CSRs

CSR notices a customer''s neighbor is interested. Should the CSR get a cut?

Yes. $250 flat SPIF per neighbor deal closed from CSR lead-gen. Not a commission percentage. A flat bonus keeps CSR focused on service while rewarding opportunity identification.

Self-Generated Referrals

Rep closes a job, asks homeowner for referrals, homeowner gives 3 neighbor names. Rep knocks those doors and closes. What rate?

Standard commission. Even though the lead is "referred," the rep did the work of asking, going to the neighbor, and closing. Do not penalize reps for doing the ask.

Policy Document

Your commission plan should spell out every source in writing. A one-page addendum to the commission agreement:

• Source definitions (above)
• Rate multipliers for each source
• Exclusion period
• Tie-breaker rules (first contact in CRM wins)
• Dispute process

Paying Referring Customers

Separate from rep commission: your customer referral program. Typical:

• $250 gift card per closed install that was referred
• $500 if they refer 3+ within 12 months
• Paid within 30 days of install completion

This comes out of marketing budget, not rep commission budget.

Common Disputes

1. "That was my customer last year, I should get full commission." Answer: the 12-month exclusion window. If outside, standard rules apply.
2. "I knocked the door first, the referral came after." Answer: whoever logged first in CRM wins. Timestamp in the system is truth.
3. "The CSR took credit for a lead I brought in." Answer: CSR internal referrals require manager approval. Document the source at first contact.
4. "Marketing generated this lead but I did all the work." Answer: 60% company-generated rate still pays well on an $18k install: $1,080 vs $1,800 on cold. Good money, less work.

Rate Tuning by Market

Storm markets with high volume can pay lower referral rates (30 to 40 percent) and reps will not push back, because cold knocks are abundant. Retail markets with limited lead flow should stay at 50 percent to keep reps motivated on referrals.

RoofKnockers Tracks Lead Source

Every lead in RoofKnockers has a source field. Commission calculations pull source automatically, apply the multiplier, and drop onto the commission statement. Zero manual math. See pricing or start a trial.

FAQ

Do these rates apply to insurance restoration and retail?

Yes, though some shops tune rates 5 to 10 points differently between the two lines. Keep source multipliers consistent.

What if two reps both claim to have first contact?

CRM timestamp wins. No exceptions. See our commission dispute guide.

Should we pay the same referral rate on small repairs as full roofs?

Many shops do not pay commission at all on repairs under $1,500. Flat $50 SPIF per repair closed instead.