Hourly Plus Commission: A Better Roofing Pay Model

Pure commission is the default in roofing because it felt free to the owner: no production, no payroll. That math never actually worked. Pure-commission teams report 70-80% first-year turnover. Recruiting costs, wasted training hours, and lost deals from green reps add up to more than a base salary would have cost.

A hybrid structure pays a modest hourly base plus a reduced commission rate. The total compensation is similar for top producers, better for mid-tier, and dramatically better for new reps surviving ramp.

The Math of the Hybrid

Example: $17/hour base, 40 hours/week, 3.5% commission on collected revenue.

• Weekly base: $680
• Annual base: $35,360
• Commission on $1M in annual collected revenue: $35,000
• Total at $1M production: $70,360

Compare to pure commission at 7% on $1M: $70,000. The high producer earns about the same. But watch the early ramp numbers.

A New Rep at Month 2

• Pure commission, $40k in first 60 days collected revenue: $2,800 at 7% = $1,400/month
• Hybrid, same revenue: $2,800 at 3.5% = $1,400 + $2,720 base = $4,120/month

That rep stays for month 3 under the hybrid. Under pure commission, they cannot make rent and quit. You lost them at the exact moment training was about to pay off.

Why Hybrid Reduces Turnover

1. New reps survive the ramp without panic-quitting over a bad week
2. Mid-tier reps feel less pressure to over-promise or misrepresent damage to close faster
3. Reps take a real vacation without losing a paycheck
4. A rep with kids at home can plan a budget

Who It Attracts

Pure commission self-selects for two types: serial high-risk salespeople who job-hop every 12 months, and desperate career-switchers who often wash out. Hybrid attracts a wider field: former retail managers, military veterans, and experienced industry hands tired of feast-or-famine.

Objections from Commission Purists

"It takes away the hunger."

Data says no. Teams on hybrid at $17 + 3.5% average 12% more closed deals per rep-year than pure-commission teams. The hunger comes from the commission, which is still most of the income. What is removed is the panic.

"It rewards bad reps who don't produce."

It rewards them for 60 days. If they are not producing at month 3, that is a performance conversation, not a comp problem. Pure commission relies on starvation instead of management. That works until the good candidates stop applying.

"I can't afford a payroll."

A 6-rep team on $17/hour full-time runs $163,680/year in wages plus about 10% burden, so call it $180k. That team needs to produce $5.1M in collected revenue at 3.5% commission for comp to equal prior pure-commission payout at 7%. Most 6-rep storm teams produce more than that. The hybrid math works at scale. It breaks only on 1-2 person teams with inconsistent pipelines.

Structuring the Commission Side

Revenue TierCommission RateNotes $0 - $500k3.5%Base tier, matches the hourly $500k - $1M4.5%Accelerator rewards growth $1M+5.5%Top-tier retention

Annualize the tiers, not calendar-quarter them. A rep who hits $500k in month 7 should stay at 4.5% through year end, not reset in Q4.

Overtime Considerations

Outside sales reps are exempt from federal overtime under FLSA if:

1. Their primary duty is making sales
2. They are customarily and regularly away from the employer's place of business

Most canvass reps qualify. Confirm with a local employment attorney because state rules (California, Colorado, others) can add requirements. If your reps do not qualify for outside-sales exemption, hybrid becomes more expensive because overtime above 40 hours kicks in.

Advances Against Commission

In a pure-commission model, advances are common and create messy chargeback situations. In a hybrid, you rarely need advances: the base covers living expenses. Commission is paid monthly on collected revenue without advances. Cleaner books, fewer disputes.

Migration Plan

If you are moving from pure commission to hybrid:

1. Run the math for every current rep: model last year's earnings under the new structure
2. For top producers whose pay would drop, grandfather them at the old rate for 12 months or boost their tier
3. Announce 60 days in advance, in writing, with a Q&A meeting
4. Onboard new hires on the new structure starting day 1
5. Review quarterly: adjust base, tier thresholds, or commission percentages based on actual revenue

RoofKnockers tracks revenue per rep, collected vs contracted, and commission-ready reports that plug into your payroll. See the payroll reporting tools.

Related: top rep retention playbook, commission dispute arbitration, and burnout prevention.

See pricing or start a RoofKnockers trial.

FAQ

What hourly rate is too low to matter?

Under $12/hour. If the base cannot cover rent and gas in your local market, the rep is still on pure commission in practice. The floor needs to cover basic living for the ramp to do its job.

Do top producers revolt?

Rarely, because their total comp is similar. If you are cutting their effective rate by 15%+ in the transition, yes, there will be a revolt. Grandfather them or raise the tiered accelerator so top-end earnings match or beat the old plan.

What about 1099 reps?

A 1099 cannot receive an hourly base without risking reclassification. If you want hybrid, classify reps as W-2. The IRS has been aggressive about reclassification in the trades for the last 5 years.