Setter vs Closer Commission Split: What Actually Works

The setter knocks 200 doors, finds the damage, and books the inspection. The closer shows up, presents the claim, and signs the contract. Both reps earned part of that commission. The question every roofing company has to answer: how do you split it?

Why the Split Matters More Than You Think

Setters who feel underpaid stop knocking. Closers who feel ripped off stop showing up on inspections. Get the split wrong and you lose half your production team inside 90 days. The split is not just a math problem, it is a retention problem.

Most roofing companies running a setter-closer model see total commission pools of 8% to 12% of the contract value. On a $15,000 retail roof, that is $1,200 to $1,800 total to divide. On an insurance job with a $22,000 RCV, you are looking at $1,760 to $2,640.

The Three Common Splits

70/30 Closer Heavy

Closer gets 70%, setter gets 30%. This is the split you see at companies that believe the close is 80% of the work. On a $2,000 commission pool, the closer walks with $1,400 and the setter with $600.

Use this split when your setters are newer or when your closers are bringing in supplements, handling adjuster meetings, and running production. It keeps top closers happy but can burn out setters who feel they did the hard work of finding the lead.

60/40 Standard

Closer gets 60%, setter gets 40%. This is the industry baseline. On a $2,000 pool, the closer takes $1,200 and the setter takes $800. It acknowledges that the setter did real work (qualifying the homeowner, confirming damage, setting a firm appointment) without giving them equal weight to the person who actually signs the deal.

50/50 Equal Split

Both reps get half. This works at shops where the setter does more than just knock. If your setter climbs the roof, documents damage, and books a firm adjuster meeting before the closer ever shows up, 50/50 is fair. A $2,000 pool becomes $1,000 each.

The ABC Test Problem

In California, the ABC test for independent contractors makes most 1099 setter-closer arrangements risky. If your setters work exclusively for you, use your scripts, and report to a sales manager, they probably fail the B prong of ABC and should be W-2 employees. Texas and Florida give you more flexibility, but even there, treating setters like full-time staff while paying them 1099 is an audit waiting to happen.

The split structure itself is not the issue. The issue is whether you are paying them correctly as W-2 or 1099. Get this wrong and you owe back taxes, penalties, and potentially overtime wages for every setter on your roster.

Real Example: The $28,000 Claim

Marco sets an appointment in a hail zone in Oklahoma City. He climbs the roof, takes 40 photos, and confirms hail damage on three slopes. He books the adjuster meeting for Thursday at 10am. Closer Jen meets the adjuster, gets the claim approved at $28,400 RCV, and signs the contract that afternoon. Company pays 10% total commission ($2,840) on a 60/40 split. Jen takes $1,704, Marco takes $1,136.

That is a fair split because Marco did the qualifying work and Jen did the closing. If Marco had only knocked the door and handed it off cold, 70/30 would be fair. If Jen had only showed up to sign (Marco ran the adjuster meeting), 50/50 would be fair.

Tracking Splits Without a Paper Mess

The worst way to track splits is a spreadsheet updated once a week by the office manager. Reps lose trust the first time a deal gets mis-assigned. The second time, they start screenshotting everything.

Use software that tags every lead with both the setter and closer at creation. RoofKnockers tracks commission splits automatically on every signed claim, so when the check comes in, both reps see exactly what they earned and when it pays out. No disputes, no "I set that deal three weeks ago" arguments.

When to Change the Split

Do not change splits mid-quarter. If you realize your 70/30 is too closer-heavy, announce the change for the next pay period and apply it only to new deals. Retroactive changes kill trust faster than almost anything else in a sales org.

Review splits annually. If your setters are averaging $80k and your closers are at $180k, that is probably fine. If your setters are at $40k and burning out by month four, the split is wrong or the lead quality is wrong. Sometimes the fix is better training, not a better split.

FAQ

What if the setter also helps close the deal?

Pay them as a closer on that deal. Do not try to credit "1.2 setter deals" or weird fractional splits. If a setter stepped into a close and handled it, flip the split or pay them the full closer rate for that one.

Who gets paid if the homeowner cancels during the three-day right of rescission?

Neither rep. Commission only earns on deals that stick past the cancellation window. Some companies pay a small $50 to $100 setter bonus on any signed contract regardless of cancellation, which keeps setters booking appointments during slow weeks.

What happens if a setter leaves but their deal closes two weeks later?

Your written commission agreement should specify this. Most companies pay out deals that were set before the rep left if the contract signs within 30 to 45 days. Beyond that, the deal goes to the closer alone. Put it in writing or expect a small claims filing.

Do supplements get split the same way?

Usually not. Supplements are typically handled by the closer, project manager, or a dedicated supplementer. If the setter does not touch the supplement, they should not share in it. See our post on commission on supplement revenue for the full breakdown.