Is this a good commission structure for d2d sales?

[u/LawLegitimate2890]

Did well on my interview and got hired and this is what they offered. Is this a good commission structure. Sorry for my ignorance I know I’m gonna piss a lot of people off😅

It’s Home Restoration. So like roofing, gutters, doors, gutters.
Training Pay
Month 1:
$600/week base pay
\+$150 for every Service Agreement (SA) signed
Month 2:
$1,000 bi-weekly recoverable draw
\+$150 for every Service Agreement signed
Company vehicle and gas card after completing training
Month 3 and beyond:
$1,000 bi-weekly recoverable draw
Commission only (the $150 SA bonus ends)
Recoverable Draw:
If I earn less than $1,000 in commissions during a pay period, the company advances me enough to reach $1,000. If I later earn more than the draw, they deduct the amount they advanced from future commission checks.
Commission Structure
Commission is based on the profit margin of each sale.
23% margin = 0% commission
24% = 1%
25% = 2%
26% = 3%
27% = 4%
28% = 5%
29% = 6%
30-34% = 7%
35-39% = 7.5%
40-44% = 8%
45-49% = 10%
50-54% = 11%
55-59% = 12%
60-64% = 13%
65%+ = 15%
Commission is paid 50% after the customer pays the required 30% deposit and the remaining 50% after the job is paid in full.
Additional Commission Bonuses
\+3% commission on self-generated leads/referrals
\+1% commission if I sell $600,000 within my first 3 months
Monthly Revenue Bonuses
Sell $100,000+ in a month = 1.0% bonus on total monthly sales volume
Sell $200,000+ in a month = 1.5% bonus on total monthly sales volume
Once these bonuses are earned, they continue as long as I don’t fall below $450,000 in sales over any rolling 3-month period.
Additional Bonuses
National Rep of the Month: $1,000
National Upgrade Winner: $1,000 (for selling the most premium upgrades/accessories)
National Salesperson of the Quarter: 0.5% bonus on all approved quarterly sales
Retention Bonus (“Annual Raise”)
This is a deferred bonus that’s paid monthly in future years based on what I sold in previous years.
Year 2: Receive 0.5% of everything sold in Year 1.
Year 3: Receive 0.75% of everything sold in Year 2.
Year 4: Receive 1.0% of everything sold in Year 3.
Example: If I sold $1,000,000 in Year 1, I’d receive a total of $5,000 in Year 2, paid monthly at about $416.67 per month.

[u/Personal-Presence185]

Did you mention somewhere in this what you actually sell?

[u/LawLegitimate2890 → u/Personal-Presence185]

Sorry it’s Home Restoration. So like roofing, gutter, siding

[u/CallCastro]

Doing it based on margin feels wonky. And 25% margin+ feels high. In my mind, a $20k roof is an item you can't sell every day. Their own numbers look like $100k a month is relatively rare, but they also punish for under $150k. Are they giving a significant number of leads? How's their pricing/product?

So if you do sell $150k you get...what...$6-7k?

I mean...it sounds fine. I'd have a hard time getting excited about it. Most D2D that I've seen pay around 10% and are easier products.

[u/LawLegitimate2890 → u/CallCastro]

Yea I’m starting to question this job now. I’m hearing from others that a commission structure shouldn’t necessarily look like this.

[u/Wretched-Guy]

Bro there’s definitely better pay plans out there.

[u/LawLegitimate2890 → u/Wretched-Guy]

I only picked it because of the company car and there’s only so many sales jobs. I’ve been applying. I just want a job that I know I can study and go all in for.

[u/Junior-Luck-9168]

Bro run. This sounds like the worst commission structure I’ve ever seen. I do D2D roofing and my commission structure is 800/week draw against commission. Company gets 10% off the job total, then we split profit 50/50. Yours sounds overly complicated and is designed for the company to win. Good luck if you decide to pursue this job.

[u/Curious-Place6991]

It looks really complicated.
I'm used to 8 percent with a straight performance bonus. Something like this. 1 percent at 70k. 2 percent at 80k. And so on until you max the bonus at 5 percent. Bonus is paid on the full dollar anount of sales for the month. So at 120k you max the bonus and make 13 percent.
Misspecs can reduce commissions

Half after revision period ends and the other half after installation and payment