# Draws To Sales Reps



## DFWRoofing (Apr 27, 2010)

Do you give them?

Our company has traditionally not done so. However, I have hired some reps from other large companies that say they get a 10% draw on the first check on an insurance job.

The logic being that the final collection may take a significant amount of time when insurance involved. The good to the company is that a check good for the materials gets collected early.

Thought & advice appreciated.


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## Grumpy (Oct 29, 2008)

I don't give draws but then again I have only had one sales rep in a dozen that I would consider a success, so maybe I am not the best to ask for advice.

I wondered somewhere where I was paid a % of the gross profit. I also got a small weekly salary. I was always asking my boss to ditch my salary and up my %. Never happened, but I was hansomly paid. I should never had quit.

I worked somewhere else as the schedling manager, they paid their sales reps 10% of the sale price, and gave $500 a week draws plus mileage reimbursements.

I worked somewhere else that gave no draws but gave commissions in a front end and back end. Front end once the job is reviewed and approved, back end once the final payment is collected.


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## Roofmaster417 (Jun 7, 2010)

Grumpy said:


> commissions in a front end and back end. Front end once the job is reviewed and approved, back end once the final payment is collected.


Thats how I pay. :thumbup: But I have been known to advance some funds depending on the reason for the advance inquiry.

I can't be a total a** because we have all had situations come up and needed a life line.That will also depend how many contracts they have riding too.


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## Grumpy (Oct 29, 2008)

I too will do advances on a case by case basis. I don't want to get out of hand with draws though, then you have a guy who worked for 4 months but sold very little and is $8k in your pocket, and you fire him because he sucks. Ouch.

That means you or one of your guys has to go out and sell 5-10 roofs just to cover that loss. That's a big hit in my world.


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## Roofmaster417 (Jun 7, 2010)

$8 large would not be an option.That is a direct hit.The most I stuck my neck out for was $2500.00 and that worked fine.

With $8,000.00 I would need a title to a new truck,boat and possible a wife or girlfriend.Hahahahahaha


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## nmarshall603 (Mar 25, 2012)

We give draws on the first check..

our salesmen in our training program get 6% draw for their first 10 jobs, 8% on their next 15 and then 10% after that.


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