Door-to-Door Commissions
11/13/2023
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The Ultimate Guide to Door-to-Door Pest Control Commissions
Because door-to-door sales commissions pertain to how many contracts/agreements a sales rep sells, it is challenging to find how much you could make by doing it.
However, our goal is to help you understand what goes into the average pest control sales rep’s commissions and how they relate to you.
Here are the average commissions for pest control Sales reps:
Rookies (1st year): $29,500
Intermediates (2nd year): $65,000
Veterans (3rd+ years): $102,400
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How Much Could You Make if You Were to Sell Pest Control Door-to-Door?
Like any sales job, much of your commission depends on how well you can influence others and help them purchase a product from you.
Unlike other door-to-door industries, pest control commission percentages will rise the longer a sales rep stays with a company.
Pest Control commissions are negotiated around what percentage the sales rep will receive from the company.
Commissions are based on the sales reps’ “total service revenue” at the end of the summer/year.
Because these percentages are negotiated and are usually different for every rep, it is hard to determine what a sales rep would make off a single pest control account.
However, here are the average starting base commission rates:
Rookies – 30%
Intermediates – 45%
Veterans – 55%
From this, you can see that the longer you are with a company, the more commission you will make off of each account that you sell.
Commissions on Selling a Single Pest Control Account
When a door-to-door pest control sales rep knocks on a door, they aim to sell that person a pest control contract/account as high as possible.
The higher the value of each pest control account, the more commission they will make for that account.
Therefore, pest control reps are incentivized to sell accounts as high as possible.
The average commission from one pest control account starts at around $200 and can go up to $500.
But there are a lot of variables that can change a pest control sales reps commissions.
What can sales reps control?
- Whether customers are billed monthly or quarterly
- The discount rate at which the contract is sold
- The location the sales rep sells pest control
Door-to-door pest control sales reps can help customers choose monthly or quarterly billing.
However, customers have a higher retention rate when billed monthly. This is primarily due to customers being “okay” with a $50 bill once a month rather than a $150 one every three months.
The discount rate at which the rep sells an account is the most significant factor in increasing or decreasing contract value.
Starting prices for account totals are around $300-$500 and can go down to $99-$250.
The sales rep will negotiate with their customers for a comfortable contract value price and then sell the contract for a specified duration.
Again, the higher a sales rep can sell the contract value, the higher the commission.
How much does the sales rep make off one pest control account?
The sales rep will receive whatever they sold the account at multiplied by their negotiated sales commission.
Ex. Jimmy negotiated a 36% commission rate from Fox Pest Control and sold an account valued at $400. He would receive $144.00 (400 X .36) for that account’s total commission.
Commissions on multiple pest control accounts
Like many other door-to-door industry commissions, pest control commissions can increase the more accounts a sales rep can sell in a summer/year.
Generally, a sales rep will have a “base commission rate.” This rate will have been negotiated when the sales rep signed on with the company.
Again, here are the average sales commission rates according to tenure:
Rookie – 30%
Intermediate – 40%
Veteran – 50%
These commission rates will only change if the sales rep sells more than $50,000 in total contract value revenue. Then, the sales rep can slowly increase their rates as stated:
< $50,000 — Base Commission
> $50,0000 —- Base Commission + 3%
> $55,000 — Base Commission + 5%
> $60,000 — Base Commission + 7%
> $75,000 — Base Commission + 10%
As you can see, each pest control sales rep is incentivized to sell as many contracts as possible and as highly valued as possible.
It balances the quantity of accounts sold and the quality (value) of accounts sold.
Funded vs. Unfunded Accounts
After a pest control sales rep sells a contract to a customer, that customer generally has three days to cancel their contract or keep it.
Thus, funded accounts are those that customers do not cancel out of contracts, and unfunded contracts are those that the customer does cancel out of their contracts.
Like many other door-to-door sales jobs, this can be an emotional rollercoaster for sales reps throughout their career.
Front-end vs. Back-end Commissions
Like many other industries in door-to-door sales, pest control sales reps will receive a percentage of their total commissions upfront (front-end commissions) and the remaining portion in a few months after the termination of their summer/year (back-end commissions).
Front-end commissions -
Generally, a pest control sales rep will receive anywhere from 25-50% of their total commissions in their front end.
Front-end commission checks are given to sales reps weekly as accounts are sold.
If Jimmy were to sell ten pest control accounts in one week with total commissions equaling $4,500, his company would give him 35% commission upfront.
Jimmy would receive an upfront commission check of ($4,500 X .35) $1,575 the following Friday.
Back-end commissions -
An easy way to look at back-end commissions is just the remaining percentage of commissions owed from the company to the sales rep after front-end commissions are taken out.
They are generally received all at once a few months after a pest control sales rep has finished the summer/season. (on a negotiated date between the sales rep and the company)
However, when a sales rep exceeds a total serviced revenue of $50,000, their sales commission is changed for all their accounts. (Resort back to “Commissions on multiple pest control accounts.)
Let’s look at some examples:
Jimmy just finished his summer selling pest control for Aptive. He did well and ended with a total serviced revenue of $76,545.00.
He is trying to figure out his back-end commission check on November 5th.
Before the summer, he negotiated a 35% base commission rate with Aptive for each account sold, and throughout the summer, he received $10,716.00 (40%) in his upfront commissions.
Because Jimmy sold more than $75,000 in service revenue, his commission rate increased by 10%.
So, to figure out his back-end commissions, we will figure out his total adjusted commissions – his upfront commissions.
$76,545.00 X (35% + 10%) = 34,445.25 – $10,716.00 = $23,729.25
Serviced revenue X (base commissions rate + bonus rate) = total commissions – front-end commissions = back-end commissions
Conclusions
In conclusion, selling door-to-door pest control can financially benefit sales reps. A few things to remember and look out for are:
- Negotiate a good commission percentage with your company.
- Find transparent companies with a reputation to fulfill and pay your back-end commissions.
- Balance the quantity and quality of pest controls that you sell.
Are you interested in selling pest control and need help finding the right company, location, and team? We’re here to help.
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