When it comes to marketing a water damage company, there are many strategies a small business can employ to secure more leads and increase the profitability of their business. Even the decision of whether you will pay your salespersons a salary or on commission can affect the overall sales of your company.
At More Floods, we have seen the benefits of paying each salesperson on commission first hand, and we encourage every company partnering with us to use the same strategy. Paying on commission offers benefits to both the company and the employee.
How Paying on Commission Can Increase Your Profitability
The unique characteristic of paying employees on commission is that this payment structure provides the opportunity for limitless earning. This can motivate employees to work harder to secure more water damage jobs at a higher price.
The structure of their commission matters. Pay your employees on a commission rate, or a percentage that is based on the closing amount of the job. When they close the job at a higher rate, they know they will receive a higher commission. This will motivate your employees to work harder to produce more revenue for your company.
How Paying on Commission Can Benefit Your Employees
Paying on commission isn’t only beneficial for the profitability of the company. This payment structure also provides unique benefits to your employees by giving them a level of control over their salary and an active role in their job security. Since you employees will be paid a percentage based on the revenue they secure for your business, they can increase their salary by securing more leads and securing higher paid jobs.
Additionally, in a competitive industry, a salesperson can take comfort knowing they have a level of control over their job security. Remaining secure in their job relies on them working hard to secure leads and working hard to improve the profitability of your business. As long as they are playing an active role in growing your business, their job remains secure.
Guiding Your Employees Through the Estimate Process
At More Floods, we find it is best for the business owner or manager to play an active role in the estimate process. This means that, while your salesperson will complete the estimate inside of the home, they will bring the information back to you so you can work together to provide an accurate and profitable estimate to your customer.
Paying your employees on commission is just one of the many best practices the team at More Floods has found to be crucial to running a profitable water damage restoration business. To learn more about the business practices essential to your success in this industry, contact us today.