Compensating Service Technicians When They Set Leads That Result in Closed Sales

A Contractor University Member recently utilized the Ask-The-Expert Q&A feature within the member dashboard by submitting the following question and received the response below.

Contractor Question:

“I’m reaching out with a question regarding best practices for compensating service technicians in scenarios where they assist in generating leads for sales.

“When service technicians, paid on an hourly rate, identify potential sales opportunities during their service visits (such as older systems needing replacement) and set a lead for a salesperson who subsequently closes the sale, how do companies typically compensate those technicians? Is it more common to provide a flat rate per closed sale, or is a percentage of the sale usually allocated to the technician?”

Contractor University Expert Response:

“Definitely, a fixed fee is the most common for a closed sale of a motor-bearing unit. I pay $250 for a system. Simple. Clean. Accounting is easy.”

Contractor University members can submit questions via the Ask-The-Expert page in the member dashboard once logged-in. If you are not a member, sign-up for a free trial to access this feature today.

Want to read more real contractor questions and the expert responses? Our faculty members have also answered questions on other related topics, including Training Service Techs in Customer Service and What Should Technicians Do Before Leaving A Service Call.

Hear more from our “Ask The Experts” faculty members on “Cracking The Code,” our weekly web series.

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.