D2D glossary / How reps get paid
What are commission tiers in door-to-door sales?
Commission tiers: Commission tiers are a sliding scale: the more accounts you sell in a period or a season, the higher the commission rate you earn. Some plans apply the higher rate to every sale, others only to new ones.
A tiered plan sets thresholds. Sell up to the first threshold and you earn one rate; pass it and the rate rises. Summer pest and security contracts are often built this way, with the season's total account count deciding the final rate.
Two details change what a tier is worth. First, whether the higher rate is retroactive (applied to all your sales) or only applies to sales after the threshold. Second, whether canceled accounts are subtracted from your count, which can drop you a tier after the season.
Ask before you sign
Is the higher tier retroactive, and do cancellations count against my tier?
Related terms
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- How Door-to-Door Sales Pay Works
- Door-to-door pest control sales jobs · Pest control sales FAQ
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Commission tiers: quick answers
What are commission tiers in door-to-door sales?
Commission tiers are a sliding scale: the more accounts you sell in a period or a season, the higher the commission rate you earn. Some plans apply the higher rate to every sale, others only to new ones.
What should I ask a company about commission tiers?
Ask this before you sign: "Is the higher tier retroactive, and do cancellations count against my tier?" Get the answer in writing, in the rep agreement or the pay plan.