Sales Commission for General Contractors

Sales Commission for General Contractors: A Guide to Increasing Revenue

General contractors play a vital role in the construction industry by managing projects from start to finish. However, finding new clients and increasing revenue can be challenging in a highly competitive market. One effective strategy for boosting sales is offering sales commissions to employees. In this article, we will explore the benefits of sales commissions for general contractors and provide tips on how to implement them successfully.

What is a Sales Commission?

A sales commission is an incentive paid to employees for selling a product or service. It is usually a percentage of the sale price and is paid in addition to the employee`s regular salary. Sales commissions are a common strategy used by businesses to motivate their sales teams and increase revenue.

Benefits of Sales Commissions for General Contractors

1. Motivation: Sales commissions incentivize employees to sell more and achieve higher sales targets. This motivation can lead to increased productivity and improved performance, which will ultimately benefit the company`s bottom line.

2. Loyalty: Offering sales commissions can help to build loyalty and retention among employees. When employees feel like they are being rewarded for their hard work, they are more likely to stay with the company long-term.

3. Competitiveness: Sales commissions create healthy competition among employees, which can lead to higher sales and improved customer satisfaction. This is especially important in a competitive market where clients have multiple options to choose from.

4. Increased Revenue: The ultimate benefit of sales commissions is increased revenue. By incentivizing employees to sell more, general contractors can generate more revenue and grow their business.

Implementing Sales Commissions Successfully

To implement sales commissions successfully, general contractors need to follow these tips:

1. Define clear and realistic sales targets: Employees need clear goals to work towards. General contractors should set realistic sales targets that are achievable but still challenging. This will motivate employees to work harder and achieve better results.

2. Establish a fair commission structure: The commission structure should be fair and transparent. General contractors should offer a commission percentage that is both reasonable and motivating for employees.

3. Train employees on sales techniques: Not all employees are natural salespeople. General contractors should provide training and support to help employees develop their sales skills and techniques.

4. Monitor performance: It is essential to monitor employee performance regularly to ensure they are meeting sales targets and delivering high-quality work. This will help to identify areas where employees need additional training and support.


Sales commissions can be a highly effective way for general contractors to increase revenue and grow their business. By providing incentives to employees, companies can motivate their sales team, build loyalty, and foster healthy competition. To be successful, general contractors need to establish clear sales targets, offer a fair commission structure, provide training and support to employees, and monitor performance regularly. With these strategies in place, sales commissions can be a powerful tool for boosting revenue and taking a general contracting business to the next level.