As a door-to-door sales rep, your job is to sell subscriptions. With Axiom Eco-Pest Control, the customer signs a contract to receive pest control services on a quarterly basis. The first year of services includes an initial service and then regular services every 3 months starting 1 month after the initial service.

There’s an important difference between REVENUE and SERVICED REVENUE. When a new contract is sold by a door-to-door sales rep, federal law permits the customer to cancel the contract within 3 days with no penalties or fees unless the service has already been rendered. Once an account has been serviced (even if it’s the same day as the sale), the contract is binding.

Because of the small percentage of people who cancel between the selling and servicing of their account, the only number that really matters at the end of the day is the revenue of the accounts you sell that have been serviced.

The contract value equals the total cost to the customer of the 1st year of service. For example, a contract with a $135 initial service and $150 quarterly regular services would have a contract value of $735.

Average Contract Value (ACV) = Revenue / Accounts Sold.

Service rate is the percent of accounts sold that actually get serviced.

Service Rate = Accounts Serviced / Accounts sold

Federal law (and many state laws as well) permits customers who enter into a contract through a door-to-door salesperson to cancel the contract within 3 business days with no penalties or fees. This 3-day period is called a “cooling off” period. Once an account has been serviced, however (even if only hours after the contract was signed), the contract becomes binding.

Companies that struggle operationally may not service accounts until after the cooling off period has already ended leading to a higher likelihood that customers will get cold feed. The lower a company’s service rate, the more contracts you’ll need to sell to make up for canceled accounts.

With Axiom Eco-Pest Control, the vast majority of accounts sold are serviced the same or the day after, and 94% of all accounts sold door-to-door in 2021 were serviced.

Fast money is the immediate payout you get when an account you’ve sold is serviced.

Every week, we pay you a set amount for each serviced account regardless of that account’s contract value. This is an advance on your total pay which is determined at the end of the sales season when your commission rate is calculated.

Attrition refers to the number of accounts that have cancelled (churned) before the end of the year.

Your paycheck at the end of the season is dependent on how many of your sold accounts are still active. The rate of attrition depends on (1) the quality of customers you sign up and (2) how good the service is.

Even if every customer you sign is 100% solid, you can still be left with a big hole in your paycheck if the service sucks. That’s why it’s important to sell for outstanding pest control companies like Axiom Eco-Pest Control. With Axiom, you can be confident the accounts you sell are going to be taken care of.

(Our earnings calculator automatically factors in attrition, so you don’t have to worry about it!)

Your commission rate is the percent of serviced revenue you’ll be paid at the end of the sales season.

The more you sell, the higher your commission rate.

Commission is typically paid in two different installments at the end of the sales season, the first being paid in the fall and the second just after the end of the calendar year.

For the front-end commission check, the total serviced revenue of your sold accounts still active by that point is multiplied by your commission rate to get your total commission. Your total commission (minus the fast money already paid) is then multiplied by 30% to calculate your front-end commission.

Front-End Commission = (Total Commission – Fast Money) x 30%

For the back-end commission check, the total serviced revenue of your sold accounts still active by the end of the year is multiplied by your commission rate to get your total commission. Your total commission (minus the fast money already paid) is then multiplied by 70% to calculate your final back-end commission check.

Back-End Commission = (Total Commission – Fast Money) x 70%

(Our earnings calculator factors in commission rates and fast money as well as front-end and back-end attrition rates, so you don’t need to break out a spreadsheet.)