Flat Rate vs Revenue vs Profit-Based Payouts — When to Use Which
TeamBuyIn supports three payout types today:
Flat Rate,
Profit Based
Revenue Based.
Flat Rate Payouts
What it is:
A fixed payout tied to the job total. No matter what, this amount gets paid out for a job.
Example:
A $4,000 tree removal pays out $400.
Whoever worked that job earns up to $400 depending on how you split it.
Best for:
Simple or repeatable services with stable pricing and costs.
Crews that just want quick clarity (“I make X per job”).
Businesses just starting with performance pay.
Hourly techs who occasionally upsell.
Industries:
HVAC service & maintenance (flat diagnostic or repair jobs)
Plumbing service calls (toilet repair, drain cleaning, water heater flush, etc.)
Electrical service work (fixture installs, outlet repairs)
Cleaning services (recurring home or commercial cleaning)
Pest control (standard treatment routes)
Appliance repair (flat hourly + material)
Why:
The work is standardized, simple to price, and you want to reward completion speed, upsells, and customer satisfaction.
Profit-Based Payouts
What it is:
A payout calculated from net profit: what’s left after labor, materials, and overhead.
Example:
That same $4,000 job costs $2,800 to complete.
Profit = $1,200.
If payout is 25% of profit, the crew earns $300.
Best for:
Companies with variable material or labor costs
Owners who want payouts tied to true performance
Advanced setups where profitability data is accurate
Industries:
HVAC installs or replacements
Remodeling / construction / additions
Solar installation
Garage door or window replacement
Roof replacement
Painting or flooring contractors (large projects)
Why:
Material prices fluctuate, crews vary in efficiency, and profit is what actually determines the business’s health. Paying on profit aligns payouts with sustainability, if margins are tight, the team sees why.
Revenue-Based Payouts
What it is:
When you pay on revenue, you’re saying showing your team that every job matters regardless of anything else. This works best if you're building a sales first culture. If a tech sells anything, that's what is important.
This model rewards overall production and puts it above everything else.
This helps teams think bigger picture and focuses more on volume, consistency, and hitting collective goals.
Example:
A tech sells a $25,000 install, they get 3% of total revenue.
3% of total revenue = $750 bonus.
Best for:
Sales roles or team-wide revenue goals
High-volume service departments
You want to drive sales or ticket size without complicating pay formulas
Your costs are fairly stable across most jobs
You want techs or sales reps motivated to fill the schedule
You want an easy “goal-based” system — e.g., 3% of monthly revenue or bonuses at milestones ($25K, $50K, etc.)
Industries:
Roofing & exterior services (pressure washing, gutter cleaning, siding)
Tree service (removals, pruning, storm cleanups)
Window cleaning or solar panel cleaning
Home remodeling or handyman services (variable jobs, but top-line revenue goals)
Landscaping & lawn care (high job count, steady pricing)
Pool service (monthly or seasonal routes)
Why it works:
Aligns the team around growth: everyone can track and influence revenue.
Simple to calculate: no need for detailed cost data to get started.
Scales motivation: it rewards consistency and momentum, not one-off wins.
Bridges owner and tech incentives: higher production = higher pay
Which Should You Choose?
Goal | Best Payout Type |
Simple rollout, easy math | Flat Rate |
Drive overall production or sales | Revenue-Based |
Tie pay to true efficiency and margin | Profit-Based |
Most companies using TeamBuyIn start with Flat Rate, layer in Revenue bonuses for high ticket jobs, and graduate to Profit-Based once their numbers are dialed in.