- June 30, 2025
- Mark Mills
Building a successful window treatment business requires more than just great products and services—you need the right team with the right compensation structure to drive results. Whether you’re hiring your first employee or scaling your existing team, understanding compensation strategies is crucial for attracting and retaining top talent.
Getting compensation wrong can cost you dearly. High turnover, unmotivated employees, and profit erosion are just some of the consequences of poorly structured pay plans. But get it right, and you’ll have a motivated team that drives profitability while building long-term value in your business.
The Foundation: Understanding Your Goals
Before diving into specific compensation models, ask yourself: What are you trying to incentivize? Higher sales volume? Better profit margins? Exceptional customer service? Your compensation structure should align with your business objectives and drive the behaviors you want to see.
Industry best practice suggests that sales team members should earn 10-15% of their gross sales as total compensation. This benchmark helps ensure both employee satisfaction and company profitability, regardless of which specific model you choose.
Compensating Your Sales Team: Four Proven Models
Your sales team is the engine of your business, and their compensation should reflect that importance. Here are four proven models, each with distinct advantages:
1. Gross Sales Flat Percentage
How it works: Commission based on total sales amount (typically 5-10%)
The details: This straightforward approach pays a fixed percentage of every sale. For example, on a $3,500 sale with 10% commission, the salesperson earns $350.
Critical consideration: Implement a chargeback plan for errors to protect profitability. You have two main options:
- Deduct the full cost of errors from commission earned
- Deduct errors from the gross sale amount before calculating commission
Legal note: You cannot charge back more than the commission earned on that specific job.
Best for: Companies wanting simple, easy-to-understand structures that motivate sales volume.
2. Gross Profit Flat Percentage
How it works: Commission based on gross profit after costs (typically 20-30%)
The details: This model calculates commission on profit remaining after cost of goods sold. Since the dollar amount is lower than gross sales, commission percentages are higher to maintain competitive earnings.
Key advantage: Errors and cost overruns are automatically factored into profitability, protecting your bottom line. When mistakes happen, they’re reflected in reduced gross profit, which naturally reduces commission.
Payment timing: Typically paid after installation when all costs are known and accounted for.
Best for: Companies prioritizing profitability over pure volume, especially those with variable product costs.
3. Base Plus Commission
How it works: Combines hourly rate or salary with commission percentage
The flexibility factor: Base pay can cover:
- Administrative time and paperwork
- Travel time between appointments
- Full 40-hour work week coverage
The trade-off: Higher base pay typically means lower commission rates (2-3% vs. 6-8%), but provides income stability for employees.
Why it works: Recognizes that salespeople often wear multiple hats in window treatment businesses—they’re not just selling, they’re measuring, coordinating, and sometimes helping with installations.
Best for: Companies needing flexibility in employee duties while maintaining sales incentives.
4. Sliding Scale Commission Based on Profitability
How it works: Commission percentage varies based on the profit margin achieved on each sale
The power of alignment: This model directly connects salesperson earnings to company profitability. Higher margins = higher commission rates.
Example structure:
- Below 45% margin: No commission
- 45-54% margin: 4% commission
- 55-59% margin: 6% commission
- 60%+ margin: 8-10% commission
Behavioral impact: Discourages heavy discounting and encourages value-based selling. Salespeople become partners in profitability rather than just order-takers.
Error accountability: If mistakes eat into margins, commission reflects the actual profitability delivered.
Best for: Companies wanting to eliminate the discount mentality and build a consultative sales culture.
Critical reminder: Whatever plan you choose, put it in writing. Documentation builds trust, ensures consistency, and protects both employer and employee interests.
Compensating Installers: Matching Pay to Role and Responsibility
Your installation team requires different compensation approaches based on skill level, experience, and responsibilities:
Hourly Pay: The Starting Point
Best for: Entry-level installers, apprentices, helpers, or part-time support
Rate range: Entry-level minimum wage up to $25-30/hour for more skilled positions
Pros: Flexibility to scale hours up or down based on workload
Cons: Lack of income stability can lead to turnover as employees seek more reliable income elsewhere
When to use: For seasonal help, apprentices learning the trade, or hybrid roles covering warehouse and installation duties
Salary Non-Exempt: The Full-Time Foundation
Best for: Competent full-time installers who need overtime protection
Industry benchmark: A skilled full-time installer should handle $1-1.2 million in annual sales at 55-60% margins
Structure: Fixed weekly salary plus overtime pay for hours beyond 40 per week
Why it works: Provides income stability while maintaining labor law compliance for overtime situations
Career progression: Often the stepping stone to management roles
Salary Exempt: The Management Track
Best for: Installation managers with financial or people management responsibilities
Requirements: Must have genuine decision-making authority including:
- Financial decisions (approving overtime, equipment purchases)
- Hiring and firing authority
- Project management with budget responsibility
- Quality control with cost implications
Higher compensation: Typically paid more than non-exempt positions to offset lack of overtime pay
The distinction matters: This isn’t just about job title—exempt employees must have real managerial responsibilities that impact the business financially.
Commission-Based Installers: The Rare but Powerful Option
Best for: Seasoned installers who can upsell, generate leads, or drive additional business
Structure examples:
- 5-10% of gross sales from jobs they complete
- Flat fees for securing additional room measurements
- Bonuses for referrals that convert to sales
Personality requirement: Requires installers comfortable engaging customers beyond basic installation duties
Success story: Some Exciting Windows! members have installers who routinely ask, “Is there another room we should measure?” generating significant additional business.
Compensating Administrative Staff: Aligning Pay with Impact
Administrative roles vary dramatically in scope and responsibility, requiring thoughtful compensation matching:
Hourly: The Entry Level
Best for: Receptionist duties, basic data entry, filing, simple scheduling
Typical range: Minimum wage to $20/hour depending on market and skills
Clear boundaries: Limited decision-making authority, reports to management for guidance
Salary Non-Exempt: The Coordinator Level
Best for: Project coordinators, customer service representatives, basic administrative managers
Responsibilities include:
- Scheduling installations under supervision
- Filing paperwork and maintaining records
- Customer communication following established protocols
- Reporting to higher management for decisions
Overtime eligible: Must receive overtime pay for hours beyond 40 per week
Salary Exempt: The Decision-Maker Level
Best for: Roles involving financial decisions, staff management, or significant business impact
Examples of exempt responsibilities:
- Office managers: Company credit card access, hiring/firing authority, budget management
- Project managers: Placing orders within budget, quality control affecting profitability, timeline management with cost implications
- Showroom managers: Processing payments, managing inventory, making sales transactions
The financial test: If their decisions directly impact your bottom line, they likely qualify for exempt status.
Beyond Base Compensation: Building a Reward Culture
Salary and commission are just the foundation. Industry research shows that 80% of employees don’t leave for higher pay—they leave because of how it feels to work at their current job. Building a comprehensive reward culture keeps top performers engaged:
Recognition Rewards (Low Cost, High Impact)
- Public praise in team meetings
- Peer-to-peer recognition programs (like “Rocky the Rockstar Rhino”)
- Trophy or plaque systems
- Social media shout-outs for achievements
Cost: Minimal financial investment Impact: Addresses the fundamental human need for appreciation
Food Rewards (The Universal Motivator)
- Pizza parties for major achievements
- Monthly birthday celebrations
- Holiday dinners or anniversary lunches
- Quarterly potluck gatherings
Why it works: Sharing food builds community and creates positive associations with workplace achievements.
PTO Rewards (Time is Money)
- Birthday week paid day off
- Performance-based bonus days
- Surprise long weekends during slower periods
- Wellness days for mental health
Strategic value: Shows you value employees as whole people, not just workers.
Gift Rewards (The Tangible Recognition)
- Technology upgrades (phones, tablets, tools)
- Experience gifts (concert tickets, weekend getaways)
- Practical items that improve work or life
- Achievement-based rewards tied to specific accomplishments
Monetary Bonuses (The Cherry on Top)
- Quarterly performance bonuses for hitting targets
- Annual profit-sharing programs
- Milestone achievement rewards
- Clean installation bonuses for installers
- Lead generation bonuses for administrative staff
The key insight: If you excel at recognition, food, and PTO rewards, you’ll spend less on gifts and monetary bonuses while maintaining higher employee satisfaction.
Implementation Strategy: Getting Started Right
Step 1: Assess Your Current Situation
- What behaviors do you want to encourage?
- What’s your current turnover costing you?
- How do your current pay rates compare to local market?
- What can you afford based on your margins?
Step 2: Choose Your Models Thoughtfully
- Start with documented job descriptions defining roles and responsibilities
- Select compensation models that align with your business goals
- Build in performance metrics that drive desired behaviors
- Plan for career progression within your structure
Step 3: Document Everything
- Written compensation plans for each position
- Clear performance expectations and measurement criteria
- Error and chargeback policies where applicable
- Review and adjustment schedules
Step 4: Communicate Transparently
- Explain the reasoning behind your compensation structure
- Show how individual success ties to company success
- Provide regular feedback on performance
- Be open about opportunities for advancement
The Profit Connection: Making the Numbers Work
Remember, all compensation decisions should drive toward profitability. Here’s how to ensure your pay structure supports business health:
For sales teams: Target total compensation at 10-15% of sales generated. If someone sells $500,000 annually, their total package should be $50,000-$75,000.
For installers: Factor their capacity into pricing. A skilled installer handling $1.2M in sales at 55% margins contributes $660,000 in gross profit—easily supporting a $60,000-$80,000 compensation package.
For admin staff: Calculate their efficiency impact. An administrative person who reduces your costs by improving processes or increases sales through better lead management justifies their compensation through measurable business impact.
Common Mistakes to Avoid
The “Winging It” Approach: Inconsistent, undocumented compensation leads to confusion, legal issues, and employee dissatisfaction.
The “Lowest Bidder” Mentality: Paying below market rates to save money often costs more in turnover and poor performance.
The “One Size Fits All” Solution: Different roles need different approaches—your installer compensation shouldn’t mirror your sales compensation.
The “Set It and Forget It” Error: Regular review and adjustment ensures your compensation stays competitive and effective.
Want to dive deeper into these strategies? This information and much more is available on the Window Treatments For Profit podcast, where LuAnn Nigara regularly interviews industry expert Jessica Harling on team building and compensation best practices.
At Exciting Windows!, our members have access to proven compensation frameworks, detailed templates, implementation guides, and ongoing support to build high-performing teams. We’ve helped window treatment professionals of all sizes—from solo operations to multi-million dollar companies—create compensation structures that drive results while building sustainable, profitable businesses.
Our community includes successful business owners who’ve navigated these exact challenges and are willing to share their real-world experiences, actual compensation plans, and lessons learned. You don’t have to figure this out alone or learn through expensive trial and error.
Ready to build a better team with the right compensation strategy? Contact us today to learn how Exciting Windows! membership can provide you with the tools, templates, expert guidance, and peer support you need to succeed. Your future success—and your team’s—depends on getting these fundamentals right.
