Strict commission-only structures—a high-risk/high-reward method for both employers and employees—was once the preferred payment system among flooring dealers for its RSAs. However, it is less prevalent today as compensation models have adapted to younger sales associates entering the workforce.
Today most retail stores blend hourly pay and commission (like 15%-30% commission on top of wages) while the trend over the years leans toward hybrid models, especially with increased focus on performance.
CCA University research unveiled at the recent conneXtion 2026 convention found older Gen-Zers and younger Millennials were not interested in pursuing commission-only setups and wanted guaranteed money.
That approach flies in the face of some “old-school” dealers when it comes to compensation. “We haven’t adjusted away from our commission-only structure, but we know that we are a bit more generous in that regard than the industry average,” said Mark VanderGiessen, COO, general manager, Haight Carpet & Interiors, Woodinville Wash. “Most folks are opposed to the idea of a commission-only structure, but those concerns usually go away once they’ve seen what we have to offer and how we have set up the commission structure.”
Salt Lake City-based RC Willey, with 14 locations in four Western states, has always paid its RSAs on a commission-based pay structure while offering a minimum wage guarantee salary for the first six months as RSAs build up their client list. “We usually never have anyone fall below the minimum after that,” said Eric Mondragon, division manager/flooring buyer. “I have recently increased our labor rates and included a commission to the RSA for that as well.”
Several dealers said they have tried different models to see which one sticks—in some cases they have customized their approach to meet the RSA’s comfort level. “We have tried a few different models, but most people like the guaranteed monthly salary with a sliding scale percentage,” said Carlton Billingsley, owner of Floors and More, Benton, Ark. “This allows for guaranteed payment each month, and the salesperson to make more money by selling at a higher margin and the number of projects sold each month.”
Being a hybrid dealer, with a blend of commercial, new home construction, insurance, multifamily and retail work, requires BFC Flooring & Design Centre of Edmonton, Alberta, Canada, to offer different pay structures. “The mixture is a profit-share structure with a monthly draw, straight profit share and a salary with a bonus structure based off of invoice total and profit margin,” explained Rebecca Tonowski, manager.
Bob Pireu, co-owner of Bob & Pete’s Floors in Canton, Ohio, said the company is actively working through a compensation model that is still in flux. “Currently our sales team is on a 100% commission structure with a draw,” Pireu said. “The draw provides consistency and feels more like a salary, and we monitor performance to ensure sales stay ahead of that draw. As the environment continues to change, I do see value in straight commission with no draw. It tends to create more urgency, rewards productivity and protects the store’s bottom line since compensation is directly tied to sales. I understand that this can feel risky from a salesperson’s perspective, but experienced and high-performing salespeople are generally comfortable with that structure.”
That said, this year Pireu said he’s planning to adjust to more of a hybrid approach. “The plan is to offer a guaranteed base salary with commission earned on top of it,” he explained. “This meets in the middle; it provides stability and comfort while still putting pressure on performance and closing jobs. Along with this change, the role will also include benefits that weren’t previously offered, such as two weeks of paid vacation and additional support that used to be earned solely through their commission.”
Conversely, Lake Interiors in Chelan, Wash., pays everyone by the hour, a practice that has been going on for more than three decades. “We also have quarterly bonuses for the store employees based on the store sales and profits,” said Don Cantor, owner. “We have tried base salary plus commission in the past, but that did not work very well because our store works more on a teamwork basis than individual achievements. We employ a ‘we’ or ‘us’ motto rather than a ‘me’ or ‘I’ motto.”
Alternative methods
Increasingly, dealers are getting more creative in how they compensate employees. For example, a standard job at Lake Interiors includes an in-store sales consultant or designer, an estimator-measurer, a purchasing agent, warehouseman for receiving and then an in-house installer to complete the job. “We are always looking for other alternatives for compensation but this works for us now,” Cantor said.
Likewise, Carpet Collection in Lockport, N.Y., has its sales associates do more than selling these days; therefore, a commission-only structure would not be feasible. “We want [RSAs] to help with merchandising and pricing as well as database management,” said Ben Case, owner. “We have also put some warehouse duties, such as receiving, on their plates. We do have one sales associate on commission, but he has been with us for 40 years and is our main estimator. He doesn’t want that to change at this point as he is only a few years from retirement. For the salary employees, I do include sales spiffs on products we are targeting to move, usually old stock or pad.”
CarpetSource USA in Albuquerque, N.M., offers a sliding scale pay structure for its RSAs—the lower the gross profit, the lower the commission; but the higher the gross profit, the higher the commission. Don Lovato, owner, said he’ll know within 30 days whether a sales associate will work out, no matter the pay structure. “With the younger generation I seem to cut them more often and faster than I did with older generations,” he said. “Most of the people I’ve hired over the years have come to me by referral or through a friend of a friend, or somehow there’s a connection. I find it very challenging to hire people that I don’t know anything about. If possible, even if you have to pay a little bit more, it would be worthwhile getting somebody within your own personal or business network.”
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