Frankly, no one can say for sure whether or not commission-based insulation salespeople are honest. We can assume that some are and some are not. Perhaps the appropriate focus should be on the traditional selling structure within which they work and on whether it fosters sincere, authentic behavior.  Then, finally, consider which sales dynamic motivates more truthful interaction between the seller and the buyer.

I’ve been in the insulation and metal building industry for over 40 years; therefore, there isn’t much that I haven’t seen. I sold Quonset huts to large industrial complexes and facilitated the inclusion of accessories, such as insulation material. I state this without sounding egocentric: any sales structure that rewards commission-based salespeople with additional income when they maximize profits incentivizes questionable selling tactics. Let me be more specific with this claim. Yesterday, a consumer told me a price for vinyl-faced fiberglass insulation, which I quickly checked and found to be a 200% markup over the wholesale cost! That is deceptive because the customer had purchased a metal building from this company and wanted to add insulation. He expected it would be a fair insulation price until I told him the company was clearly taking advantage of him.

One can make a strong argument that commission-based selling ties a seller’s income directly to deal closings; therefore, at a minimum, it can subtly push behavior in unhealthy or questionable directions. Here are a few key dynamics at play:

Incentives seem to be misaligned
When anyone’s income or pay is dependent on how much is sold, not on the customers’ goals, satisfaction, or long-term outcomes, the seller’s financial interest will most likely conflict with the buyer’s best interest. Now, what the seller will say or do is determined by the values that have been taught to him. A person with questionable ethics is unlikely to exaggerate or, at a minimum, to use selective truth-telling when conversing with a buyer.

What happens when Commission-based Insulation Salespeople have to hit a quota?

Anyone with monthly or quarterly quotas knows this creates time pressure. The closer one gets to the deadline, the more a commission-based insulation salesman is inclined to:

• Exaggeration or overstating the benefits
• Downplay uncomplimentary terms, risks, possible future costs, or limitations
• Offer products that aren’t the best fit for the customer
  This is done not because commission-based insulation salespeople are “bad people,” but because the system they work in rewards speed and volume over the customer’s need.

Pertinent Information Only the Seller Possesses
Let’s be honest. Most sellers, even someone new on the job, usually know more than the average buyer. Under commission pressure, that knowledge gap is often exploited by:

• Often, these sellers baffle customers with technical jargon.  The confusion sometimes helps the aim of getting the customer to commit before they have thoroughly evaluated the information.
• If key details don’t encourage the sale, they often withhold these details.
• Framing pertinent options or information in misleading ways (“We only have one of the items you desire available)

Long-term relationships are not incentives
Commission-based insulation salespeople are often rewarded for the sale, not the relationship. This focus encourages:

•  A One-time sale wins instead of repeated sales, which only come by trust
• Commission-based insulation salespeople push to upgrade or add-on to the customer’s home, even though the customer may not need the upgrade
• If there is long-term reputational damage, it is ignored in favor of the immediate benefit of a single metal building insulation sale.

Questionable Selling Behavior becomes Normalized
Many metal building and some pole barn insulation sellers, that have a high-commission pay structure, deceptive tactics have become culturally norm:

• They believe that “Everyone else is doing it,” so they feel justified to follow what they believe is industry protocol.
• When the same eventual rewards.

Points to Ponder:
I want to make it clear that commission-based insulation salespeople aren’t themselves the villains. Their questionable sales gimmicks and deception are more likely when commissions are:

• Quota-based with high-stakes consequences
• Limited supervision
• When there are limited consequences to returns, complaints, and cancellations.
• When this poor ethical training and support.

Why Cost-Plus Salespeople are preferred over Commission-based Insulation Salespeople  

I would strongly encourage a consumer to look for a Cost-Plus Insulation Program. This way, the buyer and seller are supported and encouraged to create an outcome in which both parties win. A simple definition of cost-plus fiberglass vinyl-faced insulation selling is a pricing method in which an insulation seller sets their selling price at a fixed markup above their operating cost. An authentic cost-plus program informs the customer of the true cost for the insulation, before added profit. Then an agreed-upon profit or fee is paid once the seller achieves the desired savings for the customer. This scenario encourages a win-win, which is vastly different from the retail commission-based insulation structure that is widely used throughout the US.

Here’s how to calculate the wholesale price for Vinyl-faced Insulation (below):