D2D glossary / How reps get paid
What is residual commission in door-to-door sales?
Residual commission: Residual commission is ongoing pay for as long as a customer you signed keeps paying for the service. It is less common in door-to-door sales than one-time commission and appears mostly in energy and telecom.
With a residual, each active customer pays you a small amount every month. One account is worth little, but a large book of accounts that stays active can add up over time. Retail energy and some telecom and merchant-services programs use residuals.
Residuals usually depend on you staying with the company or meeting activity minimums. The agreement decides whether they continue if you stop selling or leave, so the vesting terms matter more than the monthly amount.
Ask before you sign
Do residuals continue if I stop selling or leave, and what minimums must I keep?
Related terms
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Residual commission: quick answers
What is residual commission in door-to-door sales?
Residual commission is ongoing pay for as long as a customer you signed keeps paying for the service. It is less common in door-to-door sales than one-time commission and appears mostly in energy and telecom.
What should I ask a company about residuals?
Ask this before you sign: "Do residuals continue if I stop selling or leave, and what minimums must I keep?" Get the answer in writing, in the rep agreement or the pay plan.