I am a guy who was an independent contractor, or dealer, for three different Regional General Distributors (RGD) as they are known as in the Rainbow business. Each RGD has satellite distributor offices and those, in turn, have area distributor offices. I began my adventure with Rainbow back in the late 80's and have continued off and on with different RGDs. I worked in Portland, OR, in The Dalles, OR, in Longview, WA, in University Place, WA, in Phoenix, AZ and in Tempe, AZ. All RGDs are required to run their offices the same. The training is similar as well as the commission structures.
Most of them start a dealer out at a base commission of $200 approximately. After so many sales, let's say 10 for this purpose, they advance to the next level, after 10 or 15 to the next level and so on. I earned anywhere from $300 to $500 a sale, depending on where I was and how much experience I had. The demonstrations were based on appointments by invitation only. NO DOOR TO DOOR! As and example, the first place I worked was Rainbow of Oregon, in Portland. There I was trained for week. Then I went out on what they called a "count down" weekend, where I showed friends and neighbors the Rainbow.
The pay was set as follows: 60 demos a month equaled $1200, in 1986. As long as I did the 60 demos a month, I got the guarantee. If I made any sales during a month, I would be paid on each sale that the financing went through on or a cash sale. My guarantee was deducted from the commissions I was paid. For example, If I made 12 sales that month, which I usually did, and paid $2400, I would not qualify for the guarantee.
This is how all RGDs operate. I am sorry for the person's experience. It was a Rainmate, not a Rainbaby, by the way. Yes, the Rainbow E2 does sell for over $2000, but there are discounts, etc. that are given to the customer. There are people on all businesses who are jerks. I have run into a few when working in Rainbow. But, please do not blame Rainbow for the conduct of some idiot who happens to be a manager in a Rainbow office. We are not all like that.
The product is a good one, I made a lot of money as a dealer. The company is a good company. I am personally aware of problems in all the offices I worked in, but no one I knew ever tried to rip off anyone. If they did, they would have been let go by the distributor and if the distributor tried anything like that, then Rexair, who is the manufacturer and owner of Rainbow, would have fired the distributor.
I hope this makes clear how the RGDs operate and how the commissions work.
Chuck Logan