How it works
Cancels come from a few places: buyer’s remorse, a spouse who wasn’t at the table, financing that didn’t get approved, a lower quote from someone else, or a rep who promised something production can’t deliver. Under the FTC Cooling-Off Rule, buyers have 3 business days to cancel most sales made in their home, so some cancels come with in-home selling.
Some companies count financing declines separately as credit rejects. Whichever way you count, keep it consistent across reps.
Why it matters when you hire
A high close rate with a high cancel rate usually points to pressure selling, and a rep who sells jobs that cancel costs you twice: once for the lead, and again for the production time you held. Ask every candidate for both numbers, and how they keep a deal together after they leave the house.
Decide before you hire whether commission is clawed back when a job cancels, and say so in the offer. Reps should hear it up front, not on their first short check. Surprises on pay lose good reps quickly.