Commission Information

Overview

This commission plan rewards agents based on office performance, giving them opportunities to earn additional commissions beyond the base rate. The more premium collected by the office, the higher the commission percentage agents can earn.

Key Points

1. Base Commission:All agents receive a base commission of 5%, paid weekly, regardless of the office's performance.

2. Incentive Tiers:Additional commission is tied to the office's collected premium performance:

   • Tier 1 (+2%): Office meets the premium goal.

   • Tier 2 (+4%): Office exceeds the premium goal at 103.25%.

   • Tier 3 (+6%): Office exceeds the premium goal at 106.25%.

   • Tier 4 (+7%): Office exceeds the premium goal at 109%.

   • Tier 5 (+10%): Office exceeds the premium goal at 111.75%.

3. Payment Schedule: Incentive commissions beyond the 5% base are paid on the third Friday of the following month.

4. Your pacing on Tiers can be found on MaxBi or the Master Report

Examples

Example 1: Office Just Meets Premium Goal

• Office Premium Goal: $100,000

• Office Collected Premium: $100,000

• Agent’s Agency Fees: $5,000

• Commission already paid weekly: $5000 x 5% =  $250

• Incentive Tier: Tier 1 (+2%)

  • Commission: $5,000 x 2% (Tier1) = $100 additional

  • Total commission for the month = $250+$100 = $350

Example 2: Office Slightly Exceeds Premium Goal

• Office Premium Goal: $100,000

• Office Collected Premium: $103,250

• Agent’s Agency Fees: $5,000

• Commission already paid weekly: $5,000 x 5% = $250

• Incentive Tier: Tier 2 (+4%)

  • Commission (Incentive): $5,000 x 4% (Tier 2) = $200 additional

  • Total Commission for the Month: $250 + $200 = $450

Example 3: Office Significantly Exceeds Premium Goal

• Office Premium Goal: $100,000

• Office Collected Premium: $109,000

• Agent’s Agency Fees: $5,000

• Commission already paid weekly: $5,000 x 5% = $250

• Incentive Tier: Tier 4 (+7%)

  • Commission (Incentive): $5,000 x 7% (Tier 4) = $350 additional

  • Total Commission for the Month: $250 + $350 = $600

Example 4: Office Far Exceeds Premium Goal

• Office Premium Goal: $100,000

• Office Collected Premium: $111,750

• Agent’s Agency Fees: $5,000

• Commission already paid weekly: $5,000 x 5% = $250

• Incentive Tier: Tier 5 (+10%)

  • Commission (Incentive): $5,000 x 10% (Tier 5) = $500 additional

  • Total Commission for the Month: $250 + $500 = $750

Example 5: Agent Works at Multiple Stores

• Store A Premium Collected: $105,000 (Tier 2 - 9%)

• Store B Premium Collected: $95,000 (Base Tier - 5%)

• Agent’s Agency Fees:

  • Store A: $2,000

  • Store B: $3,000

  • Store A Commission: $2,000 x 9% = $180

  • Store B Commission: $3,000 x 5% = $150

  • Total Commission: $180 + $150 = $330

  • Base commissions already paid: $100 (Store A) + $150 (Store B) = $250

  • Additional Commission: $330 - $250 = $80 additional commission

Important Notes

• The commission is calculated per agent, even if they work in multiple stores. Agents will receive the appropriate commission percentage for the stores that meet or exceed the goal.

• The company reserves the right to adjust the plan’s terms, percentages, or tiers at any time without notice.

• $50 goal meeting bonus is paid out to agents if the office meets Policy, Premium and Afee goal for the month