Commission Split

[ra2783]

I have a premium finance life insurance case where I'm splitting the commission with two other agents. I brought in the clients (existing for me), one agent is the "closer" and the other is the premium finance person. Let's say the target premium is $100,000 and commission split is 70% for me, 15% for the closer and 15% for the PF agent. My contract is at 90% and I don't know what the contract rates are for the other two agents with the company we're using (I'm assuming they're at the 90% level as well).

Is this how the commission split would work out?

Me: $100,000 x 0.9 x 0.7 = $63,000
Closer: $100,000 x 0.9 x 0.15 = $13,500
PF agent: $100,000 x 0.9 x 0.15 = $13,500

 

[WinoBlues]

I have a premium finance life insurance case where I'm splitting the commission with two other agents. I brought in the clients (existing for me), one agent is the "closer" and the other is the premium finance person. Let's say the target premium is $100,000 and commission split is 70% for me, 15% for the closer and 15% for the PF agent. My contract is at 90% and I don't know what the contract rates are for the other two agents with the company we're using (I'm assuming they're at the 90% level as well).

Is this how the commission split would work out?

Me: $100,000 x 0.9 x 0.7 = $63,000
Closer: $100,000 x 0.9 x 0.15 = $13,500
PF agent: $100,000 x 0.9 x 0.15 = $13,500

Hey Raj.

 

[Allen Trent]

I have a premium finance life insurance case where I'm splitting the commission with two other agents. I brought in the clients (existing for me), one agent is the "closer" and the other is the premium finance person. Let's say the target premium is $100,000 and commission split is 70% for me, 15% for the closer and 15% for the PF agent. My contract is at 90% and I don't know what the contract rates are for the other two agents with the company we're using (I'm assuming they're at the 90% level as well).

Is this how the commission split would work out?

Me: $100,000 x 0.9 x 0.7 = $63,000
Closer: $100,000 x 0.9 x 0.15 = $13,500
PF agent: $100,000 x 0.9 x 0.15 = $13,500

The math will turn out the same, but technically you're not splitting the commission on the case you're splitting the premium. So if you are 70% you will have 70,000 of Target Premium credited to you which will then pay whatever commission rate you are on. Then the next agent who's on the case for 15% will get $15k premium credit & paid whatever commission rate he gets on his 15,000 and so forth

 

[Lloyds of Lubbock]

If the guy is a real closer he is not taking 15% unless he is a friend