Calculating Split Commissions

To calculate your commissions, use the following formula:

(Commissionable Amount) x (Field %) x (Level %) x (Split %)

CALCULATION EXAMPLE:

Company:                                                        LSW

Writing Date/Application Sign Date:             03/01/2011

Product Name:                                                Flex Life

Provider Reference:                                        5582

Field Percent:                                                  75%

Writing Agent:                                                Level 15 (PVP)           –Split 70%

Split Agent:                                                     Level 20  (VP)            –Split 30%

Commissionable Amount: $800.00 (Per Provider)

Writing Agent:

TA:   $800.00 (Commissionable Amount) x 75% (Field %) x 30% (level 05) x 70% (Split %) = $ 126.00

SA:   $800.00 (Commissionable Amount) x 75% (Field %) x 10% (level 10) x 70% (Split %) = $   42.00

PVP: $800.00 (Commissionable Amount) x 75% (Field %) x 15% (level 15) x 70% (Split %) = $   63.00

Total payment $ 231.00

Split Agent:

TA:   $800.00 (Commissionable Amount) x 75% (Field %) x 30% (level 05) x 30% (Split %) = $ 54.00

SA:   $800.00 (Commissionable Amount) x 75% (Field %) x 10% (level 10) x 30% (Split %) = $ 18.00

PVP: $800.00 (Commissionable Amount) x 75% (Field %) x 15% (level 15) x 30% (Split %) = $ 27.00

VP:   $800.00 (Commissionable Amount) x 75% (Field %) x 45% (level 20) x 30% (Split %) = $ 81.00

Total payment $ 180.00

 OR using your Commission Statement

 (Total Field Commission) x (Level %) x (Split %) = Commission

Writing Agent:

$600.00 x 30% (level 05) x 70% (Split %) = $ 126.00

$600.00 x 10% (level 10) x 70% (Split %) = $   42.00

$600.00 x 15% (level 15) x 70% (Split %) = $   63.00

Total payment $ 231.00

Split Agent:

$600.00 x 30% (level 05) x 30% (Split %) = $   54.00

$600.00 x 10% (level 10) x 30% (Split %) = $   18.00

$600.00 x 15% (level 15) x 30% (Split %) = $   27.00

$600.00 x 40% (level 20) x 30% (Split %) = $   81.00

Total payment $ 180.00

*Note: Commissionable amount is not displayed on commission statements.

Note: Above calculation is for illustration purposes only. Numbers may vary depending upon product, actual commissionable amount, field percent and agent level.