Commission Tracker: Commission Per Payment vs. Carrier Tables

As an insurance agent, you know that efficient commission tracking can set you apart in a competitive industry. Commission Tracker offers different ways to manage your commissions, and understanding these options is key to maximizing the software’s potential. Let’s explore the difference between using the Commission Per Payment field and Carrier Tables, and how each can streamline your commission cycle.

Commission Per Payment

The Commission Per Payment option allows you to manually enter the total commission you expect to receive for each payment.

• How it works: Instead of creating a Carrier Table, you enter the expected commission amount directly into the Commission Per Payment field for each policy.
• Best Use: The source indicates that this method is useful if you do not wish Commission Tracker to calculate your Expected Commission or are not worried about being paid correctly by the carrier and are simply using Commission Tracker to pay your agents.
• Example: If the premium is $1,000 per payment and the commission is consistently $100 per payment, you would enter $100 in the Commission Per Payment field.
• Limitations: While straightforward, this method requires you to manually calculate the expected commission outside of Commission Tracker.

Carrier Tables

Carrier Tables are designed to calculate the commission expected from carrier statements. When you create a new policy, you select from a list of commission tables that you have created for that specific carrier.

• How it works: Carrier Tables store specific information on each carrier’s commission structure. The software then automatically applies the information in the table.
• Best Use: According to the source, normally, you will need to create a Commission Table for each different “product” because your commission changes depending the type of product sold.

 

Benefits:

• Automation: CT will then use these tables to automatically calculate your Expected Commission each month.
• Accuracy: By building your carrier commission scales into the system, Commission Tracker allows you to calculate your book of business to the penny. The source notes that setting up a graded carrier table is quick and easy, without making you create formulas.
• Agent Splits: Agent splits make it easy to allocate the correct commission percentages to each agent, ensuring that everyone receives their fair share, regardless of the complexity of the split. The source notes that when defining the agent splits on the carrier tables, you are defining the agent split for all policies using that carrier table and the splits are then automatically applied to the correct agent at the correct rate after the payments are posted.
• Reporting: Carrier Tables are the foundation for powerful reports like the Book of Business report and the Payment Discrepancy Report.

 

Types of Carrier Tables supported by CT:

• Flat Carrier Table
• Graded Commission Table
• Scheduled Commission Table
• Pay Per Subscriber

Which Method Should You Choose?

• If you want to save time, improve accuracy, and take advantage of Commission Tracker’s advanced reporting, Carrier Tables are the way to go.
• If you’re primarily focused on paying agents and don’t need detailed commission tracking or discrepancy reporting, the Commission Per Payment field may suffice.
• You can mix Carrier Tables and Agent Commission Split Tables by assigning different Commission Start Dates.

By understanding the strengths of each method, you can tailor Commission Tracker to meet your specific needs and streamline your commission management.