Split Commission
A split commission is when two or more insurance agents share the commission from a single sale.
Think of it like splitting a pizza. Everyone gets their agreed-upon slice of the same pie.
Why does this matter?
Split commissions enable collaboration between agents while ensuring fair compensation for everyone involved.
Without proper split arrangements, agencies would struggle to incentivize teamwork, mentorship, and collaborative selling.
How it works is straightforward.
When a policy is sold with multiple agents involved, the total commission gets divided according to pre-agreed percentages. The insurance carrier pays the full commission to the agency, and the agency then distributes the appropriate portions to each agent based on their contribution.
You'll encounter split commissions most commonly when a listing agent works with a selling agent, when a senior agent mentors a junior agent through their first sales, or when agents collaborate across different specializations to serve a client's complex needs.
The biggest mistake agencies make?
Not having clear, written agreements upfront. This leads to disputes and damaged relationships when the commission check arrives.
Example:
Sarah is an experienced life insurance agent who brings in a large corporate client needing both individual life policies and group coverage. Since she doesn't handle group insurance, she partners with Mark, who specializes in group policies. They agree to a 60/40 split on all commissions from this client. When they sell $500,000 in total policies generating $25,000 in commission, Sarah receives $15,000 (60%) and Mark receives $10,000 (40%). Both agents are happy because Sarah found the client and Mark provided the group expertise neither could have delivered alone.
How Earn Base Helps
Automatically calculates splits based on your pre-configured rules, ensuring each agent sees their exact share in real-time. No more manual calculations, no more disputes about who gets what.