Want to know how your commission is calculated each week?
Production (GAP) X Commission% X .60 (Advance) = Commission
So, lets put this model to life.
GAP is the Gross Annual Premium associated with each policy you sell. If the sold policy has a premium of $125/month then the GAP is $1,500
($125 x 12 = $1,500).
Your Commission % is the contracted commission you earn as an agent. As a new agent this number is 30%.
The 60% (.60) advance Globe Life's way of paying us in ADVANCE for our work. Instead of paying agents month by month, they pay us for 7 months of commission up front!
So lets say you sold 5 policies at $125/month each.
$125 x 12 = $1,500 GAP
$1,500 GAP x 5 policies = $7,500 TOTAL GAP
$7,500 x .30 x .60 = $1,350 commission
If you understand the above equation, keep reading below to understand how to set your production goals around your monthly budget.
Now lets say you need to earn a specific amount of earnings to meet the financial demands of a particular vacation, or you are budgeting around a particular number. You can always use the inverse equation to figure out how much GAP you need that week to earn a specific commission. For instance, lets say I need my commission check to equal $1,000 each week.
$1,000 / .30 / .60 = $5,555 GAP
Using the above equation I would need to generate $5,555 in GAP each week.