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.