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Decision Matrices for Commissions
Decision Matrices give you a way to implement complex rules in a systematic, readable way. To calculate commissions based on something more complex than a fixed percentage rate, you start by setting up Decision Matrices.
Use a flat matrix to have a single rate apply to a given premium. Use a tiered matrix to have different rates apply to each portion of the premium (like 5% for the first $1,000, 10% for the next $4,000, and so on).
Example: With this flat matrix, a $1,500 premium earns a 10% commission ($1,500 x 10% = $150). Premiums of $4,999 or more generate a 15% commission.
Premium Low |
Premium High |
Rate |
|---|---|---|
0 |
999 |
7% |
1,000 |
1,999 |
10% |
2,000 |
4,999 |
12% |
4,999 |
15% |
Example: With this tiered matrix, the first $999 of a $1,500 premium earns a 5% commission, and the next $501 earns 10%. That's ($999 x 5%) + ($501 x 10%), or $49.95 + $50.10 = $100.05.
Producer Total Premium Low |
Producer Total Premium High |
Rate |
|---|---|---|
0 |
999 |
5% |
1,000 |
5,999 |
10% |
6,000 |
9,999 |
15% |
10,000 |
20% |
