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Bonus on Total Group Production |
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Bonus on New Members Referred |
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Bonus on Consistent Production |
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Bonus on Cost Effective Production |
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Bonus on Individual Production |
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Loyalty Bonus rewards consistent production and prolonged participation. Beginning in the third year, members are participate in the loyalty bonus. The loyalty bonus is a profit sharing bonus calculated by the accountants. A net profit computation is made and that figure is apportioned to members based on their participation points. Participation points are award for a members total annual production multiplied by their number of membership years, plus all production in a members referral string (all agents they have referred, plus all agents their referrals have referred, etc. up to ten levels). The loyalty bonus calculation also rewards members who who conserve agentMAX support services. Example: I. M. Life-Broker joined agentMAX Production Exchange five years ago and placed $8,000 of premium with agentMAX qualifying agencies this year. He also referred two agents which grew into a referral string of 1,024 agents, who produced a total of $4,095,000 in life premium. Two Loyalty Bonus components would be computed for I. M. Life-Broker: one based on the $4 million plus in premium produced by the referral string and one based on I. M.'s personal production and his tenure. The bonus would be calculated on $40,000 of personal production ($8,000 annual production * 5 years of membership). The two components would be added together and paid monthly in equal installments.
The Loyalty Bonus phases in over years three and four and is is fully vested for current members at the end of year five.
Consecutive
Membership
Participation
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% of Loyalty Bonus Paid
To Member / Producer |
3 Years |
25% |
4 Years |
50% |
5 or More Years |
100% |
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**All members are eligible for the loyalty bonus, including Anchor members.
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Share Bonus
is based on the total group production with each carrier. The Share Bonus is paid in addition to the agent's contractual commissions.
Since each company pays bonuses differently, and the production volume going to each carrier varies with the market place, each company bonus is handled separately. agentMAX periodically announces carrier bonus levels and that amount is paid all current business. Shared Bonuses are retroactive and catch-up occurs on the first bonus and at year end.
Example: A member contracts with company D at the starting level of 95% for 20-year level term. In month three the agentMAX group hits the first company D bonus level. Members are notified that Company D now pays a 6% bonus and members with previously paid business receive a catch-up bonus. Later in the year the Company D bonus goes to 9% and then to 15%. Members placing business with Company D receive these additional bonuses as earned. At year end a catch-up bonus is calculated and members are paid retroactively to the first dollar of premium for their respective business. You must be a member to receive your catch-up bonus. Drop out members forfeit their catch-up privileges.
One half of the cost of processing the member's new business is subtracted from the Share Bonus. This accounting procedure allows us to pay a higher bonus to a greater number of members, because it keeps the efficient producers from subsidizing the marginal producers. In a normal agency setting commissions are set at a level that takes into account all overhead. This penalizes producers who submit higher premium cases and clean cases because they pay a misappropriate share of the agency overhead. agentMAX corrects this inequity with state of the art cost allocation accounting. (see Processing Fees).
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Referral Bonus rewards members for helping add new agents. To qualify for reward payments, a member merely refers other producers. All we need is a name and phone number, we do the rest. One of our communication associates contacts the referral and tells the agentMAX story.
The referring member receives a bonus on the new agent production for five years. Share and Anchor members may opt out of the Reward Plan and make other recruiting choices.
Click Here to see a Referral Bonus Example of $2,500 Annual Brokered Production.
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10% Trial Bonus - Click Here