Commspace allows you to specify rule-based conditions within one agreement, allowing you to consolidate your agreements with more intuitive allocation strategies. Within any agreement version, you can specify whether any particular split rule is applicable to, for example, certain commission types or products. Whenever revenue is then earned that complies with these specifications, the system will automatically allocate the income according to the rule you specified.
For the purposes of this article, we will work through various case studies to explore the following conditional options:
Commission Group
Commission Type
Product Group
Product Category
Provider
Secondary Provider
Any combination of the above
When setting up a conditional agreement, all available conditions can be found here:
Case Study 1: Product Groups
Advisers will receive:
70% on all Investments.
50% on any other products, including Risk, Employee Benefits, Short Term, and Health.
The remainder will be allocated to the business.
Let’s see what the rules would look like:
Case Study 2: Product Group and Product Categories
Advisers will receive:
60% on all Investments.
80% on Tax Free Investments.
As all Health is referred to the adviser by a Referral Company, the split will be 50% to the adviser, 20% to Referral Company and the remainder to the Business.
50% on any other products.
The remainder will be allocated to the business.
Let’s see what the rules would look like:
Case Study 3: Commission Group
Advisers will receive:
80% on all recurring income and
50% on all other income.
The remainder will be allocated to the business.
Let’s see what the rules would look like:
Case Study 4: Commission Group and Commission Type
Advisers will receive:
50% on any initial commission.
60% on second year and ACI renewals commission.
80% on any other commission.
The remainder will be allocated to the business.
Let’s see what the rules would look like:
Case Study 5: Combination of all conditions
Advisers will receive:
40% on any initial (thus 1st year and 2nd year) commission on Risk products, as well as any reversals.
80% on any recurring commission on Investment products.
90% on any recurring commission on Tax Free Investments.
60% on any other commission. This will include recurring commission on risk products, initial commission on Investments, any commission on Health, Employee Benefits and Short Term products, as well as direct fees.
The remainder will be allocated to the business.
Let’s see what the rules would look like:
Pro Tips:
Before starting with the setup, consider how Commission Types and Product Categories are grouped on Commspace. You want to be as specific as needed, without overcomplicating the setup or possibly missing some scenarios.
Always set up a catch-all rule, without specifying any conditions. (Refer to rule 4 of Case Study 5 above)
We recommend that you get in touch with us to help you with your first conditional agreement setup.
If you are interested in learning more about Group Scheme Strategy and Instrument conditions, you are welcome to contact us.