How to Create a Compensation Plan

This article is intended to help Agents get familiar with the AgencyZoom Compensation Plan Wizard.

The AgencyZoom Compensation Plan Wizard is capable of calculating very complex compensation plans. It also has the ability to calculate commission based on net issued premium (after cancellations and chargebacks).

Creating a compensation plan in AgencyZoom is easier than you think.  We encourage you to follow along with this article and create a compensation plan with us.

 

0. Getting to the Compensation Plan Wizard

 

Only the Agency Owner or Account admin with Comp privileges has the necessary permission to access the Compensation Wizard.

  • From the main menu, go to My Agency
  • Click on Setup Comp
  • To create a new plan, click on Create New Plan

 

 

1. Getting Started

In this section, all you have to do is name your compensation plan then select the users it applies to. Once done, go to the 2nd tab to set the Base Pay.

 

2. Base Pay

Select the Base Pay type.  For Hourly base pay, you can use the Hourly timesheet tracker to allow the users to manually log their time. You can also consider using our HR Management system that provides clock-in/out options, PTO request feature and many other HR features.  

Once done, you can click on the 3rd tab to set your Commission Tiers.

 

Tips:

    • Select 100% Commission if you would like AgencyZoom to just calculate the commission.
    • For employees with different base pay, you can create multiple compensation plans for each employee. 
    • Do you calculate commission based on Issued Business? Select Yes for true term chargebacks, this will provide a more accurate calculation by ignoring policies that have cancelled after the first renewal.

 

 In this example, we are selecting 100% commission as our base pay.

 

 

 

3. Commission Tiers

In this section, you can set your P&C commission tiers which includes, boosters, setting commission qualifiers, setting benchmarks, and much more. 

Although this part may seem intimidating, all you need to do is answer the questions for each tab. Go ahead! Click Create Tier from the top right corner and give it a try.  

If you don't understand a question, just click the Explain link for further details.

Tips:

    • Do you have multiple commission level qualifiers (e.g. Items and Premium)? Under Benchmark, select all that applies in the first question Advancing to a higher commission tier is based on?
    • Do you have different compensation plans? Perhaps one for each carrier? You can create separate plans, just select the carriers that apply under the Carriers tab. You will be asked if you'd like to create another tier towards the end of the Commission Tier wizard, click Yes, then update the Carriers tab with the other set of carriers.  
    • The same concept is applied to creating different compensation tiers for different policy types.  For example, you create a compensation tier for home, another for auto and a third for everything else. 

In this example, we are creating a compensation tier that calculates based on issued net business (after chargebacks), no commission on renewals, pays on all carriers and all policies by % of premium and items are used to advance to the different commission levels.  The first commission level is from 0 to 14 items at 5% of the premium, then at 15 items the pay increases to 7% and pay 9% of premium when reaching 30 items.  

 

 

4. ALR Commission

Do you have a licensed financial specialist that's part of your staff? You can use this section to calculate commission for Life and Finance production. Click this link for instructions on how to setup and use the Life and Finance lead management system.

 

Tips:

    • Use the Bonus tab if you would like to pay agents per kept appointments or a lump sum bonus based on life and finance production. This section is used to calculate commission for issued life policy, per life policy. 
    • The Cap Per Deal field is used if you would like to limit the commission earned per deal.  For example, if John Doe has 2 life policies issued, but you don't want to pay for each policy, you can set a maximum limit earned per deal. Leave this field blank if you would like to pay for each issued policy with no maximum.

In this example, we are paying the person who set the appointment $20 per issued policy and the financial specialist $50 per issued policy. You also have the option to pay by % of production credit.

 

5. Bonus

Are you feeling extra generous? Want to boost morale and help motivate your agents to sell more? This section has many bonus plan options. Just click Add New and select a bonus type then complete the fields.

 

In this example, we are creating 2 bonus plans. One that pays a monthly bonus of $300 if 30 items are reached and another is based on Life and Finance performance that pays $200 if 2 policies are issued

 

6. Team Disqualifier

This section allows you to set any team goals or thresholds that must be reached before the agent's individual plan is activated.  For example, you can set a threshold of $50000 in premium as a team goal where unless the entire agency produces that amount of premium no one will receive any commission (base pay is excluded).

 

In this example, we decided not to set a team disqualifier. Just click Yes if you would like to set one.  You will see additional questions appear to help you configure this option.

 

 

7. Plan Validation

This section is optional.

The validation plan is designed to help you test your compensation plan before using it.  

You must have your Dash and iVantage reports uploaded before using this function if you are paying based on issued business. Click this link for instructions on how to download and upload the necessary Dash and iVantage reports. 

 

 

You're all done! Make sure to click Save (from the top right corner).  The only thing you need to do next is to calculate your payroll!  Click this link for instructions.

 

 

 Still have questions? Contact Support.

Was this article helpful?
1 out of 1 found this helpful

Comments

0 comments

Please sign in to leave a comment.