INDEPENDENT STRATEGIC MEMBER (ISM) COMPARATIVE INCOME WORKSHEET
(print version)
This
worksheet will allow you to compare your current situation with that of
becoming a Member of Brokerage Alliance Network of Illinois, LLC. Enter your
current numbers in the space provided and calculate the return on writing
$1,000,000 in premium. Because your renewal commissions are reduced, the
worksheet shows two years of income generated from the original $1,000,000
in premium.
| |
Current |
Independent Strategic
Member |
| Premium |
$1,000,000 |
$1,000,000 |
| Average 1st Year Commission
|
|
15% |
| 1st Year Total Commission
|
|
$150,000 |
| Profit Sharing & Excess Compensation
|
|
$12,000 |
| On-going Automation Charges
|
|
$0 |
| Total 1st Year Income |
|
$162,000 |
| Average Renewal Commission
|
|
15% |
| Average Retention Ratio |
|
95% |
| 2nd Year Commissions |
|
$142,500 |
| Profit Sharing & Excess Compensation
|
|
$11,400 |
| Automation Charges |
|
$0 |
| Total 2nd Year Income |
|
$153,900 |
| Total 2 Year Income from
original $1,000,000 Premium |
|
$315,900 |
| Brokerage value (Value of expirations)
at end of year 2 from original premium base |
|
285,000 |
|