You now have the option to receive advance instalments against your upcoming monthly commission payment.
If you choose to receive the advance payments, it won’t affect the total amount of commission you receive or your splits – this is all about timing of payment. Also, your payees and referrers will continue to be paid at the end of each month as normal.
Example 1 – simple example
As an example, if you’ve have earned $10,000 in upfront commission, you could elect to receive advance instalments of $2,000 and $3,500, with the balance of $4,500 paid in the main payment batch at the end of the month.
Example 2 – with payee splits
Here’s a simple worked example for a group with payee splits.
In this example, the broker’s average splits in previous months were 40%, so the Instalment Percentage was 60% (100% - 40%).
The actual payee splits in the example were 35%.
This example ignores trail commission, which would be paid as normal.
A broker who did opt into receive instalments would receive three payments, throughout the month, adding up to $6,500. The $3,500 payee splits would be paid at the same time as the Main Commission Batch.
In this example, a broker who did not opt for instalments receive one payment of $6,500 at the end of the month, and their $3,500 payee splits would be paid at the same time.