(1) Long-term contracts of 5 years, 10 years or 20 years are not required for annual insurance, which is generally about 20% of the annual premium.
(2) For long-term contracts (especially/kloc-more than 0/5 years), the payment period is also long (generally more than 5 years), generally the highest in the first year, reaching 30%-50% of the annual premium, and then decreasing year by year.
(3) Long-term contracts (especially 15 years or more), but the payment period is short (generally within 5 years), and the proportion is relatively low, which may be around 10% in the first year. In particular, the proportion of one-time sex life is generally only about 2%
Extended information
For the commission system, it is very important to determine the appropriate commission ratio. Appropriate commission ratio will motivate sales staff to work hard. Too low has no incentive effect, and too high will affect corporate profits. Therefore, it is very important to determine the appropriate commission ratio according to the market situation and enterprise strategy.
There are generally two ways of royalty ratio: fixed royalty ratio and progressive or decreasing royalty ratio. Fixed royalty ratio means that all achievements are divided into fixed proportions. Progressive or regressive method refers to increasing or decreasing the share ratio in different performance intervals to improve incentives, which of course depends on product characteristics and cost structure.