Flat Commission
What Does Flat Commission Mean?
A flat commission is a fee paid by an insurance company to an insurance agent each time the agent sells a policy for the company. In this arrangement, the type of policy sold does not matter; as long as the insurance agent sells a policy, they receive the commission.
Insuranceopedia Explains Flat Commission
Commissions are a way to incentivize insurance agents to sell policies: the more policies they sell, the more they are paid. Commissions may be provided in addition to a traditional salary or as an alternative to it.
A key benefit of a flat commission is that it allows the insurance agent to earn a profit from selling any type of policy the insurance company offers. This flexibility enables agents to focus on meeting market demand rather than being restricted to selling a particular type of policy.
