Commission is the payment earned by the intermediary for work undertaken on behalf of both the provider and the consumer.
The amount of commission is generally directly related to the quantity or value of the products sold.
There are different types of commission models:
Single commission model: where payment is made to the intermediary shortly after the sale is completed and is based on
a percentage of the premium paid/amount invested/amount borrowed.
- Trail/Renewal commission model: Further payments at intervals are paid throughout the life span of the product.