Auto Renewal Logic Capabilities
Overview:
In this article, we'll review Brokerage Engine's Auto Renewal Logic Capabilities in the System.
Brokerage Engine has updated its Auto Renew functionality to support multiple logic types. Commission schedules can now be configured using one of the following five renewal options:
- Full-Reset:
The commission plan will renew on the end date of commission schedule at midnight. The agent's accumulation will reset to $0 and the agent will start back at the first level regardless of what level they have earned up to.
- Keep-Split-Level:
Agents start each year at the commission level earned the previous year, but their production balance resets to zero. To keep that percentage or level up, they must hit specific performance targets; if they fail to meet the minimum production requirement, they drop back by exactly one level.
Example (using the screenshot below):
Year 1 - Agent reached 80%.
Year 2 - Agent will start off at 80%, however, will have $0 going towards accumulation.
Year 3 -
- If the agent reaches the $10,000 they will remain at the 80% for year 3.
- If the agent reaches $15,000 (90%) in year 2 the agent will start the year 3 off at 90%.
- If the agent only reaches $3,000 (60%) in year 2 and did not maintain production then the agent will fall back ONE level.
- Keep-Split-Maintenance-Level:
The agent's commission percentage is protected until they reach the highest threshold. Once a threshold is achieved, the agent begins the following year at that same rate with $0 towards accumulation. They will remain at this percentage regardless of annual production until they earn enough to move to the next level. The only exception is the highest threshold, which must be maintained to prevent a percentage reduction in subsequent years.
Example (using the screenshot below):
- Year 1 - The agent reached 70%.
- Year 2 - The agent will start at 70%, however, will have $0 going towards accumulation. They will remain at 70% until they are able to accumulate enough to reach the next level. They do not have to maintain production in order to stay at this percentage. Once the agent is able to reach $15,000 (90%) within a year's time they will start the next year off at the second highest threshold. It will not move the agent's percentage back one until the highest threshold is met.
- Keep-Minimum-Rate:
The agent's commission percentage is protected against decreases. Once an agent achieves a specific threshold, they will never roll back or reset to a lower rate, regardless of subsequent performance. If an agent exceeds their current level during a production year, they will move to the higher percentage for the following year; otherwise, they simply retain their highest rate.
Example (using the screenshot below): The agent's commission percentage is protected against decreases. Once an agent achieves a specific threshold, they will never roll back or reset to a lower rate, regardless of subsequent performance. If an agent exceeds their current level during a production year, they will move to the higher percentage for the following year; otherwise, they simply retain their highest rate.
- Year 1 - The agent reaches 80%.
- Year 2 - The agent only reaches $3,000 (60%). However, the agent will stay at 80% for year 3. During year 3, the agent reaches 90%, so agent will remain at 90%.
- Rollback-One-Level:
At the start of each new year, an agent’s status is reset to one level below their peak achievement from the previous year, with their accumulation progress returning to $0. If an agent fails to meet the requirements of their current threshold during the year, they will continue to roll back in the following period based on that year's final standing.
Example:
- Year 1 - The agent reaches LV3.
- Year 2 - The agent starts at LV2 with $0 towards accumulation. They reach LV4 by the end of the year.
- Year 3 - The agent starts at LV3 with $0 towards accumulation. They only reach LV2 by end of the year.
- Year 4 - The agent starts at LV1 with $0 towards accumulation.
- Reset to Earned Level:
Annual commission levels are determined by previous year's performance. At the start of each new year, an agent's accumulation resets to $0, and their starting threshold is set to the specific level they earned during the preceding year. This "look back" rule applies consistently across all levels; even agents at the highest threshold must re-qualify annually to maintain their position for the following year.
Example (using the screenshot below):
- Year 1 - The agent reached 70%.
- Year 2 - The agent will start off at 70% with $0 towards accumulation. The agent only reached 60% during year 2.
- Year 3 - The agent starts at 60% with $0 towards accumulation.
Quick Reference:
This guide provides step-by-step instructions for locating the Auto Renew Type field within the Brokerage Engine commission schedule setup.
