Cafe Serendipity Holdings Inc. (CAFS)

[lesgetrich]

The highest volume sales in insurance are home and auto policies and they average between 10% and 20% commissions plus production bonuses and renewal residuals. Life insurance is a harder sell and garners 40% to 75% of first year premiums with very small (e.g. 5%) residuals.

Commissions are totally dependent on the products being sold and industry as was pointed out previously. However, a company has to insure that the employee will get a decent wage if they meet their quota in order to attract qualified sales people. The revenue is reported as gross and the cost of the reps comes out of operating expenses.