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Broker Commissions Process
The TELUS TPM platform provides comprehensive broker commission management capabilities, enabling clients to establish, maintain, and execute broker compensation programs with full automation and audit trail functionality. The system facilitates end-to-end commission processing, from relationship configuration through payment documentation and distribution.
Strategic Business Value
Automated Commission Processing:
- Efficiency Enhancement: Streamlined monthly commission calculations and reporting
- Accuracy Assurance: Systematic processing reduces manual errors and ensures consistent application of commission structures
- Audit Compliance: Complete documentation and backup generation for financial reconciliation and regulatory requirements
Relationship Management:
- Comprehensive Tracking: Complete visibility into broker-distributor relationships and associated commission structures
- Performance Analytics: Detailed reporting on commission payments and broker performance metrics
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Five-Phase Process Framework
Phase 1: Broker-Distributor Relationship Administration
Objective: Establish and maintain foundational business relationships and commission eligibility parameters
Key Activities:
- Relationship Configuration: Define and document broker-distributor partnerships and authorization structures
- Eligibility Management: Establish commission qualification criteria and performance requirements
- Hierarchy Maintenance: Configure organizational structures and reporting relationships
Phase 2: Contract Development and Configuration
Objective: Create comprehensive commission agreements with detailed terms, rates, and performance criteria
Key Activities:
- Contract Creation: Develop broker commission agreements with specific terms and conditions
- Rate Structure Definition: Establish commission percentages, tiers, and calculation methodologies
- Performance Metrics: Configure key performance indicators and qualification thresholds
Phase 3: Sales Data Integration and Validation
Objective: Ensure accurate and timely data flow for commission calculation processes
Key Activities:
- Data Transmission: Systematic upload and integration of sales performance data
- Validation Processes: Quality assurance and accuracy verification of sales information
- Data Reconciliation: Alignment of sales data with commission contract parameters
Phase 4: Monthly Commission Processing and Approval
Objective: Execute automated commission calculations and obtain necessary approvals for payment authorization
Key Activities:
- Automated Calculation: System-generated commission computations based on sales performance and contract terms
- Review and Validation: Quality assurance review of calculated commission amounts
- Approval Workflow: Formal approval process for commission payment authorization
- Exception Management: Resolution of calculation discrepancies or unusual circumstances
Phase 5: Documentation and Payment Distribution
Objective: Generate comprehensive backup documentation and facilitate payment processing
Key Activities:
- Backup Generation: Creation of detailed commission statements and supporting documentation
- Payment Processing: Coordination of check generation and distribution to brokers
- Record Maintenance: Comprehensive documentation for audit trails and financial reconciliation
- Stakeholder Communication: Distribution of commission statements and payment notifications
Step 1: Build Broker/Distributor Relationships
There are three ways to build the broker/distributor relationship:
- Via visibility feed or Admin tool. Here you’d tell GoSimple what brokers you use and what distributors each of those brokers are responsible for.
- Using Broker/Distributor Assignment, track what broker owns each distributor with the ability to track start/end dates. There is a data feed to auto manage this, or the Admin tool to manually manage. See broker_distributor_assignment for more information.
- Tell us directly in the sales feed on each line. This is preferred.
Brokers themselves come in via the Company feed or the client enters them manually via the Admin tool.
Step 2: Build a contract with a broker
Create a contract for a particular broker, timeframe, products/product groupings, and pricing options offered to the broker. See the section setting_up_a_new_contract for specific information on creating contracts.
Determine if there are any backout/exception rules in place on the contract.
Step 3: The client sends a daily/weekly/monthly distributor sales file to GoSimple.
Step 4: Run monthly Commission Process & Approve
Based off the payment schedule in the application, the process grabs all lines of distributor sales data linked to the broker contractee for the products on the contract and timeframe and produces a report to show what is owed. Since there is a link between each broker and distributor, we can now produce a report per broker that shows all the sales for the month for their distributors and bump it up against the contract to show what is owed. An earnings spreadsheet is sent to the client to review and approve.
Step 5: Cut check and send backup to Broker
Once GoSimple receives approval for the payments, claims are generated and included in the next payment file to the manufacturer along with backup so checks can be cut (whether client cuts checks themselves or GoSimple does). The client will also receive the backup per check so they can send it to their Brokers.
Reporting
Ability to see Broker Commission reports that slice and dice the data by broker, distributor, month, product, allowed amounts, etc. via Tableau Broker Commission Reports.
