End of the year commish!

you dont track commissions? what do you track..smiles? give me a break MASTER YODA!


No I don't track them as far as counting them to see where I'm at at any point of the year.

I do look at my commision reports everyday with every company and then my bank statement everyday to make sure the commissions I saw yesterday are in my bank today.

If I have a chargeback on a commission statement I print that off to deduct when I do my taxes but I don't keep a running tab on those either.
 
If you dont know if you made more or less money than you made last year then you are a very poor business man i dont care:d how you word it!
 
If you dont know if you made more or less money than you made last year then you are a very poor business man i dont care:d how you word it!

Dude.. He is a salesman not a desk jockey. You can choose to do two things in this business.. You can spend time running spreadsheets, making projections, etc. or you can spend your time in front of people willing to buy insurance. The latter pays much better..

If I were personally producing more than $200,000.00 per year in first year commissions plus renewals as JD has done year after year, I would feel free to criticize his business acumen..But until I reach that point, I will keep my mouth shut and try to learn from him and others like him. Suggest you would do well by following my example. :yes:
 
I don't track my commissions either and won't know my final numbers until February. I would guess I made more than last year but don't know for sure.

JD, why do you keep track of charge backs? Companies dont deduct those before sending a 1099? Maybe I should start keeping better records. :swoon:
 
I don't track my commissions either and won't know my final numbers until February. I would guess I made more than last year but don't know for sure.

JD, why do you keep track of charge backs? Companies dont deduct those before sending a 1099? Maybe I should start keeping better records. :swoon:

Some do, some don't. RNA, for example, I just use my 1099 from them. The 1099 from from is reflective of all "earned" money. Chargebacks are not earned so they are taken out. But Americo, for another example, give you a 1099 for all you were "paid" for the year. You have to track any chargebacks with them. Same for AmCon.

I can actually credit LH for showing me about that. I always thought before that it's just like you are saying. The 1099 reflects all of that.

At the end of my first full year with LH they sent me a 1099. Then they sent a year end report. The total income was the same but the year end report had the chargeback itemized and they were not taken off the total.

I started asking all the companies then. I find most do it like RNA and you don't have to track it. Some can't explain to you how they do it and act like you are speaking a foreign language when you ask about it.

For those companies I just go to my bank statements on line and total up everything that company paid me. Then compare that to the 1099.

I had one company last year that sent me a 1099 for about $5100. The total deposits I got from that company was about $4000. I'm completely as earned with that company so the difference could not be advances. That means I had an $1100 chargeback with that company.

If you get advances then it's much trickier than that. Some companies only 1099 you on "earned" monies. Some 1099 you on "paid" monies.

I learned that about RNA early on. I didn't contract with them until Oct. I was getting advances from them at that time. When I got my first 1099 from them it was far less that what I knew I had been paid by them. When I called them about it they said the 1099 was earned money. So even though I had been paid $1000's more than the 1099, that money wouldn't show up on a 1099 until the following year.

My accountant says we can adjust the 1099 to what was actually paid and that's fine with the IRS. You just have to do it that way every year after you adjust it one time.

No wonder people get audited. That's why I use a top notch CPA. Not only is she very experienced, she is a partner in the company. It seems to me that the IRS gives a lot of weight to the reputation of the tax preparer.
 
Some do, some don't. RNA, for example, I just use my 1099 from them. The 1099 from from is reflective of all "earned" money. Chargebacks are not earned so they are taken out. But Americo, for another example, give you a 1099 for all you were "paid" for the year. You have to track any chargebacks with them. Same for AmCon.

I can actually credit LH for showing me about that. I always thought before that it's just like you are saying. The 1099 reflects all of that.

At the end of my first full year with LH they sent me a 1099. Then they sent a year end report. The total income was the same but the year end report had the chargeback itemized and they were not taken off the total.

I started asking all the companies then. I find most do it like RNA and you don't have to track it. Some can't explain to you how they do it and act like you are speaking a foreign language when you ask about it.

For those companies I just go to my bank statements on line and total up everything that company paid me. Then compare that to the 1099.

I had one company last year that sent me a 1099 for about $5100. The total deposits I got from that company was about $4000. I'm completely as earned with that company so the difference could not be advances. That means I had an $1100 chargeback with that company.

If you get advances then it's much trickier than that. Some companies only 1099 you on "earned" monies. Some 1099 you on "paid" monies.

I learned that about RNA early on. I didn't contract with them until Oct. I was getting advances from them at that time. When I got my first 1099 from them it was far less that what I knew I had been paid by them. When I called them about it they said the 1099 was earned money. So even though I had been paid $1000's more than the 1099, that money wouldn't show up on a 1099 until the following year.

My accountant says we can adjust the 1099 to what was actually paid and that's fine with the IRS. You just have to do it that way every year after you adjust it one time.

No wonder people get audited. That's why I use a top notch CPA. Not only is she very experienced, she is a partner in the company. It seems to me that the IRS gives a lot of weight to the reputation of the tax preparer.

I think most of my chargebacks were with 5 star this year. I wonder how they handle it. :twitchy:
 
I think most of my chargebacks were with 5 star this year. I wonder how they handle it. :twitchy:

Good luck figuring that out!!:goofy:

That's one that I print out the chargebacks for. At the endo fhte year I will go back and see whart they actually paid me, what the chargeback total is and them compare both of those figures to the 1099 they send.

I bet they won't add up. When I can't provide a reason for the difference my accountant just uses the 1099 numbers.

I didn't make very much in 2012 with 5 Star. In 2013 I did. I'm on track for their convention. Of course I will be off that track very soon.:1wink:
 
Good luck figuring that out!!:goofy:

That's one that I print out the chargebacks for. At the endo fhte year I will go back and see whart they actually paid me, what the chargeback total is and them compare both of those figures to the 1099 they send.

I bet they won't add up. When I can't provide a reason for the difference my accountant just uses the 1099 numbers.

I didn't make very much in 2012 with 5 Star. In 2013 I did. I'm on track for their convention. Of course I will be off that track very soon.:1wink:

I definitely didn't make much with them before or after the charge backs. I'm either a lousy FE agent or 5 star screwed them up somehow and caused a lapse. I'll assume it's them until proven different. :yes:
 
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