Interactive Economic Model

The architecture of a distribution force.

A working model of how partnerships are engineered — from the first sales conversation to the unit economics, the house P&L, and the compensation structure that scales a sales force without breaking the margin.

66+ Carrier shelf

7 Contracting tiers

4 Partnership scenarios

Joshua Herrington

Managing Director · Author of the model

Begin ↓

01 The Market

The next-door millionaire is under-served by design.

The mass-affluent household holds real wealth but sits beneath the threshold the wirehouses fight over. The opportunity is not a product — it is distribution at scale: a commercial producer book worked through centers of influence, where every CPA, attorney, and banker is a door into a household that already trusts them.

Size the book →

Households in the producer book{{ mClients }}

Centers-of-influence penetration{{ mPen }}%

Average gross income per case{{ mAvgLabel }}

Reachable households {{ mReachable }} Addressable annual gross {{ mGross }} Top-of-funnel revenue if the book is worked through the COI network at the modeled penetration.

02 The Architecture

The partner decides how much they keep. Points decide the split.

The hardest conversation in distribution is the comp split. This model removes the argument: every function the platform performs carries a point value. Add up what the platform does, and the contracting tier — and the partner's payout — is determined, not negotiated. Independence is rewarded; support is paid for.

Tap each function — who does it?

Platform points {{ points }} / 100

Contracting tier

PARTNER {{ partnerPct }}%PLATFORM {{ housePct }}%

More platform support → higher tier number → lower partner payout. The partner controls the trade-off.

03 Unit Economics

One case, every dollar accounted for.

A single indexed life case, traced from gross commission to net margin. The tier you set in the architecture flows straight through. Nothing is hidden — the override, the split, and the real cost to execute are all on the table.

Deal inputs →

Target premium${{ targetPrem }}

Excess premium${{ excessPrem }}

Why the platform earns its share

Specialist labor / case21 hrs

Real cost to execute{{ uCost }}

To replicate in-house$313,000/yr

Gross deal income {{ uGross }}

Manager override

5% of gross · house

– {{ uOverride }}

Net after overrides

split at the contracting tier

PARTNER

PLATFORM

Partner income · {{ uPartnerPct }}

Platform retained · {{ uHousePct }}

Platform net, after the {{ uCost }} cost to execute {{ uHouseNet }}

04 The Scale

Unit economics, compounded over five years.

A single case is a proof; a book is a business. Hold the deal economics from the prior chapter and let volume and case size grow. The platform's retained revenue and the partner's income both compound — same split, larger base.

Growth assumptions →

Deals in year one{{ dealsYr1 }}

Annual deal growth{{ dealGrowth }}%

Case size growth{{ sizeGrowth }}%

5-yr gross

5-yr partner income

Partner income Platform net

{{ yr.grossLabel }}

{{ yr.year }}

{{ yr.deals }} deals

05 The House P&L

Four ways to structure a partner. Four different margins.

The same $1.95M book runs very differently depending on how the partner is contracted. This is the operator's decision: how much production to give away to win the relationship, and what it does to the house margin. Switch the structure and watch the P&L move.

Revenue

Total gross revenue{{ hGross }}

Partner / advisor comp paid– {{ hPartnerPaid }}

Net revenue to house{{ hNetRev }}

Operating costs

Case labor (240 cases){{ hLabor }}

Technology stack{{ hTech }}

Sales leader base + benefits{{ hSlBase }}

Sales leader earnout{{ hEarnout }}

Total operating cost{{ hTotalCosts }}

House gross profit

Net margin · {{ hMeets }}

Break-even cases / yr

06 The Sales Leader

Pay the leader on net revenue you've already earned.

The compensation structure is the whole bet. The sales leader carries a modest base, then shares in net revenue — but only above a threshold the house keeps first. Upside is uncapped and fully aligned: the leader can only get rich by making the house profitable. This is what de-risks the hire.

Structure the deal →

Earnout threshold${{ earnoutThreshold }}

Net revenue the house keeps before the leader earns any override.

Override split above threshold{{ earnoutSplit }}%

Leader's share of net revenue earned above the threshold.

At the current structure, the leader's total comp is {{ eSlTotal }} — and the house still nets {{ eHouseProfit }}.

Sales leader compensation

BASE + BENEFITS

EARNOUT

Base + benefits

Earnout

Total comp

Net revenue to house

House profit, after the leader

The Operator Behind the Model

"A sales force doesn't scale on talent alone. It scales on an economic engine — one where the partner, the producer, and the house can each see exactly why the split is fair, and exactly how everybody wins."

Joshua Herrington

Managing Director · Built this model

Interactive economic model · Figures illustrative · Carrier & firm names withheld