Contract Lengths and RCEs

How Does Contract Term Length Impact Commission? 

Not all RCEs are weighted equally. The term length of the contract determines how much value each RCE is worth, which affects your commission. Here’s how it works: 

Baseline Term (60 months): 
These are the standard term lengths where 1 RCE equals 1 full commission unit. In these cases, your commission is directly proportional to the number of RCEs you close. 

Longer-Term Contracts Are More Valuable: 
For longer contracts (e.g., 72 or 84 months), the Weighting Percentage increases. This means these contracts are worth more than 1 RCE. 

• Example: A 72-month Electricity contract has a Weighting Percentage of 120%, making it worth 1.2 RCEs. 

The longer the term, the higher the weighting and the more commission you earn for that single sale. 

Shorter-Term Contracts Are Less Valuable: 
For shorter contracts (e.g., 12 or 24 months), the Weighting Percentage is lower, meaning they are worth less than 1 RCE. 

• Example: A 12-month Gas contract is weighted at 20%, making it worth only 0.20 RCEs. 

• While these deals are still valuable, they contribute less to your overall commission. 

Electricity and Gas
	Estimated RCE	Term Length (Months)	Weighting Percentage	Estimated RCE (Wt)
	50	84	140%	70
	50	72	120%	60
Base Line	50	60	100%	50
	50	48	80%	40
	50	36	60%	30
	50	24	40%	20
	50	12	20%	10