6 Months Advancing

[jdeasy]

Some companies almost want to force agents to get advances. Take Monumental or AmAm, for instance.

I prefer to be as earned. Those two companies pay daily if you are on an advance. If you go as earned with them they will not pay daily or even weekly. They will only pay you once a month if you go as earned. I did move my Monumental to a 3 month advance so that I could get paid daily. I left the AmAm alone.

The only company I am not as earned or on a 3 month advance is RNA. I am on a 6 month advance with them. I just tried to reduce it last week to a 3 month advance and they wouldn't allow it. They do alow as earned or 6 month or 9 month advances. No other options.

As far as advances being hard on the IMO/FMO types, well boo frickin hoo for them. They will recruit anyone that can fog a mirror and then cry when that agent doesn't work out. You even see it on here that an agent with a BK or a Vector will get on here asking about where he could sign up and get advanced. The vultures start circling before he can hit the send button.

There was one guy on here crying about an agent leaving him with a debit when I know for a fact that the guy had a Vector when he was hired and the guy that hired him knew about it too.

If IMO's and FMO's would do their due diligence and check Vector and check criminal background and check credit scores and have a standard for hiring, they wouldn't find themselves in so many messes with agent debt.

 

[YouGotMyMoney]

If IMO's and FMO's would do their due diligence and check Vector and check criminal background and check credit scores and have a standard for hiring, they wouldn't find themselves in so many messes with agent debt.

smart. but then they'd have to have a unique selling proposition, which sadly many are lacking.

 

[0b1kanobee]

This is one of these issues that hurt the guys who are trying to grow their business and doing the right thing. Because of a few crooks, everybody else could suffer. Usually what happens is the crooks just find another way.

When you are just starting out, many need the advances to pay assist in the business expenses. Sometimes all of the advance and sometimes part of the advance.

The only ones who would go as-earned are agents who have built up a steady residual or have money in the bank. Look what's happening with health. I hear about agents all the time who say they can't make it as-earned.

I would say do what you want. You decide you don't want to advance and agents want to go somewhere they can get advanced then that is the way it is.

It's one way to hurt the industry IMO. Stop doing advances and lots of agents will go do other things. Then before you know it, more and more BIG call centers open up and places like e-insurance or whatever like you see on TV because they have people who will sit there and get paid by the hour. Look what happened to the travel industry.

It's called "unintended consequences" and what started out as a good idea evolves into something where only select companies make money. The little guy just disappears.

 

[mswebb06]

If an insurance company has a chance to not compensate an agent they will... So, no I don't feel sorry for any insurance companies or any IMO that recruits all day long..

It would be a lot better for the IMOS.

I just ate $34,000 from one agent in Calf that was a crook.

14 agents in Calf have cost about $700,000 to insurance companies and Imo's in the last 60 days. I just hope the Ins Dept will hurry up and arrest the agents..

 

[theinsuranceman]

Our system:

Advances start at 65% (8 months) and will be lowered if persistency falls below ave.

We do back ground checks, vector checks, and credit score checks.

New agents almost always need advances to buy 20+leads per week. If everything doesn't check out with the potential new agent we will pass on them. Kinda like playing poker.....know when to hold em and know when to fold em.

I pretty much only train full-time agents who can work in my office (has 10 cubicles) doing Final Expense tele-sales....where I can keep an eye on things.

On another post someone asked me why, if an agent was considering my opportunity, would I request they drive to meet me (if they lived less than 2 hours away) for an interview.

Or, if they lived further than 2 hours away, I would request a copy of their license and proof of production.

The agent doing the questioning mentioned a few other recruitewrs on this forum who wouldn't require the info I do. And some of those recruiters have been burned by that group of rogue agents in Cali........Mark and Todd and probably a few more.

The way I handle recruiting, you won't see me getting burned as has been mentioned by Mark from that group of Cali. agents.

You can make $$ and you can lose $$ recruiting agents. You have to use common sense and be smart about it.

Plus, when you can personally write biz yourself you don't have to just contract any old agent who comes along.

 

[rousemark]

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[Todd King]

I think Rockden was trying to ask for his eggs to be cooked plain to go along with his spam. And, he wanted them for a low price and quick service.

 

[rousemark]

I think Rockden was trying to ask for his eggs to be cooked plain to go along with his spam. And, he wanted them for a low price and quick service.

Thanks for the translation.. I was totally confused.

 

[BenS]

I definitely see both sides to this debate. Running credit checks would probably eliminate most of the issues here. An IMO could come up with a scale determining how much advancing is allowed based on the credit score of the agent. Maybe even ask for bank statements. The agent is basically asking for credit, so perhaps it should be treated like any other credit app?

I do think advances are helpful in that it can allow somebody to get into the business that otherwise couldn't afford it. Realistically without advances, you would need at least 9 months living expenses saved up plus marketing costs. Pretty tough for a recent college grad or a newlywed with a young family.

 

[HomeService]

I am the opposite, I think if a company advances it is a bad thing. I like "as earned", if a company advances I generally don't like to do business with them. Of course, I'm a debit guy, so the stuff pays month to month anyhow.