Advance or as earned?

[ValeRosso]

Just wanted to get some viewpoints on what your personal choice is between as earned or advance commission? Why did you choose this method?

thanks!

 

[Todd King]

If you can afford to pay your bills and buy leads without getting an advance, that's the best way to go!

 

[Travis Price]

I agree. As earned is building an asset, your book. Advance is making your book a liability by borrowing against it.

 

[jdeasy]

Just wanted to get some viewpoints on what your personal choice is between as earned or advance commission? Why did you choose this method?

thanks!

Personal preference. My preference is as earned and I've been as earned for at least 10 years.

But I know experienced good agents that still get advances and love it.

They call it an interest free loan. I call it a loan.

Some companies do charge interest on advances so most definitely be as earned with them.

 

[rousemark]

I have some companies as earned but still have some companies pay a 6 month advance. I always had a problem motivating myself to go out and find a case that was only going to pay $40-50 upfront commission. Felt a little better about $240-$300 first check. I would not advise anyone to take more than a 6 month advance.

 

[Life Hawk]

Just wanted to get some viewpoints on what your personal choice is between as earned or advance commission? Why did you choose this method?

thanks!

You may want to split it out. You don't have to go all or nothing. Do your homework and ask questions to others here on how that might look. You can take no advance with some carriers and advance on others.

You can also start with advances to create a cash flow then as businesses proceeds make a decision down the road.

You can skin this cat several ways.

I take advances on many and none on others. When beginning, cash flow is the life blood of your operation.

 

[fed up]

Advances create chargebacls. Chargebacks create Vector hits.

 

[Travis Price]

But I know experienced good agents that still get advances and love it.

They call it an interest free loan. I call it a loan

Personally, I don't think you can be a bad agent if you opt one payment method over another. I know companies that do charge and advanced fee, so you pay for that convenience.

My thought process is about risk. Chargebacks can put you in a very precarious situation, especially as you start. It's why it's better, imo, to develop good business habits early and why I'd rather work and build slowly vs grind and see what sticks.

Obviously there is no "wrong" answer to this question, but what's wrong for the agents preference.

I prefer an asset, not a liability.

 

[jdeasy]

Personally, I don't think you can be a bad agent if you opt one payment method over another. I know companies that do charge and advanced fee, so you pay for that convenience.

My thought process is about risk. Chargebacks can put you in a very precarious situation, especially as you start. It's why it's better, imo, to develop good business habits early and why I'd rather work and build slowly vs grind and see what sticks.

Obviously there is no "wrong" answer to this question, but what's wrong for the agents preference.

I prefer an asset, not a liability.

How in the world did you get bad agent out of what I posted?

 

[rousemark]

Advances create chargebacls. Chargebacks create Vector hits.

Not if you pay your chargebacks... In fact, if you aren't writing enough business to cover your chargebacks, you shouldn't be in the business.