Getting Paid

[Newby]

When dealing with advances, most agents will spend the money as soon as they get it for bills or whatever reason. With advance commissions, we recommend our agents open a separate bank account and hold a reserve account of 10% with a cap of say $2,000 (you can determine your own cap). Regardless of how clean the business you write, you will always have lapses some for reasons you cannot control. It's very difficult to come up with money to pay back your debit balance when you have already spent it.

That's exactly right but I would go 20% and not cap it until you reach $5,000 or more. Just let it build permenantly. If it builds too much put some in your retirement annuity and keep going. Agents who spend 100% of their cash flow are working a financial time bomb.