Golden Rule - advanced commissions

[wilkin]

Apparently some agents have advanced commissions with GR and some are paid as earned. I asked my Key Broker and they said they don't advance. Is this decided by each Key Broker individually or the company?
Thanks,
Bill

 

[Crabcake Johnny]

Each Key Broker. You can get advanced directly by getting your own Key Broker contract. To get that you need to remit proof of 150 cases written through all companies over the past 12 months. Then you have to submit 100 approved cases over the next 12 months. After that you write your first 12 deals as-earned, then you get a 9 month advance.

If you're with a Key Broker they can choose offer an advance at their will. If you write more than 2 cases during the last 6 months they have to release you. Most won't and GR has the most horrible agent situation I've heard of. None of this is discussed upfront. If you go with GR direct just as an agent then choose to go under a Key Broker to get an advance, they will not release you.

If you go and get an advance through a Key Broker you'd better damned well know and trust him. He gets your commission and cuts you a check. They can change your advance at will so if you start to get a few chargebacks and they get nervous they can simply hang onto your money.

 

[STIBROKER]

Each Key Broker. You can get advanced directly by getting your own Key Broker contract. To get that you need to remit proof of 150 cases written through all companies over the past 12 months. Then you have to submit 100 approved cases over the next 12 months. After that you write your first 12 deals as-earned, then you get a 9 month advance.

If you're with a Key Broker they can choose offer an advance at their will. If you write more than 2 cases during the last 6 months they have to release you. Most won't and GR has the most horrible agent situation I've heard of. None of this is discussed upfront. If you go with GR direct just as an agent then choose to go under a Key Broker to get an advance, they will not release you.

If you go and get an advance through a Key Broker you'd better damned well know and trust him. He gets your commission and cuts you a check. They can change your advance at will so if you start to get a few chargebacks and they get nervous they can simply hang onto your money.

inflate your debt balance and steal your commissions unless you want to take them to court.....

 

[TXINSURANCE]

You need to get appointed directly and quit having people take a slice of your production.

I would avoid advances - think of credit card debt... same thing, it is not your money.

 

[nate124]

You need to get appointed directly and quit having people take a slice of your production.

I would avoid advances - think of credit card debt... same thing, it is not your money.

Everyone's situation is different. I think advances are a great tool for a new agent. I would not have been able to get off the ground without advances. If you do your job properly, the amount of charge backs you receive will not even have an effect on your overall book of business. As earned is great... and if you can build up enough as earned business to start off each month with X amount of dollars coming in, that is a great situation. Unfortunately when starting out, agents don't have that option.

As far as getting appointed directly... that's a similar thing as well. If someone has never sold a health insurance policy in their life, getting appointed directly won't do them any good unless they can figure everything out on their own. (which IS possible).... If you work with a reputable company though, who trains you on how to properly sell health insurance, and gives you in depth product training, leads, etc.. I think that it's worth it for that new agent to give away a piece of their production. Once again, everyones situation is different.... some need a mentor, some can figure everything out themselves. There's nothing wrong with either.

 

[Crabcake Johnny]

Always take the advance when you can. You're using money you earn, not your savings to invest in more marketing and pay your bills. You should never have to dip into your valuable savings to pay monthly bills and marketing costs if you can avoid it. If you personally see a lot of chargebacks then get out of the business. It's not for you.

 

[TXINSURANCE]

I have seen more people exit the business because of advances then I can shake a stick at.

Just be careful is all I am saying...

Hold off on that new Benz until you have a few years in the biz...

 

[Crabcake Johnny]

I don't follow. If enough business is blowing off the books where you can't make a living off an advance how would they make is as-earned?

Also, if you have enough personal funds to float you for a few months as you take the advance, how would a charge-back hurt you? If you don't have enough funds you can't go as-earned in the 1st place.