What Are Your Opinions on Advanced Commissions?

[briko3]

If you need the money that bad, you can't handle the chargebacks that will inevitably happen.

 

[aacards8]

I've been on that advance plan for 3 years and I definitely don't live paycheck to paycheck. If you write quality business that stays on the books, it's not a big problem. I'm not saying I've never had chargebacks of course but I can write enough to offset them.

Different strokes I guess...

 

[Guest]

When I was at Farmers, on life, they paid us 8 months commission upfront if the client was on EFT.

That was the ONLY reason I wrote life

 

[VolAgent]

I've been on that advance plan for 3 years and I definitely don't live paycheck to paycheck. If you write quality business that stays on the books, it's not a big problem. I'm not saying I've never had chargebacks of course but I can write enough to offset them.

Different strokes I guess...

You've been lucky then. An agent that needs to be advanced on submission, such as when you first started, is in a bad financial situation. Any hiccup can destroy them. What if you'd had a few declines because the person hid information. What if they changed back accounts so it lapsed until it could be reinstated? There is just too much that can go wrong.

Advances are dangerous enough as it is. There is no reason to compound the problem by advancing on submission. Also, the person doing the advancing can get burned easily. All it takes is one dishonest agent to get people to submit a lot of apps in a short period of time, but not take them. Suddenly that is a massive debt that will be near impossible to collect.

 

[Insurance-Guy]

+1 for the it is a DUMB idea!

 

[jraastad]

looks like there could be a nice list of "gotyas" like, interest rate on chargebacks and even worse EXTREMELY low commisions on top of uncompetitive products that are not designed with the clients needs in mind.

 

[aacards8]

I'm at 95% commission. I didn't for this to be a pissing and moaning match, I was just letting the original poster know that under the right circumstances advances could work and be profitable if handled correctly.

 

[VolAgent]

I'm at 95% commission. I didn't for this to be a pissing and moaning match, I was just letting the original poster know that under the right circumstances advances could work and be profitable if handled correctly.

No one is taking anything away from you. You've done good. But you are the exception. There are exceptions to everything, but you can't get carried away and think everyone is going to be exceptional.

 

[Mark]

I get as earn only from 2 of my companies. I like watching it grow every month and knowing it should not get any lower for at least 1 year in case something bad happens to me.

 

[theinsuranceman]

I've been getting advances for the last 12 yrs. selling FE. But the Co. I'm with do NOT take chargebacks out of your next advance, they recoup the charge back from the un-advanced comm.

Full charge backs from next advance may be another story.