As Earned Vs Advance

bhoward · 10-29-2009, 11:56 PM

If I can afford to go 'as earned' should I? With the as earned commissions, I should have less to worry about if a policy is cancelled, since I won't have to worry about chargebacks, correct?

I understand doing it this way may take a while to have a real income from insurance, but I could always change to advanced commissiosn in the future if necessary.

Feedback?

souldeux · 10-29-2009, 11:59 PM

Originally Posted by bhoward

If I can afford to go 'as earned' should I? With the as earned commissions, I should have less to worry about if a policy is cancelled, since I won't have to worry about chargebacks, correct?

I understand doing it this way may take a while to have a real income from insurance, but I could always change to advanced commissiosn in the future if necessary.

Feedback?

Yes yes yes yes yes yes yes yes yes yes oh sweet merciful God YES!

If you can afford it, do it. Chargebacks do not exist with as-earned commissions, you'll have a steady income stream instead of living check-to-check, and you'll never have to worry about paying interest on advances. Plus, if you're selling life insurance, annual or quarterly premiums get paid in chunks anyway. Yes, it'll take a while to build up, but it's worth it.

I strongly believe that the goal of every insurance agent out there should be to get off of advances as quickly as possible, no exceptions.

DHK · 10-30-2009, 12:05 AM

Agreed!

Probably another reason to start with selling annuities (1 time premium & upfront commission) then go back to review the annuity and cross-sell a life policy.

David C · 10-30-2009, 12:14 AM

You will never regret going as earned.

LGilmore · 10-30-2009, 01:22 AM

As earned kind of keeps you track as it doesn't create a big chunk of money all at once that tends to make alot of agents stop working. If you can do it, steady consistent payments as earned are a good way to go.

WinoBlues · 10-30-2009, 02:06 AM

Ditto all these guys. As earned. Or at least a 50/50 split half the companies as earned the other half 50% advance. In 6 months you are set.

Frank Stastny · 10-30-2009, 10:07 AM

I understand the need for some agents when they first start to take advances. If it wasn't for advances there would be a lot of really good agents who would not have been able to enter this field.

I think WinoBlues suggested a good solid option for a lot of new agents to consider. Something else to look at is that some companies offer less than a twelve month advance. I have suggested to a lot of new agents that they seriously consider that option also.

I believe that every agent's goal should be to go as earned as quickly as possible.

YouGotMyMoney · 10-30-2009, 10:15 AM

I don't understand everyone's love affair with as earned.

IF an agent is paying interest on advances, I understand.

But how are agents supposed to run a business on as earned commissions?

I'm just referring to individual health sales.

Markingriffin · 10-30-2009, 10:19 AM

Most of mine are as earn only. I love watching my check build up each month and knowing if I break both of my legs or quit for a year, I will get the same paycheck each month.

But for new agents, they can't afford to watch the check build up and they should take the advancing.