Everyone's time frame will differ. It's really all about your own bills. As long as you have enough coming in to cover those and have just a little buffer room, then the choice is yours at that point.
Advances
- Thread starter Baseball7
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Everyone's time frame will differ. It's really all about your own bills. As long as you have enough coming in to cover those and have just a little buffer room, then the choice is yours at that point.
- 24,968
Add to that if a person has a working spouse that can cover the majority of the debt, children at home, inheritance, the state they live in. No two situations are the same.
I no longer need advances to survive but I am still on 6 month advance with most carriers. The reason is motivation. It is hard for me to make my self go chase a $30 as earned commission check but a $180 check is a different matter. I don't it doesn't really make any sense but that is the way it works with me.
- 6,142
I do not see anything wrong with an agent going as earned. It is a very stable way to run your business, but I am not as earned. Agents have to have money management to make it in this business long term no matter what! As long as an agent is running it as a business, then it won't matter if it is advances or as earned.
I agree with you that I wouldn't work as hard to save a case if it was just $50 I was going to lose.
I have seen agents that read the forum and decided to go as earned, and they almost failed. It takes a good chunk of money to buy leads each week AND be as earned. Most agents buy 20-30 DM per week. I think when JD transitioned to as earned he was buying 10 leads and spending a lot less on them. I could be wrong on that though.
- 18,988
15 per week. But that's all I've ever bought. Except for about 6 months in 2009 when I upped to 20 per week.
I didn't go to 10 per week until last fall.
But for your point on money management, if you don't manage your business it doesn't matter how the money comes in. I know a guy, and you know him too, that was pretty good at selling FE but terrible at money management.
He's out of the business now. I have no idea if he took advances or not. That wasn't the issue either way.
- 598
He just went to 10 per week in September.
Ah, yes. Don't you love it when you're answering at the same time as someone else? It's always good to have duplicate answers!
- Thread starter
- #17
- 3,990
If your writing 5,000 clean a week isn't that only $1,700 earned a month? Assuming your residual income was even equal that It's only $3,400 a month. Are those numbers off?
That's also no fall off, 100% contract and no GI figured in.
That's also no fall off, 100% contract and no GI figured in.
- 6,142
Exactly. He would fail even if he was on $10k per week SALARY.
My point was it shouldn't matter if the agent manages their money correctly. Unless it is a company that charges interest MORE than your business account builds for you having the money up front. But it is way harder for an agent taking 30 DM per week to go as earned than it is for an agent on 10 or 15. But if the agent has they money to do it, I say go for it if that is what they want!
- 18,988
Those are correct numbers. You seem to be missing that you don't just get that as earned money for one month. You get it for 12 and then the renewals start. Take this month, for just one example, I'm getting paid on everything I've written since last May.
You would be correct on only $1700 per month, assuming the $5K per week, if you only wrote business for one month and then stopped.
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