I think for FE you will likely need advances to stay alive at least for a few years. At that point you may be able to start switching it up depending on your book of business. I balance by keeping advance on FE but do some medsup as well and leave that on as earned. Makes a good balance.
As Earned Versus Advance
- Thread starter 4theloveoffe
- Start date
- 2,038
You're just comparing 1st year commission to delayed 1st year commission. If you want to build that steady income flow for some reason go sell c-shares.
- Thread starter
- #13
4theloveoffe
Expert
- 69
C-shares? Enlighten me please...what's that?
Last edited:
- Thread starter
- #15
4theloveoffe
Expert
- 69
Gotcha...thanks
This is a post i put up more than 2 years ago and has been my most requested post for other agents on this forum to find and read again. I cannot tell you how many PM's I get to find this post for agents.
Here it is again and I feel is very much to the point on the OP's question.
http://www.insurance-forums.net/for...vance-commissions-work-t56545.html#post738236
Here it is again and I feel is very much to the point on the OP's question.
http://www.insurance-forums.net/for...vance-commissions-work-t56545.html#post738236
- Thread starter
- #17
4theloveoffe
Expert
- 69
Thanks for sharing
- 16,881
There is no question that advances are debt. It's usually zero interest debt but it's still debt. The loaner (insurance company) can call the debt to be paid back when you aren't expecting it (charge backs).
Most new agents need max advances in the beginning to cash flow. But if you want to build your business in the most solid way possible you will shorten the advances when you can afford to.
Failure to manage their money is what kills a lot of agents. For them, it's better to have the insurance company owe you money than for you to owe the insurance company money.
Plus 50% advancing on a 115% contract pays the same as 75% advancing on an 80% commission level contract. But then you hit months 6,7,8,9,10,11,and 12 is a huge difference.
But most agents including Fex agents do go on 75% advances.
Most new agents need max advances in the beginning to cash flow. But if you want to build your business in the most solid way possible you will shorten the advances when you can afford to.
Failure to manage their money is what kills a lot of agents. For them, it's better to have the insurance company owe you money than for you to owe the insurance company money.
Plus 50% advancing on a 115% contract pays the same as 75% advancing on an 80% commission level contract. But then you hit months 6,7,8,9,10,11,and 12 is a huge difference.
But most agents including Fex agents do go on 75% advances.
- 3,764
i would contract 360 Financial for the top contracts and advancing
- Thread starter
- #20
4theloveoffe
Expert
- 69
Thanks for the shameless plug!
Similar threads
