As Earned Versus Advance

[4theloveoffe]

If you could start your FE career over what percentage (if any) of your business would you have rather been paid as earned to somewhat stabilize your income faster?

I recently started mixing in some as earned pay and I see where it would've benefitted me greatly during the lean times if I would've started out writing SOME as earned business after my advance goal was hit for the week.

 

[KRobby]

If you could start your FE career over what percentage (if any) of your business would you have rather been paid as earned to somewhat stabilize your income faster?

I recently started mixing in some as earned pay and I see where it would've benefitted me greatly during the lean times if I would've started out writing SOME as earned business after my advance goal was hit for the week.

I'd rather have the money before it's properly earned, so I'll go with 0 percent.

 

[SPUR CITY]

If you could start your FE career over what percentage (if any) of your business would you have rather been paid as earned to somewhat stabilize your income faster? I recently started mixing in some as earned pay and I see where it would've benefitted me greatly during the lean times if I would've started out writing SOME as earned business after my advance goal was hit for the week.

0%


I feel that my money management skills are good enough to not worry about the lean months because I set-aside money in a proper fashion.


Starting out, I would invest the majority of that advanced money right back into the business. Meaning leads!


My thought was always... Give me ALL my money upfront and let me decide what I would like to do with it, rather than letting the insurance company earn interest on that money that would otherwise have been advanced to me.

 

[bboman23]

0%....................

 

[Ryan Caras]

If you could start your FE career over what percentage (if any) of your business would you have rather been paid as earned to somewhat stabilize your income faster?

I recently started mixing in some as earned pay and I see where it would've benefitted me greatly during the lean times if I would've started out writing SOME as earned business after my advance goal was hit for the week.

there is no better person than John Dugger to advise to this in my opinion... He has worked real hard to get most of his advances down to 3 months and as earned or at least he did when we worked together a few years back...

 

[4theloveoffe]

0%


I feel that my money management skills are good enough to not worry about the lean months because I set-aside money in a proper fashion.


Starting out, I would invest the majority of that advanced money right back into the business. Meaning leads!


My thought was always... Give me ALL my money upfront and let me decide what I would like to do with it, rather then letting the insurance company earn interest on that money that would otherwise have been advanced to me.

With that being said... What percentage of your advances did you hold back starting out? Do you have a formula that you use?

As agents we look forward to months 10,11,and 12...we also look forward to earning renewals because it stabilizes our income, covers leads, expenses, etc...having that somewhat guaranteed income is nice so why not build it up slowly but surely from the very beginning?

 

[bboman23]

With that being said... What percentage of your advances did you hold back starting out? Do you have a formula that you use?

As agents we look forward to months 10,11,and 12...we also look forward to earning renewals because it stabilizes our income, covers leads, expenses, etc...having that somewhat guaranteed income is nice so why not build it up slowly but surely from the very beginning?

Determine how much money you need weekly to live off of. Say it's 600 per week. Every Friday your business account pays your personal 600. If you make 10k that week or 0 it doesn't matter. As the business builds, give yourself a raise. Leads and gas always come out of business so don't figure them in personal. Those are two things you have to have to make this business work.

If you do this, chargebacks don't matter. Have a bad week? Still get paid.

 

[sirherbie]

What I do is get 9 months advanced on about 70% of my business and 6 and 3 months advancement on 15 and 15%. It's nice having as earned come in months 3-12 and months 6-12. Same principal as cd laddering .

 

[4theloveoffe]

Determine how much money you need weekly to live off of. Say it's 600 per week. Every Friday your business account pays your personal 600. If you make 10k that week or 0 it doesn't matter. As the business builds, give yourself a raise. Leads and gas always come out of business so don't figure them in personal. Those are two things you have to have to make this business work.

If you do this, chargebacks don't matter. Have a bad week? Still get paid.

I knew an agent that did that and it seemed to work very well for him

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I've done some recruiting in FE and there are a few agents that had to leave because they couldn't handle the expenses after a few months and couldn't survive until month 10. Some as earned pay may have given them the smidgen of consistency they needed to stick around

 

[SPUR CITY]

I knew an agent that did that and it seemed to work very well for him ---------- I've done some recruiting in FE and there are a few agents that had to leave because they couldn't handle the expenses after a few months and couldn't survive until month 10. Some as earned pay may have given them the smidgen of consistency they needed to stick around

Maybe my way of thinking is crazy but my thought is if they cannot survive off advancements then they're not going to survive being paid as earned starting out