Advanced Commissions

GarryC

New Member
2
I have found that many final expense and other forms of insurance offer "advanced commissions". Has anyone ever built up a renewal from these sales or does the "renewal" mostly go to pay charge backs, declines and advancement loan interest? Please advise.

Also, are there final expense companies or organizations that will let you work and be paid "as earned". I am curious to find out what others have experienced.

Thank You!
 
I think most FE companies will let you be paid as earned.

You will build up renewals over time with FE, but it does take a while.
 
If you are brand new, advanced commissions get you going by placing money in your wallet. After you have established yourself it is sometimes better to be paid as earned. the advance commission looks great in the bank account until a chargeback occurs and your bank account gets debited. I knew an agent who did not touch his banked commissions for 12 months so that he would not get overdrafts when a chargeback occured
 
I went as earned back 20 plus years ago. BEST move i have ever done.
Set your mind on this: Write $100 per week for 30 weeks. At a 100% contract you would have about 2500 a month coming in. Do this for one year and BAM! About $5000 per month coming in. if you have around a 10-20% chargbacks or not takens you might be at 4000 per month or so in a year.
 
I went as earned back 20 plus years ago. BEST move i have ever done. Set your mind on this: Write $100 per week for 30 weeks.

I have set my mind to something similar. I am changing my Trans contract from advance to as earned. My goal is to write $1000 in monthly premium issue/paid during December with a January first draft date. For 2019, my goal is to write $400 to $500/month with Trans each month. Trans and MOO are my main carriers. My plan is to build a nice pay-through stream with Trans, and live off my advance money from MOO and my niche/occasional carriers. By June, I'd like to have my niche carriers as-earned (especially because those are the problem carriers with charge backs as I may not be writing enough business quickly enough to cover the charge backs to make them happy).
 
I have set my mind to something similar. I am changing my Trans contract from advance to as earned. My goal is to write $1000 in monthly premium issue/paid during December with a January first draft date. For 2019, my goal is to write $400 to $500/month with Trans each month. Trans and MOO are my main carriers. My plan is to build a nice pay-through stream with Trans, and live off my advance money from MOO and my niche/occasional carriers. By June, I'd like to have my niche carriers as-earned (especially because those are the problem carriers with charge backs as I may not be writing enough business quickly enough to cover the charge backs to make them happy).

Be careful before you switch to as earned with Trans. This is something you should know before making the switch.... If you have a debit balance with them it will have to be paid first before they will send you any more money. I guess the way they look at it is that if you are as earned you shouldn't have any kind of a debit balance.

Now, this is the way they "used" to do it, so you might want to call them to see if they changed.
 
I went as earned back 20 plus years ago. BEST move i have ever done.
Set your mind on this: Write $100 per week for 30 weeks. At a 100% contract you would have about 2500 a month coming in. Do this for one year and BAM! About $5000 per month coming in. if you have around a 10-20% chargbacks or not takens you might be at 4000 per month or so in a year.

But it's not like Advisors that likely (or possibly) earn more over the course of several years by selling back load or fee based as opposed to front load, or am I wrong or missing something here? For life insurance, don't they pay out the same regardless of if you take the advance or not?
 
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