Commission Chargebacks - What Should I Do?

[DHK]

Captive companies probably won't... but I never did ask about it. Otherwise, I believe all independent carriers would let you do "as earned". After all, it mitigates their own risks as well. Plus, you'd save on the financing of that advance - often at about 6%. (Yes, that's a real thing. Check your contracts.)

 

[rousemark]

I see, and I bet most agents won't do an as "earned" payment cause there checks wil be smaller.

Do all carriers let you do "as earned" or do most only do 9 months upfront.

I have never know of a company that would not do "as earned"... In my mind, a nine month advance is courting disaster, especially for new agents. If a advance is needed, a 6 month advance works much better.

 

[THE WOLF MINDSET]

do MGA's get a chargeback if there Agents do. because don't MGA's get paid off there agents, too?

 

[THE WOLF MINDSET]

Captive companies probably won't... but I never did ask about it. Otherwise, I believe all independent carriers would let you do "as earned". After all, it mitigates their own risks as well. Plus, you'd save on the financing of that advance - often at about 6%. (Yes, that's a real thing. Check your contracts.)

Pure example on why everyone needs to read there contract before signing up, and not just get "seduced" by the pitch from the recruiter.

 

[Todd King]

If they are not altruistic, they shouldn't lie and claim to be so ! Which is exactly what the company I was working for did !

Okay, you may be talking about something else other than what this thread is referring to. Just so we can be clearer, what company did you work for and what did they do to you?

 

[DHK]

I have never know of a company that would not do "as earned"... In my mind, a nine month advance is courting disaster, especially for new agents. If a advance is needed, a 6 month advance works much better.

Exactly. It's simply a "house of cards"... particularly depending on how one is trained to make their sales. An awfully risky way to build one's income... particularly ironic when we think that it's our job to mitigate and manage risks for others.

 

[ccage]

Exactly. It's simply a "house of cards"... particularly depending on how one is trained to make their sales. An awfully risky way to build one's income... particularly ironic when we think that it's our job to mitigate and manage risks for others.

Pure example of why I am just asking one question after another about the business. I never knew about you had choices of payout. That is why you see some sales boards and you see 1 agent who made $25,000 in a month, techinically that agent actually made $25,000 over 6 or 9 months just got it all paid on an advance. But if that agent only got paid on as "earned" it would be much less.

 

[ccage]

DO you get charge-backs on Residuals, too?

 

[Todd King]

DO you get charge-backs on Residuals, too?

You shouldn't, but there is a chance you will if a policy is rescinded after the RENEWALS start (not residuals).

 

[ccage]

You shouldn't, but there is a chance you will if a policy is rescinded after the RENEWALS start (not residuals).

I see so there actually call Renewals not Residuals with a policy. But you almost have to assume if they kept the policy a year they won't cancel. Unless the bump into another agent who somehow gets them to sign up with them.