Do You Take Advances, or As Earned???

[paige23]

Hey guys , I am thinking about going on as earned. I was wondering what everyone's opinions were on this and experiences. I just hate chargebacks.. I have had a couple already and although it is not the norm, psychologically it stings . I really hate owing money.. so I guess I am answering my own question.. But as a newby in my first year (4 months now) I am wondering how long does it take to build up renewals?
Paige

 

[SportsNut]

If you can afford as-earned, by all means go as-earned. If every agent had to go that way there would be a lot less competition in this industry... in other words, most can afford to do so.

 

[WinoBlues]

Hey guys , I am thinking about going on as earned. I was wondering what everyone's opinions were on this and experiences. I just hate chargebacks.. I have had a couple already and although it is not the norm, psychologically it stings . I really hate owing money.. so I guess I am answering my own question.. But as a newby in my first year (4 months now) I am wondering how long does it take to build up renewals?
Paige

I seem to remember that you are married and own a couple franchises. I could be way off here.

If that is the case and you can afford as earned that is the best way to move forward if the sting of a charge back derails you some. It is one thing to lose $50. a month it is a whole other to lose the $50 a month ansd have to write a check for $500.

 

[paige23]

If you can afford as-earned, by all means go as-earned. If every agent had to go that way there would be a lot less competition in this industry... in other words, most can afford to do so.

Thanks , Sports nut, don't get me wrong , I love seeing big money but ... I would rather see it going up, up up every month.
Anyway, I have been searching this forum for that question and found some really good replies from a few years ago.
I think I already switched to 50% anyway and since they don't pay more to go as earned maybe that is a pretty good route ,too.

 

[GMDM100k]

I have been getting paid as earned. Its definitely not easy. It depends on the renewals you can get.

If you wrote 8k this month that's about $666 in premium. If you are on a 100% contract then technically your as earned check would be $666/month for the next year. If it all stayed on.

What you have to worry about in the long run is your back end. If your back end renewals are 5% then that $666/month would go down to $33/month.

I think having an as earned commission is the best way to build a solid monthly income.

But it is hard to make it happen with lead costs and the expenses in this biz. You might go in the red for a year or two if you start out as earned.

I have been at this for a while and am glad those first few years are behind me!!

 

[jdeasy]

Hey guys , I am thinking about going on as earned. I was wondering what everyone's opinions were on this and experiences. I just hate chargebacks.. I have had a couple already and although it is not the norm, psychologically it stings . I really hate owing money.. so I guess I am answering my own question.. But as a newby in my first year (4 months now) I am wondering how long does it take to build up renewals?
Paige

I'm as earned with all med sups and life business except for one company where I'm on a 6 month advance.

I'll be moving that one to as earned soon.

I think as earned is the way to go but others think advancing is the way. Whatever suits you the best. With life it's an interest free loan. many of the med sup companies charge interest on the advance. For those it's a no brainer to be as earned.

 

[paige23]

I seem to remember that you are married and own a couple franchises. I could be way off here.

If that is the case and you can afford as earned that is the best way to move forward if the sting of a charge back derails you some. It is one thing to lose $50. a month it is a whole other to lose the $50 a month ansd have to write a check for $500.

Yeppers I agree . And yeah I am married with children and we have a few fast food rest. that my hubby is married to! LOL, he is pretty good about putting it down (work that is)
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I have been getting paid as earned. Its definitely not easy. It depends on the renewals you can get.

If you wrote 8k this month that's about $666 in premium. If you are on a 100% contract then technically your as earned check would be $666/month for the next year. If it all stayed on.

What you have to worry about in the long run is your back end. If your back end renewals are 5% then that $666/month would go down to $33/month.

I think having an as earned commission is the best way to build a solid monthly income.

But it is hard to make it happen with lead costs and the expenses in this biz. You might go in the red for a year or two if you start out as earned.

I have been at this for a while and am glad those first few years are behind me!!

NO KIDDING! Good to see ya sweetie!

 

[WinoBlues]

Yeppers I agree . And yeah I am married with children and we have a few fast food rest. that my hubby is married to! LOL, he is pretty good about putting it down (work that is)
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NO KIDDING! Good to see ya sweetie!

He is a sweetie ain't he.

 

[GMDM100k]

He is a sweetie ain't he.

Just to you Lee!! I seem to remember taking you out to lunch the last time I saw you. Fancy place too!! Candle lit if I remember right.

 

[WinoBlues]

Just to you Lee!! I seem to remember taking you out to lunch the last time I saw you. Fancy place too!! Candle lit if I remember right.

Yes you did. I think you even paid for my clients drink. Just remember I am a pitcher, not a catcher.