Is It Better to Be Paid "as Is" or Advanced?
- Thread starter thuban
- Start date
- 107
In the long term, it is better to get paid as-earned. Short term you may need the advance to keep purchasing leads or to cover your day to day expenses.
- 11,997
What? That makes no sense. Why would you want to wait to get your money?
If you're worth your salt then your persistency should be above 75% (really, 85%-90%), so going with a 9 month advance would mean no chargebacks. If you're a little concerned about it, go with a 6 month advance.
- 5,058
As long as you're not paying interest, why not take advance?
How are you suppossed to build a business on as earned? Pay your bills, pay for marketing?
How are you suppossed to build a business on as earned? Pay your bills, pay for marketing?
- 11,997
I'm assuming you have no marketing costs?
- Thread starter
- #7
My original question assumes that one can pay for his marketing costs out-of-pocket.
- 11,997
That's bad logic though. Even if an agent can pay for month one, they'll need money for months two, three, four, etc. The other thing is that if you have a good lead source, you're going to want to suck it dry before it goes bad; get while the getting is good so to speak. Again, it's your money, might as well have it now rather than later.
I make enough per month "as earned" to cover everything and have plenty left over. Now, if you're starting out, it might be a good idea to get advanced for the reasons mentioned above, but I would go as earned as soon as possible. Personally, I took advanced comissions from some companies and went as earned with other while starting out.
- 620
Speaking as a new agent (which I am), it is very difficult to go as earned the first year. I can see the logic behind it, but new agents cannot possibly survive in the beginning.
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