What Are Your Opinions on Advanced Commissions?

[brookfieldpartners]

Would you be inclined to do business with a Brokerage Agency that advanced commissions 100% when you submitted the application along with check and once the paramedical exam was received? You must prove production history first.

This is different than annualized commissions. Commissions will be advanced BEFORE the case is placed WITHOUT any compensation change to the insurance agent/financial advisor.

I have been talking with a firm that is trying to get into our industry to make this happen and I'd like to hear from advisors on their thoughts and opinions.

Is this a yay or a nay from the agent community?

 

[STIBROKER]

nay.................................

 

[VolAgent]

And you thought chargebacks were bad before? Just wait. There are some captives that do this, their agents live in debt to the home office. The only winner in this is the company/agency that likes agents to live in indentured servitude.

 

[WinoBlues]

Nay!!!
The guys that need this will not qualify for it.

>>Commissions will be advanced BEFORE the case is placed WITHOUT any compensation change to the insurance agent/financial advisor.

I would not invest in that agency.

 

[YouGotMyMoney]

sure why not pay me now

 

[dgoldenz]

No. Too many cases come back other than applied for or are not placed. Would be a nightmare to keep track of.

 

[jemelton]

How about you tell them that you are going to write $200k in comission and they give you a check for $200k January 1st?

 

[arnguy]

I say nay!!!!!!!!!!!!!

 

[aacards8]

My captive agency does that (50% of the total submission upon submission and the other 50 when it goes paid( and I love it. There have been a few chargebacks here and there but usually there's no problem. I love the weekly cash flow it provides.
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OK that didn't come out just right - I meant to say 50% of the advanced commission on submission, the rest when it goes paid.

 

[Newby]

That is quite possibly the worst idea I've ever heard. Agents have to get away from living paycheck to paycheck.

If an agent needs an advance that bad he is getting ready to be REAL broke at the first bad streak.