The following guest post is by Andrew Houser from Freedom Debt Relief. I asked him to provide us all with more information about his new approach at fronting sales representatives commissions while Freedom waits to collect the fees earned from consumers.
Upfront Affiliate Payments on No Advance Fee Programs: Giving Affiliates the Opportunity to Move Away From the Dark Side
While the majority of affiliates in the Debt Relief industry have either packed up and left town due to the FTC’s “advance-fee ban”, or shifted to selling advance fee programs through legal models or other loopholes, Freedom Debt Relief is now offering affiliates the ability to earn sizable upfront payments for selling their no advance fee program.
When the new FTC regulations went into effect last October it became very difficult for front-end companies marketing and selling debt relief services to remain in business. The advance fee ban significantly delays revenue earned by debt relief providers, and those providers abiding by the advance fee ban have consequently had to delay payouts to their affiliates.
While the FTC Rule clearly benefits consumers, it has created a severe financial hardship for many of the best debt relief companies who chose the compliant path and for the affiliates selling their services… kind of ironic isn’t it? Unfortunately this resulted in many affiliates leaving the industry altogether, and many others trying to make ends meet by selling for advance fee “legal models” or other loophole models.
It is widely acknowledged that there are several debt relief providers and attorney networks operating outside of the FTC fee rules by continuing to charge advance fees. And in doing so, these providers have, to date, been able to pay their affiliates upfront fees, which is an enticing offer.
Many affiliates I speak with know that the advance fee loopholers they are working with are, at the very least, in violation of the spirit of the FTC regulations. They also recognize that working with these companies creates huge potential legal liability for their company and for themselves personally. Many chose this risky path, however, because they saw no other way to have an economically viable business in a no advance fee world. It’s not a great decision to have to make – expose business and self to tremendous legal liability or risk going out of business due to cash flow issues.
One company that has developed a solution to this conundrum is Freedom Debt Relief. Freedom Debt Relief recently closed a significant round of capital financing to help it service clients and grow in the no advance fee world. What this means is FDR is now able to provide a significant upfront payment to its affiliates for enrolling clients. However, unlike the loopholers, FDR is not charging or collecting any advance fees from its clients in order to do so. Freedom Debt Relief operates a 100% no-advance fee debt relief program, which means they do not charge clients any fees until after FDR has successfully negotiated and received client approval for the resolution of the client’s debt.
The debt relief industry has changed significantly over the past year and my hope is that FDR’s new affiliate model encourages companies to have the courage (and financial foothold) to sidestep loopholes and exemptions and embrace the FTC Rules and the Advance Fee Ban.
So, move away from the dark side and stop selling advance fee programs that expose your business and your family to huge potential liabilities. Get paid upfront to sell a 100% no advance fee program – have peace of mind and earn the cash flow to not only maintain your business, but re-invest and grow your business.
- Freedom Debt Relief Secures Funding to Advance Sales Reps - September 1, 2011