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Signing On With A Fee-Based IMO: A Win-Win?

Insurance Forums Staff

What would your thoughts be on a fee-based IMO?  An agent in the forum posed the idea of an IMO that charged a fee to its agents, and then passed along the agent’s commissions and the override from the carrier. The fee paid to the IMO is less than what an agent would receive in the extra override.

For example, an agent produces $1 million a year in annuities sales.  If he/she pays a $5,000 fee to the IMO, the IMO would then pass along an extra 1 percent commission to the agent ($10,000).  While the IMO receives an upfront payment, the agent makes more money.

Some agents in the forum believed that an agent can get high contracts without a fee, rendering this type of IMO unnecessary.  Others argued that a chance to participate in a full commission and override, even for an upfront fee, would be a great benefit, however unorthodox the model is.  Would you join this particular IMO?  Let us know.



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