Contracting with Multipule IMOs?

[Glen Shelton]

I had read a thread previously that was talking about being able to contract with more than one IMO. I am curious if this is common or more frowned upon in the industry? What happens if you get a lead from one IMO and place it through the other IMO? Just wanted to hear what others had to say about this because no one I have talked to seemed to know! Thanks!

 

[Josh]

Two scenarios:

1. You're an independent agent that contracts with different IMOs for different products, but get no leads. That's very common and industry norm.

2. If you're getting leads from an IMO and you place it with another, most agents would agree that's unethical. The IMO that gave you the lead would probably agree and the chances of them giving you more leads in the future if they knew what you were doing would probably be nearly non-existent.

 

[VolAgent]

If you are on a lead program with an IMO, you will be expected to place all business from those leads through that IMO. Some IMOs don't allow any outside contracts for agents on a lead program for this very reason.

If you get caught, you can expect to quickly be off the lead program.

 

[Glen Shelton]

It sounds like there are independent agents who contract with multiple IMOs but handle leads such as DM completely on there own so they can do whatever they want? Vs a fixed lead or subsidized lead.

 

[Josh]

It sounds like there are independent agents who contract with multiple IMOs but handle leads such as DM completely on there own so they can do whatever they want? Vs a fixed lead or subsidized lead.

Yes. If you're on a lead program with an IMO and put the business elsewhere, you're screwing the IMO.

 

[VolAgent]

It sounds like there are independent agents who contract with multiple IMOs but handle leads such as DM completely on there own so they can do whatever they want? Vs a fixed lead or subsidized lead.

Yes, if you generate your own leads, then you can do what you want. Some IMOs may still want to hold you captive, but unless they are providing something of value, there is no reason to be captive to an IMO.

Depending on the quality, a lead program, training, back office support, etc. can be of value. Also, it would depend on your product line as well. Back office support can be huge for someone doing big life cases, annuities, etc. But it would be next to worthless for a FE agent. Good training is always worthwhile.