How Do FMO's Get Paid if I'm Independent?

[wehotex]

Hi guys...I have been considering getting my contracts thru a FMO named Kellog Insurance Marketing. I have heard good things about them and they are local and say they offer top contracts, with competitive carriers, and that they only work with independent agents. That my business is my own. The reason I am considering them as my FMO is because they have 47 years in the senior market and they have hands on training on a local level and I think that this will help my get a handle on things a lot quicker than if I was on my own.

I am just a little confused about how this works tho. They say that I am independent and I get paid directly by the carrier. Do they still get overrides on my production even tho i get paid by the carrier? One carrier offers 18% comm for yrs 1-6...How will the FMO get overrides if I am getting the top comm contract offered by the carrier? How do they make any money off of agents who are independent and get paid directly by the carriers? It is still jus a little confusing to me.

I'm new to this so I'm just trying to understand how this works. Any help is greatly appreciated. Thanks in advance!

Ain't NO Santa Claus in this business!! Somebody is always out to steal the fruits of your labor. If they are courting you for some reason, they def have something that they want to gain.

 

[GoPokes]

Any chance you could explain this in a little more detail. What would be an example of a top FMO contract? I looked at the Equitable contract and all it said was that the producer got 18% for yrs 1-6 and then like 2.5% for years 6-10....or something like that. If the top producer contract is at 18%....then what would a typical top FMO contract be in terms of %?

I really can't go into much more detail. To get a higher contract, typically you have to have higher production (meaning you have to sell a lot of insurance). Or you have to have a down line of agents that collectively sell a lot of insurance, which is what an FMO/IMO/NMO does, I've never really understood the difference between these titles

If you're new to selling MS, it's probably a good idea to focus on the sales side now and aspire to an FMO contract later down the road.

 

[pcbinsurance]

This guy is probably around 70 yrs old and travels the world. Do you know about his succession plan? If you need to contact him, will he be in Tibet or at his office?

I would, as others suggest, look at getting contracts from the aforementioned IMO's as they are mainstays going forward.

Just my opinion.

 

[Roy2015]

Hey thanks for everyone's input here on this thread. Everyone's response is greatly appreciated. Here is what has happened so far. I responded to a Craigslist ad about Kellogg Ins. Marketing. In the ad they claim to be the best in the business w/ 47 years in the Senior market and have a roadmap to get me to 100k residual in 3-5 years. Possibly sooner depending on my work ethic. They also say that they will pay for some of the first lead order and then they have a free leads program based on my production. My contact there has given me success stories about agents in my area and has told me that he will have me shadow a successful agent here in Las Vegas.

This is why it sounded so good. The fact that they will let me shadow a successful agent (68 apps in last 3 months), 47 years in senior market, and an opportunity to earn free leads.

I have talked with my contact at Kellogg a few times but we have not discussed commission rates. Then yesterday I get 4 emails inviting me to contract with Equitable, CSI, Manhattan Life, and Humana. In the emails there is what appears to be an affiliate link to those sites. Should this be a red flag? The fact that we have not even discussed the contract levels and then I get this emails for contracting? Also, I'm jus wondering why no one has heard of them if they have been such a big presence in the Senior Market for so long. They appear to be very legit and I have no reason to believe otherwise as of yet. What do you guys think of this so far?

 

[TDFnCali]

Hey thanks for everyone's input here on this thread. Everyone's response is greatly appreciated. Here is what has happened so far. I responded to a Craigslist ad about Kellogg Ins. Marketing. In the ad they claim to be the best in the business w/ 47 years in the Senior market and have a roadmap to get me to 100k residual in 3-5 years. Possibly sooner depending on my work ethic. They also say that they will pay for some of the first lead order and then they have a free leads program based on my production. My contact there has given me success stories about agents in my area and has told me that he will have me shadow a successful agent here in Las Vegas.

This is why it sounded so good. The fact that they will let me shadow a successful agent (68 apps in last 3 months), 47 years in senior market, and an opportunity to earn free leads.

I have talked with my contact at Kellogg a few times but we have not discussed commission rates. Then yesterday I get 4 emails inviting me to contract with Equitable, CSI, Manhattan Life, and Humana. In the emails there is what appears to be an affiliate link to those sites. Should this be a red flag? The fact that we have not even discussed the contract levels and then I get this emails for contracting? Also, I'm jus wondering why no one has heard of them if they have been such a big presence in the Senior Market for so long. They appear to be very legit and I have no reason to believe otherwise as of yet. What do you guys think of this so far?

I think "they could be good" but why would I risk it when there's so many ppl available here that are legit, and even endorsed....what advantage do u have of going with an unknown??

We spoke in PMs, I told u my upline could help but hes not in LV.....then theres legit ppl on this forum like Todd King, JimmyUT, DaytonaGuy, Sman, Somarco, SIA too whos been doing Medicare for YEARS!! Some of them may not be an agency themselves, but they can put u in touch with whoever they are with & get u trained I bet.

At this rate (amount of questions/threads youve started/asked), you wont actually start for another 3mos, pick someone & get started man....you have to start somewhere!!

See u in LV in Mar!!

 

[Newby]

Hey thanks for everyone's input here on this thread. Everyone's response is greatly appreciated. Here is what has happened so far. I responded to a Craigslist ad about Kellogg Ins. Marketing. In the ad they claim to be the best in the business w/ 47 years in the Senior market and have a roadmap to get me to 100k residual in 3-5 years. Possibly sooner depending on my work ethic. They also say that they will pay for some of the first lead order and then they have a free leads program based on my production. My contact there has given me success stories about agents in my area and has told me that he will have me shadow a successful agent here in Las Vegas. This is why it sounded so good. The fact that they will let me shadow a successful agent (68 apps in last 3 months), 47 years in senior market, and an opportunity to earn free leads. I have talked with my contact at Kellogg a few times but we have not discussed commission rates. Then yesterday I get 4 emails inviting me to contract with Equitable, CSI, Manhattan Life, and Humana. In the emails there is what appears to be an affiliate link to those sites. Should this be a red flag? The fact that we have not even discussed the contract levels and then I get this emails for contracting? Also, I'm jus wondering why no one has heard of them if they have been such a big presence in the Senior Market for so long. They appear to be very legit and I have no reason to believe otherwise as of yet. What do you guys think of this so far?

Red alert!!! Wake up.

I can tell from just what you put so far you do NOT want to sign anything with these guys. First they advertise on Craig's List. That is ripe with the underbelly of the industry. Second the "free leads" scam. Free leads are sucker bait. Always have been. Leads cost money. Your phone book is better than those free leads they are going to provide you.

But the biggest red flag is they have not disclosed commission levels but have sent contracting to you. Not in a million years. Call the people you have been refered to. If you sign up with these guys you will be on here boo-hooing next month that you fell for a bad deal and now they have tied your contracts up.

 

[Norwayguy]

Hey thanks for everyone's input here on this thread. Everyone's response is greatly appreciated. Here is what has happened so far. I responded to a Craigslist ad about Kellogg Ins. Marketing. In the ad they claim to be the best in the business w/ 47 years in the Senior market and have a roadmap to get me to 100k residual in 3-5 years. Possibly sooner depending on my work ethic. They also say that they will pay for some of the first lead order and then they have a free leads program based on my production. My contact there has given me success stories about agents in my area and has told me that he will have me shadow a successful agent here in Las Vegas.

This is why it sounded so good. The fact that they will let me shadow a successful agent (68 apps in last 3 months), 47 years in senior market, and an opportunity to earn free leads.

I have talked with my contact at Kellogg a few times but we have not discussed commission rates. Then yesterday I get 4 emails inviting me to contract with Equitable, CSI, Manhattan Life, and Humana. In the emails there is what appears to be an affiliate link to those sites. Should this be a red flag? The fact that we have not even discussed the contract levels and then I get this emails for contracting? Also, I'm jus wondering why no one has heard of them if they have been such a big presence in the Senior Market for so long. They appear to be very legit and I have no reason to believe otherwise as of yet. What do you guys think of this so far?

They are advertising on Craigslist really if the program is so good why aimed at novices who do not know much.

 

[Roy2015]

Red alert!!! Wake up.

I can tell from just what you put so far you do NOT want to sign anything with these guys. First they advertise on Craig's List. That is ripe with the underbelly of the industry. Second the "free leads" scam. Free leads are sucker bait. Always have been. Leads cost money. Your phone book is better than those free leads they are going to provide you.

But the biggest red flag is they have not disclosed commission levels but have sent contracting to you. Not in a million years. Call the people you have been refered to. If you sign up with these guys you will be on here boo-hooing next month that you fell for a bad deal and now they have tied your contracts up.

Thanks for your response Newby. Yea the deeper I look in to this opportunity the more it looks like it might not be the best route for me to take. One problem is that I did sign one contract with Equitable thru a link that my contact at Kellogg provided me and got my agent # with them. Then I put on the brakes and sat back and decided to slow down and do more research before I sign anything else.

I only signed one contract thru Kellogg an did not assign my commission and I am independent so what will this mean moving forward? I can still contract with the other companies thru a different IMO if I want right? What should I do in this situation? If I choose to contract thru someone here on the forums (which I will almost certainly do now), for all my other contracts, should I just leave my Equitable contract with them and try and write other carriers? Or should I jus see if I can cancel this contract and resign with Equitable thru a different IMO? I kind of feel like a shmuck for signing the Equitable contract but I'm jus in a hurry to get the ball rolling. Any thoughts would be greatly appreciated

 

[Newby]

Thanks for your response Newby. Yea the deeper I look in to this opportunity the more it looks like it might not be the best route for me to take. One problem is that I did sign one contract with Equitable thru a link that my contact at Kellogg provided me and got my agent # with them. Then I put on the brakes and sat back and decided to slow down and do more research before I sign anything else. I only signed one contract thru Kellogg an did not assign my commission and I am independent so what will this mean moving forward? I can still contract with the other companies thru a different IMO if I want right? What should I do in this situation? If I choose to contract thru someone here on the forums (which I will almost certainly do now), for all my other contracts, should I just leave my Equitable contract with them and try and write other carriers? Or should I jus see if I can cancel this contract and resign with Equitable thru a different IMO? I kind of feel like a shmuck for signing the Equitable contract but I'm jus in a hurry to get the ball rolling. Any thoughts would be greatly appreciated

You want to research IMOs and put your other contracts through the one you choose. Make sure the IMO agrees to release you if you want to move in the future.

The Equitable contract will be tied up for 6-months but that's not a big deal. Call Equitable and ask them if you need to cancel the contract in order to move it in 6-months or if they allow you to move it after 6-months of non-production.

Proceed with caution. Use the up lines that participate here on the forum. They can't screw agents over and hide from it. Do NOT contract with anyone that is private messaging you. The scammers also work this forum but try to do it in the shadows.

 

[Russ]

Reads title.

Time to move on