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

[Roy2015]

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.

Thanks for your help Newbie. I will contact Equitable tomorrow. I will def proceed with caution from this point on.

 

[sshafran]

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

I've never seen so many questions in one post.

You need to take a lower commission because your upline will be inundated with questions. Perhaps the bigger override will give him incentive to answer the unending questions??

 

[sman]

Thanks for your help Newbie. I will contact Equitable tomorrow. I will def proceed with caution from this point on.

So what you've been doing isn't proceeding with caution? I can't imagine how much slower you'll move and how many more questions you'll have now that you aren't throwing caution to the wind.

If I were you, I'd take Jimmy up on his offer.

Take this for what it's worth, you are majoring on the minors. I don't care if you get a 100% contract, if you don't sell anything, you are making the same amount as a person on a 1% contract who sells nothing. What you should be doing is figuring out how you are going to get in front of people (whether face to face or over the phone) and developing product knowledge (knowing Medicare inside and out and how Med Supps and MAPD's work). Those are the factors that will matter the most. Not what percentage commission you earn.

I had been in the insurance business for 16 years before I wrote my first Med Supp. This forum wasn't around and I didn't have anyone to train me when I started on the Medicare side of this business. My first contract was with United World and it was at 15%. I'm pretty sure that was less than street at the time. I didn't know any better since I wasn't familiar with the Medicare market and what normal commission rates were. But I jumped right in and started writing business. After a couple of months they increased me to 17% commission (at my request) because I was producing. The point is, I wasn't worried too much about my commission percentage or how much the FMO was making. I just knew I needed to write business as that is the only way I earn money.

Stop focusing on the wrong things. Yes, it's good to get at least street commission if you can. But if you are going to be bombarding your FMO with questions, street may be too high for you. I think most FMO's don't earn more than 5 points on Med Supp overrides (just my educated guess) and that may be on the high end. It's probably somewhere between 2-4%. So imagine you write a Med Supp with a $125 monthly premium. The FMO is going to get somewhere between $3-$6 per month. Now think how much work and time you would put into earning $3-$6 per month. So if you are going to be taking up a lot of time with them in the beginning it's only fair that they get a higher override and you get less commission. And that's always negotiable. Get it in writing that they will increase your commission based on a certain amount of production.

Years ago I had a district manager who would always tell agents, "your raise will be effective when you are". That holds true in this business. You want to make more money and get a higher commission? Well, you have to produce.

 

[Roy2015]

So what you've been doing isn't proceeding with caution? I can't imagine how much slower you'll move and how many more questions you'll have now that you aren't throwing caution to the wind.

If I were you, I'd take Jimmy up on his offer.

Take this for what it's worth, you are majoring on the minors. I don't care if you get a 100% contract, if you don't sell anything, you are making the same amount as a person on a 1% contract who sells nothing. What you should be doing is figuring out how you are going to get in front of people (whether face to face or over the phone) and developing product knowledge (knowing Medicare inside and out and how Med Supps and MAPD's work). Those are the factors that will matter the most. Not what percentage commission you earn.

I had been in the insurance business for 16 years before I wrote my first Med Supp. This forum wasn't around and I didn't have anyone to train me when I started on the Medicare side of this business. My first contract was with United World and it was at 15%. I'm pretty sure that was less than street at the time. I didn't know any better since I wasn't familiar with the Medicare market and what normal commission rates were. But I jumped right in and started writing business. After a couple of months they increased me to 17% commission (at my request) because I was producing. The point is, I wasn't worried too much about my commission percentage or how much the FMO was making. I just knew I needed to write business as that is the only way I earn money.

Stop focusing on the wrong things. Yes, it's good to get at least street commission if you can. But if you are going to be bombarding your FMO with questions, street may be too high for you. I think most FMO's don't earn more than 5 points on Med Supp overrides (just my educated guess) and that may be on the high end. It's probably somewhere between 2-4%. So imagine you write a Med Supp with a $125 monthly premium. The FMO is going to get somewhere between $3-$6 per month. Now think how much work and time you would put into earning $3-$6 per month. So if you are going to be taking up a lot of time with them in the beginning it's only fair that they get a higher override and you get less commission. And that's always negotiable. Get it in writing that they will increase your commission based on a certain amount of production.

Years ago I had a district manager who would always tell agents, "your raise will be effective when you are". That holds true in this business. You want to make more money and get a higher commission? Well, you have to produce.

I appreciate your response here sman as I know you are a successful veteran,
and I'm sorry about all the questions, I just want to know what I am getting myself into here. I don't actually plan to be out in the field until March as I am working a full time job until then. So I feel I have time to get a better understanding of how all of this works.

I'm definitely not trying to get a contract that I don't deserve, however I have just heard that I should shop around for the best contract I can get to start with. I was just confused as to how the FMO got the override if I did not assign my commission. It is clear now tho as we are both paid independently from the carrier.

My time now will be spent on product knowledge for sure and learning which marketing methods you guys are successfully using now. This forum is such a great tool for learning and helping us new agents get a jump start in this business that I hope I'm not making anyone angry with all of the questions. I welcome all of you veterans to my threads and greatly appreciate any help you guys can give me. i hope to be a success story in the near future!

 

[beachbum2012]

I'm actually enjoying the questions and seeing all the responses to them in all your threads. I'm learning a lot. This is my 4th year in the Medicare market and when I started I just went with an agency co-owned by a family friend because I was out of work and didn't have any other good options. I had no plan to get into this industry, but he made it sound like a great long-term option.

I don't regret my decision and if I had to go back I really wouldn't change much. Being brand new to sales and new to the industry, my focus has always been on learning. My agency has always provided my leads, whether setting appointments for me or giving me returned BRCs from folks who our T/Ms couldn't reach. As I'm looking to relocate to a different state, it's been pretty eye-opening learning about other lead sources, their costs, and what I've actually been "paying" for (and will continue to pay for) my leads in the form of % of my commission my agency keeps.

I chalk that up to the price of getting started though and the price of learning. My agency has provided me with leads and a modest of amount of training and support. There's no way I could have gone completely independent when I started since I didn't have money to pay my bills after the first year let alone money to pay for leads.

The first 3 years in this job pretty much sucks. Once you get thru that the sky really is the limit. I've changed careers several times and my focus has always been twofold: enjoy what I'm doing, and get better every day. Maybe you could add a third in this job, and that is always strive to do what's best for the client. I think as long as you keep the right perspective, things will work out. It'll just be a matter of time.

 

[Thad.Sipple]

I appreciate your response here sman as I know you are a successful veteran, and I'm sorry about all the questions, I just want to know what I am getting myself into here. I don't actually plan to be out in the field until March as I am working a full time job until then. So I feel I have time to get a better understanding of how all of this works. I'm definitely not trying to get a contract that I don't deserve, however I have just heard that I should shop around for the best contract I can get to start with. I was just confused as to how the FMO got the override if I did not assign my commission. It is clear now tho as we are both paid independently from the carrier. My time now will be spent on product knowledge for sure and learning which marketing methods you guys are successfully using now. This forum is such a great tool for learning and helping us new agents get a jump start in this business that I hope I'm not making anyone angry with all of the questions. I welcome all of you veterans to my threads and greatly appreciate any help you guys can give me. i hope to be a success story in the near future!

So because someone is on the forum they are a successful veteran? You know this how? Did you see all the company trips he has won? Have you seen his mansion and Range Rovers?

No offense to SMAN, I'm not saying he isn't. This is directed at Roy as an example.

But please understand my point, you are assuming things with no research, and simply take someone's word because they are nice and knowledgeable, the easiest agent to screw are the ones we befriend and impress without showing proof of anything.

You need took look at everyone with your eyes wide shut.

 

[sman]

So because someone is on the forum they are a successful veteran? You know this how? Did you see all the company trips he has won? Have you seen his mansion and Range Rovers?

No offense to SMAN, I'm not saying he isn't. This is directed at Roy as an example.

But please understand my point, you are assuming things with no research, and simply take someone's word because they are nice and knowledgeable, the easiest agent to screw are the ones we befriend and impress without showing proof of anything.

You need took look at everyone with your eyes wide shut.

While I get your point, I have absolutely zero to gain here as I'm not recruiting anyone. So I won't be screwing any agents (my wife wouldn't like that too much and I'd lose half my sh!t if I did).

 

[Thad.Sipple]

While I get your point, I have absolutely zero to gain here as I'm not recruiting anyone. So I won't be screwing any agents (my wife wouldn't like that too much and I'd lose half my sh!t if I did).

That part was not directed at you. I was generalizing.

 

[Newby]

So because someone is on the forum they are a successful veteran? You know this how? Did you see all the company trips he has won? Have you seen his mansion and Range Rovers?

No offense to SMAN, I'm not saying he isn't. This is directed at Roy as an example.

But please understand my point, you are assuming things with no research, and simply take someone's word because they are nice and knowledgeable, the easiest agent to screw are the ones we befriend and impress without showing proof of anything.

You need took look at everyone with your eyes wide shut.

^^^Wise post right there^^^ (Not personal to Sman. I don't know him at all)

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While I get your point, I have absolutely zero to gain here as I'm not recruiting anyone. So I won't be screwing any agents (my wife wouldn't like that too much and I'd lose half my sh!t if I did).

" I have absolutely zero to gain here as I'm not recruiting anyone. "

That's the exact line the scammers use. Believe me. They work in pairs or threes or fours.

Sman you are fine but you wouldn't believe the PMs that agents get on this place when recruiters smell blood. And most start out with that very line.

 

[sman]

^^^Wise post right there^^^ (Not personal to Sman. I don't know him at all)

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" I have absolutely zero to gain here as I'm not recruiting anyone. "

That's the exact line the scammers use. Believe me. They work in pairs or threes or fours.

Sman you are fine but you wouldn't believe the PMs that agents get on this place when recruiters smell blood. And most start out with that very line.

I don't doubt it, but mine is truth. I'm not working with anybody who recruits and I'm definitely not recruiting for myself. I don't want the headache that you recruiters have to deal with. I thought about it several years back but then I remembered my days as a sales manager for an insurance company. No thanks.

For every agent who actually produces, there are at least 10 who don't produce and those are usually the ones who take up all of your time. Now if I could get 50-100 agents like me, I'd be all for it.