New Senate report on agent commissions

[MedicareWAA]

I thought your were just a writing agent ? Do you a hierarchy of agents under you?

No, I am a small guy. I was giving a hypothetical based on the things I've learned from others who are much bigger than me.

 

[Jim Wright]

I get what you are saying. And I appreciate what you are saying. I know that's not how it works, and no system is perfect. No matter what industry someone is in they will feel they are getting an unfair treatment. Having said that I'll put you on the spot what does your FMO do better than others?

Happy to list what we think are differentiators but I do just want to say that I don't think we are the only FMO in the country doing these things. There is maybe one thing we do better than everyone else (ICHRA) but that's really a group product that doesn't apply to individual producers.

I'll start with some things we do worse than a lot of our competitors
-Lead Gen: We will help fund a lead gen campaign but we don't get involved.
-Technology: We have one of each type of platform (CRM, Enrollment, etc) instead of buying everything and/or building our own that are available.
-Constant email and training. Could be a pro or con depending on who you are but we don't react to every potential change in the market and we don't blast out carrier incentives and highlights every week.
-OR and Marketing $$. We don't make as much as the big guys so we can't pay as much out.

Things we do well:
-Relationship with our agents. Seems small but most of the brokers I call on either don't know who their FMO rep is or they haven't spoken to them in years. I try to see most in person at least once per year, usually more.
-Clear Contracts and timed Open Releases. Override tiers are set so no one has to ask for overrides. If anyone requests a release, we provide it in 48 hours. Lots will say they have an open release policy and then never respond when you ask for one.
-We do not have any contracts under any of the giant FMOs except for one Med Supp company that we had a contract with another FMO before we became one and before that FMO was bought by Integrity
-Trip. We have an annual trip for our top producers to say thank you. There will be carrier reps on it but they do not present. There are a few group dinners and events but no meetings. Fun only!

There are probably some others but I don't want to write a book on here. You may roll your eyes at some of those but those are some of the things we get feedback on that producers like about us

 

[MedicareWAA]

OR and Marketing $$. We don't make as much as the big guys so we can't pay as much out.

So do you not share any of the marketing money? If not, where does it go?

 

[EckoRomeo]

In a perfect system an FMO pays to get an agent licensed and appointed (and continues to pay for that) trains and helps agents become compliant. At first an FMO gives them a leads list and teaches them how to be a dog out there. FMO can take all the overrides until all training and licensing fees have been recouped and the FMO has made a profit. Once a profit is made then the agent starts to get 75% of the override, and has to pay for licensing and training and appointments themselves. That is how an FMO should work. But then they wouldn't have money to pay a bloated staff. FMO's in its current form is a Ponzi scheme. My FMO has never paid a darn thing for me. If I have a question though they will refer me to there website.

Good idea…

Or… like a supplement commission… FMO overrides end after an agent has been under them for 3-5 years. After that the agent is on auto pilot.

 

[Todd King]

If you're not making the money Don mentioned, someone else is and you just don't know what you're leaving on the table. There are at least two large carriers out there paying $500 first year non commission money.

And many agents see very little value from their FMO at least when it comes to Advantage, drug plans, and supplements. The most value comes from when the FMO shares some portion of their money.

The hard truth is that FMOs are paid far more than the value they create. They are recruiters who sometimes train very new agents until the new agents don't need their hands held.

You do you. Just don't pretend the FMO is providing hundreds of dollars of value per member per year.

And you do you. We'll agree to disagree, but I still think I'm in a better position to know what's available and what isn't...but believe what you want to believe.

 

[Todd King]

I think Jim Wright is doing an excellent job of trying to explain what FMOs do and don't do. Therefore, I really don't need to add anything but a couple of LOLs at what some of you are saying. We'll never convince you of anything we're saying. It's sort of like being the parent and child. Sometimes, even though the parent has much more practical experience at life, you just have to let the kid learn on their own or just never learn at all. All due to their unwillingness to learn from other's experience. Some things are just harder to grasp unless you have the actual experience.

I will say though, we have many agents that have higher comps than they could ever get on their own going straight to the insurance company.

 

[EckoRomeo]

I think Jim Wright is doing an excellent job of trying to explain what FMOs do and don't do. Therefore, I really don't need to add anything but a couple of LOLs at what some of you are saying. We'll never convince you of anything we're saying. It's sort of like being the parent and child. Sometimes, even though the parent has much more practical experience at life, you just have to let the kid learn on their own or just never learn at all. All due to their unwillingness to learn from other's experience. Some things are just harder to grasp unless you have the actual experience.

Yeah... AGENTS have no idea what kinda value their FMO provides them. It takes an FMO owner to explain that to us... like a parent to a child. Our experience as AGENTS means nothing. All that business I write without any help from an FMO? Means NOTHING... Your experience as an FMO OWNER is more insightful than ACTUAL AGENTS.

I will say though, we have many agents that have higher comps than they could ever get on their own going straight to the insurance company.

This isn't the mic drop you think it is. You mean you give high-producing agents preferable contracts? No, shit. That's what CMS was trying to eliminate: compensation above CMS maximums.

Also... I get higher comps from my FMO. Started last year after I threatened to leave. You're not teaching me anything I don't know.

 

[Jim Wright]

So do you not share any of the marketing money? If not, where does it go?

Sorry if I didn't flesh that out well. We share pretty much all of the marketing money. We just don't get as much as the big guys so there isn't as much to give out. Same with OR. Sometimes I talk to agents who are getting $200+ in OR from their upline. That's more than we make so I can't match it.

I met someone last year who got an offer from Agent Pipeline for $100k+ in marketing and OR. That's just not our business model.

 

[Jim Wright]

I think Jim Wright is doing an excellent job of trying to explain what FMOs do and don't do. Therefore, I really don't need to add anything but a couple of LOLs at what some of you are saying. We'll never convince you of anything we're saying. It's sort of like being the parent and child. Sometimes, even though the parent has much more practical experience at life, you just have to let the kid learn on their own or just never learn at all. All due to their unwillingness to learn from other's experience. Some things are just harder to grasp unless you have the actual experience.

I will say though, we have many agents that have higher comps than they could ever get on their own going straight to the insurance company.

Thanks Todd! Like most things in life, when there are a few bad apples, the whole lot gets tossed.

 

[scagnt83]

The parent child analogy is very true.

There are many things a parent does behind the scenes to make a childs life function properly. The child has no clue they happen. And often does not want to hear about it when they feel wronged by the parent.

Same with agents. There are lots of things an IMO does behind the scenes that agents are not aware of. And lot of advantages to having one that agents are not mindful or aware of.

The analogy is also true, because some agents act out like a child in regard to the agent/imo relationship.