New Senate report on agent commissions

[Jim Wright]

$50 per app is pretty standard. So, you've been leaving at least $12k on the table.

Marketing dollars are calculated on Cost of Acquisition. Market standard says it's around $100 but each carrier does it differently.

Carriers also expect that FMO's do not fund 100% of a marketing cost. It's supposed to be a Co-op so the carriers expect that FMO's share around $50 per app expected.

That said, there is not a lot of oversight on any of this which is why you hear of some agents getting giant checks.

 

[EckoRomeo]

That said, there is not a lot of oversight on any of this which is why you hear of some agents getting giant checks.

This is why CMS was trying to eliminate it. Plus it would be much simpler to increase commission by $50. That way it's uniform.

There are some carriers that I write that don't get any marketing money for under the current system. I would have if the proposed rule had gone through. So, taking this out of the FMO's hands would be beneficial to the agent.

 

[MedicareWAA]

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.

You're describing the way your FMO operates. I'll take you at your word that you provide value and follow the rules. But that's not the way the largest FMOs and call centers operate. You may be surprised just how much some of us know … we're not children, although you make a good point that not all FMOs are the same.

 

[MedicareWAA]

Marketing dollars are calculated on Cost of Acquisition. Market standard says it's around $100 but each carrier does it differently.

This isn't true for everyone. That's the problem. Some are paid $50, some are paid literally $500.

 

[Jim Wright]

So where can i get more than the FMV for personal production without establishing a downline and how much more can i get if i am a consistent producer with a huge book of business? i don't need marketing money because because i am 100% referrals.

You have to talk to FMO's and see what they offer. Or ask your current

 

[Jim Wright]

This is why CMS was trying to eliminate it. Plus it would be much simpler to increase commission by $50. That way it's uniform.

There are some carriers that I write that don't get any marketing money for under the current system. I would have if the proposed rule had gone through. So, taking this out of the FMO's hands would be beneficial to the agent.

But that's assuming the carriers will give agents the marketing money if they aren't giving to the FMO's. I would doubt that would happen

 

[Jim Wright]

This isn't true for everyone. That's the problem. Some are paid $50, some are paid literally $500.

I'm not saying you're wrong but you would have to show me where you've seen $500. You would also have to ask if it's a combination of OR and Marketing $$

 

[EckoRomeo]

But that's assuming the carriers will give agents the marketing money if they aren't giving to the FMO's. I would doubt that would happen

No assumption needed. Last years proposed rule eliminated marketing money but increased commissions and renewals $50 to compensate for administrative expenses. It would be built into the commission.

Also, I get marketing money directly from carriers all the time. I could send a couple of text and get $2-3k right now. So, yes, agents would get marketing money without FMO's . We do now .

 

[MedicareWAA]

I'm not saying you're wrong but you would have to show me where you've seen $500. You would also have to ask if it's a combination of OR and Marketing $$

I don't want to break any confidences. It depends on the carrier and the agency/FMO. Sometimes OVR + other money, sometimes money more creatively put into older OVR, sometimes performance incentives based on XYZ sales and non-sales outcomes.

Increasingly, we're seeing business models that incentivize churn, given many of these arrangements are front-loaded into the first year. That's been the trend for several years and it's not great for the industry, longer term.

 

[Special Agent]

$50 per app is pretty standard. So, you've been leaving at least $12k on the table.

which of the big carriers (uhc,humana,etna) has more marketing money available to agents through fmos for production ?