What questions would you ask for an IMO position?

[DHK]

I had a great conversation with the founder of an IMO today. (To be clear, this is not an MLM IMO in any way, nor am I interested.) I have never worked for or with an IMO on their side of the business. My job/role would be to help grow the # of contracted agents, some casework, some hand-holding, etc., and I would earn an override and an initial base salary as well. There are lots of resources already available to help with this, so I don't necessarily have to "reinvent the wheel". Of course, it would be expected that my personal production would go to that IMO. As it grows, there is potential for partnership, at least per this initial conversation.

I am intrigued (as well as highly complimented for being the first that he's contacted to expand his firm with). This IMO focuses on life insurance, annuities, and long term care.

Some of you work for or ARE an IMO. What questions would you ask?

 

[CALTCAgent]

Just off the top of my head, what happens when/if you part ways, do you keep the agents override you recruited (probably not). Also can you continue to contact those agents if you leave as maybe they want to keep working with you elsewhere.

 

[Cornelius]

Is the ability to be part W2 what makes it sound like MLM? Will the recruited agents have the ability to recruit and override?

My biggest issue with the MLM companies is the contract changes. It's very easy to go in but one must read the contract when leaving. If your recruiting agents and training them that field force has value.

As your going in as a "founder" will you get the top comp along with the salary? Will you be captive?

This one is debatable but if they have plans to go public in the future will you be offered equity? God forbid at death what happens to your book of business.

Basically consider what you don't agree with when considering MLM financial companies and consider the opposite.

 

[Tahoe Ray]

OK.

So most of the long-timers here know that I migrated from all of my income being based on recruiting/agents production to personal production. I still do a lot of business as an IMO (more than 50% of my income) and here is my experience:

Most agents are terrible and can't sell anything. There are endless case design requests that don't ever result in an app, let alone a placed case.

Be prepared for chargebacks of a significant level. I average 20k/yr in chargebacks and while I recoup some of that, it still stings.

Agents lie. Most of the "I get x comp from this IMO" are FOS. They don't write and anyone shopping for 5 points is going to leave you in a heartbeat.

I had to "earn in" to my current arrangement. My name is officially on all documents at this point but it took several years. If you're not on the LLC and the business license, you don't own shit.

My advice:

1) Clearly define these "growth for partnership" metrics. I was very deliberate in what I had to do to achieve a partnership status and gave up a lot upfront to get there.

2) Define your role within the firm. I was/am an annuity specialist so negotiated accordingly. I now run all annuities in my firm, with my partner getting a high split for his clients but we (my company) still do everything.

3) Don't get into a bunch of exit questions. As an agent, that's important but as a business partner, it's a red flag. You should be focused on driving revenue to the firm (which you should have a piece of) rather than figuring out what happens if you bounce.

4) Set up an LLC between both of you. Be on the joint license.

5) Be ready to sell. Tell your partner the same. Several big companies will offer 5-6x profit for your business. The timing may not be right but if it is, be prepared.

You can call me, David, if you want to discuss this in detail. I've been independent on the wholesale (IMO) side of the business for 10+ years now so I can likely help with some of the specifics.

At the end of the day, you need to trust who you're working with. I know that's a leap but every successful partnership requires it.

Good luck!

 

[DHK]

Thank you all. Very good points brought up.

I guess I'm just not sold on going in this direction anyway? I do trust this guy and I have a great relationship with him.

I guess I may not want to even go down this particular road? I'm just not feeling the 'spark' of excitement on this? It's kind of odd, but even if everything was 'perfect'... I'm not sure I want to head down this road anyway.

It's kinda strange, but while I think I can do well, I don't think I want to?

 

[Tahoe Ray]

Thank you all. Very good points brought up.

I guess I'm just not sold on going in this direction anyway? I do trust this guy and I have a great relationship with him.

I guess I may not want to even go down this particular road? I'm just not feeling the 'spark' of excitement on this? It's kind of odd, but even if everything was 'perfect'... I'm not sure I want to head down this road anyway.

It's kinda strange, but while I think I can do well, I don't think I want to?

100% don't do this then.

You could get a ton of agents from this forum alone but if your heart isn't there, no one will end up happy.

Things may be dicey rn for your current situation but you can always write on your own.

 

[DHK]

You could get a ton of agents from this forum alone but if your heart isn't there, no one will end up happy.

I've also got over 10k agents in the Facebook group and over 700 in my own Whole Life group on Facebook. And none of that is including the IMO's own agent recruiting resources, etc.

I think I'm just more vested in my own branding and I think I'd rather remain in my niche specialization and only expand with agents within the same niche? I think that would be more exciting for me than partnering with someone else.

Plus, I want to write a training course and 'retail' that as well.

I think I'd rather be a coach than a manager or IMO.

Lots of possibilities but I don't think this particular avenue (at this time) is right for me. I'm just not enthusiastic about it.