I've been in the dark about how much do FMO's "obtain" (their share) from agent renewals??? What is their percentage when paying back chargebacks??? I would really like some feed back on this can someone please clear this up, Im sure I am not the only one in this problem? Thanks.
What to Know About what Your Entitled To?
- Thread starter Agent1357
- Start date
- 17,024
Uplines make a spread on renewals that could range from 1/2% to 5%. Usually the smaller amount.
When chargebacks occur, they lose the part they got paid on. Unless the agent doesn't pay his part back, then the up line has to pay the entire amount.
- 30,149
Way to go...you got a thumbs up on your 1st post!
Hey...wait a darned minute, you gave it to you.
- 17,024
I don't know what the top tier Med Sup guys make but I have heard around 30% on certain companies. Not my concern because I'm not selling mega millions in Med Sups. Street level with competitive med sups is usually in the low 20's. If someone is selling huge volume, I'm sure you can get more in the mid 20's with several carriers. If you have a Med Sup focused agency that is killing it you will get higher yet.
Only the huge Med Sup focused agencies (Agent Pipeline, Senior Market Sales, Amerilife, etc. ) are going to be at the top of the Med Sup food chain with most companies. No real reason for them to disclose what they are making because it doesn't affect most of us anyway.
Gee. I hate those words, "entitled to" as if someone owes you something. You are only entitled to what you work for under the terms of the contract you negotiate. It is totally up to you.. no one else. As to how much someone else makes, that doesn't even enter into the equation. If you are happy what what commission they offer, don't take it. JMO
While I agree an fmo does work and is entitled to earn off that.
At the same time knowing whats right and wrong goes a long way in getting the right commissions to earn a living.
When I first started I had well below the going commissions and did not know it because I had worked for a brokerage before that and it was above that, However when I was an employee I did not have to pay for leads, So when I was offered a deal by an FMO I did not question it and I struggled to buy leads.
By seeing this forum and other calls I received from other FMO's I found out what the going rates were and I was able to negotiate better contracts without which I could not have survived in this business
I don't believe someone should just blindly accept what they are offered and not be concerned what others are paid
That is the reason I said, "you are entitled to what you negotiate."
Right but you need to know what is in the pot to have a leg to stand on while negotiating.
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