Why Do We NEED Uplines (FMOs)?

It all depends on the IMO, you will have good and bad. Ideally they should be working to assist you with either training, leads, service, etc and you pay them with an overwrite. Unfortunately, like everywhere in sales, there are good and bad ones.
 
...you pay them with an overwrite.....

I think this is where most agents have it wrong. The Insurance Carrier pays them with an overwrite, not the agent. The agent does not have a say on the FMO's overwrite.

Often times, the FMO and the agent do not have a contract with each other. The Insurance company has a contract with the FMO and a separate contract with the agent.

The FMO and the agents do not have contractual obligations to each other.

The sooner agents learn this the more at peace you will be. FMO's are contracted to bring them agents. Agents are contracted to bring the Insurance company policyholders.
 
Correct me if I'm wrong but the FMO is still being paid for each piece of business we bring in? Therefore, you think they would be a little more helpful with leads, getting information out about products, etc.
 
I think this is where most agents have it wrong. The Insurance Carrier pays them with an overwrite, not the agent. The agent does not have a say on the FMO's overwrite.

Often times, the FMO and the agent do not have a contract with each other. The Insurance company has a contract with the FMO and a separate contract with the agent.

The FMO and the agents do not have contractual obligations to each other.

The sooner agents learn this the more at peace you will be. FMO's are contracted to bring them agents. Agents are contracted to bring the Insurance company policyholders.

By YOU pay them with an overwrite, I was referring to the sale of a product. You sell it, they get paid. Can see where it could be miscontrued though.

Haven't seen any contracts that didn't have a spot for an upline signature. Even I went direct to the company, they had a spot for an upline signature if I were to have gone through one. The contracts are through the company but the IMO is party to the contract. If they weren't, they wouldn't have any say in a release, it would be strictly up to the carrier.
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Correct me if I'm wrong but the FMO is still being paid for each piece of business we bring in? Therefore, you think they would be a little more helpful with leads, getting information out about products, etc.

One would think! As an agent, you would think they would be out prospecting new clients and trying to build their book. But there are agents that just continually roll their book from carrier to carrier to get 1st yr commissions. All dependent on the agent/IMO...there are good and bad out there, time will usually separate them out.
 
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Correct me if I'm wrong but the FMO is still being paid for each piece of business we bring in? .

You are correct


Therefore, you think they would be a little more helpful with leads, getting information out about products, etc.

You would think. But that is not the case.

I'm forced to deal with 2 FMO's because I wasn't able to contract directly. Both of these two FMO's are worthless. All they both do is send me a birthday card. Nothing else.
If you ask a question, they refer you directly to the carrier.
 
You are correct




You would think. But that is not the case.

I'm forced to deal with 2 FMO's because I wasn't able to contract directly. Both of these two FMO's are worthless. All they both do is send me a birthday card. Nothing else.
If you ask a question, they refer you directly to the carrier.


Mine doesn't even provide specific provider information that would ultimately benefit themselves with more business from the agents. We have another MA that is soon to be contracted with a medical group that was always exclusive. You might think that they would be all over this, handing out contracts like candy, but I had to find out from an out-of-state agency that this was happening.
 
I know of several companies that allow you to go direct..

The reason I go under a FMO is because not only is dealing with the insurance companies a pain with fighting commission battles and what not but I also get additional training and lead support along with having people who fight my battles for me and save me from when the big insurance companies try to walk all over me. What FMO are ya'll using?
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You are correct




You would think. But that is not the case.

I'm forced to deal with 2 FMO's because I wasn't able to contract directly. Both of these two FMO's are worthless. All they both do is send me a birthday card. Nothing else.
If you ask a question, they refer you directly to the carrier.

I have an SGA and I know that if I have people under me that have contracts other places they would be lucky to get a birthday card.. I mean would you give any leads that you paid money on to someone that might sell a product that they are under a competitor for?
 
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Central FMO opines:
A good FMO will earn their overide by providing underwriting assistance, case placement, case design, and scrubbing the app. Not to mention that you are generally not taking a commission haircut vs. going direct, so all of this assistance is free.


With MA, there is NO underwriting involved. The agency does not help with member services issues and does not share "best practices", instead deferring those question to Broker DSU. I do a lot of legwork to help create Special Election clients via the LIS and Medicare Savings Programs. All I really need is a place to run off copies and flyers. The admin even has a problem with that apparently. I'm not ashamed to say that I know "more" than those clowns that staff the upline.

I missed this reply somehow, and yes FMOs on the MA side of things are generally not near as useful as life and annuity FMOs. I shop my MA contracts every year and at the end of the day I tell my current upline how many leads he needs to provide in order to keep me.
 
From the carrier stand point, I can tell you from working closely with the office staff of a large carrier here in KC they love FMO's because it decreases all the "stupid agent calls". Think of all the new agents who need hand holding or agents that don't bother reading anything and just pick up the phone to call. There were lots of "how did this person get their insurance license" and head pounding after the calls.
 
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