2009 MAPD - PDP Commissions

[patch36]

I have some great FMO's, but the FMO's for my MA's offer nothing of value to me, and I can see little they offer to the rookie agents. The insurance companies provide all the certification and training. My Annuity FMO is great and the commission structures are pretty much the same with all the major FMO"S when it comes to annuities. I see some difference with individual health and life, but those are not my primary products.

So, are FMO's worthless? It depends on the FMO and the insurance line.

 

[allhealthandlife]

Has anyone heard yet what the actual commissions will be for 2009 on the MAPD or PDP plans?

I have heard rumours that Wellcare in Florida will be paying 300 first year then 150 for years 2 - 6 so we can assume that other carriers will follow suit and pay at least the same.

I think they know that this is the minimum hazard pay that agents are willing to accept to wade into this MA minefield.

 

[retread]

It's nice to hear an agent acknowledge that selling insurance is a business. For any business to be successful, selling insurance included, one needs to constantly be investing in their business if they want their business to be successful.

Probably the thing that gripes me the most is to see/hear agents who think that everything should be "free" and having to spend a couple of bucks is totally out of the question. This industry appears to be full of them. Not necessarily the members of this board but so many agents I have worked with and trained.

Those agents who view this as a business as opposed to a "quick way to make a buck" sitting in front of a computer screen in their underwear are the ones who will enjoy the fruits of their labor for years to come.

Most things are worth exactly what one pays for them.

I don't completely agree with you here, Frank.

First of all, the carriers are making a very large profit on the clients I sell, and can afford to raise the commission level. I think they will pay higher commissions if agents become scarce if these new rules actually purge the non-compliants. (Personally, I think they will just find a rock to hide under)

Secondly, FMO's have been getting a free ride on my services... they do absolutely nothing to earn an override. I am certain that carriers will not consider eliminating the FMO distribution channel. Too bad... this is a waste of money (IMHO).

Thirdly, carriers have been getting a free ride on the backs of independent agents who have been shouldering much of the costs of marketing their plans for them in the past. Those carriers that start sharing lead sources from their massive direct marketing will attract independents like a magnet, increasing the plans' market share. It's already happening. If FMO's don't meet the challenge by offering free (legitimate) leads, they will become dinosaurs. So far, the "free" leads I have obtained from one of my FMO's have been worse than what I get from a cheap mailing list... 99% JUNK!

Now these leads don't necessarily need to be provided "free". A carrier can establish a reasonable cost per lead if they want. What they have been doing in the past is only giving them to their in-house captives with consequent reduced commission. If they provided these in-house leads at a reasonable cost to independents (and implement tracking to eliminate the leads going to competeing plans) I, for one, would buy all I could handle.

Personally, I am tired of shelling out money for worthless leads. The only kind of leads that are worthwhile are in-house (the ones carriers harvest from their direct mail campaigns...) the rest that are sold by so-called "professional lead companies" are not worth the powder to blow them away. Anyway, with the new rules implemented by CMS, there is a good chance they will be legislated out of existence, since very few (if any) of them are legitimate requests for info to begin with.

YMMV

 

[Paradigm]

I don't completely agree with you here, Frank.

First of all, the carriers are making a very large profit on the clients I sell, and can afford to raise the commission level. I think they will pay higher commissions if agents become scarce if these new rules actually purge the non-compliants. (Personally, I think they will just find a rock to hide under)

Secondly, FMO's have been getting a free ride on my services... they do absolutely nothing to earn an override. I am certain that carriers will not consider eliminating the FMO distribution channel. Too bad... this is a waste of money (IMHO).

Thirdly, carriers have been getting a free ride on the backs of independent agents who have been shouldering much of the costs of marketing their plans for them in the past. Those carriers that start sharing lead sources from their massive direct marketing will attract independents like a magnet, increasing the plans' market share. It's already happening. If FMO's don't meet the challenge by offering free (legitimate) leads, they will become dinosaurs. So far, the "free" leads I have obtained from one of my FMO's have been worse than what I get from a cheap mailing list... 99% JUNK!

Now these leads don't necessarily need to be provided "free". A carrier can establish a reasonable cost per lead if they want. What they have been doing in the past is only giving them to their in-house captives with consequent reduced commission. If they provided these in-house leads at a reasonable cost to independents (and implement tracking to eliminate the leads going to competeing plans) I, for one, would buy all I could handle.

Personally, I am tired of shelling out money for worthless leads. The only kind of leads that are worthwhile are in-house (the ones carriers harvest from their direct mail campaigns...) the rest that are sold by so-called "professional lead companies" are not worth the powder to blow them away. Anyway, with the new rules implemented by CMS, there is a good chance they will be legislated out of existence, since very few (if any) of them are legitimate requests for info to begin with.

YMMV

The FMO play a role in recruiting agents for the carriers. Agents would find them as easy without the FMO and they would have to advertise for agents themselves

As far as the carriers the only reason they pay us high commissions 20+ on health and 100+ on life is because we do the marketing. The captive model is only like 50-60% of that. I would rather have the extra cash. I get a good bang for the buck typically 500-1000% return on my investment and I buy alot of leads
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or were u just talking about MA?

 

[insurance0707]

The carriers can't keep silent much longer....AEP is coming up. Let us know now commissions, benefiit/copays, etc. instead of wasting our time with certification on products we might not even offer for 2009

 

[retread]

The carriers can't keep silent much longer....AEP is coming up. Let us know now commissions, benefiit/copays, etc. instead of wasting our time with certification on products we might not even offer for 2009

AMEN!! I second that motion!

 

[Frank Stastny]

I don't completely agree with you here, Frank.

First of all, the carriers are making a very large profit on the clients I sell, and can afford to raise the commission level. I think they will pay higher commissions if agents become scarce if these new rules actually purge the non-compliants. (Personally, I think they will just find a rock to hide under)

Secondly, FMO's have been getting a free ride on my services... they do absolutely nothing to earn an override. I am certain that carriers will not consider eliminating the FMO distribution channel. Too bad... this is a waste of money (IMHO).

Thirdly, carriers have been getting a free ride on the backs of independent agents who have been shouldering much of the costs of marketing their plans for them in the past. Those carriers that start sharing lead sources from their massive direct marketing will attract independents like a magnet, increasing the plans' market share. It's already happening. If FMO's don't meet the challenge by offering free (legitimate) leads, they will become dinosaurs. So far, the "free" leads I have obtained from one of my FMO's have been worse than what I get from a cheap mailing list... 99% JUNK!

Now these leads don't necessarily need to be provided "free". A carrier can establish a reasonable cost per lead if they want. What they have been doing in the past is only giving them to their in-house captives with consequent reduced commission. If they provided these in-house leads at a reasonable cost to independents (and implement tracking to eliminate the leads going to competeing plans) I, for one, would buy all I could handle.

Personally, I am tired of shelling out money for worthless leads. The only kind of leads that are worthwhile are in-house (the ones carriers harvest from their direct mail campaigns...) the rest that are sold by so-called "professional lead companies" are not worth the powder to blow them away. Anyway, with the new rules implemented by CMS, there is a good chance they will be legislated out of existence, since very few (if any) of them are legitimate requests for info to begin with.

YMMV

I agree with you but I'm not sure what part of my post you don't agree with. It sounds like we are talking about two totally different things. Maybe I need to read your post more carefully.

I was talking about agents and it looks like you are talking about companies and FMO's.

 

[retread]

I agree with you but I'm not sure what part of my post you don't agree with. It sounds like we are talking about two totally different things. Maybe I need to read your post more carefully.

I was talking about agents and it looks like you are talking about companies and FMO's.

I was addressing the "free leads" comment.

 

[Insuranceman]

I have spoken to several FMO's still no information on MA commissions, what the frig is going on?

 

[midwestbroker]

Oct 1st should be the day they all release their commission info...only 1 more day to go...