9 Commission levels?

[SouthernAdvisor]

New here - Help explain this.

FMO Im looking at has me at a level 4.
Are there 9 commission levels?
Aetna contract shows payout at level 8.

Does this mean the FMO is assigning?

FMO is taking half the commission.

I thought FMOs didnt assign?
What is street level?

Please clarify.

 

[Tahoe Ray]

New here - Help explain this.

FMO Im looking at has me at a level 4.
Are there 9 commission levels?
Aetna contract shows payout at level 8.

Does this mean the FMO is assigning?

FMO is taking half the commission.

I thought FMOs didnt assign?
What is street level?

Please clarify.

Are you specifically asking about Aetna or just generally?

 

[SouthernAdvisor]

Are you specifically asking about Aetna or just generally?

Aetna is just an example.

 

[Tahoe Ray]

Aetna is just an example.

Some carriers have more, some less. The level number doesnt correspond directly with the comp.

For instance, a level 5 from an annuity carrier may pay 7% and level 10 pays 9%. That's because level 5 is street and all the other levels between are distributor comp where there is 25-50 basis points between levels.

You're probably better off asking a few IMOs what you get for X carrier/product. Have them email you the grid. Then you'll get a feel for what your comp should be.

Assignment has nothing to do with this.

For assignment concerns, just make sure you're getting paid directly from the carrier, not the FMO

 

[rousemark]

New here - Help explain this.

FMO Im looking at has me at a level 4.
Are there 9 commission levels?
Aetna contract shows payout at level 8.

Does this mean the FMO is assigning?

FMO is taking half the commission.

I thought FMOs didnt assign?
What is street level?

Please clarify.

Read the other threads where you asked this same question bout Ritter.

 

[SouthernAdvisor]

Some carriers have more, some less. The level number doesnt correspond directly with the comp.

For instance, a level 5 from an annuity carrier may pay 7% and level 10 pays 9%. That's because level 5 is street and all the other levels between are distributor comp where there is 25-50 basis points between levels.

You're probably better off asking a few IMOs what you get for X carrier/product. Have them email you the grid. Then you'll get a feel for what your comp should be.

Assignment has nothing to do with this.

For assignment concerns, just make sure you're getting paid directly from the carrier, not the FMO

Ok, so does the FMO take a % of that commission out before Im paid? How do I know? How is a FMO paid? TY

 

[Life Hawk]

Read the other threads where you asked this same question bout Ritter.

Maybe he needs to stop asking and take his meds.

 

[Life Hawk]

Ok, so does the FMO take a % of that commission out before Im paid? How do I know? How is a FMO paid? TY

That is a secret. And in some cases a very, very closely guarded secret. Wouldn't want you to know how much all the training is costing you.

Ok... enough being snide. You need to ask your FMO this question and see how they answer it. Then come back on there and do some follow-up. If they seem to guarded about it... consider that a red flag.

However; on the other hand, if your FMO is good on leads, trains well, and you are new... then balance the cost of doing business with what you are learning. You can always switch later. (That said it may take a year to move contracts so don't suck up every contract with them. Start out light. Maybe one or two to get your feet wet and see it this the profession for you.)

Keep asking questions... but also do the research. Ask for a list of agents with the FMO that you can talk to. New as well as longer term agents. Buy them a cup of coffee and chat. Ask your questions.

 

[Newby]

Ok, so does the FMO take a % of that commission out before Im paid? How do I know? How is a FMO paid? TY

If you are paid by the insurance company then they pay you your portion and pay the upline(s) their portion. You never see their portion. The less they can get you to accept as your portion the more they get on their portion.

That's why you ALWAYS interview several FMOs before you sign up with anyone. Get the starting commission levels IN WRITING from each of them. Let them know you are checking around and are not gullible enough to sign up with one just because they sent you an email or telemarketer you. And NEVER accept the words "street level" as an answer when asking about commissions. That is a stall response for suckers. You need to see numbers on a page.

 

[Tahoe Ray]

Ok, so does the FMO take a % of that commission out before Im paid? How do I know? How is a FMO paid? TY

There is a total comp that the product pays.

Let's say that an annuity pays 9%. (I'm going to use annuities as an example because thats what I know best but all other products work similarly).

The agent comp may have several levels. 4%, 5%, 6%, 7%. The top agent level is normally called "street" but that can be an amorphous term.

So, the FMO/IMO is going to make the difference between the commission you're paid and what the carrier ultimately pays.

You're both paid directly from the carrier unless the comp is assigned (then the IMO pays you).

If you write a lot of business, you can get higher levels. The best way to determine your comp is to reach out to a bunch of IMOs and see what they'll offer. That will give you a good baseline on what you can get. Try not to worry what the IMO makes since that's margin (which exists in every level of commerce) but worry more about what you make and that it is fair relative to the IMO's competitors and your personal production.

Good luck.