So not true. I have a pretty large FMO and dont make more than a few points, do your homework sonny.
AARP Secure Horizons
- Thread starter GreenSky
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So not true. I have a pretty large FMO and dont make more than a few points, do your homework sonny.
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- #82
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Elder -
In the spirit of full disclosure, let's take Secure Horizons. What is the gross commission you receive for a PFFS in 2007 and of that how much goes to the agent?
In other words, how much do you make and how much does the agent make. Let's assume there are no contracts (SGA, MGA, GA) between you.
Rick
without a pdp, 450, 410 to the agent, plus a free lead on every sale. lead cost around 25, so 15 dollars gross w/o admin.
on MA's they are all about the same except TO, around $35 override.
On supps, Admiral-23%/20 to agent. World-17%-15% to agent. Not much there.
Life 120% to me/agents 90 to 110%. Depends on years in the business.
It always surprises me that posters complain about the FMO's and the captives. Captive managers are mostly employees, and dont pay any of their own costs, and just lie to rookies to get the contracts, to meet the Home Office quotas. Some are self employed just like agents and actually own the office and pay their own costs, they can make more money, but usually dont because of crooked agents that use the office like a FMO and steal the leads. They roll their business after paid an advance, and the agency owner is responsible for the chargebacks. It is usually the agent who wins in this case, unless the owner is smart and sues the agents, which is very easy to win. And of course all of the agents want to own their own agency, but 99.9% dont have the discipline or balls to accomplish it.
A FMO does not make enough override to offer any additional benefits, but still has the chargeback problems, especially with caliber of the agents. The only way a FMO can win is to contract as many agents as possible.
On supps, Admiral-23%/20 to agent. World-17%-15% to agent. Not much there.
Life 120% to me/agents 90 to 110%. Depends on years in the business.
It always surprises me that posters complain about the FMO's and the captives. Captive managers are mostly employees, and dont pay any of their own costs, and just lie to rookies to get the contracts, to meet the Home Office quotas. Some are self employed just like agents and actually own the office and pay their own costs, they can make more money, but usually dont because of crooked agents that use the office like a FMO and steal the leads. They roll their business after paid an advance, and the agency owner is responsible for the chargebacks. It is usually the agent who wins in this case, unless the owner is smart and sues the agents, which is very easy to win. And of course all of the agents want to own their own agency, but 99.9% dont have the discipline or balls to accomplish it.
A FMO does not make enough override to offer any additional benefits, but still has the chargeback problems, especially with caliber of the agents. The only way a FMO can win is to contract as many agents as possible.
- 11,280
Elder sounds like one of these managers or IMO's that feeds people full of crap.
- 11,280
I would bet that he is here to recruit. I bet I know who you are too.
- 11,280
Don't call me sonny either. I have a name, USE IT if you want to talk to me.
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- #88
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I'm looking at a GA contract for 2008. The payable to the GA is $450 for PFFS for electronic enrollment.
There are MGA, SGA and then the FMO above this contract. What this tells me is that for 2008, the FMO makes AT LEAST $50 over the GA and AT LEAST $100 over the agent.
What does the FMO do to earn that $100 (or more) dollars?
Rick
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- #89
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I was going to let the above statement just "ride", but I really can't. Here's the commission schedule for Today's Options and I'm using the MA only plan:
FMO $425
IMO 400
MGA 375 (Regional)
MGA 350
GA 330
SGA 310
AGT 275 (Senior)
AFT 250
Now, please explain once again how your override as an FMO is only $35 more than what the agent makes?
Let's be fair however. Many people have a GA contract at $330. So you only make $95 override assuming that there are no others in the heirarchy (most lkely). If you have given out the agent contract, you make $150.
Let me ask 2 questions:
1) How is it you only make about $35 when the contracts state otherwise? To the less than trusting individual, one might believe you are "fibbing."
2) What do you do to earn your override on OUR business?
Rick
Most of my contracts are at MGA level, but I still pay agent level or better. It is very hard to get FMO contracts today, with the companies themselves becoming FMO's, and the large production requirements needed to get the highest comp. I didn't say I was huge, but I did say that I was a FMO, I guess that is a fib, and I apologize. The amounts I stated are correct or pretty darn close, w/o pulling out contracts. I used to get the better contracts, years ago, but with MA's invading the Medicare market, my agency just doesn't have that high of volume. I am sorry if I have offended anyone and especially SAI, I did not mean to mislead anyone. I am not trying to recruit, at my age I really don't want the stress.
