Becoming a Sub Agent: Good or Bad?

[Crabcake Johnny]

The biggest issue with being under a GA instead of a MGA/FMO/IMO/etc...is getting a higher commission percentage if your production warrants it.

Let's use the most basic of math:
FMO - 100%
GA - 90%
Agent - 80%

The GA strokes 10 points per deal. That's great until you start putting out a lot of production. Will your GA take you to 90%? No, because they lose their override.

If you're under the FMO at 80% you can go to 90% and they're still stroking 10 points.

 

[Josh]

John, I don't think you get what's going on. Medicare is a whole different ballgame.

 

[Frank Stastny]

John, I don't think you get what's going on. Medicare is a whole different ballgame.

Ya got that right.

Anyone who is taking 10 points on Med Supps is giving the agent a royal screwing.

 

[healther]

If you are talking MA or PDP's and he is not assigning his commissions then you are paid the same whether he is under a GA or FMO. The cut in commissions is absorbed by the FMO.