CMS Proposal to End Multilevel FMO Marketing

[maovd]

Are you referring to the 2 emails a year we get which is copied and pasted from CMS website? I don’t think I would know if there was no longer an FMO between me and the companies. All my marketing dollars come directly from the carrier. I just make the FMO tens of thousands of dollars a year and shut my mouth.

You are with the wrong FMO! They should be at minimum be splitting the override with you.

 

[Todd King]

Todd that’s from cms . We’re talking top tier Fmo’s direct to carrier . Your 4-5 levels off and as far as I can recall you don’t sell much if any mapd . 2 nd level fmo makes $250 fyc and $150 on renewals . He also gets $200-$300 of marketing and “ soft money “

No, we're not 4-5 levels down and yes, we do quite a bit of MAPD. No matter that you got them from CMS, they are still wrong. Show me what you're talking about. Give me a link please.

 

[Lee Vena]

I have a different view on this issue. I believe CMS has a long-game strategy to eliminate as many layers of distribution as possible, and have some form of a direct, or perhaps 1 extra level for distribution.

 

[me112233]

These figures are wrong! First off, you can't say they make money with the marketing money that they dole out to the agents. It's insane that they think the FMO makes $700 per sale and even more insane to say they make $1300 on a true up.

I've never seen one penny of "marketing money" from an FMO. For that matter, I've not even heard of an FMO paying marketing money. Not for 1 sale, not for 10 sales, not for 10,000 sales. I am told that all I'm allowed to be paid, per CMS rules, is roughly $600 or $300 (first time or renewal) and that's it.

 

[me112233]

You are with the wrong FMO! They should be at minimum be splitting the override with you.

Please give me the names of these FMO's that are happily sharing override money with the writing agent. Such a thing has never ever been mentioned to me in my life. The only message I get from an FMO is that "CMS sets what the writing agent is allowed to be paid, and that's exactly what you will get."

 

[Todd King]

Please give me the names of these FMO's that are happily sharing override money with the writing agent. Such a thing has never ever been mentioned to me in my life. The only message I get from an FMO is that "CMS sets what the writing agent is allowed to be paid, and that's exactly what you will get."

Sounds like you're just with the wrong FMO. If you do the business, you can get the marketing money. If you only do MA here and there, then nah, you won't see the $$.

 

[maovd]

Please give me the names of these FMO's that are happily sharing override money with the writing agent. Such a thing has never ever been mentioned to me in my life. The only message I get from an FMO is that "CMS sets what the writing agent is allowed to be paid, and that's exactly what you will get."

I am one but in MI. If you're in another state I might be able to recommend someone else...

 

[me112233]

Sounds like you're just with the wrong FMO. If you do the business, you can get the marketing money. If you only do MA here and there, then nah, you won't see the $$.

Thanks for your reply. I suppose it's a chicken and egg thing. If a man isn't even aware "marketing money" is available if he jumps high enough . . . . . I know marketing money was a thing with the NY based life companies, where a very modest level of production would trigger a significant increase in effective first-year commission (retro to the first sale), yet never once have I heard it mentioned in the context of MA or PDP plans until this thread, and was selling this stuff from the beginning back in the fall of 2005.

 

[me112233]

I am one but in MI. If you're in another state I might be able to recommend someone else...

I'm in Kentucky.

 

[maovd]

Senior Market Sales should give you around $100/app for marketing.