Commission

[honestagent]

What is an fmo?

Al (who is not afriad to look as dumb as he is)

Al, There is nothing dumb about asking something you don't know.

An FMO stands for: Field Marketing Organization, which is the institution we as independent agents must usually go through in order to be appointed to represent Large brand name insurance carriers. Most insurance companies do not allow us independents to contract directly through them in some canal of a brokerage route. So, we go through an FMO to get the broker contracts, remain 1099, and be independent. I hope I answered your question.

 

[Guest]

What is an fmo?

Al (who is not afriad to look as dumb as he is)

Al, There is nothing dumb about asking something you don't know.

An FMO stands for: Field Marketing Organization, which is the institution we as independent agents must usually go through in order to be appointed to represent

OK, I see. This is why I go through Time Ins. (as opposed to Alden) to write Assurant?

However, with both Blues, Aetna, and Celtic I go direct, TTBOMK.

Is an FMO what Benefit Mall is?

How is an FMO different from a GA?

Thanks...



Al (getting less dumb the more he reads this board)

 

[maryjd123]

I certainly understand what you guys are talking about when you are saying taking a cut in commission when going with an IMO. -- but there is also one thing that you should consider -- if you have a company that is going to give you leads -- and pay you weekly upon submission of your business and not hassle you about where you are submitting your business -- i think that is a good thing --
i know where you are coming from with taking a cut in commission when going with an imo -- but sometimes when the difference of being in front of a customer outways sitting on the phone going thru the phone book cold calling ( i saw a couple of other people doing that here ) -- and the difference might be 20 dollars -- i think that its well worth it..
now when the difference is 100's of dollars thats where it gets concerning -
whereas i was with the assurance group signed up with coventry - i was only getting 150 for a pffs sale -- since then i have switched to senior market sales where the street level contract is 330 dollars -- yes that makes a huge difference- i did have an email from someone saying that over time the difference was about 400 dollars -- over a period of 10 years -- but i do have to say again --
depending on how much you are working and out selling
the way i do it is
with the leads --- go to the appointment and instead of just selling what MSIS has to offer me -- i sell everything
an advantage plan or medsup
final expense plan
the continental care plan

so you have to be able to percieve the difference here
would you have made the money and went on the appointment without the freshly called lead ( the night before ) ?
WITHOUT THE IMO?
that is the question of the hour..

i personally like leads -- from leads come referrals and all sorts of new business

 

[sman]

i did have an email from someone saying that over time the difference was about 400 dollars -- over a period of 10 years

Mary,

The difference was $780 not $400. May not sound like much, but when it's 200-300 cases a year, that adds up to a lot of money ($156,000 to $234,000).

so you have to be able to percieve the difference here
would you have made the money and went on the appointment without the freshly called lead ( the night before ) ?
WITHOUT THE IMO?
that is the question of the hour..

Yes.

 

[honestagent]

okay, everybody slow down. i'm really confused now! maybe it's b/c it's so late and i'm exhausted; or i'm a total *** and missed something. or maybe both.

okay, the puncher here in difference of dollars over a 10 year period???

are you both betting on renewals or are you talking street level here advanced?

no contract goes 10 years, unless i missed the memo on that, which is possible. further, you all can't think that this stuff is going to stick with the constant changes and re-churning of bz done by hungry and new and hungry agents... think about it!!!

sman, what the hey are you making a case and with which company/ies? who is your fmo and or imo?

mary j., i will pm u. thanks.

i need sleep and 2 be paid!

 

[honestagent]

What is an fmo?

Al (who is not afriad to look as dumb as he is)

Al, There is nothing dumb about asking something you don't know.

An FMO stands for: Field Marketing Organization, which is the institution we as independent agents must usually go through in order to be appointed to represent

OK, I see. This is why I go through Time Ins. (as opposed to Alden) to write Assurant?

However, with both Blues, Aetna, and Celtic I go direct, TTBOMK.

Is an FMO what Benefit Mall is?

How is an FMO different from a GA?

Thanks...



Al (getting less dumb the more he reads this board)

Al, (you are not dumb as you read this board)... we all are here to learn. if we don't learn, it's when we're dead. hell, i just asked mary j. in a pm what imo stands for... lol ____ marketing organization. i think their above an fmo. damn these hierachys.... that take $$$ from us!!!! :evil:



so al, i cannot answer your first question on fmo being the same as benefit mail b/c i have no idea what benefit mail is.

but i can answer the ga one. ga and mga then you have sga then fmo. each insurance company has its own restrictions what contract an agent gets and so does each fmo. sucks to be us in this case. anyway, i.e.: wellcare's ga contract stipulates that an agent has to have 10 agents under him/her and (i think but not sure) produce so much to get that ga commission level; in contrast, i know pacificare does not require anything. isn't that great. so i could (technically speaking) make 200 dollars or more per case on the sga or mga level contract but NO OF COURSE NOT... my bloody fmo has to take that much too! i just learned that one on friday! how do you like those beans.... and my contact had the audacity to rebut with the support i get??? :roll:

not sure what he meant there since i call my own, see my own, handle all the damn service work (photo copying, mailings, supply orders, calling pharmacists, providers, handling distrubed seniors with transitions etc. etc.) and i'm barking at commissions to be paid. so support hu.

u tell me, is it right for them to take so much from us? i thought we were independent? if i could contract directly through these insurance companies, i would. but that's not the fair set up, unfortunately.

now i know why most people cringe when they here: insurance or insurance agent. that's so sad. it's paramount in life; yet with all that goes on, can you blame most. i'm starting to cringe now....

 

[sman]

are you both betting on renewals or are you talking street level here advanced?

no contract goes 10 years, unless i missed the memo on that, which is possible. further, you all can't think that this stuff is going to stick with the constant changes and re-churning of bz done by hungry and new and hungry agents... think about it!!!

I am speaking specifically of Med Supps (I get a level commission for 6 years and then it's reduced for the next 4 years - totalling 10 years). And if you've worked that market any length of time, you've seen once a senior gets a Med Supp, they rarely change unless it becomes cost prohibitive. I've seen people with the same Med Supp for 15+ years. And once they're unhealthy, they don't want to drop it because they can't get another one.

Here in Georgia, I write with United World. They have the cheapest Med Supp (at least Plan F) in the state. The big boys (AARP & BCBS) don't even come close to their rates. RNA is about the closest and they're really only close on 65 year old females. So yes, I fully expect them to stay on the books for at least 10 years (unless the person dies). But even if they don't, I'm still making more after two years than I would with MSIS and I get paid directly from the company and not from an agency who may or may not decide to pay me. Also, I'm in the house, which means I'll probably write the next plan, whether it's a Med Supp or a Medicare Advantage plan.

 

[maryjd123]

Sman

You have to understand that the commission structure is different in Georgia. The standard commission rate given to agents across the country is:

22% years 1-6
9% years 7-10

That's what you would get if you contracted through my existing IMO for Wyoming. So that "free" lead is costing you $20 the first year and $120 per year for years 2-6 and another $40 in years 7-10. That's a total of $780. That's an expensive lead.

i am assuming that is with united world -- i was talking about UTC -- where the customer rates start at 79 a month -- and my commission is 20% 1st year 12 month advanced, year 2-6 is 10% and 7-10 is 1.5% -- i can see your point that over the 10 year period there would be a loss -- but keeping a client on the books these days with the same company - in this day and age -- as the medadvantage plans are overpowering medicare --i don't see the person staying for 10 years.. -- its not the way anymore

Here in Georgia the commission structure is less. I can guarantee you that Jonathan can't give me 20% commission in Georgia. Standard rates here are 15%. I get a little more because of the volume of business I write.

My IMO wrote almost 30,000 applications with United World last year for a total premium of over $42,000,000. There probably aren't many IMO's that can say that.

20% 12 months advanced -- 1st year
10% years 2 thru 7
5% years 7 thru 10
with Medicare Supplement Insurance Services
United World contract
free leads -- no cost upfront
also they have a contest going on
for new agents that start now they only have to input 50 applications by may to qualify to go on a trip to i think its clearwater florida
in june
3 days 4 nights all expenses paid

Secondly, over the course of 10 years, my current commissions total accumulation is 128%, while it would be 90% with them. That's a little over $400 per case spread out over that 10 year period. I know that doesn't sound like much, but if you write 200-300 cases per year, we're talking about some serious money. I appreciate your efforts, but I'm just not sure I'm willing to assign commissions and get less overall so I can get a "free" lead.

Scott

i certainly understand one not wanting to assign commissions over - but my feeling is -- if you have a good account rep - that you are on a one on one basis with and have a good repore -- and you know the company - then that should not be a problem -- im not saying drop all of your direct companies -- certainly i havent -- im just saying -- dont pass up an opportunity just because you are afraid of not getting paid -- what i did was sign up with MSIS for the continental care -- he also introduced me to UTC -- if i wouldnt of done that i would of just stuck with mutual of omaha medsups -- i didnt know UTC existed -- now i have a better product for my clients -- im not captive
ecery lead i go on that they provide i do sell a continental care product
but that does not stop me from selling the medadvantage plan or medsup along with a final expense or an annuity

so again it is all up to the individual agent on what they want to do
you can be set up direct with all of the carriers and get your own leads
or you can do both

to each his own
everyone has their own way of doing things
its whatever works for you
[/quote]

 

[midwestbroker]

I agree with Mary as in Medicare is becoming year by year.

With Medicare Advantage plans becoming more mainstream, people are going to have to review their plans every November.

Next year, according to the rumor mill, Medicare will be 75/25 for part B, so the extra 5% that the supps will have to pick up I am sure will be met with a price increase. That will further open the doors for MA plans.

That and more and more MA plans are coming to the market. Last year in KC, it was Humana, Coventry, and Sterling. This year we now have Pyramid. Looks like next year we will have United Healthcare.

Plus, don't forget about the SNP (special need plans) out there for your diabetics, COPD, and ESRD folks.

Then you also have MSA (Medicare savings accounts) starting to pop up. I have not seen any of those here, but I know that they are out there.

Seniors need more and more help with education. If you can help them, they might not keep the same product, but they will call you.

 

[Guest]

i did have an email from someone saying that over time the difference was about 400 dollars -- over a period of 10 years

Mary,

The difference was $780 not $400. May not sound like much, but when it's 200-300 cases a year, that adds up to a lot of money ($156,000 to $234,000).

so you have to be able to percieve the difference here
would you have made the money and went on the appointment without the freshly called lead ( the night before ) ?
WITHOUT THE IMO?
that is the question of the hour..

Yes.

No way would I take that cut sman.

The IMO you are referring to maryjd is offering me a 17% first year and 8.5% years 2-6 and 1% 7-11 for one carrier. With that same carrier I am now getting 24% years 2-6 and 11% 7+. Leads are valuable to an extent but they still own those leads and you are paying big bucks for them. Remember, they are in it to make a profit so where are they making their profit? From your commission of course. If I wrote 100 cases with that carrier at my current 24% I would get,, over 5 years, $144,000 on 1200AP. With the IMO I would get $61200. That's a pay cut of $82,800! Those are expensive leads.