FMO Vs Paid Systems

[Charpress]

Do you have securities licensing, or do any of your colleagues consider that?

Yes, I do. However, I don't especially consider it vital to annuities sales. In a way, it might even be a drawback.

I can easily see someone making the complaint that as securities licensed, you are in a foggy, gray area if you also recommend a product that gets you a commission. Suitability versus best interests of client. It isn't just a thin line to walk, it's like break dancing on a tightrope.

 

[joredbud]

Sorry my friend and I apologize.

In my experience being here a long time, when a second or third time poster says what you did, they are about to make a sales pitch, i.e. you market seminar packages.

Anyway, yes I might be helpful here. My inclination is to go with what the FMO offers if they are really good at what they do. As an example of where that is not a good idea, I have in mind one particular FMO that puts together a very tight (let's even say rigid) seminar that requires a sales process that seems to pull in some money, but I think is too cookie-cutter and a bit offensive in the way the seminar itself is done.

Most FMOs, and this is my preference, make materials available for your use, have mailing houses that are proven, discount prices for FMO members, and have first-class case design teams ready to go after the first appointment.

As for buying a seminar system, I would need to know more about what is provided, how much territory protection (if any) you get, and, most of all, what it costs. Doing seminars is expensive enough without adding a materials package.

I hope this helps a bit so far.

Thank you for the insight my friend.

I've watched a few threads turn out to be a pitch as well. Not here tho.

I'm struggling with signing with one FMO over another or just doing my own deal. Some FMO presentations are very straightforward and simple in today's technological perspective. No ppt, black and white handouts, no branding.

Others are over the top with over 70 slides in the deck. Full color glossy handouts, books, calculated retirement income summaries, full blown planning aspects... And it goes on.

Do I go with one for a few months and weigh the results? Or will I get hit on commissions if I jump to another FMO.

 

[Charpress]

The whole issue of FMOs is extremely hard to sort out.

I started with one FMO, was satisfied, went on trips, and the marketer who advised me on products was brilliant. He knew off the top of his head every nuance of every policy of every company the FMO represented. Then things went sour when a guy who was a competitor got above me in the food chain and had access to my production.

I then searched around for a new FMO and considered 3, two of which were recommended by friends. I actually went with a fairly new FMO which has now become huge. Their support and the things they provide are awesome -even down to paying for overnight mailings of applications. However, I am somewhat disappointed that they now make it fairly clear that they are really only interested in their $10-20 million producers. That kind of makes me feel like the red-headed step child -and I'm not alone in that. The first two FMOs that I liked are still always an option for me.

Anyway... you need to take more time and make sure you are making the right choice. It is a royal pain to move to another FMO because pretty much all of them will want you to contract with all the major players when you come on board so that you will have that 6 mo. gap before you get released from the company contracts. Yes, yes, I know some will step in at the point and talk about the FMOs that don't lock you in and will release you. For reasons irrelevant here and from experience, I doubt that.

There are FMOs that are company owned, there are FMOs with shabby reputations, there are FMOs that are too small to really handle more than a few of the major companies, and I suppose there are even FMOs that are maybe too big -which is where I find myself.

Just start by getting recommendations from producers you know that have stuck with the same FMO for more than 3 years (that is usually the breaking point) and are still happy.

You can also contract with more than one FMO. I haven't found that it works too well. If you want to take advantage of production perks and if you want to be well versed in the FMOs quirks and procedures, it is best to stick with one FMO. I do have other FMOs I use for niche sorts of things, like market linked CDs.

I didn't have a great deal of production when I was FMO hunting, but I did have enough to qualify for some free "come and meet us and go to a free seminar" and had the expenses paid by the FMOs. That is a great way to feel out an FMO without being out of pocket. When you sign up for these "free" things you will get a call asking for proof of how much you produced last year.

If it were me looking right now, I think I would say that I think the FMO sounds really great, comes highly recommended, and that I would be willing to pay some of the travel expenses just to meet them.

 

[SanDiego619]

The whole issue of FMOs is extremely hard to sort out.

I started with one FMO, was satisfied, went on trips, and the marketer who advised me on products was brilliant. He knew off the top of his head every nuance of every policy of every company the FMO represented. Then things went sour when a guy who was a competitor got above me in the food chain and had access to my production.

I then searched around for a new FMO and considered 3, two of which were recommended by friends. I actually went with a fairly new FMO which has now become huge. Their support and the things they provide are awesome -even down to paying for overnight mailings of applications. However, I am somewhat disappointed that they now make it fairly clear that they are really only interested in their $10-20 million producers. That kind of makes me feel like the red-headed step child -and I'm not alone in that. The first two FMOs that I liked are still always an option for me.

Anyway... you need to take more time and make sure you are making the right choice. It is a royal pain to move to another FMO because pretty much all of them will want you to contract with all the major players when you come on board so that you will have that 6 mo. gap before you get released from the company contracts. Yes, yes, I know some will step in at the point and talk about the FMOs that don't lock you in and will release you. For reasons irrelevant here and from experience, I doubt that.

There are FMOs that are company owned, there are FMOs with shabby reputations, there are FMOs that are too small to really handle more than a few of the major companies, and I suppose there are even FMOs that are maybe too big -which is where I find myself.

Just start by getting recommendations from producers you know that have stuck with the same FMO for more than 3 years (that is usually the breaking point) and are still happy.

You can also contract with more than one FMO. I haven't found that it works too well. If you want to take advantage of production perks and if you want to be well versed in the FMOs quirks and procedures, it is best to stick with one FMO. I do have other FMOs I use for niche sorts of things, like market linked CDs.

I didn't have a great deal of production when I was FMO hunting, but I did have enough to qualify for some free "come and meet us and go to a free seminar" and had the expenses paid by the FMOs. That is a great way to feel out an FMO without being out of pocket. When you sign up for these "free" things you will get a call asking for proof of how much you produced last year.

If it were me looking right now, I think I would say that I think the FMO sounds really great, comes highly recommended, and that I would be willing to pay some of the travel expenses just to meet them.

Just based off of that I would assume AE?

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Thank you for the insight my friend.

I've watched a few threads turn out to be a pitch as well. Not here tho.

I'm struggling with signing with one FMO over another or just doing my own deal. Some FMO presentations are very straightforward and simple in today's technological perspective. No ppt, black and white handouts, no branding.

Others are over the top with over 70 slides in the deck. Full color glossy handouts, books, calculated retirement income summaries, full blown planning aspects... And it goes on.

Do I go with one for a few months and weigh the results? Or will I get hit on commissions if I jump to another FMO.

Just to get this out of the way if you haven't seen previous posts of mine. I work for an FMO that I have never disclosed which on these forums and never made a pitch because that is not my goal....

With that being said, I still don't have a pitch for mine but a question to base a recommendation on a direction for you. You may have mentioned it somewhere but I assume from some things you've said that you're not securities licensed?

 

[Josh Landis]

Thank you for the insight my friend.

I've watched a few threads turn out to be a pitch as well. Not here tho.

I'm struggling with signing with one FMO over another or just doing my own deal. Some FMO presentations are very straightforward and simple in today's technological perspective. No ppt, black and white handouts, no branding.

Others are over the top with over 70 slides in the deck. Full color glossy handouts, books, calculated retirement income summaries, full blown planning aspects... And it goes on.

Do I go with one for a few months and weigh the results? Or will I get hit on commissions if I jump to another FMO.

I work and have worked for multiple FMO's. In my opinion, your best bet is to use the FMO's seminar and marketing versus buying it yourself. I say this bc you are going to be writing any of the major annuity carriers your business is going through an FMO whether you know it or not so you may as well get credit for it in terms of some marketing help. What you need to know here is that a lot of it is fluff and a lot of these bigger FMO's only focus their attention on their $5-$20 million producers. Most FMO's have open release policies so if you demand a release to another FMO within the 6 month window then they should release you.

 

[stormtracker]

Can you PM me with an FMO recommendation for an agent interested in upgrading to annuity sales? I am tired of fooling with FE...

 

[KRobby]

Is anybody even moving monies to annuities in today's poor interest market?

2nd qtr 2014
total annuity sales $61.4 billion.
total fixed annuity sales $25.2 billion.

So to answer your question, yes, it appears at least one person has.

 

[heynow5]

Why can't you get contracts with multiple FMO's? Then stick with the one that adds the most value...

The low interest rate environment adds to the appeal of annuities since they can't get interest at the bank. The market volatility contributes to the appeal as well.

I've never had a problem being securities licensed and selling indexed annuities. The bd does have an approved list though.

 

[arand]

Yes, in record numbers. Where else can you get 7% compounded annually that can accumulate tax deferred to be taken out as lifetime guaranteed income down the road?

And riders to double available income in the event of long term care needs is sweet, sweet.

All the companies are falling over each other to make annuities a very attractive proposition.

Well said, the need is there it just needs to be explained properly. That annuity you described is a security salespersons dream or worst nightmare, it does exactly what their client would want from their securities guy but they can't guarantee it, we can. It's just a matter of finding those people who really need you!

 

[Freddie]

If you are not securities licensed or have RIA/IAR license and move securities money into an annuity - you could get in trouble for offering investment advice. Be careful.