FMO's and Territories ? ? ?

[Gulfman]

Hi Friends,

Looking at different FMO's...and some of them are claiming that once you join them, you are locked into (or out of) a Territory (for marketing).

Is this a common practice...?

Thanks for your constructive input...





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[AlTheGud1sRtakn]

Depends on who you're going with but yes this is fairly common. Most (I say this from my personal experience, others may have had the opposite experience) seem to have a procedure in place for out-of-territory licensing and business that you write.

Basically when I got licensed in another state I had to get that territory manager and my territory manager to say that they were OK with me stealing a tiny sliver of their business. Also my managers had to be licensed in that state as they get $ when I get $. It really hasn't been a hassle for me personally.

 

[Newby]

Hi Friends, Looking at different FMO's...and some of them are claiming that once you join them, you are locked into (or out of) a Territory (for marketing). Is this a common practice...? Thanks for your constructive input... .

Maybe their own marketing. But you can market anywhere you want to with any FMO.

Get your full commission levels. Then you can take advantage of of anything you like either within the FMO or outside of it too.

 

[Gulfman]

Thanks Buds,

I have contacted an FMO that uses a "direct mail- seminar system" that they claim is Proprietary. If you contract with them, you are bound to them. IF you leave them, you are NOT ALLOWED to use their system of Direct Mail or Seminars for 2 yrs...with any other FMO or Company.

• (IOW, if you sign up with them, their mail system and seminar system are exclusive to producers in a certain area. And "you are bound for 2 yrs" and the territory they set for you. AND if you don't make the numbers in that territory, (and someone else comes up and passes you), you are not allowed to use their Mail Marketing system to Market in that area (or any area that is covered by "a producer" in their system).

IOW, they set territories for producers and YOU are not allowed to market by seminars for 2 yrs....?

Ex. If you use their marketing system, and for some reason want to move or market in another area, and that area is taken by "a producer," you cannot use their mail marketing or seminar system.​

If you violate their agreement, they will Send their attorney's after you.

Anyone hear of this before?






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[AlTheGud1sRtakn]

Thanks Buds,

I have contacted an FMO that uses a direct mail- seminar system that they claim is proprietary information and that if you contract with them, you are bound to their mail system. If you violate their agreement, they will Send their attorney's after you.

Anyone hear of this before?

Sounds like a pretty controlling firm. I hope they give a lot to make up for the drawbacks.

 

[pcbinsurance]

Proprietary my patootie. They sound controlling.

Locking in a territory is a common phrase that should mean "locking you into our IMO".

 

[Gulfman]

Thanks Buds,

I have contacted an FMO that uses a "direct mail- seminar system" that they claim is Proprietary. If you contract with them, you are bound to them. IF you leave them, you are NOT ALLOWED to use their system of Direct Mail or Seminars for 2 yrs...with any other FMO or Company.

• (IOW, if you sign up with them, their mail system and seminar system are exclusive to producers in a certain area. And "you are bound for 2 yrs" and the territory they set for you. AND if you don't make the numbers in that territory, (and someone else comes up and passes you), you are not allowed to use their Mail Marketing system to Market in that area (or any area that is covered by "a producer" in their system).

IOW, they set territories for producers and YOU are not allowed to market by seminars for 2 yrs....?

Ex. If you use their marketing system, and for some reason want to move or market in another area, and that area is taken by "a producer," you cannot use their mail marketing or seminar system.​

If you violate their agreement, they will Send their attorney's after you.

Anyone hear of this before?






.

 

[Newby]

Thanks Buds,

I have contacted an FMO that uses a "direct mail- seminar system" that they claim is Proprietary. If you contract with them, you are bound to them. IF you leave them, you are NOT ALLOWED to use their system of Direct Mail or Seminars for 2 yrs...with any other FMO or Company.

• (IOW, if you sign up with them, their mail system and seminar system are exclusive to producers in a certain area. And "you are bound for 2 yrs" and the territory they set for you. AND if you don't make the numbers in that territory, (and someone else comes up and passes you), you are not allowed to use their Mail Marketing system to Market in that area (or any area that is covered by "a producer" in their system).

IOW, they set territories for producers and YOU are not allowed to market by seminars for 2 yrs....?

Ex. If you use their marketing system, and for some reason want to move or market in another area, and that area is taken by "a producer," you cannot use their mail marketing or seminar system.​

If you violate their agreement, they will Send their attorney's after you.

Anyone hear of this before?






.

If they have a way to market and sell annuities that works well for you and you are only learning how to do it because of them, just sell for them. Make sure you are happy with your commission level before you sign on and give it 100%

It it doesn't work for you, you won't want to use it elsewhere anyway.

The only way there is a problem is if you don't like their company choices or commission levels once you are in. Do that research first. Then jump in, learn and go gangbusters.

 

[DHK]

Sounds just like working for a bank. They give you a reduced payout (b/d grid), but they provide all the in-house leads. They take the same position regarding any referrals you receive from your in-house leads too. A 2 year non-solicitation agreement for existing clients. Violate that, and yes, they'll sue you.


Sounds like your FMO is not an "independent" agency with that kind of arrangement. You will be captive to them and their rules.

The question is: is it worth it? What do you get in exchange for those terms? If it's good, then go for it! If not, don't even start.

 

[Gulfman]

Sounds just like working for a bank. They give you a reduced payout (b/d grid), but they provide all the in-house leads. They take the same position regarding any referrals you receive from your in-house leads too. A 2 year non-solicitation agreement for existing clients. Violate that, and yes, they'll sue you.


Sounds like your FMO is not an "independent" agency with that kind of arrangement. You will be captive to them and their rules.

The question is: is it worth it? What do you get in exchange for those terms? If it's good, then go for it! If not, don't even start.

Hi DHK,

No...your existing client base or ANYONE other source of business you capture is Excluded. ONLY the Mail - Seminar Business is exclusive.

Also, I PAY FOR THE MARKETING....not them. I pay for Mailers, Diners, Assistants, etc. They do not provide the leads.

The comm. is standard 7%. Fixed Index Annuities only.

They help with the following:

• *Help setup and do the mailings
• *Help select Restaurants
• *Help place the annuity
• *Help with Sales calls
• *Do Weekly Sales Meetings
• *Teach you how to Sell Annuities using the Diner Seminar System

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