FMOs Are Greedy

[wehotex]

I just received an e-mail that showed that the FMO received $200 for a contract that they had absolutely NOTHING to do with. I guess that I should consider myself lucky that they let me keep 72% of it and they give me a Christmas card every year.

 

[sshafran]

I just received an e-mail that showed that the FMO received $200 for a contract that they had absolutely NOTHING to do with. I guess that I should consider myself lucky that they let me keep 72% of it and they give me a Christmas card every year.

I attribute all of my success to my FMO's. They provide unparalleled support...

Or not.

 

[wehotex]

I attribute all of my success to my FMO's. They provide unparalleled support...

Or not.

I don't need their help even if they bothered to offer it, but I sure would like to KEEP that override for myself. Shoot, give ME that override and I'd work 24/7, 365 days a year

 

[Midlevel]

Just out of curiosity, is that an MA plan or something different. I always wondered what the FMO makes off of MA plans. I sell a bunch of them and I'm wondering how much I'm padding their pockets.

 

[Josh]

Just out of curiosity, is that an MA plan or something different. I always wondered what the FMO makes off of MA plans. I sell a bunch of them and I'm wondering how much I'm padding their pockets.

I don't have them around at the moment, but those are all set by CMS.

 

[benefits365]

Here's the problem: First, one agent can't get overrides. CMS dictates that. You have to have your own downline to qualify. At least, Humana said that. An agent with a 2000 MA book of business can't get a GA override, but a new organization with four agents can. Second, if your FMO doesn't give you anything of note or their override, call them out on it! Or switch! I'm sure there are some organizations out there that would show a level of appreciation for your service.

FMOs are greedy? Meh...
YOUR FMO is greedy? Probably, based on what you're saying...

 

[wehotex]

Here's the problem: First, one agent can't get overrides. CMS dictates that. You have to have your own downline to qualify. At least, Humana said that. An agent with a 2000 MA book of business can't get a GA override, but a new organization with four agents can. Second, if your FMO doesn't give you anything of note or their override, call them out on it! Or switch! I'm sure there are some organizations out there that would show a level of appreciation for your service.

FMOs are greedy? Meh...
YOUR FMO is greedy? Probably, based on what you're saying...

I'm not questioning the "override" part. Bottom line is that the insurance company obviously thought that this piece of business was worth at least $458 ($258 + $200 override). Many years ago, one of our VP-Sales at a company that I worked for said that it cost $700 to obtain "new business" (in 1990s). Back when CA HMOs were paying $450 and up, this sounded about right to me. I don't require any training, although I could always learn more. Most FMOs are not teaching me anything new, although one of them is always sending informative e-mails, which I appreciate. It's not like the FMO is handing out marketing $$ for mailers, birthday cards, postage, gasoline for service calls, etc, all of which I bear 100% of the costs for. They're basically getting paid for letting me use their copier, fax, computer, disburse my check. I wouldn't mind it if at least they could cut me an "allowance" check each month to cover some of those costs. It's seems to me to be a system to make the FMOs extremely rich while the rest of us toil daily to support their butts.

 

[Midlevel]

All FMO's I know are extremely rich. You have got that right.

 

[DS4]

and they give me a Christmas card every year.

I have that same FMO. Worthless!

 

[SeniorMarketDesign]

I'm not questioning the "override" part...Most FMOs are not teaching me anything new, although one of them is always sending informative e-mails, which I appreciate. It's not like the FMO is handing out marketing $$ for mailers, birthday cards, postage, gasoline for service calls, etc, all of which I bear 100% of the costs for.

I think this discussion is very important for EVERY independent agent to grasp. There are obviously many 'FMO's operating today as 'Contracting Farms' that do very little to support and give back to the agents.

As an FMO we can't always offer higher than street levels just as benefits365 mentioned. That's why we have an ongoing promotion for our Medicare Supplement agents, 12 approved apps = Exclusive 1000 piece lead mail-drop (or cash reimbursement for agents personal lead expense if you handle your leads on your own). No reduced commission levels, the same level you would be offered from you current FMO. Just one of the ways we give back to agents that are doing the work in the field.

This is why, here at our office, we're baffled multiple times a day when speaking with agents as to why they continue to place contracts with FMO's that do little to nothing other than offer a 'competitive contract'. There absolutely are FMO's that are good to deal with, give great agent support, and give back to their agents on a regular basis, they just seem to be few and far between today.

Give us a call. We offer open releases with the best possible contracting levels. What do you have to lose?