Has anyone ever started their own insurance business?

Dec 4, 2018

  1. Michael Flori

    Michael Flori New Member

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    Rhode Island
    Hey guys! So I currently work for PHP Agency, an FMO that represents 23 carriers. I love it but it is a network marketing structured company so they teach you mostly recruiting and really not a whole lot of sales. What initially attracted me to the company was the fact that you could build a business and earn a 7 figure income. That's great but I really would love to just build my own FMO that focuses on sales not recruiting. I'd like to hire life agents that I train to sell insurance, no mlm stuff.

    I believe in the network marketing business and I have seen it work for many people but it doesn't benefit the personal producer who just wants to sell life insurance. If you come into a company like PHP and don't recruit your stuck at a 30% contract. However, most FMO insurance companies that aren't network marketing structured only pay around 50% commissions (at least thats what I've found).

    My question is: Has anyone on here ever started an insurance business that you've been able to generate a 7 figure income from? I know that it's possible to open my own practice and make 6 figures but I'm talking about opening a business where a new agent can come in, write business, and earn a hefty contract. How would one even start this business?

    All feedback is welcome!
  2. FinalExpenseDojo.com

    FinalExpenseDojo.com Guru

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    Hi Michael,

    This is a great question. I know it can be confusing so I will try my best to answer this without getting into all the fine details.

    To start your own IMO / FMO, you need 3 main things.

    1. High IMO carrier contracts
    Business is all about margins. The higher contracts you can negotiate, the higher the overrides you can make. More money equals giving your agents a better opportunity.

    If you go direct to the carriers for contracts, you won't be able to get as high as if you were to go through one of the large wholesalers.

    The last thing to point out is the highest levels out there require proof of production. Now, if you know where to go, you can still get very large contracts without any production, but just remember it's all about your ability to negotiate.

    2. A very good plan to help your agents get in front of potential insurance buyers.
    According to FFLA 2015, 92% of agents said they needed better marketing. If you can develop a very strong marketing program for all your agents, you will be a very wealthy man.

    3. Something that makes your company different
    Everyone says that they are "revolutionary" but the truth is that most IMO's are carbon copies of others. The best IMO's are ones who target already licensed agents. If agents who have been around the block are the main people joining your IMO, you know you have something special.

    For this one, I would read the book "Blue Ocean". Here's a short overview video:

  3. Cornelius

    Cornelius Guru

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    You mention you don't want to be some much about recruiting and more about sales. Then say you want to hire agents.

    If you have not give your contract another read and see if there is a different path for personal producers. Other companies may offer the personal producer option.

    As an agent you sell policies. As a builder you build by selling hope and opportunity to the masses. The policies will come.