How do FMOs/IMOs get paid based off your production if they pay you a 100% commission?

[Todd King]

Folks in the real (non-union) world have the ability to negotiate salary without ever knowing how much their boss makes, or the CEO or what the profit margin is on the product/service offered.

Either they believe the offer is fair and they take it or they don't. If they think they are being underpaid they seek out other, presumably better offers.

How can a car dealer take my upside down car as a trade-in, pay off my loan, and finance my new car?

Frankly, most buyers probably don't care how the dealer does that as long as they feel they are getting a good deal.

I see GREEN agents on here all the time looking for the "highest commission" when they have never sold a thing.

Todd has different level contracts. Does everyone get the highest payout or does he start someone out at a lower level . . . unless they have proof of production?

I agree with you if you're talking about anything but commissions. When a brand new agent see right off the bat they can make 100% of something, then without having any other knowledge, they begin to think...now wait, if I'm making 100% of something, that doesn't leave anything for anyone else. How can this be? They don't understand the percentages that we work with and that 100% really isn't "the whole thing".

If you understood this before you started selling, then good on you. Most people don't unless they have already been exposed to it in some form or fashion.

 

[DFW]

This kind of question always bugs me.

What do you CARE about how much the IMO/FMO makes?

You should be more concerned about what they pay YOU, what kind of support they offer (including training) and if commissions are paid to them vs you.

Nothing else matters.

If you want a bigger piece of the pie, earn it.

Maybe they are simply trying to figure out how much more pie they can earn. If you don't know the answer to the question there is no need to be a negative douchebag! Douchebag.

 

[Yagents]

The question should have been: " is 100% a good pay grade for an agent at my production level"

Knowing or caring what the boss makes is a different question that is either none of your business, or will make you pissed off they make that much off your production.

 

[Newby]

It is confusing to people new to the industry. It would appear that 100% is everything. Seems logical.

The truth is that life insurance companies normally design their products where the first TWO years of premiums go to sales and marketing costs. So 200% not 100% is the entire cookie.

Not all of it goes to commissions. There are other costs. But usually 150% to 160% will go to sales commissions. New agents generally start in the range of 100 to 120% for final expense type products.

So now you know.

 

[scagnt83]

This is not a job working for someone else. This is a business run by the agent. Big difference.

Agents dont work for IMOs. IMOs work for the agent.

And not just work for them, but they are an integral part of THE AGENTS business.

An agent would be a fool for not attempting to understand the economic model of THEIR BUSINESS. Especially when that model involves negotiating contract levels.

Agents shaming new agents for trying to understand their own business is illogical. None of you learned those things without asking someone else. This forum is a place to share info. Not a damn thing wrong with that question.

 

[somarco]

My first insurance "job" was with MONY. Monthly "draw" (they called it a financing agreement) against 55% commission (NY limit). I hated every day especially when my manager said I should bag groceries since I was not cut out for the business.

Ended up working the next 16 years for various carriers in a salaried rep position. I learned a lot about the industry on someone else's dime. Along the way I looked at direct sales positions, mostly health insurance, and had a few General Agents try to recruit me.

Every one expected me to give up too much and pay pennies in commission. I never once asked any of them what their contract paid but I told each of them there was no way I would work based on the terms and % of premium they offered.

Not a single one countered or asked what I wanted so I went direct to carriers and cut my own deals.

I had good years and bad. Changed direction a few times but never once looked back.

Along the way I have had offers to buy my block but again, everyone wants me to sell for a lot less than it is worth (to me).

Maybe I am more savvy than the average guy, maybe not. But I still see a lot of folks that expect to start off making the big bucks when they have never done anything to prove their worth.

 

[somarco]

Hey DFW-bag.

How much more can they earn?

Depends on a lot of things but mostly if they can sell or not.

Someone new to the industry doesn't know shit and most will flame out in 90 to 180 days.

I haven't recruited in years. When I did recruit the offer was "This is what you WILL earn starting out, this is what you MIGHT earn if you produce X. Take it or leave it."

I was quite successful until I got tired of continuously recruiting to replace both unsuccessful agents and successful ones that thought they could earn more somewhere else. Good agents appreciate the arrangements, shitty ones are looking for a few more points and think they know it all.

It didn't take them long to figure out the higher contract came with more stipulations meaning they usually earned less.

Sometimes I took them back. Sometimes not. By the time they figured out they shit in their mess kit they never came back.

 

[jdeasy]

Who frickin cares?? I care what I make. I do want my IMO to make money so they stay in business.

I’m not interested in counting other people’s money. Just mine!

 

[rousemark]

Who frickin cares?? I care what I make. I do want my IMO to make money so they stay in business.

I’m not interested in counting other people’s money. Just mine!

I would expect you, somarco and others to make a higher rate of commission that I. You bring much more to the IMO.s table than I. That is the nature of any business that succeeds. Never understood the obsession with what your upline makes.

 

[somarco]

Years ago I worked with a guy who, by most measures, was successful. When someone would ask how much he makes his response was "Are you going to pay YOUR bills with MY money?"

That usually caught folks off guard and stopped the questions almost in mid-sentence.