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

[Richard-PDIS]

Any professional who drives in new business should know how much the company and he/she makes. For example, attorneys bring in business, they know at what rate the firm bills them out and they know how much of that goes to their pocket. (car salesman don't buy the cars, they just sell what's on the lot so that's not a comparable example). Transparency is not a bad thing.

 

[rousemark]

Any professional who drives in new business should know how much the company and he/she makes. For example, attorneys bring in business, they know at what rate the firm bills them out and they know how much of that goes to their pocket. (car salesman don't buy the cars, they just sell what's on the lot so that's not a comparable example). Transparency is not a bad thing.

I have contracts with a couple of IMOs and have no idea what their commission rate or how much they make in total. Don't care as it would not put any more money in my pocket to have that knowledge. Since I am contracted directly with the company, if the IMO goes out of business, I will still get my renewals and just move to another IMO.

 

[Loving Life]

So my question is..... who are these mythical unicorn-like creatures who pay 100%? I have been with a horrible FMO for a year and a half (hire to sell MLM). They claim to start at 60%, but that is only on select products with no residuals. Some products are as low as 35%! I am at a standstill and am not writing business because I don't want to put a dime in the pockets of these con men. Plus, we lost contracting with my favorite carrier due to lack of production. Not a good sign. Love the business, but need to make a change!

 

[tikibarrister]

So my question is..... who are these mythical unicorn-like creatures who pay 100%?

http://fexcontracting.com/wp-conten...Agents-commission-quick-reference-12.2020.pdf

 

[Christian Vincent]

So my question is..... who are these mythical unicorn-like creatures who pay 100%? I have been with a horrible FMO for a year and a half (hire to sell MLM). They claim to start at 60%, but that is only on select products with no residuals. Some products are as low as 35%! I am at a standstill and am not writing business because I don't want to put a dime in the pockets of these con men. Plus, we lost contracting with my favorite carrier due to lack of production. Not a good sign. Love the business, but need to make a change!

Depends on what type of insurance you sell but here are a few:

DigitalBGA

David Duford

Premiere Producers Grouo

Fexcontracting

Digital Senior Benefits

I’m sure there are others out there.

Rule of Thumb: If someone recruits you hard, like an MLM, they need you more than you need them.

60% is highway robbery btw,

 

[scagnt83]

So my question is..... who are these mythical unicorn-like creatures who pay 100%? I have been with a horrible FMO for a year and a half (hire to sell MLM). They claim to start at 60%, but that is only on select products with no residuals. Some products are as low as 35%! I am at a standstill and am not writing business because I don't want to put a dime in the pockets of these con men. Plus, we lost contracting with my favorite carrier due to lack of production. Not a good sign. Love the business, but need to make a change!

Rule #1, if they push you to "recruit a team", run far far away. Its MLM, not a real insurance agency. And they will pay you next to nothing compared to what a real agency will pay.

Most any real IMO will pay you "street" commissions. Which is the comp that any agent who walks off the street gets without any production requirements. This level is set by the carrier for the most part. That is what most agents mean when they say you are not getting paid "100%".

But carriers vary. Not all 20y term products pay 100% of first year premiums. Some carriers might pay 80% or 90% of first year premiums. And products vary.... many 10y term products are in the 50%-75% range. 15y term is usually not a full 100%. Some carriers pay 90% on all term products, etc. Most UL/IUL pays in the 80%-100% range. Most Par WL pays 50%-80%. Most NonPar WL pays 80%-120%.

You mentioned renewals. Most term does not pay renewals. Only a handful of carriers pay renewals to agents on term. Sometimes IMO level contracts pay small residuals. Permanent products are the life products you make residuals off of.

And some IMOs have better contracts with certain carriers than others, and just start agents a bit higher than street level comp for certain carriers. So there are other factors at play sometimes.

But as a new agent, you need to worry about getting street comp. Nothing more, nothing less. Find an IMO that gives you case support or marketing support or whatever type of support you need for your business to write more life business.

There are lots of IMOs mentioned here on the forum. You can also google the term along with "life insurance" and you will find a plethora of IMOs to call and speak to. And understand that you are not locked into just 1 IMO. You can have different carrier contracts with different IMOs. It all depends on your needs. They are in business to serve you... you are the client in that situation... you are not their employee.

 

[DonP]

It’s very important ti know what your up line makes . It gives you the ability to close that commission gap as much as possible . Why would I take 120% street when many IMO’s will give 125-130% with very little production if I’m no bother . Their at 150% plus and my job as a good agent is to make as much as I can . You don’t think IMO’s know what their up line makes and want more ?

 

[Newby]

So my question is..... who are these mythical unicorn-like creatures who pay 100%? I have been with a horrible FMO for a year and a half (hire to sell MLM). They claim to start at 60%, but that is only on select products with no residuals. Some products are as low as 35%! I am at a standstill and am not writing business because I don't want to put a dime in the pockets of these con men. Plus, we lost contracting with my favorite carrier due to lack of production. Not a good sign. Love the business, but need to make a change!

You are signed up at a bad place if you are only at 60%. There is no other way to spin that. YOUR upline is working against your success, not for it. Very likely you were caught up in a pyramid style recruiting agency. Those are the worst of the worst. It’s easy to tell, if you’re upline allows or even worse encourages you to recruit other agents when you were new and I have no clue, that’s a pyramid. And you want to get away as quickly as you can.

Most FE focused IMOs are going to start new agents at 120% with the most popular FE (Final Expense) products. The “price busters” which means the FE companies that have lower rates than most will usually be slightly lower but usually still at 100 to 110%.

And be aware that the % figures are ALWAYS of the first year premium. I read a post from a scammer on Facebook that was trying to convince her agents that it’s a % of the total street commission. So she was saying that 100% with XYZ company is 90% because 90% is the entire street level. That is razzell dazzle Bull hockey that someone sat around and thought up to screw you. And even if her theory was even remotely accurate (which it isn’t) The company that she was naming is 120% for new agents not 90% anyway. She was new enough to the business that I’ll assume she just doesn’t know any better and isn’t actually as crooked as she was coming across. But either way she’s a bad bad place to be.

If you are recruiting agents before you have a clue what you’re doing you deserve the bankruptcy that is running straight toward you like a freight train.

my agency is fexcontracting.com so of course I’m always gonna recommend that Agents talk to us first. If we are not a fit I would definitely recommend places that would be. But regardless of where you go at least print out the commission grid that is posted right on our website to do comparisons so you know what you should be getting as a new agent. Empower yourself with knowledge.

 

[Tahoe Ray]

And be aware that the % figures are ALWAYS of the first year premium.

First-year of TARGET. Which for term, FE, GUL etc. is normally very close or at the premium.

I know that you know this stuff so this is for others reading.

An agent max funding a 20k premium WL or UL policy and expecting an 18-20k check is going to be very sad...

 

[Newby]

First-year of TARGET. Which for term, FE, GUL etc. is normally very close or at the premium.

I know that you know this stuff so this is for others reading.

An agent max funding a 20k premium WL or UL policy and expecting an 18-20k check is going to be very sad...

Yes I’m speaking about FE lifetime pay premiums.