- Thread starter
- #11
How Do You Start an IMO?
- Thread starter Raider123
- Start date
- 2,370
I stick with the 3 rules of business...
1. It will cost twice as much
2. It will take twice as long
3. Everyone thinks they are the exception
There are a lot of things to consider:
What kind of contract are you going to offer?
If you are offering training, what kind? How much time can you spend with an agent before you are losing money?
Are you going to offer any type of co-marketing?
Basically, from an agent's perspective, why would I run a contract through you? Answer that and you may have your direction...
1. It will cost twice as much
2. It will take twice as long
3. Everyone thinks they are the exception
There are a lot of things to consider:
What kind of contract are you going to offer?
If you are offering training, what kind? How much time can you spend with an agent before you are losing money?
Are you going to offer any type of co-marketing?
Basically, from an agent's perspective, why would I run a contract through you? Answer that and you may have your direction...
- Thread starter
- #13
As an add on to this question...what is the benefit of going through an IMO if you can find insurance companies that will go direct to the agent with great products and commissions?
That will be the answer to your question. I am really apprehensive to go through anyone after my experience with an IMO.
In the end the support was okay but realy nothing i couldnt research myself or call the carriers about.
That will be the answer to your question. I am really apprehensive to go through anyone after my experience with an IMO.
In the end the support was okay but realy nothing i couldnt research myself or call the carriers about.
- 26,131
I am an agent that does not really need a lot from an IMO other than maybe initial product or underwriting information on a new company. What would you offer me?
Going direct? I get 125% with American General on term. American General will not even speak to me. Have to go through the IMO. Now you could target Newbies, but they are going to take a lot of time.
I have had sub agents in the past. Highly over rated. Adult Day Care.
Just my 2 cents
- 11,997
- Thread starter
- #16
- 19,647
You can usually get higher contracts by going through an IMO than direct. There are some exceptions. I din't there was such a thing as risiduals on life insurance but no one can take your renewals as long as you are paid direct by the company and vested from day 1. You can get that through an IMO.
I know you think you got burned on that by NAA but with NAA you are paid direct by the companies and you are vested in your renewals from day 1. I haven't written a policy thru an NAA company in almost 5 years but I get renewals every week. Got deposits from F&G, Shenandoah and Assurity this week.
So, to answer how you keep that from happening? You don't assign your commission and you make sure that you are vested from the beginning. Most IMO's work this way.
If the IMO requires you to assign commission then they can, and will, steal your renewals. And many times your first year commission too.
- 11,997
As wino pointed out, I think you need to learn to walk before you can run.
If you work with Todd King (Final Expense Contracts | Life Insurance Agent Contract) or a number of other uplines, they can make sure you keep your downline and residuals. Most true IMOs don't care about your clients, they're just a place to get contracts.
GrassisGreener8
Expert
- 34
Well true, but think about it every single IMO takes a cut of the agent that is par for the coarse. The biggest issue I see is that the IMO usually takes the lion's share of the deal. I see other IMOs such as FFL flaunting 140% commission contract but if you dig into their commission per product you see it is only with 1 carrier which is typically Americo. It doesn't make sense to me. If you guys want heavy hitters you'll need to open up and share the wealth per se. At this point, I don't have a clue what these IMO's are getting. I get its a business but the largest expense of any business is sales and marketing expenses. IMOs take care of the issue of sales by having independent contractors. So my question is why wouldn't they give the lion's share? How about start an IMO that genuinely gives the 10% less of the negotiated contract with the carriers. So for example Carrier---->150 to IMO ---> Agent 140 Top Contract = 10 points is kept to the IMO. Does this make sense? Or am I simply asking to much here????? Please help
Yes, this all is easy to say...unless you are the IMO! 10% doesn't cover it for the IMO though. Now do they have a company or two that they don't make very much on? Sure, I think every IMO has a loss leader or two for that.
To say that the IMO takes the lions share tells me that you have come from some IMO that only gave you somewhere around 60-80%. At least that's what it sounds like. Most of the IMOs you will find on here will tell you real quick that they don't offer contracts anywhere near that low.
Yes, FFL likes to take one thing and promote it like it's everything. That's as close to a bait and switch tactic that you will see without actually being bait and switch!! In other words....yeah....it's still a lie!! But, that is how they choose to market, so I hope they don't mind when an agent calls them out on it. I know I don't mind someone calling them on their BS!! LOL
Not sure who told you that Mutual was all the way up to 210%, but don't buy anything else from them!!
The other problem with this is that there are many (most) companies are going to ask for proof of production to get the higher levels. IMO's can't just give out what they want whenever they want with no questions asked. Doesn't work that way.
