IMO profit

[Micah1127]

Does an IMO/FMO make their income needed to sustain their business model from the insurance carrier's contracts? Or do they make money off of the agents that work under them?

I realize both could be sources of income, including training courses and lead generation, but based off of the research I've done it seems to me that if a company is pushing you to recruit right off the bat it's a bad company. Also if they charge a ridiculous amount of money for training then it seems like a scam... Another thought is that if a company encourages you to only buy leads from them and only rely on their leads then that is definitely something to watch out for.

I'm asking general questions because I'm new to the insurance world, but I feel like if I understand more of what the business entails then I can grow to be the best agent I possibly can be.

Last thought. Why would a successful agent choose to open an agency when they were already making a good income being a producing agent? More money? Higher goals? Managing versus producing?

I've noticed that this business is full of people that want to take advantage of the ignorant. I presume that happens in many different businesses worldwide. Sad...

 

[Newby]

Does an IMO/FMO make their income needed to sustain their business model from the insurance carrier's contracts? Or do they make money off of the agents that work under them?

I realize both could be sources of income, including training courses and lead generation, but based off of the research I've done it seems to me that if a company is pushing you to recruit right off the bat it's a bad company. Also if they charge a ridiculous amount of money for training then it seems like a scam... Another thought is that if a company encourages you to only buy leads from them and only rely on their leads then that is definitely something to watch out for.

I'm asking general questions because I'm new to the insurance world, but I feel like if I understand more of what the business entails then I can grow to be the best agent I possibly can be.

Last thought. Why would a successful agent choose to open an agency when they were already making a good income being a producing agent? More money? Higher goals? Managing versus producing?

I've noticed that this business is full of people that want to take advantage of the ignorant. I presume that happens in many different businesses worldwide. Sad...

You are 100% right on all your points. Yes IMOs make their money on over rides off agent’s sales.Their contracts are in the 145% and 150% range and a few even higher. The spread is their profit.

IMOs that try to get agents to recruit and co-sign the debt of other agents are NOT good people. They know they are setting you up for huge financial failure. They are not your friends.

No legitimate Upline should ever charge for training. Training is what they are already making the big bucks for and it’s expected of them at no cost to the agents.

if a company requires that you buy leads from them they are probably reselling previously sold leads to their agents and using their leads as a profit center. They should have the programs that you can buy into if you want to but it should be 100% optional.

Here is some reading you might enjoy. Getting Started with FE Sales

 

[UncappedIULforYou]

Does an IMO/FMO make their income needed to sustain their business model from the insurance carrier's contracts? Or do they make money off of the agents that work under them?

I realize both could be sources of income, including training courses and lead generation, but based off of the research I've done it seems to me that if a company is pushing you to recruit right off the bat it's a bad company. Also if they charge a ridiculous amount of money for training then it seems like a scam... Another thought is that if a company encourages you to only buy leads from them and only rely on their leads then that is definitely something to watch out for.

I'm asking general questions because I'm new to the insurance world, but I feel like if I understand more of what the business entails then I can grow to be the best agent I possibly can be.

Last thought. Why would a successful agent choose to open an agency when they were already making a good income being a producing agent? More money? Higher goals? Managing versus producing?

I've noticed that this business is full of people that want to take advantage of the ignorant. I presume that happens in many different businesses worldwide. Sad...

My IMO made money by not paying renewals on business that normally would pay renewals. Paying on average 20% less commission than the highest street level. They also charged me for leads even though I never used them. They billed my bond $125 a month for 18 months even though I never dialed a phone or knocked on a door. I'm definitely never going to another IMO that makes you buy leads.

 

[goillini52]

My IMO made money by not paying renewals on business that normally would pay renewals. Paying on average 20% less commission than the highest street level. They also charged me for leads even though I never used them. They billed my bond $125 a month for 18 months even though I never dialed a phone or knocked on a door. I'm definitely never going to another IMO that makes you buy leads.

Ok, I'm curious. Who "bent you over"?

 

[DonP]

But a little thing never talked about is the massive back end renewals Imo's make. Anywhere from 2-3% on a standard street contract. Think of an Imo's downline doing $10 million a yr for 5 yrs. Even if Only $15 mil is on the books in 5 years thats $300-$450k in renewal override. I'll say Newby is the most upfront about commissions and issues on here.I know recruiting is tough and for very few people.

 

[UncappedIULforYou]

Ok, I'm curious. Who "bent you over"?

They just acquired Brookstone Capital. That's all I'll say. :s

 

[Newby]

They just acquired Brookstone Capital. That's all I'll say. :s

That’s an easy one to Google. Yes, their captive side is not always favorable for the agents. Like many of the big mega-IMOs.

 

[goillini52]

They just acquired Brookstone Capital. That's all I'll say. :s

Starts with an A. I hear that bending over is a requirement to sign with them.