Independent Agent Versus IMO

[100kinssales]

Very few insurance companies actually contract agents directly. They really don't want to be handling every little question a complete newbie would have regarding dotting the i's and crossing the t's on applications. They also want the option to retrieve a charge back on an advance from someone other than you if you decide to screw them over. It happens a lot.

Of course there are many other reasons why most insurance companies do not direct contract but those are two of the big ones.

There are many types of IMO's, big and small. You'll find (or likely not ever know but I'm telling you here) that even big IMO's are under other IMO's for certain companies and products. The levels of the hierarchy never really concerned me as long as I was getting a good fair contract with room to grow. And no it doesn't mean if IMO A is under IMO B's contract, and you go to IMO B you will get a better contract - in fact you may get less from IMO B. In any event, IMO's will know what you are worth after some time and with good production every contract is negotiable. Of course your phone calls will go unanswered if you are better at filling out contracting paperwork than you are at insurance applications.

If you are fairly new to the insurance game or aren't producing big numbers you are much better off going with a general agent who can teach and guide you. I deal with 2 fairly large IMO's that I have developed great relationships with over the years. They love my business and when I say jump they ask how high. I'm very happy to give them my and my agent's business. They also jump for my agents because, well, they are my agents.

Speaking of IMO's and general agents. Whoever you contract with should be transparent. I give all of my agents full access to my large IMO's resources, software, quoting tools, forms etc. My IMO is now their IMO - who they probably would have never been so lucky to find on their own if they never met me. I also let them call my IMO directly if they want to and discuss other companies that they may be interested in contracting with. Because my contracts are so large with the IMO - I am able to give the same or even much higher contracts than that agent would get if they approached the IMO alone. You might not think this is the case but it is. Then my agents not only have me to help with their cases, ideas, and marketing, but the full use of the IMO and the IMO's resources and tools. It's a win win win for everyone.

- Also, remember that most IMO sales employees are failed insurance agents who hung it up for a more steady but less ambitious paycheck. These people may be nice and slick over the phone pumping their latest contract - but where the rubber meets the road they are fairly useless to help your business. It helps being connected to someone actually out there SELLING -or at least not far removed from selling.

I love using the IMO resources for product ideas and putting pressure on insurance companies for big cases. Sometimes you need some muscle behind you and a good IMO can help. Beware though most IMO's are just a slick advertising layout in an insurance magazine. Once you are contracted you'll find out just how little they care about you and how high their turnover is in the office. You'll also find out how little everyone in the office knows about insurance! Yikes, it's scary stuff! You'll be getting weekly calls about the 'flavor of the week' new hot product. It gets really old really fast.

My IMO's don't call me with their latest fat contract they need sign ups for...they know to only call me with a good fresh idea - or truly innovative product that's going to help my business.

I must say I love my IMO. But it was a long road to find them and develop the relationship I now enjoy with them.

[email protected]
(want to get into a great niche market in California with almost no competition? email me)

Baggins:

Can't thank you enough for all the great information on IMO's. Man, I hope new agents will read this post! So much good information...

I haven't thought about agents having the ability to be with multiple IMO'S. Very interesting how you have everything set up.

Thanks for the feedback and I hope others will see the value in the post you articulated so well.

Thanks again...

 

[baggins415]

Baggins:

Can't thank you enough for all the great information on IMO's. Man, I hope new agents will read this post! So much good information...

I haven't thought about agents having the ability to be with multiple IMO'S. Very interesting how you have everything set up.

Thanks for the feedback and I hope others will see the value in the post you articulated so well.

Thanks again...

Thank you for the kind words! Glad it was a help to you.

[email protected]
IMO/General Agent, Insurance Website Developer, and Creator of the Marketing System: "403b Crush"
**If any agents need sweet contracts, great products, and even better marketing ideas feel free to email me.

 

[topinsur]

I will never be captive again, you lose to much money.

But there are agents who want to make a career and it is more promising than getting big commissions

 

[medsuptage]

But there are agents who want to make a career and it is more promising than getting big commissions