Low commissions & large chargebacks

[Footballguy]

Hi guys. In a little bit of a tough spot here. When I was initially recruited into the IMO I am at now, I was misled in regards to our commission structure. I was told it was 90% commissions, but I soon found out that most products were at 75%-70%, and graded and GI products all the way down to 45%. Keep in mind, I am at an independent brokerage.

The more research I did as of recent, the more horrified I was to learn that by absolutely no means should independent commission be that low, especially while paying for your own leads and marketing. I am now interested in joining Duford insurance group and giving a few others a look, but I cannot get released until my chargebacks are paid off. I am up to around $4.5K of debt right now. I had two massive police’s cancel on me. I find that I’m basically running on a hamster wheel, in which the cost of leads, only being on draft pay and my low commission level makes it extremely difficult to even profit each month, nonetheless begin to pay off my chargebacks.

looking for any and all advice to get out of this situation as fast as possible so that I can move to an IMO that actually does this business correctly.

 

[scagnt83]

Hi guys. In a little bit of a tough spot here. When I was initially recruited into the IMO I am at now, I was misled in regards to our commission structure. I was told it was 90% commissions, but I soon found out that most products were at 75%-70%, and graded and GI products all the way down to 45%. Keep in mind, I am at an independent brokerage.

The more research I did as of recent, the more horrified I was to learn that by absolutely no means should independent commission be that low, especially while paying for your own leads and marketing. I am now interested in joining Duford insurance group and giving a few others a look, but I cannot get released until my chargebacks are paid off. I am up to around $4.5K of debt right now. I had two massive police’s cancel on me. I find that I’m basically running on a hamster wheel, in which the cost of leads, only being on draft pay and my low commission level makes it extremely difficult to even profit each month, nonetheless begin to pay off my chargebacks.

looking for any and all advice to get out of this situation as fast as possible so that I can move to an IMO that actually does this business correctly.

Find different carriers to write than the ones you are with now. I promise you are not contracted with all of them, or even most of them.

Pay back the chargebacks from you new income stream giving you full commissions. Then move your old contracts after you are back to even.

 

[scagnt83]

You might want to post in the FE forum to ask about carriers you dont currently have and who will be most competitive.

 

[Footballguy]

That’s extremely helpful, I did not know I could do that, thank you. It’s possible to be contracted with two IMO’s at once?

 

[scagnt83]

That’s extremely helpful, I did not know I could do that, thank you. It’s possible to be contracted with two IMO’s at once?

Dude, you run your business. This is your business. The IMO is supposed to work for you. You are the IMOs client. They dont control you or employ you.

So yes. You can use 100 different IMOs for 100 different carriers if you choose to do so.

There are carriers that dont even require the use of an IMO and allow direct contracting with agents.

Most agents have at least 2 IMOs. Often IMOs have their niche they are good at. Some may not offer all carriers that you want or need. It varies out there.

The only thing you are beholden to with that IMO are those contracts.... and thats only because you have debt on them.

If you were debt free, they could make you wait 6 months if they are assholes, but you would be free to move them.

In the meantime. You are free to do business with any organization you choose to do so, because its your business to run.

 

[Footballguy]

Dude, you run your business. This is your business. The IMO is supposed to work for you. You are the IMOs client. They dont control you or employ you.

So yes. You can use 100 different IMOs for 100 different carriers if you choose to do so.

There are carriers that dont even require the use of an IMO and allow direct contracting with agents.

Most agents have at least 2 IMOs. Often IMOs have their niche they are good at. Some may not offer all carriers that you want or need. It varies out there.

The only thing you are beholden to with that IMO are those contracts.... and thats only because you have debt on them.

If you were debt free, they could make you wait 6 months if they are assholes, but you would be free to move them.

In the meantime. You are free to do business with any organization you choose to do so, because it’s your business to run.

And this is why I love this forum, I Can’t tell you how good this is to hear. I was on the verge of taking out another credit card and maxing both out just so I could leave the IMO as fast as I could.

 

[WinoBlues]

It’s possible to be contracted with two IMO’s at once?

Many more than two if you choose. FE is a bit more restrictive than traditional life insurance in that with traditional companies like AIG or Protective I have multiple writing numbers with multiple uplines. I think I have four with Protective. FE companies make you have a caregiver. We all thought like you in the beginning. We just didn't know what we didn't know.

@scagnt83 gave you some great advice. I would print it out. I will just add. Do it now. Get contracted with the new companies before the old companies or IMO know you are moving. Do pay that old debt. Make sure your DOI contact info is -your- info and not the IMO. Make sure all of your clients have -your- contact info, not the IMO. If you are using the IMO CRM, copy all your data. Personally, I would delete it from the crm, but I have burn scars and PTSD from my young days

Lastly if I were going to get another CC it would be to run my business not to pay down my debt. That can be done on payments.

I guarantee you you do not have the best company with the other IMO. The best changes by the client, circumstances and is subjective.

There are some great IMOs out there. But their first concern is their business and family. Same as yours should be.

Welcome into the light.

Edit: my perspective is from a very Independent agent Xs many years, not an IMO or one focus agent.

So all IMohsoHO

 

[Footballguy]

Many more than two if you choose. FE is a bit more restrictive than traditional life insurance in that with traditional companies like AIG or Protective I have multiple writing numbers with multiple uplines. I think I have four with Protective. FE companies make you have a caregiver. We all thought like you in the beginning. We just didn't know what we didn't know.

@scagnt83 gave you some great advice. I would print it out. I will just add. Do it now. Get contracted with the new companies before the old companies or IMO know you are moving. Do pay that old debt. Make sure your DOI contact info is -your- info and not the IMO. Make sure all of your clients have -your- contact info, not the IMO. If you are using the IMO CRM, copy all your data. Personally, I would delete it from the crm, but I have burn scars and PTSD from my young days

Lastly if I were going to get another CC it would be to run my business not to pay down my debt. That can be done on payments.

I guarantee you you do not have the best company with the other IMO. The best changes by the client, circumstances and is subjective.

There are some great IMOs out there. But their first concern is their business and family. Same as yours should be.

Welcome into the light.

Edit: my perspective is from a very Independent agent Xs many years, not an IMO or one focus agent.

So all IMohsoHO

this is great advice, thank you for the reply. What do you mean by DOI information?

 

[Newby]

100% spot on advice. You are never trapped. Just go to the IMO that you want to go to and start contracting with other (usually better) carriers. Most likely that old IMO wouldn’t release you even if you paid off all the debts today on your credit card.

 

[scagnt83]

this is great advice, thank you for the reply. What do you mean by DOI information?

The state department of insurance has your info listed with them and for the public to see. You need to make sure its your info and not the IMOs. Info as in address, phone, website, business name, etc.