Major Change Happening in Industry???

[Newby]

Currently we are getting street level commissions then he gets a ut of that and the overrides. He wants a bigger cut, saying in return we get bonuses, plus other services. I am extremely disturbed, along with the bulk of the people I work with.
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According to what he said yesterday, Allianz is trying to get rid of their "smaller" producers, which will make "smaller" producers go to preferred FMO's to write business. His goal is to get a ton of new advisers to write business for him.

Why are you limited to one FMO?

 

[VolAgent]

Currently we are getting street level commissions then he gets a ut of that and the overrides. He wants a bigger cut, saying in return we get bonuses, plus other services. I am extremely disturbed, along with the bulk of the people I work with.
- - - - - - - - - - - - - - - - - -
According to what he said yesterday, Allianz is trying to get rid of their "smaller" producers, which will make "smaller" producers go to preferred FMO's to write business. His goal is to get a ton of new advisers to write business for him.

Yes, cutting compensation is a sure way to lure in new agents. This guy is a genius.

 

[Crabcake Johnny]

He might be. What you do is secretly take care of your heavy hitters - tell everyone else who doesn't like it to "see ya" and the fresh blood doesn't know any better.

The strategy works well if you can bring in a lot of new agents. This FMO also knows that most people know - that despite the crying and whining most producers will stay and suck it up.

 

[TxsRang3r]

That's the thing with the preferred FMO contract, there are no overrides so a lot of the agents who were getting comp under the table or on an AFMO contract will not get it. Everyone is on (1) level (street) with bonus incentives to the FMO and agent direct from Allianz. It's also a one strike and you're out system (will see if Allianz actually polices that).

 

[wicked22]

That's the thing with the preferred FMO contract, there are no overrides so a lot of the agents who were getting comp under the table or on an AFMO contract will not get it. Everyone is on (1) level (street) with bonus incentives to the FMO and agent direct from Allianz. It's also a one strike and you're out system (will see if Allianz actually polices that).

Txs, do you know what the bonus incentives are by any chance? That was one of the things we discussed yesterday, and he said it wasnt going to be an issue. I dont believe him.

 

[TxsRang3r]

Not 100% sure on the Agents bonuses but they have tiers at 1mm, 2mm, and 4mm.

Also, the FMO bonuses have to have Allianz as one of their top 2 carriers in order to max out their bonuses, and go a certain $$ in production.

 

[scagnt83]

It sounds like Allianz wants their producers to be only Allianz producers... can you say unofficially captive??

Just another reason not to touch them with a 10 foot pole...

 

[TxsRang3r]

Allianz is still a strong and good company with great product offerings, so I don't think not touching them with a 10 foot pole is warranted. That being said, I do think their new Preferred FMO initiative will fail and come back to bite them. Which is why we turned down the offer, but will continue to recommend and offer their traditional line of products.

 

[annuityseller]

I don't sell Alliantz now so doesn't really matter to me but when someones tells me that I can't do something,I head the other way!!

 

[VolAgent]

So how is Allianz going to verify that they are number 1 or 2 for an FMO?