I know how life insurance works when it comes to overrides. You get for example, a 100% contract and get agents to work under you at a reduced contract, say 60% and you make a 40% overide. My question is how does it work for med supps? As an example if I have a 21% contract and I sign an agent up under me do I have to give him a reduced contract like 17% to make overrides or can I still give him 21%. How does it work? Thanks in advance.
Med Supp Team Building
- Thread starter usakr
- Start date
Overrides are little deserved these days unless you provide tangible benefits like training beyond a shove out the door...
Next thing you know, you will be wanting your agents to buy leads from you, that is the when the red flag bursts into flames...
Next thing you know, you will be wanting your agents to buy leads from you, that is the when the red flag bursts into flames...
- 4,746
Early in the AM, I'll receive an email from one of my carriers. Later that SAME day, my MGA for this same carrier forwards me the same email.
I don't know about you but I find this to be value added!
Fail.
My point exactly! It's the way the system is set up. So if I can get you the same contract is FMO A or B, then what difference does it make? They have to be contracted with somebody.
I think one of the differences the individual agent who is recruiting can bring over a large FMO is that fact that the individual has actually been in the field and written the product. Many times the FMO has people on staff who have never written the first application and has no idea how it's done in the field.
I think one of the differences the individual agent who is recruiting can bring over a large FMO is that fact that the individual has actually been in the field and written the product. Many times the FMO has people on staff who have never written the first application and has no idea how it's done in the field.
- 4,746
Most all of my contracts are direct. Two carriers required me to contract through a MGA and a FMO.
I had one question I needed answered last year from the MGA. Simple question. I emailed the MGA the question. His answer was, "I don't know". I called the company and got my question answered.
The FMO is completely worthless. Other than every 6 months or so they send me a thank you card for my business.
I had one question I needed answered last year from the MGA. Simple question. I emailed the MGA the question. His answer was, "I don't know". I called the company and got my question answered.
The FMO is completely worthless. Other than every 6 months or so they send me a thank you card for my business.
- 7,066
Exactly, the person you contract with should be able to and actually follow through with help when the agent needs it.
I would not accept a below street level contract from anyone for any reason and neither should any other agent even if they are brand new to insurance. Where is the logic in penalizing someone just because they are new and desire to be successful. Oh, because they may have to actually talk to the agent and spend some time with them? That makes a lot of sense doesn't it??????? Isn't that their job?
I have had the ability to offer contracts for a very long time and didn't start doing it until recently. I began for only one reason, I got sick and tired of hearing agents say that they were receiving below street level contracts for any one of multiple BS reasons.
If the contracting entity doesn't have the ability to function financially without screwing the agent then maybe they should get out of the business of offering contracts.
Put yourself in the agents place. All of a sudden you realize you are getting screwed, and the IMO, FMO or Agency is only giving you a small portion the commission they receive and keeping a huge percentage for themselves. Isn't that going to piss you off and make you resentful? How hard is a resentful agent going to work?
What is contractor doing to deserve the 40% to 50% on life or the 8% to 10% or more on Med Supps? Most probably nothing, nothing at all.
There is no logical reason I can think of as to why an agent should accept a contract like that. The only thing I consider worse is when the agent is required to assign their commissions.
I would slide down a 50' razor blade before I would even consider doing that. Once again I am holding back.
Exactly, the person you contract with should be able to and actually follow through with help when the agent needs it.
I would not accept a below street level contract from anyone for any reason and neither should any other agent even if they are brand new to insurance. Where is the logic in penalizing someone just because they are new and desire to be successful. Oh, because they may have to actually talk to the agent and spend some time with them? That makes a lot of sense doesn't it??????? Isn't that their job?
I have had the ability to offer contracts for a very long time and didn't start doing it until recently. I began for only one reason, I got sick and tired of hearing agents say that they were receiving below street level contracts for any one of multiple BS reasons.
If the contracting entity doesn't have the ability to function financially without screwing the agent then maybe they should get out of the business of offering contracts.
Put yourself in the agents place. All of a sudden you realize you are getting screwed, and the IMO, FMO or Agency is only giving you a small portion the commission they receive and keeping a huge percentage for themselves. Isn't that going to piss you off and make you resentful? How hard is a resentful agent going to work?
What is contractor doing to deserve the 40% to 50% on life or the 8% to 10% or more on Med Supps? Most probably nothing, nothing at all.
There is no logical reason I can think of as to why an agent should accept a contract like that. The only thing I consider worse is when the agent is required to assign their commissions.
I would slide down a 50' razor blade before I would even consider doing that. Once again I am holding back.
Frank,
Sent you a msg. at your YIO. Did you get it?
- 7,066
This may sound dumb but I don't know. Sorry but I don't know what your real name or e-mail address is so I don't know how to check. It might be best if you give me a call.
